Brookfield Oaktree Holdings Reports Significant Revenue Decline in Q2 and First Half of 2025

Brookfield Oaktree Holdings, LLC reported a significant decline in its financial performance for the second quarter and first half of 2025 compared to the same periods in 2024, primarily due to the deconsolidation of Oaktree Capital I following a restructuring. For the three months ended June 30, 2025, total revenues decreased to $121.0 million from $155.1 million in the prior year, reflecting a 22% drop. Interest and dividend income fell by 17.7% to $112.3 million, while investment income decreased by 47.3% to $8.7 million. The company recorded a net income attributable to Class A unitholders of $14.7 million, down 61.3% from $38.0 million in the same quarter last year.

The first half of 2025 saw a similar trend, with total revenues of $264.5 million, down from $410.1 million in the first half of 2024. The decrease in revenues was attributed to the absence of incentive income following the restructuring, which previously contributed significantly to earnings. Investment income for the six months ended June 30, 2025, plummeted to $3.8 million from $34.8 million, largely due to declines in the values of publicly traded equity investments held by Oaktree Capital I.

Operationally, the company’s restructuring efforts included the deconsolidation of Oaktree Capital I, which has led to changes in how revenues and expenses are reported. The restructuring also resulted in a decrease in consolidated fund expenses, which fell to $49.3 million for the first half of 2025 from $44.7 million in the prior year, as the company no longer consolidates certain funds previously managed by Oaktree Capital I. The total assets of Brookfield Oaktree Holdings, LLC decreased to $6.45 billion as of June 30, 2025, down from $7.07 billion at the end of 2024.

Looking ahead, Brookfield Oaktree Holdings, LLC anticipates that its ongoing investments and capital commitments will provide sufficient liquidity to meet its operational needs. The company has made significant capital commitments to Oaktree Opportunities Fund XI and Fund XII, totaling $750 million and $796.2 million, respectively. The management remains focused on leveraging its investment strategies to navigate the current economic landscape, which includes uncertainties stemming from geopolitical tensions and market volatility. The company plans to continue making distributions to its preferred unitholders and is exploring opportunities to enhance its capital base through potential issuances of additional units or debt.