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Brookfield Asset Management Ltd.

Brookfield Asset Management Ltd.BAM決算レポート

NYSE · 金融 · 投資アドバイス

Brookfield Asset Management Ltd. is a Canadian-American alternative asset manager. The company was founded in December 2022 as a spin-off of the asset management operations of Brookfield Corporation, and manages investments across real estate, infrastructure, renewable energy, private equity, and credit markets globally.

What changed in Brookfield Asset Management Ltd.'s 10-K — 2024 vs 2025

Top changes in Brookfield Asset Management Ltd.'s 2025 10-K

561 paragraphs added · 672 removed · 403 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

111 edited+28 added−82 removed29 unchanged
Products and Principal Strategies Our products broadly fall into one of three categories: (i) long-term private funds, (ii) permanent capital vehicles and perpetual strategies, and (iii) liquid strategies. These are invested across five principal strategies: (i) renewable power and transition, (ii) infrastructure, (iii) real estate, (iv) private equity, and (v) credit.
Products and Principal Strategies Our products broadly fall into one of three categories: (i) long-term private funds, (ii) permanent capital vehicles and perpetual strategies, and (iii) liquid strategies. These are invested across five principal strategies: (i) infrastructure, (ii) renewable power and transition, (iii) private equity, (iv) real estate, and (v) credit.
BPG owns, operates, and develops iconic properties in the world’s most dynamic markets with a global portfolio of office, retail, multifamily, logistics, hospitality, land and housing, triple net lease, manufactured housing, and student housing assets on five continents. • We also manage capital in our perpetual private fund real estate strategy, Brookfield Premier Real Estate Partners (“BPREP”).
BPG owns, operates, and develops iconic properties in the world’s most dynamic markets with a global portfolio of retail, multifamily, logistics, office, hospitality, land and housing, triple net lease, manufactured housing, and student housing assets on five continents. • We also manage capital in our perpetual private fund real estate strategy, Brookfield Premier Real Estate Partners (“BPREP”).
This is a core plus strategy that invests in high-quality, stabilized real assets located primarily in the U.S. with a focus on office, retail, multifamily and logistics real estate assets.
This is a core plus strategy that invests in high-quality, stabilized real assets located primarily in the U.S. with a focus on retail, multifamily, office, and logistics real estate assets.
Furthermore, as institutional fund investors increasingly consolidate their relationships for multiple investment products with a few investment firms, competition for capital from such institutional fund investors may become more acute.
Furthermore, as institutional fund investors increasingly consolidate their relationships for multiple investment products with a few investment firms, competition for capital from such investors may become more acute.
Such consolidation may lead institutional fund investors to prefer more established investment firms, which could help us to compete against newer entrants or investment firms that are smaller in size or offer more limited types of investment strategies. Competition is also intense for the attraction and retention of qualified personnel.
Such consolidation may lead institutional fund investors to prefer more established investment firms, which could help us compete against newer entrants or investment firms that are smaller in size or offer more limited types of investment strategies. Competition is also intense for the attraction and retention of qualified personnel.
Through the various products outlined, we have invested in multiple asset classes including: • Office properties in key gateway cities in the U.S., Canada, the U.K., Germany, Australia, Brazil and India; • High-quality retail destinations that are central gathering places for the communities they serve, combining shopping, dining, entertainment and other activities; 14 • Full-service hotels and leisure-style hospitality assets in high-barrier markets across North America, the U.K. and Australia; and • High-quality assets with operational upside across multifamily, alternative living, life sciences and logistics sectors globally.
Through the various products outlined, we have invested in multiple asset classes including: • High-quality retail destinations that are central gathering places for the communities they serve, combining shopping, dining, entertainment and other activities; • Full-service hotels and leisure-style hospitality assets in high-barrier markets across North America, the U.K. and Australia; • High-quality assets with operational upside across multifamily, alternative living, life sciences and logistics sectors globally; and • Office properties in key gateway cities in the U.S., Canada, the U.K., Germany, Australia, Brazil and India.
Our extensive experience and knowledge in this industry enable us to be a leader in all major technologies with deep operating and development capabilities. 12 Our Products Long-term Private Funds • Brookfield Global Transition Fund (“BGTF”) is our flagship transition fund series which is focused on investments aimed at accelerating the global transition to a net-zero carbon economy.
Our extensive experience and knowledge in this industry enable us to be a leader in all major technologies with deep operating and development capabilities. Our Products Long-term Private Funds • Brookfield Global Transition Fund (“BGTF”) is our flagship transition fund series which is focused on investments aimed at accelerating the global transition to a net-zero carbon economy.
We do this by maintaining a culture of long-term focus, alignment of interest and collaboration through the people we hire, our compensation philosophy, and our operating philosophy. This operating expertise developed through our heritage as an owner-operator is invaluable in underwriting investments, conducting thorough due diligence, and executing value-creating development and capital projects.
We do this by maintaining a culture of long-term focus, alignment of interest and collaboration through the people we hire, our compensation philosophy, and our operating capabilities. This operating expertise developed through our heritage as an owner-operator is invaluable in underwriting investments, conducting thorough due diligence, and executing value-creating development and capital projects.
We consider Fee-Bearing Capital that is long-dated or perpetual in nature to be Fee-Bearing Capital relating to our long-term private funds, which are typically committed for at least 10 years with two one-year extension options, and Fee-Bearing Capital relating to our perpetual strategies, which include our permanent capital vehicles as well as capital we manage in our perpetual private fund and private wealth strategies.
We consider Fee-Bearing Capital that is long-dated or perpetual in nature to be Fee-Bearing Capital relating to our long-term private funds, which are typically committed for at least 10 years with two one-year extension options, and Fee-Bearing Capital relating to our perpetual strategies, which include our permanent capital vehicles as well as capital we manage in our perpetual private funds and private wealth strategies.
As such, business specific risks—such as health and safety, environmental and other operational risks—are generally managed at the operating business level, as the risks vary based on the nature of each business. At the same time, we monitor key risks organization-wide to ensure adequacy of risk management, adherence to applicable Brookfield policies, and sharing of best practices.
As such, business specific risks—such as health and safety, environmental and other operational risks—are generally managed at the operating business 20 level, as the risks vary based on the nature of each business. At the same time, we monitor key risks organization-wide to ensure adequacy of risk management, adherence to applicable Brookfield policies, and sharing of best practices.
We believe that our disciplined approach, global reach and operating expertise afford us access to a wide range of potential opportunities and enable us to invest at attractive valuations and generate superior risk-adjusted returns for our clients.
We believe that our disciplined approach, global reach and operating expertise afford us access to a wide range of potential opportunities and enable us to invest at attractive valuations and 10 generate superior risk-adjusted returns for our clients.
The fund is focused on deploying our deep capabilities to partner with sponsors, developers, and corporates to access attractive development opportunities. Permanent Capital Vehicles and Perpetual Strategies • We manage Brookfield Infrastructure Partners L.P.
The fund is focused on deploying our capabilities to partner with sponsors, developers, and corporates to access attractive development opportunities. Permanent Capital Vehicles and Perpetual Strategies • We manage Brookfield Infrastructure Partners L.P.
Management and mitigation approaches are tailored to the specific risk areas and executed by business and functional groups for their businesses and areas of responsibility, with appropriate coordination and oversight through monitoring and reporting processes.
Management and mitigation approaches are tailored to the specific risk areas and executed by business and functional groups for their businesses and areas of responsibility, with appropriate coordination and oversight through centralized monitoring and reporting processes.
In addition, you may automatically receive e-mail alerts and other information about our company by enrolling your e-mail address by visiting the “Email Alerts” section of our website under the “Contacts & Alerts” tab. 26
In addition, you may automatically receive e-mail alerts and other information about our company by enrolling your e-mail address by visiting the “Email Alerts” section of our website under the “Contacts & Alerts” tab.
This financing approach provides us with considerable stability, improves our ability to withstand financial downturns and enables our asset management teams to focus on operations and other growth initiatives. 4.
This financing approach provides us with considerable stability, improves our ability to withstand financial downturns and enables our asset management teams to focus on operations and growth initiatives. 4.
The mandate of this product is to assist utility, e nergy and industrial businesses to reduce carbon dioxide emissions, expand low-carbon and renewable energy production and advance sustainable solutions. • Our recently launched Catalytic Transition Fund (“CTF”) focuses on directing capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.
The mandate of this product is to assist utility, energy and industrial businesses to reduce carbon dioxide emissions, expand low-carbon and renewable energy production and advance sustainable solutions. • Our recently launched Catalytic Transition Fund (“CTF”) focuses on directing capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.
We also have two regional BPREP strategies that are dedicated specifically to investments in Australia and Europe. • We also manage a non-traded REIT, Brookfield Real Estate Income Trust (“Brookfield REIT”), which is a semi-liquid strategy catering specifically to the private wealth channel. This product invests in high quality income-producing opportunities globally through equity or real estate-related debt.
We also have two regional BPREP strategies that are dedicated specifically to investments in Australia and Europe. • We also manage a non-traded REIT, Brookfield Real Estate Income Trust, which is a semi-liquid strategy catering specifically to the private wealth channel. This product invests in high quality income-producing opportunities globally through equity or real estate-related debt.
The combination of operating expertise, development capabilities and effective financing can help ensure that an investment’s full value creation potential is realized, which we believe is one of our most important competitive advantages. 5. Realize Capital from Asset Sales or Refinancing We actively monitor opportunities to sell or refinance assets to generate proceeds for our investors.
The combination of operating expertise, development capabilities and effective financing can help ensure that an investment’s full value creation potential is realized, which we believe is one of our most important competitive advantages. 5. Realize Capital from Asset Sales or Refinancing We actively monitor opportunities to sell or refinance assets to generate proceeds for our clients.
On February 4, 2025, BAM completed a corporate restructuring with BN by way of a court-approved plan of arrangement (the “2025 Plan of Arrangement”), which was originally announced on October 31, 2024, whereby BN transferred its approximate 73% interest in the Asset Management Company to BAM in exchange for newly issued Class A Shares of BAM, on a one-for-one basis (the “2025 Arrangement”).
On February 4, 2025, BAM completed a corporate restructuring with BN by way of a court-approved plan of arrangement, which was originally announced on October 31, 2024, whereby BN transferred its approximate 73% interest in the asset management business to BAM in exchange for newly issued Class A Shares of BAM, on a one-for-one basis (the “2025 Arrangement”).
An example of such growth is the partnership we formed with Oaktree in 2019, which deepened the capabilities we offer our clients and better positions us across market cycles. Such acquisitions may occur from time to time should they be additive to our franchise, attractive to our clients, and accretive to our shareholders.
An example of such growth is the partnership we formed with Oaktree in 2019, which deepens the capabilities we offer our clients and better positions us across market cycles. Such acquisitions may occur from time to time should they be additive to our franchise, attractive to our clients, and accretive to our shareholders.
We take an active role in enhancing the performance of the assets and businesses we acquire. As a result, our operations team is fully integrated – meaning our operations professionals sit alongside our experienced investment team working hand in hand from diligence to the execution of our business plan and through the monetization phase of an investment.
We take an active role in enhancing the performance of the assets and businesses we invest in. As a result, our operations team is fully integrated – meaning our operations professionals sit alongside our experienced investment team working hand in hand from diligence to the execution of our business plan and through the monetization phase of an investment.
To access these filings, go to our website, and then visit the “Regulatory Filings” section under the “Reports & Filings” tab. These reports and the other documents we file with the SEC are available at a website maintained by the SEC at www.sec.gov. You can also access them on the CSA website at www.sedarplus.ca.
To access these filings, go to our website, and then visit the “SEC Filings” section under the “Reports & SEC Filings” tab. These reports and the other documents we file with the SEC are available at a website maintained by the SEC at www.sec.gov. You can also access them on the CSA website at www.sedarplus.ca.
Capital generated in our limited life funds is returned to investors, and in the case of our perpetual funds, we then redeploy the capital to enhance returns. In many cases, returning capital from private funds completes the investment process, locks in investor returns and gives rise to performance income.
Capital generated in our limited life funds is returned to clients, and in the case of our perpetual funds, we then redeploy the capital to enhance returns. In many cases, returning capital from private funds completes the investment process, locks in investor returns and gives rise to performance income.
Across our renewable power and transition products, we have invested on behalf of our clients in: • Hydroelectric operations, through river systems and facilities that provide electricity and have grid stabilizing capabilities; • Utility solar operations that harness energy from the sun to generate electricity; • Distributed energy and storage which provides small-scale generation that can be locally installed, and pump storage facilities; • Wind operations that use turbines to create electricity; and • Sustainable solutions including renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation.
Across our renewable power and transition products, we have invested on behalf of our clients in: • Hydroelectric operations, through river systems and facilities that provide electricity and have grid stabilizing capabilities; • Utility-scale solar operations that harness energy from the sun to generate electricity; • Distributed energy and storage, which provides small-scale generation that can be locally installed, pump storage facilities, and battery energy storage systems; • Wind operations that use turbines to create electricity; and 12 • Sustainable solutions including nuclear services, renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, power transformation, and sustainable aviation fuel.
Raise Capital As an asset manager, the starting point of the investment cycle is establishing new funds and other investment products for our clients. This in turn provides the capital to invest, from which we earn base management fees, incentive distributions and performance-based returns such as carried interest.
Raise Capital As an asset manager, the starting point of the investment cycle is establishing new funds and other investment products for our clients. This in turn provides the capital to invest, from which we earn base management fees, incentive distributions and performance-income such as carried interest.
Through this product, we invest globally across various sector s and geographies on behalf of our clients in high-quality real estate with a focus on large, complex, distressed assets, turnarounds, and recapitalizations. • We also manage a real estate secondaries strategy, Brookfield Real Estate Secondaries, with a focus on providing liquidity solutions for other real estate general partners.
Through this product, we invest globally across various sectors and geographies on behalf of our clients in high-quality real estate with a focus on large, complex, distressed assets, turnarounds, and recapitalizations. • We also manage a real estate secondaries strategy, Brookfield Real Estate Secondaries, with a focus on providing liquidity solutions for other real estate general partners.
In this product offering, we invest on behalf of our clients in core infrastructure assets in developed markets, with a focus on yield, diversification, and inflation-protection. 13 • We also manage Brookfield Infrastructure Income Fund, a semi-liquid infrastructure strategy, offering private wealth investors access to our best-in-class infrastructure platform.
In this product offering, we invest on behalf of our clients in core infrastructure assets in developed markets, with a focus on yield, diversification, and inflation-protection. 11 • We also manage Brookfield Infrastructure Income Fund (“BII”), a semi-liquid infrastructure strategy, offering private wealth investors access to our best-in-class infrastructure platform.
In our view, competition for fund investors is based primarily on investment performance, willingness to invest, investor perception of the investment manager, the investment manager's reputation, duration of relationships, quality of services, pricing, fund terms including fees, and the relative attractiveness of our present or future investments.
In our view, competition for fund investors is based primarily on investment performance, willingness to invest, investor perception of the investment manager, the investment manager ’ s reputation, duration of relationships, quality of services, pricing, fund terms including fees, and the relative attractiveness of our present or future investments.
We achieve this by raising more Fee-Bearing Capital and delivering strong investment performance, which enables us to generate performance income, such as carried interest, while maintaining efficient operating margins. As at December 31, 2024, we had Fee-Bearing Capital of $539 billion, of which 87% is long-dated or perpetual in nature, providing significant stability to our earnings profile.
We achieve this by raising more Fee-Bearing Capital and delivering strong investment performance, which enables us to generate performance income, such as carried interest, while maintaining efficient operating margins. As at December 31, 2025, we had Fee-Bearing Capital of $603 billion, of which 87% is long-dated or perpetual in nature, providing significant stability to our earnings profile.
Investment Process Our Investment Process Leads to Value Creation Earning robust returns on the investments we make on behalf of our clients enhances our ability to increase our Fee-Bearing Capital and generates carried interest, both of which grow our cash flows and create value for our shareholders. 11 1.
Investment Process Our Investment Process Leads to Value Creation Earning robust returns on the investments we make on behalf of our clients enhances our ability to increase our Fee-Bearing Capital and generate carried interest, both of which grow our cash flows and create value for our shareholders. 1.
These strategies typically involve investing in distressed or special situations where credit is undervalued or overlooked by traditional investors; • Structured Credit strategies investing across structured and asset-backed finance opportunities in real estate, fund finance, aviation, consumer and corporate credit and more; and • Liquid Credit strategies investing across a broad spectrum of public debt securities, from investment-grade to high-yield.
These strategies typically involve investing in distressed or special situations where credit is undervalued or overlooked by traditional investors; • Structured Credit strategies investing across structured and asset-backed finance opportunities in infrastructure, renewable power and transition, real estate, fund finance, aviation, consumer and corporate credit and more; and • Liquid Credit strategies investing across a broad spectrum of public debt securities, from investment-grade to high-yield.
We adhere to a robust risk management framework and methodology that is designed to enable comprehensive and consistent management of risk across the organization. We use a thorough and integrated risk assessment process to identify and evaluate risk areas across the business, including human capital, climate change, cybersecurity, liquidity, disruption, regulatory compliance and other strategic, financial, and operational risks.
A robust risk management framework and methodology, that is designed to enable comprehensive and consistent management of risk across the organization, has been implemented. We use a thorough and integrated risk assessment process to identify and evaluate risk areas across the business, including human capital, climate change, cybersecurity, liquidity, disruption, regulatory compliance and other strategic, financial, and operational risks.
Permanent Capital Vehicles and Perpetual Strategies • We manage Brookfield Business Partners L.P. (“ BBU ” ), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services.
Permanent Capital Vehicles and Perpetual Strategies • We manage Brookfield Business Partners L.P. (“BBU”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services.
This principle is not uncommon, but we have encouraged our entrepreneurial spirit throughout our growth during the past 20 years. We look for employees who have a passion not only for what they do but also for what the firm does. The shared values of ownership extend beyond helping the company succeed or generate more revenue.
This principle is not uncommon, but we have encouraged our entrepreneurial spirit throughout our growth. We look for employees who have a passion not only for what they do but also for what the firm does. The shared values of ownership extend beyond helping the company succeed or generate more revenue.
We seek to increase our Fee-Bearing Capital by growing the size of our existing product offerings and developing new strategies that cater to our clients’ investment needs. We also aim to deepen our existing institutional relationships, develop new institutional relationships, and access new distribution channels, such as high net worth individuals and retail.
We seek to increase our Fee-Bearing Capital by growing the size of our existing product offerings and developing new strategies that cater to our clients’ investment needs. We also aim to deepen and develop new institutional relationships, and access new distribution channels, such as high net worth individuals and private wealth investors.
This competitive advantage has allowed us to build leading positions in assets classes that are most in favor among investors and deliver strong investment returns to our clients across multiple business cycles.
This competitive advantage has allowed us to build leading positions in asset classes that are most in favor among clients and deliver strong investment returns to our clients across multiple business cycles.
Enhance Value and Cash Flows Through Operating Expertise We use our operating capabilities to increase the value of the assets within our product offerings and the cash flows they produce, and they help to protect our clients’ capital in adverse conditions.
Enhance Value and Cash Flows Through Operating Expertise We use our operating capabilities to increase the value of the assets and the cash flows they produce, and they help to protect our clients’ capital in adverse conditions.
Accordingly, we create value by increasing our amount of Fee-Bearing Capital and by achieving strong investment performance, which leads to growth in Fee-Bearing Capital and increased cash flows. 2. Identify and Invest in High-Quality Assets We follow a value-based approach to investing and allocating capital.
Accordingly, we create value by achieving strong investment performance, which leads to growth in Fee-Bearing Capital and increased cash flows. 2. Identify and Invest in High-Quality Assets We follow a value-based approach to investing and allocating capital.
Renewable Power and Transition Overview • We are one of the largest investors in renewable power and transition investments, with $126 billion of AUM and $58 billion of Fee-Bearing Capital as of December 31, 2024. • We believe that the growing global demand for low-cost, low-carbon energy, especially amongst corporate off-takers, will lead to continued growth opportunities for us in the future.
Renewable Power and Transition Overview • We are one of the largest investors in renewable power and transition investments, with $143 billion of AUM and $67 billion of Fee-Bearing Capital as of December 31, 2025. • We believe that the growing global demand for low-cost, low-carbon energy, especially amongst corporate off-takers, will lead to continued growth opportunities for us in the future.
The credit investments that we manage enable our clients to have exposure to a broad range of credit strategies, including: • Private Credit strategies focusing on underwriting and managing directly sourced credit investments on behalf of our clients, across various sectors, including infrastructure, renewable energy, real estate, corporate credit, royalties, aviation, equipment finance, as well as consumer and SME credit; • Opportunistic Credit strategies that are designed to capitalize on market dislocations and inefficiencies to generate high returns.
The credit investments managed by BAM and our partner managers enable our clients to have exposure to a broad range of credit strategies, including: • Private Credit strategies focusing on underwriting and managing directly sourced credit investments on behalf of our clients, across various sectors, including infrastructure, renewable energy, real estate, corporate credit, royalties, aviation, equipment finance, as well as consumer and SME credit; • Opportunistic Credit strategies that are designed to capitalize on market dislocations and inefficiencies to generate high returns.
Corporate 2025 Activity – to date On January 9, 2025, BAM announced stock exchange approval of a share repurchase program to purchase up to 37.1 million Class A Shares, representing at the time approximately 10% of the public float of Class A Shares, through open market purchases on the NYSE and TSX.
Corporate 2026 Activity – to date On January 9, 2026, BAM announced stock exchange approval of a share repurchase program to purchase up to 36.9 million Class A Shares, representing at the time approximately 10% of the public float of Class A Shares, through open market purchases on the NYSE and TSX.
Permanent Capital Vehicles and Perpetual Strategies • We manage $17 billion of Fee-Bearing Capital in Brookfield Property Group (“BPG”) as of December 31, 2024, which we invest, on behalf of BN, directly in real estate assets.
Permanent Capital Vehicles and Perpetual Strategies • We manage $19 billion of Fee-Bearing Capital in Brookfield Property Group (“BPG”) as of December 31, 2025, which we invest, on behalf of BN, directly in real estate assets.
The investment environment for renewable power and transition remains favorable and we expect to continue to advance our substantial pipeline of renewable power and transition opportunities on behalf of our clients and managed assets. • We have approximately 145 investment and asset management professionals globally that are focused on our renewable power and transition strategy, supported by approximately 17,800 operating employees in the renewable power and transition operating businesses that we manage.
The investment environment for renewable power and transition remains favorable and we expect to continue to advance our substantial pipeline of renewable power and transition opportunities on behalf of our clients and managed assets. • We have approximately 175 investment and asset management professionals globally that are focused on our renewable power and transition strategy, supported by approximately 20,100 operating employees in the renewable power and transition operating businesses that we manage.
Private Equity Overview • We have one of the best long-term track records for investing in private equity with $145 billion of AUM and $45 billion of Fee-Bearing Capital as of December 31, 2024 . • We focus on high-quality businesses that provide essential products and services, diversified across business services and industrials sectors.
Private Equity Overview • We have one of the best long-term track records for investing in private equity with $155 billion of AUM and $48 billion of Fee-Bearing Capital as of December 31, 2025. • We focus on high-quality businesses that provide essential products and services, diversified across business services and industrials sectors.
Alternative asset management businesses such as ours are typically valued based on a multiple of their Fee-Related Earnings and performance income. Accordingly, we create value by increasing the amount and quality of Fee-Related Earnings and performance income, net of associated costs.
Value Creation We create shareholder value by increasing the earnings profile of our asset management business. Alternative asset management businesses such as ours are typically valued based on a multiple of their Fee-Related Earnings and performance income. Accordingly, we create value by increasing the amount and quality of Fee-Related Earnings and performance income, net of associated costs.
After giving effect to the 2025 Arrangement, BAM owns 100% of the Asset Management Company, and BN owns approximately 73% of the Class A Shares.
After giving effect to the 2025 Arrangement, BAM owns 100% of Brookfield’s asset management business, and BN owns approximately 73% of the Class A Shares.
As at December 31, 2024 , the asset management business had total uncalled private fund commitments of $115 billion of which a pproximately $53 billion is committed across the business groups and is currently not earning fees, but will become fee-bearing once the capital is invested.
As at December 31, 2025 , the asset management business had total uncalled private fund commitments of $134 billion of which a pproximately $63 billion is committed across the business groups and is currently not earning fees, but will become fee-bearing once the capital is invested.
We generate robust Distributable Earnings, which is a key measure of our financial performance. Distributable Earnings of BAM represent the Distributable Earnings from the Asset Management Company. BAM intends to pay out approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business, as discussed further in “Part II—Item 7.
We generate robust Distributable Earnings, which is a key measure of our financial performance. BAM intends to pay out at least approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business, as discussed further in “Part II—Item 7.
We partner closely with management teams to enable long-term success through operational and other improvements. • We have approximately 270 investment and asset management professionals globally that are focused on our private equity strategy, supported by approximately 142,900 operating em ployees in the businesses that we manage.
We partner closely with management teams to enable long-term success through operational and other improvements. • We have approximately 260 investment and asset management professionals globally that are focused on our private equity strategy, supported by approximately 136,900 operating employees in the businesses that we manage.
Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures.” We are actively progressing new organic growth strategies, including transition and secondaries. We are also pursuing strategic M&A opportunities that would expand our capabilities.
Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures.” We are actively progressing new organic growth strategies, including AI infrastructure. We also consider strategic M&A opportunities that would expand our capabilities.
CTF will help drive clean energy investment in emerging markets. Permanent Capital Vehicl es and Perpetual Strategies • We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $16.0 billion as of December 31, 2024.
CTF will help drive clean energy investment in emerging markets. Permanent Capital Vehicles and Perpetual Strategies • We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $20.5 billion as of December 31, 2025.
Infrastructure Overview • We are one of the world’s largest investment managers in infrastructure, with $202 billion of AU M and $97 billion of Fee-Bearing Capital as of December 31, 2024 . • We focus on acquiring high-quality real assets and operating businesses on behalf of our clients that deliver essential goods and services, diversified across the utilities, transport, midstream and data infrastructure sectors.
Infrastructure Overview • We are one of the world’s largest investment managers in infrastructure, with $247 billion of AUM and $106 billion of Fee-Bearing Capital as of December 31, 2025. • We focus on acquiring high-quality real assets and operating businesses on behalf of our clients that deliver essential goods and services, diversified across the utilities, transport, midstream and data infrastructure sectors.
This includes leveraging industry guidance to identify sustainability factors most likely to materially impact the financial condition or operating performance of companies in a sector. As part of our Sustainability Due Diligence Protocol, we provide specific guidance to investment teams on assessing bribery and corruption, cybersecurity, health and safety, human rights, modern slavery and climate-related risks.
This includes leveraging industry guidance to identify sustainability factors most likely to materially impact the financial condition or operating performance of companies in a given sector. Our Sustainability Due Diligence Protocol provides guidance to investment teams on assessing bribery and corruption, cybersecurity, health and safety, human rights, modern slavery and climate-related risks, among other factors.
On February 12, 2025, BAM declared a quarterly dividend of $0.4375 per share, representing a 15% increase relative to the prior year, payable on March 31, 2025, to shareholders of record as of the close of business on February 28, 2025. 2024 Activity On January 9, 2024, BAM announced stock exchange approval of a share repurchase program to purchase up to 34.6 million Class A Shares, representing at the time approximately 10% of the public float of Class A Shares, through open market purchases on the NYSE and TSX.
BAM also declared a quarterly dividend of $0.5025 per share, representing a 15% increase relative to the prior year, payable on March 31, 2026, to shareholders of record as of the close of business on February 27, 2026. 2025 Activity On January 9, 2025, BAM announced stock exchange approval of a share repurchase program to purchase up to 37.1 million Class A Shares, representing at the time approximately 10% of the public float of Class A Shares, through open market purchases on the NYSE and TSX.
We invest in our people and prepare them for future leadership. Our firmwide culture, from our dealings with clients to the interactions among employees and executives, is defined by mutual respect, teamwork and passion, and revolves around our core values: • Collaboration: Leadership works side by side with colleagues throughout the organization and is committed to achieving shared success.
Our firmwide culture, from our dealings with clients to the interactions among employees and executives, is defined by mutual respect, teamwork and passion, and revolves around our core values: • Collaboration: Leadership works side by side with colleagues throughout the organization and is committed to achieving shared success.
The total €20 billion investment is projected to be delivered by 2030. On February 11, 2025, Oaktree announced the final close of Oaktree Opportunities Fund XII ( “ Opps XII ” ), with approximately $16 billion of commitments, including co-investment and affiliated vehicles.
The total €20 billion investment is projected to be delivered by 2030. • On February 11, 2025, Oaktree Capital Management, L.P. announced the final close of Oaktree Opportunities Fund XII (“Opps XII”), with approximately $16 billion of commitments, including co-investment and affiliated vehicles.
We partner closely with management teams to enable long-term success through operational and other improvements. • We have approxim ately 220 investment and asset management professionals globally that are focused on our infrastructure strategy, supported by approximately 61,000 operating emp loyees in the infrastructure operating businesses that we manage.
We partner closely with management teams to enable long-term success through operational and other improvements. • We have approximately 230 investment and asset management professionals globally that are focused on our infrastructure strategy, supported by approximately 64,000 operating employees in the infrastructure operating businesses that we manage.
Our Products Long-term Private Funds • Brookfield Infrastructure Fund (“ BIF ” ) is our flagship infrastructure fund series.
Our Products Long-term Private Funds • Brookfield Infrastructure Fund (“BIF”) is our flagship infrastructure fund series.
Credit Overview • We are one of the world’s largest and most experienced credit managers globally, with $317 billion of AUM and $245 billion of Fee-Bearing Capital as of December 31, 2024 . 15 • We seek to provide flexible, specialized capital solutions to borrowers and deliver attractive risk-adjusted returns to our clients across a range of debt strategies, focusing on private credit and direct lending in areas in which we possess differentiated investment and operational capabilities. • We have approximately 230 investment and asset management professionals globally that are focused on our credit strategies, investing across a broad spectrum of investments, leveraging the capabilities we have organically built in collaboration with the capabilities of leading credit managers with whom we partner.
Credit Overview • We are one of the world’s largest and most experienced credit managers globally, with $363 billion of AUM and $279 billion of Fee-Bearing Capital as of December 31, 2025. • We seek to provide flexible, specialized capital solutions to borrowers and deliver attractive risk-adjusted returns to our clients across a range of debt strategies, focusing on private credit and direct lending in areas in which we possess differentiated investment and operational capabilities. • We have approximately 1,800 investment and asset management professionals globally, including Oaktree employees that will become BAM employees following completion of the Oaktree Acquisition, that are focused on our credit strategies, investing across a broad spectrum of investments, leveraging the capabilities we have organically built in collaboration with the capabilities of leading credit managers with whom we partner.
Competition BAM competes with many other firms in every aspect of our business, including raising funds, investments opportunities and hiring and retaining professionals.
Competition BAM competes with many other firms in every aspect of our business, including fundraising, investment opportunities and hiring and retaining professionals.
As of February 11, the Fund has more than $7 billion invested or committed for investment in businesses that are diversified across geographies, sectors, and asset classes. On March 11, 2025, BAM announced the closing of its inaugural Brookfield Infrastructure Structured Solutions Fund (“BISS”), a middle-market infrastructure fund, achieving its fundraising target with over $1 billion of capital commitments.
As of February 11, 2025, Opps XII had more than $7 billion invested or committed for investment in businesses that are diversified across geographies, sectors, and asset classes. • On March 11, 2025, Brookfield announced the closing of its inaugural vintage of BISS, a middle-market infrastructure fund, achieving its fundraising target with approximately $1 billion of capital commitments.
(“BIP”), one of the largest, pure-play, publicly traded global infrastructure platforms, which is listed on the NYSE and TSX and had a market capitalization of $26.3 billion as of December 31, 2024. • We manage Brookfield Super-Core Infrastructure Partners (“BSIP”), which is our perpetual infrastructure private fund s trategy.
(“BIP”), one of the largest, pure-play, publicly traded global infrastructure platforms, which is listed on the NYSE and TSX and had a market capitalization of $29.2 billion as of December 31, 2025. • We manage Brookfield Super-Core Infrastructure Partners, which is our perpetual infrastructure private fund strategy.
The chart below sets out our full-time operating employees by region as at December 31, 2024. 19 Other full time operating employees represents over 70 countries and no country makes up greater than 3% of the total balance.
The chart below sets out our full-time operating employees by region as at December 31, 2025. 18 Note: “ Other ” employees under “ Full-time operating employees by region ” represents over 50 countries and no country makes up greater than 3% of the total balance.
Management committees bring together required expertise to manage key risk areas, ensuring appropriate application and coordination of risk management practices across our business and functional groups, and include the following: • Risk Management Steering Committee: supports the overall corporate risk management program, and coordinates risk assessment and mitigation on an enterprise-wide basis. • Investment Committees: oversee the investment process and review and approve investment transactions. • Conflicts Committee: resolves potential conflict situations in the investment process and other corporate transactions. • Financial Risk Oversight Committee: reviews and monitors financial exposures. • Sustainability Leadership: oversees, coordinates and implements activities related to sustainability, including current and future initiatives, and sector and market trends. • Safety Leadership Committee: promotes a strong safety culture, monitors safety trends, and sponsors strategic initiatives related to health, safety, security and environmental matters. • Net Zero Steering Committee: develops decarbonization targets, operationalizes decarbonization approaches and shares best practices across the organization. 21 • Disclosure Committee: oversees the public disclosure of material information.
Management committees bring together required expertise to manage key risk areas, ensuring appropriate application and coordination of risk management practices across our business and functional groups, and include the following: • Risk Management Steering Committee: supports the overall risk management program, and coordinates risk assessment and mitigation on an enterprise-wide basis. • Investment Committees: the respective investment committee oversees the investment process and reviews and approves investment transactions of that business group. • Conflicts Committee: resolves potential conflict situations related to investment processes and other corporate transactions. • Financial Risk Oversight Committee: reviews and monitors financial exposures. • Sustainability Leadership: oversees, coordinates and implements activities related to sustainability, including reviewing current and future initiatives, and monitoring sector and market trends. • Safety Leadership Committee: promotes a strong safety culture, monitors safety trends, and sponsors strategic initiatives related to health, safety, security and environmental matters. • Net Zero Steering Committee: develops decarbonization targets, operationalizes decarbonization approaches and shares best practices across the organization. • Cyber Leadership Committee: facilitates knowledge sharing, including identification and mitigation of emerging threats, and enhances collaboration to help ensure efficient use of resources and maintenance of effective cybersecurity programs across business groups. • Disclosure Committee: oversees the public disclosure of material information.
Risk Factors”. 20 Risk Management Our Approach Focus on Risk Culture Maintain an effective risk culture that aligns our business strategy and activities with our risk tolerance Shared Execution Business and functional groups are primarily responsible for identifying and managing risks within their business Oversight and Coordination Consistent approach and practices across business and functional groups, with coordinated management of common risks Managing risk is an integral and critical part of our business.
Risk Factors”. 19 Risk Management Our Approach Focus on Risk Culture Maintain an effective risk culture that aligns with our business strategy and risk appetite Centralized Oversight and Coordination Coordinated management of common risks across business and functional groups, with consistent approaches and practices Shared Execution Business and functional groups have primary responsibility for identifying and managing risks within their business Managing risk is an integral and critical part of our business.
We offer our investors a large selection of private funds that have global mandates and diversified strategies. Our access to large-scale, flexible capital allows us to pursue transactions on a scale beyond the reach of many, delivering superior risk-adjusted returns.
Large Scale We had $603 billion in Fee-Bearing Capital as of December 31, 2025. We offer our clients a large selection of private funds that have global mandates and diversified strategies. Our access to large-scale, flexible capital allows us to pursue transactions on a scale beyond the reach of many, delivering superior risk-adjusted returns.
Our global reach also allows us to operate our assets more effectively: we believe that a strong on-the-ground presence is critical to operating successfully in many of our markets, and many of our businesses are truly local.
Our global reach also allows us to operate our assets more effectively: we believe that a strong on-the-ground presence is critical to operating successfully, and many of our businesses are truly local. Furthermore, the combination of our strong local presence and global reach enables us to bring relationships and operating practices to bear across markets to enhance returns.
Our employee compensation programs link a significant portion of employee rewards to successful investment outcomes. Our emphasis on fostering collaboration enables us to benefit from a diverse set of skills and experiences. Our talent management processes and our approach to long-term compensation encourage collaboration.
Our emphasis on fostering collaboration enables us to benefit from a diverse set of skills and experiences. Our talent management processes and our approach to long-term compensation encourage collaboration.
On February 7, 2024, BAM declared a quarterly dividend of $0.38 per share, representing a 19% increase relative to the prior year, payable on March 28, 2024, to shareholders of record as of the close of business on February 29, 2024.
On February 12, 2025, BAM declared a quarterly dividend of $0.4375 per share, representing a 15% increase relative to the prior year, payable on March 31, 2025, to shareholders of record as of the close of business on February 28, 2025.
Regulatory Matters Our business, including our investment advisory and broker-dealer business, is subject to substantial and increasing regulatory compliance obligations and oversight, and this higher level of scrutiny gives rise to certain risks. See “Part I—Item 1A.
Management of strategic, reputational and regulatory and compliance risks are similarly coordinated to ensure consistent focus and implementation across the organization. Regulatory Matters Our business, including our investment advisory and broker-dealer business, is subject to substantial and increasing regulatory compliance obligations and oversight, and this higher level of scrutiny gives rise to certain risks. See “Part I—Item 1A.
We manage a range of public and private investment products and services for institutional and retail clients. We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them.
We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them.
This culture is reinforced by the strong commitment and leadership of our senior executives and supported by the policies and practices we have implemented, including our compensation approach.
This culture is reinforced by the strong commitment and leadership of our senior executives and supported by the policies and practices we have implemented, including our compensation approach. Centralized Oversight and Coordination We have implemented strong governance practices to monitor and oversee our risk management program.
ITEM 1. BUSINESS Business Overview We are a leading global alternative asset manager, headquartered in New York, NY, with over $1 trillion of Assets Under Management across renewable power and transition, infrastructure, private equity, real estate, and credit. Our objective is to generate attractive, long-term risk-adjusted returns for the benefit of our clients and shareholders.
ITEM 1. BUSINESS Business Overview We are a leading global alternative asset manager, headquartered in New York, NY, with over $1 trillion of Assets Under Management across infrastructure, renewable power and transition, private equity, real estate, and credit.
We aim to create an environment that is built on strong relationships and conducive to developing our workforce, and where individuals from diverse backgrounds can thrive. Globally, we are supported by approximately 250,000 full-time operating employees (up 2% from approximately 240,000 in 2023). We also periodically hire contractors as needed to support the growth of our business.
We aim to create an environment that is built on strong relationships and conducive to developing our workforce, and where individuals from diverse backgrounds can thrive. Globally, we are supported by approximately 250,000 full-time operating employees.
In this product offering, we invest on behalf of our clients in high-quality infrastructure assets on a value basis and seek to add value through the investment life cycle by utilizing our operations-oriented approach. • Brookfield Infrastructure Structured Solutions Fund (“ BISS ” ) seeks to invest structured equity and non-control common equity in the infrastructure mid-market.
In this product offering, we invest on behalf of our clients in high-quality infrastructure assets on a value basis and seek to add value through the investment life cycle by utilizing our operations-oriented approach. • Brookfield AI Infrastructure Fund (“BAIIF”), our strategy focused on the development of AI infrastructure, is designed to meet the growing demand from hyperscalers, enterprises, and governments for scalable, integrated solutions. • Brookfield Infrastructure Structured Solutions Fund (“BISS”) seeks to invest structured equity and non-control common equity in the infrastructure mid-market.
During the year, our asset management business deployed $47.6 billion across the business groups, including $5.6 billion from renewable power and transition, $3.8 billion from infrastructure, $5.9 billion from private equity, $6.1 billion from real estate and $26.2 billion from credit.
During the year, our asset management business deployed $65.6 billion across the strategies, including $10.9 billion from infrastructure, $6.9 billion from renewable power and transition, $4.0 billion from private equity, $7.5 billion from real estate and $36.3 billion from credit.
The increase in Fee-Related Earnings was partially offset by higher cash taxes resulting in DE of $2.4 billion for 2024 , or an increase of 5% compared to 2023.
The increase in Fee-Related Earnings was partially offset by higher cash taxes and lower investment income resulting in Distributable Earnings of $2.7 billion for 2025 , or an increase of 14% compared to 2024.
We draw on our 100+ year heritage as an owner and operator to invest for value and seek to generate strong returns for our clients across economic cycles.
Drawing on more than 100 years of experience as an owner and operator, we invest for value and seek to generate strong risk-adjusted returns for our clients across economic cycles.
Global Reach We invest on behalf of our clients in more than 30 countries on five continents around the world. We believe that our global reach allows us to diversify and identify a broad range of opportunities.
Global Reach We invest on behalf of our clients in more than 50 countries on five continents around the world. We believe that our global reach allows us to diversify and identify a broad range of opportunities. We can invest where capital is scarce, and our scale enables us to move quickly and pursue multiple opportunities across different markets.
Under the share repurchase program, which commenced on January 13, 2025 and is set to expire on January 12, 2026, BAM has, as of March 7, 2025, purchased 1,110,543 Class A Shares at an average price of $53.27. On January 16, 2025, BAM announced the appointment of Bruce Flatt as Chair of the Board of BAM.
Under the share repurchase program, which commenced on January 13, 2025 and expired on January 12, 2026, BAM purchased 6,548,561 Class A Shares at an average price of $54.15. On January 16, 2025, BAM announced the appointment of Bruce Flatt as Chair of the Board of BAM.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Certain of our managed assets may be subject to compliance with laws, regulations, regulatory rules and/or guidance relating to sustainability, and any failure to comply with these laws, regulations, regulatory rules or guidance could expose us to material adverse consequences, including loss, limitations on our ability to undertake licensable business, legal liabilities, financial and non-financial sanctions and penalties, and/or reputational damage.
Certain of our managed assets may be subject to compliance with laws, regulations, regulatory rules and/or guidance relating to sustainability, and any failure to comply with these laws, regulations, regulatory rules and/or guidance could expose us to material adverse consequences, including loss, limitations on our ability to undertake licensable business, legal liabilities, financial and non-financial sanctions and penalties, and/or reputational damage.
The occurrence of any adverse health, safety or environmental event, or any changes, additions to, or more rigorous enforcement of, health, safety and environmental standards, licenses, permits or other approvals could have a significant impact on operations and/or result in material expenditures.
The occurrence of any adverse health, safety or environmental event, or any changes or additions to, or more rigorous enforcement of, health, safety and environmental standards, licenses, permits or other approvals could have a significant impact on operations and/or result in material expenditures.
The market price of our Class A Shares may be volatile and could fluctuate significantly in response to factors both related and unrelated to our operating performance and/or future prospects, including, but not limited to: (i) variations in our operating results and financial condition; (ii) actual or prospective changes in government laws, rules or regulations affecting our business and our managed assets; (iii) material announcements by us, our affiliates or our competitors; (iv) the general state of the securities markets; (v) market conditions and events specific to the industries in which we and our managed assets operate; (vi) changes and developments in general economic, political, or social conditions, including as a result of pandemics/epidemics and related economic disruptions; (vii) changes in the values of our investments and distributions or changes in the amount of interest paid in respect of investments; (viii) differences between our actual financial results and those expected by investors and analysts; (ix) changes in analysts’ recommendations or earnings projections; (x) the depth and liquidity of the market for the Class A Shares; (xi) dilution from the issuance of additional equity; (xii) investor perception of our business, our managed assets and the sectors in which we deploy the funds from our strategies; (xiii) investment restrictions; (xiv) our dividend policy; (xv) the departure of key executives; (xvi) sales of Class A Shares by senior management or significant shareholders; and (xvii) the materialization of other risks.
The market price of our Class A Shares may be volatile and could fluctuate significantly in response to factors both related and unrelated to our operating performance and/or future prospects, including, but not limited to: (i) variations in our operating results and financial condition; (ii) actual or prospective changes in government laws, rules or regulations affecting our business and our managed assets; (iii) material announcements by us, our affiliates or our competitors; (iv) the general state of the securities markets; (v) market conditions and events specific to the industries in which we and our managed assets operate; (vi) changes and developments in general economic, political, or social conditions, including as a result of pandemics/epidemics and related economic disruptions; (vii) changes in the values of our investments and distributions or changes in the amount of interest paid in respect of investments; (viii) differences between our actual financial results and those expected by investors and analysts; (ix) changes in analysts’ recommendations or earnings projections; (x) the depth and liquidity of the market for the Class A Shares; (xi) dilution from the issuance of additional 22 equity; (xii) investor perception of our business, our managed assets and the sectors in which we deploy the funds from our strategies; (xiii) investment restrictions; (xiv) our dividend policy; (xv) the departure of key executives; (xvi) sales of Class A Shares by senior management or significant shareholders; and (xvii) the materialization of other risks.
While we will continue to attempt to deal with competitive pressures by leveraging our asset management strengths and the operating capabilities of BN and compete on more than just price, there is no guarantee these measures will be successful, and we may have difficulty competing for investment opportunities, particularly those offered through auction or other competitive processes.
While we will continue to attempt to deal with competitive pressures by leveraging our asset management strengths and the operating capabilities of BN and 37 compete on more than just price, there is no guarantee these measures will be successful, and we may have difficulty competing for investment opportunities, particularly those offered through auction or other competitive processes.
For example, the E.U. has adopted an E.U.-wide mechanism to screen foreign investment on national security grounds and most E.U. member states now have a foreign investment screening mechanism in place or has initiated a consultative or legislative process expected to result in the adoption of a new mechanism or amendments to an existing mechanism, adopted a regulation aimed at regulation of foreign subsidies that could distort the internal E.U. market.
For example, the E.U. has adopted an E.U.-wide mechanism to screen foreign investment on national security grounds and most E.U. member states 25 now have a foreign investment screening mechanism in place or has initiated a consultative or legislative process expected to result in the adoption of a new mechanism or amendments to an existing mechanism, adopted a regulation aimed at regulation of foreign subsidies that could distort the internal E.U. market.
Among other things, we would be prohibited from engaging in certain business activities (or have conditions placed on our business activities), face 28 restrictions on engaging in transactions with affiliated entities and issuing certain securities or engaging in certain types of financings, be restricted with respect to the amount and types of borrowings we are permitted to obtain, be required to limit the amount of investments that we make as principal, and face other limitations on our activities.
Among other things, we would be prohibited from engaging in certain business activities (or have conditions placed on our business activities), face restrictions on engaging in transactions with affiliated entities and issuing certain securities or engaging in certain types of financings, be restricted with respect to the amount and types of borrowings we are permitted to obtain, be required to limit the amount of investments that we make as principal, and face other limitations on our activities.
In particular, our information technology systems may be subject to cyber-terrorism intended to obtain unauthorized access to our proprietary information, personally identifiable information or to client or third-party data stored on our systems, destroy or disable our data, and/or that of our business partners, disclose confidential data in breach of data privacy legislation, destroy data or disable, degrade or 34 sabotage our systems, through the introduction of computer viruses, cyber-attacks and other means.
In particular, our information technology systems may be subject to cyber-terrorism intended to obtain unauthorized access to our proprietary information, personally identifiable information or to client or third-party data stored on our systems, destroy or disable our data, and/or that of our business partners, disclose confidential data in breach of data privacy legislation, disable, degrade or sabotage our systems, through the introduction of computer viruses, cyber-attacks and other means.
Economic and market conditions may also negatively impact our realization opportunities. 44 The valuations of and realization opportunities for investments made by our funds could also be subject to high volatility as a result of uncertainty regarding governmental policy with respect to, among other things, tax, financial services regulation, international trade, immigration, healthcare, labor, infrastructure and energy.
Economic and market conditions may also negatively impact our realization opportunities. The valuations of and realization opportunities for investments made by our funds could also be subject to high volatility as a result of uncertainty regarding governmental policy with respect to, among other things, tax, financial services regulation, international trade, immigration, healthcare, labor, infrastructure and energy.
Sustainability considerations include climate change, human capital and labor management, corporate governance, diversity and privacy and data security, among others. Increasingly, investors and lenders are incorporating sustainability considerations into their investment or lending process, respectively, alongside traditional financial considerations. Investors or potential investors may not invest in all our products given certain industries in which we operate.
Sustainability considerations include climate change, human capital and labor management, corporate governance, diversity and privacy and data security, among others. Certain investors and lenders are incorporating sustainability considerations into their investment or lending process, respectively, alongside traditional financial considerations. Investors or potential investors may not invest in all our products given certain industries in which we operate.
A disaster, disruption or compromise in technology or infrastructure that supports our managed assets, including a disruption involving electronic communications or other services used by us, our vendors or third parties with whom we conduct business, may have an adverse impact on our ability to continue to manage our assets without interruption which could have a material adverse effect on us.
A disaster, disruption or compromise in technology or infrastructure that 30 supports our managed assets, including a disruption involving electronic communications or other services used by us, our vendors or third parties with whom we conduct business, may have an adverse impact on our ability to continue to manage our assets without interruption which could have a material adverse effect on us.
However, the process for establishing and maintaining adequate internal controls over financial reporting has inherent limitations, including the possibility of human error. In addition, we may exclude recently acquired companies from our evaluation of internal controls. Our internal controls over financial reporting may not prevent or detect misstatements in our financial disclosures on a timely basis, or at all.
However, the process for establishing and maintaining adequate internal control over financial reporting has inherent limitations, including the possibility of human error. In addition, we may exclude recently acquired companies from our evaluation of internal controls. Our internal control over financial reporting may not prevent or detect misstatements in our financial disclosures on a timely basis, or at all.
The governing agreements of our private funds provide that, subject to certain conditions (which may, particularly in the case of our removal as general partner, include final legal adjudications of the merits of the particular issue), third-party investors in these funds will have the right to remove us as general partner or to accelerate the liquidation date of the fund.
The governing agreements of our private funds 33 provide that, subject to certain conditions (which may, particularly in the case of our removal as general partner, include final legal adjudications of the merits of the particular issue), third-party investors in these funds will have the right to remove us as general partner or to accelerate the liquidation date of the fund.
Many factors may impact us and our managed assets, including interest rate increases, which would impact the amount of revenue generated by our managed assets and may lead to an increase in the amount of cash required to service our obligations. Political instability, changes in government policy or unfamiliar cultural factors could adversely impact the value of our investments.
Many factors may impact us and our managed assets, including interest rate increases, which would impact the 26 amount of revenue generated by our managed assets and may lead to an increase in the amount of cash required to service our obligations. Political instability, changes in government policy or unfamiliar cultural factors could adversely impact the value of our investments.
In addition, we may be subject to successor 29 liability for violations under these laws and regulations or other acts of bribery committed by entities in which we or our managed assets invest. We are also subject to laws and regulations governing trade and economic sanctions. The Office of Foreign Assets Control of the U.S.
In addition, we may be subject to successor liability for violations under these laws and regulations or other acts of bribery committed by entities in which we or our managed assets invest. We are also subject to laws and regulations governing trade and economic sanctions. The Office of Foreign Assets Control of the U.S.
These risks could be heightened by foreign policy decisions of the U.S. (where we have significant operations) and other influential countries or general geopolitical conditions. Additionally, our managed assets rely on free movement of goods, services and capital from around the globe.
These risks could be heightened by foreign policy decisions of 28 the U.S. (where we have significant operations) and other influential countries or general geopolitical conditions. Additionally, our managed assets rely on free movement of goods, services and capital from around the globe.
Investors may reduce (or even eliminate) their investment allocations to alternative investments, including closed-ended private funds. Investors that are required to maintain specific asset class allocations within their portfolio may be required to reduce their investment allocations to alternative investments, particularly during periods when other asset classes, such as public securities, are decreasing in 41 value.
Investors may reduce (or even eliminate) their investment allocations to alternative investments, including closed-ended private funds. Investors that are required to maintain specific asset class allocations within their portfolio may be required to reduce their investment allocations to alternative investments, particularly during periods when other asset classes, such as public securities, are decreasing in value.
In addition, BN has the right (but not the obligation) to participate up to 25% (net of any participation of our asset management business) in each new sponsored fund of our asset management business. This participation includes any participation by BN’s 46 perpetual affiliates and BWS, but they are also not obligated to invest capital in our funds.
In addition, BN has the right (but not the obligation) to participate up to 25% (net of any participation of our asset management business) in each new sponsored fund of our asset management business. This participation includes any participation by BN’s perpetual affiliates and BWS, but they are also not obligated to invest capital in our funds.
In general, a decline in economic conditions, either in the markets or industries in which our strategies invest, or both, will result in downward pressure on our operating margins and asset values as a result of lower demand and increased price competition for the services and products that we provide.
In general, a decline in economic conditions, either in the markets or industries in which our strategies invest, or both, will result in downward pressure on our operating margins and asset values as a result of lower demand and increased price competition for the 27 services and products that we provide.
Our business relationships and reputation could be negatively impacted by a number of factors, including: poor performance; actual, potential or perceived conflicts of interest that are not adequately addressed; misconduct or alleged misconduct by employees; rumors or innuendos; or failed or ineffective implementation of new investments or strategies.
Our business relationships and reputation could be negatively impacted by a number of factors, including: poor performance; 32 actual, potential or perceived conflicts of interest that are not adequately addressed; misconduct or alleged misconduct by employees; rumors or innuendos; or failed or ineffective implementation of new investments or strategies.
In general, a non-U.S. corporation will be a PFIC during a taxable year if, taking into account the income and assets of certain of its affiliates, (i) 75% or more of its gross income constitutes passive income or (ii) 50% or more of its assets produce, or are held for the production of, passive income.
In general, a non-U.S. corporation will be a PFIC for a taxable year if, taking into account the income and assets of certain of its affiliates, (i) 75% or more of its gross income for such year constitutes passive income or (ii) 50% or more of its assets during such year produce or are held for the production of, passive income.
Many factors could cause a decline in the pace of investment, including a market environment characterized by relative high prices, the inability of our investment professionals to identify attractive investment opportunities, competition for such opportunities among other potential acquirers, decreased availability of capital on attractive terms.
Many factors could cause a 39 decline in the pace of investment, including a market environment characterized by relative high prices, the inability of our investment professionals to identify attractive investment opportunities, competition for such opportunities among other potential acquirers, decreased availability of capital on attractive terms.
A number of countries across the globe have also agreed to implement a “two pillar” plan for global tax reform, developed by the OECD/G20 Inclusive Framework on BEPS, to address perceived base erosion and profit shifting 48 (“BEPS”) by some multinational groups.
A number of countries across the globe have also agreed to implement a “two pillar” plan for global tax reform, developed by the OECD/G20 Inclusive Framework on BEPS, to address perceived base erosion and profit shifting (“BEPS”) by some multinational groups.
Our managed assets could be exposed to effects of catastrophic events, such as severe weather conditions, natural disasters, major accidents, pandemics/epidemics, acts of malicious destruction, climate change, war/military conflict or terrorism, which could materially adversely impact our operations.
Our managed assets could be exposed to the effects of catastrophic events, such as severe weather conditions, natural disasters, major accidents, pandemics/epidemics, acts of malicious destruction, climate change, war/military conflict or terrorism, which could materially adversely impact our operations.
Protecting the quality of our revenue streams through the inclusion of take-or-pay or guaranteed minimum volume provisions into our contracts is not always possible or fully effective. 39 Some of our managed assets may require substantial capital expenditures to maintain their asset base.
Protecting the quality of our revenue streams through the inclusion of take-or-pay or guaranteed minimum volume provisions into our contracts is not always possible or fully effective. Some of our managed assets may require substantial capital expenditures to maintain their asset base.
It is possible that we may face a disproportionate amount of space expiring in any one year. 40 Additionally, rental rates could decline, tenant bankruptcies could increase, and tenant renewals may not be achieved, particularly in the event of an economic slowdown.
It is possible that we may face a disproportionate amount of space expiring in any one year. Additionally, rental rates could decline, tenant bankruptcies could increase, and tenant renewals may not be achieved, particularly in the event of an economic slowdown.
As a result of this increased focus on the use of tax planning by multinational companies, our company could be subject to negative media coverage, which may adversely impact our reputation. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
As a result of this increased focus on the use of tax planning by multinational companies, our company could be subject to negative media coverage, which may adversely impact our reputation. ITEM 1B. UNRESOLVED STAFF COMMENTS None. 44
The terms of our various credit agreements and other financing documents may require us to comply with a number of customary financial and other covenants, such as maintaining debt service coverage and leverage ratios, adequate insurance coverage and certain credit ratings.
The terms of our various credit agreements and other financing documents may require us to comply with a number of customary 38 financial and other covenants, such as maintaining debt service coverage and leverage ratios, adequate insurance coverage and certain credit ratings.
Similarly, if a third party were to acquire ownership of BN’s Class A Shares and appoint new directors or officers of its own choosing, it would be able to exercise substantial influence over BAM’s policies and procedures and exercise substantial influence over BAM’s management.
Similarly, if a third party were to acquire a significant ownership of BN’s Class A Shares and appoint new directors or officers of its own choosing, it would be able to exercise substantial influence over BAM’s policies and procedures and exercise substantial influence over BAM’s management.
As a result, the loss of these personnel could jeopardize our relationships with investors in our managed assets and other 47 members of the business communities and industries in which we operate and result in the reduction of our assets under management or fewer investment opportunities.
As a result, the loss of these personnel could jeopardize our relationships with investors in our managed assets and other members of the business communities and industries in which we operate and result in the reduction of our assets under management or fewer investment opportunities.
The majority of the revenue from our healthcare services operation is derived from private health insurance funds, which may be affected by a deterioration in the economic climate, a change in economic incentives, increases in private health insurance premiums and other factors.
The majority of the revenue from our healthcare services operation is derived from private health insurance funds, which may be affected 35 by a deterioration in the economic climate, a change in economic incentives, increases in private health insurance premiums and other factors.
Department of the Treasury, the U.S. Department of Commerce and the U.S. Department of State administer and enforce various trade control laws and regulations, including economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign states, organizations and individuals.
Department of the Treasury (“OFAC”), the U.S. Department of Commerce and the U.S. Department of State administer and enforce various trade control laws and regulations, including economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign states, organizations and individuals.
If we are unable to re-negotiate or replace these contracts, or unable to secure prices at least equal to the current prices we receive, our business, financial condition, results of operation and prospects could be adversely affected. 38 In our renewable power and transition portfolio, there is a risk of equipment failure due to severe weather conditions (including as a result of climate change), wear and tear, latent defect, design error or operator error, among other things.
If we are unable to re-negotiate or replace these contracts, or unable to secure prices at least equal to the current prices we receive, our business, financial condition, results of operation and prospects could be adversely affected. 34 In our renewable power and transition portfolio, there is a risk of equipment failure due to severe weather conditions (including as a result of climate change), wear and tear, latent defect, design error or operator error, among other things.
The hospitality and multifamily assets in our managed assets are subject to a range of operating risks common to these industries, many of which are outside our control, and the profitability of our investments in these industries may be adversely affected by these factors.
The hospitality and multifamily assets in our managed assets are subject to a range of operating risks common to these industries, many of which are outside our control, and the profitability of our investments in these industries may be adversely affected by these 36 factors.
As a result, for so long as BN maintains a significant voting interest in BAM, it will have the ability to exert substantial influence over many matters affecting BAM’s business, including: (i) the composition of the Board and, through the Board, any determinations with respect to the business plans and policies of BAM, including the appointment and removal of its officers; (ii) determinations with respect to acquisitions of businesses, mergers or other business combinations; and (iii) BAM’s capital structure, including financing activities.
As a result, for so long as BN maintains a significant voting interest in BAM, it will have the ability to exert substantial influence over many matters affecting BAM’s business, including: (i) the composition of the Board of Directors of BAM and, through such Board, any determinations with respect to the business plans and policies of BAM, including the appointment and removal of its officers; (ii) determinations with respect to acquisitions of businesses, mergers or other business combinations; and (iii) BAM’s capital structure, including financing activities.
The financial services industry has been the subject of heightened scrutiny and enforcement actions. Regulatory investigations and/or enforcement actions by our regulators could have a material adverse effect on our business and/or reputation.
The financial services industry has been the subject of heightened scrutiny and enforcement actions. Regulatory investigations and/or enforcement actions by our regulators could have a material adverse effect on our business and/or 23 reputation.
Bribery Act 2010, the Canadian Corruption of Foreign Public Officials Act (the “CFPOA”) and Part IV of the Criminal Code (Canada), the Brazilian Clean Companies Act, the Australian Criminal Code Act 1995, the Indian Prevention of Corruption Act, and the Bermudian Bribery Act 2016.
Bribery Act 2010, the Canadian Corruption of Foreign Public Officials Act (the “CFPOA”) and Part IV of the Criminal Code (Canada), the Brazilian Clean Companies Act, the Australian Criminal Code Act 1995, the Indian Prevention of Corruption Act 1988, and the Bermudian Bribery Act 2016.
As a result, it may be difficult for U.S. investors to: (i) effect service of process within the United States upon BAM or those directors and officers who are not residents of the United States; or (ii) realize in the United States upon judgments of courts of the United States predicated upon the civil liability provisions of the United States federal securities laws.
As a result, it may be difficult for U.S. investors to: (i) effect service of process within the U.S. upon BAM or those directors and officers who are not residents of the U.S.; or (ii) realize in the U.S. upon judgments of courts of the U.S. predicated upon the civil liability provisions of the U.S. federal securities laws.
Our business is not only regulated in the U.S., but also in other jurisdictions where we conduct operations including, but not limited to, the E.U., the U.K., Canada, Brazil, Colombia, Australia, India and South Korea. Similar to the environment in the U.S., our business and how we market in jurisdictions outside the U.S. has become subject to further regulation.
Our business is not only regulated in the U.S., but also in other jurisdictions where we conduct operations including, but not limited to, the E.U., the U.K., Canada, Brazil, Colombia, Australia, India and South Korea. Similar to the environment in the U.S., our business and how we market in jurisdictions outside the U.S. have become subject to further regulation.
For example, under the United States Foreign Investment Risk Review Modernization Act, the Committee on Foreign Investment in the United States has the authority to review, block or impose conditions on investments by non-U.S. persons in U.S. companies or real assets deemed critical or sensitive to the U.S. Many non-U.S. jurisdictions have similar laws.
For example, under the United States Foreign Investment Risk Review Modernization Act of 2018, the Committee on Foreign Investment in the United States has the authority to review, block or impose conditions on investments by non-U.S. persons in U.S. companies or real assets deemed critical or sensitive to the U.S. Many non-U.S. jurisdictions have similar laws.
In addressing these conflicts, we have implemented a variety of policies and procedures; however, there can be no assurances that these will be effective at mitigating actual, potential or perceived conflicts of interest in all circumstances, or will not reduce the positive synergies that we seek to cultivate.
In addressing these conflicts, we have implemented a variety of policies and procedures; however, there can be no assurance that these will be effective at mitigating actual, potential or perceived conflicts of interest in all circumstances, or will not reduce the positive synergies that we seek to cultivate.
Even if our asset management business’ direct participation is intended to be of a temporary nature, our asset management business may be unable to syndicate, assign or transfer its interest or commitment as our asset management business intended and therefore may be required to take or keep ownership of assets or securities for an extended period.
Even if our direct participation is intended to be of a temporary nature, we may be unable to syndicate, assign or transfer its interest or commitment as our asset management business intended and therefore may be required to take or keep ownership of assets or securities for an extended period.
If BAM or our auditors were to conclude that our internal controls over financial reporting were not effective in respect of any reporting period, investors could lose confidence in our reported financial information and the price of our Class A Shares could decline.
If BAM or our auditors were to conclude that our internal control over financial reporting were not effective in respect of any reporting period, investors could lose confidence in our reported financial information and the price of our Class A Shares could decline.
We rely on the use of technology and information systems, many of which are controlled by third-party service providers, which may not be able to accommodate our growth or may increase in cost and may become subject to cyber-terrorism or other compromises and shut-downs, and any failures or interruptions of these systems could adversely affect our businesses and results of operations.
We rely on the use of technology and information systems, many of which are controlled by third-party service providers, which may not be able to accommodate our growth or may increase in cost and may become subject to cyber-terrorism or other compromises and shutdowns, and any failures or interruptions of these systems could adversely affect our businesses and results of operations.
Management is responsible for establishing and maintaining adequate internal controls over financial reporting to give our stakeholders assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in conformity with U.S. GAAP.
Management is responsible for establishing and maintaining adequate internal control over financial reporting to give our stakeholders assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in conformity with U.S. GAAP.
Regulation of derivatives may increase the cost of derivative contracts, reduce the availability of derivatives to protect against operational risk and reduce the liquidity of the derivatives market, all of which may reduce our use of derivatives and result in the increased volatility and decreased predictability of our cash flows.
Regulation of derivatives may increase the cost of derivative contracts, reduce the availability of derivatives to protect against operational risk and reduce the liquidity of the over-the-counter derivatives market, all of which may reduce our use of derivatives and result in the increased volatility and decreased predictability of our cash flows.
We face risks specific to our renewable power and transition strategies. Our renewable power and transition strategies invest in assets that are subject to changes in the weather, hydrology and price, but also include risks related to equipment or dam failure, counterparty performance, water rental costs, land rental costs, changes in regulatory requirements and other material disruptions.
Our renewable power and transition strategies invest in assets that are subject to changes in the weather, hydrology and price, but also include risks related to equipment or dam failure, counterparty performance, water rental costs, land rental costs, changes in regulatory requirements and other material disruptions.
We cannot predict what effects such cyber-attacks or compromises or shut-downs may have on our business and on the privacy of the individuals or entities affected, and the consequences could be material. Cyber incidents may remain undetected for an extended period, which could exacerbate these consequences.
We cannot predict what effects such cyber-attacks or compromises or shutdowns may have on our business and on the privacy of the individuals or entities affected, and the consequences could be material. Cyber incidents may remain undetected for an extended period, which could exacerbate these consequences.
The PFIC determination also depends on the application of complex U.S. federal income tax rules that are subject to differing interpretations. Thus, there can be no assurance that BAM will not be classified as a PFIC for any taxable year, or that the IRS or a court will agree with BAM’s determination as to its PFIC status. U.S.
The PFIC determination also depends on the application of complex U.S. federal income tax rules that are subject to differing interpretations. Thus, there can be no assurance that BAM will not be classified as a PFIC for any taxable year, or that the Internal Revenue Service or a court will agree with BAM’s determination as to its PFIC status.
Such changes could result in a substantial increase in the effective tax rate on all or a portion of our income. Governments around the world increasingly seek to regulate multinational companies and the application of differential tax rates between jurisdictions.
Such changes could result in a substantial increase in the effective tax rate on all or a portion of our income. Governments around the world increasingly seek to regulate multinational companies and their use of differential tax rates between jurisdictions.
Though we are not currently pursuing any strategic acquisitions, future acquisitions will likely involve some or all of the following risks, which could materially and adversely affect our business, financial condition or results of operations: the difficulty of integrating the acquired operations and personnel into our current operations; potential disruption of our current operations; diversion of resources, including our management’s time and 43 attention; the difficulty of managing the growth of a larger organization; the risk of entering markets in which we have little experience; the risk of becoming involved in labor, commercial or regulatory disputes or litigation related to the new enterprise; the risk of environmental or other liabilities associated with the acquired business; and the risk of a change of control resulting from an acquisition triggering rights of third parties or government agencies under contracts with, or authorizations held by, the managed assets being acquired.
Any strategic acquisition will likely involve some or all of the following risks, which could materially and adversely affect our business, financial condition or results of operations: the difficulty of integrating the acquired operations and personnel into our current operations; potential disruption of our current operations; diversion of resources, including our management’s time and attention; the difficulty of managing the growth of a larger organization; the risk of entering markets in which we have little experience; the risk of becoming involved in labor, commercial or regulatory disputes or litigation related to the new enterprise; the risk of environmental or other liabilities associated with the acquired business; and the risk of a change of control resulting from an acquisition triggering rights of third parties or government agencies under contracts with, or authorizations held by, the managed assets being acquired.
ITEM 1A. RISK FACTORS You should carefully consider the following factors in addition to other information set forth in this Annual Report. If any of the following risks were actually to occur, our business, financial condition and results of operations and the prospects and value of the Class A Shares would likely suffer.
ITEM 1A. RISK FACTORS You should carefully consider the following risk factors, in addition to other information set forth in this Annual Report. If any of the following risks were actually to occur, our business, financial condition and results of operations and the prospects and value of the Class A Shares would likely be materially impacted.
If one of these vehicles experiences losses, we will not earn incentive income from it until it surpasses the previous high water mark. The incentive income we earn is therefore dependent on the net asset value or the net profit of the vehicle, which could lead to significant volatility in our results.
If one of these vehicles experiences losses, we will not earn incentive income from it until it surpasses the previous 40 high water mark. The incentive income we earn is therefore dependent on the NAV or the net profit of the vehicle, which could lead to significant volatility in our results.
Anti-corruption, anti-money laundering, economic sanctions, and trade control laws imposed by non-U.S. jurisdictions, such as EU and UK sanctions or blocking statutes and the UK Bribery Act, may also impose stricter or more onerous requirements than the FCPA, OFAC, the U.S. Department of Commerce, the U.S. Department of State or U.S.
Anti-corruption, anti-money laundering, economic sanctions, and trade control laws imposed by non-U.S. jurisdictions, such as E.U. and U.K. sanctions or blocking statutes and the U.K. Bribery Act, may also impose stricter or more onerous requirements than the FCPA, OFAC, the U.S. Department of Commerce, the U.S. Department of State or U.S.
Efforts to limit global warming may give rise to changes in regulations, reporting and consumer sentiment that could have a negative impact on our existing operations by increasing the costs of operating our business or reducing demand for our products and services.
Efforts to limit climate change may give rise to changes in regulations, reporting and consumer sentiment that could have a negative impact on our existing operations by increasing the costs of operating our business or reducing demand for our products and services.
Furthermore, we earn this incentive income only if the net asset value of a vehicle has increased or, in the case of certain vehicles, increased beyond a particular return threshold, or if the vehicle has earned a net profit.
Furthermore, we earn this incentive income only if the NAV of a vehicle has increased or, in the case of certain vehicles, increased beyond a particular return threshold, or if the vehicle has earned a net profit.
We are subject to geopolitical uncertainties in all jurisdictions in which we operate. We make investments in businesses that are based outside of the United States and we may pursue investments in unfamiliar markets, which may expose us to additional risks not typically associated with investing in the United States.
We are subject to geopolitical uncertainties in all jurisdictions in which we operate. We make investments in businesses that are based outside of the U.S. and we may pursue investments in unfamiliar markets, which may expose us to additional risks not typically associated with investing in the U.S..
The sophistication of these threats continue to evolve and grow, including the risk associated with the use of emerging technologies, such as artificial intelligence and quantum computing, for nefarious purposes.
The sophistication of these threats continue to evolve and grow, including the risk associated with the use of emerging technologies, such as AI and quantum computing, for nefarious purposes.
Our tax reporting is supported by tax laws in the countries in which we operate and the application of tax treaties between the various countries in which we operate. Our income tax reporting is subject to audit by tax authorities in the countries in which we operate.
Our tax reporting is consistent with the tax laws in the countries in which we operate and the application of tax treaties between the various countries in which we operate. Our income tax reporting is subject to audit by tax authorities in the countries in which we operate.
There can be no assurance that Canadian federal income tax laws, the judicial interpretation thereof, or the administrative policies and assessing practices of the CRA will not be changed in a manner that adversely affects BAM and/or holders of Class A Shares.
There can be no assurance that Canadian federal income tax laws, the judicial interpretation thereof, or the administrative policies and assessing practices of the Canada Revenue Agency (“CRA”) will not be changed in a manner that adversely affects BAM and/or holders of Class A Shares.
Any failure to make necessary expenditures to maintain their operations could impair their ability to serve existing customers or accommodate increased volumes. In addition, we may not be able to recover investments in capital expenditures based upon the rates our operations are able to charge. We face risks specific to our private equity strategies.
Any failure to make necessary expenditures to maintain their operations could impair their ability to serve existing customers or accommodate increased volumes. In addition, we may not be able to recover investments in capital expenditures based upon the rates our operations are able to charge. We face risks specific to our renewable power and transition strategies.
In addition, the distribution of retail products, including through new channels whether directly or through market intermediaries, could expose us to allegations of improper conduct and/or actions by state and federal regulators in the U.S. and regulators in jurisdictions outside of the U.S. with respect to, among other things, product suitability, investor classification, compliance with securities laws, conflicts of interest and the adequacy of disclosure to customers to whom our products are distributed through those channels. 45 As we expand the distribution of products to retail investors outside of the U.S., we are increasingly exposed to risks in non-U.S. jurisdictions.
In addition, the distribution of retail products, including through new channels whether directly or through market intermediaries, could expose us to allegations of improper conduct and/or actions by state and federal regulators in the U.S. and regulators in jurisdictions outside of the U.S. with respect to, among other things, product suitability, investor classification, compliance with securities laws, conflicts of interest and the adequacy of disclosure to customers to whom our products are distributed through those channels.
The potential for increased tariffs and trade barriers, as well as increased geopolitical risks, adds uncertainty to the long term outlook for inflation and interest rates and a reacceleration of inflation could trigger a reversal in recent interest rate decreases.
Increased tariffs, retaliatory actions and trade barriers, as well as increased geopolitical risks, add uncertainty to the long-term outlook for inflation and interest rates and a reacceleration of inflation could trigger a reversal in recent interest rate decreases.
Securities Act to raise capital from investors. Rule 506 is not available to issuers deemed to be “bad actors” under Rule 506 if a covered person of the issuer has been the subject to certain criminal, civil or regulatory disqualifying events.
Most of our funds rely on Rule 506 of Regulation D under the Securities Act to raise capital from investors. Rule 506 is not available to issuers deemed to be “bad actors” under Rule 506 if a covered person of the issuer has been the subject to certain criminal, civil or regulatory disqualifying events.
Governmental taxation reforms, policies and practices could adversely affect us and, depending on the nature of such reforms, policies and practices, including the implementation of the BEPS proposals in the jurisdictions in which we operate, could have an impact on us.
Governmental taxation reforms, policies and practices could adversely affect us and, depending on the nature of such reforms, policies and practices, including the implementation of the BEPS proposals in the jurisdictions in which we operate, could have a greater impact on us than on other companies.
For economic efficiency and other reasons, we may enter into insurance policies as a group (which may include BN) that are intended to provide coverage for the entire group.
For economic efficiency and other reasons, Brookfield may enter into insurance policies as a group that are intended to provide coverage for the entire group.
Additionally, derivatives that we may use are also subject to their own unique set of risks, including counterparty risk with respect to the financial well-being of the party on the other side of these transactions and a potential requirement to fund mark-to-market adjustments.
Additionally, derivatives that we may use are also subject to their own unique set of risks, including counterparty risk with respect to the financial well-being of the party on the other side of these transactions and a potential requirement to fund mark-to-market adjustments. Our financial risk management policies may not ultimately be effective at managing these risks.
Any existing or new operations may be subject to significant political, economic and financial risks, which vary by country, and may include: (i) changes in government policies and regulations, including tariffs and other protectionist policies, or personnel; (ii) changes in general economic or social conditions; (iii) restrictions on currency transfer or convertibility; (iv) changes in labor relations; (v) military conflict, political instability and civil unrest; (vi) less developed or efficient financial markets than in North America; (vii) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements; (viii) less government supervision and regulation; (ix) a less developed legal or regulatory environment; (x) heightened exposure to corruption risk; (xi) political hostility to investments by foreign investors; (xii) less publicly available information in respect of companies in non-North American markets; (xiii) adversely higher or lower rates of inflation; (xiv) higher transaction costs; (xv) difficulty in enforcing contractual obligations and expropriation or confiscation of assets; and (xvi) fewer investor protections. 31 Unforeseen political events in markets where we have significant investors and/or where we have managed assets or may look to for further growth of our assets and businesses, such as the North American, South American, Australian, European, Middle Eastern and Asian markets, may create economic uncertainty that has a negative impact on our financial performance.
Any existing or new operations may be subject to significant political, economic and financial risks, which vary by country, and may include: (i) changes in government policies and regulations, including tariffs and other protectionist policies, or personnel; (ii) changes in general economic or social conditions; (iii) restrictions on currency transfer or convertibility; (iv) changes in labor relations; (v) military conflict, political instability and civil unrest; (vi) less developed or efficient financial markets than in North America; (vii) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements; (viii) less government supervision and regulation; (ix) a less developed legal or regulatory environment; (x) heightened exposure to corruption risk; (xi) political hostility to investments by foreign investors; (xii) less publicly available information in respect of companies in non-North American markets; (xiii) adversely higher or lower rates of inflation; (xiv) higher transaction costs; (xv) difficulty in enforcing contractual obligations and expropriation or confiscation of assets; and (xvi) fewer investor protections.
In certain cases, parties can pursue legal actions against us to enforce compliance as well as seek damages for non-compliance or for personal injury or property damage. Our insurance may not provide sufficient coverage in the event that a successful claim is made against us. Most of our funds rely on Rule 506 of Regulation D under the U.S.
In certain cases, parties can pursue legal actions against us to enforce compliance as well as seek damages for non-compliance or for personal injury or property damage. Our insurance may not provide sufficient coverage in the event that a successful claim is made against us.
The ownership of BN may change and the control of BAM may be transferred to a third party without shareholder approval. BN is not required to maintain any ownership level in BAM and may sell the Class A Shares to a third party without the consent of BAM shareholders.
BN is not required to maintain any ownership level in BAM and may sell the Class A Shares it owns to a third party without the consent of BAM shareholders.
If regulators disagree with the sustainability disclosures that we make, or with the categorization of our financial products, we may face regulatory enforcement action, and our business or reputation could be adversely affected. We face risks specific to our infrastructure strategies. Our infrastructure managed assets include utilities, transport, midstream and data businesses.
If regulators disagree with the sustainability disclosures that we make, or with the categorization of our financial products, we may face regulatory enforcement action, and our business or reputation could be adversely affected. We face risks specific to our private equity strategies.
Our financial risk management policies may not ultimately be effective at managing these risks. 30 The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and similar laws in other jurisdictions impose rules and regulations governing oversight of the over-the-counter derivatives market and its participants. These regulations may impose additional costs and regulatory scrutiny on us.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and similar laws in other jurisdictions impose rules and regulations governing oversight of the over-the-counter derivatives market and its participants. These regulations may impose additional costs and regulatory scrutiny on us.
While regulated and contractual arrangements in our managed assets can provide significant protection against inflationary pressures, any sustained upward trajectory in the inflation rate may still have an impact on our managed assets and our investors, and could impact our ability to source suitable investment opportunities, match or exceed prior investment strategy performance and secure attractive debt financing, all of which could adversely impact our managed assets and our growth and capital recycling initiatives. 32 Catastrophic events (or combination of events), such as earthquakes, tornadoes, floods, wildfires, pandemics/epidemics, climate change, military conflict/war or terrorism/sabotage, could adversely impact our financial performance.
While regulated and contractual arrangements in our managed assets can provide significant protection against inflationary pressures, any sustained upward trajectory in the inflation rate may still have an impact on our managed assets and our investors, and could impact our ability to source suitable investment opportunities, match or exceed prior investment strategy performance and secure attractive debt financing, all of which could adversely impact our managed assets and our growth and capital recycling initiatives.
Investment teams managing the activities of businesses that operate on opposite sides of an information barrier are not expected to be aware of, and will not have the need or ability to manage, such conflicts which may impact the investment strategy, performance and investment returns of certain businesses within our asset management strategies.
Investment teams managing the activities of businesses that operate on opposite sides of an information barrier are not expected to be aware of, and will not have the need or ability to manage, such conflicts which may impact the investment strategy, performance and investment returns of certain businesses within our asset management strategies. 41 The investment professionals that operate on opposite sides of an information barrier are likely to be deemed affiliates for purposes of certain laws and regulations notwithstanding that they may be operationally independent from one another.
Risks Relating to our Organizational and Ownership Structure BN will exercise substantial influence over BAM. After giving effect to the 2025 Arrangement, BN owns approximately 73% of the Class A Shares.
Risks Relating to our Organizational and Ownership Structure BN exercises substantial influence over BAM. BN owns approximately 73% of the Class A Shares.
Holder that owns Class A Shares could be subject to adverse tax consequences, including a greater tax liability than might otherwise apply, an interest charge on certain taxes deemed deferred as a result of BAM’s non-U.S. status and additional U.S. tax reporting obligations.
If BAM is classified as a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes, a U.S. taxpayer that owns Class A Shares could be subject to adverse tax consequences, including a greater tax liability than might otherwise apply, an interest charge on certain taxes deemed deferred as a result of BAM’s non-U.S. status, and additional U.S. tax reporting obligations.
Department of Treasury, and implementing them may disrupt our business or cause us to incur significantly more costs to comply with those laws.
Department of Treasury, and implementing them may disrupt our business or cause us to incur significantly more costs to comply with those laws. Different laws may also contain conflicting provisions, making compliance with all laws more difficult.
Our revenue, net income and cash flow, substantially all of which is derived from our asset management business, can vary materially due to our reliance on incentive distributions and performance-based returns, such as carried interest.
Our revenue, net income and cash flow can vary materially due to our reliance on incentive distributions and performance-based returns, such as carried interest.
A change to the relevant classification may require further actions to be taken, for example it may require further disclosures, or it may require new processes to be set up to capture data, which may lead to additional cost, disclosure obligations or other implications or restrictions. 33 The transition to a lower-carbon economy has the potential to be disruptive to traditional business models and investment strategies.
A change to the relevant classification may require further actions to be taken, for example, it may require further disclosures, or it may require new processes to be set up to capture data, which may lead to additional cost, disclosure obligations or other implications or restrictions.
Our failure to achieve and maintain effective internal controls could have a materially adverse effect on our business, our ability to access capital markets and our reputation.
Our failure to achieve and maintain effective internal controls could have a materially adverse effect on our business, our ability to access capital markets and our reputation. In addition, material weaknesses in our internal controls could require significant expense and management time to remediate.
For information regarding conflicts of interests between the businesses within our asset management operations that operate on opposite sides of an information barrier, see “—Information barriers may give rise to certain conflicts and risks and investment teams managing the activities of businesses that operate on opposite sides of an information barrier will not be aware of, and will not have the ability to manage, such conflicts and risks” herein. 37 Our reputation could also be negatively impacted if there is misconduct or alleged misconduct by our personnel or those of our managed assets, including historical misconduct prior to the investment in such managed asset.
For information regarding conflicts of interests between the businesses within our asset management operations that operate on opposite sides of an information barrier, see “—Information barriers may give rise to certain conflicts and risks and investment teams managing the activities of businesses that operate on opposite sides of an information barrier will not be aware of, and will not have the ability to manage, such conflicts and risks” herein.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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The CISO provides periodic reports to the Audit Committee, which subsequently reports to the Board about data protection and cybersecurity risks and issues. The CISO has over 20 years’ experience in cybersecurity oversight, holds a Bachelor's Degree in Computer Science and Economics from York University and holds a number of information security certifications, including: CISSP, CISM, CISA and CRISC.
The CISO provides periodic reports to the Audit Committee, which subsequently reports to the Board about data protection and cybersecurity risks and issues. The CISO has over 20 years’ experience in cybersecurity oversight, holds a Bachelor's Degree in Computer Science and Economics from York University and holds a number of information security certifications, including: CISSP, CISM and CISA.
We believe our cybersecurity program is reasonably designed to materially protect the integrity and availability of our information and technology. This program addresses security governance, security awareness, employee training, relevant access and end-point security, vulnerability management, penetration testing, security monitoring and incident response.
We believe our cybersecurity program is reasonably designed to materially protect the integrity and availability of our information and technology. This program addresses information security governance, employee security and data privacy awareness and training, relevant access and end-point security, vulnerability management, penetration testing, security monitoring and incident response, and recovery from operational disruption.
ITEM 1C. CYBERSECURITY Cybersecurity Governance Cybersecurity at our company is overseen by our Board, the Audit Committee and management, as well as through our Enterprise Information Security Policy (“EISP”).
ITEM 1C. CYBERSECURITY Cybersecurity Governance Cybersecurity at our company is overseen by our Board, the Audit Committee and management, and such oversight is also carried out through our Enterprise Information Security Policy (“EISP”).
Employees in higher-risk functions receive additional training and cybersecurity awareness education. Audits, cybersecurity simulations and employee testing results indicate that our program is effective in protecting our information. The effectiveness of these programs is evaluated regularly through both internal and third-party audits.
Audits, cybersecurity simulations and employee testing results indicate that our program is effective in protecting our information. The effectiveness of these programs is evaluated regularly through both internal and third-party audits.
We use technologies to optimize our security risk detection and response capabilities, in addition to access controls and anti-malware protections. We believe our practices align with the NIST Cybersecurity Framework in meeting and exceeding the industry average in cybersecurity practice. In addition, all employees regularly undergo mandatory continuing cybersecurity training.
We use technologies to optimize our security risk detection and response capabilities, in addition to access controls and anti-malware protections. Data protection technology is deployed and monitored. We believe our practices align with the NIST Cybersecurity Framework in meeting and exceeding the industry average in cybersecurity practice.
For example, all third-party access must be authorized and have a legitimate business need. Prior to authorization and granting access, the terms and conditions of such access must be agreed to as part of a formal agreement or contract. In addition, all authorized third-party access must be limited, monitored and controlled as appropriate.
Prior to authorization and granting access, the terms and conditions of such access must be agreed to as part of a formal agreement or contract. In addition, all authorized third-party access must be limited, monitored and controlled as appropriate. In addition, all employees regularly undergo mandatory continuing cybersecurity training. Employees in higher-risk functions receive additional training and cybersecurity awareness education.
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In 2024, we undertook the following initiatives: further enhanced our data protection and threat-intelligence capabilities; improved our processes for third-party risk management; continued mandatory cybersecurity education for all employees; and incorporated social engineering to our phishing simulations. When we engage third parties, we have policies and processes to govern their access and reduce the risks associated with their access.
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When we engage third parties, we have policies and processes to assess and govern their access and services, and manage the related risks affecting Brookfield's information and technology. For example, all third-party access must be authorized and have a legitimate business need.
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In 2025, we undertook the following initiatives: completed a complex network transition to Secure Access Service Edge (SASE) network technology with enhanced zero-trust based security implemented globally; further enhanced our vulnerability management and attack surface reduction capabilities; continued improving our data protection by implementing ransomware protected backup technology; continued mandatory cybersecurity education and increasingly difficult phishing simulations for all employees.

Item 2. Properties

Properties — owned and leased real estate

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ITEM 2. PROPERTIES Our principal executive office is located at Brookfield Place, 250 Vesey Street, 15th Floor, New York, NY. We also lease space for our other offices in North America, South America, Europe, Middle East, and Asia-Pacific. We consider these facilities to be suitable and adequate for the management and operations of our business. 49
ITEM 2. PROPERTIES Our principal executive office is located at Brookfield, 225 Liberty Street, 8th Floor, New York, NY. We also lease space for our other offices in North America, South America, Europe, Middle East, and Asia-Pacific. We consider these facilities to be suitable and adequate for the management and operations of our business.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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ITEM 3. LEGAL PROCEEDINGS For a discussion of BAM's legal proceedings, see the section entitled “Litigation” appearing in Note 8 and 18, respectively, “Commitments and Contingencies” in BAM's and the Asset Management Company's financial statements included elsewhere in this report, which is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 50 PART II
ITEM 3. LEGAL PROCEEDINGS For a discussion of BAM's legal proceedings, see the section entitled “Litigation” appearing in Note 21, “Commitments and Contingencies” in BAM's consolidated financial statements included elsewhere in this report, which is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 45 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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The timing, manner, price and amount of any Class A Share repurchases will be determined by BAM in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. The current repurchase program expires on January 12, 2026 or until the maximum approved number of shares has been purchased.
The timing, manner, price and amount of any Class A Share repurchases will be determined by BAM in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. The current repurchase program expires on January 12, 2027 or until the maximum approved number of shares has been purchased.
Resident Holder who is a resident of the United States for purposes of the Treaty, beneficially owns the dividend and is fully entitled to the benefits of the Treaty, will generally be reduced to 15% (or 5% in certain cases where such U.S. Resident Holder is a corporation that beneficially owns at least 10% of BAM’s voting shares).
Resident Holder who is a resident of the U.S. for purposes of the Treaty, beneficially owns the dividend and is fully entitled to the benefits of the Treaty, will generally be reduced to 15% (or 5% in certain cases where such U.S. Resident Holder is a corporation that beneficially owns at least 10% of BAM’s voting shares).
Resident Holder”). Generally, the Class A Shares will be considered to be capital property to a U.S. Resident 51 Holder provided the U.S.
Resident Holder”). Generally, the Class A Shares will be considered to be capital property to a U.S. Resident Holder provided the U.S.
The following table summarizes the dividends paid per share for the periods indicated on the Class A Shares and the Class B Shares, all expressed in U.S. dollars. 2024 2023 First Quarter $ 0.38 $ 0.32 Second Quarter 0.38 0.32 Third Quarter 0.38 0.32 Fourth Quarter 0.38 0.32 $ 1.52 $ 1.28 Exchange and Foreign Ownership Controls We are not aware of any Canadian federal or provincial laws, decrees, or regulations that restrict the export or import of capital, including foreign exchange controls, or that affect the remittance of dividends, interest, or other payments to non-Canadian holders of the Class A Shares.
The following table summarizes the dividends paid per share for the periods indicated on the Class A Shares and the Class B Shares, all expressed in U.S. dollars. 2025 2024 First Quarter $ 0.4375 $ 0.38 Second Quarter 0.4375 0.38 Third Quarter 0.4375 0.38 Fourth Quarter 0.4375 0.38 $ 1.75 $ 1.52 Exchange and Foreign Ownership Controls We are not aware of any Canadian federal or provincial laws, decrees, or regulations that restrict the export or import of capital, including foreign exchange controls, or that affect the remittance of dividends, interest, or other payments to non-Canadian holders of the Class A Shares.
Residents The following is a summary of the principal Canadian federal income tax considerations generally applicable under the Income Tax Act (Canada) (together with the regulations thereto, the “Tax Act”) to a beneficial holder of Class A Shares who, for the purposes of the Tax Act and the Canada-United States Income Tax Convention (1980) (the “Treaty”), and at all relevant times, (i) is not and is not deemed to be a resident in Canada, (ii) is a resident of the United States for the purposes of the Treaty and is entitled to the full benefits thereunder, (iii) holds all Class A Shares as capital property, (iv) deals at arm’s length with and is not affiliated with BAM, and (v) does not use or hold and is not deemed to use or hold Class A Shares in connection with a business carried on in Canada (each such holder, a “U.S.
Residents The following is a summary of the principal Canadian federal income tax considerations generally applicable under the Income Tax Act (Canada) (together with the regulations thereto, the “Tax Act”) to a beneficial holder of Class A Shares who, for the purposes of the Tax Act and the Canada-United States Income Tax Convention (1980) (the “Treaty”), and at all relevant times, (i) is not and is not deemed to be a resident in Canada, (ii) is a resident of the U.S. for the purposes of the Treaty and is entitled to the full benefits thereunder, (iii) holds all Class A Shares as capital property, (iv) deals at arm’s length with and is not affiliated with BAM, (v) does not use or hold and is not deemed to use or hold Class A Shares in connection with a business carried on in Canada, (vi) is not an insurer carrying on an insurance business in Canada and elsewhere, and (vii) is not an “authorized foreign bank” (as defined in the Tax Act) (each such holder, a “U.S.
The DRIP is currently not available for registered shareholders of our Class A Shares who are resident in the United States.
The DRIP is currently not available for registered shareholders of our Class A Shares who are resident in the U.S.
Resident Holder does not hold such shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade. This summary is not generally applicable to a U.S.
Resident Holder does not hold such shares in the course of carrying on a business of trading or 46 dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade.
Additionally, such dividends will be generally exempt from Canadian withholding tax for a U.S. Resident Holder who is fully entitled to the benefits of the Treaty, is generally exempt from income taxation in the United States, and is operated exclusively to administer or provide pension, retirement or employee benefits. U.S.
Additionally, such dividends will be generally exempt from Canadian withholding tax for a U.S. Resident Holder who is fully entitled to the benefits of the Treaty, is generally exempt from income taxation in the U.S., and is operated exclusively to administer or provide pension, retirement or employee benefits. U.S. Resident Holders should consult their own tax advisors in this regard.
Resident Holders should consult their own tax advisors in this regard. Disposition of Class A Shares A U.S. Resident Holder will not be subject to tax under the Tax Act on any capital gain realized on a disposition or deemed disposition of a Class A Share, unless the Class A Share constitutes taxable Canadian property of the U.S.
Disposition of Class A Shares A U.S. Resident Holder will not be subject to tax under the Tax Act on any capital gain realized on a disposition or deemed disposition of a Class A Share, unless the Class A Share constitutes taxable Canadian property of the U.S.
Dividends will be variable and will change in line with the growth of Distributable Earnings. Registered holders of our Class A Shares who are resident in Canada have the opportunity to acquire additional Class A Shares by reinvesting all or a portion of their cash dividend without paying commissions through our Dividend Reinvestment Plan (the “DRIP”).
Registered holders of our Class A Shares who are resident in Canada have the opportunity to acquire additional Class A Shares by reinvesting all or a portion of their cash dividend without paying commissions through our Dividend Reinvestment Plan (the “DRIP”).
Under BAM's current share repurchase program, 37,123,295 Class A Shares can be repurchased and as at March 7, 2025, there were 36,012,752 Class A Shares remaining for further repurchases. Under our current repurchase program, BAM is authorized to repurchase Class A Shares from time to time in open market transactions.
Under BAM's current share repurchase program, 36,946,177 Class A Shares can be repurchased and as at February 23, 2026, there were 35,293,625 Class A Shares remaining for further repurchases. Under our current repurchase program, BAM is authorized to repurchase Class A Shares from time to time in open market transactions.
As at March 7, 2025, the following shares of BAM were issued and outstanding: 1,637,295,707 Class A Shares; 21,280 Class B Shares; and no Class A Preferred Shares. The number of holders of record of our Class A Shares as at March 7, 2025 was 7,528.
As at February 23, 2026, the following shares of BAM were issued and outstanding: 1,638,147,590 Class A Shares; 21,280 Class B Shares; and no Class A Preferred Shares. The number of holders of record of our Class A Shares as at February 23, 2026 was 7,404.
Issuer Purchases of Class A Shares (amounts in millions, except share and per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2024 to October 31, 2024 — $ — — 34,605,494 November 1, 2024 to November 30, 2024 — $ — — 34,605,494 December 1, 2024 to December 31, 2024 — $ — — 34,605,494 Total through December 31, 2024 — $ — — 34,605,494 ITEM 6. [RESERVED] 53
Issuer Purchases of Class A Shares 1 (amounts in millions, except share and per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2025 to October 31, 2025 1,378,200 $ 55.84 1,378,200 33,465,152 November 1, 2025 to November 30, 2025 2 2,327,118 $ 51.62 2,427,118 31,038,034 December 1, 2025 to December 31, 2025 463,300 $ 52.62 463,300 30,574,734 Total through December 31, 2025 4,168,618 $ 53.13 4,268,618 30,574,734 1.
Pursuant to the 2025 Arrangement, a total of 1,194,021,145 Class A Shares were issued to BN and certain of its subsidiaries pursuant to an exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended.
Unregistered Sales of Equity Securities Pursuant to the 2025 Arrangement, a total of 1,194,021,145 Class A Shares were issued to BN and certain of its subsidiaries pursuant to an exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. 47 Share Repurchases in the Fourth Quarter of 2025 As at December 31, 2025, there were 30,574,734 Class A Shares remaining for further repurchases under BAM's former share repurchase program, which expired on January 12, 2026.
Such U.S. Resident Holders should consult their own tax advisors. This summary is based on the provisions of the Tax Act and the Treaty in force on the date hereof, and the current administrative policies and assessing practices of the CRA published in writing prior to the date hereof.
This summary is based on the provisions of the Tax Act and the Treaty in force on the date hereof, all proposals to amend the Tax Act publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the “Tax Proposals”), and the current administrative policies and assessing practices of the CRA published in writing prior to the date hereof.
We intend to pay out approximately 90% of our Distributable Earnings to shareholders quarterly and reinvest the balance back into the business. Our asset management business intends to pay dividends to BAM on a quarterly basis sufficient to ensure that BAM can pay its intended dividend.
We intend to pay out at least approximately 90% of our Distributable Earnings to shareholders quarterly and reinvest the balance back into the business. Dividends will be variable and will change in line with the growth of Distributable Earnings.
Removed
Resident Holder: (i) that is an insurer carrying on an insurance business in Canada and elsewhere, (ii) that is an “authorized foreign bank” (as defined in the Tax Act), (iii) that is a “financial institution” (as defined in the Tax Act) for purposes of the “mark-to-market property” rules; (iv) an interest in which is or would constitute a “tax shelter investment” (as defined in the Tax Act); (v) that is a “specified financial institution” (as defined in the Tax Act); or (vi) that has or will enter into a “synthetic disposition arrangement” or a “derivative forward agreement” (as those terms are defined in the Tax Act) in respect of Class A Shares.
Added
This summary assumes that all Tax Proposals will be enacted in the form proposed, but no assurance can be given that the Tax Proposals will be enacted in the form proposed or at all.
Removed
Unregistered Sales of Equity Securities On October 31, 2024, BAM and BN entered into an arrangement agreement with respect to the 2025 Arrangement, whereby on February 4, 2025, BAM acquired approximately 73% of the outstanding common shares of the Asset Management Company, from BN and certain of its subsidiaries.
Added
Includes repurchases of Class A Shares on the NYSE, unless otherwise indicated. 2. An additional 100,000 Class A Shares were repurchased on the TSX at an average price of C$73.82 per share.
Removed
Prior to the 2025 Arrangement, BAM owned an approximate 27% interest in the Asset Management Company and BN owned an approximate 73% interest in the Asset Management Company.
Removed
As part of the 2025 Arrangement, BAM 52 issued Class A Shares to BN in exchange for all of the common shares of the Asset Management Company currently owned by BN and its subsidiaries on a one-for-one basis.
Removed
Upon completion of the 2025 Arrangement, BAM owns, directly and indirectly, 100% of the common shares of the Asset Management Company and BN owns approximately 73% of the outstanding Class A Shares.
Removed
Share Repurchases in the Fourth Quarter of 2024 As at December 31, 2024, there were 34,605,494 Class A Shares remaining for further repurchases under BAM's former share repurchase program, which expired on January 10, 2025.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

159 edited+105 added−162 removed18 unchanged
This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our asset management business, including for performance measurement, capital allocation and valuation purposes. BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our asset management business.
GAAP. This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our asset management business, including for performance measurement, capital allocation and valuation purposes. BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our asset management business.
Off-Balance Sheet Arrangements BAM may from time to time enter into guarantees given in respect of co-investments in which there is carried interest. The amount guaranteed is up to the carry amount paid to the General Partner, net of taxes. No known amounts are currently due or owed under these guarantees.
Off-Balance Sheet Arrangements BAM may from time to time enter into guarantees given in respect of co-investments in which there is carried interest. The amount guaranteed is up to the carried interest amount paid to the General Partner, net of taxes. No known amounts are currently due or owed under these guarantees.
As the net carried interest generated on mature funds is all attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.
As the net carried interest generated on mature funds is attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.
See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee-Related Earnings. Distributable Earnings BAM intends to pay out approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business.
See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee-Related Earnings. Distributable Earnings BAM intends to pay out at least approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business.
Incentive distribution rights are performance fees earned from BIP and BEP for exceeding predetermined distribution thresholds, are long-term, and are not subject to clawback.
Incentive fees are performance fees earned from BIP and BEP for exceeding predetermined distribution thresholds, are long-term, and are not subject to clawback.
Incentive distributions from BEP increased by $17 million, due to a 5% increase in distributions compared to the prior year.
In addition, incentive distributions from BEP increased by $17 million due to a 5% increase in distributions compared to the prior year.
Supplemental Financial Measures Utilized by Our Asset Management Business Assets Under Management AUM refers to the total fair value of assets managed, calculated as follows: • Investments that Brookfield, which includes BN, the asset management business, or their affiliates, either: ◦ Consolidates for accounting purposes (generally, investments in respect of which Brookfield has a significant economic interest and unilaterally directs day-to-day operating, investing and financing activities), or ◦ Does not consolidate for accounting purposes but over which Brookfield has significant influence by virtue of one or more attributes (e.g., being the largest investor in the investment, having the largest representation on the investment’s 69 governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes), ◦ Are calculated at 100% of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis, even if Brookfield does not own 100% of the investment, with the exception of investments held through our perpetual funds, which are calculated at its proportionate economic share of the investment’s net asset value. • All other investments are calculated at Brookfield’s proportionate economic share of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis.
Supplemental Financial Measures Utilized by BAM Assets Under Management AUM refers to the total fair value of assets managed, calculated as follows: • Investments that Brookfield, which includes BAM, BN, or their affiliates, either: ◦ Consolidates for accounting purposes (generally, investments in respect of which Brookfield has a significant economic interest and unilaterally directs day-to-day operating, investing and financing activities), or ◦ Does not consolidate for accounting purposes but over which Brookfield has significant influence by virtue of one or more attributes (e.g., being the largest investor in the investment, having the largest representation on the investment’s governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes), 59 ◦ Are calculated at 100% of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis, even if Brookfield does not own 100% of the investment, with the exception of investments held through our perpetual funds, which are calculated at its proportionate economic share of the investment’s NAV. • All other investments are calculated at Brookfield’s proportionate economic share of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis.
The Company established a $750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders. The facility is available in U.S. and Canadian dollars, where U.S. dollar draws are subject to the U.S.
BAM established a $750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders. The facility is available in U.S. and Canadian dollars, where U.S. dollar draws are subject to the U.S.
When reconciling period amounts, we utilize the following definitions: • Inflows include capital commitments and contributions to our private and liquid strategies funds, and equity issuances from the permanent capital vehicles. • Outflows represent distributions and redemptions of capital from within the liquid strategies capital. • Distributions represent quarterly distributions from the permanent capital vehicles as well as returns of committed capital (excluding market valuation adjustments), redemptions and expiry of uncalled commitments within our private funds. • Market valuation includes gains (losses) on portfolio investments, the permanent capital vehicles and liquid strategies based on market prices. • Other includes changes in net non-recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments.
When reconciling period amounts, we utilize the following definitions: • Inflows include capital commitments and contributions to our private and liquid strategies funds, and capital issuances in our perpetual affiliates. • Outflows represent distributions and redemptions of capital from liquid and perpetual capital. • Distributions represent quarterly distributions from perpetual affiliates as well as returns of committed capital (excluding market valuation adjustments), redemptions and expiry of uncalled commitments within our private funds. • Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices. • Other includes changes in net non-recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments.
Both BEP and BIP have a long-standing track record of growing distributions annually within their target range of 5-9%. • Performance fees from BBU are based on unit price performance above a prescribed high-water mark price, which are not subject to clawback, as well as carried interest on our perpetual private funds.
Both BEP and BIP have a long-standing track record of growing distributions annually within their target range of 5-9%. 61 • Performance fees from BBU are based on unit price performance above a prescribed high watermark price, which are not subject to clawback, as well as carried interest on our perpetual private funds.
Due from Affiliates Due from affiliates of $2.5 billion primarily relates to management fees earned but not collected from our managed funds, receivables for expenses paid on behalf of certain of our funds, as well as reimbursements due from BN for long-term compensation awards.
Due from Affiliates Due from affiliates of $3.3 billion primarily relates to management fees earned but not collected from our managed funds, receivables for expenses paid on behalf of certain of our funds, as well as reimbursements due from BN for long-term compensation awards.
Liquid Strategies As of December 31, 2024, we managed approximately $68 billion of Fee-Bearing Capital across our liquid strategies, which included capital that we manage on behalf of our publicly listed funds and separately managed accounts, with a focus on fixed income and equity securities across real estate, infrastructure, and natural resources.
Liquid Strategies As of December 31, 2025, we managed approximately $77 billion of Fee-Bearing Capital across our liquid strategies, which included capital that we manage on behalf of our publicly listed funds and separately managed accounts, with a focus on fixed income and equity securities across real estate, infrastructure, and natural resources.
Uncalled Fund Commitments Total Uncalled Fund Commitments includes capital callable from fund investors, including funds outside of their investment period, for which capital is callable for follow-on investments. 70 Fee-Bearing Capital Diversification AS AT DEC 31 (BILLIONS) Long-term Private Funds As of December 31, 2024, we managed approximately $262 billion of Fee-Bearing Capital across a diverse range of long-term private funds that target opportunistic (20%+, gross), value-add (15%-16%, gross), core and core plus (9%-13%, gross) returns.
Uncalled Fund Commitments Total Uncalled Fund Commitments includes capital callable from fund investors, including funds outside of their investment period, for which capital is callable for follow-on investments. 60 Fee-Bearing Capital Diversification AS AT DEC 31 (BILLIONS) Long-term Private Funds As of December 31, 2025, we managed approximately $285 billion of Fee-Bearing Capital across a diverse range of long-term private funds that target opportunistic (20%+, gross), value-add (15%-16%, gross), core and core plus (9%-13%, gross) returns.
On these products, we earn: • Long-term perpetual base management fees, which are based on the market capitalization or net asset value of our permanent capital vehicles and on the net asset value of our perpetual private funds. 71 • Stable incentive distribution fees from BEP and BIP, which are linked to the growth in cash distributions paid to investors above a predetermined hurdle.
On these products, we earn: • Long-term perpetual base management fees, which are based on the market capitalization or NAV of our permanent capital vehicles and on the NAV of our perpetual private funds. • Stable incentive distribution fees from BEP and BIP, which are linked to the growth in cash distributions paid to investors above a predetermined hurdle.
Fee-Bearing Capital Fee-Bearing Capital represents the capital committed, pledged, or invested in our permanent capital vehicles, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues. Fee-Bearing Capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts.
Fee-Bearing Capital Fee-Bearing Capital represents the capital committed, pledged, or invested in our perpetual affiliates, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues. Fee-Bearing Capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts.
Contractual Obligations On January 31, 2019, a subsidiary of the Company committed $2.8 billion to BSREP III, of which $2.1 billion has been funded as at December 31, 2024 (December 31, 2023 – $2.1 billion). The remainder of the commitment will be funded by BN.
Contractual Obligations On January 31, 2019, a subsidiary of BAM committed $2.8 billion to BSREP III, of which $2.2 billion has been funded as at December 31, 2025 (December 31, 2024 – $2.1 billion). The remainder of the commitment will be funded by BN.
The fair value of the investments held by the asset management business's funds is the primary input to the calculation of certain of our management fees, incentive fees, performance fees and the related compensation we recognize.
The fair value of the investments held by BAM's funds is the primary input to the calculation of certain of our management fees, incentive fees, performance fees and the related compensation we recognize.
These non-GAAP financial measures should not be considered as the sole measure of BAM’s or our asset management business’ performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S. GAAP financial measures.
These non-GAAP financial measures should not be considered as the sole measure of BAM’s performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S. GAAP financial measures.
Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments. Fair Value The asset management business uses fair value throughout the reporting process.
Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments. Fair Value BAM uses fair value throughout the reporting process.
Incentive distributions increased by $43 million or 13% as a result of an increase in BEP and BIP's quarterly dividend over the prior year of 5% and 6%, respectively.
Incentive distributions increased by $42 million or 10% as a result of an increase in BEP and BIP's quarterly dividend over the prior year of 5% and 6%, respectively.
These fees include base management fees, incentive distribution rights, and certain advisory fees. Base management fees are long-term, recurring in nature, and correspond to fundraising activity, net asset values of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBU.
These fees include base management fees, incentive fees, and certain advisory fees. Base management fees are long-term, recurring in nature, and correspond to fundraising activity, NAVs of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBU.
In the normal course of business, the Company enters into contractual obligations which include commitments to provide bridge financing and other equity commitments. As at December 31, 2024, the Company had $3.3 billion of such commitments outstanding (2023 – $ 2.1 billion).
In the normal course of business, BAM enters into contractual obligations which include commitments to provide bridge financing and other equity commitments. As at December 31, 2025, the Company had $6.6 billion of such commitments outstanding (2024 – $3.3 billion).
GAAP requires management to make estimates that affect the amounts reported. Management believes that estimates utilized in the preparation of the consolidated financial statements are presented fairly, in all material respects. Such estimates include those used in the valuation of investments and the measurement of deferred tax balances (including valuation allowances) and the determination of control or significant influence.
Management believes that estimates utilized in the preparation of the consolidated financial statements are presented fairly, in all material respects. Such estimates include those used in the valuation of investments and the measurement of deferred tax balances (including valuation allowances) and the determination of control or significant influence.
(b) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings. (c) These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense. Unrealized carried interest allocations and associated compensation expense are non-cash in nature.
(b) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings as well as certain capital depreciation costs recharged from BAM's affiliates. (c) These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense.
Carried interest allocations generated by new funds are 66.7% attributable to the asset management business and 33.3% to BN. Within the Consolidated and Combined Statements of Operations, carry interest allocations are presented on a 100% basis and the portion attributable to BN is presented in Net Income Attributable to Non-Controlling Interest.
Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities.
GAAP to Non-GAAP Measures” for our reconciliation of Fee Revenues. Fee-Related Earnings Fee-Related Earnings is used to provide additional insight into the operating profitability of our asset management activities. Fee-Related Earnings are recurring in nature and not based on future realization events.
Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee Revenues. Fee-Related Earnings Fee-Related Earnings is used to provide additional insight into the operating profitability of our asset management activities. Fee-Related Earnings are recurring in nature and not based on future realization events.
Capital Requirements Certain U.S. and non-U.S. entities of BAM are subject to various investment advisor and other financial regulatory rules and requirements that may include minimum net capital requirements. These requirements have been met for the year ended December 31, 2024.
Capital Requirements Certain U.S. and non-U.S. entities of BAM are subject to various investment advisor and other financial regulatory rules and requirements that may include minimum net capital requirements. See "Part I—Item 1. Business—Regulatory Matters". These requirements have been met for the year ended December 31, 2025.
Share of Income from Equity Method Investments Our share of income from equity method investments was $339 million compared to $167 million in the prior year, or an increase of $172 million.
Share of Income from Equity Method Investments Our share of income from equity method investments was $402 million compared to $339 million in the prior year, an increase of $63 million.
Once invested, we expect these commitments will earn approximately $530 million of additional Fee Revenues. Capital Resources Clawback Obligations Performance allocations are subject to clawback to the extent that the performance allocations received to date with respect to a fund exceeding the amount due to our asset management business based on cumulative results of that fund.
Once invested, we expect these commitments will earn approximately $630 million of additional Fee Revenues. 80 Capital Resources Clawback Obligations Performance allocations are subject to clawback to the extent that the performance allocations received to date with respect to a fund exceed the amount due to BAM based on cumulative results of that fund.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2024 2023 2022 Long-term private funds $ 37,123 $ 33,249 $ 31,500 Permanent capital and perpetual strategies 8,067 5,600 7,816 Total Fee-Bearing Capital $ 45,190 $ 38,849 $ 39,316 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Balance, beginning $ 38,849 $ 39,316 $ 34,382 Inflows 3,714 4,424 9,135 Outflows — — — Distributions (1,302) (1,201) (808) Market valuation 1,610 (816) (2,546) Other 2,319 (2,874) (847) Change 6,341 (467) 4,934 Balance, ending $ 45,190 $ 38,849 $ 39,316 For the year ended December 31, 2024 During the year ended December 31, 2024, Fee-Bearing Capital increased by $6.3 billion or 16% to $45 billion.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 38,859 $ 37,123 $ 33,249 Permanent capital and perpetual strategies 9,147 8,067 5,600 Total Fee-Bearing Capital $ 48,006 $ 45,190 $ 38,849 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 45,190 $ 38,849 $ 39,316 Inflows 5,302 3,714 4,424 Outflows — — — Distributions (1,116) (1,302) (1,201) Market valuation 2,004 1,610 (816) Other (3,374) 2,319 (2,874) Change 2,816 6,341 (467) Balance, ending $ 48,006 $ 45,190 $ 38,849 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $2.8 billion or 6% to $48 billion.
Related Party Transactions BAM and our asset management business entered into a number of related party transactions with BN and other affiliates.
Related Party Transactions BAM entered into a number of related party transactions with BN and other affiliates.
Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively. Expenses Total expenses for the year ended December 31, 2024 were $1.7 billion, an increase of $134 million or 9% compared to the year ended December 31, 2023.
Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively. Other revenues were $535 million for the year ended December 31, 2025, an increase of $95 million compared to the year ended December 31, 2024.
Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized. (d) This adjustment removes other income and expenses associated with fair value changes. (e) This adjustment removes interest and charges paid or received from related party loans. (f) This adjustment adds back other revenues earned that are non-cash in nature.
Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized. (d) This adjustment removes other income and expenses associated with fair value changes for consolidated entities and funds. (e) This adjustment removes interest and charges paid or received by consolidated entities and funds. (f) This adjustment removes other revenues earned that are non-cash in nature.
Control is obtained when BAM has the power to direct the relevant investing, financing and operating decisions of an entity and does so in its capacity as principal of the operations, rather than as an agent for other investors.
This may include the ability to elect investee directors or appoint management. Control is obtained when BAM has the power to direct the relevant investing, financing and operating decisions of an entity and does so in its capacity as principal of the operations, rather than as an agent for other investors.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) ■ Long-term Private Funds ■ Perpetual Strategies ■ Liquid Strategies ■ Long-term Private Funds ■ Perpetual Strategies ■ Liquid Strategies The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Equity Method Investments Investments in which BAM is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. BAM has significant influence over the Asset Management Company and therefore accounts for its investment under the equity method.
Equity Method Investments Investments in which BAM is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. BAM has significant influence over our partner managers and therefore accounts for these investments under the equity method.
These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers. The asset management business includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business. See “Reconciliation of U.S. GAAP to Non-GAAP Measures”, in this report.
These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers. The financial results of BAM includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business. See “Part II—Item 7.
Base Management and Advisory Fees Base management and advisory fees for the year ended December 31, 2024 were $3.0 billion, which represents an increase of $191 million or 7% compared to the year ended December 31, 2023.
Base Management and Advisory Fees Base management and advisory fees for the year ended December 31, 2025 were $3.4 billion, which represents an increase of $427 million or 14% compared to the year ended December 31, 2024.
For the years ended December 31, 2024 and 2023 Operating Activities During the year ended December 31, 2024, the Asset Management Company's operating activities generated cash inflows of $1.9 billion, compared to cash inflows of $1.4 billion in the prior year.
For the years ended December 31, 2025 and 2024 Operating Activities During the year ended December 31, 2025, the Company's operating activities generated cash inflows of $2.1 billion, compared to cash inflows of $1.6 billion in the prior year.
FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Base management and advisory fees $ 2,957 $ 2,766 $ 2,500 Incentive fees (a) 424 376 335 Fee Revenues from equity method investments (b) 1,335 1,240 1,165 BSREP III Fees & other (c) (10) (1) 48 Fee Revenues $ 4,706 $ 4,381 $ 4,048 (a) This adjustment adds incentive distributions that are included in Fee Revenues.
FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Base management and advisory fees $ 3,384 $ 2,957 $ 2,766 Incentive fees (a) 561 424 376 Fee Revenues from equity method investments (b) 1,569 1,335 1,240 Other adjustments (c) (27) (10) (1) Fee Revenues $ 5,487 $ 4,706 $ 4,381 (a) This adjustment adds incentive distributions and performance fees that are included in Fee Revenues.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with BAM's consolidated financial statements and the related notes included within this Annual Report.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with BAM's consolidated financial statements and the related notes included within this Annual Report. This section of the Annual Report discusses activity as of and for the years ended December 31, 2025 and 2024.
The amounts and nature of our clawback obligations are described in Note 2 “Summary of Significant Accounting Policies” of the Consolidated and Combined Financial Statements of the Asset Management Company as at December 31, 2024, and December 31, 2023, and for the years ended December 31, 2024, December 31, 2023, and December 31, 2022.
The amounts and nature of our clawback obligations are described in Part II, Item 8, Note 2 “Summary of Significant Accounting Policies” of the consolidated financial statements of BAM as at December 31, 2025, and 2024, and for the years ended December 31, 2025, 2024, and 2023.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2024 2023 2022 Long-term private funds $ 45,738 $ 47,345 $ 40,316 Permanent capital and perpetual strategies 51,312 47,290 42,436 Total Fee-Bearing Capital $ 97,050 $ 94,635 $ 82,752 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Balance, beginning $ 94,635 $ 82,752 $ 66,219 Inflows 5,313 12,523 24,929 Outflows (11) (6) — Distributions (2,378) (2,929) (3,361) Market valuation 3,669 2,241 (5,053) Other (4,178) 54 18 Change 2,415 11,883 16,533 Balance, ending $ 97,050 $ 94,635 $ 82,752 For the year ended December 31, 2024 During the year ended December 31, 2024, Fee-Bearing Capital increased by $2.4 billion or 3% to $97 billion.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 47,950 $ 45,738 $ 47,345 Permanent capital and perpetual strategies 58,448 51,312 47,290 Total Fee-Bearing Capital $ 106,398 $ 97,050 $ 94,635 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 97,050 $ 94,635 $ 82,752 Inflows 5,888 5,313 12,523 Outflows — (11) (6) Distributions (4,395) (2,378) (2,929) Market valuation 6,083 3,669 2,241 Other 1,772 (4,178) 54 Change 9,348 2,415 11,883 Balance, ending $ 106,398 $ 97,050 $ 94,635 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $9.3 billion or 10% to $106 billion.
Fee Revenues exclude carried interest and revenues of consolidated funds, but include Fee Revenues earned by Oaktree. The most directly comparable measure of Fee Revenues disclosed in the financial statements is base management and advisory fees. See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S.
Fee Revenues include base management fees, incentive distributions, performance fees and transaction fees. Fee Revenues exclude carried interest and revenues of consolidated funds, but include Fee Revenues earned by Oaktree. The most directly comparable measure of Fee Revenues disclosed in the financial statements is base management and advisory fees. See “Part II—Item 7.
Carried Interest Allocation Compensation Compensation expenses related to carried interest allocation compensation were $93 million for the year ended December 31, 2024, which represents an increase of $7 million compared to the year ended December 31, 2023. This was primarily driven by higher relative valuation gains across certain infrastructure, renewable, and private equity funds compared to the prior year.
Carried Interest Allocation Compensation Compensation expenses related to carried interest allocation compensation was $146 million for the year ended December 31, 2025, which represents a change of $53 million compared to the year ended December 31, 2024. This was primarily driven by higher relative valuations across certain renewable, infrastructure, and private equity funds compared to the prior year.
FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Net Income $ 2,108 $ 2,137 $ 2,865 Add or subtract the following: Provision for taxes (a) 438 417 627 Depreciation and amortization (b) 14 14 13 Carried interest allocations (c) (16) (399) (490) Carried interest allocation compensation (c) 93 86 200 Other income and expenses (d) 93 129 (1,090) Interest expense paid to related parties (e) 22 14 154 Interest and dividend revenue (e) (143) (172) (258) Other revenues (f) (372) (300) (44) Share of income from equity method investments (g) (339) (167) (146) Fee-related earnings of partly owned subsidiaries at our share (g) 330 271 252 Costs recovered from affiliates (h) 218 156 — Non-recurring restructuring costs (i) — 35 — Fee Revenues from BSREP III & other (j) 10 20 25 Fee-Related Earnings $ 2,456 $ 2,241 $ 2,108 Cash taxes (k) (301) (196) (98) Equity-based compensation expense and other (l) 208 199 86 Distributable Earnings $ 2,363 $ 2,244 $ 2,096 (a) This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of our asset management business.
FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Net Income $ 2,398 $ 2,108 $ 2,137 Add or subtract the following: Provision for taxes (a) 527 438 417 Depreciation and amortization (b) 68 14 14 Carried interest allocations (c) (209) (16) (399) Carried interest allocation compensation (c) 146 93 86 Other income and expenses (d) 250 93 129 Interest expense (e) 115 22 14 Interest and dividend revenue (e) (129) (143) (172) Other revenues (f) (570) (372) (300) Share of income from equity method investments (g) (402) (339) (167) Fee-related earnings of equity method investments at our share (g) 494 330 271 Compensation costs recovered from affiliates (h) 298 218 156 Non-recurring restructuring costs (i) — — 35 Other adjustments (j) 9 10 20 Fee-Related Earnings $ 2,995 $ 2,456 $ 2,241 Investment and other income (net of interest expense) (k) 33 170 160 Equity-based compensation expense (l) 44 38 39 Cash taxes (m) (377) (301) (196) Distributable Earnings $ 2,695 $ 2,363 $ 2,244 (a) This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of BAM.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies ■ Long-term Private Funds ■ Permanent Capital Vehicles and Perpetual Strategies The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.
Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2024 2023 2022 Long-term private funds $ 34,813 $ 29,663 $ 25,902 Permanent capital and perpetual strategies 23,044 22,700 20,510 Total Fee-Bearing Capital $ 57,857 $ 52,363 $ 46,412 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Balance, beginning $ 52,363 $ 46,412 $ 47,141 Inflows 8,670 5,612 6,351 Outflows — — — Distributions (1,594) (1,442) (1,409) Market valuation (704) 1,757 (5,873) Other (878) 24 202 Change 5,494 5,951 (729) Balance, ending $ 57,857 $ 52,363 $ 46,412 77 For the year ended December 31, 2024 During the year ended December 31, 2024, Fee-Bearing Capital increased by $5.5 billion or 10% to $58 billion.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 39,068 $ 34,813 $ 29,663 Permanent capital and perpetual strategies 28,177 23,044 22,700 Total Fee-Bearing Capital $ 67,245 $ 57,857 $ 52,363 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 57,857 $ 52,363 $ 46,412 Inflows 10,394 8,670 5,612 Outflows — — — Distributions (3,453) (1,594) (1,442) Market valuation 5,495 (704) 1,757 Other (3,048) (878) 24 Change 9,388 5,494 5,951 Balance, ending $ 67,245 $ 57,857 $ 52,363 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $9.4 billion or 16% to $67 billion.
Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points.
Base Rate or SOFR plus a margin of 165 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 165 basis points. As at December 31, 2025, the facility is undrawn.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2024 2023 2022 Long-term private funds $ 69,689 $ 66,038 $ 63,832 Permanent capital and perpetual strategies 23,940 27,406 31,801 Total Fee-Bearing Capital $ 93,629 $ 93,444 $ 95,633 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Balance, beginning $ 93,444 $ 95,633 $ 76,642 Inflows 9,074 10,168 17,117 Outflows (481) (127) (343) Distributions (4,054) (4,690) (4,149) Market valuation (2,169) (2,841) 1,545 Other (2,185) (4,699) 4,821 Change 185 (2,189) 18,991 Balance, ending $ 93,629 $ 93,444 $ 95,633 81 For the year ended December 31, 2024 During the year ended December 31, 2024, Fee-Bearing Capital increased by $185 million to $94 billion.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 72,045 $ 69,689 $ 66,038 Permanent capital and perpetual strategies 29,637 23,940 27,406 Total Fee-Bearing Capital $ 101,682 $ 93,629 $ 93,444 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 93,629 $ 93,444 $ 95,633 Inflows 16,234 9,074 10,168 Outflows (242) (481) (127) Distributions (6,721) (4,054) (4,690) Market valuation (84) (2,169) (2,841) Other (1,134) (2,185) (4,699) Change 8,053 185 (2,189) Balance, ending $ 101,682 $ 93,629 $ 93,444 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $8.1 billion, or 9% to $102 billion.
These increases were partially offset by distributions paid to limited partners in our long-term private funds and to BIP and other unitholders across our permanent capital vehicles. 79 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Management and advisory fees Long-term private funds Flagship funds $ 369 $ 371 $ 274 Co-investment and other funds 6 18 20 375 389 294 Perpetual strategies BIP 1 393 401 421 Co-investment and other funds 133 99 55 526 500 476 Catch-up fees 1 37 2 Transaction and advisory fees 5 24 33 Total management and advisory fees 907 950 805 Incentive distributions 295 266 240 Total Fee Revenues $ 1,202 $ 1,216 $ 1,045 1.
These increases were partially offset by distributions of $4.4 billion paid to investors in our long-term private funds and perpetual strategies as well as BIP unitholders. 67 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds Flagship funds $ 364 $ 369 $ 371 Co-investment and other funds 1 6 18 365 375 389 Perpetual strategies BIP 1 414 393 401 Co-investment and other funds 172 133 99 586 526 500 Catch-up fees — 1 37 Transaction and advisory fees 16 5 24 Total management and advisory fees 967 907 950 Incentive distributions 2 320 295 266 Total Fee Revenues $ 1,287 $ 1,202 $ 1,216 1.
U.S. dollar draws from the $750 million facility are subject to the U.S. Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points. As at December 31, 2024 both the $300 million and the $750 million facilities are undrawn.
Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points. During the year ended December 31, 2025, BAM increased the facility from $750 million to $1.1 billion. As at December 31, 2025, the facility is undrawn.
Compensation and Benefits Compensation and benefits for the year ended December 31, 2024 were $1.2 billion, which represents an increase of $106 million compared to the year ended December 31, 2023.
Expenses Total expenses for the year ended December 31, 2025 were $2.0 billion, an increase of $364 million or 22% compared to the year ended December 31, 2024. Compensation and Benefits Compensation and benefits for the year ended December 31, 2025 was $1.4 billion, which represents an increase of $219 million compared to the year ended December 31, 2024.
The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $7 million during the year. Other Expenses, net Other expenses, net for the year ended December 31, 2024 were an expense of $93 million compared to $129 million in the prior year.
The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $53 million during the year. Interest Expense Interest expense for year ended December 31, 2025 was $87 million, which represents an increase of $65 million compared to the year ended December 31, 2024.
Non-Controlling Interest Non-controlling interest was $336 million as at December 31, 2024, an increase of $163 million compared to $173 million as at December 31, 2023.
Non-Controlling Interest in Consolidated Entities Non-controlling interest in consolidated entities was $773 million as at December 31, 2025, an increase of $437 million compared to $336 million as at December 31, 2024.
Net Loss Attributable to Preferred Share Redeemable Non-Controlling Interest The asset management business recognizes carried interest income and associated carried interest allocation expense on mature funds within our Consolidated and Combined Statements of Operations on a gross basis.
The increase in income tax expense was predominantly driven by the impairment of deferred tax assets during the year. Net Loss Attributable to Preferred Share Redeemable Non-Controlling Interest BAM recognizes carried interest income and associated carried interest allocation expense on mature funds within our consolidated statements of operations on a gross basis.
For the year ended December 31, 2023 Fee Revenues increased by $19 million, or 3% for the year ended December 31, 2023 relative to the year ended December 31, 2022.
For the year ended December 31, 2025 Fee Revenues increased by $85 million or 7% for the year ended December 31, 2025 relative to the year ended December 31, 2024.
In making these judgments, BAM considers the ability of other investors to remove BAM as a manager or general partner in a controlled partnership.
In making these judgments, BAM considers the ability of other investors to remove BAM as a manager or general partner in a controlled partnership. Carried Interest Allocations - Unrealized The change in the fair value of investments is a significant input into carried interest allocations - unrealized.
(b) This adjustment adds management fees at 100% ownership. (c) This adjustment involves base management fees earned from BSREP III and other funds that are eliminated upon consolidation. 88 Fee Revenues by Geography The majority of our revenues are earned in the U.S. The following tables set out Fee Revenues disaggregated by investment strategy and geography.
(b) This adjustment adds Oaktree management fees at 100% ownership and our proportionate share of earnings from other partner managers excluding Oaktree. (c) This adjustment involves base management fees earned from funds that are eliminated upon consolidation and other items. 78 Fee Revenues by Geography The majority of our revenues are earned in the U.S.
Fee-Bearing Capital The following tables summarize Fee-Bearing Capital as at December 31, 2024, 2023 and 2022: AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Renewable power and transition $ 34,813 $ 23,044 $ — $ 57,857 Infrastructure 45,738 51,312 — 97,050 Real estate 69,689 23,940 — 93,629 Private equity 37,123 8,067 — 45,190 Credit 74,697 102,193 67,925 244,815 December 31, 2024 $ 262,060 $ 208,556 $ 67,925 $ 538,541 AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Renewable power and transition $ 29,663 $ 22,700 $ — $ 52,363 Infrastructure 47,345 47,290 — 94,635 Real estate 66,038 27,406 — 93,444 Private equity 33,249 5,600 — 38,849 Credit 69,046 45,723 62,938 177,707 December 31, 2023 $ 245,341 $ 148,719 $ 62,938 $ 456,998 AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Renewable power and transition $ 25,902 $ 20,510 $ — $ 46,412 Infrastructure 40,316 42,436 — 82,752 Real estate 63,832 31,801 — 95,633 Private equity 31,500 7,816 — 39,316 Credit 56,245 34,209 63,296 153,750 December 31, 2022 $ 217,795 $ 136,772 $ 63,296 $ 417,863 73 The changes in Fee-Bearing Capital are set out in the following tables for the years ended December 31, 2024, 2023 and 2022: AS AT AND FOR THE YEAR ENDED (MILLIONS) Renewable power and transition Infrastructure Real estate Private equity Credit Total December 31, 2023 $ 52,363 $ 94,635 $ 93,444 $ 38,849 $ 177,707 $ 456,998 Inflows 8,670 5,313 9,074 3,714 102,211 128,982 Outflows — (11) (481) — (27,396) (27,888) Distributions (1,594) (2,378) (4,054) (1,302) (8,700) (18,028) Market valuation (704) 3,669 (2,169) 1,610 6,074 8,480 Other (878) (4,178) (2,185) 2,319 (5,081) (10,003) Change 5,494 2,415 185 6,341 67,108 81,543 December 31, 2024 $ 57,857 $ 97,050 $ 93,629 $ 45,190 $ 244,815 $ 538,541 AS AT AND FOR THE YEAR ENDED (MILLIONS) Renewable power and transition Infrastructure Real estate Private equity Credit Total December 31, 2022 $ 46,412 $ 82,752 $ 95,633 $ 39,316 $ 153,750 $ 417,863 Inflows 5,612 12,523 10,168 4,424 40,455 73,182 Outflows — (6) (127) — (20,228) (20,361) Distributions (1,442) (2,929) (4,690) (1,201) (5,989) (16,251) Market valuation 1,757 2,241 (2,841) (816) 7,703 8,044 Other 24 54 (4,699) (2,874) 2,016 (5,479) Change 5,951 11,883 (2,189) (467) 23,957 39,135 December 31, 2023 $ 52,363 $ 94,635 $ 93,444 $ 38,849 $ 177,707 $ 456,998 AS AT AND FOR THE YEAR ENDED (MILLIONS) Renewable power and transition Infrastructure Real estate Private equity Credit Total December 31, 2021 $ 47,141 $ 66,219 $ 76,642 $ 34,382 $ 139,749 $ 364,133 Inflows 6,351 24,929 17,117 9,135 50,137 107,669 Outflows — — (343) — (21,699) (22,042) Distributions (1,409) (3,361) (4,149) (808) (2,434) (12,161) Market valuation (5,873) (5,053) 1,545 (2,546) (8,320) (20,247) Other 202 18 4,821 (847) (3,683) 511 Change (729) 16,533 18,991 4,934 14,001 53,730 December 31, 2022 $ 46,412 $ 82,752 $ 95,633 $ 39,316 $ 153,750 $ 417,863 For the year ended December 31, 2024 Fee-Bearing Capital was $539 billion as at December 31, 2024 compared to $457 billion as at December 31, 2023.
Fee-Bearing Capital The following tables summarize Fee-Bearing Capital as at December 31, 2025, 2024 and 2023: AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Infrastructure $ 47,950 $ 58,448 $ — $ 106,398 Renewable power and transition 39,068 28,177 — 67,245 Private equity 38,859 9,147 — 48,006 Real estate 72,045 29,637 — 101,682 Credit 86,892 115,103 77,388 279,383 December 31, 2025 $ 284,814 $ 240,512 $ 77,388 $ 602,714 AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Infrastructure $ 45,738 $ 51,312 $ — $ 97,050 Renewable power and transition 34,813 23,044 — 57,857 Private equity 37,123 8,067 — 45,190 Real estate 69,689 23,940 — 93,629 Credit 74,697 102,193 67,925 244,815 December 31, 2024 $ 262,060 $ 208,556 $ 67,925 $ 538,541 AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Infrastructure $ 47,345 $ 47,290 $ — $ 94,635 Renewable power and transition 29,663 22,700 — 52,363 Private equity 33,249 5,600 — 38,849 Real estate 66,038 27,406 — 93,444 Credit 69,046 45,723 62,938 177,707 December 31, 2023 $ 245,341 $ 148,719 $ 62,938 $ 456,998 62 The changes in Fee-Bearing Capital are set out in the following tables for the years ended December 31, 2025, 2024 and 2023: AS AT AND FOR THE YEAR ENDED (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total December 31, 2024 $ 97,050 $ 57,857 $ 45,190 $ 93,629 $ 244,815 $ 538,541 Inflows 5,888 10,394 5,302 16,234 53,026 90,844 Outflows — — — (242) (21,918) (22,160) Distributions (4,395) (3,453) (1,116) (6,721) (11,129) (26,814) Market valuation 6,083 5,495 2,004 (84) 11,269 24,767 Other 1,772 (3,048) (3,374) (1,134) 3,320 (2,464) Change 9,348 9,388 2,816 8,053 34,568 64,173 December 31, 2025 $ 106,398 $ 67,245 $ 48,006 $ 101,682 $ 279,383 $ 602,714 AS AT AND FOR THE YEAR ENDED (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total December 31, 2023 $ 94,635 $ 52,363 $ 38,849 $ 93,444 $ 177,707 $ 456,998 Inflows 5,313 8,670 3,714 9,074 102,211 128,982 Outflows (11) — — (481) (27,396) (27,888) Distributions (2,378) (1,594) (1,302) (4,054) (8,700) (18,028) Market valuation 3,669 (704) 1,610 (2,169) 6,074 8,480 Other (4,178) (878) 2,319 (2,185) (5,081) (10,003) Change 2,415 5,494 6,341 185 67,108 81,543 December 31, 2024 $ 97,050 $ 57,857 $ 45,190 $ 93,629 $ 244,815 $ 538,541 AS AT AND FOR THE YEAR ENDED (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total December 31, 2022 $ 82,752 $ 46,412 $ 39,316 $ 95,633 $ 153,750 $ 417,863 Inflows 12,523 5,612 4,424 10,168 40,455 73,182 Outflows (6) — — (127) (20,228) (20,361) Distributions (2,929) (1,442) (1,201) (4,690) (5,989) (16,251) Market valuation 2,241 1,757 (816) (2,841) 7,703 8,044 Other 54 24 (2,874) (4,699) 2,016 (5,479) Change 11,883 5,951 (467) (2,189) 23,957 39,135 December 31, 2023 $ 94,635 $ 52,363 $ 38,849 $ 93,444 $ 177,707 $ 456,998 For the year ended December 31, 2025 Fee-Bearing Capital was $603 billion as at December 31, 2025 compared to $539 billion as at December 31, 2024, representing a net increase of $64.2 billion, or 12%: • Inflows of $90.8 billion include capital commitments and contributions to our long-term private funds and liquid strategies, and issuances from our perpetual affiliates.
Preferred shares redeemable non-controlling interest was $2.1 billion as at December 31, 2024, a decrease of $63 million compared to $2.2 billion as at December 31, 2023. This movement was due to a decrease in unrealized carried interest on mature funds during the year, partially offset by redeemable preferred share issuances to BN and BAM.
Preferred shares redeemable non-controlling interest was $1.4 billion as at December 31, 2025, a decrease of $705 million compared to $2.1 billion as at December 31, 2024. This movement was due to a decrease in unrealized carried interest on mature real estate flagship funds, as well as settlements of amounts owed to BN during the year ended December 31, 2025.
Investing Activities During the year ended December 31, 2023, net cash outflows from investing activities totaled $475 million compared to inflows of $1.7 billion in the year ended December 31, 2022.
Investing Activities Net cash outflows from investing activities totaled $339 million, compared to outflows of $1.7 billion in the prior year.
All realized carried interest income in both the year ended December 31, 2024 and December 31, 2023, net of carry compensation related to mature funds are attributable to BN through our redeemable preferred shares.
All realized carried interest income for the year ended December 31, 2024, net of carried interest compensation related to mature funds and are attributable to BN through our redeemable preferred shares. 51 The unrealized carried interest allocations of $209 million for the year ended December 31, 2025 represents an increase of $218 million compared to the year ended December 31, 2024.
This is primarily attributable to increased compensation costs resulting from the ongoing growth of our asset management business and mark-to-market increases of liability-based awards. Other Operating Expenses Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions.
The remaining increase is due to higher compensation costs from the ongoing growth of our business. Other Operating Expenses Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions.
BAM evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Refer to Note 3 “ Investments ” of the Consolidated Financial Statements of BAM for further details of BAM's equity method investments.
Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity investments in the consolidated statements of operations. BAM evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.
For the years ended December 31, 2024 and 2023 Fee Revenues for the year ended December 31, 2024 were $4.7 billion, an increase of $325 million or 7% compared to the prior year.
For the year ended December 31, 2025 Fee Revenues for the year ended December 31, 2025 were $5.5 billion, an increase of $781 million or 17% compared to the prior year.
This was largely driven by capital raised for our sixth flagship private equity fund and capital deployed across other strategies. 83 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Management and advisory fees Long-term private funds Flagship funds $ 162 $ 177 $ 137 Other long-term funds 175 174 186 Co-investment and other funds 10 10 8 347 361 331 Perpetual strategies BBU 1 92 87 94 92 87 94 Catch-up fees 7 16 — Transaction and advisory fees 24 11 9 Total Fee Revenues $ 470 $ 475 $ 434 1.
Distributions of $1.1 billion were driven by our fourth flagship fund, other long-term private funds, and BBU. 71 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds Flagship funds $ 156 $ 162 $ 177 Other long-term funds 192 175 174 Co-investment and other funds 9 10 10 357 347 361 Perpetual strategies BBU 1 96 92 87 96 92 87 Catch-up fees — 7 16 Transaction and advisory fees 8 24 11 Total management and advisory fees 461 470 475 Performance fees 2 95 — — Total Fee Revenues $ 556 $ 470 $ 475 1.
For the year ended December 31, 2023 Fee Revenues increased by $41 million or 9% for the year ended December 31, 2023 relative to the year ended December 31, 2022.
For the year ended December 31, 2025 Fee Revenues increased by $186 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.
Our primary approach to determining the fair value of our investments is generally the income approach, which estimates fair value based on the present value of expected future cash flows generated by a business.
Additionally, management is required to measure specific financial instruments at fair value, including debt instruments, equity securities, and freestanding derivatives. 83 Our primary approach to determining the fair value of our investments is generally the income approach, which estimates fair value based on the present value of expected future cash flows generated by a business.
Net income attributable to preferred redeemable non-controlling interest was $262 million for the year ended December 31, 2023 primarily due to higher valuations in certain mature funds. 61 Net Income Attributable to Non-Controlling Interest Net income attributable to non-controlling interest was $36 million for the year ended December 31, 2023.
Net loss attributable to preferred redeemable non-controlling interest was $480 million for the year ended December 31, 2025 primarily due to lower valuations in certain mature real estate funds. Net Income Attributable to Non-Controlling Interest of Consolidated Entities Net income attributable to non-controlling interest of consolidated entities was $369 million for the year ended December 31, 2025.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2024 2023 2022 Long-term private funds $ 74,697 $ 69,046 $ 56,245 Permanent capital and perpetual strategies 102,193 45,723 34,209 Liquid strategies 67,925 62,938 63,296 Total Fee-Bearing Capital $ 244,815 $ 177,707 $ 153,750 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 Balance, beginning $ 177,707 $ 153,750 $ 139,749 Inflows 102,211 40,455 50,137 Outflows (27,396) (20,228) (21,699) Distributions (8,700) (5,989) (2,434) Market valuation 6,074 7,703 (8,320) Other (5,081) 2,016 (3,683) Change 67,108 23,957 14,001 Balance, ending $ 244,815 $ 177,707 $ 153,750 For the year ended December 31, 2024 During the year ended December 31, 2024, Fee-Bearing Capital increased by $67.1 billion or 38% to $245 billion, primarily due to the AEL Mandate, resulting in $49 billion of inflows of Fee-Bearing Capital.
Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 86,892 $ 74,697 $ 69,046 Permanent capital and perpetual strategies 115,103 102,193 45,723 Liquid strategies 77,388 67,925 62,938 Total Fee-Bearing Capital $ 279,383 $ 244,815 $ 177,707 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 244,815 $ 177,707 $ 153,750 Inflows 53,026 102,211 40,455 Outflows (21,918) (27,396) (20,228) Distributions (11,129) (8,700) (5,989) Market valuation 11,269 6,074 7,703 Other 3,320 (5,081) 2,016 Change 34,568 67,108 23,957 Balance, ending $ 279,383 $ 244,815 $ 177,707 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $34.6 billion or 14% to $279 billion, primarily due to $24.5 billion of capital deployed within long-term private funds as well as perpetual and liquid credit strategies, $22.5 billion of insurance capital inflows from BWS, $3.7 billion of capital raised within our partner managers, and $2.3 billion of fundraising from our real estate and infrastructure debt strategies.
Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings The following presents a reconciliation of net income to Fee-Related Earnings and Distributable Earnings for the years presented for the asset management business.
Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings The following presents a reconciliation of net income to Fee-Related Earnings and Distributable Earnings for the years ended December 31, 2025, 2024 and 2023.
Share-based awards are granted in the first quarter of each year and generally vest over 5 years. Equity settled compensation awards vest on a graded basis over the vesting period and cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of BAM Ltd. Class A Shares.
Equity settled compensation awards vest on a graded basis over the vesting period and cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of BAM Class A Shares. Therefore, for cash settled share-based compensation, an increase or decrease in the share price of BAM will result in share-based compensation expense or recovery.
This increase was primarily due to carried interest generated by new funds that is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within our asset management business. 66 Cash Flow Statement Analysis Review of Consolidated Statements of Cash Flows The following table summarizes the changes in BAM’s cash for the years ended December 31, 2024, 2023 and the period from July 4, 2022 to December 31, 2022: FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 (MILLIONS) 2024 2023 2022 Operating activities $ 627 $ 508 $ (2) Investing activities (41) (41) — Financing activities (583) (459) 3 Change in cash and cash equivalents $ 3 $ 8 $ 1 This statement reflects activities within our consolidated operations and therefore excludes activities within non-consolidated entities.
This increase was primarily due to carried interest generated across the latest vintages of our flagship funds of which 33.33% is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within BAM. 57 Cash Flow Statement Analysis Review of Consolidated Statements of Cash Flows Refer to the following table that summarizes the consolidated statements of cash flows for BAM for the years ended December 31, 2025, 2024 and 2023: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Operating activities $ 2,101 $ 1,612 $ 1,439 Investing activities (339) (1,744) (475) Financing activities (590) (2,119) (1,842) Change in cash and cash equivalents $ 1,172 $ (2,251) $ (878) This statement reflects activities within our consolidated operations and therefore excludes activities within non-consolidated entities.
(g) These adjustments remove our share of partly owned subsidiaries' earnings, including items (a) to (f) above and include its share of partly owned subsidiaries' Fee-Related Earnings. (h) This item adds back compensation costs that will be borne by affiliates. (i) This item represents non-recurring restructuring costs that are not considered as part of the ongoing asset management business.
(g) These adjustments remove our share of equity method investments' earnings, including items (a) to (f) above and include its share of equity method investments' Fee-Related Earnings. (h) This item adds back compensation costs that will be borne by affiliates.
Realized carried interest allocations in the current and prior year were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies.
Realized carried interest allocations were $nil for the year ended December 31, 2025, which represents a net decrease of $25 million compared to the year ended December 31, 2024. Realized carried interest allocations in the prior year were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies.
This compares to net income of $2.1 billion for the year ended December 31, 2023, of which $1.8 billion was attributable to common stockholders. Revenues Revenues for the year ended December 31, 2024 were $4.0 billion, which represents a decrease of $82 million compared to $4.1 billion of revenue for the year ended December 31, 2023.
For the years ended December 31, 2025 and 2024 Net income for the year ended December 31, 2025 was $2.4 billion, of which $2.5 billion was attributable to common stockholders. This compares to net income of $2.1 billion for the year ended December 31, 2024, of which $2.2 billion was attributable to common stockholders.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+2 added−4 removed3 unchanged
Market Risk The primary market risk exposure of our asset management business relates to its role as an asset manager of the publicly listed permanent capital vehicles and the sensitivity of base management fees earned from these affiliates due to movements in their underlying trading price.
Market Risk The primary market risk exposure of BAM relates to its role as an asset manager of the publicly listed permanent capital vehicles and the sensitivity of base management fees earned from these affiliates due to movements in their underlying trading price.
Given the diversity and creditworthiness of our over 2,300 clients, including some of the world’s largest institutional investors, sovereign wealth funds and pension plans, we are of the view that there is not a material credit risk present in our asset management business. 95
Given the diversity and creditworthiness of our over 2,400 clients, including some of the world’s largest institutional investors, sovereign wealth funds and pension plans, we are of the view that there is not a material credit risk present in our asset management business. 84
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Quantitative and Qualitative Risk Disclosures BAM has limited activities and operations. BAM’s exposure to market, foreign currency, interest rate and credit risk is driven by its equity interest in our asset management business.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Quantitative and Qualitative Risk Disclosures Our exposure to market, foreign currency, interest rate and credit risk is driven by its equity interest in our asset management business. There have been no material changes to BAM’s financial risk exposure or risk management activities since December 31, 2024.
There have been no material changes to BAM’s financial risk exposure or risk management activities since December 31, 2023. Please refer to Item 1A of this report for a detailed description of BAM’s financial risk exposure and risk management activities.
Please refer to Item 1A of this report for a detailed description of BAM’s financial risk exposure and risk management activities.
Specifically, with respect to the market risk related to base management fees earned based on the market capitalization of BEP, BIP and BBU. 94 The table below outlines the impact to base management and advisory fee revenues if there was a 10% decline in the market capitalization of the aforementioned permanent capital vehicles: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 2022 BEP $ 20 $ 22 $ 19 BIP 33 32 33 BBU 7 4 7 Revenues $ 60 $ 58 $ 59 Foreign Currency Risk We have very limited exposure to foreign currency risk as a majority of our private funds are denominated in USD.
Specifically, with respect to the market risk related to base management fees earned based on the market capitalization of BEP, BIP and BBU. Foreign Currency Risk We have very limited exposure to foreign currency risk as a majority of our private funds are denominated in USD.
The Asset Management Company has interest rate exposure through balances held with affiliates, as well as its internal revolving credit facility with BN and its external revolving credit facility which is currently undrawn. The Asset Management Company earns interest income on its deposit balance with BN and as the lender on the revolving credit facility it extends to BAM.
Interest Rate Risk BAM has interest rate exposure through balances held with affiliates and external parties, as well as its internal revolving credit facility with BN and its external $1.1 billion revolving credit facility, of which none is drawn as at December 31, 2025.
The Asset Management Company incurs interest expense on its revolving credit facility borrowings with BN. Interest income and expenses on these balances are at variable rates. In fiscal 2024, a 50 basis-point increase (decrease) in interest rates, with all other variables held constant, would have resulted in an approximate increase (decrease) of $7.4 million in net interest income.
BAM earns interest income on amounts held on deposit with BN and incurs interest expense on its external and internal revolving credit facility borrowings. Interest income and expenses on these balances are at variable rates. BAM's $750 million senior notes due 2035 have a fixed annual coupon of 5.795%.
Removed
Interest Rate Risk BAM has interest rate exposure through balances held with affiliates and does not hold debt or term deposits with third parties. BAM incurs interest expense on its revolving credit facility borrowings with the Asset Management Company at variable rates.
Added
We may from time to time reduce foreign currency risk by employing hedging techniques, including using forward contracts to reduce exposure to future changes in exchange rates when a meaningful amount of capital has been invested in foreign currencies.
Removed
In fiscal 2024, a 50 basis-point increase (or decrease) in interest rates, with all other variables held constant, would have resulted in an approximate increase (or decrease) of $1.1 million in interest expense.
Added
BAM's $750 million senior notes due 2055 have a fixed annual coupon of 6.077%. BAM's $600 million senior notes due 2030 have a fixed annual coupon of 4.653%. BAM's $400 million senior notes due 2036 have a fixed annual coupon of 5.298%. Credit Risk Investors in our private funds make capital commitments to these vehicles via subscription agreements.
Removed
Assuming December 31, 2024 year-end balances remain constant throughout 2025, a similar 50 basis-point change in interest rates would result in an approximate increase (or decrease) of $1.1 million in interest expense.
Removed
A 50 basis-point increase (decrease) in interest rates would result in an approximate increase (decrease) of $1.8 million in net interest income assuming December 31, 2024 year end balances remain constant throughout 2025. Credit Risk Investors in our private funds make capital commitments to these vehicles via subscription agreements.