Brookfield Oaktree Holdings, LLC (BOH) reported significant financial developments for the third quarter and the first nine months of 2024, reflecting a robust performance despite recent restructuring changes. For the three months ended September 30, 2024, BOH generated revenues of $140.3 million, a 24.8% increase from $112.4 million in the same period of 2023. This growth was primarily driven by a rise in interest and dividend income, which reached $115.0 million, up from $86.9 million year-over-year. Total revenues for the nine months ended September 30, 2024, amounted to $550.4 million, compared to $343.7 million in the prior year, marking a 60.2% increase.

Net income for the third quarter of 2024 was reported at $183.4 million, significantly higher than $94.2 million in Q3 2023. The net income attributable to BOH Class A unitholders also rose to $36.8 million, up from $25.1 million in the previous year. For the nine-month period, net income reached $570.9 million, compared to $234.5 million in 2023, reflecting a substantial increase in profitability.

The company’s strategic restructuring, effective July 1, 2024, led to the deconsolidation of Oaktree Capital I, which has impacted revenue streams. Post-restructuring, BOH no longer earns incentive income from Oaktree Capital I, which has been replaced by investment income from its equity method investment in Oaktree Capital I. This change has resulted in a decrease in incentive income, which was $0 for Q3 2024, down from $5.0 million in Q3 2023.

Total assets for BOH as of September 30, 2024, were reported at $6.97 billion, a decrease from $7.56 billion at the end of 2023. The company’s cash and cash equivalents decreased to $20.8 million from $28.5 million at the end of 2023, while investments at fair value for consolidated funds fell to $4.84 billion from $5.14 billion. Debt obligations of consolidated funds increased significantly to $1.46 billion from $951.9 million at the end of 2023.

In terms of operational efficiency, general and administrative expenses decreased to $0.4 million in Q3 2024, down from $1.5 million in Q3 2023, reflecting the impact of the restructuring. However, interest expenses surged to $21.6 million in Q3 2024, a substantial increase from $5.9 million in the same quarter of the previous year, primarily due to debt at Oaktree Opportunities Fund XII.

Overall, BOH's financial results indicate a strong recovery in revenue and profitability, despite the challenges posed by the restructuring and market conditions. The company continues to focus on its investment strategy in credit, real estate, and private equity, aiming to leverage opportunities in the current economic landscape.