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Item 7. Management’s Discussion and Analysis

2026-03-02 compared with 2025-03-17 · 565 added, 663 removed, 575 unchanged (68% of the section changed)

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The following discussion and analysis should be read in conjunction with BAM's consolidated financial statements and the related notes included within this Annual Report.

This section of the Annual Report discusses activity as of and for the years ended December 31, 2025 and 2024.

For discussion on activity for the year ended December 31, 2024 and period-over-period analysis on results for the year ended December 31, 2024 to 2023, refer to Part II, “Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended December 31, 2024, which specific discussion is incorporated herein by reference.

Business Environment

In 2024, global GDP growth is expected to have risen by 3.2% compared to 3.1% in 2023, above the projection of 2.9% at the beginning of 2024.

This economic activity was supported by lower inflation, steady employment growth, and less restrictive monetary policy.

Labor markets continued to ease, though unemployment generally remained at or near historical lows.

Additionally, headline inflation has now returned to target in a number of advanced and emerging-market economies despite lingering pressures in service sectors.

Over the course of 2024, differences in economic performance and monetary policy across countries emerged following the coordinated rate hiking cycle that came before it.

Some economies, such as the United States and India, demonstrated above-average growth, whereas others, including the Eurozone, the U.K.

and China, grew at slower rates.

GDP growth in the United States remained healthy at 2.8% for 2024, where robust consumption growth was supported by real wage gains.

Core consumer price inflation fell from 3.9% at the end of 2023 to 3.3% at the end of 2024.

Labor market tightness gradually eased, with the ratio of job vacancies to the number of unemployed people continuing to decline.

The unemployment rate increased slightly over the year from 3.8% to 4.1%, remaining low by historical standards, led by the public sector being a strong source of labor demand, with its contribution to total employment growth in 2024 being significantly above pre‑pandemic levels.

Higher interest rates have had the desired effect of bringing inflation down closer to central bank targets in most developed economies.

In 2024, monetary policy shifted as most major central banks began easing cycles.

By the latter half of the year, most central banks across advanced economies cut policy rates at least once.

Federal Open Market Committee policymakers started the Fed's easing cycle with a larger-than-expected 50 basis point rate cut in September before transitioning to a more gradual pace of easing.

Market expectations for Federal Reserve monetary policy fluctuated materially over the course of the year.

This saw 2-year treasury yields begin the year at 4.3%, rise above 5.0% in April, fall to 3.8% after unexpectedly weak payroll data, before climbing back to 4.2% to end the year.

The Fed's Summary of Economic Projections implies two 25 basis point cuts in 2025, and the Fed's terminal rate has been lifted to 3% from 2.9% previously.

Elsewhere, easing cycles have been gradual, as in the case of the Bank of England with two 25 basis point rate cuts, while others cut rates at a faster pace, such as in the Eurozone with four 25 basis point deposit rate cuts and the Bank of Canada with three 25 basis point and two 50 basis point rate cuts.

Conversely, the Bank of Japan ended its negative interest rate policy in March with its first-rate hike since 2007.

Policymakers in emerging markets were more varied.

The People's Bank of China continued lowering lending rates in 2024, the Reserve Bank of India held steady, while in Latin America, the Brazilian Central Bank returned to rate hikes.

Credit spreads on both investment grade and high yield bond indices ended the year tighter, after a spike in early August due to concerns over a slowdown.

Credit default swaps on both indices also tightened over the course of the year.

primary markets for investment grade and high yield bonds continued to recover to close to recent highs with gross issuances increasing by 25% and 66% over the prior year, respectively.

Over the course of 2024, demand for credit improved and bond funds recorded their highest inflows over the past decade, as investors sought attractive yields against a backdrop of easing from major central banks.

Equity market performance was strong in 2024 as markets grew increasingly optimistic relative to expectations at the beginning of the year.

The MSCI World Index increased by 17%.

Additionally, the S&P 500 and Nasdaq increased by 23% and 25%, respectively.

For the first time in two and a half decades, the S&P 500 achieved consecutive returns of more than 20% in both 2023 and 2024.

Global M&A volumes increased to $3.5 trillion in 2024 from $3.2 trillion in 2023.

Lower interest rates and optimism on growth increased deal volumes from private equities and other financial investors as that class began to regain ground with a 29% increase in deal values compared to the prior year.

Corporate M&A, which is less influenced by small movements in the cost of debt, is on track to end the year 12% above 2023.

Initial public offering (“IPO”) activity in the Americas saw a strong recovery, reaching its highest IPO activity since 2021, in both volume and proceeds, with 205 IPO’s raising US$33.1billion.

Following a 13% contraction in 2023, commodity prices were largely flat in 2024 as measured by the Bloomberg Commodity Index, as declines in energy and agriculture were balanced by price increases in metals.

Precious metals surged 19%, as investors sought haven in gold.

For the second consecutive year, energy declined significantly by 8%, primarily driven by a 14% drop in natural gas prices resulting from increased production and lower demand.

After the spike in April to $91 per barrel due to geopolitical tensions and output cuts, brent oil prices declined through the remainder of 2024 to end the year at $75 per barrel.

During 2024, a large portion of the world's population took part in general elections that resulted in incumbent governments losing power or suffering setbacks.

presidential election saw the return of former President Donald Trump and Republican

majorities in both houses of Congress.

Financial markets and risk assets performed strongly against this backdrop with limited volatility.

In the U.K., politics moved to the left with the Labor Party ousting the incumbent Conservative Party with a significant majority.

Japan's Lower House election saw the incumbent party that has governed for most of the post-World War II era lose their majority.

In France, President Macron’s decision to hold snap elections resulted in losses to left-wing and right-wing parties.

However, uncertainty over the policies that new governments will implement, as well as geopolitics and the impact on economic activity, may continue to be a feature of the near-term outlook.

In 2025, global GDP growth is estimated to have risen by 3.2% compared to 3.3% in 2024.

Economic activity continued to be supported by easing inflationary pressures, resilient employment conditions, and the gradual normalization of monetary policy across most advanced economies.

Labor markets continued to rebalance, though unemployment rates generally remained low by historical standards.

Headline inflation in most advanced economies remained near central bank targets, with services inflation and wage growth proving more persistent.

Divergences in economic performance across regions persisted in 2025.

and parts of Asia continued to outperform, supported by domestic demand and investment, while growth in the Eurozone, the United Kingdom, and China remained comparatively subdued due to structural constraints and weaker demand.

economic growth slowed modestly in 2025 to 2.1% from the elevated pace of 2.8% recorded in 2024.

Inflation continued to ease, with core measures trending lower over the year.

Labor market conditions cooled gradually, reflected in declining job openings and improved labor force participation.

The unemployment rate increased modestly but remained low by historical standards, indicating a decelerating yet resilient labor market.

Monetary policy normalization continued across most developed markets in 2025.

Following the initiation of easing cycles in 2024, central banks generally adopted a more measured pace of rate adjustments, balancing progress on inflation against financial stability considerations and elevated fiscal issuance.

Policy rates across advanced economies ended the year below peak levels but remained above pre‑pandemic norms.

In the U.S., the Federal Reserve continued its easing cycle with 75 basis points of cuts in 2025, in line with improving inflation dynamics and moderating growth.

Treasury yields remained volatile, reflecting shifting expectations for the terminal policy rate, fiscal supply dynamics, and global demand for safe assets.

Elsewhere, the European Central Bank and the Bank of England continued gradual easing, while the Bank of Japan proceeded cautiously following the exit from negative interest rate policy.

Monetary policy outcomes in emerging markets varied, reflecting differences in inflation trajectories, currency pressures, and domestic growth conditions.

Credit market conditions remained constructive in 2025.

Investment grade and high yield credit spreads stayed tight by historical standards, despite episodic volatility driven by macroeconomic data releases and geopolitical developments.

Primary market issuance remained supported by refinancing activity and sustained investor demand for income‑oriented assets.

In 2025, equity markets delivered strong returns following the robust performance seen in prior years.

The S&P 500 posted a total return of ~17.9% and reached new all-time highs, supported by easing monetary policy and resilient corporate earnings.

The Nasdaq Composite and Nasdaq-100 also registered notable gains of about ~21%, driven by strength in technology and growth sectors.

International equity markets outperformed U.S.

benchmarks, with broad global indices such as the MSCI All Country World ex-U.S.

and other developed market indices rising by ~30%.

Global merger and acquisition activity improved further in 2025, supported by lower financing costs and improved corporate confidence.

The rebound was global, with strong growth in the number and value of deals in the U.S., Asia, Europe, the Middle East and Africa.

The global initial public offering market showed signs of recovery and stabilization during 2025, with total proceeds increasing compared with the prior year across a broad range of sectors.

Political developments continued to influence the global macroeconomic backdrop in 2025 following political elections in 2024.

Markets adjusted to evolving policy priorities in the U.S., Europe, and parts of Asia.

While financial markets remained relatively resilient, uncertainty related to fiscal policy, geopolitics, and trade dynamics continued to affect investor sentiment and capital allocation decisions.

Our business is well-positioned within the evolving alternative asset management landscape by leveraging a strategic and agile approach to investment opportunities.

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Income Statement Analysis

Consolidated Statement of Comprehensive Income

The following table summarizes the financial results of BAM for the years ended December 31, 2024, 2023 and the period from July 4, 2022 to December 31, 2022:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

2024 2023 2022 2024 vs 2023 2023 vs 2022

Operating recoveries $ 482 $ 383 $ 37 $ 99 $ 346

Compensation and benefits (368) (326) (1) (42) (325)

Other operating expense (7) (5) (35) (2) 30

Carried interest allocation compensation

Realized (61) (24) — (37) (24)

Unrealized (59) (38) (3) (21) (35)

Total carried interest allocation compensation (120) (62) (3) (58) (59)

Interest expense (16) (9) — (7) (9)

Total expenses (511) (402) (39) (109) (363)

Share of income from Brookfield Asset Management ULC 570 470 21 100 449

Net income $ 541 $ 451 $ 19 $ 90 $ 432

Net income consists of BAM’s equity interest in the earnings of the Asset Management Company and compensation and benefit costs, primarily attributable to executive compensation costs of BAM and unrealized carried interest compensation expense.

A material portion of these costs are reimbursed by BN and the Asset Management Company in accordance with the Relationship Agreement and the Asset Management Services Agreement.

For the years ended December 31, 2024 and 2023

During the year ended December 31, 2024, BAM recorded net income of $541 million, compared to $451 million in the prior year.

On May 2, 2024, Brookfield Wealth Solutions (“BWS”) completed the acquisition of the remaining outstanding common stock of American Equity Investment Life Holding Company (“AEL”) that it did not already own.

In connection with the transaction, BAM issued approximately 28.8 million Class A Shares totaling consideration of $1.1 billion to BN in exchange for 28.8 million common shares of the Asset Management Company (the “AEL Mandate”).

The AEL Mandate was non-dilutive to BAM Ltd.

shareholders and increased BAM's ownership in the Asset Management Company from approximately 25% to approximately 27%.

The increase in net income compared to the prior year was driven by the higher income of the Asset Management Company and our higher ownership resulting from the aforementioned AEL Mandate.

This was partially offset by higher interest expense on the credit facility with the Asset Management Company and higher non-recoverable compensation costs.

Refer to the following discussion for details on the earnings of the Asset Management Company.

For the year ended December 31, 2023 and the period from July 4, 2022 to December 31, 2022

During the year ended December 31, 2023, BAM recorded net income of $451 million compared to $19 million for the period from July 4, 2022 to December 31, 2022.

Net income of $19 million from the comparative period represents earnings from December 9, 2022 (the date of the 2022 Arrangement) to December 31, 2022 compared to a full year of net income in 2023.

Refer to the following discussion for details on the earnings of the Asset Management Company.

Consolidated and Combined Statement of Operations

The following table summarizes the Consolidated and Combined Statements of Operations for the Asset Management Company for the years ended December 31, 2024, 2023 and 2022:

Consolidated Statements of Operations

The following table summarizes the consolidated statements of operations for BAM for the years ended December 31, 2025, 2024 and 2023:

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2024 2023 2022 2024 vs 2023 2023 vs 2022

2025 2024 2023 2025 vs 2024 2024 vs 2023

Base management and advisory fees $ 3,384 $ 2,957 $ 2,766 $ 427 $ 191

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Interest and dividend revenue 98 143 172 (45) (29)

Interest and dividend revenue of consolidated funds 31 — — 31 —

Other revenues 535 440 349 95 91

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Total carried interest allocation compensation

(146) (93) (86) (53) (7)

Interest expense (87) (22) (14) (65) (8)

Interest expense of consolidated funds (28) — — (28) —

Total expenses (2,044) (1,680) (1,546) (364) (134)

Other (expenses) income, net (93) (129) 1,090 36 (1,219)

Other expenses, net (297) (93) (129) (204) 36

Share of income from equity method investments 402 339 167 63 172

Other income, net of consolidated funds 47 — — 47 —

Income before taxes 2,925 2,546 2,554 379 (8)

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Net income 2,398 2,108 2,137 290 (29)

Net (income) loss attributable to:

Redeemable non-controlling interests in consolidated funds — — (909) — 909

Net loss (income) attributable to:

Preferred shares redeemable non-controlling interest 480 211 (262) 269 473

Non-controlling interest (151) (36) (6) (115) (30)

Non-controlling interest in consolidated entities (369) (151) (36) (218) (115)

Non-controlling interests in consolidated funds (24) — — (24) —

Net income attributable to the common stockholders $ 2,485 $ 2,168 $ 1,839 $ 317 $ 329

The asset management business primarily generates revenue from fees earned pursuant to contractual arrangements with funds, publicly traded vehicles, and investors as well as transaction and advisory fees.

These fees include base management fees, incentive distribution rights, and certain advisory fees.

Base management fees are long-term, recurring in nature, and correspond to fundraising activity, net asset values of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBU.

Incentive distribution rights are performance fees earned from BIP and BEP for exceeding predetermined distribution thresholds, are long-term, and are not subject to clawback.

The asset management business is entitled to carried interest assuming certain investment returns are achieved, as well as incentive management fees in certain of our structures where we are entitled to contractual fees from an investment fund based on achieving prescribed investment returns.

BAM primarily generates revenue from fees earned pursuant to contractual arrangements with funds, publicly traded vehicles, and investors, as well as transaction and advisory fees.

These fees include base management fees, incentive fees, and certain advisory fees.

Base management fees are long-term, recurring in nature, and correspond to fundraising activity, NAVs of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBU.

Incentive fees are performance fees earned from BIP and BEP for exceeding predetermined distribution thresholds, are long-term, and are not subject to clawback.

Incentive fees also include performance fees earned from BBU for exceeding the current high watermark threshold and are not subject to clawback.

BAM is entitled to carried interest allocations assuming certain investment returns are achieved, as well as incentive management fees in certain of our structures where we are entitled to contractual fees from an investment fund based on achieving prescribed investment returns.

The composition of our revenues will vary based on market conditions and the cyclical nature of our businesses.

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Fair values are affected by changes in the fundamentals of our investments, the industries in which they operate, the overall economy, and other market conditions.

The impact of fair values of our underlying investments throughout market cycles may result in material increases or decreases to carry generated, net of expenses.

Expenses within our asset management business primarily include employee base compensation, bonuses, and share-based compensation.

The impact of fair values of our underlying investments throughout market cycles may result in material increases or decreases to carried interest generated, net of expenses.

Expenses primarily include employee base compensation, bonuses, and share-based compensation.

Period over period changes in employee base compensation and bonuses generally result from changes in headcount and annual salary changes.

Share-based awards are granted in the first quarter of each year and generally vest over 5 years.

Equity settled compensation awards vest on a graded basis over the vesting period and cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of BAM Ltd.

Class A Shares.

Therefore, for cash settled share-based compensation, an increase or decrease in the share price of BAM Ltd.

will result in share-based compensation expense or recovery.

Therefore, for cash settled share-based compensation, an increase or decrease in the share price of BAM will result in share-based compensation expense or recovery.

For the years ended December 31, 2025 and 2024

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This compares to net income of $2.1 billion for the year ended December 31, 2024, of which $2.2 billion was attributable to common stockholders.

Revenues for the year ended December 31, 2024 were $4.0 billion, which represents a decrease of $82 million compared to $4.1 billion of revenue for the year ended December 31, 2023.

Revenues for the year ended December 31, 2025 were $4.8 billion, which represents an increase of $837 million or 21% compared to $4.0 billion of revenue for the year ended December 31, 2024.

Base Management and Advisory Fees

Base management and advisory fees for the year ended December 31, 2025 were $3.4 billion, which represents an increase of $427 million or 14% compared to the year ended December 31, 2024.

The increase was predominantly driven by the AEL Mandate, resulting in $49 billion of inflows of Fee-Bearing Capital, as well as annuity-related inflows and other insurance capital generated in BWS.

Management fee revenues also increased due to incremental contributions from capital raised for our latest flagship funds, capital deployed across our complementary strategies, as well as a higher trading price of BBU.

These increases were partially offset by lower trading prices of BIP, lower net asset value of BPG, and the end of the investment period of certain of our older vintage funds.

Management fee revenues increased by $123 million from capital raised for the fifth vintage of our real estate flagship fund, $114 million from capital raised for the second vintage of our global transition flagship fund, and $65 million attributable to fundraising from our perpetual infrastructure complementary strategies.

In addition, management fees increased $55 million from insurance capital inflows from BWS and $44 million from a higher trading price of BIP, BEP, and BBU.

These increases were partially offset by $17 million of lower fees from earlier vintages of our real estate flagship funds and certain infrastructure funds as a result of monetizations.

Incentive Fees

Incentive fees for the year ended December 31, 2024, were $424 million, an increase of $48 million or 13% from the year ended December 31, 2023, driven by higher incentive distribution fees earned due to growth in BIP and BEP's dividends of 6% and 5%, respectively.

Incentive fees for the year ended December 31, 2025, were $560 million, an increase of $136 million or 32% from the year ended December 31, 2024.

This increase was primarily driven by BBU performance fees of $95 million as a result of the share price exceeding the previous high watermark.

In addition, incremental incentive fees were recognized as a result of a 6% growth in BIP dividends of $24 million and 5% growth in BEP dividends of $17 million.

Carried Interest Allocations

Realized carried interest allocations were $25 million for the year ended December 31, 2024, which represents a decrease of $26 million compared to the year ended December 31, 2023.

Realized carried interest allocations in the current and prior year were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies.

All realized carried interest income in both the year ended December 31, 2024 and December 31, 2023, net of carry compensation related to mature funds are attributable to BN through our redeemable preferred shares.

The unrealized carried interest allocations reversal of $9 million for the year ended December 31, 2024 represents a decrease of $357 million compared to the year ended December 31, 2023.

The change reflects lower valuations across our real estate flagship funds, which is partially offset by higher valuations in our global transition and infrastructure flagship funds.

Carried interest allocations generated by new funds are 66.7% attributable to the asset management business and 33.3% to BN.

Within the Consolidated and Combined Statements of Operations, carry interest allocations are presented on a 100% basis and the portion attributable to BN is presented in Net Income Attributable to Non-Controlling Interest.

Unrealized carried interest allocations attributable to the asset management business were $257 million for the year ended December 31, 2024, compared to $109 million for the year ended December 31, 2023.

Carried interest allocations are a performance fee arrangement which is earned from those arrangements where BAM has a general partner capital interest and is entitled to a disproportionate allocation of investment income.

Each of these general partners is generally entitled to a carried interest that allocates to it 20% of the net profits realized by the limited partners from the fund’s investment subject to the return of contributed capital and a preferred return of typically 8% per annum to the limited partners.

At the end of each reporting period, the Company calculates the balance of accrued carried interest that would be due to BAM for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized.

Realized carried interest allocations were $nil for the year ended December 31, 2025, which represents a net decrease of $25 million compared to the year ended December 31, 2024.

Realized carried interest allocations in the prior year were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies.

All realized carried interest income for the year ended December 31, 2024, net of carried interest compensation related to mature funds and are attributable to BN through our redeemable preferred shares.

The unrealized carried interest allocations of $209 million for the year ended December 31, 2025 represents an increase of $218 million compared to the year ended December 31, 2024.

The gross increase of $943 million compared to the prior year reflects changes in fund valuations associated with the fifth vintage of our infrastructure flagship fund of $416 million and the first vintage of our global transition flagship fund for $297 million.

In addition, $187 million of increases were associated with various private equity funds including the sixth vintage of our private equity flagship fund.

This was partially offset by a decrease of $734 million compared to the prior year reflecting lower relative valuations across various mature real estate flagship funds.

Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN.

Within the consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities.

Unrealized carried interest allocations attributable to BAM were $629 million for the year ended December 31, 2025, compared to $257 million for the year ended December 31, 2024.

The following table presents the carried interest in new funds, and related performance compensation by investment strategy.

Net New Fund Carried Interest

FOR THE YEAR ENDED DECEMBER 31,

Carried interest allocations 1

Carried interest compensation

Carried interest, net

Carried interest allocations 1

interest compensation

Carried interest, net

Infrastructure

$ 420 $ (13) $ 407 $ 151 $ — $ 151

Renewable power and transition

297 (17) 280 166 (2) 164

Private equity

187 (18) 169 89 (3) 86

39 (5) 34 (18) (1) (19)

$ 943 $ (53) $ 890 $ 388 $ (6) $ 382

Carried interest generated within our partner managers in Credit is presented within the investment balance of our partner managers rather than accrued carried interest and as a result is excluded from the table above.

The following table presents the change in accrued carried interest in new funds by investment strategy.

2024 Activity during the year

AS AT DECEMBER 31,

Accrued carried

interest allocations 1

Accrued carried interest allocations 1

Infrastructure

$ 150 $ 420 $ — $ 570

Renewable power and transition

237 297 — 534

Private equity

276 187 — 463

$ 693 $ 943 $ — $ 1,636

Interest and Dividend Revenue

Interest and dividend revenue for the year ended December 31, 2025 was $98 million, which represents a decrease of $45 million compared to the year ended December 31, 2024.

The decrease was due to the lower deposit balance held with BN driven by the acquisition of our incremental approximately 4.5% interest in Oaktree, our acquisition of an interest in Castlelake, as well as other strategic acquisitions made during the year.

In addition, the funding of working capital requirements further decreased our deposit balance with BN.

The decrease was primarily due to lower interest income earned on our deposit with BN.

Interest and Dividend Revenue of Consolidated Funds

Interest and dividend revenue of consolidated funds for the year ended December 31, 2025 was $31 million, which represents interest and dividends earned from investments held by BSI II in which BAM holds a sufficient interest to require the consolidation of the fund.

Other Revenues

Other revenues were $440 million for the year ended December 31, 2024, an increase of $91 million compared to the year ended December 31, 2023.

Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Relationship Agreement, fund expense recharges, and incentive management fees earned on certain funds.

The increase compared to the prior year was due to higher incentive management fees earned, fund expense recharges and increased recoveries in share and performance-based compensation.

Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Services Agreement, fund expense recharges, and incentive management fees earned on certain funds.

Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively.

Other revenues were $535 million for the year ended December 31, 2025, an increase of $95 million compared to the year ended December 31, 2024.

Of the total increase, $45 million was due to higher recoveries in share and performance-based compensation.

In addition, the increase was also driven by $38 million of general operating cost recoveries from affiliates.

Total expenses for the year ended December 31, 2025 were $2.0 billion, an increase of $364 million or 22% compared to the year ended December 31, 2024.

Compensation and Benefits

Compensation and benefits for the year ended December 31, 2024 were $1.2 billion, which represents an increase of $106 million compared to the year ended December 31, 2023.

This was attributable to higher compensation costs from the ongoing growth of our asset management business as well as higher share-based compensation expense in the year due to higher mark-to-market movements on liability-based compensation awards.

Compensation and benefits for the year ended December 31, 2025 was $1.4 billion, which represents an increase of $219 million compared to the year ended December 31, 2024.

This was attributable to higher share-based compensation expense of $65 million on our share and performance-based awards reflecting additional existing cash-settled awards recognized upon the completion of the 2025 Arrangement.

This increase was partially offset by a decrease in the trading price of Class A Shares during the year.

The remaining increase is due to higher compensation costs from the ongoing growth of our business.

Other Operating Expenses

Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions.

Other operating expenses were $347 million for the year ended December 31, 2024, compared to $342 million for the year ended December 31, 2023.

The increase was primarily attributable to the growth in our business relative to the prior year.

Other operating expenses were broadly consistent with the prior year at $354 million for the year ended December 31, 2025, compared to $347 million for the year ended December 31, 2024.

Carried Interest Allocation Compensation

Compensation expenses related to carried interest allocation compensation were $93 million for the year ended December 31, 2024, which represents an increase of $7 million compared to the year ended December 31, 2023.

This was primarily driven by higher relative valuation gains across certain infrastructure, renewable, and private equity funds compared to the prior year.

Compensation expenses related to carried interest allocation compensation was $146 million for the year ended December 31, 2025, which represents a change of $53 million compared to the year ended December 31, 2024.

This was primarily driven by higher relative valuations across certain renewable, infrastructure, and private equity funds compared to the prior year.

The carried interest compensation expense associated with mature funds is fully recoverable from BN.

Carried interest compensation expense on new funds was $53 million during the year.

Interest Expense

Interest expense for year ended December 31, 2025 was $87 million, which represents an increase of $65 million compared to the year ended December 31, 2024.

This was primarily driven by BAM's increased borrowings from our senior note offerings completed during the year.

Interest Expense of Consolidated Funds

Interest expense of consolidated funds for the year ended December 31, 2025 was $28 million, which was primarily driven by borrowings made by BSI II in which BAM holds a sufficient interest to require the consolidation of the fund.

Other Expenses, net

Other expenses, net for the year ended December 31, 2024 were an expense of $93 million compared to $129 million in the prior year.

This expense primarily consists of mark-to-market movements on our investment in BSREP III and mark-to-market adjustments on put and call options to acquire additional interests in Oaktree, Primary Wave, and Castlelake.

Current year expense compared to the prior year were lower due to gains on the various put and call options held by the asset management company and financial instruments associated with various investments.

This was partially offset by valuation changes in BSREP III and unrealized foreign exchange losses.

Other expenses, net for the year ended December 31, 2025 was $297 million compared to $93 million in the prior year.

This increase was driven by a mark-to-market loss of $180 million on our investment in BSREP III during the year ended December 31, 2025 compared to a loss of $82 million during the year ended December 31, 2024.

The remaining increase was due to mark-to-market revaluations in put and call options to acquire additional interests in our partner managers.

Other Income, net of Consolidated Funds

Other income, net of consolidated funds for the year ended December 31, 2025 was $37 million compared to $nil in the prior year.

This represents the underlying fair value changes of investments held by BSI II in which BAM holds a sufficient interest to require the consolidation of the fund.

Share of Income from Equity Method Investments

Our share of income from equity method investments was $339 million compared to $167 million in the prior year, or an increase of $172 million.

This is predominantly driven by increased earnings from our investment in Oaktree due to higher management fees earned and unrealized carried interest generated during the year, as well as our higher ownership interest.

In addition, our share of income from equity method investments reflects earnings from our Castlelake investment from September 17, 2024.

Our share of income from equity method investments was $402 million compared to $339 million in the prior year, an increase of $63 million.

This increase was driven by $160 million of incremental earnings primarily from Castlelake and Concora as well as other partner managers, offset by $97 million of lower earnings from Oaktree.

Income Tax Expense

Income tax expense was $527 million for the year ended December 31, 2025, which represents an increase of $89 million compared to the year ended December 31, 2024.

This increase was driven by changes in tax rates in certain jurisdictions in which we earn income relative to the prior year.

The increase in income tax expense was predominantly driven by the impairment of deferred tax assets during the year.

Net Loss Attributable to Preferred Share Redeemable Non-Controlling Interest

The asset management business recognizes carried interest income and associated carried interest allocation expense on mature funds within our Consolidated and Combined Statements of Operations on a gross basis.

As the net carried interest generated on mature funds is all attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.

Net loss attributable to preferred redeemable non-controlling interest was $211 million for the year ended December 31, 2024 primarily due to lower valuations in certain mature funds.

Net Income Attributable to Non-Controlling Interest

Net income attributable to non-controlling interest was $151 million for the year ended December 31, 2024.

The asset management business recognizes carried interest income on new funds within our Consolidated and Combined Statements of Operations on a gross basis.

On new funds, 33.3% of carried interest revenue is attributable to BN.

This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the year.

For the years ended December 31, 2023 and 2022

Net income for the year ended December 31, 2023 was $2.1 billion, of which $1.8 billion was attributable to common stockholders.

This compares to net income of $2.9 billion for the year ended December 31, 2022, of which $1.9 billion was attributable to common stockholders.

Revenues for the year ended December 31, 2023 were $4.1 billion, which represents an increase of $435 million or 12% compared to $3.6 billion of revenue for the year ended December 31, 2022.

Base Management and Advisory Fees

Base management and advisory fees for the year ended December 31, 2023 were $2.8 billion, which represents an increase of $266 million or 11% compared to the year ended December 31, 2022.

The increase was predominantly driven by incremental contributions from capital raised for our latest flagship funds and capital deployed across our complementary strategies.

Incentive Fees

Incentive fees for the year ended December 31, 2023, were $376 million, an increase of $41 million or 12% from the year ended December 31, 2022, driven by higher incentive distribution fees earned due to growth in BIP and BEP's dividends of 6% and 5%, respectively.

Carried Interest Allocations

Realized carried interest allocations were $51 million for the year ended December 31, 2023, which represents a decrease of $190 million compared to the year ended December 31, 2022.

Realized carried interest allocations in the year were primarily driven by dispositions within our real estate flagship funds.

Realized carried interest allocations of $241 million for the year ended December 31, 2022 were primarily driven by realizations within our real estate long-term and perpetual funds, as well as a realization within our infrastructure business.

All realized carried interest allocations, net of carry compensation for the current and comparative period related to mature funds and are attributable to BN.

Realized carried interest allocations on mature funds are attributed to BN through our redeemable preferred shares.

Unrealized carried interest allocations were $348 million for the year ended December 31, 2023, which represents an increase of $99 million compared to the year ended December 31, 2022.

The unrealized carried interest allocations were primarily related to growth in valuations in our private equity, real estate and transition flagship funds, partially offset by realizations in the year.

Carried interest allocation generated by new funds are 66.7% attributable to the asset management business and 33.3% to BN.

Within the Consolidated and Combined Statements of Operations, carry revenue is presented on a 100% basis and the portion attributable to BN is presented in Net Income Attributable to Non-Controlling Interest.

Unrealized carried interest allocations attributable to the asset management business, which represents unrealized carried interest on new funds, was $167 million for the year ended December 31, 2023, compared to $124 million for the year ended December 31, 2022.

Interest and Dividend Revenue

Interest and dividend revenue for the year ended December 31, 2023 were $172 million, which represents a decrease of $86 million compared to the year ended December 31, 2022.

The decrease was a result of the transfer of certain investments and loans of the asset management business to BN as part of the 2022 Arrangement.

Prior year interest and dividend income was earned from legacy investments and interest bearing loans with affiliates.

Other Revenues

Other revenues were $349 million for the year ended December 31, 2023, an increase of $305 million compared to the year ended December 31, 2022.

The increase is due to amounts recoverable from BN associated with share and performance based compensation as defined by the Relationship Agreement.

A decrease in performance and liability-based compensation resulted in reduced recoveries in the prior year.

Total expenses for the year ended December 31, 2023 were $1.5 billion, an increase of $175 million or 13% compared to the year ended December 31, 2022.

Compensation and Benefits

Compensation and benefits for the year ended December 31, 2023 were $1.0 billion, which represents an increase of $348 million compared to the year ended December 31, 2022.

This is primarily attributable to increased compensation costs resulting from the ongoing growth of our asset management business and mark-to-market increases of liability-based awards.

Other Operating Expenses

Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions.

Other operating expenses were $342 million for the year ended December 31, 2023, compared to $236 million for the year ended December 31, 2022.

The increase was primarily attributable to the growth in our business relative to the prior year.

Carried Interest Allocation Compensation

Compensation expenses related to carried interest allocation compensation were $86 million for the year ended December 31, 2023, which represents a decrease of $114 million compared to the year ended December 31, 2022.

This is predominantly driven by lower relative valuation gains compared to the year ended December 31, 2022 across certain of our funds.

The carried interest compensation expense associated with mature funds is fully recoverable from BN.

Carried interest compensation expense on new funds was $2 million on a net basis.

Other (Expenses) Income, net

Other (expenses) income, net for the year ended December 31, 2023, primarily consists of mark-to-market movements on our investment in BSREP III and mark-to-market adjustments on call and put options to acquire an additional interest in Oaktree and Primary Wave.

BSREP III mark-to-market movements and dividend distributions during 2023 are not attributable to the Asset Management Company on a net basis.

The Asset Management Company also recorded impairment charges associated with intangible assets and goodwill of $30 million related to legacy acquisitions, and transaction costs related to the spin-off of the asset management business.

Other income in the prior year relates to dividend income received from BSREP III.

Share of Income from Equity Accounted Investments

Our share of income from equity accounted investments was $167 million compared to $146 million in the prior year, or an increase of 14%.

This is predominantly our share of income from our investment in Oaktree, primarily driven by unrealized carried interest generated during the year.

Income Tax Expense

Income tax expense was $417 million for the year ended December 31, 2023, which represents a decrease of $210 million compared to the year ended December 31, 2022.

This decrease was driven by lower taxable income relative to prior year.

Net Income Attributable to Preferred Share Redeemable Non-Controlling Interest

Net income attributable to preferred redeemable non-controlling interest was $262 million for the year ended December 31, 2023 primarily due to higher valuations in certain mature funds.

Net Income Attributable to Non-Controlling Interest

Net income attributable to non-controlling interest was $36 million for the year ended December 31, 2023.

The asset management business recognizes carried interest income on new funds within our Consolidated and Combined Statements of Operations on a gross basis.

On new funds, 33.3% of carried interest revenue is attributable to BN.

BAM recognizes carried interest income and associated carried interest allocation expense on mature funds within our consolidated statements of operations on a gross basis.

As the net carried interest generated on mature funds is attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.

Net loss attributable to preferred redeemable non-controlling interest was $480 million for the year ended December 31, 2025 primarily due to lower valuations in certain mature real estate funds.

Net Income Attributable to Non-Controlling Interest of Consolidated Entities

Net income attributable to non-controlling interest of consolidated entities was $369 million for the year ended December 31, 2025.

BAM recognizes carried interest allocations on new funds within our consolidated statements of operations on a gross basis.

On new funds, 33.3% of carried interest allocations are attributable to BN.

This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the year.

Net Income Attributable to Non-Controlling Interest of Consolidated Funds

For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income earned is attributable to other parties invested in the funds.

Net income attributable to non-controlling interest of consolidated funds was $24 million for the year ended December 31, 2025.

Balance Sheet Analysis

Consolidated Balance Sheets

The following table summarizes the Consolidated Balance Sheets of BAM as at December 31, 2024 and December 31, 2023:

AS AT DECEMBER 31,

(MILLIONS, EXCEPT SHARE AMOUNTS)

Cash and cash equivalents $ 12 $ 9

Due from affiliates 968 886

Other assets 75 40

Investment in Brookfield Asset Management ULC 3,331 2,270

Total assets $ 4,386 $ 3,205

Accounts payable and accrued liabilities $ 879 $ 859

Due to affiliates 229 261

Total liabilities 1,108 1,120

Commitment and contingencies

Common Stock:

Class A, unlimited authorized, 443,135,847 (2023 – 413,026,253) issued and 420,217,136 (2023 – 388,733,466) outstanding as at December 31, 2024 3,475 2,354

Class B, unlimited authorized, 21,280 (2023 – 21,280) issued and outstanding as at December 31, 2024 — —

Class A held in treasury, 22,918,711 (2023 – 24,292,787) shares as at December 31, 2024 (651) (649)

Additional paid-in-capital 565 403

Retained deficit

Accumulated other comprehensive income 1 3

Total common equity 3,247 2,076

Non-controlling interest 31 9

Total equity 3,278 2,085

Total liabilities, non-controlling interest and equity $ 4,386 $ 3,205

As at December 31, 2024 and December 31, 2023

As at December 31, 2024, BAM’s total assets were $4.4 billion, an increase of $1.2 billion, or 37% from December 31, 2023.

Total assets consist primarily of approximately 27% interest in the Asset Management Company and reimbursements due from affiliates related to long-term executive compensation programs of BAM.

Due from Affiliates

Due from affiliates increased by $82 million from $886 million to $968 million, or 9%, primarily due to higher reimbursable expenses related to long-term executive compensation programs and performance-based awards of BAM.

This was partially offset by payments under the Asset Management Services Agreement related to share-based compensation awards and settlements of certain liability-based awards for which BAM was reimbursed.

Other assets increased from $40 million to $75 million due to the purchase of an option to acquire Brookfield Asset Management ULC’s shares for $35 million.

These options track certain awards issued to employees of our asset management business and are exercised at the same time and at the same exercise price as the underlying awards.

Investment in Brookfield Asset Management ULC

The investment in Brookfield Asset Management ULC increased by $1.1 billion, or 47% to $3.3 billion.

BAM issued approximately 28.8 million Class A Shares in exchange for approximately 28.8 million shares of the Asset Management Company.

The share exchange was valued at $1.1 billion, was non-dilutive to BAM Ltd.

shareholders, and increased BAM's ownership from approximately 25% to approximately 27%.

The investment balance is net of distributions, partially offset by our share of income during the year.

As at December 31, 2024, BAM’s total liabilities were $1.1 billion, a decrease of $12 million compared to December 31, 2023.

This was driven by a decrease in due to affiliates of $32 million, or 12%, due to repayments on BAM's credit facility with the Asset Management Company.

Accounts payable and accrued liabilities increased due to movement in liability-based awards, partially offset by the settlement of certain liability-based awards.

As at December 31, 2024, BAM's total equity was $3.3 billion, which increased by $1.2 billion, or 57% compared to December 31, 2023.

This was primarily due to the aforementioned equity issuance.

In addition, net income earned and increases in additional paid-in-capital related to stock-based compensation plans were partially offset by distributions in the period.

Consolidated and Combined Balance Sheets

The following table presents the Consolidated and Combined Balance Sheets of the Asset Management Company as at December 31, 2024 and December 31, 2023:

The following table presents the consolidated balance sheets of BAM as at December 31, 2025 and 2024:

AS AT DECEMBER 31,

6 unchanged sentences

Investments held for sale — 242

Investments in consolidated funds 251 —

Investments of consolidated funds 505 251

Property, plant and equipment, net 92 58

6 unchanged sentences

Due to affiliates 720 1,092

Corporate borrowings 2,478 —

Borrowings of consolidated funds 462 251

Deferred income tax liabilities 169 46

Non-recourse borrowings in consolidated funds 251 —

Total liabilities 6,737 2,966

1 unchanged sentence

Preferred shares redeemable non-controlling interest 1,398 2,103

Common shares, unlimited authorized, 1,635,428,404 (2023 – 1,635,349,629) issued and 1,630,525,104 (2023 – 1,635,349,629) outstanding as at December 31, 2024 9,017 9,014

Common shares held in treasury, 4,903,300 (2023 – nil) shares as at December 31, 2024 (91) —

Common Stock:

Class A, no par value, unlimited authorized, 1,637,942,656 (December 31, 2024 - 1,637,156,992) issued and 1,608,492,642 (December 31, 2024 - 1,614,238,281) outstanding as at December 31, 2025

Class A held in treasury, no par value, 29,450,014 (December 31, 2024 - 22,918,711) shares as at December 31, 2025

Class B, no par value, unlimited authorized, 21,280 (December 31, 2024 - 21,280) issued, and outstanding as at December 31, 2025

Additional paid-in capital 154 152

Retained deficit (851) (488)

Accumulated other comprehensive income 188 162

Additional paid-in capital 152 122

Total common equity 8,752 9,126

Non-controlling interest 336 173

Non-controlling interest in consolidated entities 773 336

Non-controlling interest in consolidated funds 21 —

Total equity 8,912 9,088

Total liabilities, redeemable non-controlling interest and equity $ 17,047 $ 14,157

As at December 31, 2024 and December 31, 2023

Total assets were $14.2 billion as at December 31, 2024, a decrease of $133 million or 1% compared to December 31, 2023, due to decreases in cash and cash equivalents, partially offset by an increase in investments during the year.

As at December 31, 2025 and 2024

Total assets were $17.0 billion as at December 31, 2025, an increase of $2.9 billion or 20% compared to December 31, 2024.

Cash and Cash Equivalents

Cash and cash equivalents were $404 million as at December 31, 2024, a decrease of $2.3 billion or 85% from December 31, 2023.

This was largely due to the acquisition of our incremental approximately 4.5% ownership interest in Oaktree, our acquisition of Castlelake, as well as other strategic acquisitions made during the year ended December 31, 2024.

This was partially offset by the repayment of a bridge facility made to an affiliate, and reimbursements of fund expenses.

Of this balance, $132 million is on deposit with BN.

Cash and cash equivalents were $1.6 billion as at December 31, 2025, an increase of $1.2 billion from December 31, 2024.

This was largely driven by cash inflows of $2.5 billion from BAM's senior note offerings during the year.

The increase was partially offset by cash outflows of approximately $555 million due to investments made in Oaktree, Concora, Primary Wave, Angel Oak and warehoused investments made by BAM to support its various strategies.

Share repurchases made during the year resulted in a further decrease of $412 million in cash and cash equivalents.

Accounts Receivable and Other, Net

Accounts receivable and other, net of $333 million primarily consists of receivables from third parties and prepaid expenses.

The decrease of $68 million from December 31, 2023 was largely driven by the timing of collections, partially offset by management fees receivable from third parties and prepayments of stock-based compensation costs to BAM in accordance with the Asset Management Services Agreement.

The decrease of $150 million from December 31, 2024 was largely driven by the timing of collections.

Financial Assets

Financial assets of $231 million primarily consists of call options to acquire additional interests in Primary Wave and Castlelake in the future and financial instruments associated with various investments.

The increase of $194 million from December 31, 2023 was largely driven by mark-to-market valuation increases of certain of our call options, as well as the recognition of new call options recognized during the year.

Financial assets of $417 million primarily consists of call options to acquire additional interests in Primary Wave, Castlelake, LCM and Angel Oak in the future and financial instruments associated with various other investments.

The increase of $186 million from December 31, 2024 was largely driven by mark-to-market valuation increases on certain call options.

Due from Affiliates

Due from affiliates of $3.3 billion primarily relates to management fees earned but not collected from our managed funds, receivables for expenses paid on behalf of certain of our funds, as well as reimbursements due from BN for long-term compensation awards.

The movement of $4 million from December 31, 2023 was primarily the result of collections on management fees, settlement of certain liability-based awards, fund recharge receivables and certain receivables with BN, and repayments of interest bearing related party loans.

These decreases were partially offset by management fees receivables on fee revenues earned from our funds during the year and recoverable expenses for certain liability-based awards recoverable from BN.

Investments are comprised of:

• Our approximately 15% limited partnership interest in BSREP III of $1.0 billion;

• Our $4.6 billion interest in Oaktree which increased from approximately 68% to approximately 73% ownership interest during the year;

• Accumulated unrealized carried interest in our mature and new funds of $931 million and $693 million, respectively;

• Other investments totaling $1.9 billion.

During the year, investments increased by $1.6 billion due to the aforementioned increase in our Oaktree ownership, investments made in Castlelake for approximately $489 million excluding contingent consideration, the purchase of a warehoused investment in GEMS Education for approximately $347 million, for which $97 million has been syndicated as at December 31, 2024, and our investment in Pretium of $351 million.

The investment in BSREP III and carry generated on mature funds are fully attributable to BN through their preferred shares redeemable non-controlling interest and does not impact net income attributable to common stockholders.

Investments in Consolidated Funds

Investments in consolidated funds represents certain funds in which the asset management company holds a sufficient interest to require the consolidation of the fund.

Investments in these funds are measured at fair value.

The movement of $780 million from December 31, 2024 reflects additional receivables owing from BN associated with existing share-based compensation and carried interest compensation awards upon the completion of the 2025 Arrangement.

Investments are mainly comprised of our:

• approximate 74% economic interest in Oaktree of $4.7 billion (2024 – $4.6 billion);

• limited partnership interest in BSREP III of $700 million (2024 - $1.0 billion);

• economic interest in Castlelake of $720 million (2024 – $538 million);

• accumulated unrealized carried interest in our mature and new funds of $197 million (2024 - $931 million) and $1.6 billion (2024 - $693 million), respectively;

• approximate 11% economic interest in Pretium of $330 million (2024 - $351 million);

• 44% economic interest in Primary Wave of $261 million (2024 – $147 million);

• 49.9% economic interest in LCM of $221 million (2024 – $186 million);

• 51.3% economic interest in Angel Oak of $133 million (2024 - $nil);

• limited partner interests in funds of $368 million (2024 - $29 million) including Pinegrove Fund (2025 – $230 million;

2024 – $25 million), BPE (2025 – $92 million;

2024 - $nil), BGTF II (2025 - $36 million;

2024 - $nil);

The investment in BSREP III and carried interest generated on mature funds are fully attributable to BN through their preferred shares redeemable non-controlling interest and does not impact net income attributable to common stockholders.

Accrued carried interest in new funds, including current funds and open-ended funds, as defined therein, is attributed to BN at 33.3%.

The remaining accrued carried interest in new funds, net of associated compensation is attributable to common stockholders.

During the year, net investment increases of $682 million were primarily due to investments made by BAM during the year in Castlelake's acquisition of Concora ($197 million), Pinegrove Fund ($172 million), Angel Oak ($149 million), and Primary Wave ($84 million).

In addition, investments also increased due to changes in value of accumulated unrealized carried interest on new funds ($943 million), partially offset by a decrease in accumulated unrealized carried interest on mature funds ($734 million).

Investments Held for Sale

Investments held for sale of $242 million relate to a fund acquired in conjunction with our acquisition of Pinegrove Ventures through Pinegrove Venture Partners, our venture investment platform formed with Sequoia Heritage.

We expect to monetize this investment for cash in the near term.

Total liabilities were $3.0 billion as at December 31, 2024, an increase of $141 million or 5% compared to December 31, 2023.

Investments held for sale was $nil at December 31, 2025.

The decrease of $242 million compared to December 31, 2024 was a result of BAM's disposition of its interest in Redwood Evergreen Fund LP for approximately $257 million during the year ended December 31, 2025.

Investments of Consolidated Funds

Investments of consolidated funds represents investments held in BSI II in which BAM holds a sufficient interest to require the consolidation of the fund.

Investments in BSI II are measured at fair value.

The increase of $254 million compared to December 31, 2024 was driven by additional investments made by BSI II.

Intangible assets, net

Intangible assets, net was $234 million as at December 31, 2025 and was recognized upon the completion of the 2025 Arrangement.

Total liabilities were $6.7 billion as at December 31, 2025, an increase of $3.8 billion or 127% compared to December 31, 2024.

Accounts Payable and Other, Net

Accounts payable and other, net primarily consists of accrued bonus compensation, performance and cash-settled share-based compensation.

The decrease of $328 million compared to December 31, 2023 reflects annual bonus payments, settlement of certain liability-based awards, and timing of taxes paid during the year.

This was partially offset by higher performance and liability-based compensation owed to employees.

The increase of $1.1 billion compared to December 31, 2024 reflects additional existing cash-settled awards recognized upon the completion of the 2025 Arrangement.

Financial Liabilities

Financial liabilities of $228 million primarily consists of contingent consideration associated with our investment in Castlelake and the mark-to-market of derivatives associated with put options on certain of our investments.

The increase of $106 million compared to December 31, 2023 reflects the recognition of contingent consideration and put options associated with investments made during the year, and mark-to-market movements of a put option held by third parties to sell additional interests in Primary Wave to the Asset Management Company.

This was partially offset by the mark-to-market of a put option held by third parties associated with our investment in Oaktree.

Financial liabilities of $449 million primarily consists of contingent consideration associated with our investment in Castlelake and the mark-to-market of derivatives associated with put options on certain of our other partner managers.

The increase of $221 million compared to December 31, 2024 predominantly reflects the change in value of the Castlelake options during the year.

Due to Affiliates

Due to affiliates of $1.1 billion reflects amounts owed to affiliates.

The increase of $106 million or 11% relative to December 31, 2023 was the result of a new related party loan to fund a warehoused investment, and higher share-based compensation owed to related parties.

This was partially offset by the repayment of BAM's credit facility with BN and payments on certain of our loans payable to related parties.

Non-Recourse Borrowings of Consolidated Funds

Non-recourse borrowings in consolidated funds represents borrowings used to finance investments within certain of our funds where the asset management company is required to consolidate the fund due to our economic interest.

These borrowings are non-recourse to the asset management business and may fluctuate with the timing of new investments.

Due to affiliates of $720 million reflects amounts payable to related parties for share and cash-based compensation, as well as for services received in the normal course of business including operating expenses payable.

The decrease of $372 million or 34% relative to December 31, 2024 was due to the elimination of certain amounts owing as a result of the 2025 Arrangement and payments made on certain amounts payable to related parties.

Corporate Borrowings

Corporate borrowings increased by $2.5 billion as a result of BAM's senior note offerings during the year ended December 31, 2025.

Borrowings of Consolidated Funds

Borrowings of consolidated funds represents borrowings used to finance investments within BSI II where BAM is required to consolidate the fund due to our economic interest.

These increased borrowings of $211 million compared to December 31, 2024 was driven by borrowings made by BSI II to fund additional investments.

Preferred Shares Redeemable Non-Controlling Interest

Our asset management business recognizes carried interest generated and associated carried interest allocation expense on mature funds within our Consolidated and Combined Statements of Operations.

BAM recognizes carried interest generated and associated carried interest allocation expense on mature funds within our consolidated statements of operations.

As the net carried interest generated on mature funds is all attributable to BN, this balance primarily represents the accumulated unrealized carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.

Preferred shares redeemable non-controlling interest was $1.4 billion as at December 31, 2025, a decrease of $705 million compared to $2.1 billion as at December 31, 2024.

This movement was due to a decrease in unrealized carried interest on mature funds during the year, partially offset by redeemable preferred share issuances to BN and BAM.

Non-Controlling Interest

Non-controlling interest was $336 million as at December 31, 2024, an increase of $163 million compared to $173 million as at December 31, 2023.

This increase was primarily due to carried interest generated by new funds that is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within our asset management business.

This movement was due to a decrease in unrealized carried interest on mature real estate flagship funds, as well as settlements of amounts owed to BN during the year ended December 31, 2025.

Non-Controlling Interest in Consolidated Entities

Non-controlling interest in consolidated entities was $773 million as at December 31, 2025, an increase of $437 million compared to $336 million as at December 31, 2024.

This increase was primarily due to carried interest generated across the latest vintages of our flagship funds of which 33.33% is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within BAM.

Cash Flow Statement Analysis

Review of Consolidated Statements of Cash Flows

The following table summarizes the changes in BAM’s cash for the years ended December 31, 2024, 2023 and the period from July 4, 2022 to December 31, 2022:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

(MILLIONS) 2024 2023 2022

Operating activities $ 627 $ 508 $ (2)

Investing activities (41) (41) —

Financing activities (583) (459) 3

Change in cash and cash equivalents $ 3 $ 8 $ 1

This statement reflects activities within our consolidated operations and therefore excludes activities within non-consolidated entities.

For the years ended December 31, 2024 and 2023

Operating Activities

During the year ended December 31, 2024, BAM generated operating cashflows of $627 million primarily attributable to the share of income from its investment in the Asset Management Company.

During the year ended December 31, 2023, BAM's operating cashflows were $508 million.

The increase from the prior year was primarily due to the higher ownership interest held by BAM in the Asset Management Company as well as the impact of the annual dividend increase by the Asset Management Company of 19%.

Investing Activities

Net cash outflows from investing activities totaled $41 million during the year ended December 31, 2024, and $41 million in the prior year.

The activity in both years primarily reflects the purchase of an option to acquire additional shares of the Asset Management Company.

Financing Activities

Net cash outflows from financing activities totaled $583 million, primarily attributed to the distributions paid to BAM's shareholders.

These outflows were partially offset by prepayments of certain share-based compensation from the Asset Management Company.

During the year ended December 31, 2023, net cash outflows from financing activities totaled $459 million, primarily attributed to distributions paid to BAM's shareholders and share repurchases, partially offset by draws on our revolving credit facility with the Asset Management Company and prepayments received for certain of our share-based compensation programs.

For the year ended December 31, 2023 and period ended December 31, 2022

Operating Activities

During the year ended December 31, 2023, BAM's operating activities generated positive cashflows of $508 million primarily attributable to the share of income driven from its investment in the Asset Management Company.

During the period from July 4, 2022 to December 31, 2022, BAM's operating cash outflows were $2 million.

Investing Activities

During the year ended December 31, 2023, net cash outflows from investing activities totaled $41 million, primarily reflecting the purchase of an option to acquire additional shares of the Asset Management Company.

Financing Activities

During the year ended December 31, 2023, net cash outflows from financing activities totaled $459 million, primarily attributed to the distributions paid to BAM's shareholders and share buybacks.

These outflows were partially offset by cash drawn on the credit facility between BAM and the Asset Management Company.

During the period from July 4, 2022 to December 31, 2022, net cash inflows from financing activities totaled $3 million, primarily attributed to movements of loan balances from an affiliate of BN as a result of the 2022 Arrangement and share subscriptions of BN.

These inflows were partially offset by share repurchases.

Review of Consolidated and Combined Statements of Cash Flows

Refer to the following table that summarizes the Consolidated and Combined Statements of Cash Flows for our asset management business for the years ended December 31, 2024, 2023, and 2022:

Refer to the following table that summarizes the consolidated statements of cash flows for BAM for the years ended December 31, 2025, 2024 and 2023:

FOR THE YEARS ENDED DECEMBER 31,

7 unchanged sentences

Operating Activities

During the year ended December 31, 2024, the Asset Management Company's operating activities generated cash inflows of $1.9 billion, compared to cash inflows of $1.4 billion in the prior year.

The increase in operating cash flows compared to the prior year was primarily driven by higher cash generated from growth of our asset management business, partially offset by settlement of amounts due to related parties and working capital outlays.

Investing Activities

Net cash outflows from investing activities totaled $2.0 billion, compared to outflows of $475 million in the prior year.

The increase from the prior year was primarily due to the closing of our strategic investment in Castlelake for $489 million, a minority position in Pretium for $351 million, and a net cash outflow associated with the acquisition of a warehoused investment in GEMS Education for $249 million.

In addition, the acquisition of Pinegrove Ventures along with a related wholly-owned fund for $258 million, our incremental investment in Oaktree, and $251 million of investment acquisitions within our consolidated funds further added to current year outflows.

This increase in outflows were partially offset by higher dispositions of investment assets and lower net advances to related parties in the current year.

Financing Activities

Net cash outflows from financing activities totaled $2.1 billion, compared to outflows of $1.8 billion in the prior year.

The increase in outflows were primarily due to a 19% increase in dividends compared to the prior year and the settlement of our revolving credit facility with BN.

The increase in outflows were partially offset by non-recourse borrowings within our consolidated funds and the issuance of a related party loan for the acquisition of a warehoused investment.

For the years ended December 31, 2023 and 2022

Operating Activities

During the year ended December 31, 2023, the Asset Management Company's operating activities generated positive cashflows of $1.4 billion, compared to cash outflows of $374 million in the year ended December 31, 2022.

Excluding the net change in working capital and other non-cash operating items, operating cash inflows were $2.1 billion, representing an increase of $76 million or 4% compared to the year ended December 31, 2022, primarily driven by the impact of the 2022 Arrangement.

During the year ended December 31, 2025, the Company's operating activities generated cash inflows of $2.1 billion, compared to cash inflows of $1.6 billion in the prior year.

Cash flows from operating activities primarily include the receipt of base management and advisory fees, incentive fees, realized carried interest, and interest and dividend revenue, offset by the payment of operating expenses incurred in the normal course of business, including compensation, operating and general and administrative expenses, and income tax payments.

Investing Activities

During the year ended December 31, 2023, net cash outflows from investing activities totaled $475 million compared to inflows of $1.7 billion in the year ended December 31, 2022.

The year ended December 31, 2023 investing activity primarily consists of the purchase of the incremental 4% ownership interest in Oaktree and advances provided to BAM on its credit facility.

The year ended December 31, 2022 investing activity inflow was predominantly driven by the disposition of financial assets as part of the 2022 Arrangement.

Net cash outflows from investing activities totaled $339 million, compared to outflows of $1.7 billion in the prior year.

Net outflows of $339 million during the year ended December 31, 2025 were primarily attributable to approximately $1.0 billion of investments, including BAM's participation in Castlelake's acquisition of Concora, our step-up in ownership of Oaktree and Primary Wave, and an investment in Angel Oak.

These outflows were partially offset by $619 million of proceeds from investment dispositions and distributions received from certain investments.

The $1.7 billion net cash outflows in the prior year were largely attributable to $1.9 billion of investments related to Castlelake, Pretium, Redwood Evergreen Fund LP and GEMS Education.

Financing Activities

During the year ended December 31, 2023, net cash outflows from financing activities totaled $1.8 billion, compared to outflows of $280 million in the year ended December 31, 2022.

The year ended December 31, 2023 primarily consists of distributions to shareholders of $2.1 billion, partially offset by borrowings from related parties of $197 million.

The year ended December 31, 2022 outflows were primarily as a result of distributions to parent, distributions to redeemable non-controlling interests and capital borrowings, partially offset by inflows from contributions from the parent.

Net cash outflows from financing activities totaled $590 million, compared to outflows of $2.1 billion in the prior year.

Net cash outflows of $590 million during the year ended December 31, 2025 were primarily attributable to $2.8 billion (2024 - $2.5 billion) of dividend distributions and $412 million of share repurchases, which was partially offset by $2.5 billion of senior note issuances during the year.

Key Financial and Operating Measures

BAM and the Asset Management Company prepare their financial statements in conformity with U.S.

BAM prepares its financial statements in conformity with U.S.

This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our asset management business, including for performance measurement, capital allocation and valuation purposes.

BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our asset management business.

These non-GAAP financial measures should not be considered as the sole measure of BAM’s or our asset management business’ performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S.

These non-GAAP financial measures should not be considered as the sole measure of BAM’s performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S.

GAAP financial measures.

These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers.

The asset management business includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business.

See “Reconciliation of U.S.

The financial results of BAM includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business.

See “Part II—Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S.

GAAP to Non-GAAP Measures”, in this report.

Non-GAAP Measures Utilized by Our Asset Management Business

Non-GAAP Measures Utilized by BAM

Fee Revenues is a key metric analyzed by management to determine the growth in recurring cash flows from our asset management business.

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Distributable Earnings

BAM intends to pay out approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business.

The asset management business intends to pay dividends to BAM on a quarterly basis sufficient to ensure that BAM can pay its intended dividend.

Distributable Earnings used by our asset management business provides insight into earnings that are available for distribution or to be reinvested by our asset management business.

BAM intends to pay out at least approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business.

Distributable Earnings provides insight into earnings that are available for distribution or to be reinvested by BAM.

It is calculated as the sum of its Fee-Related Earnings, realized carried interest, returns from our corporate cash and financial assets, interest expense, cash taxes, and general and administrative expenses excluding equity-based compensation expenses.

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GAAP to Non-GAAP Measures” for our reconciliation of Distributable Earnings.

Supplemental Financial Measures Utilized by Our Asset Management Business

Supplemental Financial Measures Utilized by BAM

Assets Under Management

AUM refers to the total fair value of assets managed, calculated as follows:

• Investments that Brookfield, which includes BN, the asset management business, or their affiliates, either:

• Investments that Brookfield, which includes BAM, BN, or their affiliates, either:

◦ Consolidates for accounting purposes (generally, investments in respect of which Brookfield has a significant economic interest and unilaterally directs day-to-day operating, investing and financing activities), or

governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes),

◦ Are calculated at 100% of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis, even if Brookfield does not own 100% of the investment, with the exception of investments held through our perpetual funds, which are calculated at its proportionate economic share of the investment’s net asset value.

◦ Does not consolidate for accounting purposes but over which Brookfield has significant influence by virtue of one or more attributes (e.g., being the largest investor in the investment, having the largest representation on the investment’s governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes),

• All other investments are calculated at Brookfield’s proportionate economic share of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis.

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Fee-Bearing Capital

Fee-Bearing Capital represents the capital committed, pledged, or invested in our permanent capital vehicles, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues.

Fee-Bearing Capital represents the capital committed, pledged, or invested in our perpetual affiliates, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues.

Fee-Bearing Capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts.

When reconciling period amounts, we utilize the following definitions:

• Inflows include capital commitments and contributions to our private and liquid strategies funds, and equity issuances from the permanent capital vehicles.

• Outflows represent distributions and redemptions of capital from within the liquid strategies capital.

• Distributions represent quarterly distributions from the permanent capital vehicles as well as returns of committed capital (excluding market valuation adjustments), redemptions and expiry of uncalled commitments within our private funds.

• Market valuation includes gains (losses) on portfolio investments, the permanent capital vehicles and liquid strategies based on market prices.

• Inflows include capital commitments and contributions to our private and liquid strategies funds, and capital issuances in our perpetual affiliates.

• Outflows represent distributions and redemptions of capital from liquid and perpetual capital.

• Distributions represent quarterly distributions from perpetual affiliates as well as returns of committed capital (excluding market valuation adjustments), redemptions and expiry of uncalled commitments within our private funds.

• Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices.

• Other includes changes in net non-recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S.

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Carried interest is typically paid towards the end of the life of a fund after capital has been returned to investors and may be subject to “clawback” until all investments have been monetized and minimum investment returns are sufficiently assured.

BN is entitled to receive 33.3% of the carried interest on new sponsored funds of our asset management business and will retain all of the carried interest earned on our existing mature funds.

BN is entitled to receive 33.3% of the carried interest on new sponsored funds of BAM and will retain all of the carried interest earned on our existing mature funds.

Permanent Capital and Perpetual Strategies

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On these products, we earn:

• Long-term perpetual base management fees, which are based on the market capitalization or net asset value of our permanent capital vehicles and on the net asset value of our perpetual private funds.

• Long-term perpetual base management fees, which are based on the market capitalization or NAV of our permanent capital vehicles and on the NAV of our perpetual private funds.

• Stable incentive distribution fees from BEP and BIP, which are linked to the growth in cash distributions paid to investors above a predetermined hurdle.

Both BEP and BIP have a long-standing track record of growing distributions annually within their target range of 5-9%.

• Performance fees from BBU are based on unit price performance above a prescribed high-water mark price, which are not subject to clawback, as well as carried interest on our perpetual private funds.

• Performance fees from BBU are based on unit price performance above a prescribed high watermark price, which are not subject to clawback, as well as carried interest on our perpetual private funds.

Liquid Strategies

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On these products, we earn:

• Base management fees, which are based on committed capital or fund net asset value, and

• Base management fees, which are based on committed capital or fund NAV, and

• Performance income based on investment returns above a minimum prescribed return.

Analysis of Key Non-GAAP Financial and Operating Measures of our Asset Management Business

The following section contains a discussion and analysis of key financial and operating measures utilized in managing our asset management business, including for performance measurement, capital allocation, and valuation purposes.

Analysis of Key Non-GAAP Financial and Operating Measures

The following section contains a discussion and analysis of key financial and operating measures utilized in managing our business, including for performance measurement, capital allocation, and valuation purposes.

For further detail on our non-GAAP and performance measures, please refer to “Part II—Item 7.

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Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total

Renewable power and transition $ 34,813 $ 23,044 $ — $ 57,857

Infrastructure $ 47,950 $ 58,448 $ — $ 106,398

Real estate 69,689 23,940 — 93,629

Renewable power and transition 39,068 28,177 — 67,245

Private equity 38,859 9,147 — 48,006

Real estate 72,045 29,637 — 101,682

Credit 86,892 115,103 77,388 279,383

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Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total

Renewable power and transition $ 29,663 $ 22,700 $ — $ 52,363

Infrastructure $ 45,738 $ 51,312 $ — $ 97,050

Real estate 66,038 27,406 — 93,444

Renewable power and transition 34,813 23,044 — 57,857

Private equity 37,123 8,067 — 45,190

Real estate 69,689 23,940 — 93,629

Credit 74,697 102,193 67,925 244,815

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Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total

Renewable power and transition $ 25,902 $ 20,510 $ — $ 46,412

Infrastructure $ 47,345 $ 47,290 $ — $ 94,635

Real estate 63,832 31,801 — 95,633

Renewable power and transition 29,663 22,700 — 52,363

Private equity 33,249 5,600 — 38,849

Real estate 66,038 27,406 — 93,444

Credit 69,046 45,723 62,938 177,707

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AS AT AND FOR THE YEAR ENDED

Renewable power and transition Infrastructure Real estate Private equity Credit Total

Infrastructure Renewable power and transition Private equity Real estate Credit Total

December 31, 2024 $ 97,050 $ 57,857 $ 45,190 $ 93,629 $ 244,815 $ 538,541

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AS AT AND FOR THE YEAR ENDED

Renewable power and transition Infrastructure Real estate Private equity Credit Total

Infrastructure Renewable power and transition Private equity Real estate Credit Total

December 31, 2023 $ 94,635 $ 52,363 $ 38,849 $ 93,444 $ 177,707 $ 456,998

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AS AT AND FOR THE YEAR ENDED

Renewable power and transition Infrastructure Real estate Private equity Credit Total

Infrastructure Renewable power and transition Private equity Real estate Credit Total

December 31, 2022 $ 82,752 $ 46,412 $ 39,316 $ 95,633 $ 153,750 $ 417,863

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For the year ended December 31, 2025

Fee-Bearing Capital was $539 billion as at December 31, 2024 compared to $457 billion as at December 31, 2023.

The increase of $81.5 billion, or 18% was primarily attributable to fundraising and capital deployments across our strategies, including our fifth real estate flagship fund, the second vintage of our global transition fund, and follow-on investments in earlier vintages of certain of our flagship funds.

The AEL Mandate resulted in $49 billion of inflows of Fee-Bearing Capital, as well as annuity-related inflows and other insurance capital generated in BWS also added to our Fee-Bearing Capital.

In addition, Fee-Bearing Capital increased due to the higher market valuations attributable to higher trading prices of BIP and BBU, and our strategic investments in Castlelake and Pinegrove Ventures completed during the year.

These increases were partially offset by the lower market capitalization of BEP, lower net asset value of BPG, distributions to our clients, and outflows due to redemptions within our liquid and perpetual strategies.

For the year ended December 31, 2023

Fee-Bearing Capital was $457 billion as at December 31, 2023 compared to $418 billion as at December 31, 2022.

The increase of $39 billion was primarily attributable to fundraising and capital deployments across our strategies, including our fifth real estate and infrastructure flagship funds, and our sixth private equity flagship fund.

Inflows within our credit strategy were due to capital deployed within our closed-end funds and other investments in BWS.

The overall increase of Fee-Bearing Capital was partially offset by distributions to our clients and outflows due to redemptions within our credit funds and liquid strategies.

Distributable Earnings of the Asset Management Business

Fee-Bearing Capital was $603 billion as at December 31, 2025 compared to $539 billion as at December 31, 2024, representing a net increase of $64.2 billion, or 12%:

• Inflows of $90.8 billion include capital commitments and contributions to our long-term private funds and liquid strategies, and issuances from our perpetual affiliates.

During the year ended December 31, 2025, infrastructure inflows of $5.9 billion were predominantly attributable to fundraising from our co-investment vehicles and perpetual strategies as well as the issuance of debt from BIP.

Renewable power and transition inflows of $10.4 billion were primarily attributable to closes on the second vintage of our flagship global transition fund and our catalytic transition fund, inflows from other long-term private funds and perpetual strategies, and the issuance of debt from BEP.

Private equity inflows of $5.3 billion were driven by new commitments to our co-investment vehicles as well as fundraising from complementary strategies and other long-term private funds.

Real estate inflows of $16.2 billion were attributable to capital deployment and fundraising from our real estate flagship funds including co-invest capital as well as opportunistic debt repayment within our permanent real estate vehicle.

Credit inflows of $53.0 billion were primarily driven by insurance capital inflows from BWS, fundraising and capital deployed across long-term, perpetual, and liquid strategies, and fundraising associated with our partner managers.

• Outflows represent distributions and redemptions of capital from liquid and perpetual strategies.

During the year ended December 31, 2025, outflows of $22.2 billion were predominantly driven by outflows of related to BWS insurance capital as well as redemptions within certain of our liquid and perpetual strategies.

• Distributions represent quarterly distributions from our perpetual affiliates as well as returns of committed capital and redemptions and expiry of uncalled commitments within our private funds.

During the year ended December 31, 2025, distributions of $26.8 billion were driven by $8.9 billion from Oaktree long-term private funds, $6.3 billion from infrastructure, private equity, and real estate flagship funds, $4.7 billion from our listed affiliates and BPG, $2.6 billion attributable to partner managers, and the remainder attributable to certain complementary strategies as well as various earlier vintages of our long-term private funds.

• Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices.

During the year ended December 31, 2025, increases of $24.8 billion were driven by $12.0 billion as a result of higher market prices of BEP, BIP, and BBU, $10.0 billion attributable to liquid and perpetual credit strategies, $2.2 billion attributable to certain credit long-term private funds, and $1.3 billion attributable to perpetual infrastructure strategies.

• Other includes $2.5 billion of changes in net recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S.

dollar commitments.

Private equity movements of $3.4 billion primarily relate to lower valuations within earlier vintages of our flagship funds and co-investment vehicles and debt repayment by BBU.

Credit movements of $3.3 billion were primarily attributable to the addition of Angel Oak partially offset by changes in fee-basis associated with certain perpetual and long-term private fund vehicles.

Renewable power and transition changes of $3.0 billion were as a result of a one-time rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition strategies based on investment mix as well as debt repayment by BEP.

Infrastructure increases of $1.8 billion were driven by a rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition based on investment mix.

Real estate changes of $1.1 billion primarily related to lower valuations within an earlier vintage flagship fund.

The impact of foreign exchange contributed to certain movements of Fee-Bearing Capital within long-term private funds across the business.

Distributable Earnings

FOR THE YEARS ENDED DECEMBER 31,

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Incentive distributions 466 424 378

Performance fees 95 — —

Transaction and advisory fees 30 49 47

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3,077 2,570 2,367

Fee-Related Earnings not attributable to the asset management business (114) (126) (148)

Fee-Related Earnings not attributable to BAM (82) (114) (126)

Fee-Related Earnings 3

$ 2,995 $ 2,456 $ 2,241

equity-based compensation costs and other income 4

Cash taxes (377) (301) (196)

equity-based compensation costs 4

Investment and other income (net of interest expense) 5

Distributable Earnings $ 2,695 $ 2,363 $ 2,244

Base management fees and direct costs are presented on a 100% basis.

Base management fees and direct costs for Oaktree totaled $955 million and $660 million for the year ended December 31, 2024 (2023 – $897 million and $618 million, respectively).

Refer to Note 3 “Investments” of the Consolidated and Combined Financial Statements for additional disclosures related to Oaktree revenues, expenses, and net income.

Base management fees and direct costs are presented on a 100% basis for BAM and BAM's investment in Oaktree.

Direct costs include compensation expense, other operating expenses and general, administrative, and other expenses, and related Oaktree direct costs at 100%.

Fee-Related Earnings include Oaktree’s Fee-Related Earnings at our approximate 74% ownership interest (December 31, 2024 – 73%).

This adjustment adds back equity-based compensation and other income associated with the Asset Management Company's portion of partly owned subsidiaries’ investment income, realized carried interest, interest income received and charges paid on related party loans, and other income.

For the years ended December 31, 2024 and 2023

This adjustment adds back equity-based compensation costs.

This adjustment adds back other income associated with our portion of partly owned subsidiaries’ investment income, realized carried interest, interest income and interest expense.

For the year ended December 31, 2025

Fee Revenues for the year ended December 31, 2025 were $5.5 billion, an increase of $781 million or 17% compared to the prior year.

This increase was predominantly due to an increase in base management fees of $277 million or 7%, driven by incremental fees in credit as a result of earnings from our strategic partnerships.

Fee Revenues also increased from capital raised in BWS, capital deployed across our credit strategies, higher market capitalization of BBU, the AEL Mandate, and higher net asset values in certain of our credit funds.

In addition, fees earned from fundraising across the latest vintages of our flagship funds over the last twelve months also generated incremental Fee Revenues, specifically our fifth real estate and infrastructure flagship funds, the second vintage of our global transition fund, and the sixth vintage of our private equity flagship fund.

These increases in base management fees were partially offset by lower fees from our listed permanent capital vehicles due to a decrease in the net asset value of BPG and lower market capitalization of BIP, and the end of investment periods in certain of our older vintage funds.

Incentive distributions increased by $46 million or 12% as a result of an increase in BEP and BIP's quarterly dividend over the prior year of 5% and 6%, respectively.

Direct costs increased by $122 million or 6% from the prior year as we continue to scale our asset management business.

Distributable Earnings were $2.4 billion for the year ended December 31, 2024, an increase of $119 million compared to the prior year.

The increase was primarily driven by higher Fee-Related Earnings and higher investment income in certain of our strategic investments, partially offset by a decrease in other income due to lower interest earned on our deposit with BN and higher cash taxes on Fee-Related Earnings.

For the years ended December 31, 2023 and 2022

Fee Revenues for the year ended December 31, 2023 were $4.4 billion, an increase of $333 million or 8% compared to prior year.

This increase was predominantly due to an increase in base management fees of $336 million or 9%, driven by fees earned from fundraising for our latest infrastructure, real estate and private equity flagship funds and incremental fees earned in our credit platform as a result of capital deployed across our opportunistic credit funds.

In addition, fees from our perpetual strategy increased due to the increase in net asset values of underlying assets.

The increase in base management fees was partially offset by lower fees from our listed permanent capital vehicles due to decreases in market capitalizations.

This increase was predominantly due to an increase in base management fees of $663 million or 16%, driven by $123 million of incremental fee revenue from the fifth vintage of our flagship real estate fund and $114 million from the second vintage of our flagship global transition fund.

Additionally, $235 million of incremental Fee Revenues were primarily as a result of earnings from partner manager acquisitions during the year which are not reflected in the comparative year.

BAM also realized additional fees of $174 million from fundraising and growth across our private funds and complementary strategies and $48 million of higher Fee Revenues from our listed affiliates as a result of higher share prices of BIP, BEP, and BBU as well as a higher NAV of BPG.

In addition, we recognized incremental fee revenue of $55 million from BWS due to the AEL Mandate.

These increases were partially offset by $86 million in lower fees from certain credit strategies and earlier vintages of flagship funds due to distributions made to clients during the year.

Incentive distributions increased by $42 million or 10% as a result of an increase in BEP and BIP's quarterly dividend over the prior year of 5% and 6%, respectively.

Direct costs increased by $222 million or 12% from the prior year as we continue to scale our asset management business and higher equity-based compensation.

Performance fees of $95 million for the year were earned from BBU as BBU's share price surpassed its high watermark threshold above which a performance fee based on $31.53 is earned by BAM.

This increase in the share price set a go forward high watermark of $33.81 per unit.

BBU's high watermark threshold was not reached in 2024, thus no performance fees were earned in the prior year.

Transaction and advisory fees also decreased by $19 million as the prior year reflected higher fees from our renewable power and transition, and private equity strategies offset by higher transaction revenues from infrastructure in the current year.

Direct costs increased by $274 million or 13% from the prior year as we continue to scale our business.

Fee-Related Earnings not attributable to BAM decreased by $32 million due to lower Fee-Related Earnings from Oaktree.

Distributable Earnings were $2.7 billion for the year ended December 31, 2025, an increase of $332 million or 14% compared to the prior year.

The increase was driven by higher Fee-Related Earnings and higher equity-based compensation costs and other income of $113 million , primarily driven by higher interest income on our deposit with BN.

The overall increase in Distributable Earnings was partially offset by an increase in Cash taxes of $98 million due to higher Fee-Related Earnings .

The increase was primarily driven by $539 million of higher Fee-Related Earnings, partially offset by $137 million of lower investment income primarily due to higher interest expense as a result of our corporate debt as well as lower interest income earned on our cash deposit with BN, and $76 million of higher cash taxes on Fee-Related Earnings.

Investment Strategy Results

In each of our product categories, we invest globally in various investment strategies, each benefiting from strong secular tailwinds that provide an expanding multi-trillion dollar investa ble universe.

Our investment strategies are (a) renewable power and transition, (b) infrastructure, (c) real estate, (d) private equity, and (e) credit.

Our investment strategies are (a) infrastructure, (b) renewable power and transition, (c) private equity, (d) real estate, and (e) credit.

The following tables summarize Fee-Bearing Capital and Fee Revenues by investment strategy:

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2025 2024 2023

Renewable power and transition $ 57,857 $ 52,363 $ 46,412

Infrastructure $ 106,398 $ 97,050 $ 94,635

Real estate 93,629 93,444 95,633

Renewable power and transition 67,245 57,857 52,363

Private equity 48,006 45,190 38,849

Real estate 101,682 93,629 93,444

Credit 279,383 244,815 177,707

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2025 2024 2023

Balance, beginning $ 456,998 $ 417,863 $ 364,133

Inflows 128,982 73,182 107,669

Outflows (27,888) (20,361) (22,042)

Distributions (18,028) (16,251) (12,161)

Market valuation 8,480 8,044 (20,247)

Other (10,003) (5,479) 511

Change 81,543 39,135 53,730

Balance, ending $ 538,541 $ 456,998 $ 417,863

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2024 2023 2022

Renewable power and transition $ 642 $ 595 $ 576

Infrastructure $ 1,287 $ 1,202 $ 1,216

Real estate 968 920 871

Renewable power and transition 828 642 595

Private equity 556 470 475

Real estate 1,090 968 920

Credit 1,726 1,424 1,175

Total Fee Revenues $ 5,487 $ 4,706 $ 4,381

Renewable Power and Transition

Infrastructure

Summary of Key Financial and Operating Measures

The following charts provide the Fee-Bearing C apital of o ur renewable power and transition investment strategy as at December 31, 2024, 2023 and 2022, and Fee Revenues for the years then ended.

The following charts provide the Fee-Bearing Capital of our Infrastructure investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023.

Fee-Bearing Capital Fee Revenues

AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS)

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.

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Permanent capital and perpetual strategies 58,448 51,312 47,290

23,044 22,700 20,510

Total Fee-Bearing Capital $ 106,398 $ 97,050 $ 94,635

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During the year ended December 31, 2025, Fee-Bearing Capital increased by $9.3 billion or 10% to $106 billion.

This increase was driven by fundraising for the second vintage of our global transition fund, capital deployments across our fund strategies, as well as inflows from BEP's issuance of medium term and perpetual green subordinated notes.

These increases were partially offset by distributions to BEP's unitholders and limited partners of our permanent and long-term private funds and the lower market capitalization of BEP due to the decrease in its share price.

Additionally, Fee-Bearing Capital decreased due to the end of the investment period in one of our earlier vintage funds during the year.

For the year ended December 31, 2023

During the year ended December 31, 2023, Fee-Bearing Capital increased by $6.0 billion or 13% to $52 billion.

This increase was driven by inflows attributable to fundraising for the second vintage of our global transition fund, capital deployments across our fund strategies, as well as BEP's $650 million equity offering in the second quarter of 2023.

In addition, the market capitalization of BEP increased due to an increase in its share price during the year.

These increases were partially offset by distributions paid to BEP’s unitholders and limited partners of our long-term private funds.

The $5.9 billion of inflows were primarily driven by perpetual strategies of $2.9 billion, long-term private funds of $2.2 billion, and debt and equity issuances from BIP of $730 million.

In addition, Fee-Bearing Capital increased by $4.7 billion from a higher market capitalization of BIP due to increases in its share price and $1.3 billion of favorable market valuations associated with certain perpetual strategies.

Other increases of $1.8 billion predominantly related to the rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition within the latest vintage of our infrastructure flagship fund based on investment mix.

These increases were partially offset by distributions of $4.4 billion paid to investors in our long-term private funds and perpetual strategies as well as BIP unitholders.

FOR THE YEARS ENDED DECEMBER 31,

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Total Fee Revenues $ 1,287 $ 1,202 $ 1,216

BEP Fee-Bearing Capital as at December 31, 2024 is $21.5 billion (December 31, 2023 – $22.1 billion;

December 31, 2022 – $20.5 billion)

For the year ended December 31, 2024

Fee Revenues increased by $47 million for the year ended December 31, 2024 relative to the year ended December 31, 2023.

Incentive distributions from BEP increased by $17 million due to a 5% increase in distributions compared to the prior period.

Fees from our perpetual strategies increased $10 million predominantly due to fundraising from co-investors in certain of our perpetual funds.

In addition, higher management fees and transaction fees were earned on the second vintage of our global transition fund, and other follow-on investments during the year.

These increases were partially offset by lower fees earned from co-investment capital in our long-term private funds.

BIP Fee-Bearing Capital as at December 31, 2025 is $35.1 billion (December 31, 2024 – $31.9 billion) and includes $5.4 billion of net debt (December 31, 2024 - $4.9 billion).

Consists solely of incentive distributions earned from BIP.

For the year ended December 31, 2025

Fee Revenues increased by $85 million or 7% for the year ended December 31, 2025 relative to the year ended December 31, 2024.

Fees from our long-term private funds increased $29 million relative to the prior year due to an increase in fees earned on our first global transition fund, which benefitted from a full year of fee revenues from 2022 fundraising, as well as an increase in fundraising and capital deployments across our other private funds.

Incentive distributions from BEP increased by $17 million, due to a 5% increase in distributions compared to the prior year.

These increases were partially offset by a decrease in perpetual strategy fees of $31 million predominantly due to lower fees earned from BEP resulting from a decrease in its average market capitalization relative to the prior year.

Infrastructure

The increase was primarily driven by $39 million of higher Fee Revenues due to capital raised and deployed from certain perpetual strategies and $21 million related to BIP as a result of a higher share price during the year.

In addition, Fee Revenues benefited from $11 million of higher transaction and advisory fees associated with our flagship infrastructure funds and an increase in incentive distributions of $25 million due to a 6% increase in BIP's quarterly dividend.

These increases were partially offset by a $10 million decrease in Fee Revenues as the prior year reflected higher fees from earlier vintages of flagship funds and complementary strategies.

Segment Earnings

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Segment Revenues $ 967 $ 907 $ 950

Segment Expenses

Compensation and benefits ( 255 ) (235) (223)

Other operating expenses (92) (71) (73)

Segment Earnings $ 620 $ 601 $ 654

For the year ended December 31, 2025

Segment Earnings increased by $19 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

The increase in Segment Earnings was primarily due to higher Segment Revenues driven by BIP due to a higher share price during the year and our complementary perpetual strategies, partially offset by higher Segment Expenses as we continue to scale our business.

Renewable Power and Transition

Summary of Key Financial and Operating Measures

The following charts provide the Fee-Bearing Capital of our Infrastructure investment strategy as at December 31, 2024, 2023 and 2022, and Fee Revenues for the years then ended.

The following charts provide the Fee-Bearing Capital of our Renewable Power and Transition investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023.

Fee-Bearing Capital Fee Revenues

AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS)

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.

6 unchanged sentences

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2024 2023 2022

2025 2024 2023

Balance, beginning $ 57,857 $ 52,363 $ 46,412

8 unchanged sentences

During the year ended December 31, 2025, Fee-Bearing Capital increased by $9.4 billion or 16% to $67 billion.

This increase was predominantly due to the higher market capitalization of BIP due to the increase in its share price, fundraising for co-investments alongside our fifth flagship fund as well as capital deployed and valuation increases across our perpetual strategies.

These increases were partially offset by the end of the investment period of our fourth flagship fund, distributions paid to BIP unitholders, and distributions paid to limited partners in our long-term private funds and perpetual strategies.

For the year ended December 31, 2023

During the year ended December 31, 2023, Fee-Bearing Capital increased by $11.9 billion or 14% to $95 billion.

This increase was predominantly due to capital raised for our fifth flagship fund, as well as capital deployed for follow-on investments within our third flagship fund.

Additionally, Fee-Bearing Capital increased as a result of debt issuances from BIP, follow-on investments within our other perpetual and long-term strategies, and an increase in market valuations as a result of a higher market capitalization of BIP and other perpetual strategies.

These increases were partially offset by distributions paid to limited partners in our long-term private funds and to BIP and other unitholders across our permanent capital vehicles.

This increase was predominantly driven by $10.4 billion of inflows of which $5.4 billion was from the final closes within the second vintage of our flagship global transition fund, $2.1 billion of fundraising and capital deployments within our long-term as well as permanent and perpetual fund strategies, and $1.8 billion from fundraising for our catalytic transition fund.

In addition, Fee-Bearing Capital increased by $5.5 billion predominantly from a higher market capitalization of BEP due to an increase in its share price during the year.

These increases were partially offset by $3.5 billion of distributions to BEP's unitholders and investors in our long-term private funds and perpetual strategies.

Movement of $3.0 billion in other was predominantly due to a rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition within the latest vintage of our infrastructure flagship fund based on investment mix as well as debt repayment by BEP.

FOR THE YEARS ENDED DECEMBER 31,

12 unchanged sentences

Total Fee Revenues $ 828 $ 642 $ 595

BIP Fee-Bearing Capital as at December 31, 2024 is $31.9 billion (December 31, 2023 – $31.2 billion;

December 31, 2022 – $29.2 billion).

BEP Fee-Bearing Capital as at December 31, 2025 is $25.8 billion (December 31, 2024 – $21.5 billion) and includes net debt of $3.7 billion (December 31, 2024 - $3.9 billion).

Consists solely of incentive distributions earned from BEP.

For the year ended December 31, 2025

Fee Revenues decreased by $14 million or 1% for the year ended December 31, 2024 relative to the year ended December 31, 2023.

The decrease was driven by one-time catch-up fees and transaction and advisory fees in the prior year and lower fees earned from BIP due to a lower average market capitalization in the current year.

This was partially offset by higher Fee Revenues from an increase in incentive distributions of $29 million predominantly due to a 6% increase in BIP's quarterly dividend, as well as capital raised and deployed by certain of our perpetual strategies.

Fee Revenues increased by $186 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

Total management and advisory fees increased by $169 million anchored by long-term private funds which generated $78 million of higher fee revenues from subsequent closes of the second vintage of our flagship global transition fund and $36 million of incremental fee revenues from certain complementary strategies, partially offset by $9 million of lower fee revenues from older vintages of certain long-term private funds.

In addition, our perpetual strategies earned $37 million of higher fee revenues primarily driven by an increase of $19 million from certain of our complementary strategies and $18 million of higher fee revenues from BEP as a result of a higher average market capitalization in the current year.

Catch-up fees increased by $37 million as a result of subsequent closes in the second vintage of our global transition fund and catalytic transition fund, which were partially offset by $13 million of lower transaction and advisory fees in the current year.

In addition, incentive distributions from BEP increased by $17 million due to a 5% increase in distributions compared to the prior year.

Segment Earnings

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Segment Revenues $ 682 $ 513 $ 483

Segment Expenses

Compensation and benefits ( 168 ) (132) (116)

Other operating expenses (63) (35) (31)

Segment Earnings $ 451 $ 346 $ 336

For the year ended December 31, 2025

Fee Revenues increased by $171 million or 16% for the year ended December 31, 2023 relative to the year ended December 31, 2022.

Fees from our long-term private funds increased by $95 million primarily due to capital raised for our fifth flagship fund.

Fee Revenues from our perpetual strategies increased by $24 million, driven by capital deployed, partially offset by lower fees earned from BIP due to a lower average market capitalization compared to the prior year.

Catch-up fees increased by $35 million due to follow on closes for our fifth flagship fund and incentive distributions increased by $26 million due to an increase in BIP's quarterly dividend.

The increases were partially offset by a decrease of $9 million of transaction and advisory fees as the prior year benefited from higher fees on co-investment transactions.

Segment Earnings increased by $105 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

The increase in Segment Earnings was primarily due to higher Segment Revenues driven by additional closes of the second vintage of our flagship global transition fund and inflows from perpetual funds resulting in incremental fee revenues.

In addition, increases to Segment Revenues were as a result of a higher average market capitalization of BEP in the current year.

These increases were partially offset by higher Segment Expenses to support the scaling of our business.

Private Equity

Summary of Key Financial and Operating Measures

The following charts provide the Fee-Bearing Capital for our Real Estate investment strategy as at December 31, 2024, 2023 and 2022, and Fee Revenues for the years then ended.

The following charts provide the Fee-Bearing Capital of our Private Equity investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023.

Fee-Bearing Capital Fee Revenues

AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS)

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.

The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.

Fee-Bearing Capital

15 unchanged sentences

For the year ended December 31, 2025

During the year ended December 31, 2024, Fee-Bearing Capital increased by $185 million to $94 billion.

This increase was predominantly due to inflows attributable to fundraising within our fifth flagship fund, follow-on investments in our third flagship fund, and equity issuances in BPG.

Additional closes and capital deployed across various other fund strategies also contributed to our Fee-Bearing Capital.

These increases were partially offset by distributions from our permanent and perpetual strategies, flagship and other private funds.

Additionally, Fee-Bearing Capital for BPG and certain long-term and perpetual strategies decreased due to a net decline in valuations.

For the year ended December 31, 2023

During the year ended December 31, 2023, Fee-Bearing Capital decreased by $2.2 billion or 2% to $93 billion, predominantly due to distributions from our perpetual strategies, flagship and other private funds.

Additionally, our long-term private funds Fee-Bearing Capital decreased due to the change in the fee base of one of our flagship funds from committed capital to invested capital as a result of the end of its commitment period.

Our permanent capital vehicles and perpetual strategies decreased due to a decline in the market valuation of certain assets.

These decreases were partially offset by inflows attributable to fundraising within our fifth flagship fund, follow-on investments in our third flagship fund, and capital deployed across various other fund strategies.

During the year ended December 31, 2025, Fee-Bearing Capital increased by $2.8 billion or 6% to $48 billion.

The increase was primarily driven by inflows of $5.3 billion associated with certain long-term private funds and co-investments made within our complementary strategies.

In addition, market valuation increases of $2.0 billion were primarily driven by BBU due to a higher share price during the year.

These increases were partially offset by other changes associated with write-downs from earlier vintages of our flagship funds and co-investment vehicles resulting in a decrease of $1.5 billion.

In addition, changes in other included $1.8 billion from the impact of changes in fee-basis and foreign exchange on certain co-investment vehicles and lower corporate debt at BBU.

Distributions of $1.1 billion were driven by our fourth flagship fund, other long-term private funds, and BBU.

FOR THE YEARS ENDED DECEMBER 31,

4 unchanged sentences

$ 156 $ 162 $ 177

Other long-term funds 192 175 174

Co-investment and other funds

Perpetual strategies

Co-investment and other funds

Catch-up fees — 7 16

Transaction and advisory fees 8 24 11

Total management and advisory fees 461 470 475

Performance fees 2

Total Fee Revenues $ 556 $ 470 $ 475

BPG Fee-Bearing Capital as at December 31, 2024 is $16.6 billion (December 31, 2023 – $17.9 billion;

December 31, 2022 – $20.8 billion).

BBU Fee-Bearing Capital as at December 31, 2025 was $9.1 billion (December 31, 2024 – $8.1 billion) and includes net debt of $1.3 billion (December 31, 2024 - $2.1 billion).

Consists solely of performance fees earned from BBU.

For the year ended December 31, 2025

During the year ended December 31, 2024, Fee Revenues increased by $48 million or 5% relative to the year ended December 31, 2023.

This was primarily from fees earned from our long-term private funds, driven by fundraising and catch-up fees for our fifth flagship fund and follow-on investments in our third flagship fund.

These increases were partially offset by lower net asset values in certain of our perpetual strategies and long-term private funds.

Fee Revenues increased by $86 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

This increase was primarily driven by performance fees of $95 million earned as a result of the share price of BBU exceeding the previous high watermark threshold, attributable to an increase in the volume weighted average unit price during the year.

The high watermark threshold to earn additional performance fees as at December 31, 2025 was $33.81 per unit, reflecting the adjusted high watermark.

In addition, incremental fee revenues from our complementary strategies and a higher share price of BBU contributed to $21 million of higher fee revenues.

These increases were partially offset by $6 million of lower fee revenues from our earlier vintages of our flagship funds as a result of the end of the investment period.

Furthermore, catch-up and transaction and advisory fees decreased by $23 million as the prior year reflected higher catch-up fees from the sixth vintage of our flagship fund and higher transaction and advisory fee revenue.

Segment Earnings

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Segment Revenues

$ 450 $ 470 $ 475

Segment Expenses

Compensation and benefits

(244) (235) (229)

(85) (74) (69)

Segment Earnings $ 121 $ 161 $ 177

For the year ended December 31, 2025

During the year ended December 31, 2023, Fee Revenues increased by $49 million or 6% due to the increase in revenues earned from fundraising for our fifth flagship fund and commitments throughout 2022 to our fourth flagship fund.

In addition, fees increased from capital invested in our residential, U.S., and other fund investments.

These increases were partially offset by catch-up fees recognized on our fourth flagship fund in the prior year and a decrease in fees earned by our perpetual vehicle due to the decrease in Fee-Bearing Capital of BPG as well as the disposition of investments within earlier vintages of our flagship funds.

Private Equity

Segment Earnings decreased by $40 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

Segment Earnings were lower in the current year as Segment Revenues reflected lower management fees from flagship funds as a result of monetizations and distributions during the year as well as higher transaction and advisory fees and catch-up fees recognized in the prior year.

These decreases were offset by higher Segment Revenues associated with our complementary strategies.

Segment Earnings also decreased as a result of higher Segment Expenses associated with growth in the business .

Summary of Key Financial and Operating Measures

The following charts provide the Fee-Bearing Capital for our Private Equity investment strategy as at December 31, 2024, 2023 and 2022, and Fee Revenues for the years then ended.

The following charts provide the Fee-Bearing Capital of our Real Estate investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023.

Fee-Bearing Capital Fee Revenues

AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS)

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

■ Long-term Private Funds

■ Permanent Capital Vehicles and Perpetual Strategies

The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.

17 unchanged sentences

During the year ended December 31, 2025, Fee-Bearing Capital increased by $8.1 billion, or 9% to $102 billion.

The increase was primarily driven by our acquisition of Pinegrove Ventures, and capital deployments and fundraising for co-investments in certain of our long-term private funds.

In addition, growth of Fee-Bearing Capital was attributable to the higher market capitalization of BBU as a result of an increase in its share price.

These increases were partially offset by distributions from other long-term strategies.

For the year ended December 31, 2023

During the year ended December 31, 2023, Fee-Bearing Capital decreased by $467 million or 1% to $39 billion.

The expiration of the management fee period of a mature flagship fund and distributions to our investors was partially offset by inflows of $4.4 billion for our long-term private funds.

This was largely driven by capital raised for our sixth flagship private equity fund and capital deployed across other strategies.

The increase was predominantly driven by $16.2 billion of inflows of which $5.6 billion was attributable to the opportunistic repayment of debt within BPG, $4.7 billion from the fifth vintage of our flagship fund, as well as $3.6 billion from co-investment capital and capital deployments across other flagship funds.

In addition, $2.3 billion of inflows were attributable to certain long-term private funds and complementary strategies.

These increases were partially offset by $6.7 billion of distributions from BPG, flagship funds and other long-term private funds.

In addition, other changes of $1.1 billion were as a result of lower valuations within an earlier vintage flagship fund as well as the net impact of foreign exchange.

FOR THE YEARS ENDED DECEMBER 31,

4 unchanged sentences

$ 505 $ 457 $ 396

Other long-term funds 175 174 186

Co-investment and other funds

Perpetual strategies

Co-investment and other funds

Catch-up fees 74 25 4

Transaction and advisory fees 24 11 9

Total Fee Revenues $ 1,090 $ 968 $ 920

BBU Fee-Bearing Capital as at December 31, 2024 was $8.1 billion (December 31, 2023 – $5.6 billion;

December 31, 2022 – $7.8 billion).

BPG Fee-Bearing Capital (of which BPY represents substantially all of the balance) as at December 31, 2025 is $19.0 billion (December 31, 2024 – $16.6 billion).

For the year ended December 31, 2025

Fee Revenues decreased by $5 million for the year ended December 31, 2024 relative to the year ended December 31, 2023.

This decrease was primarily due to the end of the investment period for our fifth flagship fund, realizations and returns of capital in our fourth flagship fund, and catch-up fees recognized in the prior period related to our sixth flagship fund.

These decreases were partially offset by capital raised for our sixth flagship fund, higher market capitalization of BBU, capital deployed across several of our other funds, and higher transaction fees related to certain of our long-term private funds.

During the year ended December 31, 2025, Fee Revenues increased by $122 million or 13% relative to the year ended December 31, 2024.

This increase was driven by $76 million of higher Fee Revenues predominantly from the latest vintage of our flagship fund, partially offset by $24 million of lower Fee Revenues from our earlier flagship fund vintages due to realizations.

In addition, Fee Revenues from BPG and other perpetual strategies increased by $21 million as a result of the aforementioned growth in Fee-Bearing Capital.

Furthermore, Fee Revenues included higher catch-up fees of $49 million primarily from follow-on closes for our fifth flagship fund.

Segment Earnings

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Segment Revenues $ 1,083 $ 968 $ 920

Segment Expenses

Compensation and benefits ( 364 ) (340) (360)

Other operating expenses (116) (121) (132)

Segment Earnings $ 603 $ 507 $ 428

For the year ended December 31, 2025

Fee Revenues increased by $41 million or 9% for the year ended December 31, 2023 relative to the year ended December 31, 2022.

This increase was primarily due to capital raised for our sixth flagship fund which experienced a $59 million increase in Fee Revenues and catch up fees attributable to the timing of fundraising.

This increase was partially offset by a decrease in fees earned within our other funds due to the end of the management fee period for certain earlier vintage funds.

Segment Earnings increased by $96 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

The increase in Segment Earnings was primarily due to higher Segment Revenues associated with subsequent closes of our fifth flagship fund, partially offset by higher Segment Expenses due to scaling of our business.

Summary of Key Financial and Operating Measures

The following charts provide the Fee-Bearing Capital for our Credit investment strategy as at December 31, 2024, 2023 and 2022, and Fee Revenues for the years then ended.

The following charts provide the Fee-Bearing Capital of our Credit investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023.

Fee-Bearing Capital Fee Revenues

AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS)

■ Long-term Private Funds

■ Perpetual Strategies

■ Liquid Strategies

■ Long-term Private Funds

■ Perpetual Strategies

■ Liquid Strategies

The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended.

17 unchanged sentences

For the year ended December 31, 2025

During the year ended December 31, 2024, Fee-Bearing Capital increased by $67.1 billion or 38% to $245 billion, primarily due to the AEL Mandate, resulting in $49 billion of inflows of Fee-Bearing Capital.

BWS also contributed inflows of insurance-related capital.

Inflows of Fee-Bearing Capital also included our investment in Castlelake, capital deployed in our Oaktree credit, liquid credit, and other platform credit funds, as well as valuation gains in certain Oaktree liquid credit funds.

These increases were partially offset by annuity-related outflows in BWS, redemptions in our liquid and perpetual strategies, and returns of capital within our Oaktree, infrastructure, and real estate debt strategies.

For the year ended December 31, 2023

During the year ended December 31, 2023, Fee-Bearing Capital increased by $24 billion or 16% to $178 billion, due to growth across all strategies.

The increase in our long-term private funds was driven by deployments within our eleventh and twelfth flagship opportunistic credit funds, and capital deployed in certain of our debt funds.

In addition, our perpetual strategies increased primarily due to capital deployments and inflows from BWS as well as higher market valuations in our liquid strategy and open-end credit portfolios.

This overall increase was partially offset by redemptions adversely impacting our liquid strategies.

During the year ended December 31, 2025, Fee-Bearing Capital increased by $34.6 billion or 14% to $279 billion, primarily due to $24.5 billion of capital deployed within long-term private funds as well as perpetual and liquid credit strategies, $22.5 billion of insurance capital inflows from BWS, $3.7 billion of capital raised within our partner managers, and $2.3 billion of fundraising from our real estate and infrastructure debt strategies.

In addition, we recognized $11.3 billion of market valuation increases associated with our liquid and perpetual strategies as well as certain long-term private funds which further increased Fee-Bearing Capital.

These increases were partially offset by $11.0 billion of redemptions within certain of our liquid and perpetual strategies and $10.9 billion of outflows associated with BWS insurance capital.

In addition, distributions of $8.5 billion from our long-term private funds and complementary strategies, and $2.6 billion from our partner managers partially reduced Fee-Bearing Capital.

Credit changes in other primarily related to the acquisition of Angel Oak as well as the impact of foreign exchange revaluation across perpetual and liquid strategies partially offset by changes in fee-basis associated with certain perpetual and long-term private fund vehicles.

FOR THE YEARS ENDED DECEMBER 31,

6 unchanged sentences

Total Fee Revenues 2

$ 1,726 $ 1,424 $ 1,175

Represents open-end funds within our credit strategies, and Oaktree's investment in a fixed income manager, as well as in publicly listed securities.

Across the various categories, Fee-Bearing Capital from BWS as at December 31, 2025 was $108 billion which generated $234 million of Fee Revenues under the investment management agreement for the year ended December 31, 2025 (December 31, 2024 - Fee-Bearing Capital of $92 billion and Fee Revenues of $167 million).

For the year ended December 31, 2025

Fee Revenues increased by $302 million or 21% for the year ended December 31, 2025 relative to the year ended December 31, 2024.

The increase was attributable to incremental fees earned on our perpetual strategies and long-term private funds.

Fees from perpetual strategies increased by $134 million as a result of higher Fee-Bearing Capital driven by the AEL Mandate, and capital deployed across these strategies.

In addition, fees from our long-term private funds increased due to deployments across our credit flagship and other debt funds and higher fees earned from our strategic partnerships.

Fees from our long-term private funds increased by $221 million primarily due to higher fees earned in our partner managers, most notably Castlelake, as well as other complementary strategies.

Fees from permanent and perpetual strategies increased by $63 million as the current year reflected an additional quarter of fees from the AEL Mandate relative to the prior year, and capital deployed across our private credit strategies.

In addition, liquid strategies generated incremental fee revenues of $19 million driven by net inflows and positive valuation changes resulting in higher Fee-Bearing Capital.

Segment Earnings

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Segment Revenues

$ 1,633 $ 1,402 $ 1,149

Segment Expenses

Compensation and benefits

( 643 ) (628) (563)

(289) (253) (204)

Segment Earnings $ 701 $ 521 $ 382

For the year ended December 31, 2025

Fee Revenues increased by $53 million or 5% for the year ended December 31, 2023 relative to the year ended December 31, 2022.

The increase was predominately attributable to incremental fees earned on our long-term private funds and perpetual strategies.

Fees from our long-term private funds increased due to deployments across our credit flagship and other debt funds.

In addition, fees from perpetual strategies increased by $60 million as a result of higher Fee-Bearing Capital driven by valuation increases and capital deployed across these strategies.

These increases were partially offset by a $32 million decrease in our liquid strategies due to redemptions.

Segment Earnings increased $180 million for the year ended December 31, 2025 relative to the year ended December 31, 2024.

The increase in Segment Earnings was driven by higher Segment Revenues as a result of incremental earnings from our partner managers, most notably from Castlelake relative to the prior year, partially offset by higher Segment Expenses as a result of growth in the business.

Reconciliation of U.S.

5 unchanged sentences

Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings

The following presents a reconciliation of net income to Fee-Related Earnings and Distributable Earnings for the years presented for the asset management business.

The following presents a reconciliation of net income to Fee-Related Earnings and Distributable Earnings for the years ended December 31, 2025, 2024 and 2023.

FOR THE YEARS ENDED DECEMBER 31,

8 unchanged sentences

Other income and expenses (d)

93 129 (1,090)

Interest expense paid to related parties (e)

Interest expense (e)

Interest and dividend revenue (e)

4 unchanged sentences

(402) (339) (167)

Fee-related earnings of partly owned subsidiaries at our share (g)

Costs recovered from affiliates (h)

Fee-related earnings of equity method investments at our share (g)

Compensation costs recovered from affiliates (h)

Non-recurring restructuring costs (i)

Fee Revenues from BSREP III & other (j)

Other adjustments (j)

Fee-Related Earnings $ 2,995 $ 2,456 $ 2,241

Cash taxes (k)

Investment and other income (net of interest expense) (k)

Equity-based compensation expense (l)

Cash taxes (m)

(377) (301) (196)

Equity-based compensation expense and other (l)

Distributable Earnings $ 2,695 $ 2,363 $ 2,244

(a) This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of our asset management business.

(b) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings.

(b) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings as well as certain capital depreciation costs recharged from BAM's affiliates.

(c) These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense.

Unrealized carried interest allocations and associated compensation expense are non-cash in nature.

Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized.

(d) This adjustment removes other income and expenses associated with fair value changes.

(e) This adjustment removes interest and charges paid or received from related party loans.

(f) This adjustment adds back other revenues earned that are non-cash in nature.

(g) These adjustments remove our share of partly owned subsidiaries' earnings, including items (a) to (f) above and include its share of partly owned subsidiaries' Fee-Related Earnings.

(d) This adjustment removes other income and expenses associated with fair value changes for consolidated entities and funds.

(e) This adjustment removes interest and charges paid or received by consolidated entities and funds.

(f) This adjustment removes other revenues earned that are non-cash in nature.

(g) These adjustments remove our share of equity method investments' earnings, including items (a) to (f) above and include its share of equity method investments' Fee-Related Earnings.

(h) This item adds back compensation costs that will be borne by affiliates.

1 unchanged sentence

(j) This adjustment adds base management fees earned from funds that are eliminated upon consolidation and other items.

(k) Represents the impact of cash taxes paid by the business.

(l) This adjustment adds back equity-based compensation and other income associated with the Company's portion of partly owned subsidiaries’ investment income, realized carried interest, interest income received and charges paid on related party loans, and other income.

(k) This adjustment adds back other income associated with our portion of partly owned subsidiaries’ investment income, realized carried interest, interest income received and interest expense.

(l) This adjustment adds back equity-based compensation costs.

(m) Represents the impact of cash taxes paid by the business.

Reconciliation of Revenues to Fee Revenues

The following presents our reconciliation of management fee revenues to Fee Revenues for the years presented.

The following presents our reconciliation of base management and advisory fees to Fee Revenues for the years ended December 31, 2025, 2024 and 2023.

FOR THE YEARS ENDED DECEMBER 31,

4 unchanged sentences

1,569 1,335 1,240

BSREP III Fees & other (c)

Other adjustments (c)

(27) (10) (1)

Fee Revenues $ 5,487 $ 4,706 $ 4,381

(a) This adjustment adds incentive distributions that are included in Fee Revenues.

(b) This adjustment adds management fees at 100% ownership.

(c) This adjustment involves base management fees earned from BSREP III and other funds that are eliminated upon consolidation.

(a) This adjustment adds incentive distributions and performance fees that are included in Fee Revenues.

(b) This adjustment adds Oaktree management fees at 100% ownership and our proportionate share of earnings from other partner managers excluding Oaktree.

(c) This adjustment involves base management fees earned from funds that are eliminated upon consolidation and other items.

Fee Revenues by Geography

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FOR THE YEAR ENDED DECEMBER 31, 2025

(MILLIONS) Renewable power and transition Infrastructure Real estate Private equity Credit Total

Infrastructure Renewable power and transition Private equity Real estate Credit Total

Management and advisory fees, net

United States of America $ 111 $ 124 $ 634 $ 227 $ 1,055 $ 2,151

Canada 159 354 40 74 40 667

United States $ 143 $ 111 $ 225 $ 653 $ 1,419 $ 2,551

United Kingdom 223 221 82 195 222 943

Canada 401 203 74 50 36 764

Other 200 147 80 192 49 668

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FOR THE YEAR ENDED DECEMBER 31, 2024

(MILLIONS) Renewable power and transition Infrastructure Real estate Private equity Credit Total

Infrastructure Renewable power and transition Private equity Real estate Credit Total

Management and advisory fees, net

United States of America $ 103 $ 210 $ 642 $ 222 $ 864 $ 2,041

Canada 176 422 44 104 12 758

United States $ 124 $ 111 $ 227 $ 634 $ 1,055 $ 2,151

United Kingdom 182 156 84 16 206 644

Canada 354 159 74 40 40 667

Other 247 87 85 278 123 820

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FOR THE YEAR ENDED DECEMBER 31, 2023

(MILLIONS) Renewable power and transition Infrastructure Real estate Private equity Credit Total

(MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total

Management and advisory fees, net

United States of America $ 210 $ 103 $ 222 $ 642 $ 864 $ 2,041

Canada 182 346 46 89 8 671

United Kingdom 204 151 69 191 148 763

Canada 422 176 104 44 12 758

Other 114 53 80 43 151 441

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Liquidity and Capital Resources

BAM undertakes limited activities, primarily receiving dividends from our asset management business as its main source of income and, in turn, making distributions to shareholders in accordance with its dividend policy.

It employs a limited number of resources which provide services to our asset management business and for whom associated costs are largely reimbursed.

Additional liquidity is available through a credit facility that is provided by our asset management business.

BAM Credit Facility with the Asset Management Company

On November 8, 2022, the Asset Management Company, as lender, established a five-year revolving credit facility with BAM for the amount of $500 million.

This is available in U.S.

and Canadian dollars, where U.S.

dollar borrowings are subject to the U.S.

Base Rate or SOFR plus a margin of 165 basis points, and Canadian Dollar borrowings are subject to the Canadian Prime Rate or Canadian Overnight Repo Rate Average (“CORRA”) plus a margin of 165 basis points.

As at December 31, 2024, BAM has drawn $219 million from this credit facility.

Our Asset Management Business Liquidity

Our asset management business maintains sufficient liquidity at all times, enabling it to participate in opportunities as they arise, withstand sudden adverse changes in economic conditions, and sustain distributions to BAM and BN.

Its primary sources of liquidity, which we refer to as corporate liquidity, consist of cash, short-term financial assets, as well as the undrawn portions of the $300 million revolving credit facility established on November 8, 2022, with BN as lender, and a $750 million five-year revolving credit facility established on August 29, 2024 through bilateral agreements with a group of lenders.

Both facilities are available in U.S.

and Canadian dollars.

dollar draws from the $300 million facility are subject to the U.S.

BAM maintains sufficient liquidity at all times, enabling it to participate in investment opportunities as they arise, withstand sudden adverse changes in economic conditions, and sustain distributions.

Typical cash flow activities include earning fees on assets managed, paying operating expenses, and paying cash dividends to shareholders.

From time to time, BAM may draw on a revolving credit facility to bridge timing differences between the receipt and outflow of funds.

It may also issue additional debt to finance growth through strategic investments.

The primary sources of liquidity, which we refer to as corporate liquidity, consist of cash, short-term financial assets, as well as the undrawn portions of the revolving credit facilities.

As at December 31, 2025, corporate liquidity for BAM is $3.0 billion.

This consists of $1.6 billion in cash and short term financial assets that are convertible to cash within twelve months, as well as $1.4 billion in undrawn credit facilities.

This liquidity can be deployed for use without any material tax consequences to support BAM in funding strategic transactions as well as seeding new investment products.

• On November 18, 2025, BAM completed a debt offering, issuing $600 million of 5-year bonds at a fixed annual coupon of 4.653% and $400 million of 10-year bonds at a fixed annual coupon of 5.298%.

BAM previously issued $750 million of 30-year bonds at a fixed annual coupon of 6.077% on September 9, 2025 and $750 million of 10-year bonds at a fixed annual coupon of 5.795% on April 24, 2025.

• On August 29, 2024, a $750 million five-year revolving credit facility was established through bilateral agreements with a group of lenders.

On September 5, 2025, BAM finalized the upsize of the facility from $750 million to $1.1 billion.

dollar draws are subject to the U.S.

Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points.

dollar draws from the $750 million facility are subject to the U.S.

As at December 31, 2025, the facility is undrawn.

• On November 8, 2022, a $300 million revolving credit facility was established, with BN as lender.

dollar draws are subject to the U.S.

Base Rate or SOFR plus a margin of 165 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 165 basis points.

As at December 31, 2024 both the $300 million and the $750 million facilities are undrawn.

As at December 31, 2024, corporate liquidity for our asset management business is $1.8 billion.

This consists of $792 million in cash and short term financial assets, including cash on deposit with BN and investments that are convertible to cash within twelve months, as well as $1.1 billion in undrawn credit facilities.

This liquidity can be deployed for use without any material tax consequences to support our asset management business in funding strategic transactions as well as seeding new investment products.

The following table presents deployable capital of our asset management business:

Corporate Group (a)

(MILLIONS) December 31 December 31 December 31 December 31

As at December 31, 2025, the facility is undrawn.

The following table presents our deployable capital:

Corporate (a)

AS AT DECEMBER 31,

2025 2024 2025 2024

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Undrawn committed credit facilities 1,350 1,050 9,565 7,928

Corporate liquidity $ 1,842 $ 2,950 $ 62,257 $ 34,986

Uncalled private fund commitments 110,854 91,463

Total deployable capital $ 2,961 $ 1,842 $ 183,608 $ 153,720

(a) Group deployable capital consists of:

(1) corporate liquidity of the Company and the perpetual affiliates, and (2) uncalled private fund commitments, which are third-party commitments available for drawdown in the private funds of our asset management business.

(a) Corporate deployable capital represents the corporate liquidity of BAM.

(b) Group deployable capital consists of:

(1) corporate liquidity of BAM, consolidated funds, and the perpetual affiliates, and (2) uncalled private fund commitments, which are third-party commitments available for drawdown in the private funds of BAM.

Uncalled Fund Commitments

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AS AT DECEMBER 31,

2025 2026 2027 2028 2029 + Total 2024 Dec.

Renewable power and transition $ 181 $ — $ — $ 753 $ 20,081 $ 21,015 $ 17,129

2026 2027 2028 2029 2030 + Total 2025

Infrastructure $ 190 $ — $ 208 $ — $ 12,171 $ 12,569 $ 12,848

Real estate 701 1,834 — — 13,110 15,645 22,507

Renewable power and transition — — 801 — 21,884 22,685 21,015

Private equity 271 125 472 465 11,890 13,223 11,360

Real estate 2,241 — — 2,447 17,895 22,583 15,645

Credit 2,815 938 144 1,967 33,930 39,794 30,595

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Clawback Obligations

Performance allocations are subject to clawback to the extent that the performance allocations received to date with respect to a fund exceeding the amount due to our asset management business based on cumulative results of that fund.

The amounts and nature of our clawback obligations are described in Note 2 “Summary of Significant Accounting Policies” of the Consolidated and Combined Financial Statements of the Asset Management Company as at December 31, 2024, and December 31, 2023, and for the years ended December 31, 2024, December 31, 2023, and December 31, 2022.

Performance allocations are subject to clawback to the extent that the performance allocations received to date with respect to a fund exceed the amount due to BAM based on cumulative results of that fund.

The amounts and nature of our clawback obligations are described in Part II, Item 8, Note 2 “Summary of Significant Accounting Policies” of the consolidated financial statements of BAM as at December 31, 2025, and 2024, and for the years ended December 31, 2025, 2024, and 2023.

Capital Requirements

entities of BAM are subject to various investment advisor and other financial regulatory rules and requirements that may include minimum net capital requirements.

See "Part I—Item 1.

Business—Regulatory Matters".

These requirements have been met for the year ended December 31, 2025.

Contractual Obligations

On January 31, 2019, a subsidiary of the Company committed $2.8 billion to BSREP III, of which $2.1 billion has been funded as at December 31, 2024 (December 31, 2023 – $2.1 billion).

On January 31, 2019, a subsidiary of BAM committed $2.8 billion to BSREP III, of which $2.2 billion has been funded as at December 31, 2025 (December 31, 2024 – $2.1 billion).

The remainder of the commitment will be funded by BN.

In the normal course of business, the Company enters into contractual obligations which include commitments to provide bridge financing and other equity commitments.

In the normal course of business, BAM enters into contractual obligations which include commitments to provide bridge financing and other equity commitments.

As at December 31, 2025, the Company had $6.6 billion of such commitments outstanding (2024 – $3.3 billion).

The Company established a $750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders.

BAM established a $750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders.

The facility is available in U.S.

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Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points.

As at December 31, 2024, the Company has not made any draws on the $750 million facility.

The following table presents the contractual obligations of BAM and the asset management business by payment periods:

During the year ended December 31, 2025, BAM increased the facility from $750 million to $1.1 billion.

As at December 31, 2025, the facility is undrawn.

The following table presents the contractual obligations of BAM by payment periods:

Payments Due by Period of BAM

(MILLIONS) Less than 1 Year 1 – 3

Years After 5

Accounts payable and other, net $ 175 $ 226 $ 207 $ 271 $ 879

Due to affiliates 229 — — — 229

Payments Due by Period of the Company

(MILLIONS) Less than 1 Year 1 – 3

AS AT DECEMBER 31, 2025

Less than 1 Year 1 – 3

Years After 5

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Lease obligations 12 24 23 9 68

Accounts payable and other, net of BAM represent amounts owing to employees for carried interest compensation and share based compensation, both of which have vesting periods of up to 5 years.

Due to affiliates of BAM represents amount due to the asset management business associated with the revolving credit facility established with the Company.

This revolving credit facility is due on demand.

Accounts payable and other, net of the Company represents amounts due to employees for equity-based compensations costs and carried interest compensation costs.

Corporate borrowings 1

— — 600 1,900 2,500

Excludes deferred financing costs

Accounts payable and other, net of BAM represents amounts due to employees for equity-based compensations costs and carried interest compensation costs.

Most awards have a vesting period of up to 5 years.

Due to affiliates represents amounts owed to related parties associated with equity and liability-based compensation as well as carried interest compensation.

Due to affiliates represents amounts owed to related parties associated with share-based compensation as well as carried interest compensation.

Lease obligations represent expected payments associated with current leases entered into by the Company.

Exposures to Financial Instruments

As discussed elsewhere in this report, we utilize various financial instruments in our business to manage risk and make better use of our capital.

The fair values of these instruments that are reflected on our balance sheets are disclosed in Note 5 “ Fair Value Measurements of Financial Instruments ” to our Consolidated and Combined Financial Statements of the Asset Management Company as at December 31, 2024, and December 31, 2023 and for the years ended December 31, 2024, December 31, 2023, and December 31, 2022.

As discussed elsewhere in this report, we utilize derivatives and other financial instruments in our business to manage risk and optimize the use of our capital.

The notional and fair values of these instruments are disclosed in Part II, Item 8, Note 6 “Fair Value Measurements of Financial Instruments” and Note 8 “Derivatives,” to the consolidated financial statements of BAM as at December 31, 2025, and 2024 and for the years ended December 31, 2025, 2024, and 2023.

Off-Balance Sheet Arrangements

BAM may from time to time enter into guarantees given in respect of co-investments in which there is carried interest.

The amount guaranteed is up to the carry amount paid to the General Partner, net of taxes.

The amount guaranteed is up to the carried interest amount paid to the General Partner, net of taxes.

No known amounts are currently due or owed under these guarantees.

Related Party Transactions

BAM and our asset management business entered into a number of related party transactions with BN and other affiliates.

See Note 17 “ Related Party Transactions ” of the Consolidated and Combined Financial Statements of the Asset Management Company and Note 7 “ Related Party Transactions ” of the Consolidated Financial Statements of BAM as at December 31, 2024, and 2023 and for the years ended December 31, 2024, 2023, and the period from July 4, 2022 to December 31, 2022.

BAM entered into a number of related party transactions with BN and other affiliates.

See Part II, Item 8, Note 20 “Related Party Transactions” of the consolidated financial statements of BAM as at December 31, 2025, and 2024 and for the years ended December 31, 2025, 2024, and 2023.

BAM Dividends

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Per Class A Share and Class B Share $ 1.75 $ 1.52 $ 1.28

$ 1.52 $ 1.28 $ —

Subsidiary Public Issuers

BAM Finance LLC (the “U.S.

Finco”) is a Delaware limited liability company formed on March 26, 2025 and is a subsidiary of the Company.

As at December 31, 2025, the U.S.

Finco had no debt outstanding.

BAM Finance (Canada) Inc.

(the “Canadian Finco”) was incorporated on March 26, 2025 under the Business Corporations Act (Ontario) and is a subsidiary of the Company.

As at December 31, 2025, the Canadian Finco had no debt outstanding.

Finco and Canadian Finco (together the “Finance Debt Issuers”) have no independent activities, assets or operations other than in connection with any securities that they may issue.

Any debt securities issued by the Finance Debt Issuers will be fully and unconditionally guaranteed as to payment of principal, premium (if any), interest and certain other amounts by the Company.

During the year ended December 31, 2025, BAM's $750 million senior notes due 2035, $750 million senior notes due 2055, $600 million senior notes due 2030 and $400 million senior notes due 2036, were all issued directly by BAM.

The following tables contain summarized financial information of the Company, U.S.

Finco, Canadian Finco and non-guarantor subsidiaries:

AS AT AND FOR THE YEAR ENDED

DECEMBER 31, 2025 (3)

Canadian Finco

Other subsidiaries of BAM (1)

Consolidating Adjustments (2)

BAM Consolidated

Revenues $ 86 $ — $ — $ 7,684 $ (2,953) $ 4,817

Net income (loss) attributable to shareholders 2,905 — — 2,160 (2,580) 2,485

Total assets 11,452 — — 45,111 (39,516) 17,047

Total liabilities 3,334 — — 11,307 (7,904) 6,737

Preferred shares redeemable

non-controlling interest — — — 1,398 — 1,398

AS AT AND FOR THE YEAR ENDED

DECEMBER 31, 2024

Canadian Finco

Other subsidiaries of BAM (1)

Consolidating Adjustments (2)

BAM Consolidated

Revenues $ 1,368 $ — $ — $ 5,474 $ (2,862) $ 3,980

Net income (loss) attributable to shareholders 1,460 — — 3,347 (2,639) 2,168

Total assets 13,558 — — 36,641 (36,042) 14,157

Total liabilities 4,806 — — 4,679 (6,519) 2,966

Preferred shares redeemable

non-controlling interest — — — 2,103 — 2,103

AS AT AND FOR THE YEAR ENDED

DECEMBER 31, 2023

Canadian Finco

Other subsidiaries of BAM (1)

Consolidating Adjustments (2)

BAM Consolidated

Revenues $ 456 $ — $ — $ 5,201 $ (1,595) $ 4,062

Net income (loss) attributable to shareholders 11,423 — — 2,529 (12,113) 1,839

Total assets 15,640 — — 33,443 (34,793) 14,290

Total liabilities 6,514 — — 2,581 (6,270) 2,825

Preferred shares redeemable

non-controlling interest — — — 2,166 — 2,166

This column accounts for investments in all subsidiaries of BAM other than the Finance Debt Issuers, on a combined basis.

This column includes the necessary amounts to present BAM on a consolidated basis.

Reflects the completion of the 2025 Arrangement.

Summary of Significant Accounting Policies

Critical Accounting Policies, Critical Accounting Estimates and Judgements of BAM

Critical Accounting Policies, Critical Accounting Estimates and Judgements

BAM prepares consolidated financial statements in conformity with U.S.

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BAM believes the following critical accounting policies could potentially produce materially different results of BAM, if underlying assumptions, estimates and/or judgments were to be changed.

For a full description of accounting policies, see Note 2 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements of BAM as at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023, and the period from July 4, 2022 to December 31, 2022.

All intercompany balances and transactions have been eliminated on consolidation.

For a full description of accounting policies, see Part II, Item 8, Note 2 “Summary of Significant Accounting Policies” of the consolidated financial statements as at December 31, 2025 and December 31, 2024 and for the years ended December 31, 2025, 2024, and 2023.

Equity Method Investments

Investments in which BAM is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting.

BAM has significant influence over the Asset Management Company and therefore accounts for its investment under the equity method.

BAM has significant influence over our partner managers and therefore accounts for these investments under the equity method.

The carrying value of equity method investments is determined based on amounts invested by BAM, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received.

Further, the carrying value of the equity method investment is adjusted as a result of any share-based awards granted by BAM to employees of the Asset Management Company.

Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity investments in the Consolidated Statements of Comprehensive Income.

Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity investments in the consolidated statements of operations.

BAM evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

Refer to Note 3 “ Investments ” of the Consolidated Financial Statements of BAM for further details of BAM's equity method investments.

Critical Accounting Estimates and Judgements of BAM

Management is required to make critical judgements and estimates when applying its accounting policies.

The following judgements and estimates have the most significant effect on the consolidated financial statements.

Refer to Part II, Item 8, Note 4 “Investments” of the consolidated financial statements for further details of our equity method investments.

Control or Level of Influence

When determining the appropriate basis of accounting for BAM's and the asset management business’ investees, BAM makes judgments about the degree of influence that it exerts directly or through an arrangement over the investees’ relevant activities.

When determining the appropriate basis of accounting for BAM's investees, BAM makes judgments about the degree of influence that it exerts directly or through an arrangement over the investees’ relevant activities.

This may include the ability to elect investee directors or appoint management.

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In making these judgments, BAM considers the ability of other investors to remove BAM as a manager or general partner in a controlled partnership.

Indicators of Impairment

Judgment is applied when determining whether indicators of impairment exist when assessing the carrying values of BAM ULC’s assets, including:

the determination of BAM’s ability to hold financial assets;

the determination of discount and capitalization rates;

and when an asset’s carrying value is above the value derived using publicly traded prices which are quoted in a liquid market.

BAM makes judgments when determining the future tax rates applicable and identifying the temporary differences.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply during the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the consolidated balance sheet dates.

Carried Interest Allocations - Unrealized

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See “Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments.

The asset management business uses fair value throughout the reporting process.

For details of our accounting policies related to fair value refer to Note 2.

“ Summary of Significant Accounting Policies — Fair Value of Financial Instruments ” and “ Summary of Significant Accounting Policies — Revenue Recognition ” in the “ Notes to Consolidated and Combined Financial Statements ”.

BAM uses fair value throughout the reporting process.

For details of our accounting policies related to fair value refer to Part II — Item 8.

“Summary of Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Revenue Recognition” in the “Notes to the consolidated financial statements”.

The following discussion is intended to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.

The fair value of the investments held by the asset management business's funds is the primary input to the calculation of certain of our management fees, incentive fees, performance fees and the related compensation we recognize.

The fair value of the investments held by BAM's funds is the primary input to the calculation of certain of our management fees, incentive fees, performance fees and the related compensation we recognize.

In the absence of observable market prices, we utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of the investments.

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Depending on the specific facts and circumstances of the investment, alternative primary and secondary methodologies may be applied, including option value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability-weighted methods, or recent financing rounds.

Assessments and Changes in Internal Control over Financial Reporting

Management has evaluated the effectiveness of BAM’s internal control over financial reporting (as defined in the applicable U.S.

and Canadian securities laws) as of December 31, 2024 and based on that assessment concluded that, as of December 31, 2024, our internal control over financial reporting was effective.

Refer to “Part II—Item 9A.

Controls and Procedures—Management’s Report on Internal Control Over Financial Reporting.” There have been no changes in our internal control over financial reporting during the quarter or year ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management, including the CEO and Chief Financial Officer, has evaluated the effectiveness of BAM's disclosure controls and procedures (as defined in the applicable U.S.

and Canadian securities laws) as of December 31, 2024.

Based on that evaluation, the CEO and Chief Financial Officer concluded that such disclosure controls and procedures were effective as of December 31, 2024.

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 7. Management’s Discussion and Analysis