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Item 1. Business

2026-03-02 compared with 2025-03-17 · 218 added, 317 removed, 207 unchanged (72% of the section changed)

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.

We manage a range of public and private investment products and services for institutional and retail clients.

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 invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy.

We offer a range of alternative investment products to over 2,400 institutional clients around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors which also continues to grow with approximately 60,000 clients representing over 8% of capital raised.

We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them.

Our access to large-scale capital enables us to make investments in sizeable, premier assets and businesses across geographies and asset classes that we believe few others can.

To do this, we leverage our team of over 2,500 investment and asset management professionals, our global reach, deep operating expertise, and access to large-scale capital to identify attractive investment opportunities and invest on a proprietary basis.

Our investment approach and strong track record have been the foundation and driver of our growth.

Our deep operating expertise, global reach and access to large-scale flexible capital enable us to identify attractive investment opportunities and make investments on a proprietary basis in sizable, premier assets and businesses across geographies and asset classes that we believe few others can.

To do this, we leverage our team of over 5,800 investment and asset management professionals and employees, including over 300 client service professionals across 32 global offices, to ensure that the business exceeds our clients’ service expectations.

We also have a dedicated team of approximately 150 people that are focused on distributing and developing catered products to the private wealth channel.

Our disciplined investment approach and strong track record have been the foundation and driver of our growth.

We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.

We provide a highly diversified suite of alternative investment strategies to our clients and are constantly seeking to innovate new strategies to meet their needs.

We have over 55 unique active strategies that span a wide range of risk-adjusted returns, including opportunistic, value-add, core, super-core, and credit.

We evaluate the performance of these product offerings and our investment strategies using a number of non-GAAP measures.

BAM utilizes Fee-Bearing Capital, Fee Revenues, Fee-Related Earnings and Distributable Earnings to assess the performance of our asset management business.

We are in a fortunate position to be trusted with our clients’ capital and our objective is to meet their financial goals and provide for a better financial future while providing market leading experience.

Our team of over 300 client service professionals across 19 global offices are dedicated to ensuring that the business exceeds our clients’ service expectations.

We have over 2,300 clients, with some of our clients being among the world’s largest institutional investors, including sovereign wealth funds, pension plans, endowments, foundations, financial institutions, and insurance companies.

We evaluate the performance of these product offerings and our investment strategies using a number of non-GAAP measures, including Fee-Bearing Capital, Fee Revenues, Fee-Related Earnings and Distributable Earnings.

Our guiding principle is to operate our business and conduct our relationships with the highest level of integrity.

Our emphasis on a culture of collaboration allows us to attract and retain top talent.

BAM's Class A Limited Voting Shares (the “Class A Shares”) are co-listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “BAM”.

The Class A Shares are co-listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “BAM”.

Value Creation

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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.

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 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.

As of December 31, 2024, we had a diversified client base of over 2,300 clients, which continues to grow.

Our private wealth channel also continues to grow and represents over 8% of capital raised.

We have a dedicated team of over 150 people that are focused on distributing and developing catered products to the private wealth channel.

As we grow our Fee-Bearing Capital, we earn incremental base management fees.

In order to support this growth, we have grown our team of investment and asset management professionals.

Our costs are predominantly in the form of compensation for the over 2,500 professionals we employ globally.

When deploying our clients’ capital, we seek to leverage our competitive advantages to acquire high-quality real assets and essential service businesses that form the backbone of the global economy.

We use our global reach and access to scale capital to source

attractive investment opportunities and leverage our deep operating expertise to underwrite investments and create value through active asset management.

Our goal is to deliver superior investment returns to our clients and successfully doing so should result in the growth of realized carried interest over time.

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.

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.

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.

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.

These new initiatives, in addition to our existing strategies, are expected to have a very meaningful impact on our growth trajectory in the long term as BAM continues to be the partner of choice for investors.

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.

We are actively progressing new organic growth strategies, including AI infrastructure.

We also consider strategic M&A opportunities that would expand our capabilities.

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.

These new initiatives, in addition to our existing strategies, are expected to have a very meaningful impact on our growth trajectory in the long term.

Competitive Advantages

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We believe that strong operating experience is essential in maximizing efficiency and productivity – and ultimately, returns.

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.

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.

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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 we believe that our scale enables us to move quickly and pursue multiple opportunities across different markets.

We can invest where capital is scarce, and our scale enables us to move quickly and pursue multiple opportunities across different markets.

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.

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.

We had over $1 trillion in Assets Under Management and $539 billion in Fee-Bearing Capital as of December 31, 2024.

We offer our investors a large selection of private funds that have global mandates and diversified strategies.

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.

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The unique intelligence we generate from the ongoing interconnectivity between our over $1 trillion of Assets Under Management, our global partnerships and our visibility into global capital flows helps us identify themes and trends in investing, spot pockets of value and source attractive investment opportunities as BAM continues to be the partner of choice for 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.

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.

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.

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.

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.

This in turn provides the capital to invest, from which we earn base management fees, incentive distributions and performance-income such as carried interest.

Accordingly, we create value by achieving strong investment performance, which leads to growth in Fee-Bearing Capital and increased cash flows.

Identify and Invest in High-Quality Assets

We follow a value-based approach to investing and allocating capital.

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

generate superior risk-adjusted returns for our clients.

We also leverage our considerable expertise in executing recapitalizations, operational turnarounds and large development and capital projects, providing additional opportunities to deploy capital.

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For our equity investments, we finance the investments on behalf of our clients predominantly on a long-term investment-grade basis and asset-by-asset, which are primarily non-recourse.

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.

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.

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.

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.

Realize Capital from Asset Sales or Refinancing

We actively monitor opportunities to sell or refinance assets to generate proceeds for our investors.

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.

We actively monitor opportunities to sell or refinance assets to generate proceeds for our clients.

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.

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These are invested across five principal strategies:

(i) renewable power and transition, (ii) infrastructure, (iii) real estate, (iv) private equity, and (v) credit.

Renewable Power and Transition

• 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.

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.

Our extensive experience and knowledge in this industry enable us to be a leader in all major technologies with deep operating and development capabilities.

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.

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.

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.

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;

• Sustainable solutions including renewable natural gas, carbon capture and storage, recycling, cogeneration biomass, nuclear services, and power transformation.

(i) infrastructure, (ii) renewable power and transition, (iii) private equity, (iv) real estate, and (v) credit.

Infrastructure

• 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 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.

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 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.

Long-term Private Funds

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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.

The fund is focused on deploying our deep capabilities to partner with sponsors, developers, and corporates to access attractive development opportunities.

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

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(“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 (“BSIP”), which is our perpetual infrastructure private fund s trategy.

• We manage Brookfield Super-Core Infrastructure Partners, which is our perpetual infrastructure private fund strategy.

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.

• We also manage Brookfield Infrastructure Income Fund, a semi-liquid infrastructure strategy, offering private wealth investors access to our best-in-class infrastructure platform.

• 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.

The infrastructure investments that we manage provide a diversified exposure for our clients to scarce, high-quality businesses that benefit from significant barriers to entry and deliver essential goods and services to generate resilient and inflation-protected cash flow streams.

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• Businesses that provide essential services and critical infrastructure to transmit and store data globally, including telecom towers and active rooftop sites, fiber optic cable and data centers.

• We are one of the world’s largest investment managers in real estate, wit h over $271 billion of A UM and $94 billion of Fee-Bearing Capital as of December 31, 2024 .

• We have invested, on behalf of clients, in iconic properties in the world’s most dynamic markets with the goal of generating stable and growing distri butions for our investors while protecting them against downside risk.

• We have approximately 650 investment and asset management professionals that are focused on generating superior returns across our real estate strategies, supported by approximately 24,500 operating employees in the real estate operating businesses that we manage.

Renewable Power and Transition

• 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.

• 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.

Our extensive experience and knowledge in this industry enable us to be a leader in all major technologies with deep operating and development capabilities.

Long-term Private Funds

• Our opportunistic real estate flagship fund series is Brookfield Strategic Real Estate Partners (“BSREP”) .

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.

• 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.

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.

CTF will help drive clean energy investment in emerging markets.

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.

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”).

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.

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.

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;

• 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.

• 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.

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;

• Sustainable solutions including nuclear services, renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, power transformation, and sustainable aviation fuel.

Private Equity

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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 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.

Long-term Private Funds

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BBU is listed on the NYSE and TSX and had a market capitalization of $7.1 billion as at December 31, 2025.

• We also manage Brookfield Private Equity Fund (“BPE”), which is an evergreen semi-liquid fund offering individual investors streamlined, diversified access to Brookfield’s global private equity platform through a single vehicle.

Our private equity vehicles acquire high-quality operations globally.

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• Operationally intense industrial businesses that benefit from a strong competitive position, including a leading global provider of advanced automotive battery technology, a leading global aviation services and leasing business, and a leading manufacturer of engineered components for industrial trailers and other towable equipment providers, among others;

• Essential services providers, including the largest private sector residential mortgage insurer in Canada, a leading value-add distributor of telecom equipment, a leading provider of software and technology services to automotive dealers, and one of the largest private school operators globally.

• Essential services providers, including the largest private sector residential mortgage insurer in Canada, a leading value-add distributor of telecom equipment, a leading provider of software to automotive dealers, one of the largest private school operators globally, and a leading American private education company.

• We are one of the world’s largest investment managers in real estate, with over $273 billion of AUM and $102 billion of Fee-Bearing Capital as of December 31, 2025.

• We have invested, on behalf of clients, in iconic properties in the world’s most dynamic markets with the goal of generating stable and growing distributions for our investors while protecting them against downside risk.

• We have approximately 2,150 investment and asset management professionals and employees that are focused on generating superior returns across our real estate strategies, supported by approximately 23,900 operating employees in the real estate operating businesses that we manage.

Long-term Private Funds

• Our opportunistic real estate flagship fund series is Brookfield Strategic Real Estate Partners (“BSREP”).

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.

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.

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 retail, multifamily, office, and logistics real estate assets.

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.

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;

• Office properties in key gateway cities in the U.S., Canada, the U.K., Germany, Australia, Brazil and India.

• 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 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.

• Our flagship opportunistic credit strategy, Global Opportunities, seeks to generate current income and long-term capital appreciation by investing in private loans to large private-equity-owned companies with a focus on protecting against losses by buying claims on assets at discounted prices.

We aim to achieve substantial gains by actively participating in restructurings to restore companies to financial viability and creating value at every stage of the investment process.

• Brookfield Infrastructure Debt is our infrastructure debt fund series, which invests on behalf of our clients in mezzanine debt investments in high-quality, infrastructure a ssets.

• 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.

Our partner managers where we have significant non-

controlling ownership stakes include:

◦ Oaktree, one of the world’s premier credit investors.

For further discussion on our proposed transaction with Oaktree, refer to “Part I—Item 1.

Business—Development of the Business”, in this report;

◦ Castlelake, a private credit investor specializing in asset based, aviation, and specialty finance;

◦ Angel Oak, a mortgage and consumer credit manager with a vertically integrated origination platform.

For further discussion on our recent transaction with Angel Oak, refer to “Part I—Item 1.

Business—Development of the Business”, in this report;

◦ LCM, a leader in European consumer and small and medium-sized enterprise loan markets;

◦ Primary Wave, a leading music rights investor;

◦ 17Capital, a leader in NAV finance.

• Our flagship opportunistic credit strategy, Global Opportunities, aims to generate consistently strong risk adjusted returns by investing in a diverse set of opportunities including distressed liquid credit, rescue financings, debtor-in-possession loans, bankruptcy exits, loan portfolios, platform investments, and opportunistic capital solutions in key economic regions across the globe.

• Brookfield Infrastructure Debt is our infrastructure debt fund series, which invests on behalf of our clients in mezzanine debt investments in high-quality, infrastructure and renewable power and transition assets.

• Brookfield Real Estate Finance Fund is our commercial real estate debt fund series, which targets investments in transactions that are senior to traditional equity and subordinate to first mortgages or investment-grade corporate debt.

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Each client’s private credit investment portfolio can be customized across multiple dimensions, including asset class, credit quality, duration, sector, and geography, with proprietary access to our broad-based private credit origination capabilities.

The credit investments that we manage enable our clients to have exposure to a broad range of credit strategies, including:

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;

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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;

• 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;

• Liquid Credit strategies investing across a broad spectrum of public debt securities, from investment-grade to high-yield.

Development of the Business

Our asset management business is owned and operated through the Asset Management Company, which, as of February 4, 2025, is wholly-owned by BAM.

BAM is headquartered in New York, NY and was incorporated on July 4, 2022.

BAM and the Asset Management Company were formed by BN to facilitate the 2022 Arrangement.

The 2022 Arrangement, which closed on December 9, 2022, involved the division of Brookfield Asset Management Inc.

into two publicly traded companies:

BAM, a pure-play, leading global alternative asset management business;

and BN, a leading global investment firm focused on building long-term wealth for institutions and individuals around the world.

As at December 31, 2024, BAM owned approximately 27% of the Asset Management Company.

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”).

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.

The 2025 Arrangement is expected to continue to broaden BAM’s shareholder base and simplify the structure of the Asset Management Company further by having its ownership consolidated under BAM, rather than being split between BN and BAM.

The 2025 Arrangement also resulted in BAM’s market capitalization reflecting 100% of the value of the asset management business, which management believes will align BAM’s size and structure with its U.S.-based global alternative asset management business peers and position BAM for potential inclusion in some of the most widely followed global large cap stock indices, including in the U.S., in the future.

As part of these efforts, a number of changes were made to BAM's board of directors.

Please see “Part III—Item 10.

Directors, Executive Officers and Corporate Governance—Directors and Executive Officers” on page 198 of this report.

The following is a summary of other recent developments affecting BAM and our asset management business since January 1, 2024.

BAM was formed by BN to facilitate the 2022 Arrangement.

The following is a summary of recent developments affecting BAM since January 1, 2025.

Asset Management Business

2025 Activity

On February 10, 2025, BAM announced a €20 billion infrastructure investment program to support the deployment of artificial intelligence infrastructure in France.

Brookfield's investment will be targeted across data centers and associated infrastructure sectors which are vital for the deployment of artificial intelligence.

Up to €15 billion of data center investment will be led by a Brookfield portfolio company, Data4, one of Europe’s largest data center developers, headquartered in Paris.

The investment of a further €5 billion is planned by Brookfield in France across associated artificial intelligence infrastructure such as data transfer, chip storage and energy generation.

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.

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.

BISS is focused on deploying Brookfield’s capabilities as an owner and operator of global infrastructure assets to partner with sponsors, developers, and corporates in the mid-market.

The strategy seeks to invest both structured and common equity.

2024 Activity

In 2024, our asset management business benefited from strong fundraising across our flagship and complementary fund offerings, with total fundraising of over $135 billion.

The successful fundraising across our flagship series included the second vintage of our global transition fund of $4.6 billion, our fifth real estate flagship fund of $2.9 billion, and the twelfth vintage of our opportunistic credit fund of $5.2 billion.

We expect to hold a final close for our second global transition flagship fund and fifth real estate flagship fund series in the first half of 2025.

In 2025, our asset management business benefited from strong fundraising across our flagship and complementary funds, with total fundraising of over $110 billion.

The fundraising across our flagship series included over $10 billion for the second vintage of our global transition fund and our fifth real estate flagship fund, which held final closes during the year.

We also raised approximately $68.0 billion of capital this year across more than a dozen credit strategies and under our mandate with BWS.

This includes raising nearly $29 billion across our Oaktree franchise, including our aforementioned twelfth opportunities credit fund, $1.7 billion in the fourth vintage of our infrastructure debt fund, and $2.5 billion across our other partner managers.

In addition, we raised a total of $67 billion from BWS including a $49 billion mandate following the May 2, 2024 acquisition of AEL and $17 billion from retail annuity sales, pension risk transfer inflows, and other reinsurance products.

Our Fee-Bearing Capital represents the total capital managed by our asset management business for which we earn fee revenue.

Fee-Bearing Capital of our asset management business increased by $82 billion, or 18% to $539 billion in 2024;

This includes raising nearly $31.6 billion across our Oaktree franchise, including the final close of our twelfth opportunities

credit fund, $6.6 billion across our other partner managers, and $3.3 billion for the fourth vintage of our infrastructure debt fund.

In addition, we raised a total of $25.2 billion from BWS.

Our Fee-Bearing Capital represents the total capital managed for which we earn fee revenue.

Fee-Bearing Capital increased by $64 billion, or 12% to $603 billion in 2025;

of this, 87% is long-dated or perpetual in nature, providing resiliency and predictability to our revenues.

Increases to Fee-Bearing Capital of $129 billion were largely attributable to fundraising during the year and the aforementioned AEL Mandate.

These increases were partially offset by redemptions within our liquid and perpetual strategies and annuity-related outflows.

Increases to Fee-Bearing Capital of $91 billion were largely attributable to fundraising during the year.

In addition, $25 billion of Fee-Bearing Capital growth was primarily driven by higher market capitalization of our listed affiliates (BEP, BIP, and BBU) as a result of a higher share prices during the year.

These increases were partially offset by redemptions within our liquid and perpetual strategies, annuity-related outflows, and distributions from our long-term private funds.

The increase in Fee-Bearing Capital contributed to Fee Revenues of $5.5 billion and Fee-Related Earnings of $3.0 billion for 2025, which increased by 17% and 22% , respectively, compared to 2024.

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.

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.

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.

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.

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.

Once invested, we expect these commitments will earn approximately $630 million of additional Fee Revenues.

Digitalization is being further propelled by significant increases in AI investment, increasing corporate clean energy demand, and the transformative role of private credit in the capital markets.

In 2024, our investment strategies continued to focus on growing fundraising channels, direct credit lending, infrastructure, and transition and renewables.

In 2025, our investment strategies continued to focus on growing strategic partnerships and funds in a number of sectors including private credit, AI and clean energy.

Some notable examples include:

• In February 2024, BAM announced that it raised $10 billion (inclusive of fund commitments and strategic capital from the investor base of our asset management business) in the first closing of the second vintage of Brookfield Global Transition Fund, our private fund dedicated to facilitating the global transition to a net-zero carbon economy.

Total fundraising for the strategy this year was $5.2 billion.

• On May 2, 2024, BWS completed the acquisition of the remaining outstanding common stock of AEL that it did not already own.

The acquisition by BWS from BN of the BAM Class A Shares required to satisfy the stock consideration pursuant to the

AEL acquisition resulted in an increase to BAM's ownership in the Asset Management Company (after giving effect to the 2025 Arrangement, the non-controlling interest in BAM) from approximately 25% to approximately 27%.

The AEL acquisition also resulted in the raising of $49 billion of fee-bearing capital to be managed by the asset management business.

• On September 17, 2024, we acquired a 51% stake in Castlelake’s fee-related earnings, a 7.5% stake in Castlelake's carried interest, 20% of returns from GP commitments, and 51% of GP commitments for in-market and future Castlelake funds for total cash consideration of approximately $489 million.

In addition, BWS committed to invest approximately $1 billion in Castlelake's investment strategies and funds.

• We launched our Catalytic Transition Fund with an initial close on September 23, 2024, of which $2.4 billion was raised in the year.

This new capital is inclusive of the $1 billion anchor investment from ALTÉRRA, the world’s largest private climate investment fund.

• On September 26, 2024, we completed our acquisition of Pinegrove Ventures (previously “SVB Capital”), the investment platform business of SVB Financial Group through Pinegrove Venture Partners (“Pinegrove”).

Pinegrove is our venture investment platform formed and owned in partnership with Sequoia Heritage, focused on providing secondary solutions within the growth and technology sector.

Pinegrove manages approximately $10 billion in assets.

• On February 10, 2025, Brookfield announced the launch of a €20 billion infrastructure investment program to support the deployment of AI infrastructure in France.

Up to €15 billion of data center investment will be led by Brookfield’s portfolio company, Data4, one of Europe’s largest data center developers, headquartered in Paris.

The investment of a further €5 billion is planned by Brookfield in France across associated AI infrastructure such as data transfer, chip storage and energy generation.

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.

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.

BISS’s strategy targets sectors in which Brookfield has established operations and significant asset expertise, drawing on the platform’s direct investment capabilities to source transactions and access differentiated opportunities.

• On June 4, 2025, Brookfield announced up to SEK 95 billion ($10 billion) of investment to support the development of AI infrastructure in Sweden.

This investment represents one of Brookfield’s largest AI investments in Europe and extends the partnership with the Swedish government, its public authorities, academia and businesses in the region.

• On October 1, 2025, Brookfield announced it raised over $4 billion for the first closing of Brookfield Infrastructure Debt Fund IV reflecting continued significant support from both existing and new investors.

• On October 2, 2025, we acquired a 51.3% economic interest in Angel Oak, a leading asset manager delivering innovative mortgage and consumer products, for total cash consideration of approximately $149 million.

This investment will reinforce Brookfield’s strategy of combining best-in-class credit managers alongside its direct investment capabilities across infrastructure credit, real estate credit, asset-backed finance, and corporate credit.

• On October 7, 2025, Brookfield announced the final institutional close for its flagship energy transition strategy, BGTF II, with $20 billion raised in fund commitments and strategic capital from a diverse range of existing and new investors.

In addition, BGTF II secured approximately $3.5 billion of co-investment into its portfolio, bringing the total capital raised across the strategy in this vintage to approximately $23.5 billion.

• On October 13, 2025, Brookfield and Oaktree announced that they have agreed on a proposed transaction whereby Brookfield will acquire the approximately 26% interest in Oaktree that it does not already own.

Upon completion of the proposed transaction, Brookfield will own 100% of Oaktree, one of the world’s premier credit managers, further strengthening Brookfield’s market-leading and broad-based credit platform.

Under the proposed terms of the transaction, BAM and BN will acquire all of the remaining common equity interests in the Oaktree business for total consideration of

approximately $3 billion.

The proposed transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions, and is expected to be accretive to both BAM and BN.

• On October 22, 2025, Brookfield announced the launch of BPE, an evergreen semi-liquid fund offering individual investors streamlined, diversified access to Brookfield’s global private equity platform through a single vehicle.

BPE provides investors streamlined access to Brookfield’s leading private equity platform through a simplified investment process that includes monthly subscriptions and a low investment minimum.

• On November 19, 2025, Brookfield announced the launch of a $100 billion global AI Infrastructure program in partnership with NVIDIA and the Kuwait Investment Authority (“KIA”).

Brookfield will anchor the program with the BAIIF, which launched with a target of $10 billion of equity commitments to invest in the backbone of AI.

BAIIF has already received $5 billion of capital commitments from a select group of institutional and industry partners, including Brookfield, NVIDIA and KIA.

BAIIF, together with additional capital from its co-investors and prudent financing, will acquire up to $100 billion of AI infrastructure assets, deploying investment across every stage of the value chain—from energy and land to data centers and compute.

• On December 9, 2025, Brookfield and Qai, Qatar’s AI company and a subsidiary of Qatar Investment Authority, announced a strategic partnership to establish a $20 billion joint venture focused on AI infrastructure in Qatar and select international markets.

Under the partnership, Brookfield and Qai will contribute capital and operating expertise to invest in AI infrastructure in Qatar, including the development of fully integrated AI facilities, to support the country’s rapidly expanding digital and AI ecosystem.

The partnership will benefit from strategic support from the Government of Qatar to invest in the skills and supply chain needed to support the backbone of AI infrastructure and the adoption of AI throughout Qatar.

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.

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.

Under the share repurchase program, which commenced on January 13, 2026 and is set to expire on January 12, 2027, BAM has, as of February 23, 2026, purchased 1,652,552 Class A Shares at an average price of $50.25.

On February 4, 2026, BAM announced the appointment of Connor Teskey as Chief Executive Officer of BAM, with Bruce Flatt continuing in his role as Chair of the Board of BAM, in addition to his role as Chief Executive Officer of BN.

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.

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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Carney's campaign, Brookfield accepted his resignation from BAM.

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.

Under the share purchase program, which commenced on January 11, 2024 and expired on January 10, 2025, BAM did not purchase any Class A Shares.

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”).

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.

On March 19, 2024, BAM announced the appointment of Hadley Peer Marshall as Chief Financial Officer of BAM, effective May 31, 2024.

On October 31, 2024, BAM announced that it changed its head office to New York, NY.

On April 24, 2025, BAM completed its inaugural offering of $750 million principal amount of 5.795% senior notes due 2035.

On September 4, 2025, BAM completed its offering of $750 million principal amount of 6.077% senior notes due 2055.

In October 2025, we and Cameco, our partner in Westinghouse Electric Company (“Westinghouse”), entered into an agreement with the U.S.

Government to establish a strategic partnership which is expected to accelerate the scale deployment of Westinghouse’s nuclear reactor technologies in the U.S.

and globally.

Under the terms of the agreement, once the U.S.

Government makes a final investment decision and enters into definitive agreements to complete the construction of new Westinghouse nuclear reactors in the

with an aggregate value of at least $80 billion before January 2029, a contingent profit interest in Westinghouse will vest for the U.S.

In addition, the agreement contemplates that the U.S.

Government will arrange financing and facilitate the permitting and approvals for new Westinghouse nuclear reactors to be built in the U.S.

On November 13, 2025, BAM completed its offering of $600 million principal amount of 4.653% senior notes due 2030 and $400 million principal amount of 5.298% senior notes due 2036.

Organizational Structure

The following simplified diagram illustrates our organizational structure as at March 7, 2025.

We have a team of over 2,500 investment and asset management professionals that are integral to the business, including individuals focused on our core investment strategies and those undertaking various corporate activities.

Approximately 270 of these are employed by BAM and the remainder are employed by the Asset Management Company and their subsidiaries.

In 2024, BAM provided the services of our employees to the Asset Management Company on a cost recovery basis under the Asset Management Services Agreement.

The following simplified diagram illustrates our organizational structure as at December 31, 2025.

the 73% of Class A Shares owned or controlled by BN includes approximately 4% held by subsidiaries of BWS.

We have a team of over 5,800 investment and asset management professionals and employees, with greater than 50% of such professionals located in the U.S.

and which includes Oaktree employees that will become BAM employees following the completion of the Oaktree Acquisition and approximately 1,500 fully-dedicated Brookfield operating employees, that are integral to the business, including individuals focused on our core investment strategies and those undertaking various corporate activities.

Our long-term approach to our business influences everything we do, including how we make investment decisions, how we support and oversee our businesses, and how we develop our people and compensate them.

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We have a group of dedicated operations professionals in all our key regions that have extensive experience leading businesses.

We take an active role in enhancing the performance of the assets and businesses we acquire.

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.

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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.

Globally, we are supported by approximately 250,000 full-time operating employees.

The chart below sets out our full-time operating employees by region as at December 31, 2025.

Other full time operating employees represents over 70 countries and no country makes up greater than 3% of the total balance.

BAM competes with many other firms in every aspect of our business, including raising funds, investments opportunities and hiring and retaining professionals.

“ 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.

BAM competes with many other firms in every aspect of our business, including fundraising, investment opportunities and hiring and retaining professionals.

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.

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Fund managers have also increasingly adopted investment strategies outside of their traditional focus.

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.

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.

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.

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Focus on Risk Culture

Maintain an effective risk culture that aligns our business strategy and activities with our risk tolerance

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 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

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.

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We ensure that we have the necessary capacity and resilience to respond to changing environments by evaluating both current and emerging risks.

We adhere to a robust risk management framework and methodology that is designed to enable comprehensive and consistent management of risk across the organization.

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.

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.

Focus on Risk Culture

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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.

Shared Execution

Given the diversified and decentralized nature of our operations, we seek to ensure that risk is managed as close to its source as possible and by management teams that have the most knowledge and expertise in the specific business or risk area.

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.

For risks that are more pervasive and correlated in their impact across the organization—such as liquidity, foreign exchange and interest rates or where we can bring specialized knowledge—we utilize a coordinated approach that is centralized amongst our corporate and business groups.

Management of strategic, reputational and regulatory and compliance risks are similarly coordinated to ensure consistent focus and implementation across the organization.

Oversight and Coordination

Centralized Oversight and Coordination

We have implemented strong governance practices to monitor and oversee our risk management program.

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• Risk Management Steering Committee:

supports the overall corporate risk management program, and coordinates risk assessment and mitigation on an enterprise-wide basis.

supports the overall 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.

the respective investment committee oversees the investment process and reviews and approves investment transactions of that business group.

• Conflicts Committee:

resolves potential conflict situations in the investment process and other corporate transactions.

resolves potential conflict situations related to investment processes and other corporate transactions.

• Financial Risk Oversight Committee:

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• Sustainability Leadership:

oversees, coordinates and implements activities related to sustainability, including current and future initiatives, and sector and market trends.

oversees, coordinates and implements activities related to sustainability, including reviewing current and future initiatives, and monitoring sector and market trends.

• Safety Leadership Committee:

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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.

Shared Execution

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.

Management of strategic, reputational and regulatory and compliance risks are similarly coordinated to ensure consistent focus and implementation across the organization.

Regulatory Matters

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Risk Factors—Risks Relating to our Business—We are subject to numerous laws, rules and regulatory requirements which may impact our business, including resulting in financial penalties, loss of business and/or damage to our reputation in instances of non-compliance”.

Intellectual Property

BAM has a non-exclusive, royalty-free license to use the name “Brookfield” and the “Brookfield” logo.

See “Part III—Item 13.

Certain Relationships and Related Transactions, and Director Independence—Trademark Sublicense Agreement”.

Other than under this limited license, BAM does not have a legal right to the “Brookfield” name or the “Brookfield” logo.

Sustainability

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We believe that value creation and sustainable business practices are complementary goals.

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.

Our investment strategy has remained unchanged throughout our firm’s history – we focus on utilizing our operational expertise to enhance long-term value through strategic and operational improvements within our operating businesses and portfolio companies.

Our primary objective is to deliver strong risk-adjusted returns without compromise to our fiduciary duty.

Our Sustainability Policy outlines our approach and is based on the following guiding principles:

Mitigate the impact of our operations on the environment

• Strive to minimize the environmental impact of operations and improve efficient use of resources over time.

• Support the ambition of reaching net-zero greenhouse gas (“GHG”) emissions by 2050 or sooner.

Strive to ensure the well-being and safety of employees

• Foster a positive work environment based on respect for human rights, valuing diversity and having zero tolerance for workplace discrimination, violence or harassment.

• Operate with leading health and safety practices to support the goal of achieving zero serious safety incidents.

Uphold strong governance practices

• Operate to the highest ethical standards by conducting business activities in accordance with our Code of Business Conduct and Ethics.

• Maintain strong stakeholder relationships through transparency and active engagement.

Be good corporate citizens

• Strive to ensure the interests, safety and well-being of the communities in which we operate are integrated into our business decisions.

• Support philanthropy and volunteerism by our employees.

Our global sustainability policy codifies our longstanding strategy of integrating sustainability considerations into our decision-making.

This policy is reviewed at least annually and, where applicable, updated periodically by our senior executives, as well as each of our business groups.

Sustainability Affiliations and Partnerships

Through our engagement with sustainability frameworks and organizations, we continue to evolve our sustainability reporting and protocols to align with leading practices.

The following are some of the frameworks and organizations with which we are affiliated:

• Principles for Responsible Investment (“PRI”) – We have been signatories to the PRI since 2020 and complete the PRI assessment annually, which reinforces our longstanding commitment to responsible investment and sustainability best practices.

• International Financial Reporting Standards (“IFRS”) Sustainability Alliance – We are members of the IFRS Sustainability Alliance, a global program established to develop globally accepted accounting and sustainability disclosures.

We review all of our memberships with external organizations periodically or in the event of material changes in their strategy or

operations to determine if they continue to be aligned with our objectives.

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.

Our investment strategy has remained consistent throughout our history—we focus on utilizing our operational expertise to enhance long-term value through strategic and operational improvements within our operating businesses and portfolio companies.

Our Sustainability Policy codifies our longstanding strategy of integrating sustainability considerations into decision-making.

It is based on the following guiding principles:

mitigating the impact of our operations on the environment;

striving to promote the well-being and safety of our workforce;

upholding strong governance practices and acting as good corporate citizens.

For further information, we publish on our website an annual sustainability report, which provides details about our approach to integrating sustainability across our business.

Our disclosures consider the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) standards, and are aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Sustainability Organization and Governance

Upholding robust sustainability programs throughout our firm, business groups, and encouraging our portfolio companies to do the same, remains an important priority.

We understand that good governance is essential to sustainable business operations.

The oversight of sustainability is integrated into our overall governance framework and is aligned with our governance approach.

We are committed to upholding strong practices to monitor and oversee our business, including our overall approach to sustainability.

Our Board is focused on maintaining strong corporate governance and prioritizing the interests of our shareholders.

The Board oversees our business, including reviewing major strategic initiatives and receiving progress reports on the firm’s sustainability initiatives throughout the year.

Our approach to sustainability has sponsorship and oversight from each business group’s CEO and sustainability leads, supported by senior executives, including the Chief Operating Officer (COO) of Brookfield (Governance, Operations and Risk Management) and BAM’s CEO of Renewable Power and Transition (Decarbonization and Investment), working in collaboration with BAM’s Chief Financial Officer (CFO) (GHG Reporting and Measurement).

Since sustainability covers a significant range of priorities that are varied in scope, we believe that sustainability initiatives should be overseen by individuals closest to the particular business activity.

Functional leads are responsible for developing, implementing and monitoring relevant sustainability factors within their functional area, such as Technology Services and Human Resources.

Management teams and committees, including the Decarbonization Steering Committee and Safety Leadership Committee, bring together expertise to address key sustainability areas.

This focuses on proper application and coordination of approaches across our business and functional groups.

We organize working groups dedicated to specialized areas, such as the Sustainability Working Group and Decarbonization Operational Committee, to develop and coordinate initiatives to advance our overall sustainability efforts.

Our Board oversees our business, including reviewing major strategic initiatives and receiving progress reports on the firm’s sustainability initiatives throughout the year.

Our approach to sustainability has sponsorship and oversight from the CEOs and sustainability leads of each business group, supported by senior executives.

Functional leaders (i.e., Technology Services and Human Resources) are responsible for developing, implementing and monitoring relevant sustainability factors within their functional area.

Integrating Sustainability into Our Investment Process

As part of our due diligence over investments where we have control or significant influence, we seek to assess sustainability-related opportunities and risks and factor them into the overall investment decision.

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.

Where warranted, we perform deeper due diligence, working with internal and third-party experts, as appropriate.

Investments, other than de minimis or follow on investments, must be approved by the applicable Investment Committee.

Investment teams present the Investment Committee with the merits of the transaction, its material risks, mitigants and significant opportunities for improvement, including sustainability aspects and their implications for investment returns.

As part of each acquisition, investment teams develop a customized integration plan that encompasses, among other items, significant sustainability-related matters for evaluation or implementation.

We believe there is a strong correlation between managing these considerations appropriately and enhancing investment returns.

Consistent with our management approach, it is the responsibility of management teams within each portfolio company to manage sustainability opportunities and risks through the investment’s life cycle, supported by our applicable investment teams.

The combination of local accountability and expertise along with our investment and operating experience and insight is important when managing a wide range of asset types across jurisdictions.

We leverage these capabilities in collaborating on sustainability initiatives, where appropriate, to drive returns.

Where appropriate, we encourage our portfolio companies to organize training on a variety of sustainability matters for relevant staff.

Management teams regularly report to their respective boards of directors from both financial and operating perspectives, including key performance indicators that incorporate material sustainability factors, such as health and safety, compliance with regulatory requirements, environmental management, and, increasingly, GHG emissions.

For investments where we do not have a controlling interest, for example, where we are a debt investor or in other circumstances where we do not have the ability to exercise influence through our contractual rights, we actively monitor the performance of our investments and, where appropriate, utilize our stewardship and engagement practices to encourage sustainability outcomes that are aligned with our sustainability approach.

Investment teams present the Investment Committee with the merits of each transaction, its material risks, mitigants and significant opportunities for improvement, including sustainability aspects and their potential implications for investment returns.

As part of each acquisition, investment teams develop a customized integration plan that encompasses, among other items, material sustainability-related matters for evaluation or implementation.

When preparing an asset for divestiture, we seek to outline potential value creation deriving from several different factors, including relevant sustainability considerations.

Where applicable, we also prepare both qualitative and quantitative data that summarize the sustainability performance of the investment and provide a holistic understanding of how we managed the investment during the holding period.

Stewardship and Engagement

In managing our assets, we leverage our significant influence and operating capabilities to collaborate with our portfolio companies.

We encourage sound sustainability practices that are essential for building resilient and profitable businesses, aiming to create long-term value for our investors and stakeholders.

Due to the operational nature of our value creation methods, we focus on investing in private markets where we can often acquire controlling interests, or positions of significant influence, in order to deploy our operations-oriented investment strategies.

As a result, proxy voting does not represent a significant portion of our investment activities.

The majority of our proxy voting occurs within Brookfield’s Public Securities Group, which represents a very small portion of our overall business (approximately 1% of our AUM as of December 31, 2024).

The following is a summary of some of the sustainability initiatives that we undertook in 2024.

Environmental

Emissions Reduction Initiatives

As the world is transitioning to a lower-carbon economy, we view emissions reduction as a material value-creation opportunity.

In 2021, we set an ambition to reach net zero by 2050 or sooner across operationally managed investments.

Our net-zero ambition targets assets and investments where we can directly influence outcomes—termed “Operationally Managed Investments”—or those already pursuing a transition strategy for economic benefit.

In selecting which of these assets are capable of making meaningful progress toward decarbonization targets, we prioritize Operationally Managed Investments where:

• We consider such decarbonization steps will add value over the life of the investment;

• We can operationally manage the outcomes;

• We are able to identify and implement actionable initiatives in the near term.

Driving efficiency and, consequently, value is a cornerstone of our operations-oriented approach to investing.

Therefore, we would expect the quantity and timing of GHG emissions reductions of our portfolio companies over time to be slightly ahead of industry and regional averages.

While we view decarbonization as a meaningful operational efficiency lever, we acknowledge that transitioning to a net zero future is an ambition that is subject to many unknowns and uncertainties, including the future availability of required technologies, such as the need for greater battery storage capacity to support the introduction of greater intermittent renewable energy within electricity grids.

Despite these challenges, we work with our portfolio companies to identify operational value-enhancement and decarbonization opportunities, including areas such as energy efficiency and electrification measures, amongst others, where our operations teams can work closely with senior management of our portfolio companies to support the implementation of these value-enhancing improvements.

In doing so, we are supporting our portfolio companies in maximizing their value, while also achieving their decarbonization potential.

This contributes to a future lower emissions economy, while delivering strong risk-adjusted returns for our investors.

We eschew firm-wide policies purporting to exclude industries or sectors for investment across the energy landscape, including in respect of fossil-fuel-based generation, transportation, and distribution.

Nor do we believe in divestment of high-emitting industries.

We believe that there is significant value in supporting decarbonization initiatives of the highest-emitting industries where we can deliver the greatest level of impact.

Leveraging our leading capabilities in development and operation of renewable power over the last 30 years, we launched our inaugural Brookfield Global Transition Fund (“BGTF I”), raising $15 billion of capital in 2022.

This transition strategy focuses on building renewable power, providing capital to other decarbonization solutions, and targeting high-emission sectors to help businesses transition to sustainable business models and drive long-term value.

Following BGTF I’s success, we launched BGTF II in 2023, which is expected to surpass the scale of its predecessor.

Our investments in BGTF I and II aim to deliver strong risk-adjusted financial returns and meaningful decarbonization impacts.

These funds seek to invest in clean energy expansion, sustainable solutions (i.e., carbon capture and storage, waste recycling,) and transforming companies in carbon-intensive sectors to more sustainable and value accretive business models.

Beyond our global transition fund strategy, we do not limit our investments to those that meet specific sustainability criteria or standards.

Through the expertise developed within our global transition strategy, we can offer resources and tools to help companies better identify operational value-enhancement and decarbonization opportunities.

Across all investments, we invest capital on behalf of our clients with the primary objective of delivering strong risk-adjusted returns.

Water, Waste and Biodiversity

Reducing the impact of our overall water consumption and waste generation helps build efficient systems, resiliency in our businesses and contributes to a sustainable future.

We seek to utilize leading practices to efficiently monitor water usage and for certain portfolio companies, manage performance, with the objective to seek opportunities for water consumption reduction.

In addition, we seek to adhere to all applicable local and regional waste regulations and track waste and recycling metrics.

Encouraging the conservation of nature and its associated living organisms and ecosystem services is an important component in achieving our decarbonization goals and managing physical risks related to climate change.

Culture Matters:

Human Capital Development

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we hire for the potential of all the future positions they might hold and that will contribute to the broader success of the firm.

We actively look for people who want to learn, grow, and develop—and demonstrate a willingness to be stretched outside their comfort zone.

• Entrepreneurship:

Our flat organization is results-oriented—responsibility is earned based on initiative and hard work, rather than job title—and decisions are made close to the action.

This principle is not uncommon, but we have encouraged our entrepreneurial spirit throughout our growth during the past 20 years.

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.

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We expect employees to understand their strengths, recognize their weaknesses, be willing to stretch outside their comfort zones, and be willing to ask for help when necessary.

The three attributes—collaboration, entrepreneurship, and discipline—form the foundation of Brookfield and have been critical to the success of the partnership in building relationships that are long-lasting and mutually rewarding.

By hiring talented people and giving them opportunities to move into different businesses, we have been able to build our expertise into a broad ecosystem that facilitates collaboration across different areas and geographies as needed.

The teams draw on sound data and expertise to identify emergent themes—informing their investment process and enabling us to draw upon actionable intelligence for the benefit of its investors.

Employee Composition

The composition and makeup of our employee base is indicative of our focus that, as we grow, our people reflect the communities in which we operate.

We recognize that a workforce encompassing a variety of backgrounds is critical to our success.

A diverse workforce not only reinforces our core principles of long-term focus, alignment of interests, and collaboration, but also provides for a more dynamic and interesting work environment.

We are committed to a hiring process that is objective, nondiscriminatory and in compliance with all applicable legislation and good governance.

It is grounded in our commitment to provide equal employment opportunities with the objective of attracting the highest-qualified talent to our business.

We proactively recruit people who align with the attributes of a Brookfield leader and have the potential to develop within our organization.

Our succession process focuses on the development of early career candidates through stretch roles and exposure.

Occupational Health and Safety

Managing health and safety risk is an integral part of the management of our business.

Our goal is to have zero serious safety incidents.

We have implemented a health and safety governance initiative to propagate a strong health and safety culture, encourage the sharing of best practices and support the continuous improvement of safety performance to help eliminate serious safety incidents.

The initiative is overseen by the Safety Leadership Committee, which comprises senior operations executives from across our business groups and regions.

Portfolio company management is responsible for ensuring that their company’s health and safety policies and systems are developed, operationalized, and reviewed regularly to address their specific risk areas.

Portfolio company CEOs are

accountable for the safety performance of their companies, and they report to their respective board of directors on this safety performance, safety incidents, and the status of improvement initiatives.

Reports on overall health and safety trends and key initiatives are provided to the Board as part of the quarterly operational risk update.

Human Rights and Modern Slavery

Regarding human rights, we are committed to conducting our business in an ethical and responsible manner, including by carrying out our activities in a manner that respects fundamental human rights and supports the prevention of human rights violations within our business.

We strive to embed this into our core business activities, including training, communications, contracts and due diligence processes set out in our Human Rights and Anti-Modern Slavery Policy (“Human Rights Policy”), Sustainability Due Diligence Protocol and Vendor Management Program.

Integrity, fairness and respect are hallmarks of our culture, including carrying out our activities by respecting fundamental human rights and our efforts to identify and prevent human rights violations within our business and supply chain.

We are committed to policies aimed at maintaining a workplace free of discrimination, violence and harassment, and we expect our staff to act in a way which promotes a positive working environment.

Our Human Rights Policy aims to codify our approach to minimizing the risk of modern slavery within our business and supply chain.

We also have specific processes aimed at identifying human rights and modern slavery as part of due diligence for new investments, which include risk assessments, remedies, training and governance.

Where appropriate, these processes give consideration to the Organization for Economic Co-operation and Development (“OECD”) Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights as part of our due diligence process and ongoing management.

In addition, our Human Rights Policy consolidates the relevant commitments set out in our Code of Conduct, Sustainability Policy, financial crimes policies, and Whistleblowing Policy.

We have several additional policies and procedures that provide guidance on the identification of human rights and modern slavery risks and the steps to be taken to mitigate these risks.

Strong governance is essential to sustainable business operations, and we aim to conduct our business according to high ethical and legal standards.

Sustainability Regulation and Frameworks

Our governance practices are the foundation upon which we operate our business.

We continuously adapt and enhance our policies to meet evolving standards and regulations across jurisdictions in which we operate.

Data Privacy and Cybersecurity

Data privacy and cybersecurity remain key sustainability focus areas for us.

We undertake initiatives to further enhance our data protection and threat-intelligence capabilities, and to improve our third-party risk management processes.

We review and update our cybersecurity program at least annually and conduct regular external-party assessments of our program maturity based on the National Institute of Standards and Technology Cybersecurity Framework.

Additionally, we have continued mandatory cybersecurity education for all employees and enhanced our phishing simulations to include more advanced simulations and social engineering.

For additional disclosure on our approach to data privacy and cybersecurity, see “Part I—Item 1C.

Cybersecurity”, below.

Website and Available Information

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We make available free of charge on our website or provide a link on our website to our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.

To access these filings, go to our website, and then visit the “Regulatory Filings” section under the “Reports & Filings” tab.

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.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business