What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-02 compared with 2025-03-17 · 906 added, 2734 removed, 751 unchanged (83% of the section changed)

4 unchanged sentences

Consolidated Balance Sheets as at December 31, 202 5 and 202 4

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023

and for the Period from July 4, 2022 to December 31, 2022

Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023

and for the Period from July 4, 2022 to December 31, 2022

Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023

and for the Period from July 4, 2022 to December 31, 2022

Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 202 5 , 202 4 and 2023

Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025 , 2024 a nd 2023

Consolidated Statements of Cash Flows for the Years Ended December 31, 2 025, 2024 and 2023

Notes to the Consolidated Financial Statements

Index to Brookfield Asset Management ULC Consolidated and Combined Financial Statements

Independent Auditor's Report (Deloitte LLP, Toronto, Canada, PCAOB ID No.

Consolidated and Combined Balance Sheets as at December 31, 2024 and 2023

Consolidated and Combined Statements of Operations for the Years Ended December 31, 2024 , 2023 and 2022

Consolidated and Combined Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022

Consolidated and Combined Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022

Consolidated and Combined Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022

Notes to the Consolidated and Combined Financial Statements

Index to Oaktree Asset Management Operating Group Combined and Consolidated Financial Statements

Report of Independen t Auditors (E rn st & Yo ung LLP, L os Angeles, California )

C ombined and C onsolidated Statements of Financial Condition as at December 31, 2024 and 2023

C ombine d and C onsolidated Statement s of Operations for the Years Ended December 31, 2024 , 2023 and 2022

C ombin ed and C onsolidated Statement s of Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022

C ombined and C onsolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022

C ombined and C onsolidated Statement s of Unitholders ' Capital for the Years Ended December 31, 2024, 2023 and 2022

Notes to the Combined and Consolidated Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

5 unchanged sentences

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as at and for the year ended December 31, 2025, of BAM and our report dated March 2, 2026, expressed an unqualified opinion on those financial statements.

As described in Management's Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Brookfield Asset Management ULC, which was acquired on February 4, 2025, and whose financial statements constitute 96% and 81% of total and net assets, respectively, 99% of revenues, and 96% of net income of the consolidated financial statement amounts as of and for the year ended December 31, 2025.

Accordingly, our audit did not include the internal control over financial reporting at Brookfield Asset Management ULC.

Basis for Opinion

23 unchanged sentences

We have audited the accompanying consolidated balance sheets of Brookfield Asset Management Ltd.

and subsidiaries (“BAM”) as at December 31, 2024 and 2023, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the two years in the period ended December 31, 2024 and for the period from July 4, 2022 to December 31, 2022, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of BAM as at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024 and for the period from July 4, 2022 to December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

and subsidiaries (“BAM”) as at December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of BAM as at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), BAM’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 2, 2026, expressed an unqualified opinion on BAM’s internal control over financial reporting.

10 unchanged sentences

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for Equity Method Investment in Brookfield Asset Management ULC – Refer to Notes 2 and 3 to the financial statements

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Accrued Carried Interest - Refer to Notes 2 and 4 to the financial statements

Critical Audit Matter Description

BAM has an approximate 27% interest in Brookfield Asset Management ULC and the remaining approximate 73% interest is held by Brookfield Corporation.

BAM has accounted for its interest in Brookfield Asset Management ULC under the equity method of accounting, as it is deemed to exert significant influence over the investee.

The carrying value of the equity method investment is determined based on the amounts invested by BAM, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received and impairment losses, if any.

We identified the accounting for equity method investment as a critical audit matter because of the significance of the equity method investment and earnings impact to BAM’s financial statements, which resulted in an increased extent of audit effort.

Carried interest is a performance fee arrangement in which the Company receives a percentage of investment returns from a fund and is based on cumulative fund performance, once returns exceed a fund’s contractually defined performance hurdles.

The Company calculates the accrued carried interest at the end of each reporting period that would be due to the Company, based on the terms of the relevant 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.

As the fair value of underlying investments varies between reporting periods, adjustments to accrued carried interest are recorded in the consolidated statements of operations as carried interest allocations.

Carried interest allocations are recorded as unrealized income or loss attributable to the Company until the underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met.

We identified the calculation of accrued carried interest as a critical audit matter because of the significance of this balance to the Company’s financial statements.

This results in a high degree of auditor judgment and subjectivity to perform our audit procedures and evaluate the audit evidence obtained.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to accounting for the equity method investment in Brookfield Asset Management ULC included the following, among others:

• Tested the effectiveness of controls related to the accounting for the equity method investment in Brookfield Asset Management ULC, which includes management’s receipt and review of Brookfield Asset Management ULC financial information;

• Evaluated significant judgments and estimates at the underlying equity method investment by obtaining and assessing information relating to the audit of Brookfield Asset Management ULC to understand significant judgments and estimates, significant findings or issues identified, actions taken to address them, and conclusions reached;

• Agreed the underlying information related to the changes in the equity method investment to the audited financial statements of Brookfield Asset Management ULC;

• Performed procedures to evaluate subsequent events related to the equity method investment and to assess their impact, if any, on the financial information, up to the date of our auditor’s report on BAM’s financial statements.

Our audit procedures related to the accrued carried interest included the following, among others:

• Evaluated whether the accrued carried interest calculations were performed in accordance with the terms of the fund agreements;

• Agreed underlying fund investments’ financial information used in the accrued carried interest calculations to information received directly from external third parties.

Oaktree – Investment - Refer to Notes 2 and 4 to the financial statements

Critical Audit Matter Description

The Company has an approximate 74% economic interest in Oaktree, which the Company has accounted for under the equity method of accounting as it is deemed to exert significant influence, but not control, over the investee.

The carrying value of the equity method investment is determined based on the amounts invested by the Company, including a step-up investment in the current year, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received, amortization of historical basis differences and impairment losses, if any.

We identified the accounting for the Oaktree equity method investment as a critical audit matter because of the significance of the equity method investment and earnings impact to the Company’s financial statements.

This audit matter required an increased extent of audit effort, including the need to involve fair value specialists and senior members of the engagement team.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to accounting for the equity method investment in Oaktree included the following, among others:

• Tested the effectiveness of controls related to accounting for the equity method investment in Oaktree, which includes management’s receipt and review of Oaktree financial information;

• Evaluated whether the consideration paid for the step-up investment was calculated in accordance with contractual agreements and, with the assistance of fair value specialists, assessed whether the methodology used by management to value the step-up investment was appropriate;

• Evaluated significant judgments and estimates at the underlying equity method investment through oversight of the auditor of Oaktree by obtaining and assessing information relating to the audit of Oaktree to understand significant judgments and estimates, significant findings or issues identified, actions taken to address them, and conclusions reached;

• Agreed the underlying information related to the changes in the equity method investment to the audited financial statements of Oaktree.

/s/ Deloitte LLP

9 unchanged sentences

Cash and cash equivalents $ 1,583 $ 404

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

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 ( 143 ) ( 35 )

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

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

(MILLIONS, EXCEPT PER SHARE AMOUNTS)

2024 2023 2022

Operating recoveries $ 482 $ 383 $ 37

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

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

Carried interest allocation compensation

Realized ( 61 ) ( 24 ) —

Unrealized ( 59 ) ( 38 ) ( 3 )

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

Interest expense ( 16 ) ( 9 ) —

Total expenses ( 511 ) ( 402 ) ( 39 )

Share of income from Brookfield Asset Management ULC 570 470 21

Net income $ 541 $ 451 $ 19

Comprehensive income:

Net income $ 541 $ 451 $ 19

Other comprehensive (loss) income:

Share of other comprehensive (loss) income from Brookfield Asset Management ULC ( 2 ) 3 —

Other comprehensive (loss) income ( 2 ) 3 —

Comprehensive income $ 539 $ 454 $ 19

Earnings per share

Basic $ 1.31 $ 1.15 $ 0.05

Diluted $ 1.28 $ 1.13 $ 0.05

Weighted-average shares

Basic 409.4 391.7 396.2

Diluted 419.6 396.5 400.9

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(MILLIONS, EXCEPT SHARE AMOUNTS) Shares of Brookfield Asset Management Ltd.

Brookfield Asset Management Ltd.

Class A common stock Class B common stock Common stock Treasury stock Additional paid-in-capital Retained earnings (deficit) Accumulated

comprehensive

income Non-controlling interest Total equity

Balance at July 4, 2022 — — $ — $ — $ — $ — $ — $ — $ —

Net income — — — — — 19 — — 19

Share subscriptions 2,404,747 — 52 — — — — — 52

Acquisition of treasury shares, net — — — ( 330 ) — — — — ( 330 )

Capital contribution 393,749,981 21,280 2,358 — 278 — — — 2,636

Balance at December 31, 2022 396,154,728 21,280 2,410 ( 330 ) 278 19 — — 2,377

Net income — — — — — 451 — — 451

Other comprehensive income — — — — — — 3 — 3

Share subscriptions 813,290 — — — ( 4 ) — — — ( 4 )

Acquisition of treasury shares, net ( 8,234,552 ) — — ( 319 ) — — — — ( 319 )

Contributions — — — — 129 — — 9 138

Distributions ($ 1.28 per share)

— — ( 56 ) — — ( 505 ) — — ( 561 )

Balance at December 31, 2023 388,733,466 21,280 2,354 ( 649 ) 403 ( 35 ) 3 9 2,085

Net income — — — — — 541 — — 541

Other comprehensive loss — — — — — — ( 2 ) — ( 2 )

Share subscriptions 30,109,594 — 1,121 — ( 8 ) — — — 1,113

Acquisition of treasury shares, net 1,374,076 — — ( 2 ) — — — — ( 2 )

Contributions — — — — 170 ( 19 ) — 22 173

Distributions ($ 1.52 per share)

— — — — — ( 630 ) — — ( 630 )

Balance at December 31, 2024 420,217,136 21,280 $ 3,475 $ ( 651 ) $ 565 $ ( 143 ) $ 1 $ 31 $ 3,278

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

Net income $ 541 $ 451 $ 19

Non-cash adjustments:

Share of income from Brookfield Asset Management ULC, net of dividends received 83 56 ( 21 )

Stock-based equity awards 3 6 —

Other expense, net — — 1

Other working capital and non-cash operating items

Accounts payable and other, net ( 133 ) 63 781

Due from affiliates 130 ( 70 ) ( 782 )

Due to affiliates 1 2 —

Other non-cash operating items 2 — —

627 508 ( 2 )

Investing activities

Purchase of other assets ( 41 ) ( 41 ) —

( 41 ) ( 41 ) —

Financing activities

Distributions paid to common stockholders ( 630 ) ( 505 ) —

Prepayment from affiliates 94 104 —

Share repurchases, net of subscriptions ( 10 ) ( 323 ) ( 278 )

Change in due to affiliates ( 37 ) 256 281

Capital provided by non-controlling interests — 9 —

( 583 ) ( 459 ) 3

Cash and cash equivalents

Change in cash and cash equivalents 3 8 1

Balance, beginning of period 9 1 —

Balance, end of period $ 12 $ 9 $ 1

Supplemental disclosure of cash flow information

Income taxes paid $ — $ — $ —

Interest paid $ 16 $ 9 $ —

Supplemental disclosure of non-cash investing and financing activities

Equity issuance for the acquisition of investments $ 1,144 $ — $ —

Settlement of due to affiliates $ — $ 56 $ 278

BROOKFIELD ASSET MANAGEMENT LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Brookfield Asset Management Ltd.

(“BAM”), through its investment in Brookfield Asset Management ULC (“asset management business”, the “Asset Management Company” or the “Company”) is an alternative asset manager.

BAM is listed on the New York and Toronto stock exchanges under the symbol BAM.

BAM was incorporated on July 4, 2022 and its head office is located at Brookfield Place, 250 Vesey Street, 15 th Floor, New York, NY, 10281-0221 and its registered office is located at 1055 West Georgia Street, 1500 Royal Centre, P.O.

Box 11117, Vancouver, British Columbia V6E 4N7.

On December 9, 2022, Brookfield Corporation (“BN”) completed the spin-off of 25 % of its interest in Brookfield Asset Management ULC (the “2022 Arrangement”).

BAM was incorporated for the purpose of holding a 25 % interest in Brookfield Asset Management ULC and to facilitate the 2022 Arrangement.

As part of the 2022 Arrangement, BN contributed certain indirect wholly-owned asset management subsidiaries to Brookfield Asset Management ULC.

The contribution of these entities was considered a common control transaction and was measured at historical cost.

Further, BN contributed a 25 % interest of Brookfield Asset Management ULC to BAM, and in exchange, BAM issued securities of BAM to BN’s shareholders at that time on a pro-rata basis.

BAM entered into several agreements and arrangements resulting from the 2022 Arrangement, among which include:

• The Asset Management Services Agreement (the “AMSA”) under which BAM provides the services of its employees and its Chief Executive Officer to Brookfield Asset Management ULC which pays BAM for the services of these individuals on a cost recovery basis.

Most of BAM's employees/executives spend their time discharging their duties as officers and employees of BAM and towards responsibilities related to Brookfield Asset Management ULC which include investment, corporate and other services.

In addition, at the request of Brookfield Asset Management ULC, BAM may provide options and long term incentive awards to its employees, which will be reimbursed under this agreement.

See discussion of the accounting for this agreement in the Operating Recoveries accounting policy in Note 2;

• The Transitional Services Agreement (the “TSA”) pursuant to which (i) Brookfield Asset Management ULC will provide BN and BAM, on a transitional basis, certain services to support day-to-day corporate activities (including services relating to finance, treasury, accounting, legal and regulatory, marketing, communications, human resources, internal audit, information technology), and (ii) BN will provide, on a transitional basis, certain services to Brookfield Asset Management ULC to facilitate the orderly transfer of the asset management business.

See discussion of the accounting for this agreement in the Related Parties accounting policy in Note 2;

• The Relationship Agreement under which certain employee share-based and performance-based compensation costs are recovered from BN.

See discussion of the accounting for this agreement in the Operating Recoveries accounting policy in Note 2.

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 limited voting 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 %.

This incremental ownership in the Asset Management Company was reflected in our earnings in the period.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying Consolidated Financial Statements of BAM have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) and are presented in U.S.

The Consolidated Financial Statements have been prepared in accordance with the accounting policies set out below.

Use of Estimates

The preparation of the Consolidated Financial Statements in accordance with U.S.

GAAP requires management to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes.

Management believes that estimates utilized in the preparation of the Consolidated Financial Statements are reasonable.

Such estimates include those used in the valuation of investments and the accounting for share-based and performance-based compensation.

Actual results may differ from those estimates and such differences may be material.

Consolidation

BAM consolidates all entities that it controls through a majority voting interest and all variable interest entities (“VIE”) for which it is the primary beneficiary.

An enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest.

A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.

BAM determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and upon events warranting reconsideration.

In determining whether BAM is the primary beneficiary, the Company evaluates its control rights as well as economic interests in the entity held either directly or indirectly by the Company.

Investments and redemptions (either by BAM, affiliates of the Company or third parties) and amendments to governing documents could affect an entity’s status as a VIE or the determination of the primary beneficiary, and management will re-evaluate its assessment as or when such events occur.

As at December 31, 2024, BAM is not the primary beneficiary of any VIE.

All intercompany balances and transactions have been eliminated on consolidation.

Foreign Currency

In the normal course of business, BAM may enter into transactions not denominated in U.S.

Foreign exchange gains and losses arising on such transactions are recorded in Net Income.

In addition, where BAM consolidates entities that have a non-U.S.

Dollar functional currency those non-U.S.

Dollar denominated assets and liabilities are translated to U.S.

Dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates that they were recorded.

Cumulative translation adjustments arising from the translation of non-U.S.

Dollar denominated operations are recorded in Other Comprehensive Income.

Cash and Cash Equivalents

Cash and cash equivalents represent cash on hand and cash held in banks.

Interest income from cash and cash equivalents is recorded in the Consolidated Statements of Comprehensive Income.

Equity Method Investments

Investments in which BAM is deemed to exert significant influence, but do not have a controlling financial interest, are accounted for using the equity method of accounting.

BAM has significant influence over Brookfield Asset Management ULC and therefore accounts for its investment under the equity method.

The carrying value of equity method investments is determined based on amounts invested by the Company, adjusted for the share of earnings or losses of the investee allocated based on the relevant agreements, less distributions received.

Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity method investments in the Consolidated Statements of Comprehensive Income.

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.

When BAM acquires an additional interest in an existing equity method investment, resulting in a step-up in basis, the difference between the purchase price and BAM's proportionate share of the book value of the investee’s net assets is identified and allocated to the fair value of the identifiable assets and liabilities of the investee at the acquisition date.

The excess of the purchase price over the book value of the net assets acquired is allocated to intangible assets and goodwill.

The basis difference is generally amortized over the remaining useful lives of the finite life intangible assets, while any amount allocated to indefinite life intangibles and goodwill is not amortized but is tested for impairment annually.

The amortization of the basis difference affects BAM’s share of the investee’s net income or loss and is included in the “Share of income from Brookfield Asset Management ULC” line item in the Consolidated Statements of Comprehensive Income.

The amortization periods for the intangible assets to which the basis difference is allocated are consistent with the estimated useful lives of those assets.

Refer to Note 3 for further details of BAM's equity method investments.

Accounts Payable and Accrued Liabilities

Accounts payable primarily consists of long-term compensation liabilities due to the employees of BAM.

Other assets include options to acquire shares of the Company.

BAM has elected the measurement alternative for equity investments without readily determinable fair values to be measured at cost minus accumulated impairment, if any.

The carrying amount of these investments as of December 31, 2024 was $ 75 million (2023 – $ 40 million).

For the year ended December 31, 2024, there has been no downward or upward adjustments made to the carrying amount of these investments due to impairment or observable price changes in orderly transactions for identical or similar investment of the same issuer.

Operating Recoveries

Operating Recoveries arise from the AMSA between BAM and Brookfield Asset Management ULC and the Relationship Agreement between BAM, Brookfield Asset Management ULC and BN.

Under the AMSA, recoveries are recognized on a cost recovery basis such that neither party receives financial gain nor suffers financial loss.

Income generated under the AMSA relating to these services is recognized as Operating Recoveries in the Consolidated Statements of Comprehensive Income on a gross basis as and when the services are performed by BAM.

Under the Relationship Agreement, certain employee share-based and performance-based compensation costs are recovered from BN.

Income generated under the Relationship Agreement relating to these awards is recognized as Operating Recoveries in the Consolidated Statements of Comprehensive Income on a gross basis.

Certain liabilities classified as share-based awards covered by the AMSA and the Relationship Agreement are required to be revalued at each balance sheet date.

As a result, where the revaluation results in an increase in the share-based award liability, BN and Brookfield Asset Management ULC will reimburse BAM while conversely, where the revaluation results in a decrease in the share-based award liability, BAM will be responsible for refunding the difference to BN and Brookfield Asset Management ULC.

Under the TSA, BAM is responsible for the costs of transitional services provided by Brookfield Asset Management ULC and BN.

Such costs are recognized as Operating Recoveries in the Consolidated Statements of Comprehensive Income when services are performed.

To the extent that Brookfield Asset Management ULC makes payments to BAM under the AMSA for share-based awards before they vest, such prepayments are recognized by BAM as deferred income included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets.

Compensation and Benefits

Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and (b) share-based compensation associated with the grants of share-based awards to employees of BAM.

Compensation costs relating to the issuance of share-based awards to senior management and employees of BAM is accounted for in accordance with ASC 718, Compensation - Stock Compensation , which measures the equity-classified awards at fair value on the grant date and expenses the awards over the vesting period.

Cash settled share-based awards and awards settled in a variable number of shares for a fixed monetary amount are classified as liabilities and are remeasured at the end of each reporting period, with forfeitures recognized as they occur.

In the normal course of business, BAM issues share-based compensation awards to employees of Brookfield Asset Management ULC.

Such awards are accounted for as awards issued to employees of equity method investees under ASC 323 Investments – Equity Method and Joint Ventures .

As the awards vest, BAM recognizes the entire cost of the awards as an expense included in share of income from equity method investments, as no proportionate funding by the other investors occurs and BAM does not receive any increase in its relative ownership percentage of Brookfield Asset Management ULC.

However, the cost associated with BAM’s ownership interest is recognized when BAM recognizes its share of Brookfield Asset Management ULC’s earnings.

Brookfield Asset Management ULC reimburses BAM for such awards, which BAM recognizes as income included in share of income from equity method investments in the same period as the associated cost of the awards.

As such, this arrangement with Brookfield Asset Management ULC has no net impact on BAM’s Consolidated Statements of Comprehensive Income.

To the extent that Brookfield Asset Management ULC reimburses BAM for such awards before they vest, BAM recognizes the reimbursement in additional paid-in capital.

Refer to Note 5 for further details of BAM's share-based compensation.

Carried Interest Compensation Expense

Carried interest is performance-based compensation associated with realized or unrealized carried interest earned on the performance of investments on a fund-by-fund basis.

Employees of BAM earn carried interest compensation which is subject to both positive and negative adjustments and recoverable from Brookfield Asset Management ULC and BN under the terms of the ASMA and the Relationship Agreement.

Related Parties

In the normal course of operations, BAM enters into various transactions on market terms with related parties, including amounts in Due from/to affiliates.

BAM and its subsidiaries may also transact with entities that share a common parent.

Amounts owed to and by equity method investments are not eliminated on consolidation.

See Note 7 for further detail.

Dividends are reflected in the Consolidated Financial Statements when declared.

Earnings per Share

BAM uses the two class method to calculate basic and diluted net income per share.

Earnings for each period are allocated to participating securities based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed.

Undistributed losses are not allocated to participating securities that do not have a contractual obligation to share in losses.

Diluted net income per share reflects the impact of dilutive instruments, which are generally determined using the treasury stock method.

For potentially dilutive instruments that are also participating securities, the treasury stock method or the two-class method, whichever, produces the more diluted result, is used to determine diluted net income per share.

Segment Reporting

We operate as one reportable and operating segment with our primary activity being the management of our investment in the Asset Management Company.

ASC 280, Segment Reporting, requires the use of the “ management approach ” to align segment reporting with our internal reporting, and our Chief Operating Decision Maker ( “ CODM ” ), BAM's Chief Executive Officer, manages operations on a consolidated basis and regularly reviews net income as the primary measure for assessing BAM's performance and allocating resources.

Asset management decisions are made at the BAM level and deployment of capital decisions are made based on our single operating segment for which the key measure is U.S.

GAAP net income and aligned with the Consolidated Statements of Comprehensive Income.

Substantially all of BAM's revenues and assets are recognized and domiciled in North America.

Significant segment expenses that are regularly provided to and reviewed by BAM's CODM would be consistent with the consolidated expenses as presented in the Consolidated Statements of Comprehensive Income.

The measure of segment assets is reported in the Consolidated Balance Sheets, as BAM is managed on a consolidated basis.

Recent Accounting Pronouncements

BAM considers the applicability and impact of all Accounting Standard Updates ( “ ASUs ” ) issued by the Financial Accounting Standards Board ( “ FASB ” ).

ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on the Company's Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07.

ASU 2023-07 intends to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

This is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

BAM adopted this accounting standard effective for the year ended December 31, 2024 and its adoption did not have a material impact on BAM's Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, which requires public business entities to disclose specific information about existing costs and expenses in the notes to its financial statements.

This ASU is intended to provide users with useful information about expenses critical to understanding an entity's performance.

This standard requires that a public business entity disclose key expenses including, but not limited to, employee compensation, depreciation and amortization, and associated qualitative disclosures about the nature of expenses.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027.

BAM is currently assessing the impact of this update.

BAM has a variable interest in the Company, an unconsolidated VIE.

It has been determined that BAM is not the primary beneficiary mainly due to its lack of power to unilaterally make decisions about the activities that most significantly impact the VIE’s returns.

BAM accounts for its interest in the Company using the equity method of accounting as it has significant influence from its approximate 27 % (2023 – 25 %) equity interest and its ability to appoint two of four directors on the VIE’s board.

During the year ended December 31, 2024, BAM issued 28,803,599 Class A limited voting shares with a fair value of $ 1.1 billion to BN in exchange for 28,803,599 shares of the Asset Management Company.

This transaction increased BAM's ownership interest in the Company to approximately 27 %.

BAM accounted for the step-up in basis by allocating the excess of the purchase price over the proportionate share of the book value of the net assets acquired to the identifiable assets and liabilities of the Company.

Additionally, during the year ended December 31, 2024, BAM acquired redeemable preferred shares of a subsidiary of the asset management business valued at $ 47 million in exchange for common shares of the Asset Management Company which has been accounted for as a debt security held at amortized cost.

As at December 31, 2024, the carrying value of the equity method investment was equal to BAM’s interest in the Company’s underlying net assets.

The summarized financial information and results of BAM’s equity method investee, Brookfield Asset Management ULC, are outlined in the tables below:

AS AT DECEMBER 31,

(MILLIONS) 2024 2023

Cash $ 404 $ 2,667

Investments 9,113 7,522

Assets 14,157 14,290

Liabilities 2,966 2,825

Preferred shares redeemable non-controlling interest 2,103 2,166

Equity 9,088 9,299

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

2024 2023 2022

Revenues $ 3,980 $ 4,062 $ 174

Expenses ( 1,680 ) ( 1,546 ) ( 61 )

Net income 2,108 2,137 84

Net loss (income) attributable to preferred shares redeemable non-controlling interest 211 ( 262 ) ( 35 )

Net (income) attributable to non-controlling interest ( 151 ) ( 36 ) ( 6 )

Net income attributable to the common stockholders 2,168 1,839 43

For the year ended December 31, 2024, BAM’s share of net income from the Company was $ 570 million (2023 – $ 470 million;

period from December 9, 2022 to December 31, 2022 – $ 21 million) and BAM received cash distributions from the Company of $ 653 million (2023 – $ 526 million;

period from December 9, 2022 to December 31, 2022 – $ nil ).

The assets and liabilities recognized in BAM’s Consolidated Balance Sheets as of December 31, 2024 and 2023, related to its maximum exposure to the loss of the Company as an unconsolidated VIE, are as follows:

AS AT DECEMBER 31,

(MILLIONS) 2024 2023

$ 3,331 $ 2,270

Due from affiliates

VIE related assets

Accounts payable

Due to affiliates

Maximum exposure to loss

$ 4,629 $ 3,779

BAM has not provided financial or other support to the Company during the periods presented above.

The income before provision of taxes consists of income earned in the jurisdictions in which we operate.

BAM does not currently carry a provision for taxes as there is no tax obligation on current period net income.

BAM's equity-accounted investment in the Company is expected to be realized through non-taxable dividends.

Accordingly, no tax provision has been recorded.

BAM's effective income tax rate is different from BAM's statutory income tax rate due to the following differences set out below:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

2024 2023 2022

Statutory income tax rate 27 % 27 % 27 %

(Reduction) increase in rate resulting from:

Non-taxable amounts

( 28 ) % ( 28 ) % ( 27 ) %

Valuation allowance

Effective income tax rate — % — % — %

A summary of the tax effects of the temporary differences is as follows:

AS AT DECEMBER 31,

2024 2023 2022

Losses $ 8 $ 2 $ —

Valuation allowance ( 8 ) ( 2 ) —

Deferred income tax assets

As at December 31, 2024, BAM did not have any material unrecognized tax benefits related to uncertain tax positions.

BAM files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates.

In the normal course of business, BAM is subject to examination by U.S and other local tax authorities.

As at December 31, 2024, no tax returns were subject to examination.

SHARE-BASED COMPENSATION

BAM, the Asset Management Company, and BN have granted share-based compensation awards to certain employees and directors of BAM, under a number of compensation plans (the “Equity Plans”).

The Equity Plans provide for the granting of share options, restricted shares, escrowed shares and deferred share and restricted share units which contain certain service or performance requirements of BAM or BN.

For the year ended December 31, 2024, BAM granted 6.1 million (2023 – 7.9 million) stock options at a weighted average exercise price of $ 40.07 (2023 – $ 35.13 ).

The compensation expense for the year ended December 31, 2024 was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term (2023 – 7.5 year term), 29.2 % volatility (2023 – 28.5 %), a weighted average expected dividend yield of 4.8 % annually (2023 – 4.6 %), a risk-free rate of 4.2 % (2023 – 3.9 %) and a liquidity discount of 25 % (2023 – 25 %), with a fair value of $ 6.12 per unit (2023 – $ 5.26 ).

The total fair value of the options granted during the year ended December 31, 2024 was $ 37.5 million (2023 – $ 41.3 million).

For the year ended December 31, 2024, BAM did no t grant any escrowed shares.

For the year ended December 31, 2023, BAM granted 4.8 million escrowed shares at a weighted average exercise price of $ 35.13 .

The compensation expense for the year ended December 31, 2024 and 2023 was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term, 28.5 % volatility, a weighted average expected dividend yield of 4.6 % annually, a risk-free rate of 3.9 % and a liquidity discount of 25 %, with a fair value of $ 5.26 per unit.

The total fair value of the escrowed shares granted during the year ended December 31, 2023 was $ 25.2 million.

The expenses of the share-based compensation are recognized on the financial statements of BAM and are summarized in the following table:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

2024 2023 2022

Expense arising from equity classified share-based payment transactions:

Management Share Option Plan $ 10 $ 10 $ 1

Escrowed Stock Plan 44 20 3

Restricted Stock Plan 7 7 1

$ 61 $ 37 $ 5

Expense (recovery) arising from cash-settled share-based payment transactions

Deferred Share Unit Plan $ 162 $ 113 $ ( 24 )

Restricted Share Unit Plan 5 43 ( 21 )

$ 167 $ 156 $ ( 45 )

Management Share Option Plan

BAM recognizes any awards associated with the existing Equity Plans for its employees irrespective of whether the awards were granted by BN or BAM.

Options issued under the Management Share Option Plan (“MSOP”) of both BN and BAM vest over a period of up to five years , expire ten years after the grant date and are settled through issuance of Class A shares of BN or BAM.

The exercise price is equal to the market price at the grant date.

For the year ended December 31, 2024, the total expense incurred by BAM with respect to MSOP totaled $ 10 million (2023 – $ 10 million, for the period from July 4, 2022 to December 31, 2022 – $ 1 million).

The change in the number of options during the year ended December 31, 2024 was as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2024

5,758 $ 26.57 15,088 $ 24.48

Transferred ( 32 ) 26.59 ( 40 ) 28.51

Granted 1,769 40.07 — —

Exercised ( 1,212 ) 19.15 ( 4,198 ) 20.12

Cancelled ( 198 ) 36.39 ( 95 ) 40.34

Outstanding as at December 31, 2024

6,085 $ 31.67 10,755 $ 26.07

Represents the continuity of BAM options relating to only those employees of BAM based on the BAM's weighted average exercise price which differs from that of BN.

The 14.1 million remaining shares, not included in the table above, are BAM options related to employees of the Asset Management Company and BN.

Represents the continuity of BN's options relating to only those employees of BAM based on BN's weighted average exercise price which differs from that of BAM.

The change in the number of options during the year ended December 31, 2023 was as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2023 3,639 $ 22.45 14,553 $ 25.38

Transferred 778 18.54 3,111 20.95

Granted 2,104 35.13 — —

Exercised ( 710 ) 14.31 ( 2,535 ) 16.12

Cancelled ( 53 ) 35.02 ( 41 ) 38.89

Outstanding as at December 31, 2023

5,758 $ 26.57 15,088 $ 24.48

Represents the continuity of BAM options relating to only those employees of BAM based on the BAM's weighted average exercise price which differs from that of BN.

The 11.4 million remaining shares, not included in the table above, are BAM options related to employees of the Asset Management Company and BN.

Represents the continuity of BN's options relating to only those employees of BAM based on BN's weighted average exercise price which differs from that of BAM.

The change in the number of options for the period from July 4, 2022 to December 31, 2022 was as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at July 4, 2022 — $ — — $ —

Transferred — — 13,972 23.77

Granted 3,663 22.39 899 46.62

Exercised ( 24 ) 12.18 ( 309 ) 13.90

Cancelled — — ( 9 ) 46.62

Outstanding as at December 31, 2022 3,639 $ 22.45 14,553 $ 25.38

Represents the continuity of BAM options relating to only those employees of BAM based on the BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN's options relating to only those employees of BAM based on BN's weighted average exercise price which differs from that of BAM.

The weighted-average grant date fair value of BAM MSOP granted for the year ended December 31, 2024, December 31, 2023 and the period from July 4, 2022 to December 31, 2022 were $ 6.12 , $ 5.26 , and $ 3.50 respectively, and was determined using the Black-Scholes valuation model, with inputs to the model as follows:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

Weighted-average share price US$ $ 40.07 $ 35.13 $ 22.39

Average term to exercise Years 7.5 7.5 7.4

Share price volatility 1

% 29.2 28.5 22.2

Liquidity discount % 25.0 25.0 25.0

Weighted-average annual dividend yield % 4.8 4.6 1.8

Risk-free rate % 4.2 3.9 2.1

Share price volatility was determined based on historical share prices of a similar or comparable entity for the prior period to the average term to exercise.

The weighted-average grant date fair value of BN MSOP granted for the period from July 4, 2022 to December 31, 2022 was $ 8.82 , and was determined using the Black-Scholes valuation model, with inputs to the model as follows:

FOR THE PERIODS YEARS ENDED

Unit 2024 2023 2022

Weighted-average share price US$ N/A N/A $ 46.62

Average term to exercise Years N/A N/A 7.5

Share price volatility 1

% N/A N/A 24.8

Liquidity discount % N/A N/A 25.0

Weighted-average annual dividend yield % N/A N/A 1.4

Risk-free rate % N/A N/A 1.9

Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share price of a similar or comparable entity for the prior period to the average term to exercise.

Escrowed Stock Plan

The Escrowed Stock (“ES”) shares generally vest over five years and must be held to the fifth anniversary of the grant date.

At a date no more than ten years from the grant date, all outstanding ES shares will be exchanged for Class A shares issued by BN or BAM based on the market value of the respective Class A shares at the time of the exchange.

The number of Class A shares issued on exchange will be less than the Class A shares purchased under the ES Plan resulting in a net reduction in the number of Class A shares issued by BAM.

For the year ended December 31, 2024, the total expense incurred with respect to the ES Plan totaled $ 44 million.

Number of Brookfield Asset Management Ltd.

Number of Brookfield Asset Management ULC Options 2

Number of Brookfield Corporation Options 3

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2024

9,038 $ 31.62 — $ — 17,668 $ 34.84

Transferred — — — — — —

Granted — — 3,410 40.32 — —

Outstanding as at December 31, 2024

9,038 $ 31.62 3,410 $ 40.32 17,668 $ 34.84

Represents the continuity of BAM ES relating to only those employees of BAM based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BAM ULC ES relating to only those employees of BAM based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN ES relating to only those employees of BAM.

Based on BN's weighted average exercise price which differs from that of BAM.

For the year ended December 31, 2023, the total expense incurred with respect to the ES Plan totaled $ 20 million.

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2023 5,452 $ 29.64 16,324 $ 34.84

Transferred 335 29.64 1,344 34.85

Granted 3,251 35.13 — —

Outstanding as at December 31, 2023 9,038 $ 31.62 17,668 $ 34.84

Represents the continuity of BAM ES relating to only those employees of BAM based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN ES relating to only those employees of BAM.

Based on BN's weighted average exercise price which differs from that of BAM.

For the period from July 4, 2022 to December 31, 2022, the total expense incurred with respect to the ES Plan totaled $ 3 million.

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at July 4, 2022 — $ — — $ —

Transferred — — 5 42.62

Granted 5,452 29.64 16,319 34.84

Outstanding as at December 31, 2022 5,452 $ 29.64 16,324 $ 34.84

Represents the continuity of BAM ES relating to only those employees of BAM based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN ES relating to only those employees of BAM.

Based on BN's weighted average exercise price which differs from that of BAM.

The weighted-average grant date fair value of BAM ULC escrowed shares granted for the year ended December 31, 2024 was $ 6.17 and the weighted-average grant date fair value of BAM escrowed shares granted for the year ended December 31, 2023 and the period ended December 31, 2022 were $ 5.26 and $ 3.83 , respectively, and were determined using the Black-Scholes model of valuation with inputs to the model as follows:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

Unit 2024 2023 2022

Weighted-average share price US$ $ 40.32 $ 35.13 $ 29.64

Average term to exercise Years 7.5 7.5 6.9

Share price volatility 1

% 29.2 28.5 28.9

Liquidity discount % 25.0 25.0 25.0

Weighted-average annual dividend yield % 4.8 4.6 5.3

Risk-free rate % 4.2 3.9 3.7

The weighted-average grant date fair value of BN escrowed shares granted for the period from July 4, 2022 to December 31, 2022 was $ 7.50 , and was determined using the Black-Scholes valuation model, with inputs to the model as follows:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022

Unit 2024 2023 2022

Weighted-average share price US$ N/A N/A $ 34.84

Average term to exercise Years N/A N/A 7.10

Share price volatility 1

% N/A N/A 27.00

Liquidity discount % N/A N/A 25.00

Weighted-average annual dividend yield % N/A N/A 1.00

Risk-free rate % N/A N/A 4.00

Share price volatility was determined based on historical share prices of a similar or comparable entity for the prior period to the average term to exercise.

Restricted Stock Plan

The Restricted Stock Plan awards executives with Class A shares of BN and BAM purchased on the open market (“Restricted Shares”).

Under the Restricted Stock Plan, Restricted Shares awarded vest over a period of up to five years , except for Restricted Shares awarded in lieu of a cash bonus, which may vest immediately.

Vested and unvested Restricted Shares are subject to a hold period of up to five years .

Holders of Restricted Shares are entitled to vote Restricted Shares and to receive associated dividends.

Employee compensation expense for the Restricted Stock Plan is charged against income over the vesting period.

Compensation expense recognized for the year ended December 31, 2024 was $ 7 million (2023 – $ 7 million;

for the period ended December 31, 2022 – $ 1 million).

Deferred Share Unit Plan

The Deferred Share Unit (“DSU”) Plan provides for the issuance of DSUs.

Under the plan, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of DSUs.

The DSUs vest over periods of up to five years , and accumulate additional DSUs at the same rate as dividends on Class A shares of BN and BAM based on the market value of the Class A Shares at the time of the dividend.

Participants may convert vested DSUs into cash upon retirement or cessation of employment.

The value of these DSUs, when converted to cash, will be equivalent to the market value of the Class A shares of BN and BAM at the time the conversion takes place.

The fair value of the vested DSUs as at December 31, 2024 was $ 488 million (December 31, 2023 – $ 336 million).

Employee compensation expense is charged against income over the vesting period of the DSUs.

As these awards are classified as liabilities, the amount payable in respect of vested DSUs changes as a result of dividends and share price movements.

All of the amounts attributable to changes in the amounts payable by the Company are recorded as employee compensation expense in the period of the change.

For awards issued as part of the 2022 Arrangement, the mark-to-market movement in the awards is recoverable from the Asset Management Company.

For the year ended December 31, 2024, employee compensation expense totaled $ 162 million (2023 – $ 113 million;

for the period ended 2022 – recovery of $ 45 million), due to a change in the underlying share price.

Restricted Share Unit Plan

The Restricted Share Unit (“RSU”) Plan provides for the issuance of RSUs.

Under the plan, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of RSUs.

The RSUs vest over periods of up to five years .

Participants may convert vested RSUs into cash upon retirement or cessation of employment.

The value of the RSUs, when converted into cash, will be equivalent to the difference between the market price of equivalent number of Class A shares of BN or BAM at the time the conversion takes place and the market price on the date the RSUs are granted.

Employee compensation expense is charged against income over the vesting period of the RSUs.

As these awards are liability classified, the amount payable in respect of vested RSUs changes as a result of dividends and share price movements.

All of the amounts attributable to changes in the amounts payable by the Company are recorded as employee compensation expense in the period of the change.

For awards issued as part of the 2022 Arrangement, the mark-to-market movement in the awards is recoverable from the Asset Management Company.

During the year ended December 31, 2024, the RSU Plan was settled and all participating BAM employees and directors received a cash settlement equal to the liability at the date of settlement.

As the RSU Plan was a plan of BN, all costs associated with settlement were reimbursed by BN.

As the RSUs have been settled, the fair value is $ nil as at December 31, 2024 (December 31, 2023 – $ 195 million).

For the year ended December 31, 2024, employee compensation expense totaled $ 5 million (2023 – $ 43 million), due to the change in the underlying share price.

The change in the number of BN DSUs and RSUs outstanding to employees of BAM for the year ended December 31, 2024 was as follows:

Number of Units Tracking to BAM Ltd.

share price (000's) Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD)

Outstanding as at January 1, 2024

1,503 6,834 5,488 $ 6.11

Transferred 83 129 — —

Granted and reinvested 108 47 — —

Exercised and cancelled — — ( 5,488 ) 6.11

Outstanding as at December 31, 2024

1,694 7,010 — $ —

The change in the number of BN DSUs and RSUs outstanding to employees of BAM for the year ended December 31, 2023 was as follows:

Number of Units Tracking to BAM Ltd.

share price (000's) Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD)

Outstanding as at January 1, 2023 1,207 6,067 5,488 $ 6.11

Transferred 190 747 — —

Granted and reinvested 115 56 — —

Exercised and cancelled ( 9 ) ( 36 ) — —

Outstanding as at December 31, 2023 1,503 6,834 5,488 $ 6.11

The change in the number of BN DSUs and RSUs outstanding to employees of BAM for period from July 4, 2022 to December 31, 2022 was as follows:

Number of Units Tracking to BAM Ltd.

share price (000's) Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD)

Outstanding as at July 4, 2022 — — — $ —

Transferred — 6,011 5,488 6.11

Granted and reinvested 1,207 56 — —

Exercised and cancelled — — — —

Outstanding as at December 31, 2022 1,207 6,067 5,488 $ 6.11

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period.

BAM applies the two-class method in calculating earnings per share for each of its two classes of shares and participating securities, based on their pro-rata share of earnings.

Class A shares held under the ES Plans in one or more private wholly-owned subsidiaries of BAM are classified as treasury shares and have been excluded from the calculation of earnings per share.

BAM has certain dilutive securities relating to outstanding restricted stock and options held by employees and non-employees and have been reflected accordingly in diluted earnings per share figures.

Basic and diluted net income per share of common stock for the year ended December 31, 2024, year ended December 31, 2023 and for the period from July 4, 2022 to December 31, 2022 was calculated as follows:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

(MILLIONS) 2024 2023 2022

Class A Shares Class B Shares Class A Shares Class B Shares Class A Shares Class B Shares

Net income $ 538 $ — $ 449 $ — $ — $ 19 $ —

Weighted average of common stock outstanding - basic 409.4 — 391.7 — — 396.2 —

Dilutive effect of conversion of options and escrowed shares using treasury stock method 10.2 — 4.8 — — 4.7 —

Weighted average of common stock outstanding - diluted 419.6 — 396.5 — — 400.9 —

Net Income per Share

Earnings per share - basic $ 1.31 $ 1.30 $ 1.15 $ — $ 1.15 $ 0.05 $ 0.05

Earnings per share - diluted $ 1.28 $ 1.30 $ 1.13 $ — $ 1.15 $ 0.05 $ 0.05

The following weighted average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded in the above computation of diluted net income per share attributable to common shareholders for the period presented due to their anti-dilutive effect:

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

(MILLIONS) 2024 2023 2022

Management stock options of BAM 4.2 8.2 3.4

Escrow shares of BAM 3.7 5.0 0.8

Restricted shares of BAM — — 0.6

Total 7.9 13.2 4.8

RELATED PARTY TRANSACTIONS

In the normal course of business, BAM enters into transactions with related parties by recovering or bearing the cost of certain employee compensation with BN and Brookfield Asset Management ULC and by borrowing on its $ 500 million credit facility with Brookfield Asset Management ULC to fund short-term working capital requirements.

Under the AMSA, BAM provides the services of its employees and its Chief Executive Officer to Brookfield Asset Management ULC on a cost recovery basis.

For the year ended December 31, 2024, under this arrangement BAM has recognized $ 181 million (2023 – $ 177 million;

period ended December 31, 2022 – $ nil ) in Operating Recoveries.

In addition, for the year ended December 31, 2024, BAM recovered $ 9 million (2023 – $ 4 million, period ended December 31, 2022 – $ nil ) in unrealized carried interest compensation expense from the asset management business.

As outlined in the Relationship Agreement, BN is responsible for the share-based awards issued by BN, some of which are subject to revaluation at each balance sheet date and will also bear the cost of the employee entitlement to carried interest on mature funds either directly or indirectly through reimbursement to the Company.

For the year ended December 31, 2024, BAM has recognized Operating Recoveries of $ 234 million (2023 – $ 206 million;

period ended December 31, 2022 – $ 35 million).

Under the TSA, Brookfield Asset Management ULC will provide BN and BAM certain services to support day-to-day corporate activities on a transitional basis.

For services provided to BAM, costs are recorded on a gross basis in the Consolidated Statements of Comprehensive Income.

For the year ended December 31, 2024, BAM has recognized less than $ 1 million (2023 – less than $ 1 million;

period ended December 31, 2022 – less than $ 1 million), in the Consolidated Statements of Comprehensive Income under this arrangement.

For the year ended December 31, 2024, BAM received from Brookfield Asset Management ULC prepayments under the AMSA for share-based compensation of $ 15 million (2023 – $ 16 million, period ended December 31, 2022 – $ nil ), respectively, which represent deferred income and has been included in Accounts payable and accrued liabilities.

For the year ended December 31, 2024, BAM received from Brookfield Asset Management ULC advanced reimbursements for BAM share-based awards issued to employees of Brookfield Asset Management ULC of $ 79 million (2023 – $ 88 million;

period ended December 31, 2022 – $ nil ), respectively, which has been recorded in additional paid-in capital.

Due from affiliates and Due to affiliates consisted of the following:

AS AT DECEMBER 31,

(MILLIONS) 2024 2023

Due from Affiliates

Receivables related to share and cash-based compensation $ 898 $ 824

Other transactions with related parties 70 62

Due to Affiliates

Borrowings on short-term credit facility $ 219 $ 256

Other transactions with related parties 10 5

In addition, BAM owns options to acquire Brookfield Asset Management ULC’s shares.

These options track certain options issued under our Management Share Option Plan and are automatically exercised at the same time and the same exercise prices as the tracked BAM options.

As of December 31, 2024, the carrying amount of these options is $ 75 million (2023 – $ 40 million) and is included in other assets on the Consolidated Balance Sheets.

COMMITMENTS AND CONTINGENCIES

BAM may from time to time enter into guarantees in respect of certain co-investments in which there is carried interest.

The amount guaranteed is up to the carry amount paid to the general partners of the respective funds, net of taxes.

In the event that the general partners default on their carry clawback obligations, BAM will make payments under the guarantees.

As at December 31, 2024, BAM has not recognized any liabilities with respect to such guarantees as no carry has been paid in the relevant funds.

BAM may from time to time be involved in litigation and claims incidental to the conduct of its business.

BAM’s business is also subject to extensive regulation, which may result in regulatory proceedings against the Company.

As of December 31, 2024, there is no outstanding litigation.

BAM accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.

In such cases, there may be an exposure to loss in excess of any amounts accrued.

Although there can be no assurance of the outcome of such legal actions, based on information known by management, BAM does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows.

SUBSEQUENT EVENTS

Quarterly Dividend

On February 11, 2025, the Board of BAM declared a quarterly dividend of $ 0.4375 per share, payable on March 31, 2025 to shareholders of record as at the close of business on February 28, 2025.

BAM Announces Completion of Enhanced Corporate Structure

On February 4, 2025, BAM completed a corporate restructuring with BN by way of a court-approved plan of arrangement (the “2025 Plan of Arrangement”), which was originally announced on October 31, 2024, whereby BN transferred its approximate 73 % interest in the Asset Management Company to BAM in exchange for newly issued Class A Shares of BAM, on a one-for-one basis (the “2025 Arrangement”).

Upon completion of the 2025 Arrangement on February 4, 2025, BAM issued 1,194,021,145 Class A Shares to BN and certain of its subsidiaries in exchange for all of the common shares of the Asset Management Company currently owned by BN and its subsidiaries on a one-for-one basis.

The 2025 Arrangement will be accounted for as a reverse asset acquisition in which BAM ULC is considered the accounting acquirer and have issued shares to acquire the net assets of BAM.

BAM will continue to be the SEC registrant and its Consolidated Financial Statements, including historical results, other than legal share capital, will be that of BAM ULC.

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of Brookfield Asset Management ULC

We have audited the consolidated and combined financial statements of Brookfield Asset Management ULC and subsidiaries (the “Company”), which comprise the consolidated and combined balance sheet as at December 31, 2024 and 2023, and the related consolidated and combined statements of operations, comprehensive income, changes in equity and cash flows for the years ended December 31, 2024, 2023, and 2022, and the related notes to the consolidated and combined financial statements (collectively referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024, 2023, and 2022 in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS).

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

/s/ Deloitte LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

March 17, 2025

BROOKFIELD ASSET MANAGEMENT ULC

CONSOLIDATED AND COMBINED BALANCE SHEETS

AS AT DECEMBER 31,

(MILLIONS, EXCEPT SHARE AMOUNTS)

Cash and cash equivalents $ 404 $ 2,667

Accounts receivable and other, net 333 483

3 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:

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

( 526 ) ( 91 )

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

BROOKFIELD ASSET MANAGEMENT ULC

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31

8 unchanged sentences

Interest and dividend revenue 98 143 172

Interest and dividend revenue of consolidated funds 31 — —

Other revenues 535 440 349

9 unchanged sentences

Total carried interest allocation compensation

( 146 ) ( 93 ) ( 86 )

Interest expense ( 87 ) ( 22 ) ( 14 )

Interest expense of consolidated funds ( 28 ) — —

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

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

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

Share of income from equity method investments 402 339 167

Other income, net of consolidated funds 47 — —

Income before taxes 2,925 2,546 2,554

1 unchanged sentence

Net income $ 2,398 $ 2,108 $ 2,137

Net (income) loss attributable to:

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

Net loss (income) attributable to:

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

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

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

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

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

BROOKFIELD ASSET MANAGEMENT ULC

CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31,

Earnings per share

Basic $ 1.54 $ 1.35 $ 1.16

Diluted $ 1.52 $ 1.34 $ 1.16

Weighted-average shares

Basic 1,612.2 1,603.4 1,585.8

Diluted 1,628.5 1,613.6 1,590.6

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

2025 2024 2023

Net income $ 2,398 $ 2,108 $ 2,137

Equity method investments 14 ( 3 ) 9

Currency translation 12 ( 3 ) 6

Comprehensive income $ 2,424 $ 2,102 $ 2,152

Comprehensive (income) loss attributable to:

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

Preferred share redeemable non-controlling interest 211 (262) (35)

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

Comprehensive income attributable to common stockholders $ 2,162 $ 1,854 $ 1,883

BROOKFIELD ASSET MANAGEMENT ULC

CONSOLIDATED AND COMBINED STATEMENTS OF CHANGES IN EQUITY

(MILLIONS, EXCEPT SHARE AMOUNTS) Common equity

Common Shares of Brookfield Asset Management ULC Net Parent Investment Common

shares Common

shares held in treasury Additional

capital Retained earnings

(deficit) Accumulated

Comprehensive loss (income) attributable to:

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

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

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

Comprehensive income attributable to the common stockholders $ 2,511 $ 2,162 $ 1,854

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(MILLIONS, EXCEPT SHARE AMOUNTS) Shares of Brookfield Asset Management Ltd.

Brookfield Asset Management Ltd.

Class A common stock Class B common stock Common

stock held in treasury Additional

capital Retained deficit Accumulated

comprehensive

common equity Non-controlling

interest Total

interest in consolidated entities Non-controlling

interest in consolidated funds Total

Balance at December 31, 2022 1,590,175,873 21,280 $ 9,271 $ — $ — $ 84 $ 153 $ 9,508 $ 98 $ — $ 9,606

Net income — — — — — 1,839 — 1,839 36 — 1,875

Currency translation — (29) — — — — (3) (32) — (32)

Other comprehensive income — — — — — — 15 15 — — 15

Share subscriptions 813,290 — — — — — — — — — —

Acquisition of treasury shares, net ( 8,234,552 ) — — — — — — — — — —

Contributions — — 1 — 122 — — 123 10 — 133

3 unchanged sentences

Net income — — — — — 2,168 — 2,168 151 — 2,319

Other comprehensive income — — — — — — 15 15 — 15

Other comprehensive loss — — — — — — ( 6 ) ( 6 ) — — ( 6 )

Share subscriptions 30,109,594 — 3 — — — — 3 — — 3

Acquisition of treasury shares, net 1,374,076 — — ( 91 ) — — — ( 91 ) — — ( 91 )

Contributions — — — — 30 — — 30 16 — 46

Distributions — — — — — ( 2,478 ) — ( 2,478 ) ( 4 ) — ( 2,482 )

Transfer of interest — — (29) — — — — (29) 29 —

Balance at December 31, 2024 1,614,238,281 21,280 $ 9,017 $ ( 91 ) $ 152 $ ( 488 ) $ 162 $ 8,752 $ 336 $ — $ 9,088

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(MILLIONS, EXCEPT SHARE AMOUNTS Shares of Brookfield Asset Management Ltd.

Brookfield Asset Management Ltd.

Class A common stock Class B common stock Common

stock held in treasury Additional

capital Retained deficit Accumulated

comprehensive

common equity Non-controlling

interest in consolidated entities Non-controlling

interest in consolidated funds Total

Balance at December 31, 2024 1,614,238,281 21,280 $ 9,017 $ ( 91 ) $ 152 $ ( 488 ) $ 162 $ 8,752 $ 336 $ — $ 9,088

Net income — — — — — 2,485 — 2,485 369 24 2,878

Other comprehensive loss — — — — — — (6) (6) — (6)

Other comprehensive income — — — — — — 26 26 — — 26

Share subscriptions 785,664 — 16 — ( 5 ) ( 19 ) — ( 8 ) — — ( 8 )

Acquisition of treasury shares (4,903,300) — — (91) — — — (91) — (91)

Acquisition of treasury shares, net ( 6,531,303 ) — — ( 428 ) — — — ( 428 ) — — ( 428 )

Contributions — — — — 151 — — 151 61 163 375

2025 Arrangement — — 120 ( 7 ) ( 144 ) — — ( 31 ) 31 — —

Distributions — — — — — ( 2,827 ) — ( 2,827 ) ( 24 ) — ( 2,851 )

Deconsolidation of consolidated funds — — — — — ( 2 ) — ( 2 ) — ( 166 ) ( 168 )

Balance at December 31, 2025 1,608,492,642 21,280 $ 9,153 $ ( 526 ) $ 154 $ ( 851 ) $ 188 $ 8,118 $ 773 $ 21 $ 8,912

BROOKFIELD ASSET MANAGEMENT ULC

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31

2024 2023 2022

(MILLIONS) 2025 2024 2023

Operating activities

Net income $ 2,398 $ 2,108 $ 2,137

Other expenses (income), net 69 54 (1,090)

Share of income from equity method investments, net of cash dividends (122) 21 22

Adjustments to reconcile net income to net cash from operating activities:

Other expenses, net 229 69 54

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

Share of income from equity method investments, net of cash distributions ( 7 ) ( 122 ) 21

Depreciation and amortization 40 14 14

2 unchanged sentences

Unrealized carried interest allocation, net ( 301 ) 33 ( 288 )

Other working capital and non-cash operating items (616) (624) (2,362)

Changes in operating assets and liabilities:

Changes in investments of consolidated funds ( 467 ) ( 251 ) —

Changes in other working capital and non-cash operating items ( 18 ) ( 616 ) ( 624 )

2,101 1,612 1,439

1 unchanged sentence

Investments ( 962 ) ( 1,909 ) ( 286 )

Investments held for sale (249) — —

Investments in consolidated funds (251) — —

Acquisition of subsidiaries, net of cash acquired 6 — —

Other assets ( 9 ) ( 8 ) ( 17 )

1 unchanged sentence

Investments 307 385 84

Disposition of subsidiaries, net of cash 52 — —

Investments held for sale 267 ( 249 ) —

Repayments from (advances to) related parties — 37 ( 256 )

2 unchanged sentences

Distributions to common stockholders ( 2,818 ) ( 2,478 ) ( 2,101 )

Issuance of non-recourse borrowings in consolidated funds 251 — —

Issuance of related party loans 67 197 172

Borrowings of consolidated funds 256 251 —

Distributions to non-controlling and redeemable non-controlling interests ( 216 ) ( 52 ) ( 42 )

Redemption of preferred shares redeemable non-controlling interest ( 94 ) — —

Purchase of treasury shares ( 412 ) — —

Corporate borrowings issuance, net 2,500 — —

Deferred financing fees ( 22 ) — —

Contributions from parent 12 56 —

Corporate borrowings — — (1,612)

Contributions from redeemable non-controlling interests — 2 517

Issuance of tracking option 37 41 —

Capital raised from non-controlling interests 179 — —

Preferred equity issuances 25 — 63

Issuance of related party loans — 67 197

Issuance of tracking option — 37 41

( 590 ) ( 2,119 ) ( 1,842 )

4 unchanged sentences

Balance, end of year $ 1,583 $ 404 $ 2,667

BROOKFIELD ASSET MANAGEMENT ULC

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31

2024 2023 2022

(MILLIONS) 2025 2024 2023

Supplemental cash flow disclosures

8 unchanged sentences

Income taxes paid

United States $ 190 $ — $ —

Canada 128 — —

United Kingdom 98 — —

Other jurisdictions 10 — —

Total income taxes paid $ 426 $ 449 $ 171

Interest paid $ 87 $ 22 $ 11

Supplemental disclosure of non-cash investing and financing activities

Non-cash investing and financing activities related to 2025 Arrangement $ 27 $ — $ —

Non-cash issuance of preferred shares redeemable non-controlling interest $ 94 $ 195 $ —

3 unchanged sentences

Non-cash distribution $ — $ — $ 229

BROOKFIELD ASSET MANAGEMENT ULC

NOTES TO THE CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

Brookfield Asset Management ULC (“our asset management business” or “the Company” or “Asset Management Company”) was formed on July 4, 2022 as an unlimited liability company under, and governed by, the laws of British Columbia.

The registered office of the Company is 1055 West Georgia Street, 1500 Royal Centre, P.O.

See notes to consolidated financial statements

BROOKFIELD ASSET MANAGEMENT LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Brookfield Asset Management Ltd.

(“BAM”, “we”, “our”, “us”, or the “Company”) is an alternative asset manager headquartered in New York, NY, and listed on the New York Stock Exchange (“NYSE”) and Toronto Stock Exchange (“TSX”) under the symbol BAM.

BAM focuses on infrastructure, renewable power and transition, private equity, real estate and credit, operating in various markets globally.

BAM was incorporated on July 4, 2022 and its head office is located at Brookfield, 225 Liberty Street, 8th Floor, New York, NY, 10281-1048 and its registered office is located at 1055 West Georgia Street, 1500 Royal Centre, P.O.

Box 11117, Vancouver, British Columbia V6E 4N7.

On May 12, 2022, Brookfield Corporation (“BN”) announced that it would separately list and distribute to its shareholders a 25% interest in its asset management business.

The transaction was completed on December 9, 2022 by way of an arrangement agreement (the “2022 Arrangement”), which resulted in the transfer of BN's historical asset management business into the newly incorporated Brookfield Asset Management ULC.

On completion of the 2022 Arrangement, BN transferred a 25% interest in Brookfield Asset Management ULC to Brookfield Asset Management Ltd.

References in these financial statements to “us,” “we,” “our” or “the Company” refer to our asset management business and its direct and indirect subsidiaries and consolidated entities.

Brookfield Asset Management ULC's asset management business focuses on renewable power and transition, infrastructure, real estate, private equity, and credit, operating in various markets globally.

The Company entered into several agreements and arrangements resulting from the 2022 Arrangement, among which include:

• The Asset Management Services Agreement (the “AMSA”) under which BAM provides the services of its employees and its Chief Executive Officer to the Company who in turn pays BAM for the services of these individuals on a cost recovery basis.

Most of BAM's employees/executives spend their time discharging their duties as officers and employees of BAM and towards responsibilities related to the Company which include investment, corporate and other services.

In addition, at the request of the Company, BAM may provide options and long term incentive awards to its employees, which will be reimbursed under this agreement.

See discussion of the accounting for this agreement in the Other Revenues accounting policy in Note 2;

• The Transitional Services Agreement (the “TSA”) pursuant to which the Company provides BN and BAM, on a transitional basis, certain services to support day-to-day corporate activities.

The transitional services are provided, at cost, for a period of three years from December 9, 2022, unless extended by mutual agreement.

T he Company also provides to BN, as required from time to time and on a cost recovery basis, services of its investment personnel to assist in acquisitions or other transactions undertaken by BN.

See discussion of the accounting for this agreement in the Related Parties accounting policy in Note 2;

• The Relationship Agreement under which (i) carried interest generated by our asset management business is allocated to BN at 100% with respect to mature funds and at 33.3% with respect to current funds, new funds and open-ended funds, through the Company’s non-controlling interest and redeemable preferred shares non-controlling interest held by BN, and (ii) certain employee share-based and performance-based compensation costs are recovered from BN.

On February 4, 2025, BAM completed a corporate arrangement with Brookfield Corporation (“BN”), whereby BN transferred its approximately 73 % interest in Brookfield Asset Management ULC (the “Asset Management Company”) to BAM in exchange for newly issued class A limited voting shares of BAM (“Class A Shares”) on a one-for-one basis (the “2025 Arrangement”).

See discussion of the accounting for the 2025 Arrangement in Note 3.

The financial statements of BAM for the periods prior to February 4, 2025, the closing date of the 2025 Arrangement, reflect historical financial information of Brookfield Asset Management ULC, the accounting acquirer, as the “Predecessor” entity.

For the periods thereafter, the financial statements reflect the financial position and results of the combined entity.

In addition, on July 4, 2022, the date of incorporation, the Company entered into certain agreements and arrangements, including the Relationship Agreement under which carried interest generated by BAM is allocated to BN at 100 % with respect to mature funds and at 33.3 % with respect to current funds, new funds and open-ended funds, through the Company’s non-controlling interest and preferred shares redeemable non-controlling interest held by BN.

Further, certain employee share-based and performance-based compensation costs are recovered from BN.

See discussion of the accounting for this agreement in the Other Revenues accounting policy in Note 2.

1 unchanged sentence

Basis of Presentation

The financial statements for periods prior to and through the date of the 2022 Arrangement were prepared on a combined standalone basis and were derived from the consolidated and combined financial statements and accounting records of BN.

The financial statements for the year ended December 31, 2024 2023, and 2022 and as of December 31, 2024 and 2023 are consolidated and combined financial statements of the Company and its subsidiaries and is based on the financial position and results of operations of the Company as a standalone company.

Intercompany balances and transactions between consolidated entities have been eliminated.

These consolidated and combined financial statements reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States (“U.S.

The historical results of operations and cash flows of the Company prior to the 2022 Arrangement presented in these consolidated and combined financial statements may not be indicative of what they would have been had the Company been an independent standalone entity, nor are they necessarily indicative of the Company's future results of operations, financial position and cash flows.

The consolidated and combined statements of operations for periods prior to and through the 2022 Arrangement include all revenues and costs directly attributable to the Company and an allocation of expenses related to certain Corporation corporate functions.

These allocated costs and expenses include executive management, finance, treasury, tax, audit, legal, information technology, human resources and risk management functions and the related benefit/cost associated with such functions, including employee share-based and performance based compensation.

These costs and expenses have been allocated to the Company based on direct usage or benefit where specifically identifiable, with the remaining expenses allocated primarily on a pro rata basis using an applicable measure of

revenues, headcount or other relevant measures.

The Company considers these allocations to be a reasonable reflection of the utilization of services or the benefit received.

The preparation of the Company's consolidated and combined financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes.

Actual results could differ from those estimates.

Generally, actual experience has been consistent with management's prior estimates and assumptions.

In many cases, management's estimates and assumptions are dependent on estimates of such future developments which may change in the future.

In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the accompanying consolidated and combined financial statements.

Certain of the comparative figures have been reclassified to conform to the consolidated and combined financial statement presentation adopted in the current year.

The accompanying consolidated financial statements of BAM have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) and are presented in U.S.

The consolidated financial statements have been prepared in accordance with the accounting policies set out below.

Certain of the comparative figures have been reclassified to conform with the current year's presentation.

This includes changes in consolidated funds which have been reclassified from investing activities to operating activities in the consolidated statements of cash flows to reflect the nature of these movements on the consolidated funds.

Use of Estimates

The preparation of the Consolidated and Combined Financial Statements in accordance with U.S.

GAAP requires management to make estimates that affect the amounts reported in the Consolidated and Combined Financial Statements and accompanying notes.

Management believes that estimates utilized in the preparation of the Consolidated and Combined Financial Statements are reasonable.

Such estimates include those used in the valuation of investments and financial instruments, the measurement of deferred tax balances (including valuation allowances), accrued carried interest, incentive distributions and the accounting for share-based and performance-based compensation.

The preparation of the consolidated financial statements in accordance with U.S.

GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes.

Management believes that estimates utilized in the preparation of the consolidated financial statements are reasonable.

Such estimates include those used in determining the fair value of investments and financial instruments, the measurement of deferred tax balances (including valuation allowances), accrued carried interest, incentive distributions and the accounting for share-based and performance-based compensation.

Actual results may differ from those estimates and such differences may be material.

Consolidation

The Company consolidates all entities that it controls through a majority voting interest and all variable interest entities (“VIE”) for which it is the primary beneficiary.

The Company consolidates all entities which it controls through a majority voting interest and all variable interest entities (“VIE”) for which it is the primary beneficiary.

An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest.

A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impacts the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.

The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion upon certain events.

1 unchanged sentence

Assets of a consolidated VIE can only be used to settle obligations of the consolidated VIE and creditors and other beneficial interest holders do not have recourse to the Company with respect to liabilities of its consolidated VIEs.

The Company’s other disclosures regarding VIEs are discussed in Note 4.

The Company consolidates the financial position and results of operations of certain funds, in which it is the primary beneficiary.

In the current period, the Company invested in two Brookfield-sponsored funds in which it has been determined to be the primary beneficiary.

For more information, the Company’s other disclosures regarding VIEs are discussed in Note 5.

The Company also consolidates the balance sheet and results of operations of certain funds in which it is the primary beneficiary.

All intercompany balances and transactions have been eliminated on consolidation.

Redeemable Preferred Shares Non-Controlling Interest

Upon completion of the 2022 Arrangement, the Company issued various special tracking preferred shares of subsidiaries of the Company (“Tracking Shares”) which provides BN with a redemption right, upon a liquidation or redemption event, to receive a preferred amount equal to the fair value of carried interest entitlement from certain tracked assets, net of any compensation related costs.

These returns are realized through the payment of cumulative dividends, as and when declared by the board of directors of the relevant Brookfield Asset Management ULC subsidiaries.

These tracking shares are entitled to vote, together with the common shares owned indirectly by the Company, in respect of those subsidiaries.

The tracking shares are presented as preferred share redeemable non-controlling interest within the Consolidated and Combined Balance Sheets, outside of permanent equity.

The first series of Tracking Shares issued by Brookfield U.S.

Holdings Inc.

(“BUSHI”), a subsidiary of the Company, provides BN with economic interest equal to effectively 100% of the carried interest earned in mature funds.

This series of Tracking Shares has a redemption clause whereby the issuer, whose board is controlled by BN, may elect to redeem the tracking shares upon the tenth anniversary of issuance.

While this series of tracking shares are not currently redeemable, the Company considers that it is probable that the instrument will become redeemable as the redemption requirement is only through passage of time.

As such, the relevant redeemable non-controlling interest recognized outside of permanent equity requires remeasurement at each reporting period.

Preferred Shares Redeemable Non-Controlling Interest

The Company has various outstanding special tracking preferred shares of certain subsidiaries of the Company (“Tracking Shares”) which provide BN with a redemption right, upon a liquidation or redemption event, to receive a preferred amount equal to the fair value of carried interest entitlement from certain tracked assets, net of any compensation related costs.

The carried interest entitlement is determined based on the hypothetical liquidation at book value method of valuation (“HLBV”) being applied to each such mature fund at each reporting date, which calculates the accrued carried interest that would be due to the Company pursuant to 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.

These returns are realized through the payment of cumulative dividends, as and when declared by the board of directors of the relevant BAM subsidiaries.

The Tracking Shares are entitled to vote, together with the common shares owned indirectly by the Company, in respect of those subsidiaries and are presented as preferred shares redeemable non-controlling interest within the consolidated balance sheets, outside of permanent equity.

The first series of Tracking Shares issued by Brookfield US Holdings Inc.

(“BUSHI”), a subsidiary of the Company, provides BN with an economic interest equal to effectively 100% of the carried interest earned in mature funds.

The first series of Tracking Shares also includes all economic interest associated with the Company's investment in BSREP III.

Any economics relating to the limited partnership interest in BSREP III is attributed to the preferred shares within the preferred shares redeemable non-controlling interest financial statement line item on the consolidated statement of operations.

Carried interest entitlement on BSREP III is also determined using the HLBV method.

The second series of Tracking Shares issued by Brookfield Manager Holdings Ltd.

(“BMHL”) provides BN with the economic interest equal to effectively a 33.3% share of similar distributions on open-ended funds.

This series of Tracking Shares can only be redeemed upon exceptional circumstances that cause a materially adverse impact to the subsidiary.

As the instrument is not currently redeemable and the Company considers such a triggering event to be remote and outside of the control of the entity, the relevant redeemable non-controlling interest recognized outside of permanent equity does not require remeasurement at each reporting period.

In addition to the Tracking Shares, BUSHI also has class B senior preferred shares and class B preferred shares outstanding as at December 31, 2024, all of which are held by BN.

(“BMHL”), a subsidiary of the Company, provides BN with an economic interest equal to effectively a 33.3 % share of similar distributions on open-ended funds.

During the year ended December 31, 2025, the second series of Tracking Shares was amended such that a future redemption by BMHL, whose board is controlled by BN, is now permitted upon the tenth anniversary of issuance, consistent with the first and third series of Tracking Shares.

The third series of Tracking Shares issued by BUSHI provides BN with an economic interest equal to 1.5 % of certain investments held by Oaktree, an equity method investment of BAM, excluding any fee earnings, carried interest, incentive fees and performance fees of that equity method investee.

Each series of Tracking Shares has a redemption clause whereby BUSHI for the first and third series and BMHL for the second series, each of whose board is controlled by BN, may elect to redeem the Tracking Shares upon the tenth anniversary of issuance.

While each series of Tracking Shares is not currently redeemable, the Company believes that each series of Tracking Shares will become redeemable as the redemption requirement is only through the passage of time.

As such the relevant redeemable non-controlling interest recognized outside of permanent equity requires remeasurement at each reporting period.

Once the first and second series of Tracking Shares are redeemed, the holder retains no further economic entitlement to the carried interest of the funds, and for the first series, the limited partner investment interest included within those respective Tracking Shares.

Once the third series of Tracking Shares are redeemed, the holder retains no further economic entitlement to the certain investments held by Oaktree included within those respective Tracking Shares.

BUSHI's issued share capital includes class B senior preferred shares outstanding as at December 31, 2025, all of which are held by BN.

The class B senior preferred shares entitle the holder to cumulative preferential cash dividends at $ 1.36375 per share per annum and are ranked senior to the BUSHI Tracking Shares, class B preferred shares and common shares.

The class B senior preferred shares were issued in December 2022 in conjunction with the 2022 Arrangement and are held by BN.

The class B senior preferred shares are redeemable by the issuer, whose board is controlled by BN, upon the tenth anniversary of issuance at a redemption amount of $ 25 per share plus accrued and unpaid dividends.

The class B preferred shares of BUSHI are redeemable at the option of both the holder and the issuer at a redemption amount of $25 per share plus declared and unpaid dividends, and title the holder to non-cumulative preferential cash dividends at 6.7% per annum on the redemption amount.

These preferred shares are non-voting and rank junior to the class B senior preferred shares and the BUSHI Tracking Shares and senior to common shares of the entity.

Due to the currently exercisable holder redemption option, these shares are presented as a part of preferred share redeemable non-controlling interest within the Company’s Consolidated and Combined Balance Sheets, outside of permanent equity and measured at their redemption amount plus any dividends declared and unpaid at each reporting date.

Additionally, the Company, as part of various equity-based compensation arrangements, has issued class A preferred shares to BN and BAM.

The shares rank junior to the Class B senior preferred and Tracking Shares and are redeemable at the option of the holder and the issuer at a redemption amount of $25 per share plus accrued and unpaid dividends and these preferred shares are non-voting.

The Company recognizes any change of the carrying amount of its preferred shares redeemable non-controlling interest in net (income) loss attributable to preferred share redeemable non-controlling interest in its Consolidated and Combined Statements of Operations.

While the class B senior preferred shares are not currently redeemable, the Company considers that it is probable such shares will become redeemable as the redemption requirement is only through the passage of time.

BUSHI's issued share capital includes class B preferred shares outstanding as at December 31, 2025, all of which are held by BN.

The class B preferred shares of BUSHI are redeemable at the option of both the holder and the issuer at a redemption amount of $ 25 per share plus declared and unpaid dividends, and entitle the holder to non-cumulative preferential cash dividends at 6.7 % per annum on the redemption amount.

These class B preferred shares are non-voting and rank junior to the class B senior preferred shares and the BUSHI Tracking Shares and senior to common shares of the entity.

Due to the currently exercisable holder redemption option, the class B senior preferred shares and class B preferred shares are presented as a part of preferred shares redeemable non-controlling interest within the Company’s consolidated balance sheets, outside of permanent equity and are measured at their redemption amount plus any dividends declared and unpaid at each reporting period.

Additionally, BUSHI, as part of BAM's various share-based compensation arrangements, has issued class A preferred shares to BN.

The shares rank junior to the Class B senior preferred and Tracking Shares and are redeemable at the option of the holder and the issuer at a redemption amount of $ 25 per share plus accrued and unpaid dividends and are non-voting.

Due to the currently exercisable holder redemption option, these shares are presented as part of preferred shares redeemable non-controlling interest within the Company’s consolidated balance sheets, outside of permanent equity and are measured at their redemption amount plus any dividends declared and unpaid at each reporting period.

The Company recognizes any change in the carrying amount of its preferred shares redeemable non-controlling interest in net loss (income) attributable to preferred shares redeemable non-controlling interest in its consolidated statements of operations.

Distributions on the preferred shares redeemable non-controlling interest are made periodically as carried interest is realized.

Distributions are not deferred until a redemption event occurs.

These distributions are presented within distributions in Note 13 “redeemable non-controlling interest”.

Non-Controlling Interest

Upon completion of the 2022 Arrangement, the Company issued various classes of equity interests of the Company’s subsidiaries to BN which have rights to priority distributions.

Net income (loss) and other comprehensive income, if applicable, generated by the respective subsidiaries is allocated to non-controlling interest in consolidated entities based on the substantive contractual terms of the subsidiaries’ governing agreements that specify the allocation of income or loss.

The Company has various outstanding classes of equity interests, issued by the Company’s subsidiaries and held by BN, which have rights to priority distributions.

Net loss (income) and other comprehensive loss (income), if applicable, generated by the respective subsidiaries is allocated to non-controlling interest in consolidated entities and consolidated funds based on the substantive contractual terms of the subsidiaries’ governing agreements that specify the allocation of income or loss.

Non-controlling interest includes BN's entitlement, pursuant to the Relationship Agreement, to 33.3 % of all carried interest generated on new funds prior to any carried interest compensation costs.

Revenue Recognition

Revenue is measured based on the amount the Company expects to be entitled to under the contract with the customer and excludes amounts collected on behalf of third parties.

A performance obligation is a promise in a contract to transfer a distinct good or service (or a bundle of goods and services) to the customer and is the unit of account in ASC 606.

A performance obligation is a promise in a contract to transfer a distinct good or service (or a bundle of goods and services) to the customer and is the unit of account in ASC 606 Revenue from Contracts with Customers (“ASC 606”).

In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved.

1 unchanged sentence

The Company recognizes revenue when it transfers control of a product or service to a customer.

Revenues primarily consist of management and advisory fees, incentive fees (including incentive distributions and performance fees).

Management and advisory fees — Management and advisory fees are comprised of base management fees and transaction, advisory and other fees and are accounted for as contracts with customers.

The Company earns base management fees from its customers at a fixed percentage of a calculation base which is typically committed capital or invested capital or net asset value.

Revenues primarily consist of base management and advisory fees and incentive fees (including incentive distributions and performance fees).

Base management and advisory fees — Base management and advisory fees are comprised of base management fees and transaction, advisory and other fees and are accounted for as contracts with customers.

The Company earns base management fees from its customers at a fixed percentage of a calculation base which is typically committed capital, invested capital or net asset value.

The Company identifies its customers on a fund-by-fund basis in accordance with the terms and circumstances of the individual fund.

2 unchanged sentences

Management fees are a form of variable consideration because the fees that the Company is entitled to vary based on fluctuations in the basis for the management fee.

The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid.

The amount recorded as revenue is generally determined at the end of the reporting period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid.

Transaction, advisory and other fees are principally fees charged to the investors of funds indirectly through the managed funds and portfolio companies.

These fees are based on a fixed percentage of enterprise value or equity value of pooled capital raised and are earned which generally coincides with when the capital is called.

These fees are not tied to performance or ongoing investment management services, are not subject to clawback and are recorded in the period in which the related transaction closes.

Accrued but unpaid management and advisory fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts receivable and other, net or Due from affiliates in the Consolidated and Combined Balance Sheets.

These fees are based on a fixed percentage of enterprise value or equity value of pooled capital raised and are earned generally when the capital is called.

These fees are not tied to performance or ongoing investment management services, are not subject to clawback and are recorded in the reporting period in which the related transaction closes.

Accrued but unpaid base management and advisory fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts receivable and other, net or Due from affiliates in the consolidated balance sheets.

Incentive fees — Incentive fees include incentive distributions and performance fees and are accounted for as contracts with customers.

Incentive distributions are incentive payments to reward the Company for meeting or exceeding certain performance thresholds of managed entities.

They are comprised of incentive distributions and performance fees.

Incentive distributions paid to us by our permanent capital vehicles are determined by contractual arrangements and represent a portion of distributions paid by the permanent capital vehicles above a predetermined hurdle.

They are accrued as revenue on the respective affiliates’ distribution record dates only if the predetermined hurdle has been achieved.

They are not subject to clawback.

Performance fees are generated when the unit value of a perpetual affiliate or a limited-life fund exceeds a prescribed high-water mark and are accrued on a quarterly or annual basis.

These fees are not subject to clawback.

Incentive fees are incentive payments to reward the Company for meeting or exceeding certain performance thresholds of managed entities.

This includes BBU performance fees that are earned above a high watermark.

Incentive distributions paid to us by our permanent capital vehicles BIP and BEP are determined by contractual arrangements and represent a portion of distributions paid above a predetermined hurdle.

These amounts are accrued as revenue on the respective affiliates’ distribution record dates only if the predetermined hurdle has been achieved.

Incentive distributions and performance fees are not subject to clawback.

Incentive distributions and performance fees will not be recognized until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved.

Accrued but unpaid incentive distributions and performance fees are recorded within Due from affiliates in the Consolidated and Combined B alance Sheets as of the reporting date.

Accrued but unpaid incentive distributions and performance fees are recorded within Due from affiliates in the consolidated balance sheets as of the reporting date.

Investment income (loss) — Investment income (loss) represents the unrealized and realized gains and losses on carried interest and movements in the fair value of the Company's principal investments and is accounted for outside of ASC 606 .

3 unchanged sentences

As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as accrued carried interest to reflect either (a) positive performance resulting in an increase in the accrued carried interest to the general partner or (b) negative performance that would cause the amount due to the Company to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the accrued carried interest to the general partner.

These adjustments are recorded in the Consolidated and Combined Statements of Operations as unrealized carried interest allocations in Investment income.

These adjustments are recorded in the consolidated statements of operations as unrealized carried interest allocations in Investment income.

In each scenario, it is necessary to calculate the accrued carried interest on cumulative results compared to the accrued carried interest recorded to date and make the required positive or negative adjustments.

1 unchanged sentence

The Company is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative carried interest over the life of a fund.

Accrued carried interest as of the reporting date is reflected in Investments on the Consolidated and Combined Balance Sheets.

Accrued carried interest as of the reporting date is reflected in Investments on the consolidated balance sheets.

Carried interest is realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met.

1 unchanged sentence

The accrual for potential repayment of previously received carried interest would represent amounts previously paid to the Company that would need to be repaid if these funds accruing carry were to be liquidated based on the fair value of their underlying investments.

This amount is estimated to be $nil for all periods presented and as a result no clawback provision has been recognized in these Consolidated and Combined Financial Statements.

This amount is estimated to be $nil for all periods presented and as a result no clawback provision has been recognized in the consolidated financial statements.

Fair value gains (losses) on principal investments include the unrealized and realized gains and losses on the Company’s principal investments, including its investments in the funds that are not consolidated and receive pro-rata allocations and other principal investments.

Income (loss) on principal investments is realized when the Company redeems all or a portion of its investment or when the Company receives cash income, such as dividends or distributions.

Unrealized income (loss) on principal investments results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized.

Gain (loss) on principal investments is realized when the Company redeems all or a portion of its investment or when the Company receives cash income, such as dividends or distributions.

Unrealized gain (loss) on principal investments results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized.

Interest and dividend revenue — Interest and dividend revenue comprise primarily of interest and dividend income earned on principal investments not accounted for under the equity method held by the Company.

Other revenues

Other revenues arises from the AMSA between BAM and the Company and the Relationship Agreement between BAM, the Company, and BN.

Under the AMSA, BAM provides the services of its employees on a cost recovery basis.

Expenses incurred under the AMSA relating to these services is recognized as Other Revenues in the Consolidated and Combined Statements of Operations on a gross basis as and when the services are performed by BAM.

Other revenues arises from the Relationship Agreement between BAM and BN.

Under the Relationship Agreement, certain employee share-based and performance-based compensation costs are recovered from BN.

Income generated under the Relationship Agreement relating to these instruments is recognized as Other Revenues in the Consolidated and Combined Statements of Operations on a gross basis as the instruments vest.

Certain liability classified share-based awards covered by the AMSA and Relationship Agreement are required to be revalued at each balance sheet date.

As a result, where the revaluation results in an increase in the share-based award liability, BN and the Company will reimburse BAM while conversely, where the revaluation results in a decrease in the share-based award liability, BAM will be responsible for reimbursing the difference to BN or the Company.

Other revenues includes certain performance fees which are accounted for as contracts with customers.

Income generated under the Relationship Agreement relating to these instruments is recognized as other revenues in the consolidated statements of operations on a gross basis as the instruments vest or are incurred.

Certain liability classified share-based awards covered by the Relationship Agreement are required to be revalued at each balance sheet date.

As a result, where the revaluation results in an increase in the share-based award liability, BN will reimburse BAM while conversely, where the revaluation results in a decrease in the share-based award liability, BAM will be responsible for reimbursing the difference to BN.

Other revenues also includes certain performance fees which are accounted for as contracts with customers.

Amounts are accrued on a quarterly or annual basis and are not recognized until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved.

15 unchanged sentences

Level II Valuation Techniques

Financial instruments classified within Level II of the fair value hierarchy are comprised of certain equity securities.

Financial instruments classified within Level II of the fair value hierarchy are comprised of certain equity securities and derivatives.

The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows:

• Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services.

• Equity securities and derivatives are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services.

In determining the value of a particular investment, the Company may use certain information with respect to quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments.

4 unchanged sentences

management’s determination of fair value is then based on the best information available in the circumstances and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks.

The Company uses both the discounted cash flow method or the direct capitalization method to value the investments held in consolidated funds.

The Company uses the discounted cash flow method or the direct capitalization method to value the investments held in consolidated funds.

Valuations may be derived by referencing observable valuation measures for comparable assets and recent market transactions, adjusted for asset specific factors.

Where a discounted cash flow method is used, a terminal value is derived by referencing to a stabilized exit EBITDA and a capitalization rate.

Where a discounted cash flow method is used, a terminal value is derived by referencing to a stabilized exit earnings before interest, taxes, depreciation and amortization and a capitalization rate.

Net Asset Value

Investment funds are typically measured using Net Asset Value ( “ NAV ” ) as a practical expedient in determining fair value and are not classified in the fair value hierarchy.

Investment funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy.

The carrying value reflects a pro rata ownership percentage as indicated by NAV in the investment fund financial statements, which may be adjusted if it is determined NAV is not calculated consistent with investment company fair value principles.

The underlying investments of the investment funds may have significant unobservable inputs, which may include but are not limited to, comparable multiples and WACC rates applied in valuation models or a discounted cash flow model.

Derivative financial instruments under ASC 815, Derivative and Hedging are recognized on the Consolidated and Combined Balance Sheets at fair value with changes in fair value recognized in earnings.

Purchased or written options on equity interests of several of our equity method investments that do not meet the definition of a derivative are recognized on the Consolidated and Combined Balance Sheets on a gross basis as Financial Assets or Financial Liabilities, respectively.

These financial instruments are measured at fair value with changes in fair value recognized in Other (expenses) income, net.

Investments include (i) investments held by funds which the Company controls and consolidates and (ii) the Company’s ownership interests (typically general partner interests) in nonconsolidated funds which are accounted for as equity method investments.

The underlying investments of the investment funds may have significant unobservable inputs, which may include but are not limited to, comparable multiples and weighted average cost of capital (“WACC”) rates applied in valuation models or a discounted cash flow model.

Financial Assets and Financial Liabilities

In the normal course of business, the Company is exposed to certain risks relating to their ongoing operations and uses various types of derivative instruments primarily to mitigate against interest rate and foreign exchange risk.

These generally include foreign currency forward contracts and interest rate swaps.

The derivative instruments are not designated as hedging instruments under ASC 815 , Derivative and Hedging (“ASC 815”).

Derivative instruments under ASC 815 are recognized on a gross basis as either financial assets or financial liabilities in the consolidated balance sheets at fair value with changes in fair value recognized in net income.

Derivative instruments are marked-to-market at the end of each reporting period based upon quotations from pricing services or by the Company and the change in value, if any, is recorded as an unrealized gain (loss).

Upon settlement of the instrument, the Company records any realized gain (loss).

Unrealized gains (losses) and realized gains (losses) are reflected within other expenses, net within the consolidated statements of operations.

Purchased or written options on equity interests of several of our equity method investments that do not meet the definition of a derivative are recognized on the consolidated balance sheets on a gross basis as financial assets or financial liabilities, respectively.

These financial instruments are measured at fair value with changes in fair value recognized in Other expenses, net within the consolidated statements of operations.

Investments include (i) investments held by funds which the Company controls and consolidates and (ii) the Company’s ownership interests (typically general partner interests) in nonconsolidated funds and other asset management businesses which are accounted for as equity method investments.

(i) Investments at fair value under Consolidated Funds

4 unchanged sentences

Therefore, its investments in such Brookfield funds, which include both a proportionate and disproportionate allocation of the profits and losses, are accounted for under the equity method.

The Company also has investments in equity interests of other asset management businesses that provide it with significant influence and therefore accounts for such investments using the equity method for its proportionate share of the investees' comprehensive income or losses.

When the Company acquires an additional interest in an existing equity method investment, resulting in a step-up in basis, the difference between the purchase price and the Company's proportionate share of the book value of the investee’s net assets is identified and allocated to the fair value of the identifiable assets and liabilities of the investee at the acquisition date.

1 unchanged sentence

The basis difference is generally amortized over the remaining useful lives of the intangible assets, while any amount allocated to goodwill is not amortized but is tested for impairment annually.

The amortization of the basis difference affects the Company’s share of the investee’s net income or loss and is included in the “Share of Income from Equity Method Investments” line item in the Consolidated and Combined Statements of Operations.

The amortization periods for the intangible assets to which the basis difference is allocated are consistent with the estimated useful lives of those assets.

The Company 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.

In cases where the Company’s equity method investments provide for a disproportionate allocation of the profits and losses, the Company’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the

hypothetical liquidation at book value (“HLBV”) method.

Under the HLBV method, at the end of each reporting period the Company calculates the accrued carried interest that would be due to the Company pursuant to 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.

In cases where the Company’s equity method investments provide for a disproportionate allocation of the profits and losses, the Company’s share of income (losses) from equity method investments is determined using a balance sheet approach referred to as the HLBV method.

Under the HLBV method, at the end of each reporting period the Company calculates the accrued carried interest that

would be due to the Company pursuant to 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.

As the fair value of the underlying investments varies between reporting periods, it is necessary to make adjustments to the amounts recorded as carried interest to reflect either a positive performance resulting in an increase in the carried interest allocated to the general partner or a negative performance that would cause the amount due to the Company to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner.

In each case, such accrued carried interest will be recognized in the Consolidated and Combined Statements of Operations.

In each case, such accrued carried interest will be recognized in the consolidated statements of operations.

The Company has elected to account for certain equity method investments such as equity securities through the election of the fair value option under ASC 825, Financial Instruments .

These are investments in limited partnerships that represent more than a minor interest in the investees where the Company does not have the practical ability to exert significant influence.

Refer to Note 3 for details in relation to equity method investments.

Refer to Note 4 for further details in relation to equity method investments.

Cash and Cash Equivalents

Cash and cash equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less.

Interest income from cash and cash equivalents is recorded in Interest and dividend revenue in the Consolidated and Combined S tatements of Operations.

Interest income from cash and cash equivalents is recorded in interest and dividend revenue in the consolidated statements of operations.

Intangibles and Goodwill

Identifiable finite-lived intangible assets are amortized on a straight-lin e basis over their estimated useful lives, ranging from three to twenty years, reflecting the contractual lives of such assets.

Amortization expense is included within General and administrative in the Consolidated and Combined Statements of Operations.

Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from eight to fifteen years, reflecting the contractual lives of such assets.

Amortization expense is included within general, administrative and other in the consolidated statements of operations.

Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable.

1 unchanged sentence

The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of the Company’s operating segments is less than their respective carrying values.

The operating segments are considered the reporting units for testing the impairment of goodwill.

If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, an impairment loss is recognized to the extent by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

In most circumstances, the operating segments are considered the reporting units for purposes of goodwill impairment testing;

however, in certain cases, reporting units may be identified at a lower level when an underlying strategy is determined to not have similar economic characteristics.

If it is determined that it is more likely than not that a reporting unit's fair value is less than its carrying value or when the quantitative approach is used, an impairment loss is recognized to the extent by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Property, Plant and Equipment, net

1 unchanged sentence

Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease term or the life of the asset, generally ten to fifteen years , and three to seven years for other fixed assets.

Depreciation and amortization expense are recorded within general, administrative and other in the consolidated statements of operations.

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Accounts Receivable, net

Accounts receivable, net includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties.

Accounts receivable, net includes management fees receivable from limited partners, receivables from underlying funds, placement and advisory fees receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties.

Accounts receivable, net are assessed for credit loss at each reporting date.

Amounts determined to be uncollectible are charged directly to General and administrative expenses in the C onsolidated and Combined Statements of Operations.

Amounts determined to be uncollectible are charged directly to general, administrative and other in the consolidated statements of operations.

Foreign Currency

2 unchanged sentences

Dollar functional currency.

Each of the Company’s subsidiaries and associates determines its own functional currency and items of each subsidiary and associate included in the C onsolidated and Combined financial statements are measured using that functional currency.

Each of the Company’s subsidiaries and associates determines its own functional currency and items of each subsidiary included in the consolidated financial statements are measured using that functional currency.

Assets and liabilities of foreign operations having a functional currency other than the U.S.

1 unchanged sentence

Gains or losses on translation are accumulated as a component of equity.

On the disposal of a foreign operation, or the loss of control, joint control or significant influence, the component of Accumulated other comprehensive income relating to that foreign operation is reclassified to Net income in the Consolidated and Combined Statements of Operations.

On the disposal of a foreign operation, or the loss of control, joint control or significant influence, the component of accumulated other comprehensive income relating to that foreign operation is reclassified to net income in the

consolidated statements of operations.

Gains or losses on foreign currency denominated balances and transactions that are designated as hedges of net investments in these operations are reported in the same manner.

1 unchanged sentence

Revenues and expenses are measured at average rates during the year.

Gains or losses on translation of these items are included in earnings.

Gains or losses on translation of these items are included in net income.

Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date.

Compensation, benefits and fund operating expenses — Compensation and carried interest compensation

Compensation, benefits and carried interest compensation

Compensation — Compensation consists of (a) salary and bonus, and benefits paid and payable to employees, and (b) share-based compensation associated with the grants of share-based awards to employees.

1 unchanged sentence

These awards are measured at fair value at the grant date and expensed over the vesting period, except in the case of share-based awards that do not require future service, which are expensed immediately.

Cash settled share-based awards and awards settled in a variable n umber of shares for a fixed monetary amount are classified as liabilities and are remeasured at the end of each reporting period.

Cash settled share-based awards and awards settled in a variable number of shares for a fixed monetary amount are classified as liabilities and are remeasured at the end of each reporting period.

The Company accounts for forfeitures as they occur.

Prior to the completion of the 2022 Arrangement, share-based compensation expense was allocated to the Company based on the awards and terms previously granted to its employees under BN's share-based compensation plans.

The value of these long term incentive plans changed as a result of the spin-off of the asset management business.

In order to make award participants whole following the 2022 Arrangement, BN and BAM modified the strike price of the historical awards and issued additional BAM awards such that participants would receive the same economic outcome immediately before and after the spin-off.

As part of the execution of the 2022 Arrangement, certain employees are now employed by the Company and any unvested amounts cease to be recognized by the non-employing entity.

The Company assessed the fair value of the modified instruments immediately before and after the spin-off date to determine if there was any change in value and will account for the impact of the modification and recognizes any relevant incremental fair value generated at the time of the spin-off prospectively.

In addition, BAM may issue options and other long-term incentive awards to employees of the Company, and the Company may reimburse BAM for the costs associated with these awards.

Compensation costs associated with these instruments are recorded on a gross basis in the Statements of Operations as the instruments vest.

Refer to Note 12 for further details of the Company's share-based compensation.

Carried Interest Compensation — Unrealized and realized carried interest is performance-based compensation associated with realized or unrealized carried interest based on performance of investments on a fund-by-fund basis.

Such compensation expense is subject t o both positive and negative adjustments.

Other (expenses) income, net

Other (expenses) income, net in the Consolidated and Combined Statements of Operations includes net unrealized gains (losses) resulting from changes in the fair value of the Compan y’s investments in common shares, financial instruments associated with options to acquire additional interests in various investments, and investments in its sponsored funds.

The Company is an unlimited liability company organized under the provincial laws of British Columbia and is subject to Canadian federal and provincial income taxes.

Prior to the 2022 Arrangement, the Company's domestic and foreign operating results were included in the income tax returns of BN.

The Company accounted for income taxes under the separate return method.

Under this approach, the Company determined its deferred tax assets and liabilities and related tax expenses as if it were filing separate tax returns.

Carried Interest Compensation — Unrealized and realized carried interest compensation is performance-based compensation based on performance of investments on a fund-by-fund basis.

Such compensation expense is subject to both positive and negative adjustments.

For certain carried interest compensation costs recognized in accordance with ASC 710 Compensation - General , BAM is not entitled to the associated carried interest income.

Substantially all of these costs are recoverable from BN, with the recoveries being presented in other revenues in the consolidated statement of operations.

As the expense is recorded as carried interest compensation costs and the recovery is recorded as other revenues, we note the movement in carried interest compensation costs and carried interest revenues on a gross basis may not have a direct correlation.

Other expenses, net

Other expenses, net — Other expenses, net includes net unrealized gains (losses) resulting from changes in the fair value of the Company’s investments in common shares, financial instruments associated with options to acquire additional interests in various investments, and investments in its sponsored funds, as well as non-asset management related expenses.

Other income, net of consolidated funds — Other income, net of consolidated funds include net unrealized gains (losses) resulting from changes in the fair value of the Company's underlying investments and other financial instruments in its consolidated funds.

Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

The provision for income taxes is determined using the asset and liability approach of accounting for income taxes.

Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid.

Income taxes as presented attribute deferred income taxes of the Company's standalone Consolidated and Combined Financial Statements in a manner that is systematic, rational, and consistent with the asset and liability method.

Income taxes as presented attribute deferred income taxes of the Company's standalone consolidated financial statements in a manner that is systematic, rational, and consistent with the asset and liability method.

The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year.

2 unchanged sentences

The Company analyzes its tax filing positions in all jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions.

Tax benefits associated with actual or expected income tax positions are recognized when the “more

likely than not” recognition threshold is met.

Tax benefits associated with actual or expected income tax positions are recognized when the “more likely than not” recognition threshold is met.

The tax benefits are measured at the largest amount of benefit that is greater than 50% likely to be realized upon settlement with the related tax authority.

The Company recognizes accrued interest and penalties related to uncertain tax positions within the provision for income taxes in the Consolidated and Combined Statements of Operations.

The Company recognizes accrued interest and penalties related to uncertain tax positions within the provision for income taxes in the consolidated statements of operations.

Related parties

In the normal course of operations, the Company enters into various transactions on market terms with related parties, including amounts in Due from/to affiliates.

The Company and its subsidiaries may also transact with entities that share a common parent.

Amounts owed to and by associates and joint ventures are not eliminated on consolidation.

The Company has certain loans and receivables within Due from Affiliates which are long-term in nature.

These receivables are initially recognized at fair value and subsequently measured at their amortized cost bases with interest recognized using the interest method.

In addition to the Relationship Agreement and AMSA, BN, BAM and the Company have entered into the TSA pursuant to which (i) the Company agrees to provide BN and BAM, on a transitional basis, certain services to support day-to-day corporate activities (including services related to finance, treasury, accounting, legal and regulatory, marketing, communications, human resources, internal audit, information technology) and (ii) BN provides, on a transitional basis, certain services to BAM and the Company to facilitate the orderly transition of the asset management business (the services, collectively, being “Transitional Services”).

The Transitional Services are provided, at cost, for a period of three years from December 9, 2022, unless extended by mutual agreement.

T he Company also provides to BN, as required from time to time and on a cost recovery basis, services of its investment personnel to assist in acquisitions or other transactions undertaken by BN.

In the normal course of business, BAM issues its share-based compensation awards to the Company’s employees.

The Company accounts for such transactions in accordance with ASC 323 Equity Method Investments and Joint Ventures , and recognizes the entire cost of the awards, as they vest, as compensation expense and a corresponding increase in additional paid-in capital.

As the Company reimburses BAM for the cost of these awards, the reimbursement is recognized as a decrease in additional paid-in capital.

As such, this arrangement with BAM has a net impact on the Company’s Consolidated and Combined Financial Statements as if the Company had paid for the employee compensation in cash.

To the extent that the Company reimburses BAM before the associated awards vest, the Company recognizes the prepayment in Due from Affiliates.

In the normal course of operations, the Company enters into various transactions on market terms with related parties with amounts being recorded in due from/to affiliates.

In accordance with ASC 850 Related Party Disclosures , BAM considers the nature of the relationship in assessing whether the related party meets the definition of an affiliate.

Any entity that shares a common parent with

BAM is considered an affiliate.

This primarily includes BN, certain new and mature funds and perpetual affiliates.

All other entities where either BAM or BN can exercise significant influence are considered related parties.

This primarily includes BAM's or BN's equity method investees such as Oaktree, Castlelake, and BWS.

Amounts owed to and by equity method investments and joint ventures are not eliminated on consolidation.

The Company has certain loans receivable and payable within due from/to affiliates which are long-term in nature.

These receivables and payables are initially recognized at fair value and subsequently measured at their amortized cost bases with interest recognized using the effective interest method.

In addition to the Relationship Agreement, BN, BAM and the Asset Management Company have entered into a services agreement (the “Services Agreement”), which replaced the Transition Services Agreement upon its expiration.

Pursuant to the Services Agreement (i) the parties agree to provide certain services to support day-to-day corporate activities (including services relating to finance, treasury, accounting, legal and regulatory, marketing, communications, human resource, internal audit and information technology) and (ii) upon the request of BN, making the services of BAM investment personnel available for purposes of assisting on acquisitions, investments and other transactions (collectively, the “Services”).

The Services are provided, at cost, and shall continue until terminated by written agreement by each of BN, BAM and the Asset Management Company.

See Note 20 for further detail on related party transactions.

Dividends are reflected in the Consolidated and Combined Financial Statements when declared.

Dividends are reflected in the consolidated financial statements when declared.

Earnings per Share

The Company calculates earnings per share in accordance with ASC 260 Earnings Per Share .

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period.

Diluted net income per share reflects the impact of dilutive instruments, which are generally determined using the treasury stock method.

Segment Reporting

The Company conducts its business through five operating segments, all of which are reportable segments:

infrastructure, renewable power and transition, private equity, real estate and credit.

Each operating segment represents a strategic business unit with specialized investment strategies, and are defined based on the nature of assets managed within each operating segment.

In accordance with ASC 280, Segment Reporting , we identify operating segments based on the internal reports reviewed by our Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”).

The CODM evaluates each segment's performance and allocates resources based on our key measure referred to as “Segment Earnings”.

See Note 22 for further discussion on segments.

Recent accounting pronouncements

1 unchanged sentence

ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosure, which requires disclosure of disaggregated information about a reporting entity's effective tax rate reconciliation, using both percentages and reporting currency amounts for specific standardized categories, as well as disclosure of income taxes paid disaggregated by jurisdiction.

The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The Company adopted this guidance prospectively effective for the fiscal year ended December 31, 2025.

Refer to Note 10 for the respective disclosures.

The adoption has not had a material impact on the Company's consolidated financial statements.

On March 21, 2024, the FASB issued ASU 2024-01, which clarifies how an entity determines whether a profits interest or similar award is within the scope of ASC 718 or not a share-based payment arrangement and therefore within the scope of other guidance.

The Company adopted this guidance effective for the fiscal year ended December 31, 2025.

The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, which requires public business entities to disclose specific information about existing costs and expenses in the notes to its financial statements.

This ASU is intended to provide users with useful information about expenses critical to understanding an entity's performance.

This standard requires that a public business entity disclose key expenses including, but not limited to, employee compensation, depreciation and amortization, and associated qualitative disclosures

about the nature of expenses.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027.

The Company is currently assessing the impact of this update.

The Company is currently assessing the impact of this update, but is not expected to have a material impact.

2025 ARRANGEMENT

On February 4, 2025, BAM and BN completed a transaction by way of a plan of arrangement whereby BN and certain of its subsidiaries exchanged all of their common shares in the Asset Management Company for newly-issued Class A Shares of BAM on a one-for-one basis.

As a result of the 2025 Arrangement, BAM issued approximately 1,194 million Class A Shares to BN for approximately 1,194 million outstanding common shares of the Asset Management Company.

Immediately following the completion of the 2025 Arrangement, (i) BAM held, directly and indirectly, 100 % of the outstanding common shares of the Asset Management Company, (ii) BN held approximately 73 % of the Class A Shares of BAM, and (iii) the shareholders of BAM prior to effecting the 2025 Arrangement held the remaining approximately 27 % of the Class A Shares of BAM.

As a result, the effective economic ownership interest in the Asset Management Company of BAM’s shareholders prior to effecting the 2025 Arrangement and BN has not been substantially impacted by the 2025 Arrangement.

The acquisition of substantially all of the common shares of the Asset Management Company by BAM has been accounted for as a reverse asset acquisition on the basis that the Asset Management Company, the accounting acquirer, has issued shares to acquire the net assets of BAM and substantially all of BAM’s net assets represent an interest in the Asset Management Company.

The Asset Management Company is therefore the predecessor of BAM whereby BAM continues to be the registrant and its consolidated financial statements, including historical results (other than legal share capital), are that of the Asset Management Company.

Accordingly, as a result of the 2025 Arrangement, the following adjustments have been reflected in the financial results of BAM:

• the acquisition of BAM’s net assets and the effective settlement of any pre-existing relationships between the Asset Management Company and BAM;

• the allocation of the transaction price among the acquired net assets of BAM.

The following table outlines the above:

(In $ millions, unless otherwise noted)

Share consideration effectively transferred:

Post-Arrangement number of shares held by previous shareholders of BAM (millions) 439.8

Price of Class A Shares ($ per share) (a)

Transaction costs 5

BAM’s investment and other relationships in the Asset Management Company (b) (c)

Total purchase consideration $ 33

Fair value of net assets acquired:

Due from affiliates 793

Intangible assets (d)

Accounts payable and other ( 883 )

Due to affiliates ( 10 )

Deferred income tax liabilities (d)

Non-controlling interest ( 31 )

a) Consideration effectively transferred

As part of the 2025 Arrangement, BN and certain of its subsidiaries transferred approximately 1,194 million common shares with a fair value of approximately $ 68 billion to BAM in exchange for approximately 1,194 million Class A Shares with a fair value of approximately $ 68 billion on a one-for-one basis.

Consideration effectively transferred by the Asset Management Company has been computed as the market price of the Class A Shares on the closing date multiplied by the number of Class A Shares owned by BAM’s shareholders prior to the 2025 Arrangement.

b) BAM’s interest in the Asset Management Company

Prior to the 2025 Arrangement, BAM held an approximate 27 % interest in the Asset Management Company.

The fair value of this investment has been determined based on the fair value of the Class A Shares outstanding as of February 4, 2025.

As part of the 2025 Arrangement, the Asset Management Company acquired BAM’s net assets from an accounting perspective and as a result its re-acquisition of its own shares are eliminated upon effecting the 2025 Arrangement.

c) Other relationships between the Asset Management Company and BAM

Prior to the 2025 Arrangement, BAM and the Asset Management Company had entered into various transactions which led to balances between the parties.

As part of the 2025 Arrangement these balances were effectively settled and have been excluded from both purchase consideration and net assets acquired.

d) Intangible assets

In assessing the fair value of the assets and liabilities acquired in the 2025 Arrangement, an intangible asset associated with the assembled workforce of BAM has been identified.

The fair value has been assessed as $ 215 million, inclusive of $ 57 million of deferred tax amounts associated with its recognition.

AS AT DECEMBER 31,

6 unchanged sentences

Equity interest in Castlelake 720 538

Equity interest in Primary Wave 261 147

Equity interest in Angel Oak 133 —

Equity interest in other affiliates 1,053 676

2 unchanged sentences

As at December 31, 2025, common and preferred shares were $ 337 million (2024 – $ 400 million).

Common shares primarily represents investments of $64 million in Brookfield Renewable Energy L.P.

(2023 – $64 million) and $25 million in Brookfield Infrastructure Income Fund Inc.

Preferred shares represent investments made by the Company which, as of December 31, 2024, are $249 million of preferred shares in GEMS Education and $50 million preferred shares of Cherry Coatings.

Common and preferred share investments are carried at fair value with changes in fair value recorded in the Consolidated and Combined Statements of Operations.

As at December 31, 2024, Investments in affiliates are primarily comprised of an interest in BSREP III of $1.0 billion (2023 – $1.1 billion) which is accounted for as an equity investment measured at its NAV in accordance with ASC 321, Investments – Equity Securities .

Common shares primarily represents investments of $ 64 million (2024 – $ 64 million) in Brookfield Renewable Energy L.P.

and $ 27 million (2024 – $ 25 million) in Brookfield Infrastructure Income Fund Inc.

Preferred shares represent investments of $ 188 million (2024 – $ 249 million) in GEMS Education and $ 58 million (2024 – $ 50 million) in Cherry Painting Company, Inc.

Common and preferred share investments are carried at fair value with changes in fair value recorded in other expenses, net in the consolidated statements of operations.

As at December 31, 2025, investments in affiliates are primarily comprised of an interest in BSREP III, a fund which BAM manages, of $ 700 million (2024 – $ 1.0 billion) which is accounted for as an equity investment measured at its NAV in accordance with ASC 321, Investments – Equity Securities.

The change in fair value of the Company’s interest in BSREP III was $ 161 million for the year ended December 31, 2025 (2024 - $ 82 million) and is recorded within other expenses, net in the consolidated statements of operations.

Accrued carried interest represents the disproportionate allocation of capital from our private funds to the extent that such interest is provided for in the relevant fund agreements.

2 unchanged sentences

Such attribution is achieved via Tracking Shares and non-controlling interests in certain subsidiaries that are entitled to such carried interest.

The change in the Company’s accrued carried interest for mature funds for the years ended December 31, 2024, 2023, and 2022 is as follows:

The change in BAM’s accrued carried interest for mature funds during the years ended December 31, 2025, 2024 and 2023 is as follows:

FOR THE YEARS ENDED DECEMBER 31,

4 unchanged sentences

Balance, ending $ 197 $ 931 $ 1,394

The change in the Company’s accrued carried interest for new funds during the years ended December 31, 2024, 2023 and 2022 is as follows:

All mature carried interest is due to BN therefore BAM's net amount of mature carried interest retained is $nil.

The change in BAM’s accrued carried interest for new funds during the years ended December 31, 2025, 2024 and 2023 is as follows:

FOR THE YEARS ENDED DECEMBER 31,

3 unchanged sentences

Balance, ending $ 1,636 $ 693 $ 305

New fund carried interest is partially due to BN, who is entitled to 33.3 %.

After allocating this interest to BN, BAM's net interest in new fund unrealized carried interest is $ 1.1 billion.

The Company has significant influence, but not control, over the operating and financial policies of its equity method investees by virtue of having the ability to appoint members of these investees' governing bodies.

The Company’s equity method investments include:

An approximate 73% economic interest in Oaktree of $4.6 billion (2023 – $4.2 billion);

An economic interest in Castlelake of $538 million;

A 49.9% economic interest in LCM Partner Group of $186 million (2023 – $189 million);

A 35% economic interest in Primary Wave of $147 million (2023 – $110 million);

An approximate 11% economic interest in Pretium of $351 million for which the Asset Management Company has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in net income.

For the year ended December 31, 2024, a gain (loss) of nil has been recognized on the value of the investment;

A number of general partner interests in our private funds;

and other various equity method investments.

The Company recognized its share of earnings from all of its equity method investments of $ 402 million (2024 – $ 339 million;

2023 - $ 167 million) for the year ended December 31, 2025 within the share of income from equity method investments in its consolidated statements of operations.

The Company’s equity method investments include our:

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

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

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

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

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

approximate 11 % economic interest in Pretium of $ 330 million (2024 – $ 351 million) for which BAM has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in net income.

For the year ended December 31, 2025, a decrease of $ 21 million has been recognized on the value of the investment.

For the year ended December 31, 2025 an increase of $ 8 million has been recognized on financial assets held by the Company associated with Pretium, which partially offset the change in the value of the investment;

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 ) and;

general partner interests in a number of our private funds.

During the year ended December 31, 2025, the Company increased its investment in Oaktree, resulting in a step-up in the basis of the investment.

The step-up occurred due to the Company’s purchase of additional equity interest, which increased the Company’s ownership percentage from approximately 68% to approximately 73%.

The Company accounted for the step-up in basis by allocating the excess of the purchase price over the proportionate share of the book value of the net assets acquired to the identifiable assets and liabilities, as well as goodwill.

The amortization of the basis difference will be recognized over the respective useful lives of the identified assets and liabilities.

The allocation to goodwill will not be amortized.

During the year ended December 31, 2024, the Company acquired an interest in Castlelake for cash consideration of $489 million.

The interest acquired entitles the Company to a 51% stake in Castlelake’s fee-related earnings, a 7.5% stake in carried interest from Castlelake's managed funds, 20% of returns from GP commitments, and 51% of GP commitments for in-market and future Castlelake funds.

As part of the purchase agreement, the Company may be required to make additional payments as contingent consideration based on Castlelake's fee-related earnings from 2024 to 2026.

The Company has estimated the day one value of this contingent consideration which is included as part of the initial investment.

Additionally, certain put and call options were entered into as part of the arrangement and the underlying value has been separately recognized from the day one value of the equity method investment.

During the year ended December 31, 2024, the Company, along with our partner, Sequoia Heritage, completed the acquisition of SVB Capital for $18 million of which the Company's interest is 50%.

As part of the transaction, the Company acquired 100% of Redwood Evergreen Fund LP for $249 million.

The Company's interest in SVB Capital has been accounted for as an equity method investment and the investment in the fund has been classified as a disposal group held for sale as a sale is expected to be completed during the first half of the 2025 fiscal year.

As of December 31, 2024, Redwood Evergreen Fund LP is measured at fair value less costs to sell at $242 million, and the difference from the acquisition price has been recognized in the Consolidated and Combined Statements of Operations.

The Company recognized in Share of Income from Equity Method Investments in its Consolidated and Combined Statements of Operations its share of earnings (losses) from all of its equity method investments of $339 million (2023 – $167 million;

2022 – $146 million) for the year ended December 31, 2024.

The step-up occurred due to the Company’s purchase of an additional equity interest, which increased the Company’s economic interest in Oaktree from approximately 73 % to approximately 74 %.

The Company paid cash consideration of $ 110 million, of which $ 40 million was provided by BN for its interest in preferred shares redeemable non-controlling interest.

The net purchase price for BAM was $ 70 million.

We continue to account for our interest in Oaktree as an equity method investment.

During the year ended December 31, 2025, the Company increased its investment in Primary Wave resulting in a step-up in the basis of the investment.

The step-up occurred due to the Company’s purchase of an additional equity interest for approximately $ 84 million, which increased the Company’s ownership percentage in Primary Wave from approximately 35 %

to approximately 44 %.

We continue to account for our interest in Primary Wave as an equity method investment as we do not control the business.

During the year ended December 31, 2025, BAM participated in Castlelake's acquisition of Concora for approximately $ 475 million.

As part of this acquisition, the Company contributed cash consideration of $ 116 million directly to Castlelake based on the Company's proportionate ownership.

Additionally, the Company contributed $ 81 million for a direct interest in Concora.

Overall these investments entitle the Company to an indirect and direct ownership interest of approximately 43 %.

The Company’s direct interest in Concora has been accounted for as an equity method investment.

During the year ended December 31, 2025, BAM acquired a 51.3 % economic stake in Angel Oak, a leading asset manager specializing in mortgage and consumer products for total consideration of approximately $ 149 million excluding transaction costs.

The Company's interest in Angel Oak has been accounted for as an equity method investment.

As part of the purchase agreement, the Company may be required to make additional payments as contingent consideration based on Angel Oak's earnings from 2025 to 2027.

The Company has estimated the initial value of this contingent consideration which is included as part of the initial investment.

Additionally, certain call options were entered into as part of the arrangement and the underlying value has been separately recognized from the initial value of the equity method investment.

Pinegrove Fund

During the year ended December 31, 2025, the Company invested $ 172 million in the Pinegrove Fund.

The Company’s investment in the Pinegrove Fund has been accounted for as an equity method investment.

During the year ended December 31, 2025, the Company agreed to sell part of its interest in GEMS Education ($ 54 million) and Spring Education Group ($ 40 million) (collectively the “Seed Assets”) to BPE, a fund that will be managed by the Company.

In exchange for the Seed Assets, the Company received units in BPE with an initial redemption value of approximately $ 94 million, which approximates the fair value of the Seed Assets.

The units in BPE will be accounted for as an equity method investment and the investments previously held in the Seed Assets will be derecognized.

The summarized financial information of all of the Company’s equity method investees, in aggregate, as at December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024 and 2023, is as follows:

11 unchanged sentences

Net income attributable to non-controlling interest 69 20 12

Investments in Consolidated Funds

During the year ended December 31, 2025, BAM disposed of its interest in Redwood Evergreen Fund LP for approximately $ 257 million.

Prior to the disposal, the investment in the fund was classified as a disposal group held for sale measured at fair value less costs to sell.

During the year ended December 31, 2025, BAM recognized a gain of $ 15 million, reported within Other expenses, net within the consolidated statements of operations upon the disposal of this investment.

Investments of Consolidated Funds

The summary of the Company's investments held in consolidated funds as at December 31, 2025 and 2024, is as follows:

AS AT DECEMBER 31,

Fair value as at December 31, % of total investments as at December 31,

Fair value % of total investments

2025 2024 2025 2024

Equity securities, at fair value $ 253 $ 251 50 % 100 %

Debt, at fair value 252 — 50 % — %

Total investments, at fair value $ 505 $ 251 100 % 100 %

As of December 31, 2024 and 2023, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5% of the Company’s total assets.

Net gains (losses) from investment activities in the Consolidated and Combined Statements of Operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments.

Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments.

Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

For the year ended December 31, 2024, there were no gains or losses recognized from investment activities (2023 – nil).

As of December 31, 2025 and 2024, no single issuer or investment, including derivative instruments and underlying portfolio investments of the consolidated funds, had a fair value that exceeded 5% of BAM’s total assets.

During the year ended December 31, 2025, BAM assigned part of its commitment in Brookfield Infrastructure Structured Solutions (“BISS”) to a related party.

As a result of this BAM is no longer the primary beneficiary of BISS and therefore BISS was deconsolidated during the year ended December 31, 2025.

As of December 31, 2025, BAM continues to consolidate BSI II.

The investments in consolidated funds are accounted for at their fair value under ASC 946 Financial Services – Investment Companies.

During the year ended December 31, 2025, the Company, through BSI II, acquired debt and equity interests in Spring Education.

Other income, net of consolidated funds in the consolidated statements of operations, consists primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments.

For the year ended December 31, 2025, there were $ 47 million of gains recognized from investment activities within Other income, net of consolidated funds on the consolidated statements of operations (2024 – $ nil ;

2023 – $ nil ).

VARIABLE INTEREST ENTITIES

9 unchanged sentences

Investments 411 1,083

Investments in consolidated funds 251 —

Investments of consolidated funds 505 251

Other assets — —

Total Assets $ 916 $ 1,334

Non-recourse borrowings in consolidated funds $ 251 $ —

Borrowings of consolidated funds $ 462 $ 251

Other liabilities — —

4 unchanged sentences

however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance income.

The Company's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments, including the Company's capital interest and any unrealized carried interest.

The Company's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments,

including the Company's capital interest and any unrealized carried interest.

For the year ended December 31, 2025 and 2024, the Company did not provide any financial and other support to unconsolidated VIEs other than its obligated commitments.

The assets and liabilities recognized in the Company's Consolidated and Combined Balance Sheets related to its maximum exposure to loss of those VIEs of which the Company is determined not to be the primary beneficiary, the non-consolidated VIEs, are as follows:

The assets and liabilities recognized in the Company's consolidated balance sheets related to its maximum exposure to loss of those VIEs of which the Company is determined not to be the primary beneficiary, the non-consolidated VIEs, are as follows:

AS AT DECEMBER 31,

5 unchanged sentences

FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

Fair value approximates carrying value for the following financial instruments that are not measured at fair value in the Consolidated and Combined Financial Statements:

Cash, Accounts receivable and other, net, Accounts payable and other, net, and Due to affiliates and Due from affiliates.

Fair value approximates carrying value for the following financial instruments that are not measured at fair value in the consolidated financial statements:

cash, accounts receivable and other, net, accounts payable and other, net, due to affiliates and due from affiliates.

Financial Instruments

The following tables summarizes the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as at December 31, 2024 and 2023:

The following tables summarize the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as at December 31, 2025 and 2024:

AS AT DECEMBER 31,

5 unchanged sentences

Equity method investments under fair value option — — 330 — 330

Investments held for sale — — 242 — 242

Total assets at fair value $ 1,181 $ 7 $ 1,050 $ 727 $ 2,965

7 unchanged sentences

Investments in affiliates — — — 1,026 1,026

Equity method investments under fair value option — — 351 — 351

Investments held for sale — — 242 — 242

2 unchanged sentences

Total liabilities at fair value $ — $ — $ 228 $ — $ 228

Financial Instruments of Consolidated Funds

The following tables summarizes the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as at December 31, 2024 and 2023:

AS AT DECEMBER 31,

Level I Level II Level III Total Level I Level II Level III Total

Investments in equity securities $ — $ — $ 251 $ 251 $ — $ — $ — $ —

Total assets at fair value $ — $ — $ 251 $ 251 $ — $ — $ — $ —

Non-recourse borrowings $ 251 $ — $ — $ 251 $ — $ — $ — $ —

Total liabilities at fair value $ 251 $ — $ — $ 251 $ — $ — $ — $ —

Level III Measurements

8 unchanged sentences

Average (a) Impact to Valuation from an Increase in Input

Financial assets (b) $ 231 Option pricing model Volatility 30 - 40% 38 % Higher

Discount rate 5% - 9% 6 % Lower

Financial assets (b) $ 410 Option pricing model Volatility 35 % - 40 %

Discount rate 3 % - 9 %

Common and preferred shares (c) 310 Market approach N/A N/A N/A N/A

Equity method investments under fair value option (d) 330 Market approach N/A N/A N/A N/A

Investments held for sale (e) 242 Market approach N/A N/A N/A N/A

Financial liabilities (f) 228 Option pricing model Volatility 30 - 40% 38 % Higher

Discount rate 5% - 8% 5 % Lower

Financial liabilities (f) 444 Option pricing model Volatility 25 % - 40 %

Discount rate 3 % - 4 %

AS AT DECEMBER 31, 2024

3 unchanged sentences

Average (a) Impact to Valuation from an Increase in Input

Financial assets (b) $ 37 Option pricing model Volatility 40 % 40 % Higher

Discount rate 5% - 9% 6 % Lower

Common and preferred shares (c) 64 Discounted cash flows Discount rate 5% - 9% 6 % Lower

Financial liabilities (f) 122 Option pricing model Volatility 40 % 40 % Higher

Discount rate 8 % 8 % Lower

Financial assets (b) $ 231 Option pricing model Volatility 30 % - 40 %

Discount rate 5 % - 9 %

Common and preferred shares (c) 363 Market approach N/A N/A N/A N/A

Equity method investments under fair value option (d) 351 Market approach N/A N/A N/A N/A

Investments held for sale (e) 242 Market approach N/A N/A N/A N/A

Financial liabilities (f) 228 Option pricing model Volatility 30 % - 40 %

Discount rate 5 % - 8 %

(a) Unobservable inputs were weighted based on the fair value of the investments included in the range.

(b) Financial assets relate to a call option held by the Company to acquire additional shares of Primary Wave from other investors of the investee using a prescribed valuation methodology in exchange for cash, Class A shares of BN or other forms of consideration at the discretion of the Company.

The balance also includes other items such as call options associated with the Company's investment in Castlelake.

The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

(b) Financial assets relate to call options held by the Company to acquire additional shares of Primary Wave, LCM, Angel Oak and Castlelake from other investors of the investee using a prescribed valuation methodology in exchange for cash, Class A Shares of BAM or BN or other forms of consideration at the discretion of the Company.

Financial assets also includes a financial guarantee that ensures a pre-determined return is earned on the 11 % economic interest in Pretium.

The fair value of these instruments are determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

(2024 – $ 64 million).

Preferred shares represent investments made by the Company which, as of December 31, 2024, are $249 million of preferred shares in GEMS Education and $50 million preferred shares of Cherry Coatings.

Common and preferred share investments are carried at fair value with changes in fair value recorded in the Consolidated and Combined Statements of Operations.

(d) Equity method investments under fair value option represents an approximate 11% economic interest in Pretium of $351 million for which the Asset Management Company has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in the Consolidated and Combined Statements of Operations.

(e) The Company acquired 100% of Redwood Evergreen Fund LP for $249 million, which has been classified as a disposal group held for sale as a sale is expected to be completed during the first half of the 2025 fiscal year.

(f) Financial liabilities relate to put options held by other investors of Oaktree and Primary Wave under which the Company may be required to purchase additional shares of these investees using a prescribed valuation methodology in exchange for cash, Class A shares of BN or other forms of consideration at the discretion of the Company.

The balance also includes put options associated with the Company's investment in Castlelake, as well as a financial instrument associated with contingent consideration.

Preferred shares represent $ 188 million of preferred shares in GEMS Education (2024 – $ 249 million) and $ 58 million preferred shares of Cherry Painting Company, Inc.

(2024 – $ 50 million).

Common and preferred share investments are carried at fair value with changes in fair value recorded in the consolidated statements of operations.

(d) Equity method investments under fair value option represents an approximate 11 % economic interest in Pretium of $ 330 million (2024 – $ 351 million) for which BAM has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in the consolidated statements of operations.

(e) On March 27, 2025, the Company disposed of its interest in Redwood Evergreen Fund LP for approximately $ 257 million.

As a result, for the year ended December 31, 2025, BAM recognized a gain of $ 15 million, reported in Other expenses, net within the consolidated statements of operations.

(f) Financial liabilities relate to put options held by other investors of Oaktree, Castlelake, LCM and Primary Wave under which the Company may be required to purchase additional shares of these investees using a prescribed valuation methodology in exchange for cash, Class A Shares of BAM or BN or other forms of consideration at the discretion of the Company.

The balance also includes contingent consideration agreed to as part of the acquisition of certain investments and other financial derivatives.

The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

Level III Measurements of Consolidated Funds

AS AT DECEMBER 31, 2024

Level III Asset/Liability Fair Value Valuation

Techniques Unobservable

Inputs Ranges Weighted

Average (a) Impact to Valuation from an Increase in Input

Investments in equity securities $ 251 Market approach N/A N/A N/A N/A

Level III Changes in Fair Value

During the year ended December 31, 2024, there have been no changes in valuation techniques within Level III that have had a material impact on the valuation of financial instruments.

During the year ended December 31, 2025 and 2024, there have been no changes in valuation techniques within Level III that have had a material impact on the valuation of financial instruments.

The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Company has used Level III inputs to determine fair value.

These tables also exclude financial assets and liabilities measured at fair value on a non-recurring basis.

Total realized and unrealized gains and losses recorded for Level III investments are reported in Other (expenses) income, net in the Consolidated and Combined Statements of Operations.

Total realized and unrealized gains and losses recorded for Level III investments are reported in other expenses, net in the consolidated statements of operations.

AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2025

(MILLIONS) Financial assets Common and preferred shares Equity method investments under fair value option Financial liabilities

Financial assets Common and preferred shares Equity method investments under fair value option Financial liabilities

Balance, beginning $ 231 $ 363 $ 351 $ 228

Fair value changes in net income 132 16 ( 21 ) 142

Purchases 126 532 351 113

Sales — (233) — —

Purchases and other 47 ( 10 ) 40 86

Transfers — ( 59 ) ( 40 ) —

Payments — — — ( 12 )

Balance, ending $ 410 $ 310 $ 330 $ 444

AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024

(MILLIONS) Financial assets Common and preferred shares Financial liabilities

Financial assets Common and preferred shares Equity method investments under fair value option Financial liabilities

Balance, beginning $ 37 $ 64 $ — $ 122

Fair value changes in net income 68 — — ( 7 )

Purchases 126 532 351 113

Sales — ( 233 ) — —

Balance, ending $ 231 $ 363 $ 351 $ 228

Financial Instruments of Consolidated Funds

The following tables summarize the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as at December 31, 2025 and 2024:

AS AT DECEMBER 31,

Level I Level II Level III Total Level I Level II Level III Total

Investments in equity securities $ — $ — $ 253 $ 253 $ — $ — $ 251 $ 251

Investments in debt — — 252 252 — — — —

Total assets at fair value $ — $ — $ 505 $ 505 $ — $ — $ 251 $ 251

Borrowings $ 462 $ — $ — $ 462 $ 251 $ — $ — $ 251

Total liabilities at fair value $ 462 $ — $ — $ 462 $ 251 $ — $ — $ 251

Level III Measurements of Consolidated Funds

AS AT DECEMBER 31, 2025

Level III Asset/Liability Fair Value Valuation

Techniques Unobservable Inputs Ranges Weighted

Average (a) Impact to Valuation from an Increase in Input

Investments in equity securities $ 253 Market approach N/A N/A N/A N/A

Investments in debt 252 Par (net of amortized discount) plus

accrued interest Discount rate 14 %

AS AT DECEMBER 31, 2024

Level III Asset/Liability Fair Value Valuation

Techniques Unobservable

Inputs Ranges Weighted

Average (a) Impact to Valuation from an Increase in Input

Investments in equity securities $ 251 Market approach N/A N/A N/A N/A

Level III Changes in Fair Value of Consolidated Funds

AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024

(MILLIONS) Investments in equity securities

AS AT AND FOR THE YEAR ENDED

DECEMBER 31, 2025

Investments in debt Investments in equity securities

Balance, beginning $ — $ 251

Fair value changes in net income 25 22

Purchases 251

Deconsolidation of consolidated funds — ( 267 )

Purchases, net 227 247

Balance, ending $ 252 $ 253

AS AT AND FOR THE YEAR ENDED

DECEMBER 31, 2024

Investments in equity securities

Balance, beginning $ —

Fair value changes in net income —

Purchases, net 251

Balance, ending $ 251

CORPORATE BORROWINGS

BAM established a $ 750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders.

The facility is available in U.S.

and Canadian dollars, where U.S.

dollar draws are subject to the U.S.

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.

The margins are subject to change based on the Company's credit rating.

During the year ended December 31, 2025, BAM increased its revolving credit facility by $ 300 million to $ 1.05 billion.

During the year ended December 31, 2025, BAM completed three debt offerings, issuing an aggregate of $ 2.5 billion of senior unsecured notes.

On April 24, 2025, BAM issued $ 750 million of 10-year senior unsecured notes at a fixed interest rate of 5.795 %.

On September 9, 2025, BAM issued $ 750 million of 30-year senior unsecured notes at a fixed interest rate of 6.077 %.

On November 18, 2025, BAM issued $ 600 million of 5-year senior unsecured notes at a fixed interest rate of 4.653 %, and $ 400 million of 10-year senior unsecured notes at a fixed interest rate of 5.298 %.

All or a portion of the senior unsecured notes may be redeemed at BAM's option in whole or in part, at any time and from time to time, prior to the stated maturity, at the redemption price set forth in the agreement.

If a change of control triggering event occurs, subject to certain conditions, BAM will be required to make an offer to repurchase all outstanding senior unsecured notes in cash equal to 101 % of the principal amount plus accrued and unpaid interest up to the date of, but not including, the date of repurchase.

BAM has the following debt obligations outstanding:

AS AT DECEMBER 31,

2025 2024 Remaining Maturity

Carrying Value Fair Value Carrying Value Fair Value

Senior unsecured notes

4.653 %, Due 11/15/2030

$ 600 $ 605 $ — $ — 58 months

5.795 %, Due 4/24/2035

750 786 — — 113 months

5.298 %, Due 1/15/2036

400 400 — — 121 months

6.077 %, Due 9/15/2055

750 769 — — 357 months

Deferred financing costs ( 22 ) ( 22 ) — — N/A

Total corporate borrowings $ 2,478 $ 2,538 $ — $ —

Fair value is determined by broker quote and these notes would be classified as level II within the fair value hierarchy.

Borrowings of Consolidated Funds

Certain consolidated funds may maintain revolving credit facilities that are secured by the assets of the fund or may issue senior variable rate notes to fund investments on a longer term basis, generally up to ten years.

The obligations of the consolidated funds are non-recourse to the Company.

The consolidated funds has the following debt obligations outstanding:

Certain consolidated funds also maintain revolving credit facilities that are secured by the limited partner commitments of the respective fund.

The consolidated funds of BAM have the following borrowings:

AS AT DECEMBER 31,

(MILLIONS) 2024 2023 Facility Capacity Weighted Average Interest Rate Weighted Average Remaining Maturity Commitment fee rate

Revolving credit facilities $ 251 $ — $ 675 6.4% - 6.7% 13 months 0.3 %

Total debt obligations $ 251 $ —

The Company offers investment products on a number of strategies, specifically renewable power and transition, infrastructure, real estate, private equity, and credit, operating in more than 30 countries.

The majority of management and advisory fees, net are earned in the United States of America.

2025 2024 Facility Capacity Weighted Average Interest Rate Weighted Average Remaining Maturity Commitment fee rate

Consolidated funds

Revolving credit facilities $ 462 $ 251 $ 745 6.1 %

Total borrowings of consolidated funds $ 462 $ 251

BAM was in compliance with all financial covenants associated with its corporate borrowings as of December 31, 2025 and 2024.

Freestanding derivatives are instruments that the Company have entered into in the normal course of business to achieve certain risk management objectives as part of their overall risk management and investment strategies.

These derivative contracts are not designated as hedging instruments for accounting purposes.

Such contracts may include interest rate swaps, total return swaps, and foreign currency forward contracts.

As a result of the use of derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill their contractual obligations.

To mitigate such counterparty risk, the Company enters into contracts with certain major financial institutions, all of which have investment grade ratings.

Counterparty credit risk is evaluated in determining the fair value of derivative instruments.

The table below summarizes the aggregate notional amount and fair value of the derivative instruments.

The notional amount represents the absolute value of all outstanding derivative contracts.

AS AT DECEMBER 31, 2025

(MILLIONS) Assets

Notional Amount

Freestanding derivatives

Foreign-currency forward contracts $ 325 $ 4 $ 405 $ 3

Total return swap contracts 66 3 8 1

Interest rate swap contracts — — 370 1

$ 391 $ 7 $ 783 $ 5

Nominal realized and unrealized gains and losses arising from freestanding derivatives were recorded in the consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively.

There were no derivatives outstanding that were designated as hedging instruments for accounting purposes as of December 31, 2025 and 2024.

Derivatives are recorded gross as financial assets or financial liabilities in the consolidated balance sheets.

The Company offers investment products on a number of strategies, specifically renewable power and transition, infrastructure, private equity, real estate and credit, operating in more than 50 countries.

The majority of base management and advisory fees are earned from customers located in the U.S.

The following table sets out revenue disaggregated by investment strategy and geography.

FOR THE YEAR ENDED DECEMBER 31, 2025

Renewable power and transition Infrastructure Real estate Private equity Credit Total

Management and advisory fees, net

United States of America $ 105 $ 204 $ 558 $ 120 $ 214 $ 1,201

Canada 172 374 23 71 25 665

Renewable power and transition Infrastructure Private equity Real estate Credit Total

Base management and advisory fees

United States $ 111 $ 142 $ 90 $ 574 $ 311 $ 1,228

United Kingdom 229 227 88 302 16 862

Canada 203 400 73 23 80 779

Other 164 202 46 87 16 515

2 unchanged sentences

FOR THE YEAR ENDED DECEMBER 31, 2024

Renewable power and transition Infrastructure Real estate Private equity Credit Total

Management and advisory fees, net

United States of America $ 103 $ 190 $ 556 $ 104 $ 126 $ 1,079

Canada 176 422 44 104 12 758

Renewable power and transition Infrastructure Private equity Real estate Credit Total

Base management and advisory fees

United States $ 105 $ 204 $ 120 $ 558 $ 214 $ 1,201

United Kingdom 163 189 83 252 — 687

Canada 172 374 71 23 25 665

Other 105 171 48 80 — 404

2 unchanged sentences

FOR THE YEAR ENDED DECEMBER 31, 2023

Renewable power and transition Infrastructure Real estate Private equity Credit Total

Management and advisory fees, net

United States of America $ 131 $ 185 $ 573 $ 85 $ 122 $ 1,096

Canada 182 346 46 89 8 671

Renewable power and transition Infrastructure Private equity Real estate Credit Total

Base management and advisory fees

United States $ 103 $ 190 $ 104 $ 556 $ 126 $ 1,079

United Kingdom 151 200 45 174 — 570

Canada 176 422 104 44 12 758

Other 71 140 70 78 — 359

1 unchanged sentence

$ 612 $ 1,217 $ 323 $ 852 $ 138 $ 3,142

The Company’s statutory income tax rate has remained consistent at 27% during the years ended December 31, 2024, 2023 and 2022.

The following is a summary of the Company's income tax (benefit) expense.

The following is a summary of the Company's income tax expense (benefit).

The income before provision for taxes consists of the following:

14 unchanged sentences

Canada 72 208 31

Other 6 4 (7)

Total provision for deferred tax 151 274 92

4 unchanged sentences

Total Provision for income tax $ 527 $ 438 $ 417

The Company's effective income tax rate is different from the Company's statutory income tax rate due to the following differences set out below:

The Company's effective income tax rate is different from the Company's federal statutory income tax rate due to the following differences set out below:

FOR THE YEAR ENDED DECEMBER 31,

Income before provision for taxes $ 2,925

Federal statutory income tax rate 439 15 %

(Reduction) increase in rate resulting from:

United States

International operations subject to different tax rates 60 2 %

Stock compensation ( 43 ) ( 1 ) %

Changes in valuation allowance 197 7 %

Other ( 15 ) — %

Provincial tax 56 2 %

United Kingdom 42 1 %

Other jurisdictions 8 — %

Incentive distributions ( 78 ) ( 3 ) %

Taxable income attributable to non-controlling interests ( 59 ) ( 2 ) %

Portion of gains subject to different tax rates ( 85 ) ( 3 ) %

Effective income tax rate $ 527 18 %

FOR THE YEARS ENDED DECEMBER 31,

2024 2023 2022

Statutory income tax rate 27 % 27 % 27 %

Combined statutory income tax rate 27 % 27 %

(Reduction) increase in rate resulting from:

9 unchanged sentences

Losses (United States) $ 445 $ 552 $ 720

Losses (Canada) — — 24

Losses (Other) 6 6 6

Investment basis differences/net unrealized gains and losses 318 28 ( 83 )

Deferred income tax assets before valuation allowance $ 769 $ 586 $ 643

Valuation allowance ( 197 ) — —

Deferred income tax assets $ 572 $ 586 $ 643

1 unchanged sentence

Deferred income tax liabilities $ 169 $ 46 $ 40

As at December 31, 2024, the Company has net operating loss carryforwards in the United States of approximately $2.6 billion (2023 – $3.5 billion) that expire after 2026.

As at December 31, 2024, the Company has accumulated undistributed earnings generated by certain foreign subsidiaries, which it intends to indefinitely reinvest and have not recorded any deferred taxes with respect to outside tax basis differences on these subsidiaries.

Management evaluates the realizability of deferred tax assets by considering, among other factors, projections of future taxable income, beginning with historical results and incorporating assumptions regarding the amount and character of future taxable income.

These assumptions require judgment and are consistent with the Company's operating plans and estimates used to manage the business.

As at December 31, 2025, a valuation allowance of $ 197 million has been recorded against deferred tax assets related to net operating loss carryforwards in the U.S.

that are not more likely than not to be utilized.

The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased.

As at December 31, 2025 , the Company has net operating loss carryforwards in the U.S.

of appro ximately $ 2.1 billion ( 2024 – $ 2.6 billion) that expire after 2026.

As at December 31, 2025 , the Company has accumulated undistributed earnings generated by certain foreign subsidiaries, which it intends to indefinitely reinvest and have not recorded any deferred taxes with respect to outside tax basis difference on these subsidiaries.

As at December 31, 2025, the Company did not have any material unrecognized tax benefits related to uncertain tax positions.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates.

1 unchanged sentence

and other local tax authorities.

As of December 31, 2024, certain of the Company's U.S income tax returns for 2015 through 2023 are open to or are under examination and certain of the Company's other non-U.S.

As of December 31, 2025 , certain of the Company’s U.S.

income tax returns for 2018 through 2023 are open to or are under examination.

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period.

BAM applies the two-class method in calculating earnings per share for each of its two classes of shares and participating securities, based on their pro-rata share of earnings.

Class A Shares held under the ES Plans in one or more private wholly owned subsidiaries of BAM are classified as treasury shares and have been excluded from the calculation of earnings per share.

BAM has certain dilutive securities relating to outstanding escrowed shares and options held by employees and non-employees that have been reflected accordingly in diluted earnings per share figures.

Basic and diluted net income per share of common stock for the years ended December 31, 2025, 2024 and 2023 was calculated as follows:

FOR THE YEARS ENDED DECEMBER 31,

Class A Shares

Class B Shares

Class A Shares

Class B Shares

Class A Shares

Class B Shares

Net income $ 2,482 $ — $ 2,165 $ — $ 1,837 $ —

Weighted average of common stock outstanding - basic 1,612.2 — 1,603.4 — 1,585.8 —

Dilutive effect of conversion of options and escrowed shares using treasury stock method 16.3 — 10.2 — 4.8 —

Weighted average of common stock outstanding - diluted 1,628.5 — 1,613.6 — 1,590.6 —

Net Income per Share

Earnings per share - basic $ 1.54 $ 1.54 $ 1.35 $ 1.35 $ 1.16 $ 1.16

Earnings per share - diluted $ 1.52 $ 1.54 $ 1.34 $ 1.35 $ 1.16 $ 1.16

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Management stock options of BAM 3.8 4.2 8.2

Escrow shares of BAM 3.6 3.7 5.0

Total 7.4 7.9 13.2

SHARE-BASED COMPENSATION

BAM and BN, related parties of the Company, have granted share-based compensation awards to certain employees and non-employee directors of the Company under a number of compensation plans (the “Equity Plans”).

BAM and BN have granted share-based compensation awards to certain employees and directors of BAM, under a number of compensation plans (the “Equity Plans”).

During the year ended December 31, 2024, the Company granted 4.9 million (2023 – nil;

2022 – nil) escrowed shares at a weighted average exercise price of $40.25 (2023 – nil;

The compensation expense was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term (2023 – nil;

2022 – nil), 29.2% volatility (2023 – nil;

2022 – nil), a weighted average expected dividend yield of 4.8% (2023 – nil;

2022 – nil) annually, a risk-free rate of 4.2% (2023 – nil, 2022 – nil) and a liquidity discount of 25%, with a fair value of $6.15 per unit (2023 – nil;

The total fair value of the escrowed shares granted was $30.2 million (2023 – nil;

The expense recognized for share-based compensation is summarized in the following table:

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2024 2023 2022

2025 2024 2023

Expense arising from equity-settled share-based payment transactions

9 unchanged sentences

Management Share Option Plan

Options issued under the Management Share Option Plan (“MSOP”) of both BN and BAM vest over a period of up to five years, expire ten years after the grant date and are settled through issuance of Class A shares of BN or BAM.

BAM recognizes any awards associated with the existing Equity Plans for its employees irrespective of whether the awards were granted by BN or BAM.

The exercise price is equal to the market price at the grant date.

For the year ended December 31, 2024, the total expense incurred with respect to MSOP totaled $24 million, respectively (2023 – $24 million;

For the year ended December 31, 2025, the total expense incurred with respect to MSOP totaled $ 44 million (2024 – $ 24 million;

2023 – $ 24 million).

4 unchanged sentences

Outstanding as at January 1, 2025 12,565 $ 34.54 19,955 $ 20.06

2025 Arrangement 6,085 31.67 16,133 17.38

Transferred 90 31.03 1,214 22.49

5 unchanged sentences

Represents the continuity of BN's options relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM.

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The change in the number of options during the year ended December 31, 2024 was as follows:

8 unchanged sentences

Outstanding as at December 31, 2024 12,565 $ 34.54 19,955 $ 20.06

9,969 $ 30.81 18,467 $ 28.15

Represents the continuity of BAM options relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN's options relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM.

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The change in the number of options during the year ended December 31, 2023 was as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2, 3

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2023 5,631 $ 22.87 32,742 $ 17.07

Transferred ( 455 ) 19.18 ( 2,656 ) 14.40

Granted 5,721 35.13 — —

Exercised ( 652 ) 16.99 ( 2,027 ) 11.45

Cancelled ( 276 ) 35.27 ( 359 ) 26.58

Outstanding as at December 31, 2023 9,969 $ 30.81 27,700 $ 18.77

Represents the continuity of BAM options relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN's options relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM.

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The weighted-average grant date fair value of BAM MSOP granted for the year ended December 31, 2025 was $ 11.18 ( 2024 – $ 6.12 ;

1 unchanged sentence

FOR THE YEAR ENDED DECEMBER 31

Unit 2024 2023 2022

Weighted-average share price US$ $ 59.62 $ 40.07 $ 35.13

6 unchanged sentences

Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share prices over a similar period to the average term to exercise.

The weighted-average grant date fair value of BN MSOP granted for the year ended December 31, 2022 was $8.82, and was determined using the Black-Scholes valuation model, with inputs to the model as follows:

FOR THE YEAR ENDED DECEMBER 31

Weighted-average share price US$ $ 46.62

Average term to exercise Years 7.5

Share price volatility 1

Liquidity discount % 25.0

Weighted-average annual dividend yield % 1.4

Risk-free rate % 1.9

Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share price over a similar period to the average term to exercise.

The total fair value of the options granted during the year ended December 31, 2025 was $ 53 million (2024 – $ 38 million;

2023 – $ 41 million).

Escrowed Stock Plan

Under the Escrowed Stock (“ES”) Plans, executives are granted common shares (the “ES Shares”) in one or more private escrowed companies that own Class A shares of BAM, the Asset Management Company, and BN.

The ES Shares generally vest over five years and must be held to the fifth anniversary of the grant date.

At a date no more than ten years from the grant date, all outstanding ES Shares will be exchanged for Class A shares issued by BN or BAM based on the increase in market value between the date of grant and date of exercise of the respective Class A shares at the time of the exchange.

An equal number of Class A shares held in the private escrow companies may be cancelled such that the issuance of shares to employees is non-dilutive.

In general, the shares issued on exchange will be less than the Class A shares purchased under the ES Plan resulting in a net reduction in the number of Class A shares issued.

The Escrowed Stock (“ES”) shares generally vest over five years and must be held to the fifth anniversary of the grant date.

At a date no more than ten years from the grant date, all outstanding ES shares will be exchanged for Class A Shares or BN Class A Shares based on the respective market value at the time of the exchange.

The number of Class A Shares or BN Class A Shares issued on exchange will be less than the number of shares purchased under the ES Plan resulting in a net reduction in the number of Class A Shares or BN Class A Shares.

For the year ended December 31, 2025, the total expense incurred with respect to the ES Plan totaled $ 60 million (2024 – $ 20 million;

2023 – $ 14 million).

During the year ended December 31, 2024, a subsidiary of the Asset Management Company, as part of establishing various equity-based compensation vehicles associated with the ES Plans, issued a total of 7,797,441 class A preferred shares to BN and BAM for consideration of $147 million and $48 million, respectively.

The class A preferred shares are redeemable at the option of the holder

and the issuer at a redemption amount of $25 per share plus accrued and unpaid dividends and these preferred shares are non-voting.

The consideration received for this share issuance was the contribution of 3,671,149 of the Asset Management Company's common shares by BN and the contribution of 1,232,151 common shares of the Asset Management Company by BAM.

The Asset Management Company has utilized the common shares received to structure various equity-based compensation vehicles owned by the Asset Management Company.

The changes in the number of ES shares during 2024 were as follows:

The changes in the number of ES shares during the year ended December 31, 2025 was as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Asset Management ULC Options 2

Number of Brookfield Corporation Options 3

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Number of Brookfield Asset Management ULC ES Shares 2

Number of Brookfield Corporation ES Shares 3, 4

Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2025 3,242 $ 32.24 1,494 $ 40.07 10,878 $ 23.49

2025 Arrangement 9,038 31.62 3,409 40.32 26,502 23.23

Transferred ( 505 ) 32.36 ( 250 ) 40.07 393 40.13

4 unchanged sentences

Represents the continuity of BAM ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BAM ULC ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of the Asset Management Company ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN ES relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM.

The changes in the number of ES shares during 2023 were as follows:

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The changes in the number of ES shares during the year ended December 31, 2024 was as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation Options 2

Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price

Number of Brookfield Asset Management ULC ES Shares 2

Number of Brookfield Corporation ES Shares 3, 4

Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2024 3,321 $ 32.18 — $ — 11,740 $ 23.58

1 unchanged sentence

Granted — — 1,494 40.07 — —

Exercised ( 79 ) 29.64 — — ( 835 ) 24.50

Cancelled — — — — ( 9 ) 30.34

1 unchanged sentence

Represents the continuity of BAM ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of the Asset Management Company ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN ES relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM.

The weighted-average grant date fair value of BAM ULC escrowed shares granted for the year ended December 31, 2024 was $6.12 and weighted-average grant date fair value of BAM escrowed shares granted for the year ended December 31, 2023 was $5.26 (2022 – $3.83), and was determined using the Black-Scholes model of valuation with inputs to the model as follows:

FOR THE YEARS AND PERIOD ENDED DECEMBER 31,

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The changes in the number of ES shares during the year ended December 31, 2023 were as follows:

Number of Brookfield Asset Management Ltd.

Number of Brookfield Corporation ES Shares 2, 3

Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price

Outstanding as at January 1, 2023 2,361 $ 29.64 15,211 $ 23.48

Transferred ( 575 ) 29.64 ( 3,449 ) 23.14

Granted 1,535 35.13 — —

Cancelled — — ( 22 ) 29.00

Outstanding as at December 31, 2023 3,321 $ 32.18 11,740 $ 23.58

Represents the continuity of BAM ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN.

Represents the continuity of BN ES relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM.

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The weighted-average grant date fair value of BAM escrowed shares granted for the year ended December 31, 2025 was $ 11.18 (2024 – $ 6.12 ;

2023 – $ 5.26 ), and was determined using the Black-Scholes model of valuation with inputs to the model as follows:

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) Unit 2025

7 unchanged sentences

Share price volatility was determined based on implied volatilities consistent with BN's historical share prices over a similar period to the average term to exercise.

The weighted-average grant date fair value of Brookfield Corporation escrowed shares granted for the year ended December 31, 2022 was $7.66, and was determined using the Black-Scholes model of valuation with inputs to the model as follows:

FOR THE YEARS ENDED DECEMBER 31

(MILLIONS) Unit 2024 2023 2022

Weighted-average share price US$ N/A N/A $ 36.28

Average term to exercise Years N/A N/A 7.2

Share price volatility 1

% N/A N/A 26.7

Liquidity discount % N/A N/A 25.0

Weighted-average annual dividend yield % N/A N/A 1.0

Risk-free rate % N/A N/A 3.7

Share price volatility was determined based on implied volatilities consistent with BN's historical share prices over a similar period to the average term to exercise.

The total fair value of the escrowed shares granted during the year ended December 31, 2025 was $ 40 million (2024 – $ 30 million;

2023 – $ 25 million).

Restricted Stock Plan

The Restricted Stock Plan awards executives with Class A shares of BN and BAM purchased on the open market (“Restricted Shares”).

The Restricted Stock Plan awards executives with Class A Shares and BN Class A Shares purchased on the open market (“Restricted Shares”).

Under the Restricted Stock Plan, Restricted Shares awarded vest over a period of up to five years , except for Restricted Shares awarded in lieu of a cash bonus, which may vest immediately.

Vested and unvested Restricted Shares are subject to a hold period of up to five years .

Holders of Restricted Shares are entitled to vote Restricted Shares and to receive associated dividends.

Holders of Restricted Shares are entitled to vote and to receive associated dividends.

Employee compensation expense for the Restricted Stock Plan is charged against income over the vesting period.

3 unchanged sentences

The Deferred Share Unit (“DSU”) Plan provides for the issuance of DSUs.

Under the plan, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of DSUs.

The DSUs vest over periods of up to five years, and accumulate additional DSUs at the same rate as dividends on Class A shares of BN and BAM based on the market value of the Class A shares at the time of the dividend.

Participants are not allowed to convert DSUs into cash until retirement or cessation of employment.

The value of the DSUs, when converted to cash, will be equivalent to the market value of the Class A shares of BN and BAM at the time the conversion takes place.

Under the DSU plan, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of DSUs.

The DSUs vest over periods of up to five years , and accumulate additional DSUs at the same rate as dividends on Class A Shares and BN Class A Shares based on the market value of the shares at the time of the dividend.

Participants are not allowed to convert vested DSUs into cash until retirement or cessation of employment.

The value of the DSUs, when converted to cash, will be equivalent to the market value of the Class A Shares or BN Class A Shares at the time the conversion takes place.

The fair value of the vested DSUs as at December 31, 2025 was $ 701 million (December 31, 2024 – $ 150 million).

4 unchanged sentences

For the year ended December 31, 2025, employee compensation expense totaled $ 88 million (2024 – $ 42 million;

2022 – recovery of $195 million).

2023 – $ 15 million).

Restricted Share Unit Plan

The Restricted Share Unit (“RSU”) Plan provides for the issuance of RSUs.

Under the plan, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of RSUs.

The Restricted Share Unit (“RSU”) Plan provided for the issuance of RSUs.

Under the RSU plan, qualifying employees and directors received varying percentages of their annual incentive bonus or directors’ fees in the form of RSUs.

The RSUs vest over periods of up to five years .

Participants are not allowed to convert RSUs into cash until retirement or cessation of employment.

Employee compensation expense for these plans is charged against net income over the vesting period of the RSUs.

For those awards issued as part of the 2022 Arrangement, the mark-to-market movement is recoverable from BN.

The amount payable in respect of vested RSUs changes as a result of dividends and share price movements.

All of the amounts attributable to changes in the amounts payable by the Company are recorded as employee compensation expense in the period of the change.

During the year ended December 31, 2024, the RSU Plan was settled and participating employees and directors of the Asset Management Company received a cash settlement equal to the value of the RSUs at the date of settlement or an option to acquire preferred shares in subsidiaries of BN with a redemption value equal to the value of their RSUs on the date of the settlement of the RSU plan.

The value of the outstanding options associated with the settlement of the RSU plan as at December 31, 2024 was $21 million (2023 – $nil) and the fair value of outstanding RSUs was $nil (December 31, 2023 – $21 million).

For the year ended December 31, 2024, employee compensation expense totaled $1 million (2023 – recovery of $3 million).

Participants were not allowed to convert RSUs into cash until retirement or cessation of employment.

The value of the RSUs, when converted into cash, was equivalent to the difference between the market price of equivalent number of Class A Shares or BN Class A Shares at the time the conversion takes place and the market price on the date the RSUs are granted.

During the year ended December 31, 2024, the RSU Plan was settled and participating employees and directors of BAM received a cash settlement equal to the value of the RSUs at the date of settlement or an option to acquire preferred shares in subsidiaries of BN with a redemption value equal to the value of their RSUs on the date of the settlement of the RSU plan.

The value of the outstanding options associated with the settlement of the RSU plan as at December 31, 2025 was $ nil (December 31, 2024 – $ 21 million) and the fair value of outstanding RSUs was $ nil (December 31, 2024 – $ nil ).

For the year ended December 31, 2025, expense associated with the RSU's totaled $ nil (2024 – $ 1 million;

2023 – recovery of $ 3 million).

The change in the number of DSUs and RSUs outstanding for the year ended December 31, 2025 was as follows:

1 unchanged sentence

share price (000's)

Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD)

Number of Units Tracking to BN 1 share price (000's)

Weighted-Average Exercise Price (CAD)

Outstanding as at January 1, 2025 387 2,297 — $ —

2025 Arrangement 1,694 10,515 — —

Transferred 13 233 — —

2 unchanged sentences

Outstanding as at December 31, 2025 2,054 12,251 — $ —

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The change in the number of DSUs and RSUs outstanding for the year ended December 31, 2024 was as follows:

Number of Units Tracking to BAM Ltd.

share price (000's)

Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD)

share price (000's) Number of Units Tracking to BN 1 share price (000's)

Number of Units Tracking to BN 1 share price (000's)

Weighted-Average Exercise Price (CAD)

Outstanding as at January 1, 2024 788 4,804 854 $ 2.62

3 unchanged sentences

Outstanding as at December 31, 2024 387 2,297 — $ —

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

The change in the number of DSUs and RSUs outstanding for the year ended December 31, 2023 was as follows:

Number of Units Tracking to BAM Ltd.

share price (000's)

Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD)

share price (000's) Number of Units Tracking to BN 1 share price (000's)

Number of Units Tracking to BN 1 share price (000's)

Weighted-Average Exercise Price (CAD)

Outstanding as at January 1, 2023 915 5,785 1,234 $ 2.62

3 unchanged sentences

Outstanding as at December 31, 2023 788 4,804 854 $ 2.62

Adjusted to reflect the three-for-two stock split completed on October 9, 2025.

PREFERRED SHARES REDEEMABLE NON-CONTROLLING INTEREST

8 unchanged sentences

Class A preferred 5,909,372 148 7,797,431 195

BMHL Preferred Shares 100 — 100 —

BMHL Tracking Shares 100 31 100 —

$ 1,398 $ 2,103

2 unchanged sentences

Balance, beginning $ 2,103 $ 2,166

Net issuances 148 93

Issuances 124 158

Distributions ( 199 ) —

Deemed settlement of Class A preferred shares as a result of 2025 Arrangement ( 47 ) —

Changes in redemption value included in net income attributable to preferred shares non-controlling interest ( 480 ) ( 211 )

Settlements ( 94 ) —

Other ( 9 ) ( 10 )

Balance, ending $ 1,398 $ 2,103

BUSHI and BMHL Tracking Shares

In December 2022, at the time of the spin-off, BUSHI and BMHL, subsidiaries of the Company, entered into arrangements with BN whereby BUSHI and BMHL issued preferred shares to BN in exchange for BN's holdings in BUSHI's and BMHL's common shares.

The preferred shares, which we also refer to as Tracking Shares, represent a class of ownership senior to common stock and subordinate to debt and are entitled to quarterly dividends when declared by BUSHI and BMHL.

The BUSHI preferred shares are redeemable at the option of the issuer, whose board is controlled by the holder, after 10 years and the BMHL preferred shares are redeemable when a redemption triggering event has occurred.

As the Company does not solely control the redemption event, these preferred shares are accounted for as redeemable non-controlling interests.

Class B senior preferred and preferred shares

In December 2022, BUSHI and BMHL, subsidiaries of BAM, entered into arrangements with BN whereby BUSHI and BMHL issued preferred shares to BN in exchange for BN's holdings in BUSHI's and BMHL's common shares.

In April 2025, BUSHI entered into an arrangement with BN whereby BUSHI issued the third series of Tracking Shares to BN in exchange for $ 25 million of cash.

The third series of Tracking Shares provides BN with an economic interest equal to 1.5 % of certain investments held by Oaktree, an equity method investment of BAM, excluding any fee earnings, carried interest, incentive fees and performance fees of that equity method investee.

During the year ended December 31, 2025, BUSHI paid BN a $ 176 million cash dividend on the BUSHI Tracking Shares, BMHL paid BN a $ 14 million cash dividend on the BMHL tracking shares, and BUSHI declared a $ 7 million distribution to BN on the Class A Preferred Shares and $ 2 million on the Senior Class B Preferred Shares.

BUSHI Class B senior preferred and preferred shares

In addition to the Tracking Shares, BUSHI has also issued class B senior preferred shares and class B preferred shares.

4 unchanged sentences

Class A preferred shares

During the year ended December 31, 2024, a subsidiary of the Asset Management Company issued 5,909,372 class A preferred shares to BN and 1,888,059 class A preferred shares to BAM for consideration of $148 million and $47 million, respectively.

The class A preferred shares are redeemable at the option of the holder and the issuer at a redemption amount of $25 per share plus accrued and unpaid dividends and these preferred shares are non-voting.

Refer to Note 9 for further details.

The class A preferred shares were issued by a subsidiary of BAM to BN, redeemable at the option of the holder and the issuer at a redemption amount of $ 25 per share plus accrued and unpaid dividends and these preferred shares are non-voting.

During the year ended December 31, 2025, 1,888,059 class A preferred shares worth $ 47 million were deemed to have been settled upon consolidation as a result of the 2025 Arrangement.

The Company accounts for the changes in the value of the redeemable non-controlling interest in accordance with ASC 480 , Distinguishing Liabilities from Equity .

The Company elects for the BUSHI tracking shares and class B senior preferred shares to recognize changes in the redemption value immediately as they occur and adjust the carrying amount to equal the redemption value at the end of each reporting period.

As the BMHL tracking shares are not currently redeemable and management has determined that it is not probable that the instrument will become redeemable no subsequent adjustment in the value of the preferred shares is expected.

The BUSHI class B preferred shares are currently redeemable and are therefore measured at their redemption amount at each reporting

During the year ended December 31, 2025, the BMHL tracking shares were amended such that a future redemption by BUSHI, whose board is controlled by BN, is now permitted upon the tenth anniversary of issuance consistent with the BUSHI tracking shares.

As a result, BAM recognizes changes in the redemption value of the BMHL tracking shares by adjusting the carrying amount to equal the redemption value at the end of each reporting period.

The BUSHI class B preferred shares are currently redeemable and are therefore measured at their redemption amount at each reporting date.

However, no adjustment to the carrying value of the class B preferred shares is expected as dividends declared are expected to be paid on or prior to each reporting date.

NON-CONTROLLING INTEREST

Upon completion of the 2022 Arrangement, the Company issued various classes of equity interests of the Company’s subsidiaries to BN which have rights to priority distributions.

Non-Controlling Interests in Consolidated Entities

Net income (loss) generated by the respective subsidiaries is allocated to non-controlling interest in consolidated entities based on the substantive contractual terms of the subsidiaries’ governing agreements that specify the allocation of income or loss.

Majority of income attributable to non-controlling interest is comprised of BN's one third share of carried interest revenue generated on new funds.

The majority of income attributable to non-controlling interest is comprised of BN's one third share of carried interest revenue generated on new funds.

The movement in the carrying value of non-controlling interest is as follows:

3 unchanged sentences

Contributions 61 16

Distributions (4) —

Transfer of interest — 29

2025 Arrangement 31 —

Distributions (a)

Balance, ending $ 773 $ 336

(a) Distributions include a $ 17 million adjustment to derecognize the remaining non-controlling interest in a consolidated entity that was acquired during the year ended December 31, 2025.

Non-Controlling Interests in Consolidated Funds

The following table sets forth a summary of changes in the non-controlling interests in consolidated funds.

Dividends reinvested and in-kind contributions or distributions are non-cash in nature and have been presented on a gross basis in the table below.

AS AT AND FOR THE YEARS ENDED DECEMBER 31,

Balance, beginning $ — $ —

Interest in assets acquired attributable to non-controlling interest 138 —

Debt issuance attributable to non-controlling interest (138) —

Net income 24 —

Contributions 163 —

Deconsolidation of consolidated funds ( 166 ) —

Balance, ending $ 21 $ —

11 unchanged sentences

$ 2,459 $ 1,349

Other liabilities are primarily comprised of current taxes payable and accrued bonuses.

Other liabilities are primarily comprised of current taxes payable, accrued bonuses, and amounts payable related to cash based compensation vesting.

PROPERTY, PLANT AND EQUIPMENT, NET

2 unchanged sentences

Leasehold improvements, net 49 28

Depreciation expense of $ 12 million (2024 – $ 6 million, 2023 – $ 3 million) related to property, plant, and equipment, and $ 8 million (2024 – $ 5 million, 2023 – $ 8 million) related to leasehold improvements for the years ended December 31, 2025, 2024 and 2023, is included in general, administrative, and other in the consolidated statements of operations.

GOODWILL AND INTANGIBLE ASSETS, NET

8 unchanged sentences

Balance, beginning of year $ 38 $ 42

2025 Arrangement 215 —

Amortization ( 20 ) ( 4 )

Impairment and other — (14)

Balance, end of year $ 234 $ 38

1 unchanged sentence

Amortization of intangible assets held at December 31, 2025 is expected to be $ 25 million, $ 24 million, $ 24 million, and $ 24 million for each of the years ending December 31, 2026, 2027, 2028 and 2029, respectively.

In accordance with ASC 350 Intangibles — Goodwill and Other , management has performed an annual impairment assessment of goodwill.

In each instance the fair value was found to be in excess of the carrying value of the relevant reporting unit.

In addition, an assessment of impairment was performed with respect to certain intangible assets and no impairment was identified.

In accordance with ASC 350 Intangibles — Goodwill and Other , management reviews its goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, and considers factors including, but not limited to, expected cash flows from its interest in future management fees and the ability to raise new funds.

During the year ended December 31, 2025, the Company recorded an impairment loss of $ 15 million (2024 – $ nil ) related to a specific underlying strategy that will not be continued.

In all other instances the fair value was found to be in excess of the carrying value of the relevant reporting unit.

In addition, an assessment of impairment indicators was performed with respect to certain intangible assets and no indicator of impairment was identified.

The fair value of the reporting units for both goodwill and intangibles was determined utilizing a discounted cashflow model along with inputs from assessing multiples of publicly traded companies.

8 unchanged sentences

The carrying value of cash and cash equivalents approximates their fair value.

Cash equivalents comprise of a deposit with BN of $132 million (2023 – $2.5 billion).

Cash equivalents comprise of a deposit with BN of $ 1.1 billion (2024 – $ 132 million).

RELATED PARTY TRANSACTIONS

In the normal course of business, the Company entered into transactions with related parties and derived the majority of its revenue from the provision of asset management services to funds.

as well as subsidiaries and operating entities of BN.

During the year ended December 31, 2024, the Company recorded revenues of $3.8 billion (2023 – $3.5 billion;

2022 – $3.2 billion) derived from related party transactions on its Consolidated and Combined Statements of Operations.

In the normal course of business, the Company entered into transactions with related parties by providing and borrowing on short-term credit facilities, working capital facilities, as well as unsecured loans.

The balances due and from these facilities as well as those amounts due and from share-based compensation recharge and recovery arrangements are recorded as Due from affiliates and Due to affiliates on the Consolidated and Combined Balance Sheets.

Under the AMSA, BAM provides the services of its employees and its Chief Executive Officer to the Company on a cost recovery basis.

For services received, costs are recorded on a gross basis in the Consolidated and Combined Statements of Operations.

the year ended December 31, 2024, under this arrangement, the Company has recognized an expense of $181 million (2023 – $177 million;

2022 – $6 million), in the Consolidated and Combined Statements of Operations which includes the impacts of the fair value movements of the cash-settled equity instruments provided by BAM to employees of the Company.

BAM is also entitled to reimbursement for costs incurred associated with stock-based compensation awards issued to employees of the Asset Management Company by BAM.

During the year ended December 31, 2024, the Company paid BAM $79 million (2023 – $16 million;

2022 – $nil), as a prepayment for equity-based compensation granted to the Company's employees.

For the year ended December 31, 2024, the Company also made a $15 million (2023 – $16 million;

2022 – $nil) prepayment to BAM under the AMSA for equity-based compensation.

During the year ended December 31, 2024, the Company issued to BAM options to acquire the Company’s shares, which are accounted for as the Company’s equity in Additional Paid-in Capital at their fair value on issuance date.

As of December 31, 2024, the carrying amount of these options is $75 million (2023 – $40 million).

In the normal course of business, BAM enters into transactions and derives substantially all of its revenue from the provision of asset management services to affiliates and related parties.

During the year ended December 31, 2025, the Company recorded revenues of $ 4.8 billion (2024 – $ 3.8 billion, 2023 – $ 3.5 billion), with affiliates and related parties on its consolidated statements of operations.

BAM also has investment management agreements with the funds that it manages.

In accordance with these agreements, these funds may bear certain operating costs and expenses which are initially paid by BAM and subsequently reimbursed by the funds.

As outlined in the Relationship Agreement, BN is responsible for costs associated with certain share-based awards for certain employees, some of which are subject to revaluation at each balance sheet date, and will also bear the cost of the employee entitlement to carried interest on mature funds either directly or indirectly through reimbursement to the Company.

Income generated under the Relationships Agreement relating to these instruments is recognized as Other revenues in the Consolidated and Combined Statements of Operations on a gross basis as the instruments vest.

During the year ended December 31, 2024, the Asset Management Company has recognized a recharge of $178 million (2023 – $142 million;

2022 – charge of $12 million) in the Consolidated and Combined Statements of Operations under this arrangement.

Under the TSA, Brookfield Asset Management ULC will provide BN and BAM certain services to support day-to-day corporate activities on a transitional basis.

For services provided to BN, costs are recorded on a gross basis in the Consolidated and Combined Statements of Operations.

For the year ended December 31, 2024, BN has recognized $13 million (2023 – $14 million;

2022 – $nil) in the Consolidated and Combined Statements of Operations under this arrangement.

During the year ended December 31, 2024 a subsidiary of the Asset Management Company issued class A preferred shares to BAM and BN for consideration of $189 million as part of the establishment of share-based compensation vehicles.

Refer to Note 9 for further details.

During the year ended December 31, 2024, the Company acquired an 11% interest in Pretium for $351 million from a related party of the Company.

For the year ended December 31, 2024 the Company recognized tax attributes purchased from a related party of $114 million (2023 – $90 million).

For the year ended December 31, 2024, as part of a strategic partnership between the Company and Oaktree, the Company recorded $20 million (2023 - $17 million;

2022 - $8 million) related to reimbursements of general and administrative expense which have been recognized as Other revenues in the Consolidated and Combined Statements of Operations.

As of December 31, 2024, the Company recorded $2 million (2023 - $5 million) in due from affiliates in the Consolidated and Combined Balance Sheets.

Income generated from BN under the Relationship Agreement relating to these instruments is recognized as other revenues in the consolidated statements of operations on a gross basis as the instruments vest or are incurred.

During the year ended December 31, 2025, BAM recognized recharges of $ 268 million (2024 – $ 178 million;

2023 – $ 142 million), in the consolidated statements of operations in other revenues under this arrangement.

Due from affiliates and due to affiliates consisted of the following:

1 unchanged sentence

Due from affiliates

Loans to affiliates $ 1,768 $ 1,854

Operating and loan receivables $ 1,669 $ 1,768

Receivables from affiliates related to share and cash-based compensation 1,611 732

1 unchanged sentence

Due to affiliates

Operating payables due to related parties $ 897 $ 659

Payables to affiliates related to share and cash-based compensation to carried interest 195 129

Borrowings from related parties — 198

Operating and loan payables $ 682 $ 897

Payables to affiliates related to share and cash-based compensation 38 195

$ 720 $ 1,092

Due from affiliates

Due from affiliates of $2.5 billion (2023 – $2.5 billion) consists of $1.8 billion (2023 – $1.9 billion) of loans from affiliates which are comprised of asset management fees receivables, working capital facilities, and other outstanding short-term credit facilities provided to BN and its subsidiaries in the normal course of business.

Loans to affiliates are unsecured with floating rates of Secured Overnight Financing Rate published by the Federal Reserve Bank of New York (“SOFR”) plus 235 bps or a fixed interest rate of 0.9% to 3.8%.

Due from affiliates of $ 3.3 billion (2024 – $ 2.5 billion) consists of $ 1.7 billion (2024 – $ 1.8 billion) of receivables from affiliates and related parties which are primarily comprised of base management fees and fund expense reimbursements which are earned in accordance with underlying agreements of the respective funds that BAM is the general partner of or manages.

Due from affiliates also includes working capital facilities, and other outstanding credit facilities provided in the normal course of business.

Loans to affiliates are unsecured with floating rates of SOFR plus 235 basis points or a fixed interest rate of 0.9 % to 4.2 %.

Maturities on loans to related parties range from 2026 to 2057.

The loans were generally issued to finance acquisitions and fund commitments.

In the normal course of business, BAM may periodically assign or transfer balances to related parties.

During the year ended December 31, 2025, BAM assigned a $ 117 million loan to a related party at market terms.

The remaining $ 1.6 billion (2024 – $ 0.7 billion) represents receivables from affiliates related to share and cash-based compensation.

Due to affiliates

Due to affiliates of $1.1 billion (2023 – $986 million) consists of amounts payable to related parties for services received in the normal course of business including operating expenses payable and borrowings from BN under the line of credit.

Due to affiliates of $ 720 million (2024 – $ 1.1 billion) consists of operating and loan payables to affiliates and related parties and payables to affiliates related to share and cash-based compensation.

Operating payables are for services received in the normal course of business.

Loans payables to affiliates and related parties are unsecured with a fixed interest rate of 6.8 % to 10.2 %.

The loans were generally issued for working capital management.

The payables to affiliates related to share and cash-based compensation relate to certain adjustments to share and cash-based compensation amounts under the Relationship Agreement as described above.

For the year ended December 31, 2025 the Company recognized tax attributes purchased from a related party of $ 136 million (2024 – $ 114 million).

Other related party transactions

During the year ended December 31, 2025 and as part of the 2025 Arrangement, BAM settled the outstanding tracking option which was previously recognized at cost less impairment.

As a result, as at December 31, 2025, the carrying amount of these options is $ nil (December 31, 2024 – $ 75 million).

Accounts payable include amounts payable under a tax receivable agreement with Oaktree for $ 116 million as at December 31, 2025 (2024 – $ 128 million).

Other liabilities as at December 31, 2025 include $ 46 million (2024 – $ 35 million) of lease liabilities associated with related parties.

During the year, certain Brookfield-managed funds exited an investment whereby BAM was required to warehouse the investment due to timing of a certain co-investment.

The total value of this warehouse was $ 103 million.

Subsequently, BAM received $ 105 million from the co-investors in settlement of the warehoused interest representing the entirety of this warehouse investment.

On December 22, 2025, BAM acquired certain limited partner units of a partnership from BN, and Brookfield Finance Inc.

(“BFI”) for consideration in the form of redeemable preferred shares with a redemption amount of $ 42 million and $ 52 million respectively.

These units were subsequently redeemed for cash equal to the redemption amount.

As BN and BFI are affiliates of the Company, these transactions were considered related party transactions.

The transactions resulted in an aggregate decrease of approximately $ 94 million in cash and taxes payable in the consolidated balance sheet.

BAM incurs certain facilities and technology expenses in the normal course of business that are charged by BN.

These costs are included within the other operating expenses in BAM's consolidated statement of operations.

In addition, BAM does business with and on behalf of certain of its affiliates and investees;

all such arrangements are conducted on a negotiated basis.

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

In the normal course of business, the Company enters into contractual obligations which include commitments to provide bridge financing and other equity commitments.

As at December 31, 2024, the Company had $3.3 billion of such commitments outstanding (2023 – $2.1 billion).

These other equity commitments primarily include signed investment commitments for bridging portfolio company acquisitions and limited partner commitments with third parties and funds and or entities managed by BAM.

The Company earns fees in connection with bridge financing and bears the risk associated with syndicating the commitment.

As at December 31, 2025, the Company had $ 6.6 billion of such commitments outstanding (December 31, 2024 – $ 3.3 billion).

During the year the Company assigned $ 166 million commitments to related parties.

The Company established a $ 750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders.

3 unchanged sentences

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 Company may from time to time enter into guarantees to assist the general partners of specific funds in securing financing.

During the year ended December 31, 2025, BAM increased its revolving credit facility by $ 300 million to $ 1.05 billion.

As at December 31, 2025, the Company has drawn $ nil on the $ 1.05 billion facility.

BAM may enter into guarantees in respect of certain co-investments in which there is carried interest.

The amount guaranteed is up to the carried interest amount paid to the general partners of the respective funds, net of taxes.

In the event that the general partners default on their carried interest clawback obligations, BAM will make payments under the guarantees.

As at December 31, 2025 and 2024, BAM has not recognized any liabilities with respect to such guarantees as no carried interest has been paid in the relevant funds.

The Company may also enter into guarantees where BAM is the general partner or to assist the general partners of specific funds in securing financing.

In the event that the general partners default on their financing obligations, the Company will be liable for outstanding payments under the guarantees.

As at December 31, 2024, the Company had $300 million of such guarantees outstanding (December 31, 2023 –$nil).

As at December 31, 2025, the Company had $ 179 million of such guarantees outstanding (December 31, 2024 – $ 300 million).

Contingencies

Carried interests clawback

Carried interests are realized when an underlying investment is profitably disposed of after the fund’s cumulative returns have met a certain thresholds for return of capital.

Carried interest clawback

Carried interest is realized when an underlying investment is profitably disposed of after the fund’s cumulative returns have met a certain threshold for return of capital.

When applicable, the Company records a liability for potential clawback obligations due to changes in the unrealized value of a fund’s remaining investments and where the Company has previously received carried interest distributions.

3 unchanged sentences

The Company’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against the Company.

As of December 31, 2024 there is no outstanding litigation.

As of December 31, 2025 and 2024 there was no material outstanding litigation.

The Company accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.

In such cases, there may be exposure to loss in excess of any amounts accrued.

Although there can be no assurance of the outcome of such legal actions, based on information known by management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows.

We operate in jurisdictions with differing tax laws and tax regulations.

5 unchanged sentences

We evaluate these uncertain tax positions on a quarterly basis, including consideration of changes in facts and circumstances, such as new regulations or recent judicial opinions, as well as the status of audit activities by taxing authorities.

Changes to our estimate of the amount to be realized are recorded in our provision for income taxes during the period in which the change occurred.

SUBSEQUENT EVENTS

The Company evaluated events and transactions occurring from January 1, 2025 up to March 17, 2025.

Except for as disclosed below, no subsequent events were identified.

BAM Announces Completion of Enhanced Corporate Structure

On February 4, 2025, BAM completed a corporate restructuring with BN by way of a court-approved plan of arrangement (the “2025 Plan of Arrangement”), which was originally announced on October 31, 2024, whereby BN transferred its approximate 73% interest in the Asset Management Company to BAM in exchange for newly issued Class A Shares of BAM, on a one-for-one basis (the “2025 Arrangement”).

The 2025 Arrangement will be accounted for as a reverse asset acquisition in which BAM ULC is considered the accounting acquirer and have issued shares to acquire the net assets of BAM.

BAM will continue to be the SEC registrant and its consolidated financial statements, including historical results, other than legal share capital, will be that of BAM ULC.

On March 11, 2025, the Asset Management Company completed the final close of its Brookfield Infrastructure Structured Solutions Fund (“BISS”), a middle-market infrastructure fund, achieving its fundraising target of approximately $1 billion of capital commitments.

The Asset Management Company’s commitment of approximately $250 million in BISS represents an approximate 24% ownership interest in the fund upon the final close.

Report of Independent Auditors

The Unitholders of Oaktree Asset Management Operating Group

We have audited the combined and consolidated financial statements of Oaktree Capital II, L.P., Oaktree Capital Management, L.P., Oaktree AIF Investments, L.P., Oaktree Capital Management (Cayman), L.P., and Oaktree Investment Holdings, L.P., and their consolidated subsidiaries (collectively, the “Oaktree Asset Management Operating Group” or the “Company” as defined in Note 1), which comprise the combined and consolidated statements of financial condition as of December 31, 2024 and 2023, and the combined and consolidated statements of operations, comprehensive income, cash flows, and changes in unitholders’ capital for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS).

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Accordingly, no such opinion is expressed.

/s/ Ernst & Young LLP

Los Angeles, California

March 17, 2025

OAKTREE ASSET MANAGEMENT OPERATING GROUP

COMBINED AND CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

AS AT DECEMBER 31

Cash and cash-equivalents

$ 302,282 $ 167,622

Treasury and other securities

Corporate investments (includes $41,424 and $14,596 measured at fair value as of December 31, 2024 and 2023, respectively)

Management fee receivable 84,628 82,859

Incentive income receivable 215,956 143,482

Due from affiliates

171,974 131,879

Fixed assets (net of accumulated depreciation and amortization of $123,041 and $112,328) 95,461 98,126

Intangible assets (net of accumulated amortization of $166,838 and $156,684) 180,614 190,768

Deferred tax assets

186,671 158,750

Right-of-use assets

66,234 68,318

Assets of consolidated funds:

Cash and cash-equivalents

476,318 582,800

Investments, at fair value

8,389,527 11,216,640

Dividends and interest receivable

65,177 84,176

Receivable for securities sold

74,214 74,629

Derivative assets, at fair value

Other assets, net

$ 12,539,305 $ 14,972,675

Liabilities and Unitholders’ Capital

Accrued compensation expense

$ 1,485,179 $ 1,323,375

Accounts payable, accrued expenses and other liabilities

171,920 167,679

Due to affiliates

244,268 6,911

Debt obligations

994,728 1,044,441

Operating lease liabilities

81,654 87,282

Liabilities of consolidated funds:

Accounts payable, accrued expenses and other liabilities

85,420 133,847

Payables for securities purchased

361,433 461,357

Derivative liabilities, at fair value

Distributions payable

Debt obligations of the consolidated funds

791,260 515,175

Debt obligations of CLOs

6,651,570 9,475,575

Total liabilities

10,868,560 13,217,756

Non-controlling redeemable interests in consolidated funds

157,164 457,235

Unitholders’ capital:

Total unitholders’ capital

1,513,581 1,297,684

Total liabilities and unitholders’ capital

$ 12,539,305 $ 14,972,675

Please see accompanying notes to combined and consolidated financial statements.

OAKTREE ASSET MANAGEMENT OPERATING GROUP

COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS

Changes to our estimate of the amount to be realized are recorded in our provision for income taxes during the year in which the change occurred.

SEGMENT REPORTING

The Company operates through five distinct operating segments that earn management fees from each respective investment strategy.

The performance of these segments is reviewed by the Chief Executive Officer, who acts as the CODM.

The CODM uses internal management reports to assess performance and allocate resources, and the information provided herein is consistent with the Company's internal reporting structure and information reviewed by the CODM on a regular basis.

The Company's operating segments are comprised of:

• Infrastructure:

Primarily includes managing our flagship infrastructure fund series focused on investing in high-quality infrastructure assets on a value basis.

In addition, we manage permanent capital vehicles and perpetual strategies which include BIP, listed on the NYSE and TSX.

• Renewable Power and Transition:

Primarily includes managing our flagship renewable power and transition fund series focused on investments aimed at accelerating the global transition to a net-zero carbon economy and driving clean energy investments in emerging markets.

In addition, we manage BEP, which is listed on the NYSE and TSX.

• Private Equity:

Includes managing our global opportunistic flagship funds, special investments strategy, secondaries strategy, thematic private equity strategies and regional private equity strategies.

In addition, we manage BBU which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services listed on the NYSE and TSX.

• Real Estate:

Includes the management of our opportunistic real estate flagship fund series and secondaries strategy.

In addition, we manage BPG and certain other perpetual funds focused on core plus assets and a non-traded REIT.

Includes managing our private credit strategies, opportunistic credit strategies, structured credit strategies, and liquid credit strategies.

These products seek to provide flexible, specialized capital solutions to borrowers and deliver attractive risk-adjusted returns to our clients across a range of debt strategies.

Asset information by segment is not disclosed because this information is not used by the CODM to make resource deployment decisions or evaluate the performance of the Company's segments.

Segment Revenues

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

Segment Revenues include base management fees, advisory fees, performance fees and transaction fees, but excludes incentive distributions, carried interest and revenues of consolidated funds.

In addition, Segment Revenues include management fees earned by Oaktree on a 100% basis along with our share of Segment Earnings of partner managers excluding Oaktree.

See below for our reconciliation of total revenues as presented on the consolidated statements of operations to Segment Revenues.

FOR THE YEARS ENDED DECEMBER 31,

(THOUSANDS, EXCEPT PER UNIT AMOUNTS)

Management fees

2025 2024 2023

Incentive fees and carried interest allocation

Total Revenues $ 4,817 $ 3,980 $ 4,062

Compensation and benefits

(715,505) (681,152) (603,320)

Equity-based compensation

(25,494) (23,754) (36,578)

Performance related compensation

(248,037) (149,691) (158,083)

Total compensation and benefits expense

(989,036) (854,597) (797,981)

General and administrative

(239,564) (214,875) (191,716)

Depreciation and amortization

(22,114) (20,850) (20,900)

Consolidated fund expenses

(7,643) (8,649) (20,272)

Total expenses

(1,258,357) (1,098,971) (1,030,869)

Other income (loss)

Interest expense

Interest and dividend income

Net realized loss on consolidated funds’ investments

Net change in unrealized appreciation (depreciation) on consolidated funds’ investments

Investment income

Other income, net

Total other income

Income before income taxes

528,528 341,052 543,508

(20,064) (16,151) (26,069)

508,464 324,901 517,439

Net income attributable to non-controlling interests in consolidated funds

Net income attributable to non-controlling interests in consolidated subsidiaries

Net income attributable to Oaktree Asset Management Operating Group

$ 488,504 $ 320,070 $ 356,453

Please see accompanying notes to combined and consolidated financial statements.

OAKTREE ASSET MANAGEMENT OPERATING GROUP

COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31

$ 508,464 $ 324,901 $ 517,439

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments

Fee revenues of equity method investments 1,458 1,313 1,214

Incentive distributions ( 560 ) ( 424 ) ( 378 )

Carried interest allocations (a)

( 209 ) ( 16 ) ( 399 )

Other comprehensive income (loss), net of tax

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

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

Other revenues (b)

( 264 ) ( 232 ) ( 194 )

Total comprehensive income

Comprehensive income attributable to non-controlling interests in consolidated funds

Comprehensive income attributable to non-controlling interests in consolidated subsidiaries

Comprehensive income attributable to Oaktree Asset Management Operating Group unitholders

Costs recovered from affiliates (c)

( 298 ) ( 218 ) ( 156 )

Please see accompanying notes to combined and consolidated financial statements.

OAKTREE ASSET MANAGEMENT OPERATING GROUP

COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS

Total Segment Revenues $ 4,815 $ 4,260 $ 3,977

(a) This adjustment removes the impact of both unrealized and realized carried interest allocations.

(b) This adjustment removes other revenues earned that are non-cash in nature, which include certain cost recoveries and reimbursements from affiliates.

Segment Expenses

Segment Expenses reflect direct costs associated with earning Segment Revenues, which include compensation and benefits, facilities, technology, professional fees and travel and other operating expenses.

Expenses such as depreciation and amortization, taxes, interest expense, mark-to-market gains (losses), transaction related costs, non-recurring gains (losses), deferred compensation, and expenses of consolidated funds are not reflective of segment performance and are therefore excluded from Segment Expenses.

In addition, Segment Expenses include segment related expenditures of Oaktree on a 100% basis.

See below for our reconciliation of total expenses as presented on the consolidated statements of operations to Segment Expenses.

FOR THE YEARS ENDED DECEMBER 31,

Operating activities

$ 508,464 $ 324,901 $ 517,439

Adjustments to reconcile net income to net cash used in operating activities:

Carried interest allocation, performance related revenue

(393,512) (169,398) (220,797)

Performance related compensation, net recognized performance related compensation

46,521 36,145 32,276

Investment income

(68,004) (48,569) (60,581)

Depreciation and amortization

22,114 20,850 20,900

Equity-based compensation

25,494 23,754 36,578

Net realized and unrealized (gain) loss from consolidated funds’ investments

39,912 145,856 (3,469)

Accretion of original issue and market discount of consolidated funds’ investments, net

(24,136) (36,864) (15,187)

Income distributions from corporate investments in funds and companies

279,961 205,129 271,072

Other non-cash items

Cash flows due to changes in operating assets and liabilities:

Decrease in deferred tax assets

Decrease (increase) in management fees receivable 80 (11,832) (12,406)

Increase in incentive income receivable (72,474) (36,007) (52,588)

Decrease (increase) in other assets

(7,908) (33,254) 14,171

Increase (decrease) in net due to affiliates

198,651 31,926 (149,481)

Increase in accrued compensation expense

116,612 86,123 76,727

Decrease in accounts payable, accrued expenses and other liabilities

(12,112) (15,474) (7,836)

Cash flows due to changes in operating assets and liabilities of consolidated funds

Decrease (increase) in dividends and interest receivable

6,132 (31,561) (21,339)

Decrease in due from brokers

Decrease (increase) in receivables for securities sold

(18,419) (30,985) 164,265

Decrease (increase) in other assets

(1,642) 3,151 (6,189)

Increase (decrease) in accounts payable, accrued expenses and other liabilities

(6,145) 38,969 29,328

Increase (decrease) in payables for securities purchased

49,776 87,921 (499,715)

Purchases of securities

(MILLIONS) 2025 2024 2023

Total Expenses $ 2,044 $ 1,680 $ 1,546

Expenses of equity method investments (a)

Costs recovered from affiliates (b)

( 298 ) ( 218 ) ( 156 )

Proceeds from maturities and sales of securities

Total carried interest allocation compensation (c)

( 146 ) ( 93 ) ( 86 )

Net cash provided (used in) by operating activities

Cash flows from investing activities

Purchases of U.S.

Treasury and other securities

Proceeds from maturities and sales of U.S.

Treasury and other securities

Corporate investments in funds and companies

Distributions and proceeds from corporate investments in funds and companies

Purchases of fixed assets

Net cash provided by investing activities

Interest expense ( 87 ) ( 22 ) ( 14 )

Other costs (d)

( 72 ) ( 103 ) ( 105 )

Please see accompanying notes to combined and consolidated financial statements.

OAKTREE ASSET MANAGEMENT OPERATING GROUP

COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)

Interest expense of consolidated funds ( 28 ) — —

Total Segment Expenses $ 2,319 $ 2,124 $ 2,000

(a) This adjustment adds expenses associated with Segment Revenues of equity method investments.

(b) This adjustment removes the impact of compensation costs that will be borne by affiliates.

(d) This adjustment removes the impact of depreciation and amortization and certain capital depreciation costs recharged from BAM's affiliates as well as the impact of non-asset management costs related to non-recurring costs not core to the asset management business.

Total Segment Expenses is comprised of the following major categories:

FOR THE YEARS ENDED DECEMBER 31,

Cash flows from financing activities

Capital contributions

$ — $ — $ 50,000

Distributions to unitholders

Proceeds from issuance of debt obligations

Payment of debt issuance costs

Repayment of debt obligations

Cash flows from financing activities of consolidated funds

Contributions from non-controlling interests

Distributions to non-controlling interests

Proceeds from debt obligations issued by CLOs

Payment of debt issuance costs

Repayment on debt obligations issued by CLOs

Borrowings on credit facilities

Repayments on credit facilities

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash

Net increase (decrease) in cash and cash-equivalents

Initial consolidation (deconsolidation) of funds

Cash and cash-equivalents, beginning balance

Cash and cash-equivalents, ending balance

$ 797,940 $ 761,900 $ 909,623

Supplemental cash flow disclosures:

Cash paid for interest

$ 442,443 $ 523,570 $ 218,952

Cash paid for income taxes

14,649 16,862

Supplemental disclosure of non-cash activities:

Net assets related to the initial consolidation of funds

Net assets related to the deconsolidation of funds

Reconciliation of cash and cash equivalents

Cash and cash-equivalents – Oaktree

Cash and cash-equivalents – Oaktree restricted cash

Cash and cash-equivalents – Consolidated funds

Total cash and cash-equivalents

$ 797,940 $ 761,900 $ 909,623

Please see accompanying notes to combined and consolidated financial statements.

OAKTREE ASSET MANAGEMENT OPERATING GROUP

COMBINED AND CONSOLIDATED STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL

YEAR ENDED DECEMBER 31, 2022

Unitholders’ Capital

Accumulated Other Comprehensive Loss

Non-controlling Interests in Consolidated Subsidiaries

Total Unitholders’ Capital

Unitholders’ capital beginning of period

$ 996,497 $ 1,009 $ — $ 997,506

Activity for the period:

Capital contributions

50,000 — — 50,000

Distributions declared

(176,993) — (1,377) (178,370)

Capital increase related to equity-based compensation expense

36,578 — — 36,578

356,453 — 1,377 357,830

Foreign currency translation adjustment and other

(10,063) (8,357) — (18,420)

Unitholders’ capital end of period

$ 1,252,472 $ (7,348) $ — $ 1,245,124

YEAR ENDED DECEMBER 31, 2023

Unitholders’ capital beginning of period

$ 1,252,472 $ (7,348) $ — $ 1,245,124

Activity for the period:

Distributions declared

(292,636) — — (292,636)

Capital increase related to equity-based compensation expense

23,754 — — 23,754

320,070 — — 320,070

Foreign currency translation adjustment and other

(11,164) 12,536 — 1,372

Unitholders’ capital end of period

$ 1,292,496 $ 5,188 $ — $ 1,297,684

YEAR ENDED DECEMBER 31, 2024

Unitholders’ capital beginning of period

$ 1,292,496 $ 5,188 $ — $ 1,297,684

Activity for the period:

Distributions declared

(289,841) — — (289,841)

Capital increase related to equity-based compensation expense

25,494 — — 25,494

488,504 — — 488,504

Foreign currency translation adjustment and other

(859) (7,401) — (8,260)

Unitholders’ capital end of period

$ 1,515,794 $ (2,213) $ — $ 1,513,581

Please see accompanying notes to combined and consolidated financial statements.

OAKTREE ASSET MANAGEMENT OPERATING GROUP

NOTES TO THE COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 2024, 2023, and 2022

ORGANIZATION AND BASIS OF PRESENTATION

Oaktree is a leader among global investment managers specializing in alternative investments.

Oaktree emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, equity, and real estate.

Funds managed by Oaktree (the “Oaktree funds”) include commingled funds, separate accounts, collateralized loan obligation vehicles (“CLOs”) and business development companies (“BDCs”).

Commingled funds include open-end and closed-end limited partnerships in which Oaktree makes an investment and for which it serves as the general partner.

CLOs are structured finance vehicles in which Oaktree typically makes an investment and for which it serves as collateral manager.

The Oaktree business is conducted through a group of six operating entities collectively referred to as the “Oaktree Operating Group.” The accompanying combined and consolidated financial statements include the five operating entities that represent operations related to Brookfield Asset Management ULC (“Brookfield Asset Management Company”).

These entities, which are under common control by Oaktree Capital Group Holdings, L.P.

(“ OCGH”), include Oaktree Capital II, L.P.

(“Oaktree Capital II”), Oaktree Capital Management, L.P.

(“OCM”), Oaktree AIF Investments, L.P.

(“Oaktree AIF”), Oaktree Capital Management (Cayman) L.P.

(“OCM Cayman”) and Oaktree Investment Holdings, L.P.

(“Oaktree Investment Holdings) and their consolidated subsidiaries (herein collectively referred to as “Oaktree Asset Management Operating Group,” “Oaktree”, or the “Company”).

The Company’s current ownership and operational structure through December 31, 2024 were the results of (i) certain mergers with affiliates of Brookfield Corporation (“BN”) completed on September 30, 2019 (“Merger”) and a subsequent restructuring (“Restructuring”) completed on October 1, 2019 in connection with the Merger, and (ii) a subsequent restructuring (“2022 Restructuring”) completed on November 30, 2022 to facilitate the separation of Brookfield’s capital business and asset management business (collectively, the Mergers).

See audited consolidated financial statements included in Brookfield Oaktree Holdings, LLC’s (“BOH”) Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) for more information regarding the Merger and Restructuring.

See Item 1.01 of the Company’s Current Report on Form 8-K filed with the SEC on December 6, 2022 for more information about the 2022 Restructuring.

The interests in the Oaktree Asset Management Operating Group are referred to as the “Oaktree Asset Management Operating Group units.” An Oaktree Asset Management Operating Group unit is not a separate legal interest but represents one limited partnership interest in each of the Oaktree Asset Management Operating Group entities.

As of December 31, 2024, total outstanding Oaktree Asset Management Operating Group units was 160,195,444.

OCGH, which is owned by Oaktree’s senior executives, current and former employees, and certain other investors has a direct economic interest in each of the five Oaktree Asset Management Operating Group entities.

As of December 31, 2024, Brookfield Asset Management Company owned approximately 73% of the Company and the senior executives of the Company controlled 79% of the total combined voting power.

Brookfield Asset Management Company and Brookfield Corporation are collectively referred to as “Brookfield” .

Basis of Presentation

The accompanying combined and consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The combined and consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model.

Certain of the Oaktree funds consolidated by the Company are investment companies that follow a specialized basis of accounting established by GAAP.

All intercompany transactions and balances have been eliminated in combination and consolidation.

Use of Estimates

The preparation of the combined and consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the combined and consolidated financial statements, as well as the reported amounts of income and expenses during the period then ended.

Actual results could differ from these estimates.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Policies of the Company

Consolidation

The Company consolidates entities in which it has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model.

A limited partnership or similar entity is a variable interest entity (“VIE”) if the unaffiliated limited partners do not have substantive kick-out or participating rights.

Most of the Oaktree funds are VIEs because they have not granted unaffiliated limited partners substantive kick-out or participating rights.

The Company consolidates those VIEs in which it is the primary beneficiary.

An entity is deemed to be the primary beneficiary if it holds a controlling financial interest.

The consolidation guidance requires an analysis to determine (a) whether an entity in which the Company holds a variable interest is a VIE and (b) whether the Company’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance-based fees), would give it a controlling financial interest.

A decision maker’s fee arrangement is not considered a variable interest if (a) it is compensation for services provided, commensurate with the level of effort required to provide those services, and part of a compensation arrangement that includes only terms, conditions or amounts that are customarily present in arrangements for similar services negotiated at arm’s length (“at-market”), and (b) the decision maker does not hold any other variable interests that absorb more than an insignificant amount of the potential VIE’s expected residual returns.

The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date.

In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties.

The consolidation analysis can generally be performed qualitatively;

however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed.

Investments and redemptions (either by the Company, affiliates of the Company or third parties) or amendments to the governing documents of the respective Oaktree funds could affect an entity’s status as a VIE or the determination of the primary beneficiary.

The Company does not consolidate most of the Oaktree funds because it is not the primary beneficiary of those funds due to the fact that its fee arrangements are considered at-market and thus not deemed to be variable interests, and it does not hold any other interests in those funds that are considered to be more than insignificant.

Please see note 4 for more information regarding both consolidated and unconsolidated VIEs.

For entities that are not VIEs, consolidation is evaluated through a majority voting interest model.

“Consolidated funds” refers to Oaktree-managed funds and CLOs that the Company is required to consolidate.

When funds or CLOs are consolidated, the Company reflects the assets, liabilities, revenues, expenses and cash flows of the funds or CLOs on a gross basis, and the majority of the economic interests in those funds or CLOs, which are held by third-party investors, are reflected as non-controlling interests in consolidated funds or debt obligations of CLOs in the combined and consolidated financial statements.

All of the revenues earned by the Company as investment manager of the consolidated funds are eliminated in consolidation.

However, because the eliminated amounts are earned from and funded by third-party investors, the consolidation of a fund does not impact net income or loss attributable to the Company.

Certain entities in which the Company has the ability to exert significant influence, including unconsolidated Oaktree funds for which the Company acts as general partner, are accounted for under the equity method of accounting.

Non-controlling Redeemable Interests in Consolidated Funds

The Company records non-controlling interests to reflect the economic interests of the unaffiliated limited partners.

These interests are presented as non-controlling redeemable interests in consolidated funds within the combined and consolidated statements of financial condition, outside of the permanent capital section.

Limited partners in open-end and evergreen funds generally have the right to withdraw their capital, subject to the terms of the respective limited partnership agreements, over periods ranging from one month to three years.

While limited partners in consolidated closed-end funds generally have not been granted redemption rights, these limited partners do have withdrawal or redemption rights in certain limited circumstances that are beyond the control of the Company, such as instances in which retaining the limited partnership interest could cause the limited partner to violate a law, regulation or rule.

The allocation of net income or loss to non-controlling redeemable interests in consolidated funds is based on the relative ownership interests of the unaffiliated limited partners after the consideration of contractual arrangements that govern allocations of income or loss.

At the consolidated level, potential incentives are allocated to non-controlling redeemable interests in consolidated funds until such incentives become allocable to the Company under the substantive contractual terms of the limited partnership agreements of the funds.

Non-controlling Interests in Consolidated Subsidiaries

Non-controlling interests in consolidated subsidiaries reflect the portion of unitholders’ capital attributable to OCGH unitholders (“OCGH non-controlling interest”) and third parties.

All non-controlling interests in consolidated subsidiaries are attributed a share of income or loss in the respective consolidated subsidiary based on the relative economic interests of the OCGH unitholders or third parties after consideration of contractual arrangements that govern allocations of income or loss.

Fair Value of Financial Instruments

GAAP establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial instruments at fair value into three levels based on their market observability.

Market price observability is affected by a number of factors, such as the type of instrument and the characteristics specific to the instrument.

Financial instruments with readily available quoted prices from an active market or for which fair value can be measured based on actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value.

Financial assets and liabilities measured and reported at fair value are classified as follows:

• Level I – Quoted unadjusted prices for identical instruments in active markets to which the Company has access at the date of measurement.

The types of investments in Level I include exchange-traded equities, debt and derivatives with quoted prices.

• Level II – Quoted prices for similar instruments in active markets;

quoted prices for identical or similar instruments in markets that are not active;

and model-derived valuations in which all significant inputs are directly or indirectly observable.

Level II inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates.

The types of investments in Level II generally include corporate bonds and loans, government and agency securities, less liquid and restricted equity investments, over-the-counter traded derivatives, debt obligations of consolidated CLOs, and other investments where the fair value is based on observable inputs.

• Level III – Valuations for which one or more significant inputs are unobservable.

These inputs reflect the Company’s assessment of the assumptions that market participants use to value the investment based on the best available information.

Level III inputs include prices of quoted securities in markets for which there are few transactions, less public information exists or prices vary among brokered market makers.

The types of investments in Level III include non-publicly traded equity, debt, real estate and derivatives.

In some instances, the inputs used to value an instrument may fall into multiple levels of the fair-value hierarchy.

In such instances, the instrument’s level within the fair-value hierarchy is based on the lowest of the three levels (with Level III being the lowest) that is significant to the fair-value measurement.

The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument.

Transfers of assets into or out of each fair value hierarchy level as a result of changes in the observability of the inputs used in measuring fair value are accounted for as of the beginning of the reporting period.

Transfers resulting from a specific event, such as a reorganization or restructuring, are accounted for as of the date of the event that caused the transfer.

In the absence of observable market prices, the Company values Level III investments inclusive of the Company’s investments in unconsolidated Oaktree funds using valuation methodologies applied on a consistent basis.

The quarterly valuation process for Level III investments begins with each portfolio company, property or security being valued by the investment and/or valuation teams.

With the exception of open-end funds, all unquoted Level III investment values are reviewed and approved by (i) the Company’s valuation officer, who is independent of the investment teams, (ii) a designated investment professional of each strategy and (iii) for a substantial majority of unquoted Level III holdings as measured by market value, a valuation committee of the respective strategy.

For open-end funds, unquoted Level III investment values are reviewed and approved by the Company’s valuation officer.

For certain investments, the valuation process also includes a review by independent valuation parties, at least annually, to determine whether the fair values determined by management are reasonable.

Results of the valuation process are evaluated each quarter, including an assessment of whether the underlying calculations should be adjusted or recalibrated.

In connection with this process, the Company periodically evaluates changes in fair-value measurements for reasonableness, considering items such as industry trends, general economic and market conditions, and factors specific to the investment.

Certain assets are valued using prices obtained from pricing vendors or brokers.

The Company seeks to obtain prices from at least two pricing vendors for the subject or similar securities.

In cases where vendor pricing is not reflective of fair value, a secondary vendor is unavailable, or no vendor pricing is available, a comparison value made up of quotes for the subject or similar securities received from broker dealers may be used.

These investments may be classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions.

The Company evaluates the prices obtained from brokers or pricing vendors based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated.

The Company also performs back-testing of valuation information obtained from pricing vendors and brokers against actual prices received in transactions.

In addition to ongoing monitoring and back-testing, the Company performs due

diligence procedures surrounding pricing vendors to understand their methodology and controls to support their use in the valuation process.

Fair Value Option

The Company has elected the fair value option for the financial assets and financial liabilities of its consolidated CLOs.

The assets and liabilities of CLOs are primarily reflected within the investments, at fair value and within the debt obligations of CLOs line items in the combined and consolidated statements of financial condition.

The Company’s accounting for CLO assets is similar to its accounting for its funds with respect to both carrying investments held by CLOs at fair value and the valuation methods used to determine the fair value of those investments.

The fair value of CLO liabilities is measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services.

Realized gains or losses and changes in the fair value of CLO assets, respectively, are included in net realized gain on consolidated funds’ investments and net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations.

Interest income of CLOs is included in interest and dividend income, and interest expense and other expenses, respectively, are included in interest expense and consolidated fund expenses in the condensed consolidated statements of operations.

Changes in the fair value of a CLO’s financial liabilities in accordance with the CLO measurement guidance are included in net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations.

Please see notes 6 and 8 for more information.

Foreign Currency

The assets and liabilities of the Company’s foreign subsidiaries with non-U.S.

dollar functional currencies are translated at exchange rates prevailing at the end of each reporting period.

The results of foreign operations are translated at the weighted average exchange rate for each reporting period.

Translation adjustments are included in other comprehensive income (loss) within the combined and consolidated statements of financial condition until realized.

Gains and losses resulting from foreign-currency transactions are included in general and administrative expense.

Derivatives and Hedging

A derivative is a financial instrument whose value is derived from an underlying financial instrument or index, such as interest rates, equity securities, currencies, commodities or credit spreads.

Derivatives include futures, forwards, swaps or option contracts, and other financial instruments with similar characteristics.

Derivative contracts often involve future commitments to exchange interest payment streams or currencies based on a notional or contractual amount (e.g., interest-rate swaps, foreign-currency forwards or cross-currency swaps).

The Company enters into derivatives as part of its overall risk management strategy or to facilitate its investment management activities.

The Company manages its exposure to interest rate and foreign exchange market risks, when deemed appropriate, through the use of derivatives, including foreign currency forward and option contracts, interest-rate and cross currency swaps with financial counterparties.

Risks associated with fluctuations in interest rates and foreign-currency exchange rates in the normal course of business are addressed as part of the Company’s overall risk management strategy that may result in the use of derivatives to economically hedge or reduce these exposures.

From time to time, the Company may enter into (a) foreign-currency option and forward contracts to reduce earnings and cash-flow volatility associated with changes in foreign-currency exchange rates, and (b) interest-rate swaps to manage all or a portion of the interest-rate risk associated with its variable-rate borrowings.

As a result of the use of these or other derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill their contractual obligations.

The Company attempts to mitigate this counterparty risk by entering into derivative contracts only with major financial institutions that have investment-grade credit ratings.

Counterparty credit risk is evaluated in determining the fair value of derivatives.

The Company recognizes all derivatives as assets or liabilities in its combined and consolidated statements of financial condition at fair value.

In connection with its derivative activities, the Company generally enters into agreements subject to enforceable master netting arrangements that allow the Company to offset derivative assets and liabilities in the same currency by specific derivative type or, in the event of default by the counterparty, to offset derivative assets and liabilities with the same counterparty.

While these derivatives are eligible to be offset in accordance with applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on gross fair value in its combined and consolidated statements of financial condition.

When the Company enters into a derivative contract, it may or may not elect to designate the derivative as a hedging instrument and apply hedge accounting as part of its overall risk management strategy.

In other situations, when a derivative does not qualify for hedge accounting or when the derivative and the hedged item are both recorded in current-period earnings and thus deemed to be economic hedges, hedge accounting is not applied.

Freestanding derivatives are financial instruments that we enter into as part of our overall risk management strategy but do not utilize hedge accounting.

These financial instruments may include foreign-currency exchange contracts, interest-rate swaps and other derivative contracts.

The Company determines whether an arrangement contains a lease at inception.

A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration.

For identified leases, the Company determines whether it should be classified as an operating or finance lease.

Operating leases are recorded in the combined and consolidated statements of financial condition as separate line items:

right-of-use assets and operating lease liabilities.

Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

Right-of-use assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term.

The right-of-use asset amount also includes deferred rent liabilities and lease incentives.

The Company’s lease arrangements generally do not provide an implicit rate.

As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company may also include options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its right-of-use assets and liabilities.

Lease expense for operating leases is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately.

Please see note 11 for more information.

Cash and Cash-equivalents

Cash and cash-equivalents include demand deposit accounts, money market funds and other short-term investments with maturities of three months or less at the date of acquisition.

At December 31, 2024 and 2023, the Company had cash balances with financial institutions in excess of Federal Deposit Insurance Corporation insured limits.

The Company monitors the credit standing of these financial institutions.

Restricted cash consists of balances that are not readily available for the Company’s general operating needs, typically due to collateral, escrow, or legal requirements.

The Company presents restricted cash in Other Assets.

Treasury and Other Securities

Treasury and other securities include holdings of U.S.

Treasury bills, notes and bonds, time deposit securities, commercial paper and investment grade debt securities, including sovereign debt, domestic and international corporate fixed and floating rate debt, structured credit and debt issued or guaranteed by U.S.

government-sponsored entities with maturities greater than three months from the date of acquisition.

These securities are classified as trading and are recorded at fair value with changes in fair value included in investment income.

The interest income earned on the U.S.

Treasury and other securities is included in the interest and dividend income.

Corporate Investments

Corporate investments consist of investments in funds, including carried interest, companies in which the Company does not have a controlling financial interest and non-investment grade debt securities.

Investments for which the Company is deemed to exert significant influence are accounted for under the equity method of accounting and reflect Oaktree’s ownership interest in each fund or company.

In the case of investments for which the Company is not deemed to exert significant influence or control, the fair value option of accounting has been elected.

Investment income represents the Company’s pro-rata share of income or loss from these funds or companies, or the change in fair value of the investment, as applicable.

When we make an investment that qualifies for the equity method of accounting, there may be a difference in the purchase price of the investment and the proportional interest in the underlying equity in the net assets of the investee — often referred to as a basis difference.

The basis difference of $91.8 million on the Company’s investment in 17Capital Newco Limited is amortized against the Company’s equity earnings included in investment income.

We amortized $23.7 million and $25.0 million of the basis difference for the years ended December 31, 2024 and 2023, respectively.

Oaktree’s general partnership interests are generally illiquid.

While investments in funds reflect each respective fund’s holdings at fair value, equity-method investments in 17Capital Newco Limited, DoubleLine Capital LP and its affiliates (collectively, “DoubleLine”) and other companies are not adjusted to reflect the fair value of the underlying company.

The fair value of the underlying investments in Oaktree funds is based on the Company’s assessment, which takes into account expected cash flows, earnings multiples and/or comparisons to similar market transactions, among other factors.

Valuation adjustments reflecting consideration of credit quality, concentration risk, sales restrictions and other liquidity factors are integral to valuing these instruments.

Non-investment grade debt securities include domestic and international corporate fixed and floating rating debt and structured credit investments.

These securities are classified as trading and are recorded at fair value with changes in fair value included in investment income.

Revenue Recognition

The Company earns management fees, carried interest, and incentive fees from the investment advisory services it provides to its customers.

Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services.

The Company typically enters into contracts with

investment funds to provide investment management and administrative services.

These services are generally capable of being distinct and each is accounted for as separate performance obligations comprised of distinct service periods because the services are performed over time.

The Company determined that for accounting purposes, based on certain facts and circumstances specific to each investment fund structure, that either the investment fund or individual investors may be considered the customer with respect to commingled funds, while the individual investors are the customers with respect to separate account and fund-of-one vehicles.

In cases where the individual investors are determined to be the customer, placement fees may be capitalized as a cost to acquire a customer contract.

Capitalized placement fees are amortized over the life of the customer contract.

The Company receives management fees, carried interest, and incentive fees with respect to its investment management services, and it is reimbursed by the funds for expenses incurred or paid on behalf of the funds with respect to its investment advisory services and its administrative services.

The Company evaluates whether it is the principal (i.e., report as management fees on a gross basis) or agent (i.e., report as management fees on a net basis) with respect to each performance obligation and associated reimbursement arrangements.

The Company has elected to apply the variable consideration exemption for its fee arrangements with its customers.

Please see note 3 for more information on revenues.

Management Fees

Management fees are recognized over the period in which the investment management services are performed because customers simultaneously consume and receive benefits that are satisfied over time.

The contractual terms of management fees generally vary by fund structure.

For closed-end funds, the management fee rate is generally applied against committed capital, contributed capital, or cost basis during the fund’s investment period and the lesser of aggregate contributed capital or cost basis of assets in the liquidation period.

For closed-end funds that pay management fees based on committed capital, Oaktree may elect to delay the start of the fund’s investment period and thus its full management fees, in which case it earns management fees based on contributed capital, until the Company elects to start the fund’s investment period.

The Company’s right to receive management fees typically ends after 10 or 11 years from the start of the investment period, even if assets remain in the fund.

In the case of CLOs, the management fee is based on the aggregate par value of collateral assets and principal cash, as defined in the applicable CLO indentures, and a portion of the management fees is dependent on the sufficiency of the particular vehicle’s cash flow.

For open-end and evergreen funds, the management fee is generally based on the NAV of the fund.

For the BDCs, the management fee is based on gross assets (including assets acquired with leverage), net of cash or net assets.

In the case of certain open-end fund accounts, the Company has the potential to earn performance-based fees, typically in reference to a relevant benchmark index or hurdle rate, which are classified as management fees.

The Company also earns quarterly incentive fees on the investment income from certain evergreen funds, such as the BDCs and other fund accounts, which are generally recurring in nature and reflected as management fees.

The ultimate amount of management fees that will be earned over the life of the contract is subject to a large number and broad range of possible outcomes due to market volatility and other factors outside of Oaktree’s control.

As a result, the amount of revenue earned in any given period is generally determined at the end of each reporting period and relates to services performed during that period.

Included in this amount is a gross-up for reimbursable costs incurred on behalf of the Oaktree funds in which the Company has determined it is the principal within the principal and agent relationship of the related fund.

Such reimbursable costs are presented in compensation and benefits and general and administrative expenses.

Incentive fees

Incentive fees earned on the performance of certain fund structures are recognized based on the fund’s performance during the period, subject to the achievement of minimum return levels with the respective returns set out in each fund’s investment management agreement.

Incentives are typically subject to reversal until the end of a defined performance period, as these fees are affected by changes in the fair value of the assets under management or advisement over such performance period.

The Company recognizes incentive fees only when these amounts are realized and no longer subject to significant risk of reversal, which is typically at the end of a defined performance period and/or upon expiration of the associated clawback period (i.e., crystallization).

Carried interest allocation

Carried interest is earned from those arrangements where the Company has a general partner capital interest and is entitled to a disproportionate allocation of investment income (referred to hereafter as “carried interest”).

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.

The Company accounts for its general partner interests in capital allocation-based arrangements as financial instruments and records equity method income based on the proportionate share of the income of the investment fund, including carried interest, assuming the investment fund was liquidated as of each reporting date pursuant to each investment fund’s governing agreements.

Accordingly, carried interest allocations are not deemed to be within the scope of ASC 606.

Carried interest is allocated to the general partner based on cumulative fund performance to date, and where applicable, subject to a preferred return to the funds’ limited partners.

At the end of each reporting period, the Company calculates the carried interest that would be due to the Company for each investment 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.

As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as carried interest to reflect either (a) positive performance resulting in an increase in unrealized carried interest or (b) negative performance that would cause the amount due to the Company to be less than the amount previously recognized, resulting in a negative adjustment to unrealized carried interest.

The Company ceases to record negative unrealized carried interest once previously recognized unrealized carried interest for an investment fund have been fully reversed.

Unrealized carried interest reverses when carried interest is realized.

Total Compensation and Benefits

(MILLIONS) 2025 2024 2023

Total segment compensation and benefits $ 1,674 $ 1,570 $ 1,491

Total segment facilities, technology and professional fees 335 370 357

Total segment travel and other operating expenses 310 184 152

Total Segment Expenses $ 2,319 $ 2,124 $ 2,000

Segment Earnings

Segment Earnings are computed as Segment Revenues less Segment Expenses and are used to provide additional insight into the operating profitability of our asset management activities.

These earnings are recurring in nature and not based on future realization events.

The following tables present the financial data for the Company’s five segments for the years ended December 31, 2025, 2024 and 2023:

FOR THE YEAR ENDED DECEMBER 31, 2025

Infrastructure Renewable power and transition Private equity Real estate Credit Total Segments

Segment Revenues $ 967 $ 682 $ 450 $ 1,083 $ 1,633 $ 4,815

Segment Expenses

Compensation and benefits ( 255 ) ( 168 ) ( 244 ) ( 364 ) ( 643 ) ( 1,674 )

Compensation and benefits expense reflects all compensation-related items not directly related to incentive fees and carried interest allocation, investment income or equity-based compensation, and includes salaries, bonuses, compensation based on management fees or a definition of profits, employee benefits, payroll taxes, phantom equity awards, and long-term incentive plan.

Bonuses are generally accrued over the related service period.

Phantom equity awards represent liability-classified awards subject to vesting and remeasurement at the end of each reporting period.

The remeasurement is based on changes in the value of OCGH or OEP units, as applicable.

Equity-based Compensation

Equity-based compensation expense reflects the non-cash charge associated with grants of Converted OCGH units, OCGH units, Oaktree Equity Plan (“OEP” or the “Plan”) units, Oaktree Equity Units (“OEU”), deferred equity units and other performance-based units, and is calculated based on the grant-date fair value of the unit award.

Equity-based awards that do not require future service (i.e., awards vested at grant) are expensed immediately.

Equity-based awards that require future service are expensed on a straight-line basis over the requisite service period.

Cash-settled equity-based awards are classified as liabilities and are remeasured at the end of each reporting period.

With respect to forfeitures, the Company made an accounting policy election to account for forfeitures when they occur.

Accordingly, no forfeitures have been assumed in the calculation of compensation expense.

Performance Related Compensation

Performance related compensation expense primarily reflects compensation directly related to carried interest and incentive fees, which generally consists of percentage interests (sometimes referred to as “points”) that the Company grants to its investment professionals associated with the particular fund that generates the incentive fees and carried interest allocation, and secondarily, compensation directly related to investment income.

The Company has an obligation to pay a fixed percentage of the carried interest earned from a particular fund to specified investment professionals responsible for the management of the fund.

Performance related compensation is recognized in the same period that the related carried interests are recognized.

Performance related compensation can be reversed during periods when there is a reversal of carried interest that was previously recognized.

Performance related compensation payable represents the amounts payable to professionals who are entitled to a proportionate share of carried interest in one or more funds.

The liability is calculated based upon the change to realize and unrealized carried interest but not payable until the carried interest itself is realized.

Fixed assets consist of furniture and equipment, capitalized software, office leasehold improvements and a company-owned aircraft and are amortized over their estimated useful lives.

Depreciation and Amortization

Depreciation and amortization expense includes costs associated with the purchase of furniture and equipment, capitalized software, office leasehold improvements, corporate aircraft and acquired intangibles.

Furniture and equipment and capitalized software costs are depreciated using the straight-line method over the estimated useful life of the asset, generally three to five years beginning in the first full month after the asset is placed in service.

Leasehold improvements are amortized using the straight-line method over the shorter of the respective estimated useful life or the lease term.

The corporate aircraft is depreciated using the straight-line method over its estimated useful life of twenty years.

Acquired intangibles primarily relate to contractual rights and are amortized over their estimated useful lives on a straight-line basis, which range from seven to 25 years.

Goodwill and Intangibles

Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses.

Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth quarter of each fiscal year, or more frequently when events or circumstances indicate that impairment may have occurred.

The Company’s acquired identifiable intangible assets primarily relate to contractual rights to earn future management fees and incentive fee.

Finite-lived intangible assets are amortized over their estimated useful lives, which range from seven to 25 years, and are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable.

Other Income (Expense), Net

Other income (expense), net represents non-operating income or expense items.

The five limited partnerships of the Company are treated as partnerships for tax purposes, with the tax effects of its activities flowing through to the income tax returns of its unitholders.

Consequently, no provision for income taxes is made except for non-U.S.

and state and local income taxes incurred directly by the Company.

The Company recorded tax expense of $20.1 million, $16.2 million and $26.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Oaktree analyzes its tax filing positions for all open tax years in all of the non-U.S.

and state and local tax jurisdictions where it is required to file income tax returns.

If the Company determines that uncertainties in tax positions exist, a reserve is established.

Oaktree recognizes accrued interest and penalties related to uncertain tax positions within income tax expense in the consolidated and combined statements of operations.

As of December 31, 2024 and 2023, there is an income tax reserve balance of $3.4 million and $12.9 million.

When assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized.

In determining whether the deferred tax assets are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located.

The deferred tax asset recognized by the Company, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of those assets, will be recognized in future years by these taxable entities.

Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be realized in future periods.

In determining the realizability of this tax benefit, management considered numerous factors that will give rise to pre-tax income in future periods.

Among these are the historical and expected future book and tax basis pre-tax income of the Company and unrealized gains in the Company’s assets at the determination date.

Based on these and other factors, the Company determined that, as of December 31, 2024, all deferred tax assets were more likely than not to be realized in future periods.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates.

In the normal course of business, the Company is subject to examination by federal, state, local and non-U.S.

tax regulators.

With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for the years before 2021.

Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any current audit will have a material adverse effect on the Company’s consolidated and combined financial statements.

Tax authorities currently are examining certain income tax returns of Oaktree, with a portion of these examinations at an advanced stage.

Over the next four quarters through December 31, 2025, the Company believes that it is possible that one outcome of these current examinations may be the settlement of up to approximately $12.1 million of previously accrued income taxes.

The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to its tax examinations and that any settlements related thereto will not have a material adverse effect on the Company’s financial position or results of operations;

however, there can be no assurances as to the ultimate outcomes.

Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities.

Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties.

The Company reviews its tax positions quarterly and adjusts its tax balances as new information becomes available.

The Oaktree funds are generally not subject to U.S.

federal and state income taxes and, consequently, no income tax provision has been made in the accompanying combined and consolidated financial statements because individual partners are responsible for their proportionate share of the taxable income.

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting unitholders’ capital that are excluded from net income (loss).

Other gains and losses result from foreign-currency translation adjustments, net of tax.

Accounting Policies of Consolidated Funds

Investment Transactions and Income Recognition

The consolidated funds record investment transactions at cost on trade date for publicly-traded securities or when they have an enforceable right to acquire the security, which is generally on the closing date if not publicly traded.

Realized gains and losses on investments are recorded on a specific-identification basis.

The consolidated funds record dividend income on the ex-dividend date

and interest income on an accrual basis, unless the related investment is in default or if collection of the income is otherwise considered doubtful.

The consolidated funds may hold investments that provide for interest payable in-kind rather than in cash, in which case the related income is recorded at its estimated net realizable amount.

The consolidated funds may invest in operating entities that are treated as partnerships for U.S.

federal income tax purposes which may give rise to unrelated business taxable income or income effectively connected with a U.S.

trade or business.

In such situations, the consolidated funds permit certain investors to elect to participate in these investments through a “blocker structure” using entities that are treated as corporations for U.S.

federal income tax purposes and are generally subject to U.S.

federal, state and local taxes.

The consolidated funds withhold blocker expenses and tax payments from electing limited partners, which are treated as deemed distributions to such limited partners pursuant to the terms of the respective limited partnership agreement.

Foreign Currency

Investments denominated in non-U.S.

currencies are recorded in the combined and consolidated financial statements after translation into U.S.

dollars utilizing rates of exchange on the last business day of the period.

Interest and dividend income is recorded net of foreign withholding taxes and calculated using the exchange rate in effect when the income is recognized.

The effect of changes in exchange rates on assets and liabilities, income, and realized gains or losses is included as part of net realized gain (loss) on consolidated funds’ investments and net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations.

Cash and Cash-equivalents

Cash and cash-equivalents held at the consolidated funds represent cash that, although not legally restricted, is not available to support the general liquidity needs of the Company as the use of such amounts is generally limited to the investment activities of the consolidated funds.

Cash-equivalents, a Level I valuation, include highly liquid investments such as money market funds, whose carrying value approximates fair value due to its short-term nature.

Receivable for Investments Sold

Receivables for investments sold by the consolidated funds are recorded at net realizable value.

Changes in net realizable value are reflected within net change in unrealized appreciation (depreciation) on consolidated funds’ investments and realizations are reflected within net realized gain on consolidated funds’ investments in the consolidated statements of operations.

Investments, at Fair Value

The consolidated funds include investment limited partnerships and CLOs that reflect their investments, including majority-owned and controlled investments, at fair value.

The Company has retained the specialized investment company accounting guidance for investment limited partnerships with respect to consolidated investments and has elected the fair value option for the financial assets of CLOs.

Thus, the consolidated investments are reflected in the combined and consolidated statements of financial condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations.

Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price).

Non-publicly traded debt and equity securities and other securities or instruments for which reliable market quotations are not available are valued by management using valuation methodologies applied on a consistent basis.

These securities may initially be valued at the acquisition price as the best indicator of fair value.

The Company reviews the significant unobservable inputs, valuations of comparable investments and other similar transactions for investments valued at acquisition price to determine whether another valuation methodology should be utilized.

Subsequent valuations will depend on the facts and circumstances known as of the valuation date and the application of valuation methodologies as further described below under “—Non-publicly Traded Equity and Real Estate Investments.” The fair value may also be based on a pending transaction expected to close after the valuation date.

Exchange-traded Investments

Securities listed on one or more national securities exchanges are valued at their last reported sales price on the date of valuation.

If no sale occurred on the valuation date, the security is valued at the mean of the last “bid” and “ask” prices on the valuation date.

Securities that are not readily marketable due to legal restrictions that may limit or restrict transferability are generally valued at a discount from quoted market prices.

The discount would reflect the amount market participants would require due to the risk relating to the inability to access a public market for the security for the specified period and would vary depending on the nature and duration of the restriction and the perceived risk and volatility of the underlying securities.

Securities with longer duration restrictions or higher volatility are generally valued at a higher discount.

Such discounts are generally estimated based on put option models or an analysis of market studies.

Instances where the Company has applied discounts to quoted prices of restricted listed securities have

been infrequent.

The impact of such discounts is not material to the Company’s combined and consolidated statements of financial condition and results of operations for all periods presented.

Credit-oriented Investments (including Real Estate Loan Portfolios)

Investments in corporate and government debt which are not listed or admitted to trading on any securities exchange are valued at the mean of the last bid and ask prices on the valuation date based on quotations supplied by recognized quotation services or by reputable broker-dealers.

The market-yield approach is considered in the valuation of non-publicly traded debt securities, utilizing expected future cash flows and discounted using estimated current market rates.

Discounted cash-flow calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrower.

Consideration is also given to a borrower’s ability to meet principal and interest obligations;

this may include an evaluation of collateral and/or the underlying value of the borrower utilizing techniques described below under “—Non-publicly Traded Equity and Real Estate Investments.”

Non-publicly Traded Equity and Real Estate Investments

The fair value of equity and real estate investments is determined using a cost, market or income approach.

The cost approach is based on the current cost of reproducing a real estate investment less deterioration and functional and economic obsolescence.

The market approach utilizes valuations of comparable public companies and transactions, and generally seeks to establish the enterprise value of the portfolio company or investment property using a market-multiple methodology.

This approach takes into account the financial measure (such as EBITDA, adjusted EBITDA, free cash flow, net operating income, net income, book value or net asset value) believed to be most relevant for the given company or investment property.

Consideration also may be given to factors such as acquisition price of the security or investment property, historical and projected operational and financial results for the portfolio company, the strengths and weaknesses of the portfolio company or investment property relative to its comparable companies or properties, industry trends, general economic and market conditions, and others deemed relevant.

The income approach is typically a discounted cash-flow method that incorporates expected timing and level of cash flows.

It incorporates assumptions in determining growth rates, income and expense projections, discount and capitalization rates, capital structure, terminal values, and other factors.

The applicability and weight assigned to market and income approaches are determined based on the availability of reliable projections and comparable companies and transactions.

The valuation of securities may be impacted by expectations of investors’ receptiveness to a public offering of the securities, the size of the holding of the securities and any associated control, information with respect to transactions or offers for the securities (including the transaction pursuant to which the investment was made and the elapsed time from the date of the investment to the valuation date), and applicable restrictions on the transferability of the securities.

These valuation methodologies involve a significant degree of management judgment.

Accordingly, valuations by the Company do not necessarily represent the amounts that eventually may be realized from sales or other dispositions of investments.

Fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the consolidated financial statements.

Securities Sold Short

Securities sold short represent obligations of the consolidated funds to make a future delivery of a specific security and, correspondingly, create an obligation to purchase the security at prevailing market prices (or deliver the security, if owned by the consolidated funds) as of the delivery date.

As a result, these short sales create the risk that the funds’ obligations to satisfy the delivery requirement may exceed the amount recorded in the accompanying combined and consolidated statements of financial condition.

Securities sold short are recorded at fair value, with the resulting change in value reflected as a component of net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations.

When the securities are delivered, any gain or loss is included in net realized gain on consolidated funds’ investments.

The funds maintain cash deposits with prime brokers in order to cover their obligations on short sales.

These amounts are included in due from brokers in the combined and consolidated statements of financial condition.

The purchase price of a call option or a put option is recorded as an investment, which is carried at fair value.

If a purchased option expires, a loss in the amount of the cost of the option is realized.

When there is a closing sale transaction, a gain or loss is realized if the proceeds are greater or less than, respectively, the cost of the option.

When a call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid.

When a consolidated fund writes an option, the premium received is recorded as a liability and is subsequently adjusted to the current fair value of the option written.

If a written option expires, a gain is realized in the amount of the premium received.

The difference

between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or loss.

The writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option.

Options written are included in accounts payable, accrued expenses and other liabilities in the combined and consolidated statements of financial condition.

Total-return Swaps

A total-return swap is an agreement to exchange cash flows based on an underlying asset.

Pursuant to these agreements, a fund may deposit collateral with the counterparty and may pay a swap fee equal to a fixed percentage of the value of the underlying security (notional amount).

A fund earns interest on cash collateral held on account with the counterparty and may be required to deposit additional collateral equal to the unrealized appreciation or depreciation on the underlying asset.

Changes in the value of the swaps, which are recorded as unrealized gains or losses, are based on changes in the underlying value of the security.

All amounts exchanged with the swap counterparty representing capital appreciation or depreciation, dividend income and expense, items of interest income on short proceeds, borrowing costs on short sales, and commissions are recorded as realized gains or losses.

Dividend income and expense on the underlying assets are accrued as unrealized gains or losses on the ex-date.

Due From Brokers

Due from brokers represents cash owned by the consolidated funds and cash collateral on deposit with brokers and counterparties that are used as collateral for the consolidated funds’ securities and swaps.

Risks and Uncertainties

Certain consolidated funds invest primarily in the securities of entities that are undergoing, or are considered likely to undergo, reorganization, debt restructuring, liquidation or other extraordinary transactions.

Investments in such entities are considered speculative and involve substantial risk of principal loss.

Certain of the consolidated funds’ investments may also consist of securities that are thinly traded, securities and other assets for which no market exists, and securities which are restricted as to their transferability.

Additionally, investments are subject to concentration and industry risks, reflecting numerous factors, including political, regulatory or economic issues that could cause the investments and their markets to be relatively illiquid and their prices relatively volatile.

Investments denominated in non-U.S.

currencies or involving non-U.S.

domiciled entities are subject to risks and special considerations not typically associated with U.S.

Such risks may include, but are not limited to, investment and repatriation restrictions;

currency exchange-rate fluctuations;

adverse political, social and economic developments;

less liquidity;

smaller capital markets;

and certain local tax law considerations.

Credit risk is the potential loss that may be incurred from the failure of a counterparty or an issuer to make payments according to the terms of a contract.

Some consolidated funds are subject to additional credit risk due to strategies of investing in debt of financially distressed issuers or derivatives, as well as involvement in privately-negotiated structured notes and structured-credit transactions.

Counterparties include custodian banks, major brokerage houses and their affiliates.

The Company monitors the creditworthiness of the financial institutions with which it conducts business.

Bank debt has exposure to certain types of risk, including interest rate, market, and the potential non-payment of principal and interest as a result of default or bankruptcy of the issuer.

Loans are generally subject to prepayment risk, which will affect the maturity of such loans.

The consolidated funds may enter into bank debt participation agreements through contractual relationships with a third-party intermediary, causing the consolidated funds to assume the credit risk of both the borrower and the intermediary.

Certain consolidated funds may invest in real property and real estate-related investments, including commercial mortgage-backed securities (“CMBS”) and real estate loans, that entail substantial inherent risks.

There can be no assurance that such investments will increase in value or that significant losses will not be incurred.

CMBS are subject to a number of risks, including credit, interest rate, prepayment and market.

These risks can be affected by a number of factors, including general economic conditions, particularly those in the area where the related mortgaged properties are located, the level of the borrowers’ equity in the mortgaged properties, and the relative timing and rate of delinquencies and prepayments of mortgage loans bearing a higher rate of interest.

Real estate loans include residential or commercial loans that are non-performing at the time of their acquisition or that become non-performing following their acquisition.

Non-performing real estate loans may require a substantial amount of workout negotiations or restructuring, which may entail, among other things, a substantial reduction in the interest rate and/or write-down of the principal balance.

Moreover, foreclosure on collateral securing one or more real estate loans held by the consolidated funds may be necessary, which may be lengthy and expensive.

Residential loans are typically subject to risks associated with the value of the underlying properties, which may be affected by a number of factors including general economic conditions, mortgage qualification standards, local market conditions such as employment levels, the supply of homes, and the safety, convenience and attractiveness of the properties and neighborhoods.

Commercial loans are typically subject to risks associated with the ability of the borrower to repay, which may be impacted by general economic conditions, as well as borrower-specific factors including the quality of management, the ability to generate sufficient income to make scheduled principal and interest payments, or the ability to obtain alternative financing to repay the loan.

Certain consolidated funds hold over-the-counter derivatives that may allow counterparties to terminate derivative contracts prior to maturity under certain circumstances, thereby resulting in an accelerated payment of any net liability owed to the counterparty.

Recent Accounting Developments

In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which provides temporary optional expedients and exceptions to the U.S.

GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates.

The guidance is effective upon issuance and generally may be elected over time through December 31, 2024.

The Company did not adopt any of the optional expedients or exceptions.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which enhances existing annual income tax disclosures, primarily disaggregation of:

(i) effective tax rate reconciliation using both percentages and amounts into specific categories, with further disaggregation by nature and/or jurisdiction of certain categories that meet the threshold of 5% of expected tax;

and (ii) income taxes paid (net of refunds received) between federal, state/local and foreign, with further disaggregation by jurisdiction if 5% or more of total income taxes paid (net of refunds received).

The ASU also eliminates existing disclosures related to:

(a) reasonably possible significant changes in total amount of unrecognized tax benefits within 12 months of reporting date;

and (b) cumulative amount of each type of temporary difference for which deferred tax liability has not been recognized (due to exception to recognizing deferred taxes related to subsidiaries and corporate joint ventures).

This ASU is effective January 1, 2026, with early adoption permitted in the interim or annual periods.

Transition is prospective with the option to apply retrospective application.

The Company will adopt the ASU on a prospective basis and does not expect this new guidance to have a material impact on its annual income tax disclosures.

The Company provides investment management services to funds and separate accounts.

The Company earns revenues from the management fees, incentive fees, and carried interest allocations generated by the funds that it manages.

Revenues are affected by economic factors related to the asset class composition of the holdings and the contractual terms such as the basis for calculating the management fees and investors’ ability to redeem.

Revenues by fund structure are set forth below.

Year Ended December 31

2024 2023 2022

Management Fees

Closed-end $ 787,355 $ 738,706 $ 762,052

Open-end 160,448 147,035 139,440

Evergreen 223,008 205,711 164,744

Total $ 1,170,811 $ 1,091,452 $ 1,066,236

Incentive fees and carried interest allocations

Incentive fee $ 22,259 $ 11,149 $ 211

Carried interest allocations 371,253 158,249 220,586

Total $ 393,512 $ 169,398 $ 220,797

Contract Balances

The Company received management fees monthly or quarterly in accordance with its contracts with customers.

I ncentive fees are received generally after all contributed capital and the preferred return on that capital have been distributed to the fund’s investors.

Contract assets relate to the Company’s conditional right to receive payment for its performance completed under the contract.

Receivables are recorded when the right to consideration becomes unconditional (i.e., only requires the passage of time).

Contract liabilities (i.e., deferred revenues) relate to payments received in advance of performance under the contract.

Contract liabilities are recognized as revenues when the Company provides investment management services.

In cases where the limited partners are deemed to be the customers, placement fees are capitalized as a cost to obtain a contract and amortized over the life of the contract.

Capitalized placement fees associated with the acquisition of customer contracts of $51.0 million and $49.9 million, as of December 31, 2024 and 2023, respectively, are included in other assets.

For the years ended December 31, 2024, 2023, and 2022, amortization of capitalized placement fees were $11.1 million, $7.3 million, and $4.0 million, respectively.

The table below sets forth contract balances for the periods indicated:

As of December 31

Receivables $ 118,070 $ 111,715

Contract assets (1) .

189,680 316,335

Contract liabilities (2)

(37,075) (34,097)

(1) The changes in the balances primarily relate to accruals, net of payments received.

(2) Revenue recognized for the year ended December 31, 2024 and 2023 from amounts included in the contract liability balance were $6.3 million and $5 million, respectively.

VARIABLE INTEREST ENTITIES

The Company consolidates VIEs for which it is the primary beneficiary.

VIEs include funds managed by Oaktree and CLOs for which Oaktree acts as collateral manager.

The purpose of these VIEs is to provide investment opportunities for investors in exchange for management fees and, in certain cases, performance-based fees.

While the investment strategies of the funds and CLOs differ by product, in general the fundamental risks of the funds and CLOs have similar characteristics, including loss of invested capital and reduction or absence of management and performance-based fees.

As general partner or collateral manager, respectively, Oaktree generally considers itself the sponsor of the applicable fund or CLO.

The Company does not provide performance guarantees and, other than capital commitments, has no financial obligation to provide funding to VIEs.

Consolidated VIEs

As of December 31, 2024, the Company consolidated 25 VIEs for which it was the primary beneficiary, including 7 funds managed by Oaktree and 18 CLOs for which Oaktree served as collateral manager.

As of December 31, 2023, the Company consolidated 31 VIEs, including 9 funds managed by Oaktree and 22 CLOs for which Oaktree served as collateral manager.

As of December 31, 2024, the assets and liabilities of the 25 consolidated VIEs representing funds and CLOs amounted to $9.0 billion and $7.9 billion, respectively.

As of December 31, 2023, the assets and liabilities of the 31 consolidated VIEs representing funds and CLOs amounted to $12.0 billion and $10.6 billion, respectively.

The assets of these consolidated VIEs primarily consisted of investments in debt and equity securities, while their liabilities primarily represented debt obligations issued by CLOs.

The assets of these VIEs may be used only to settle obligations of the same VIE.

In addition, there is no recourse to the Company for the VIEs’ liabilities.

In exchange for managing either the funds or CLOs collateral, the Company typically earns management fees and may earn performance fees, all of which are eliminated in consolidation.

As of December 31, 2024 and 2023, the Company’s investments in consolidated VIEs had a carrying value of $970.0 million, and $902.7 million, respectively, which represented its maximum risk of loss as of that date.

The Company’s investments in CLOs are generally subordinated to other interests in the CLOs and entitle the Company to receive a pro-rata portion of the residual cash flows, if any, from the CLOs.

Please see note 10 for more information on CLO debt obligations.

Unconsolidated VIEs

The Company holds variable interests in certain VIEs in the form of direct equity interests that are not consolidated because it is not the primary beneficiary, inasmuch as its fee arrangements are considered at-market and it does not hold interests in those entities that are considered more than insignificant.

The carrying value of the Company’s investments in VIEs that were not consolidated are shown below.

As of December 31

Corporate investments $ 1,816,214 $ 1,486,942

Due from affiliates 399,931 320,906

Due to affiliates (7,105) (7,659)

Maximum exposure to loss $ 2,209,040 $ 1,800,189

Corporate Investments

Corporate investments consisted of the following:

As of December 31

Corporate Investments 2024 2023

Equity-method investments:

Funds $ 720,400 $ 558,456

Companies 162,011 182,886

Other investments, at fair value 41,424 14,596

Accrued carried interest allocations 1,078,206 931,887

Total corporate investments $ 2,002,041 $ 1,687,825

The components of investment income are set forth below:

Year Ended December 31

Investment Income (Loss) 2024 2023 2022

Equity-method investments:

Funds $ 46,227 $ 23,055 $ 42,078

Companies 18,339 15,049 33,436

Other investments, at fair value 3,438 10,465 (14,933)

Total investment income $ 68,004 $ 48,569 $ 60,581

Equity-method Investments

The Company’s equity-method investments include its investments in Oaktree funds for which it serves as general partner, and other third-party funds and companies that are not consolidated, but for which the Company is deemed to exert significant influence.

The Company’s share of income or loss generated by these investments is recorded within investment income in the consolidated statements of operations.

The Company’s equity-method investments in Oaktree funds principally reflect the Company’s general partner interests in those funds, which typically does not exceed 2.5% in each fund.

The Oaktree funds are investment companies that follow a specialized basis of accounting established by GAAP.

Other Investments, at Fair Value

Other investments, at fair value primarily consist of:

(a) investments in certain Oaktree and non-Oaktree funds, (b) non-investment grade debt securities, and (c) derivatives utilized to hedge the Company’s exposure to investment income earned from its funds.

The following table summarizes net gains (losses) attributable to the Company’s other investments:

Year Ended December 31

2024 2023 2022

Realized gain $ 2,020 $ 3,900 $ 155

Net change in unrealized gain (loss) 1,418 6,565 (15,088)

Total gain (loss) $ 3,438 $ 10,465 $ (14,933)

Investments of Consolidated Funds

Investments, at Fair Value

Investments held and securities sold short by the consolidated funds are summarized below:

Fair Value as of December 31 Fair Value as a Percentage of Investments of Consolidated Funds as of December 31

Investments 2024 2023 2024 2023

United States:

Debt securities:

Communication services $ 293,228 $ 558,668 3.5 % 5.0 %

Consumer discretionary 375,592 938,144 4.5 8.4

Consumer staples 140,028 218,659 1.7 1.9

Energy 156,300 253,225 1.9 2.3

Financials 278,695 416,106 3.3 3.7

Health care 500,255 741,643 6.0 6.6

Industrials 656,325 1,239,922 7.8 11.1

Information technology 623,301 874,303 7.4 7.8

Materials 359,112 521,623 4.3 4.7

Real estate 51,998 72,507 0.6 0.6

Utilities 128,883 284,703 1.5 2.5

Other 1,170 3,290 0.0 —

Total debt securities (cost:

$3,775,471 and $6,309,652 as of December 31, 2024 and 2023, respectively) 3,564,887 6,122,793 42.5 54.6

Equity securities:

Communication services 205 7,420 0.0 0.1

Consumer discretionary 1,077 1,042 0.0 0.0

Energy 1,602 151 0.0 0.0

Financials 107 205 0.0 —

Health care 24,267 19,024 0.3 0.2

Industrials 398 298,611 0.0 2.7

Information technology 601 — 0.0 —

Materials 4,599 18,357 0.1 0.2

Real Estate — 15,651 0.0 0.1

Utilities 240 5 0.0 0.0

Total equity securities (cost:

$60,923 and $333,462 as of December 31, 2024 and 2023, respectively) 33,096 360,466 0.4 3.3

Real estate — 5,880 — 0.1

Total real estate securities (cost:

$24,453 and $24,453 as of December 31, 2024 and 2023, respectively) — 5,880 — 0.1

Fair Value as of December 31 Fair Value as a Percentage of Investments of Consolidated Funds as of December 31

Investments 2024 2023 2024 2023

Debt securities:

Communication services $ 636,326 $ 688,602 7.7 % 6.1 %

Consumer discretionary 820,295 891,591 9.8 7.9

Consumer staples 384,294 315,186 4.6 2.8

Energy 8,576 574 0.0 0.0

Financials 131,924 51,587 1.6 0.5

Health care 890,928 776,337 10.6 6.9

Industrials 907,796 789,548 10.8 7.0

Information technology 327,058 346,831 3.9 3.1

Materials 571,198 603,825 6.8 5.4

Real estate 69,962 58,910 0.8 0.5

Utilities 7,061 532 0.1 —

Total debt securities (cost:

$4,812,572 and $4,584,485 as of December 31, 2024 and 2023, respectively) 4,755,418 4,523,523 56.7 40.2

Equity securities:

Health care 4,297 470 0.1 0.0

Industrials 1,649 — 0.0 0.0

Total equity securities (cost:

$5,135 and $1,854 as of December 31, 2024 and 2023, respectively) 5,946 470 0.1 0.0

Asia and other:

Debt securities:

Communication services 148 2,453 0.0 0.0

Consumer discretionary 7,901 67,021 0.2 0.6

Consumer staples — 43,335 0.0 0.4

Energy 46 16,742 0.0 0.1

Financials 1,917 8,664 0.0 0.1

Health care 1,739 16,871 0.0 0.2

Industrials 2,240 22,276 0.0 0.2

Information technology — 14,399 0.0 0.1

Materials 8,356 10,762 0.1 0.1

Real estate 263 203 0.0 0.0

Utilities — 782 0.0 0.0

Total debt securities (cost:

$32,870 and $219,437 as of December 31, 2024 and 2023, respectively) 22,610 203,508 0.3 1.8

Fair Value as of December 31 Fair Value as a Percentage of Investments of Consolidated Funds as of December 31

Investments 2024 2023 2024 2023

Asia and other:

Equity securities:

Health care 7,570 — 0.1 —

Total equity securities (cost:

$6,850 and $0 as of December 31, 2024 and 2023, respectively) 7,570 — — —

Total debt securities 8,342,915 10,849,824 99.4 96.6

Total equity securities 46,612 360,936 0.6 3.3

Total real estate — 5,880 0.0 0.1

Total investments, at fair value $ 8,389,527 $ 11,216,640 100 % 100 %

As of December 31, 2024, the following issuers or investments had a fair value that exceeded 5% of Oaktree’s total consolidated net assets.

Principal Amount/ Number of Shares Investments Combined Fair Value

82,587 Ineos Styrolution Holding GmbH $ 87,781

81,649 Lorca Aggregator Ltd 85,348

84,410 Establishment Labs Holdings Inc 84,551

248,646 $ 257,680

As of December 31, 2023, the following issuers or investments had a fair value that exceeded 5% of Oaktree’s total consolidated net assets.

Principal Amount/ Number of Shares Investments Combined Fair Value

32 Watco Companies, LLC $ 94,034

85,517 Lorca Aggregator Ltd 93,627

85,549 $ 187,661

Net Gains (Losses) From Investment Activities of Consolidated Funds

Net gains (losses) from investment activities in the consolidated statements of operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments.

Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments.

Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

The following table summarizes net gains (losses) from investment activities:

Year Ended December 31

2024 2023 2022

Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments

Investments and other financial instruments $ (3,614) $ (1,672) $ (20,194) $ 4,227 $ (9,475) $ 152,857

CLO liabilities (1)

(46,803) 1,602 (24,173) (105,341) (33,252) (108,997)

Foreign-currency forward contracts (2)

(256) 11,407 (300) (345) 1,719 (1,640)

Options and futures (2)

(526) (92) 190 86 472 3

Commodity swaps (2)

42 — 11 (17) 1,788 (6)

Total $ (51,157) $ 11,245 $ (44,466) $ (101,390) $ (38,748) $ 42,217

(1) Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance.

Please see note 2 for more informatio n.

(2) Please see note 7 for additional information.

Fair Value of Financial Assets and Liabilities

The short-term nature of cash and cash-equivalents, receivables and accounts payable causes each of their carrying values to approximate fair value.

The fair value of short-term investments included in cash and cash-equivalents is a Level I valuation.

The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below.

Please see notes 10 and 15 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively.

As of December 31, 2024 As of December 31, 2023

Level I Level II Level III Total Level I Level II Level III Total

Treasury and other securities (1)

$ 197 $ 210,423 $ 952 $ 211,572 $ 41,843 $ 234,923 $ — $ 276,766

Corporate investments 796 40,426 — 41,222 863 13,941 5 14,809

Foreign-currency forward contracts included in corporate investments — 202 — 202 — — — —

Foreign-currency forward contracts included in other assets — 4,561 — 4,561 — 4,134 — 4,134

Total assets $ 993 $ 255,612 $ 952 $ 257,557 $ 42,706 $ 252,998 $ 5 $ 295,709

Foreign-currency forward contracts included in corporate investments $ — $ — $ — $ — $ — $ (213) $ — $ (213)

Foreign-currency forward contracts included in other liabilities — (4,029) — (4,029) — (2,404) — (2,404)

Total liabilities $ — $ (4,029) $ — $ (4,029) $ — $ (2,617) $ — $ (2,617)

Treasury securities the carrying value approximates fair value due to their short-term nature and are classified as Level I investments within the fair value hierarchy detailed above .

The table below sets forth a summary of changes in the fair value of Level III financial instruments:

Year Ended December 31

Corporate Investments Corporate Investments

Corporate Investments:

Beginning balance $ 5 $ 1,039

Contributions or additions 999 —

Transfers into Level II 2,790 2,034

Transfers out of Level III (2,950) (3,021)

Net gain included in earnings 108 (47)

Ending balance $ 952 $ 5

Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 108 $ (47)

(1) Transfers in to Level III and out of Level III are due to changes in the observability of inputs used in valuations.

The table below sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the Level III financial instruments:

Fair Value as of Significant Unobservable Input Weighted Average

Financial Instrument December 31, 2024 Valuation Technique Input Value

Credit-oriented investment $ 952 Recent market information Broker quotations N/A N/A

Fair Value of Financial Instruments Held By Consolidated Funds

The short-term nature of cash and cash-equivalents held at the consolidated funds causes their carrying value to approximate fair value.

The fair value of cash-equivalents is a Level I valuation.

Derivatives may relate to a mix of Level I, II or III investments, and therefore their fair-value hierarchy level may not correspond to the fair-value hierarchy level of the economically hedged investment.

The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level:

As of December 31, 2024 As of December 31, 2023

Level I Level II Level III Total Level I Level II Level III Total

Corporate debt – bank debt $ — $ 6,072,397 $ 1,364,785 $ 7,437,182 $ — $ 8,796,884 $ 1,013,214 $ 9,810,098

Corporate debt – all other — 880,331 17,379 897,710 — 961,505 78,221 1,039,726

Equities – common stock 1,305 310 25,061 26,676 1,072 75 344,943 346,090

Equities – preferred stock — — 19,936 19,936 — — 14,846 14,846

Real estate — — — — — — 5,880 5,880

CLO — — 8,023 8,023 — — — —

Total investments 1,305 6,953,038 1,435,184 8,389,527 1,072 9,758,464 1,457,104 11,216,640

Foreign-currency forward contracts — 10,444 — 10,444 — 26 — 26

Options and futures — — — — 89 — — 89

Total derivatives (1)

— 10,444 — 10,444 89 26 — 115

Total assets $ 1,305 $ 6,963,482 $ 1,435,184 $ 8,399,971 $ 1,161 $ 9,758,490 $ 1,457,104 $ 11,216,755

CLO debt obligations:

Senior secured notes $ — $ (6,391,010) $ — $ (6,391,010) $ — $ (9,170,914) $ — $ (9,170,914)

Subordinated notes — (260,560) — (260,560) — (304,661) — (304,661)

Total CLO debt obligations (2)

— (6,651,570) — (6,651,570) — (9,475,575) — (9,475,575)

Foreign-currency forward contracts — (501) — (501) — (1,630) — (1,630)

Options and futures (17) — — (17) — — — —

Total derivatives (3)

(17) (501) — (518) — (1,630) — (1,630)

Total liabilities $ (17) $ (6,652,071) $ — $ (6,652,088) $ — $ (9,477,205) $ — $ (9,477,205)

(1) Amounts are included in other assets under “assets of consolidated funds” in the combined and consolidated statements of financial condition.

(2) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets.

Please see notes 2 and 10 for more information.

(3) Amounts are included in accounts payable, accrued expenses and other liabilities under “liabilities of consolidated funds” in the combined and consolidated statements of financial condition.

The following tables set forth a summary of changes in the fair value of Level III investments:

Corporate Debt – Bank Debt Corporate Debt – All Other Equities – Common Stock Equities – Preferred Stock Real Estate CLO Total

Beginning balance $ 1,013,214 $ 78,221 $ 344,943 $ 14,846 $ 5,880 $ — $ 1,457,104

Deconsolidation of funds (45,020) (50,997) (307,865) (8,293) — — (412,175)

Initial consolidation of funds — — — — — 8,023 8,023

Transfers into Level III 36,417 2,333 789 9,253 — — 48,792

Transfers out of Level III (107,776) (1,056) (407) — — — (109,239)

Purchases 663,700 8,553 15,417 6,710 — — 694,380

Sales (198,189) (18,393) (9,334) (1,985) — — (227,901)

Realized gain (loss), net 7,798 278 (19,308) (409) — — (11,641)

Unrealized appreciation (depreciation), net (5,359) (1,560) 826 (186) (5,880) — (12,159)

Ending balance $ 1,364,785 $ 17,379 $ 25,061 $ 19,936 $ — $ 8,023 $ 1,435,184

Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (9,616) $ (3,174) $ (5,370) $ 488 $ — $ — $ (17,672)

Beginning balance $ 489,024 $ 72,918 $ 293,950 $ 43,552 $ — $ — $ 899,444

Deconsolidation of funds (32,444) (1) — — — — (32,445)

Initial consolidation of funds — — — — 22,260 — 22,260

Transfers into Level III 125,397 2,775 14,480 — — — 142,652

Transfers out of Level III (112,035) (1,906) (114) — — — (114,055)

Purchases 661,303 9,284 65,094 (20,584) — — 715,097

Sales (101,515) (526) (20,141) — — — (122,182)

Realized loss, net (15,492) 66 (11,517) (1,758) — — (28,701)

Unrealized depreciation, net (1,024) (4,389) 3,191 (6,364) (16,380) — (24,966)

Ending balance $ 1,013,214 $ 78,221 $ 344,943 $ 14,846 $ 5,880 $ — $ 1,457,104

Net change in unrealized depreciation attributable to assets still held at end of period $ (2,597) $ (4,683) $ (12,692) $ (7,915) $ — $ — $ (27,887)

Total realized and unrealized gains and losses recorded for Level III investments are included in net realized gain on consolidated funds’ investments or net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations.

Transfers out of Level III are generally attributable to certain investments that experienced a more significant level of market trading activity or completed an initial public offering during the respective period and thus were valued using observable inputs.

Transfers into Level III typically reflect either investments that experienced a less significant level of market trading activity during the period or portfolio companies that undertook restructurings or bankruptcy proceedings and thus were valued in the absence of observable inputs.

The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of December 31, 2024:

Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (1)(2)

Range Weighted Average (3)

Credit-oriented investments:

$ 85,026 Discounted cash flow (6)

Discount rate 6% – 19% 10%

11,183 Recent market information (5)

Quoted prices Not applicable Not applicable

526,814 Discounted cash flow (6)

Discount rate 8% – 24% 13%

2,820 Recent transaction price (4)

Quoted prices Not applicable Not applicable

6,318 Recent market information (5)

Quoted prices Not applicable Not applicable

2,626 Market approach (comparable companies) (7)

Earnings multiple (10)

11x – 11x 11x

178,760 Discounted cash flow (6)

Discount rate 6% – 17% 11%

7,661 Recent market information (5)

Quoted prices Not applicable Not applicable

706 Recent transaction price (4)

Quoted prices Not applicable Not applicable

Information Technology:

222,151 Discounted cash flow (6)

Discount rate 8% – 13% 10%

1,535 Market approach (comparable companies) (7)

Earnings multiple (10)

2.1x – 2.1x 2.1x

6,617 Discounted cash flow (6)

Discount rate 11% – 14% 12%

48,801 Recent transaction price (4)

Quoted prices Not applicable Not applicable

40,197 Market approach (comparable companies) (7)

Earnings multiple (10)

5.5x – 5.5x 5.5x

9,518 Recent market information (5)

Quoted prices Not applicable Not applicable

9,498 Market approach (comparable companies) (7)

Earnings multiple (10)

6.6x – 8.3x 6.7x

40,336 Recent transaction price (4)

Quoted prices Not applicable Not applicable

189,620 Discounted cash flow (6)

Discount rate 8% – 25% 13%

Equity investments:

1,648 Recent transaction price (4)

Quoted prices Not applicable Not applicable

107 Market approach (comparable companies) Multiple of underlying assets (9)

1.5x – 1.5x 1.5x

11,725 Market approach (comparable companies) (7)

Earnings multiple (10)

3.0x – 11.0x 7.4x

17,029 Discounted cash flow (6)

Discount rate 13% – 17% 15%

6,233 Black Scholes Not applicable Not applicable Not applicable

8,004 Market approach (comparable companies) (7)

Revenue multiple (8)

0.4x – 5.5x 3.5x

251 Recent market information (5)

Quoted prices Not applicable Not applicable

Total Level III investments

Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (1)(2)

Range Weighted Average (3)

Credit-oriented investments:

$ 77,625 Recent transaction price (4)

Quoted prices Not applicable Not applicable

27,481 Recent market information (5)

Quoted prices Not applicable Not applicable

408,003 Discounted cash flow (6)

Discount rate 11% – 23% 14%

13,410 Market approach (comparable companies) (7)

Revenue multiple (8)

0.3x – 0.3x 0.3x

Industrials 63,838 Discounted cash flow (6)

Discount rate 11% – 16% 12%

1,900 Market approach (comparable companies) (7)

Multiple of underlying assets (9)

1.2x – 1.2x 1.2x

45,042 Market approach (comparable companies) (7)

Earnings multiple (10)

10x – 10x 10x

21,558 Recent market information (5)

Quoted prices Not applicable Not applicable

71,490 Recent transaction price (4)

Quoted prices Not applicable Not applicable

107,616 Recent market information (5)

Quoted prices Not applicable Not applicable

62,942 Discounted cash flow (6)

Discount rate 11% – 18% 13%

2,682 Recent transaction price (4)

Quoted prices Not applicable Not applicable

25,785 Market approach (comparable companies) Earnings multiple (10)

2.3x – 8.2x 3.7x

1,450 Market approach (comparable companies) Multiple of underlying assets (9)

0.2x – 0.2x 0.2x

Information Technology:

8,476 Recent market information (5)

Quoted prices Not applicable Not applicable

152,137 Discounted cash flow (6)

Discount rate 11% – 15% 13%

Equity investments:

6,432 Recent transaction price (4)

Quoted prices Not applicable Not applicable

Discounted cash flow (6) / market approach (comparable companies)

Discount rate 8% – 12% 10%

305,685 Earnings multiple (9)

9.0x – 16x 13.0x

Price per stall (9)

24,167 Market approach (comparable companies) (7)

Earnings multiple (10)

2.3x – 9.3x 3.1x

6,703 Discounted cash flow (6)

Discount rate 15% – 17% 17%

214 Market approach (comparable companies) (7)

Revenue multiple (8)

0.2x – 0.2x 0.2x

16,588 Recent market information (5)

Quoted prices Not applicable Not applicable

Real estate-oriented:

5,880 Discounted cash flow (6)

Discount rate 9% – 9% 9%

Total Level III

investments $ 1,457,104

(1) The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments and real estate loan portfolios.

An increase (decrease) in the discount rate would result in a lower (higher) fair-value measurement.

(2) Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments.

An increase (decrease) in the multiple would result in a higher (lower) fair-value measurement.

(3) The weighted average is based on the fair value of the investments included in the range.

(4) Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the valuation date.

The fair value may also be based on a pending transaction expected to close after the valuation date.

(5) Certain investments are valued using vendor prices or broker quotes for the subject or similar securities.

Generally, investments valued in this manner are classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions.

(6) A discounted cash-flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments, real estate-oriented investments and real estate loan portfolios.

(7) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying.

(8) Revenue multiples are based on comparable public companies and transactions with comparable companies.

The Company typically applies the multiple to trailing twelve-months’ revenue.

However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant.

(9) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company.

The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors.

The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets.

(10) Earnings multiples are based on comparable public companies and transactions with comparable companies.

The Company typically utilizes multiples of EBITDA;

however, in certain cases the Company may use other earnings multiples believed to be most relevant to the investment.

The Company typically applies the multiple to trailing twelve-months’ EBITDA.

However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant.

A significant amount of judgment may be required when using unobservable inputs, including assessing the accuracy of source data and the results of pricing models.

The Company assesses the accuracy and reliability of the sources it uses to develop unobservable inputs.

These sources may include third-party vendors that the Company believes are reliable and commonly utilized by other marketplace participants.

As described in note 2, other factors beyond the unobservable inputs described above may have a significant impact on investment valuations.

During the year ended December 31, 2024, there were no changes in the valuation techniques for Level III securities.

During the year ended December 31, 2023, the valuation techniques for three credit-oriented investment were changed from discounted cash flow to market approach (comparable companies), one credit-oriented investment was changed from discounted cash flow to recent transaction price, one credit-oriented investment was changed from recent market information to discounted cash flow, one credit-oriented investment was changed from recent transaction price to discounted cash flow and one equity investment was changed from recent transaction price to market approach (comparable companies).

DERIVATIVES AND HEDGING

The fair value of freestanding derivatives consisted of the following:

Assets Liabilities

Notional Fair Value Notional Fair Value

As of December 31, 2024

Foreign-currency forward contracts $ 140,167 $ 4,763 $ (150,395) $ (4,029)

As of December 31, 2023

Foreign-currency forward contracts $ 168,935 $ 4,134 $ (120,136) $ (2,617)

Realized and unrealized gains and losses arising from freestanding derivatives were recorded in the consolidated statements of operations as follows:

Year Ended December 31

Facilities, technology and professional fees ( 51 ) ( 28 ) ( 57 ) ( 75 ) ( 124 ) ( 335 )

Travel and other operating expenses (a)

( 41 ) ( 35 ) ( 28 ) ( 41 ) ( 165 ) ( 310 )

General and administrative expense (1)

Segment Earnings $ 620 $ 451 $ 121 $ 603 $ 701 $ 2,496

FOR THE YEAR ENDED DECEMBER 31, 2024

Infrastructure Renewable power and transition Private equity Real estate Credit Total Segments

Segment Revenues $ 907 $ 513 $ 470 $ 968 $ 1,402 $ 4,260

Segment Expenses

Compensation and benefits ( 235 ) ( 132 ) ( 235 ) ( 340 ) ( 628 ) ( 1,570 )

Facilities, technology and professional fees ( 64 ) ( 26 ) ( 51 ) ( 93 ) ( 136 ) ( 370 )

Travel and other operating expenses (a)

( 7 ) ( 9 ) ( 23 ) ( 28 ) ( 117 ) ( 184 )

Total gain (loss) $ 13,076 $ 1,473 $ (1,469)

(1) To the extent that the Company’s freestanding derivatives are utilized to hedge its foreign-currency exposure to investment income and management fees earned from consolidated funds, the related hedged items are eliminated in consolidation, with the derivative impact (a positive number reflects a reduction in expenses) reflected in consolidated general and administrative expense.

There were no derivatives outstanding that were designated as hedging instruments for accounting purposes as of December 31, 2024 and 2023.

Derivatives Held By Consolidated Funds

Certain consolidated funds utilize derivatives in their ongoing investment operations.

These derivatives primarily consist of foreign-currency forward contracts and options utilized to manage currency risk, interest-rate swaps to hedge interest-rate risk, options and

futures used to hedge certain exposures for specific securities, and total-return swaps utilized mainly to obtain exposure to leveraged loans or to participate in foreign markets not readily accessible.

The primary risk exposure for options and futures is price, while the primary risk exposure for total-return swaps is credit.

None of the derivative instruments are accounted for as a hedging instrument utilizing hedge accounting.

The fair value of derivatives held by the consolidated funds consisted of the following:

Assets Liabilities

Notional Fair Value Notional Fair Value

As of December 31, 2024

Foreign-currency forward contracts $ 141,698 $ 10,444 $ (18,461) $ (501)

Options and futures — — (48,996) (17)

Total $ 141,698 $ 10,444 $ (67,457) $ (518)

As of December 31, 2023

Foreign-currency forward contracts $ 22,264 $ 26 $ (22,566) $ (1,630)

Options and futures 5,544 89 — —

Total $ 27,808 $ 115 $ (22,566) $ (1,630)

The impact of derivatives held by the consolidated funds in the consolidated statements of operations was as follows:

Year Ended December 31

Segment Earnings $ 601 $ 346 $ 161 $ 507 $ 521 $ 2,136

FOR THE YEAR ENDED DECEMBER 31, 2023

Infrastructure Renewable power and transition Private equity Real estate Credit Total Segments

Segment Revenues $ 950 $ 483 $ 475 $ 920 $ 1,149 $ 3,977

Segment Expenses

Compensation and benefits ( 223 ) ( 116 ) ( 229 ) ( 360 ) ( 563 ) ( 1,491 )

Facilities, technology and professional fees ( 69 ) ( 23 ) ( 49 ) ( 98 ) ( 118 ) ( 357 )

Travel and other operating expenses (a)

( 4 ) ( 8 ) ( 20 ) ( 34 ) ( 86 ) ( 152 )

Foreign-currency forward contracts $ (256) $ 11,407 $ (300) $ (345) $ 1,719 $ (1,640)

Options and futures (526) (92) 190 86 472 3

Commodity swaps 42 — 11 (17) 1,788 (6)

Total $ (740) $ 11,315 $ (99) $ (276) $ 3,979 $ (1,643)

Balance Sheet Offsetting

The Company recognizes all derivatives as assets or liabilities at fair value in its combined and consolidated statements of financial condition.

The table below sets forth the setoff rights and related arrangements associated with derivatives held by the Company.

The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the combined and consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance.

Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount

As of December 31, 2024 Derivative Assets (Liabilities) Cash Collateral Received (Pledged)

Derivative Assets:

Foreign-currency forward contracts $ 4,763 $ — $ — $ 4,763

Derivative assets of consolidated funds:

Foreign-currency forward contracts 10,444 — — 10,444

Subtotal 10,444 — — 10,444

Total $ 15,207 $ — $ — $ 15,207

Derivative Liabilities:

Foreign-currency forward contracts $ (4,029) $ — $ — $ (4,029)

Derivative liabilities of consolidated funds:

Foreign-currency forward contracts (501) — — (501)

Options and futures (17) — — (17)

Subtotal (518) — — (518)

Total $ (4,547) $ — $ — $ (4,547)

Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount

As of December 31, 2023 Derivative Assets (Liabilities) Cash Collateral Received (Pledged)

Derivative Assets:

Foreign-currency forward contracts $ 4,134 $ — $ — $ 4,134

Derivative assets of consolidated funds:

Foreign-currency forward contracts $ 26 $ — $ — $ 26

Options and futures $ 89 $ — $ — $ 89

Subtotal $ 115 $ — $ — $ 115

Total $ 4,249 $ — $ — $ 4,249

Derivative Liabilities:

Foreign-currency forward contracts $ (2,617) $ — $ — $ (2,617)

Derivative liabilities of consolidated funds:

Foreign-currency forward contracts (1,630) — — (1,630)

Subtotal (1,630) — — (1,630)

Total $ (4,247) $ — $ — $ (4,247)

Fixed assets primarily consist of furniture and equipment, capitalized software, office leasehold improvements and corporate aircraft.

The following table sets forth the Company’s fixed assets and accumulated depreciation:

As of December 31,

Furniture, equipment and capitalized software $ 44,402 $ 39,975

Leasehold improvements 103,090 99,289

Corporate aircraft 66,120 66,120

Other 4,890 5,070

Fixed assets 218,502 210,454

Accumulated depreciation (123,041) (112,328)

Fixed assets, net $ 95,461 $ 98,126

GOODWILL AND INTANGIBLES

Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses.

Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that impairment may have occurred.

Goodwill is included in other assets in the consolidated statements of financial position.

As of December 31, 2024, the Company determined there was no goodwill impairment.

The carrying value of goodwill was $50.8 million as of December 31, 2024 and 2023, and is included in other assets in the combined and consolidated statements of financial condition.

The following table summarizes the carrying value of intangible assets:

As of December 31,

Contractual rights $ 347,452 $ 347,452

Accumulated amortization (166,838) (156,684)

Intangible assets, net $ 180,614 $ 190,768

Amortization expense associated with the Company’s intangible assets was $10.2 million for the years ended December 31, 2024, 2023 and 2022.

Amortization of intangible assets held as of December 31, 2024 is estimated to be as follows:

Segment Earnings $ 654 $ 336 $ 177 $ 428 $ 382 $ 1,977

(a) Travel and other operating expenses include travel, sales commissions, insurance, marketing and conferences, and general and administrative costs;

none of which individually are 10% or more of total Segment Expenses.

See below for our reconciliation of income before taxes as presented on the consolidated statements of operations to Segment Earnings.

FOR THE YEARS ENDED DECEMBER 31,

(MILLIONS) 2025 2024 2023

Income before taxes $ 2,925 $ 2,546 $ 2,554

Depreciation and amortization (a)

Carried interest allocations, net of carried interest allocation compensation (b)

( 63 ) 77 ( 313 )

Thereafter 129,844

Total $ 180,614

DEBT OBLIGATIONS AND CREDIT FACILITIES

Oaktree had the following debt obligations outstanding:

As of December 31

Senior unsecured notes

$50,000, 3.91%, issued in September 2014, payable on September 3, 2024 $ — $ 50,000

$100,000, 4.01%, issued in September 2014, payable on September 3, 2026 100,000 100,000

$100,000, 4.21%, issued in September 2014, payable on September 3, 2029 100,000 100,000

$100,000, 3.69%, issued in July 2016, payable on July 12, 2031 100,000 100,000

$250,000, 3.78%, issued in December 2017, payable on December 18, 2032 250,000 250,000

$200,000, 3.64%, issued in July 2020, payable on July 22, 2030 200,000 200,000

$50,000, 3.84%, issued in July 2020, payable on July 22, 2035 50,000 50,000

$200,000, 3.06%, issued in November 2021, payable on January 12, 2037 200,000 200,000

Total remaining principal 1,000,000 1,050,000

Debt issuance costs (5,272) (5,559)

Debt obligations $ 994,728 $ 1,044,441

On May 19, 2020, the Company entered into a credit agreement with a subsidiary of BN that provides for a subordinated credit facility maturing on May 19, 2023.

The subordinated credit facility has a revolving loan commitment of $250 million and borrowings generally bear interest at a spread to either LIBOR or an alternative base rate.

Borrowings on the subordinated credit facility are subordinate to the outstanding debt obligations and borrowings on the primary credit facility of Oaktree.

On October 6, 2023, an amendment was signed to further extend the maturity date to October 6, 2028 and updated the interest rate to the secured overnight financing rate (“SOFR”) plus 1.6% or an alternative base rate plus 0.5%.

The amendment also provided that the maturity date will automatically extend annually in one-year increments until the lenders notify the borrowers of their intention to terminate the subordinated credit facility.

No amounts were outstanding on the subordinated credit facility as of December 31, 2024.

On October 4, 2024, OCM, Oaktree Capital I, Oaktree Capital II and Oaktree AIF (collectively, the “Borrowers”) entered into the Eighth Amendment to Credit Agreement, dated as of March 31, 2014, by and among the Borrowers, Wells Fargo Bank, National Association (“Wells Fargo”) and the other lenders party thereto.

The credit facility was amended to among other things, extend the maturity date of the Credit Agreement from December 15, 2027 to October 4, 2029 with the potential to extend the maturity for up to two additional years, and changed certain lenders who are party to the Credit Agreement.

Based on the current credit ratings of OCM, the interest rate on borrowings is the term SOFR reference rate plus 1.10% per annum and the commitment fee on the unused portions of the revolving credit facility is 0.10% per annum.

The term SOFR reference rate is determined by the tenor of the borrowings and set by the CME Group Benchmark Administration Limited (CBA).

The credit agreement contains customary financial covenants and restrictions, including ones regarding a maximum leverage ratio and a minimum required level of fee-generating assets under management (as defined in the credit agreement, as amended above).

As of December 31, 2024, the Borrowers had no outstanding borrowings under the revolving credit facility.

On October 14, 2021, OCM received commitments from certain accredited investors to purchase $200 million of senior unsecured notes that bear a 3.06% fixed rate of interest and a maturity of 2037.

The notes are guaranteed by Oaktree Capital I, Oaktree Capital II and Oaktree AIF, as co-obligors.

On November 4, 2021, OCM and the co-obligors entered into a note and guaranty agreement.

The offering closed on January 12, 2022 and OCM received proceeds of $200 million on the closing date.

As of December 31, 2024, future scheduled principal payments of debt obligations were as follows:

Thereafter 800,000

Total $ 1,000,000

The Borrowers were in compliance with all financial maintenance covenants associated with its senior unsecured notes and bank credit facility as of December 31, 2024 and 2023.

The fair value of the Company’s debt obligations, which are carried at amortized cost, is a Level III valuation that is estimated based on a discounted cash-flow calculation using estimated rates that would be offered to Oaktree for debt of similar terms and maturities.

The fair value of these debt obligations, gross of debt issuance costs, was $916.7 million and $965.5 million as of December 31, 2024 and 2023, respectively, utilizing average borrowing rates of 5.0%, respectively.

Oaktree Asset Management Operating Group Guaranty Agreements

On March 30, 2022, Oaktree Capital I entered into a note and guaranty agreement with certain accredited investors pursuant to which Oaktree Capital I agreed to issue and sell to such investors €50 million of its 2.20% Senior Notes, Series A, due 2032, €75 million of its 2.40% Senior Notes, Series B, due 2034, and €75 million of its 2.58% Senior Notes, Series C, due 2037.

These notes are senior unsecured obligations of Oaktree Capital I, and jointly and severally guaranteed by the Oaktree Asset Management Operating Group.

The offering closed on June 8, 2022, and Oaktree Capital I received proceeds of €200 million on the closing date.

These notes are senior unsecured obligations of Oaktree Capital I and jointly and severally guaranteed by OCM, Oaktree Capital II and Oaktree AIF, entities under the Oaktree Asset Management Operating Group, as co-obligors.

The outstanding principal and interest payments guaranteed by the Company will not be included in the Company’s financial statements unless an event of default occurs.

As of December 31,

Senior unsecured notes

€50,000, 2.20%, issued in June 2022, payable on June 8, 2032 $ 51,903 $ 55,233

€75,000, 2.40%, issued in June 2022, payable on June 8, 2034 77,854 82,849

€75,000, 2.58%, issued in June 2022, payable on June 8, 2037 77,854 82,849

Total remaining principal 207,611 220,931

Debt issuance costs (1,129) (1,249)

Total debt obligations, net $ 206,482 $ 219,682

Debt Obligations of the Consolidated Funds

The obligations of the consolidated funds are nonrecourse to the Company.

The consolidated funds had the following debt obligations outstanding:

Outstanding Amount as of December 31 Key terms as of December 31, 2024

Credit Agreement 2024 2023 Facility Capacity Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Commitment Fee Rate L/C Fee

Revolving credit facilities (1)

$ 35,155 $ 106,743 $153,358 6.84% 3.58 0.49% N/A

Secured borrowings (1)

756,855 409,805 824,715 10.87% 3.61 0.0% N/A

Total debt obligations 792,010 516,548

Debt issuance costs (750) (1,373)

Total debt obligations, net $ 791,260 $ 515,175

(1) The credit facility and secured borrowings capacity is calculated on a pro rata basis using fund commitments as of December 31, 2024.

As of December 31, 2024 and 2023, the consolidated funds had debt obligations with an aggregate outstanding principal balance of $792.0 million and $516.5 million, respectively.

Debt Obligations of CLOs

Debt obligations of CLOs represent amounts due to holders of debt securities issued by the CLOs, as well as term loans of CLOs that had not priced as of period end.

Outstanding debt obligations of CLOs were as follows:

As of December 31, 2024 As of December 31, 2023

Fair Value (1)

Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Fair Value (1)

Weighted Average Interest Rate Weighted Average Remaining Maturity (years)

Senior secured notes $ 6,391,010 5.65% 10.4 $ 9,170,914 6.67% 10.2

Subordinated notes (2)

260,560 N/A 10.3 304,661 N/A 10.2

Total CLO debt obligations $ 6,651,570 $ 9,475,575

(1) The fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services.

The fair value of the beneficial interests was calculated using a discounted cash flow model specific to each investment structure.

Please see notes 2 and 6 for more information, including the significant valuation inputs such as input range and weighted average rate.

(2) The subordinated notes do not have a contractual interest rate;

instead, they receive distributions from the excess cash flows generated by the CLO.

The following table set forth the significant valuation inputs, including the input range and weighted average rate utilized in determining the fair value of the Company’s CLO beneficial interests held at December 31, 2024:

Valuation Technique Significant Unobservable Input Low High Weighted Average Rate

Discounted cash flow (1)

Discount Rates 9.0% 22.0% 14.8%

Constant default rates 2.0% 2.0% 2.0%

Recovery rates 65.0% 65.0% 65.0%

Recent transaction price N/A N/A N/A N/A

N/A N/A N/A N/A

(1) The fair value of the Company’s CLO beneficial interests held at December 31, 2024 was calculated using a discounted cash flow model specific to each investment structure.

(2) The fair value of the Company’s CLO beneficial interest held at December 31, 2024 was valued at net asset value.

The debt obligations of CLOs are nonrecourse to the Company and are backed by the investments held by the respective CLO.

Assets of one CLO may not be used to satisfy the liabilities of another.

As of December 31, 2024 and 2023, the fair value of CLO assets was $7.3 billion and $10.4 billion, respectively, and consisted of cash, corporate loans, corporate bonds and other securities.

The Company has operating leases related to office space and certain equipment with remaining lease terms expiring within one year through 2031, some of which include options to extend the leases for up to five years and some of which include options to terminate the leases within one year.

As of December 31, 2024 and 2023, respectively, there were no finance leases outstanding.

The components of lease expense included in general and administrative expense were as follows:

Twelve months ended December 31, 2024 Twelve months ended December 31, 2023 Twelve months ended December 31, 2022

Operating lease cost $ 18,517 $ 17,419 $ 17,047

Sublease income (407) (351) (358)

Total lease cost $ 18,110 $ 17,068 $ 16,689

Supplemental cash flow information related to leases was as follows:

Twelve months ended December 31, 2024

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows used for operating leases $ 21,247

Weighted average remaining lease term for operating leases (in years) 4.87

Weighted average discount rate for operating leases 4.6 %

As of December 31, 2024, maturities of operating lease liabilities were as follows:

Other income and expenses, net of other costs and non-asset management related items (c)

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

Interest expense 87 22 14

Interest expense of consolidated funds 28 — —

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

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

Other revenues (d)

( 237 ) ( 232 ) ( 194 )

Thereafter 7,954

Total lease payments 93,060

imputed interest (11,406)

Total operating lease liabilities $ 81,654

NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS

The following table sets forth a summary of changes in the non-controlling redeemable interests in the consolidated funds.

Dividends reinvested and in-kind contributions or distributions are non-cash in nature and have been presented on a gross basis in the table below.

Year Ended December 31

Share of income from equity method investments (e)

( 402 ) ( 339 ) ( 167 )

Beginning balance $ 457,235 $ 466,020 $ 2,141,523

Initial consolidation of a fund — 23,790 —

Deconsolidation of funds (326,831) — (1,834,358)

Contributions 112,194 70,760 141,542

Distributions (113,326) (133,647) (139,901)

Net income 19,960 4,831 159,609

Change in distributions payable (126) (484) (5,213)

Foreign-currency translation and other 8,058 25,965 2,819

Ending balance $ 157,164 $ 457,235 $ 466,021

EQUITY-BASED AND OTHER DEFERRED COMPENSATION

Long-Term Incentive Plan Awards

In March 2020, the Company adopted the Oaktree Operating Group Long-Term Incentive Plan (the “LTIP”).

The LTIP provides for the granting of cash-based incentive awards to senior executives, directors, officers, partners, employees, consultants and advisors of the Company and its affiliates.

Awards may be denominated in U.S.

dollars or other currencies determined by the LTIP’s plan administrator.

The unvested value of each LTIP award adjusts over its vesting period to track the performance of a fund designated by the plan administrator or by the award recipient from investment options selected by the plan administrator.

Investment options may include funds managed by Company affiliates or by third parties.

Awards do not represent an actual interest in the funds whose performance they track.

Such fund investments are purely nominal and solely for the purpose of calculating the value of an award on each vesting or payment date.

Awards under the LTIP represent only a contractual right to receive a cash payment upon vesting from the Company or the affiliate that issued the award.

Awards tracking the performance of funds that make periodic distributions to their investors may provide for award recipients to receive corresponding payments from the Company or the affiliate issuing the award, with the remaining unvested value of the award reduced to reflect the amount of each such payment.

Each payment under an award is fully vested upon receipt.

Awards denominated in currencies other than U.S.

dollars which track the performance of U.S.

dollar-denominated funds are nominally converted into U.S.

dollars for performance tracking purposes, with amounts payable under the

awards converted back into the original currency at a market rate at the time of each vesting payment.

Certain recipients of awards denominated in currencies other than U.S.

dollars which track the performance of U.S.

dollar-denominated funds receive the option to hedge the value of their awards to a currency other than U.S.

All such currency hedges are calculated on a purely hypothetical basis and do not represent a right to participate in actual currency hedging contracts.

For the years ended December 31, 2024 and 2023, the Company granted LTIP awards valued at $111.8 million and $107.5 million, respectively, to employees, partners and directors of the Company and its subsidiaries, subject to annual vesting over a weighted average period of approximately 3.9 years and 4.2 years, respectively.

For the years ended December 31, 2024, 2023 and 2022, $2.3 million, $8.7 million and $12.6 million, respectively, of the LTIP awards were forfeited.

As of December 31, 2024, the Company expected to recognize compensation expense on its unvested LTIP awards of $176.7 million, subject to adjustment based on future performance, over a weighted average period of 3.1 years.

For the years ended December 31, 2024, 2023 and 2022, the Company recognized $122.7 million, $106.8 million and $72.9 million, respectively, of compensation expense related to the LTIP, which was included in compensation and benefits expense in the consolidated and combined statements of operations.

Equity-Based Compensation

In December 2011, BOH adopted the 2011 Oaktree Capital Group, LLC Equity Incentive Plan (the “2011 Plan”).

The 2011 Plan provides for the granting of options, unit appreciation rights, restricted unit awards, unit bonus awards, phantom equity awards or other unit-based awards to senior executives, directors, officers, certain employees, consultants, and advisors of the Company and its affiliates.

As of December 31, 2024, a maximum of 24,284,317 units have been authorized to be awarded pursuant to the 2011 Plan, and 21,563,682 units have been awarded under the 2011 Plan.

Each Class A and OCGH unit, when issued, represents an indirect interest in one Oaktree Operating Group unit.

Restated Exchange Agreement

At the closing of the Mergers, Oaktree entered into a Fourth Amended and Restated Exchange Agreement that will, among other things, allow limited partners of OCGH to exchange (“Exchanges”) certain vested limited partnership units of OCGH (“OCGH Units”) for cash, Brookfield Class A Shares, notes issued by a Brookfield subsidiary or equity interests in a subsidiary of OCGH that will entitle such limited partners to the proceeds from a note, or a combination of the foregoing.

Either of such notes will have a three-year maturity and will accrue interest at the then-current 5-year treasury note rate plus 3%.

Only Converted OCGH Units, OCGH Units issued and outstanding at the time of the closing of the Mergers, OCGH Units issued after the closing of the Mergers pursuant to agreements in effect on March 13, 2019, OCGH Units issuable upon vesting of certain phantom equity awards (“Phantom Units”) and other OCGH Units consented-to by Brookfield will be, when vested, eligible to participate in an Exchange.

The form of the consideration in an Exchange is generally at the discretion of Brookfield, subject to certain limitations.

On May 14, 2024, Oaktree entered into a Fifth Amended and Restated Exchange Agreement to, among other things, add Brookfield Asset Management Ltd.

(“BAM”) to the Restated Exchange Agreement, and allow Brookfield to elect and deliver the BAM Class A Shares as consideration for a portion of the Exchange.

In general, OCGH limited partners are entitled to provide an election notice to participate in an Exchange with respect to eligible vested OCGH Units and Converted OCGH Units during the first 60 calendar days of each year beginning January 1, 2022 (an “Open Period”).

Each Exchange is thereafter consummated within the first 155 days of such calendar year, subject to extension in certain circumstances.

Except as described below, each OCGH Unit is valued (i) by applying a 13.5x multiple to the trailing three-year average (or two-year average for Exchanges in 2022) of fee-related earnings less stock-based compensation at grant value and excluding depreciation and amortization and a 6.75x multiple to the trailing three-year average of net incentives created, and (ii) adding 100% of the value of net cash (defined as cash less the face value of debt and preferred stock, other than certain preferred stock issued in connection with certain Exchanges), 100% of the value of corporate investments and 75% of fund-level net accrued incentives as of December 31 of the prior year, in each case subject to certain adjustments.

Amounts received in respect of each OCGH Unit is reduced by the amount of any non-tax related distributions received in the calendar year in which the Exchange occurs, but increased by an amount accruing daily from January 1 of such year to the date of the closing of the Exchange at a rate per annum equal to the 5-year treasury note rate as of December 31 of the prior year plus 3%.

Converted OCGH Units and Phantom Units is valued using the same methodology applied to all other OCGH Units.

OCGH Unit Awards

The Company granted 80,689 and 136,776 OCGH units during the years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company expected to recognize compensation expense on its unvested OCGH unit awards of $42.5 million over a weighted average period of 3.5 years.

With respect to forfeitures, the Company made an accounting policy election to account for forfeitures when they occur.

Accordingly, no forfeitures have been assumed in the calculation of compensation expense.

Deferred Equity Units

A deferred equity unit represents a special unit award that, when vested, will be settled with an unvested OCGH unit on a one-for-one basis.

The number of deferred equity units that will vest is based on the achievement of certain performance targets through October 2032.

Once a performance target has been met, the applicable number of OCGH units will be issued as unvested units and begin to vest over periods of up to 5.0 years.

The holder of a deferred equity unit is not entitled to any distributions until settled by the issuance of an OCGH unit.

As of December 31, 2024, there were 617,720 deferred equity units outstanding, 140,028 of which were expected to be issued.

For the twelve months ended December 31, 2024 and 2023, 212,399 and 131,709 units were issued and the Company recognized $3.1 million and $3.4 million, respectively, of compensation expense related to the deferred equity units, which were included in equity-based compensation expense in the consolidated and combined statements of operations.

Oaktree Equity Plan

In April 2022, OCM established OEP, through which certain employees of OCM’s indirect subsidiaries participate in certain equity interests in the Oaktree Operating Group.

During the years ended December 31, 2024 and 2023, the Company did not grant any OEP awards.

For the twelve months ended December 31, 2024 and 2023, 367,901 and 0 units were vested and the Company recognized $5.0 million and $5.2 million, respectively, of compensation expense related to the OEP awards, which were included in equity-based compensation expense in the combined and consolidated statements of operations.

For the year ended December 31, 2024 and 2023, 103,843 and 59,338 units of the OEP awards were forfeited.

As of December 31, 2024 and 2023, there were 3,311,106 and 3,782,850 unvested OEP units outstanding.

As of December 31, 2024, the Company expected to recognize compensation expense on its unvested OEP unit awards of $30.2 million over a weighted average period of 2.5 years.

The Company uses the Black-Scholes option pricing model to determine the grant date fair value of the OEP units.

This model requires the Company to estimate the expected volatility and the expected term of the OEP units which are highly complex and subjective variables.

The variables take into consideration, among other things, projected OEP unit exercise behavior.

The Company uses a predicted volatility of its stock price during the expected life of the units that is based on the historical performance of the Company’s stock price as well as including an estimate using guideline companies.

The expected term is computed using the simplified method as the Company’s best estimate given its lack of actual exercise history.

The Company has selected a risk-free rate based on the implied yield available on U.S.

Treasury securities with a maturity equivalent to the expected term of the award.

Forfeitures are recognized as incurred.

The OEP units granted in April 2022 were valued at $9.13 per unit, net of the upfront cash consideration from the employee.

Oaktree Equity Units

In December 2024, OCM established OEU, through which certain employees of OCM’s indirect subsidiaries participate in certain interests in the Oaktree Operating Group.

During the year ended December 31, 2024, the Company granted 1,700,000 OEU units.

For the twelve months ended December 31, 2024, no units were vested and the Company recognized $4.2 million, of compensation expense related to the OEU awards, which were included in equity-based compensation expense in the combined and consolidated statements of operations.

As of December 31, 2024, there are 1,700,000 unvested OEU units.

As of December 31, 2024, the Company expected to recognize compensation expense on its unvested OEU unit awards of $48.5 million over a weighted average period of 3.8 years.

The Company uses the Black-Scholes option pricing model to determine the grant date fair value of the OEU units.

This model requires the Company to estimate the expected volatility and the expected term of the OEU units which are highly complex and subjective variables.

The variables take into consideration, among other things, projected OEU unit exercise behavior.

The expected term is computed using the simplified method as the Company’s best estimate given its lack of actual exercise history.

The Company has selected a risk-free rate based on the implied yield available on U.S.

Treasury securities with a maturity equivalent to the expected term of the award.

Forfeitures are recognized as incurred.

The OEU units granted in December 2024 were valued at $31.29 per unit for those subject to 5-year standard vesting and $29.01 per unit for those subject to 2.5-year vesting.

COMMITMENTS AND CONTINGENCIES

In the normal course of business, Oaktree enters into contracts that contain certain representations, warranties and indemnifications.

The Company’s exposure under these arrangements would involve future claims that have not yet been asserted.

Inasmuch as no such claims currently exist or are expected to arise, the Company has not accrued any liability in connection with these indemnifications.

Legal Actions

Oaktree, its affiliates, investment professionals, and portfolio companies are routinely involved in litigation and other legal actions in the ordinary course of their business and investing activities.

In addition, Oaktree is subject to the authority of a number of U.S.

regulators, including the SEC and the Financial Industry Regulatory Authority, and those authorities periodically conduct examinations of Oaktree and make other inquiries that may result in the commencement of regulatory proceedings against Oaktree and its personnel.

Oaktree is currently not subject to any pending actions or regulatory proceedings that either individually or in the aggregate are expected to have a material impact on its consolidated financial statements.

Commitments to Funds

As of December 31, 2024 and 2023, the Company, generally in its capacity as general partner, had undrawn capital commitments of $161.3 million and $254.9 million, respectively, including commitments to both unconsolidated and consolidated funds.

Investment Commitments of the Consolidated Funds

Certain of the consolidated funds are parties to credit arrangements that provide for the issuance of letters of credit and/or revolving loans, which may require the particular fund to extend loans to investee companies.

The consolidated funds use the same investment criteria in making these commitments as they do for investments that are included in the combined and consolidated statements of financial condition.

The unfunded liability associated with these credit arrangements is equal to the amount by which the contractual loan commitment exceeds the sum of funded debt and cash held in escrow, if any.

As of December 31, 2024 and 2023, the consolidated funds had no aggregate potential credit and investment commitments.

A consolidated fund may agree to guarantee the repayment obligations of certain investee companies.

As of December 31, 2024 and December 31, 2023, there were no guaranteed amounts under such arrangements.

Certain consolidated funds are investment companies that are required to disclose financial support provided or contractually required to be provided to any of their portfolio companies.

During the year ended December 31, 2024, the consolidated funds did not provide any financial support to portfolio companies.

Operating Leases

Oaktree leases its main headquarters office in Los Angeles and offices in 22 other cities in the U.S., Europe, Asia and Australia, pursuant to current lease terms expiring through 2031.

As of December 31, 2024 and 2023, the estimated aggregate minimum commitments with lease terms expiring through 2031 under leases for which the Company serves as lessee were $93.1 million and $98.6 million, respectively.

RELATED PARTY TRANSACTIONS

The Company receives a substantial portion of its management fees, incentive fees and carried interest allocation, and investment income from Oaktree-managed investment limited partnerships for which it serves as general partner.

Loans To Affiliates and Employees

Loans primarily consist of interest-bearing loans made to OCGH and OEP unitholders, primarily employees, to purchase or pay tax obligations related to equity awards.

The balances of loans to OCGH and OEP unitholders were $10.7 million and $6.9 million as of December 31, 2024 and 2023, respectively and are included in due from affiliates.

The carrying value of loan balances approximated fair value due to their short-term nature or because their weighted average interest rate approximated the Company’s cost of debt.

The loans, which are generally recourse to the borrower or secured by vested equity and other collateral, typically bear interest at the Company’s cost of debt and generated interest income of $0.5 million, $0.3 million, and $0.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

On May 7, 2021 the Company, through its consolidated subsidiary OCM entered into two revolving line of credit notes with Oaktree Capital I, one as a borrower and the other as a lender.

Both revolving line of credit notes allow for outstanding principal amounts not to exceed $250.0 million and mature on May 7, 2024.

On February 17, 2023, the revolving line of credit notes were replaced with an intercompany loan agreement with a maturity of February 17, 2026.

As of December 31, 2024, OCM had borrowed $222.0 million from Oaktree Capital I and interest expense of $2.7 million was incurred for the year ended December 31, 2024.

As of December 31, 2024, there was no loans to affiliates and interest income of $0.6 million for the year ended December 31, 2024.

As of December 31, 2023, OCM had borrowed $26.0 million from Oaktree Capital I and incurred interest expense of $810 thousand for the year ended December 31, 2023.

As of December 31, 2023, OCM had lent $48.0 million to Oaktree Capital I and generated interest income of $1.4 million for the year ended December 31, 2023.

Due To/From Oaktree Funds and Affiliates

In the normal course of business, the Company advances certain expenses on behalf of Oaktree funds.

Certain expenses paid by the Company, which typically are employee travel and other costs associated with particular portfolio company holdings, are reimbursed to the Company by the portfolio companies.

As of December 31, 2024 and 2023, amounts due from unconsolidated Oaktree funds and affiliates amounted to $161.5 million and $126.0 million, respectively.

As of December 31, 2024 and 2023, amounts due to unconsolidated Oaktree funds and affiliates amounted to $244.3 million and $6.9 million, respectively, which is included in due to affiliates.

Revenues Earned From Oaktree Funds

In aggregate, management fees, incentive fees, and carried interest allocation earned from unconsolidated Oaktree funds totaled $1.6 billion, $1.3 billion and $1.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Other Investment Transactions

The Company’s senior executives, directors and senior professionals are permitted to invest their own capital (or the capital of family trusts or other estate planning vehicles they control) in Oaktree funds, for which they typically pay the particular fund’s management fee but not its incentive allocation.

To facilitate the funding of capital calls by funds in which employees are invested, the Company periodically advances on a short-term basis the capital calls on certain employees’ behalf.

These advances are reimbursed generally toward the end of the calendar quarter in which the capital calls occurred.

As of December 31, 2024 and 2023, the employee advances were $3.5 million and $3.0 million respectively and are included in due from affiliates.

Aircraft Services

OCM owns an aircraft for business purposes.

Howard Marks, the Company’s Co-Chairman, may use this aircraft for personal travel and will reimburse OCM to the extent his use of the aircraft for personal travel exceeds a certain threshold pursuant to an Oaktree policy.

Oaktree also provides certain senior executives a personal travel allowance for private aircraft usage up to a certain threshold pursuant to the same Oaktree policy.

Additionally, Oaktree occasionally makes use of an aircraft owned by one of its senior executives for business purposes at a price to Oaktree that is based on market rates.

Special Allocations

Certain senior executives receive special allocations based on a percentage of profits of the Oaktree Operating Group.

These special allocations, which are recorded as compensation expense, are made on a current basis for so long as they remain senior executives of the Company, with limited exceptions.

Administrative Services

As of October 1, 2019, OCM provides certain administrative and other services relating to the operations of BOH’s business pursuant to a Services Agreement between BOH and OCM (as amended from time to time, the “Services Agreement”).

On an annual basis, BOH will reimburse OCM $750,000 of the costs incurred for providing these administrative services.

This reimbursement is payable quarterly, in equal installments, and relates to BOH’s allocable portion of overhead and other expenses (facilities and personnel) incurred by OCM in performing its obligations under the Services Agreement.

This amount includes BOH’s allocable portion of (i) the rent of BOH’s principal executive offices (which are located in a building owned by an affiliate of Brookfield) at market rates and (ii) the costs of compensation and related expenses of various personnel at Oaktree that perform duties for BOH.

The Services Agreement may be terminated by either party without penalty upon 90 days’ written notice to the other.

For each of the years ended December 31, 2024, 2023 and 2022, OCM earned administrative services income of $0.8 million.

The Company leases certain office space from affiliates of Brookfield.

Rent expense associated with these leases was $4.5 million for the years ended December 31, 2024, 2023 and 2022.

Future lease obligations associated with these leases are $31.0 million for the remaining lease commitments through 2030.

Subordinated Credit Facility

On May 19, 2020, Oaktree entered into a credit agreement with a subsidiary of BN that provides for a subordinated credit facility maturing on May 19, 2023.

The subordinated credit facility has a revolving loan commitment of $250 million and borrowings generally bear interest at a spread to either LIBOR or an alternative base rate.

Borrowings on the subordinated credit facility are subordinate to the outstanding debt obligations and borrowings on the primary credit facility as detailed in note 9.

Oaktree Operating Group members as co-borrowers are jointly and severally liable for outstanding borrowings on the subordinated credit facility.

In March 2022, this credit facility was amended to extend the revolving credit maturity date from May 19, 2023 to September 14, 2026.

On October 6, 2023, an amendment was signed to further extend the maturity date to October 6, 2028 and update the interest rate to SOFR plus 1.6% or an alternative base rate plus 0.5%.

No amounts were outstanding on the subordinated credit facility as of December 31, 2024 and 2023.

Brookfield Oaktree Wealth Solutions

In April 2021, the Company and Brookfield Asset Management Company formed a strategic partnership, Brookfield Oaktree Wealth Solutions (“BOWS’), to enhance both firms’ ability to raise capital through North American financial intermediaries such as brokerage firms, banks and registered investment advisors.

The Company reimburses BOWS for their share of expenses on a quarterly basis.

For the years ended December 31, 2024 and 2023, respectively, the Company recorded $20.0 million and $17.0 million related to these reimbursements, which were included in general and administrative expense in the combined and consolidated statements of operations.

As of December 31, 2024 and 2023, respectively, the Company recorded $2.0 million and $5.0 million in due to affiliates on the statement of financial condition.

Management Fees

The Company recorded management fees from affiliates of Brookfield of $13.5 million, $11.4 million and $7.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Deposit Agreement with Brookfield Corporation

On May 1, 2023, BN and OCM, Oaktree Capital I, Oaktree Capital II, OCM Cayman, Oaktree AIF and Oaktree Investment Holdings, L.P.

(collectively, the “Oaktree Depositors”) entered into a deposit agreement under which each of the Oaktree Depositors has the ability to place up to $750 million in the aggregate at any time on deposit with BN.

This deposit arrangement is set up to facilitate a more efficient use of cash across Brookfield and provides Oaktree with the option to deposit excess operational cash.

Oaktree can deposit cash from time to time, subject to the aggregate limits, and can withdraw deposited funds on two business days’ notice.

Each deposit will earn interest on the outstanding principal amount at an agreed rate.

There is no set maturity on any deposit balance.

As of December 31, 2024, OCM had no amounts on deposit with BN.

For the year ended December 31, 2024, OCM generated $0.9 million interest income, on an average deposit balance of $15.6 million, which was included in interest and dividend income.

As of December 31, 2023, OCM had $40.0 million on deposit with BN which was included in the U.S.

Treasury and other securities.

For the year ended December 31, 2023, OCM generated $7.1 million interest income on an average deposit balance of $192.5 million which was included in interest and dividend income.

Segment Earnings from equity method investments (e)

Incentive distributions ( 560 ) ( 424 ) ( 378 )

Total Segment Earnings $ 2,496 $ 2,136 $ 1,977

(a) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets as well as certain capital depreciation costs recharged from BAM's affiliates.

(b) This adjustment removes the impact of both unrealized and realized carried interest allocations and the associated compensation expense.

(c) This adjustment removes other expenses associated with fair value changes as well as the impact of other costs and non-asset management related items such as non-recurring costs that are not considered part of the ongoing asset management business.

(d) This adjustment adds back other revenues related to the recovery of compensation costs.

(e) These adjustments remove our share of income from equity method investments, included in items (a) to (d) above and includes our share of Segment Earnings from equity method investments.

SUBSEQUENT EVENTS

Unit Distribution

A distribution of $0.99 per unit was paid on February 25, 2025 to holders of record at the close of business on February 15, 2025.

Private Placement Notes

On March 5, 2025, Oaktree Capital I received commitments from certain accredited investors to purchase $300 million of its 5.55% Senior Notes, due 2036.

These notes are senior unsecured obligations of Oaktree Capital I, and jointly and severally guaranteed by OCM, Oaktree Capital II, Oaktree AIF, and OCM Cayman, as co-obligors.

The offering is subject to the execution of definitive documents which is expected to occur on March 19, 2025 with funding expected to occur on June 5, 2025.

Quarterly Dividend

On February 3, 2026, the board of directors of BAM declared a quarterly dividend of $ 0.5025 per share, payable on March 31, 2026 to shareholders of record as at the close of business on February 27, 2026.

On October 13, 2025, BAM and BN announced a proposed transaction to acquire the remaining equity interests in the Oaktree business.

We expect this transaction to close in the first half of 2026, subject to regulatory approvals and customary closing conditions.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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 8. Financial Statements and Supplementary Data