Brookfield Corporation Model Update

Research evidence excerpt

Brookfield Corporation Model Update

leverage as compared with

the existing BWS business. We await further details to come with earnings and beyond

prior to updating our current modeling, which already reflected our best understanding

of the transaction. At present, we model Wealth Solutions DE of $1,821mm in C2026 and

$2,355mm in C2027, as compared with $1,671mm actuals in C2025. The YoY growth

becomes more meaningful in C2027 (29%, vs. 9% in C2026), as contributions from Just

are included for a full year.

• Other non-AM model changes and considerations. We see upside to carry as funds

mature and Brookfield works through required thresholds. While Brookfield was

actively returning capital to LPs (as highlighted by the record realizations year in 2025

noted above), Brookfield was still largely working through required performance and

expense thresholds for a number of younger funds during this period. We understand that

several of these funds have now worked through their required thresholds. We increase

our carry expectations for 1Q26 due to expected Oaktree tax-related distributions (from

$128mm in our prior model to $141mm in our updated model). We otherwise keep near-

term carry projections constant (as relating to the Brookfield side of the house) given lack

of visibility in announced significant events and potential air pockets of volatility related

to the ongoing conflict in the Middle East. From the 1Q26 BAM release, we know that

realizations were softer in the quarter at $7.8bn (vs. prior four-quarter average of

$12.7bn) – we appreciate that 1Q26 adverse broader market moves could have

temporarily impacted realizations. We increase our net carry projections in 3Q26 and

beyond, however, as macro conditions have generally stabilized. Our net carry estimates