Brookfield Asset Management Ltd. 10-K

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with BAM's consolidated financial statements and the related notes included within this Annual Report. This section of the Annual Report discusses activity as of and for the years ended December 31, 2025 and 2024. For discussion on activity for the year ended December 31, 2024 and period-over-period analysis on results for the year ended December 31, 2024 to 2023, refer to Part II, “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended December 31, 2024, which specific discussion is incorporated herein by reference. Business Environment In 2025, global GDP growth is estimated to have risen by 3.2% compared to 3.3% in 2024. Economic activity continued to be supported by easing inflationary pressures, resilient employment conditions, and the gradual normalization of monetary policy across most advanced economies. Labor markets continued to rebalance, though unemployment rates generally remained low by historical standards. Headline inflation in most advanced economies remained near central bank targets, with services inflation and wage growth proving more persistent. Divergences in economic performance across regions persisted in 2025. The U.S. and parts of Asia continued to outperform, supported by domestic demand and investment, while growth in the Eurozone, the United Kingdom, and China remained comparatively subdued due to structural constraints and weaker demand. U.S. economic growth slowed modestly in 2025 to 2.1% from the elevated pace of 2.8% recorded in 2024. Inflation continued to ease, with core measures trending lower over the year. Labor market conditions cooled gradually, reflected in declining job openings and improved labor force participation. The unemployment rate increased modestly but remained low by historical standards, indicating a decelerating yet resilient labor market. Monetary policy normalization continued across most developed markets in 2025. Following the initiation of easing cycles in 2024, central banks generally adopted a more measured pace of rate adjustments, balancing progress on inflation against financial stability considerations and elevated fiscal issuance. Policy rates across advanced economies ended the year below peak levels but remained above pre‑pandemic norms. In the U.S., the Federal Reserve continued its easing cycle with 75 basis points of cuts in 2025, in line with improving inflation dynamics and moderating growth. Treasury yields remained volatile, reflecting shifting expectations for the terminal policy rate, fiscal supply dynamics, and global demand for safe assets. Elsewhere, the European Central Bank and the Bank of England continued gradual easing, while the Bank of Japan proceeded cautiously following the exit from negative interest rate policy. Monetary policy outcomes in emerging markets varied, reflecting differences in inflation trajectories, currency pressures, and domestic growth conditions. Credit market conditions remained constructive in 2025. Investment grade and high yield credit spreads stayed tight by historical standards, despite episodic volatility driven by macroeconomic data releases and geopolitical developments. Primary market issuance remained supported by refinancing activity and sustained investor demand for income‑oriented assets. In 2025, equity markets delivered strong returns following the robust performance seen in prior years. The S&P 500 posted a total return of ~17.9% and reached new all-time highs, supported by easing monetary policy and resilient corporate earnings. The Nasdaq Composite and Nasdaq-100 also registered notable gains of about ~21%, driven by strength in technology and growth sectors. International equity markets outperformed U.S. benchmarks, with broad global indices such as the MSCI All Country World ex-U.S. and other developed market indices rising by ~30%. Global merger and acquisition activity improved further in 2025, supported by lower financing costs and improved corporate confidence. The rebound was global, with strong growth in the number and value of deals in the U.S., Asia, Europe, the Middle East and Africa. The global initial public offering market showed signs of recovery and stabilization during 2025, with total proceeds increasing compared with the prior year across a broad range of sectors. Political developments continued to influence the global macroeconomic backdrop in 2025 following political elections in 2024. Markets adjusted to evolving policy priorities in the U.S., Europe, and parts of Asia. While financial markets remained relatively resilient, uncertainty related to fiscal policy, geopolitics, and trade dynamics continued to affect investor sentiment and capital allocation decisions. Our business is well-positioned within the evolving alternative asset management landscape by leveraging a strategic and agile approach to investment opportunities. As investors seek diversification and innovative solutions, we are equipped to navigate market complexities and government policies by delivering value through disciplined strategies. Our ability to adapt to shifting economic conditions and capitalize on emerging trends ensures we remain a trusted partner in achieving long-term financial outcomes. 49 Review of Financial Results Income Statement Analysis Consolidated Statements of Operations The following table summarizes the consolidated statements of operations for BAM for the years ended December 31, 2025, 2024 and 2023: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 2025 vs 2024 2024 vs 2023 Revenues Base management and advisory fees $ 3,384 $ 2,957 $ 2,766 $ 427 $ 191 Incentive fees 560 424 376 136 48 Investment income Carried interest allocations Realized — 25 51 (25) (26) Unrealized 209 (9) 348 218 (357) Total investment income 209 16 399 193 (383) Interest and dividend revenue 98 143 172 (45) (29) Interest and dividend revenue of consolidated funds 31 — — 31 — Other revenues 535 440 349 95 91 Total revenues 4,817 3,980 4,062 837 (82) Expenses Compensation, operating, and general and administrative expenses Compensation and benefits (1,373) (1,154) (1,048) (219) (106) Other operating expenses (354) (347) (342) (7) (5) General, administrative and other (56) (64) (56) 8 (8) Total compensation, operating, and general and administrative expenses (1,783) (1,565) (1,446) (218) (119) Carried interest allocation compensation Realized (155) (69) (26) (86) (43) Unrealized 9 (24) (60) 33 36 Total carried interest allocation compensation (146) (93) (86) (53) (7) Interest expense (87) (22) (14) (65) (8) Interest expense of consolidated funds (28) — — (28) — Total expenses (2,044) (1,680) (1,546) (364) (134) Other expenses, net (297) (93) (129) (204) 36 Share of income from equity method investments 402 339 167 63 172 Other income, net of consolidated funds 47 — — 47 — Income before taxes 2,925 2,546 2,554 379 (8) Income tax expense (527) (438) (417) (89) (21) Net income 2,398 2,108 2,137 290 (29) Net loss (income) attributable to: Preferred shares redeemable non-controlling interest 480 211 (262) 269 473 Non-controlling interest in consolidated entities (369) (151) (36) (218) (115) Non-controlling interests in consolidated funds (24) — — (24) — Net income attributable to the common stockholders $ 2,485 $ 2,168 $ 1,839 $ 317 $ 329 BAM primarily generates revenue from fees earned pursuant to contractual arrangements with funds, publicly traded vehicles, and investors, as well as transaction and advisory fees. These fees include base management fees, incentive fees, and certain advisory fees. Base management fees are long-term, recurring in nature, and correspond to fundraising activity, NAVs of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBU. Incentive fees are performance fees earned from BIP and BEP for exceeding predetermined distribution thresholds, are long-term, and are not subject to clawback. Incentive fees also include performance fees earned from BBU for exceeding the current high watermark threshold and are not subject to clawback. 50 BAM is entitled to carried interest allocations assuming certain investment returns are achieved, as well as incentive management fees in certain of our structures where we are entitled to contractual fees from an investment fund based on achieving prescribed investment returns. The composition of our revenues will vary based on market conditions and the cyclical nature of our businesses. Carried interest allocations generated by our funds and associated carried interest compensation are driven by the performance of the underlying investments, as well as overall market conditions. Fair values are affected by changes in the fundamentals of our investments, the industries in which they operate, the overall economy, and other market conditions. The impact of fair values of our underlying investments throughout market cycles may result in material increases or decreases to carried interest generated, net of expenses. Expenses primarily include employee base compensation, bonuses, and share-based compensation. Period over period changes in employee base compensation and bonuses generally result from changes in headcount and annual salary changes. Share-based awards are granted in the first quarter of each year and generally vest over 5 years. Equity settled compensation awards vest on a graded basis over the vesting period and cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of BAM Class A Shares. Therefore, for cash settled share-based compensation, an increase or decrease in the share price of BAM will result in share-based compensation expense or recovery. For the years ended December 31, 2025 and 2024 Net income for the year ended December 31, 2025 was $2.4 billion, of which $2.5 billion was attributable to common stockholders. This compares to net income of $2.1 billion for the year ended December 31, 2024, of which $2.2 billion was attributable to common stockholders. Revenues Revenues for the year ended December 31, 2025 were $4.8 billion, which represents an increase of $837 million or 21% compared to $4.0 billion of revenue for the year ended December 31, 2024. Base Management and Advisory Fees Base management and advisory fees for the year ended December 31, 2025 were $3.4 billion, which represents an increase of $427 million or 14% compared to the year ended December 31, 2024. Management fee revenues increased by $123 million from capital raised for the fifth vintage of our real estate flagship fund, $114 million from capital raised for the second vintage of our global transition flagship fund, and $65 million attributable to fundraising from our perpetual infrastructure complementary strategies. In addition, management fees increased $55 million from insurance capital inflows from BWS and $44 million from a higher trading price of BIP, BEP, and BBU. These increases were partially offset by $17 million of lower fees from earlier vintages of our real estate flagship funds and certain infrastructure funds as a result of monetizations. Incentive Fees Incentive fees for the year ended December 31, 2025, were $560 million, an increase of $136 million or 32% from the year ended December 31, 2024. This increase was primarily driven by BBU performance fees of $95 million as a result of the share price exceeding the previous high watermark. In addition, incremental incentive fees were recognized as a result of a 6% growth in BIP dividends of $24 million and 5% growth in BEP dividends of $17 million. Carried Interest Allocations Carried interest allocations are a performance fee arrangement which is earned from those arrangements where BAM has a general partner capital interest and is entitled to a disproportionate allocation of investment income. Each of these general partners is generally entitled to a carried interest that allocates to it 20% of the net profits realized by the limited partners from the fund’s investment subject to the return of contributed capital and a preferred return of typically 8% per annum to the limited partners. At the end of each reporting period, the Company calculates the balance of accrued carried interest that would be due to BAM for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. Realized carried interest allocations were $nil for the year ended December 31, 2025, which represents a net decrease of $25 million compared to the year ended December 31, 2024. Realized carried interest allocations in the prior year were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies. All realized carried interest income for the year ended December 31, 2024, net of carried interest compensation related to mature funds and are attributable to BN through our redeemable preferred shares. 51 The unrealized carried interest allocations of $209 million for the year ended December 31, 2025 represents an increase of $218 million compared to the year ended December 31, 2024. The gross increase of $943 million compared to the prior year reflects changes in fund valuations associated with the fifth vintage of our infrastructure flagship fund of $416 million and the first vintage of our global transition flagship fund for $297 million. In addition, $187 million of increases were associated with various private equity funds including the sixth vintage of our private equity flagship fund. This was partially offset by a decrease of $734 million compared to the prior year reflecting lower relative valuations across various mature real estate flagship funds. Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM were $629 million for the year ended December 31, 2025, compared to $257 million for the year ended December 31, 2024. The following table presents the carried interest in new funds, and related performance compensation by investment strategy. Net New Fund Carried Interest 2025 2024 FOR THE YEAR ENDED DECEMBER 31, (MILLIONS) Carried interest allocations 1 Carried interest compensation Carried interest, net Carried interest allocations 1 Carried interest compensation Carried interest, net Infrastructure $ 420 $ (13) $ 407 $ 151 $ — $ 151 Renewable power and transition 297 (17) 280 166 (2) 164 Private equity 187 (18) 169 89 (3) 86 Real estate 39 (5) 34 (18) (1) (19) $ 943 $ (53) $ 890 $ 388 $ (6) $ 382 1. Carried interest generated within our partner managers in Credit is presented within the investment balance of our partner managers rather than accrued carried interest and as a result is excluded from the table above. The following table presents the change in accrued carried interest in new funds by investment strategy. 2024 Activity during the year 2025 AS AT DECEMBER 31, (MILLIONS) Accrued carried interest allocations 1 Unrealized Realized Accrued carried interest allocations 1 Infrastructure $ 150 $ 420 $ — $ 570 Renewable power and transition 237 297 — 534 Private equity 276 187 — 463 Real estate 30 39 — 69 $ 693 $ 943 $ — $ 1,636 1. Carried interest generated within our partner managers in Credit is presented within the investment balance of our partner managers rather than accrued carried interest and as a result is excluded from the table above. Interest and Dividend Revenue Interest and dividend revenue for the year ended December 31, 2025 was $98 million, which represents a decrease of $45 million compared to the year ended December 31, 2024. The decrease was primarily due to lower interest income earned on our deposit with BN. Interest and Dividend Revenue of Consolidated Funds Interest and dividend revenue of consolidated funds for the year ended December 31, 2025 was $31 million, which represents interest and dividends earned from investments held by BSI II in which BAM holds a sufficient interest to require the consolidation of the fund. 52 Other Revenues Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Services Agreement, fund expense recharges, and incentive management fees earned on certain funds. Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively. Other revenues were $535 million for the year ended December 31, 2025, an increase of $95 million compared to the year ended December 31, 2024. Of the total increase, $45 million was due to higher recoveries in share and performance-based compensation. In addition, the increase was also driven by $38 million of general operating cost recoveries from affiliates. Expenses Total expenses for the year ended December 31, 2025 were $2.0 billion, an increase of $364 million or 22% compared to the year ended December 31, 2024. Compensation and Benefits Compensation and benefits for the year ended December 31, 2025 was $1.4 billion, which represents an increase of $219 million compared to the year ended December 31, 2024. This was attributable to higher share-based compensation expense of $65 million on our share and performance-based awards reflecting additional existing cash-settled awards recognized upon the completion of the 2025 Arrangement. This increase was partially offset by a decrease in the trading price of Class A Shares during the year. The remaining increase is due to higher compensation costs from the ongoing growth of our business. Other Operating Expenses Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses were broadly consistent with the prior year at $354 million for the year ended December 31, 2025, compared to $347 million for the year ended December 31, 2024. Carried Interest Allocation Compensation Compensation expenses related to carried interest allocation compensation was $146 million for the year ended December 31, 2025, which represents a change of $53 million compared to the year ended December 31, 2024. This was primarily driven by higher relative valuations across certain renewable, infrastructure, and private equity funds compared to the prior year. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $53 million during the year. Interest Expense Interest expense for year ended December 31, 2025 was $87 million, which represents an increase of $65 million compared to the year ended December 31, 2024. This was primarily driven by BAM's increased borrowings from our senior note offerings completed during the year. Interest Expense of Consolidated Funds Interest expense of consolidated funds for the year ended December 31, 2025 was $28 million, which was primarily driven by borrowings made by BSI II in which BAM holds a sufficient interest to require the consolidation of the fund. Other Expenses, net Other expenses, net for the year ended December 31, 2025 was $297 million compared to $93 million in the prior year. This increase was driven by a mark-to-market loss of $180 million on our investment in BSREP III during the year ended December 31, 2025 compared to a loss of $82 million during the year ended December 31, 2024. The remaining increase was due to mark-to-market revaluations in put and call options to acquire additional interests in our partner managers. Other Income, net of Consolidated Funds Other income, net of consolidated funds for the year ended December 31, 2025 was $37 million compared to $nil in the prior year. This represents the underlying fair value changes of investments held by BSI II in which BAM holds a sufficient interest to require the consolidation of the fund. Share of Income from Equity Method Investments Our share of income from equity method investments was $402 million compared to $339 million in the prior year, an increase of $63 million. This increase was driven by $160 million of incremental earnings primarily from Castlelake and Concora as well as other partner managers, offset by $97 million of lower earnings from Oaktree. 53 Income Tax Expense Income tax expense was $527 million for the year ended December 31, 2025, which represents an increase of $89 million compared to the year ended December 31, 2024. The increase in income tax expense was predominantly driven by the impairment of deferred tax assets during the year. Net Loss Attributable to Preferred Share Redeemable Non-Controlling Interest BAM recognizes carried interest income and associated carried interest allocation expense on mature funds within our consolidated statements of operations on a gross basis. As the net carried interest generated on mature funds is attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN. Net loss attributable to preferred redeemable non-controlling interest was $480 million for the year ended December 31, 2025 primarily due to lower valuations in certain mature real estate funds. Net Income Attributable to Non-Controlling Interest of Consolidated Entities Net income attributable to non-controlling interest of consolidated entities was $369 million for the year ended December 31, 2025. BAM recognizes carried interest allocations on new funds within our consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest allocations are attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the year. Net Income Attributable to Non-Controlling Interest of Consolidated Funds For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $24 million for the year ended December 31, 2025. 54 Balance Sheet Analysis Consolidated Balance Sheets The following table presents the consolidated balance sheets of BAM as at December 31, 2025 and 2024: AS AT DECEMBER 31, (MILLIONS, EXCEPT SHARE AMOUNTS) 2025 2024 Assets Cash and cash equivalents $ 1,583 $ 404 Accounts receivable and other, net 333 483 Financial assets 417 231 Due from affiliates 3,280 2,500 Investments 9,795 9,113 Investments held for sale — 242 Investments of consolidated funds 505 251 Property, plant and equipment, net 92 58 Intangible assets, net 234 38 Goodwill 236 251 Deferred income tax assets 572 586 Total assets $ 17,047 $ 14,157 Liabilities Accounts payable and other, net $ 2,459 $ 1,349 Financial liabilities 449 228 Due to affiliates 720 1,092 Corporate borrowings 2,478 — Borrowings of consolidated funds 462 251 Deferred income tax liabilities 169 46 Total liabilities 6,737 2,966 Commitments and contingencies Preferred shares redeemable non-controlling interest 1,398 2,103 Equity 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 9,153 9,017 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 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 55 As at December 31, 2025 and 2024 Assets Total assets were $17.0 billion as at December 31, 2025, an increase of $2.9 billion or 20% compared to December 31, 2024. Cash and Cash Equivalents Cash and cash equivalents were $1.6 billion as at December 31, 2025, an increase of $1.2 billion from December 31, 2024. This was largely driven by cash inflows of $2.5 billion from BAM's senior note offerings during the year. The increase was partially offset by cash outflows of approximately $555 million due to investments made in Oaktree, Concora, Primary Wave, Angel Oak and warehoused investments made by BAM to support its various strategies. Share repurchases made during the year resulted in a further decrease of $412 million in cash and cash equivalents. Accounts Receivable and Other, Net Accounts receivable and other, net of $333 million primarily consists of receivables from third parties and prepaid expenses. The decrease of $150 million from December 31, 2024 was largely driven by the timing of collections. Financial Assets Financial assets of $417 million primarily consists of call options to acquire additional interests in Primary Wave, Castlelake, LCM and Angel Oak in the future and financial instruments associated with various other investments. The increase of $186 million from December 31, 2024 was largely driven by mark-to-market valuation increases on certain call options. Due from Affiliates Due from affiliates of $3.3 billion primarily relates to management fees earned but not collected from our managed funds, receivables for expenses paid on behalf of certain of our funds, as well as reimbursements due from BN for long-term compensation awards. The movement of $780 million from December 31, 2024 reflects additional receivables owing from BN associated with existing share-based compensation and carried interest compensation awards upon the completion of the 2025 Arrangement. Investments Investments are mainly comprised of our: • approximate 74% economic interest in Oaktree of $4.7 billion (2024 – $4.6 billion); • limited partnership interest in BSREP III of $700 million (2024 - $1.0 billion); • economic interest in Castlelake of $720 million (2024 – $538 million); • accumulated unrealized carried interest in our mature and new funds of $197 million (2024 - $931 million) and $1.6 billion (2024 - $693 million), respectively; • approximate 11% economic interest in Pretium of $330 million (2024 - $351 million); • 44% economic interest in Primary Wave of $261 million (2024 – $147 million); • 49.9% economic interest in LCM of $221 million (2024 – $186 million); • 51.3% economic interest in Angel Oak of $133 million (2024 - $nil); and • limited partner interests in funds of $368 million (2024 - $29 million) including Pinegrove Fund (2025 – $230 million; 2024 – $25 million), BPE (2025 – $92 million; 2024 - $nil), BGTF II (2025 - $36 million; 2024 - $nil); The investment in BSREP III and carried interest generated on mature funds are fully attributable to BN through their preferred shares redeemable non-controlling interest and does not impact net income attributable to common stockholders. Accrued carried interest in new funds, including current funds and open-ended funds, as defined therein, is attributed to BN at 33.3%. The remaining accrued carried interest in new funds, net of associated compensation is attributable to common stockholders. During the year, net investment increases of $682 million were primarily due to investments made by BAM during the year in Castlelake's acquisition of Concora ($197 million), Pinegrove Fund ($172 million), Angel Oak ($149 million), and Primary Wave ($84 million). In addition, investments also increased due to changes in value of accumulated unrealized carried interest on new funds ($943 million), partially offset by a decrease in accumulated unrealized carried interest on mature funds ($734 million). 56 Investments Held for Sale Investments held for sale was $nil at December 31, 2025. The decrease of $242 million compared to December 31, 2024 was a result of BAM's disposition of its interest in Redwood Evergreen Fund LP for approximately $257 million during the year ended December 31, 2025. Investments of Consolidated Funds Investments of consolidated funds represents investments held in BSI II in which BAM holds a sufficient interest to require the consolidation of the fund. Investments in BSI II are measured at fair value. The increase of $254 million compared to December 31, 2024 was driven by additional investments made by BSI II. Intangible assets, net Intangible assets, net was $234 million as at December 31, 2025 and was recognized upon the completion of the 2025 Arrangement. Liabilities Total liabilities were $6.7 billion as at December 31, 2025, an increase of $3.8 billion or 127% compared to December 31, 2024. Accounts Payable and Other, Net Accounts payable and other, net primarily consists of accrued bonus compensation, performance and cash-settled share-based compensation. The increase of $1.1 billion compared to December 31, 2024 reflects additional existing cash-settled awards recognized upon the completion of the 2025 Arrangement. Financial Liabilities Financial liabilities of $449 million primarily consists of contingent consideration associated with our investment in Castlelake and the mark-to-market of derivatives associated with put options on certain of our other partner managers. The increase of $221 million compared to December 31, 2024 predominantly reflects the change in value of the Castlelake options during the year. Due to Affiliates Due to affiliates of $720 million reflects amounts payable to related parties for share and cash-based compensation, as well as for services received in the normal course of business including operating expenses payable. The decrease of $372 million or 34% relative to December 31, 2024 was due to the elimination of certain amounts owing as a result of the 2025 Arrangement and payments made on certain amounts payable to related parties. Corporate Borrowings Corporate borrowings increased by $2.5 billion as a result of BAM's senior note offerings during the year ended December 31, 2025. Borrowings of Consolidated Funds Borrowings of consolidated funds represents borrowings used to finance investments within BSI II where BAM is required to consolidate the fund due to our economic interest. These increased borrowings of $211 million compared to December 31, 2024 was driven by borrowings made by BSI II to fund additional investments. Preferred Shares Redeemable Non-Controlling Interest BAM recognizes carried interest generated and associated carried interest allocation expense on mature funds within our consolidated statements of operations. As the net carried interest generated on mature funds is all attributable to BN, this balance primarily represents the accumulated unrealized carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN. Preferred shares redeemable non-controlling interest was $1.4 billion as at December 31, 2025, a decrease of $705 million compared to $2.1 billion as at December 31, 2024. This movement was due to a decrease in unrealized carried interest on mature real estate flagship funds, as well as settlements of amounts owed to BN during the year ended December 31, 2025. Non-Controlling Interest in Consolidated Entities Non-controlling interest in consolidated entities was $773 million as at December 31, 2025, an increase of $437 million compared to $336 million as at December 31, 2024. This increase was primarily due to carried interest generated across the latest vintages of our flagship funds of which 33.33% is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within BAM. 57 Cash Flow Statement Analysis Review of Consolidated Statements of Cash Flows Refer to the following table that summarizes the consolidated statements of cash flows for BAM for the years ended December 31, 2025, 2024 and 2023: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Operating activities $ 2,101 $ 1,612 $ 1,439 Investing activities (339) (1,744) (475) Financing activities (590) (2,119) (1,842) Change in cash and cash equivalents $ 1,172 $ (2,251) $ (878) This statement reflects activities within our consolidated operations and therefore excludes activities within non-consolidated entities. For the years ended December 31, 2025 and 2024 Operating Activities During the year ended December 31, 2025, the Company's operating activities generated cash inflows of $2.1 billion, compared to cash inflows of $1.6 billion in the prior year. Cash flows from operating activities primarily include the receipt of base management and advisory fees, incentive fees, realized carried interest, and interest and dividend revenue, offset by the payment of operating expenses incurred in the normal course of business, including compensation, operating and general and administrative expenses, and income tax payments. Investing Activities Net cash outflows from investing activities totaled $339 million, compared to outflows of $1.7 billion in the prior year. Net outflows of $339 million during the year ended December 31, 2025 were primarily attributable to approximately $1.0 billion of investments, including BAM's participation in Castlelake's acquisition of Concora, our step-up in ownership of Oaktree and Primary Wave, and an investment in Angel Oak. These outflows were partially offset by $619 million of proceeds from investment dispositions and distributions received from certain investments. The $1.7 billion net cash outflows in the prior year were largely attributable to $1.9 billion of investments related to Castlelake, Pretium, Redwood Evergreen Fund LP and GEMS Education. Financing Activities Net cash outflows from financing activities totaled $590 million, compared to outflows of $2.1 billion in the prior year. Net cash outflows of $590 million during the year ended December 31, 2025 were primarily attributable to $2.8 billion (2024 - $2.5 billion) of dividend distributions and $412 million of share repurchases, which was partially offset by $2.5 billion of senior note issuances during the year. 58 Key Financial and Operating Measures BAM prepares its financial statements in conformity with U.S. GAAP. This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our asset management business, including for performance measurement, capital allocation and valuation purposes. BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our asset management business. These non-GAAP financial measures should not be considered as the sole measure of BAM’s performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S. GAAP financial measures. These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers. The financial results of BAM includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business. See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures”, in this report. Non-GAAP Measures Utilized by BAM Fee Revenues Fee Revenues is a key metric analyzed by management to determine the growth in recurring cash flows from our asset management business. Fee Revenues include base management fees, incentive distributions, performance fees and transaction fees. Fee Revenues exclude carried interest and revenues of consolidated funds, but include Fee Revenues earned by Oaktree. The most directly comparable measure of Fee Revenues disclosed in the financial statements is base management and advisory fees. See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee Revenues. Fee-Related Earnings Fee-Related Earnings is used to provide additional insight into the operating profitability of our asset management activities. Fee-Related Earnings are recurring in nature and not based on future realization events. Fee-Related Earnings is comprised of Fee Revenues less direct costs associated with earning those fees, which include employee compensation and professional fees as well as business related technology costs, and other shared services costs. Fee-Related Earnings exclude revenues and expenses of consolidated funds. The most directly comparable measure of Fee-Related Earnings disclosed in the primary financial statements is net income. See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee-Related Earnings. Distributable Earnings BAM intends to pay out at least approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business. Distributable Earnings provides insight into earnings that are available for distribution or to be reinvested by BAM. It is calculated as the sum of its Fee-Related Earnings, realized carried interest, returns from our corporate cash and financial assets, interest expense, cash taxes, and general and administrative expenses excluding equity-based compensation expenses. The most directly comparable measure disclosed in the primary financial statements of our asset management business for Distributable Earnings is net income. See “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Distributable Earnings. Supplemental Financial Measures Utilized by BAM Assets Under Management AUM refers to the total fair value of assets managed, calculated as follows: • Investments that Brookfield, which includes BAM, BN, or their affiliates, either: ◦ Consolidates for accounting purposes (generally, investments in respect of which Brookfield has a significant economic interest and unilaterally directs day-to-day operating, investing and financing activities), or ◦ Does not consolidate for accounting purposes but over which Brookfield has significant influence by virtue of one or more attributes (e.g., being the largest investor in the investment, having the largest representation on the investment’s governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes), 59 ◦ Are calculated at 100% of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis, even if Brookfield does not own 100% of the investment, with the exception of investments held through our perpetual funds, which are calculated at its proportionate economic share of the investment’s NAV. • All other investments are calculated at Brookfield’s proportionate economic share of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis. Our methodology for determining AUM differs from the methodology that is employed by other alternative asset managers as well as the methodology for calculating regulatory AUM that is prescribed for certain regulatory filings (e.g., Form ADV and Form PF). Fee-Bearing Capital Fee-Bearing Capital represents the capital committed, pledged, or invested in our perpetual affiliates, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues. Fee-Bearing Capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts. When reconciling period amounts, we utilize the following definitions: • Inflows include capital commitments and contributions to our private and liquid strategies funds, and capital issuances in our perpetual affiliates. • Outflows represent distributions and redemptions of capital from liquid and perpetual capital. • Distributions represent quarterly distributions from perpetual affiliates as well as returns of committed capital (excluding market valuation adjustments), redemptions and expiry of uncalled commitments within our private funds. • Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices. • Other includes changes in net non-recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments. Uncalled Fund Commitments Total Uncalled Fund Commitments includes capital callable from fund investors, including funds outside of their investment period, for which capital is callable for follow-on investments. 60 Fee-Bearing Capital Diversification AS AT DEC 31 (BILLIONS) Long-term Private Funds As of December 31, 2025, we managed approximately $285 billion of Fee-Bearing Capital across a diverse range of long-term private funds that target opportunistic (20%+, gross), value-add (15%-16%, gross), core and core plus (9%-13%, gross) returns. These funds are generally closed-end and have a long duration, typically committed for 10 years with 2 one-year extension options. On these products, we earn: • Diversified and long-term base management fees, typically on committed capital or invested capital, depending on the nature of the fund and where the fund is in its life, • Transaction and advisory fees on co-investment capital that we raise and deploy alongside our long-term private funds, which vary based on transaction agreements, and • Carried interest or performance fees, which entitle us to a portion of overall fund profits, provided that investors receive a minimum prescribed preferred return. Carried interest is typically paid towards the end of the life of a fund after capital has been returned to investors and may be subject to “clawback” until all investments have been monetized and minimum investment returns are sufficiently assured. BN is entitled to receive 33.3% of the carried interest on new sponsored funds of BAM and will retain all of the carried interest earned on our existing mature funds. Permanent Capital and Perpetual Strategies As of December 31, 2025, we managed approximately $241 billion of Fee-Bearing Capital across our permanent capital vehicles, perpetual core, and core plus private funds. On these products, we earn: • Long-term perpetual base management fees, which are based on the market capitalization or NAV of our permanent capital vehicles and on the NAV of our perpetual private funds. • Stable incentive distribution fees from BEP and BIP, which are linked to the growth in cash distributions paid to investors above a predetermined hurdle. Both BEP and BIP have a long-standing track record of growing distributions annually within their target range of 5-9%. 61 • Performance fees from BBU are based on unit price performance above a prescribed high watermark price, which are not subject to clawback, as well as carried interest on our perpetual private funds. Liquid Strategies As of December 31, 2025, we managed approximately $77 billion of Fee-Bearing Capital across our liquid strategies, which included capital that we manage on behalf of our publicly listed funds and separately managed accounts, with a focus on fixed income and equity securities across real estate, infrastructure, and natural resources. On these products, we earn: • Base management fees, which are based on committed capital or fund NAV, and • Performance income based on investment returns above a minimum prescribed return. Analysis of Key Non-GAAP Financial and Operating Measures The following section contains a discussion and analysis of key financial and operating measures utilized in managing our business, including for performance measurement, capital allocation, and valuation purposes. For further detail on our non-GAAP and performance measures, please refer to “Part II—Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”, in this report. Fee-Bearing Capital The following tables summarize Fee-Bearing Capital as at December 31, 2025, 2024 and 2023: AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Infrastructure $ 47,950 $ 58,448 $ — $ 106,398 Renewable power and transition 39,068 28,177 — 67,245 Private equity 38,859 9,147 — 48,006 Real estate 72,045 29,637 — 101,682 Credit 86,892 115,103 77,388 279,383 December 31, 2025 $ 284,814 $ 240,512 $ 77,388 $ 602,714 AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Infrastructure $ 45,738 $ 51,312 $ — $ 97,050 Renewable power and transition 34,813 23,044 — 57,857 Private equity 37,123 8,067 — 45,190 Real estate 69,689 23,940 — 93,629 Credit 74,697 102,193 67,925 244,815 December 31, 2024 $ 262,060 $ 208,556 $ 67,925 $ 538,541 AS AT (MILLIONS) Long-term private funds Permanent capital and perpetual strategies Liquid strategies Total Infrastructure $ 47,345 $ 47,290 $ — $ 94,635 Renewable power and transition 29,663 22,700 — 52,363 Private equity 33,249 5,600 — 38,849 Real estate 66,038 27,406 — 93,444 Credit 69,046 45,723 62,938 177,707 December 31, 2023 $ 245,341 $ 148,719 $ 62,938 $ 456,998 62 The changes in Fee-Bearing Capital are set out in the following tables for the years ended December 31, 2025, 2024 and 2023: AS AT AND FOR THE YEAR ENDED (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total December 31, 2024 $ 97,050 $ 57,857 $ 45,190 $ 93,629 $ 244,815 $ 538,541 Inflows 5,888 10,394 5,302 16,234 53,026 90,844 Outflows — — — (242) (21,918) (22,160) Distributions (4,395) (3,453) (1,116) (6,721) (11,129) (26,814) Market valuation 6,083 5,495 2,004 (84) 11,269 24,767 Other 1,772 (3,048) (3,374) (1,134) 3,320 (2,464) Change 9,348 9,388 2,816 8,053 34,568 64,173 December 31, 2025 $ 106,398 $ 67,245 $ 48,006 $ 101,682 $ 279,383 $ 602,714 AS AT AND FOR THE YEAR ENDED (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total December 31, 2023 $ 94,635 $ 52,363 $ 38,849 $ 93,444 $ 177,707 $ 456,998 Inflows 5,313 8,670 3,714 9,074 102,211 128,982 Outflows (11) — — (481) (27,396) (27,888) Distributions (2,378) (1,594) (1,302) (4,054) (8,700) (18,028) Market valuation 3,669 (704) 1,610 (2,169) 6,074 8,480 Other (4,178) (878) 2,319 (2,185) (5,081) (10,003) Change 2,415 5,494 6,341 185 67,108 81,543 December 31, 2024 $ 97,050 $ 57,857 $ 45,190 $ 93,629 $ 244,815 $ 538,541 AS AT AND FOR THE YEAR ENDED (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total December 31, 2022 $ 82,752 $ 46,412 $ 39,316 $ 95,633 $ 153,750 $ 417,863 Inflows 12,523 5,612 4,424 10,168 40,455 73,182 Outflows (6) — — (127) (20,228) (20,361) Distributions (2,929) (1,442) (1,201) (4,690) (5,989) (16,251) Market valuation 2,241 1,757 (816) (2,841) 7,703 8,044 Other 54 24 (2,874) (4,699) 2,016 (5,479) Change 11,883 5,951 (467) (2,189) 23,957 39,135 December 31, 2023 $ 94,635 $ 52,363 $ 38,849 $ 93,444 $ 177,707 $ 456,998 For the year ended December 31, 2025 Fee-Bearing Capital was $603 billion as at December 31, 2025 compared to $539 billion as at December 31, 2024, representing a net increase of $64.2 billion, or 12%: • Inflows of $90.8 billion include capital commitments and contributions to our long-term private funds and liquid strategies, and issuances from our perpetual affiliates. During the year ended December 31, 2025, infrastructure inflows of $5.9 billion were predominantly attributable to fundraising from our co-investment vehicles and perpetual strategies as well as the issuance of debt from BIP. Renewable power and transition inflows of $10.4 billion were primarily attributable to closes on the second vintage of our flagship global transition fund and our catalytic transition fund, inflows from other long-term private funds and perpetual strategies, and the issuance of debt from BEP. Private equity inflows of $5.3 billion were driven by new commitments to our co-investment vehicles as well as fundraising from complementary strategies and other long-term private funds. Real estate inflows of $16.2 billion were attributable to capital deployment and fundraising from our real estate flagship funds including co-invest capital as well as opportunistic debt repayment within our permanent real estate vehicle. Credit inflows of $53.0 billion were primarily driven by insurance capital inflows from BWS, fundraising and capital deployed across long-term, perpetual, and liquid strategies, and fundraising associated with our partner managers. 63 • Outflows represent distributions and redemptions of capital from liquid and perpetual strategies. During the year ended December 31, 2025, outflows of $22.2 billion were predominantly driven by outflows of related to BWS insurance capital as well as redemptions within certain of our liquid and perpetual strategies. • Distributions represent quarterly distributions from our perpetual affiliates as well as returns of committed capital and redemptions and expiry of uncalled commitments within our private funds. During the year ended December 31, 2025, distributions of $26.8 billion were driven by $8.9 billion from Oaktree long-term private funds, $6.3 billion from infrastructure, private equity, and real estate flagship funds, $4.7 billion from our listed affiliates and BPG, $2.6 billion attributable to partner managers, and the remainder attributable to certain complementary strategies as well as various earlier vintages of our long-term private funds. • Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices. During the year ended December 31, 2025, increases of $24.8 billion were driven by $12.0 billion as a result of higher market prices of BEP, BIP, and BBU, $10.0 billion attributable to liquid and perpetual credit strategies, $2.2 billion attributable to certain credit long-term private funds, and $1.3 billion attributable to perpetual infrastructure strategies. • Other includes $2.5 billion of changes in net recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments. Private equity movements of $3.4 billion primarily relate to lower valuations within earlier vintages of our flagship funds and co-investment vehicles and debt repayment by BBU. Credit movements of $3.3 billion were primarily attributable to the addition of Angel Oak partially offset by changes in fee-basis associated with certain perpetual and long-term private fund vehicles. Renewable power and transition changes of $3.0 billion were as a result of a one-time rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition strategies based on investment mix as well as debt repayment by BEP. Infrastructure increases of $1.8 billion were driven by a rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition based on investment mix. Real estate changes of $1.1 billion primarily related to lower valuations within an earlier vintage flagship fund. The impact of foreign exchange contributed to certain movements of Fee-Bearing Capital within long-term private funds across the business. 64 Distributable Earnings FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Base management fees 1 $ 4,896 $ 4,233 $ 3,956 Incentive distributions 466 424 378 Performance fees 95 — — Transaction and advisory fees 30 49 47 Fee Revenues 5,487 4,706 4,381 Less: direct costs 1,2 (2,410) (2,136) (2,014) 3,077 2,570 2,367 Less: Fee-Related Earnings not attributable to BAM (82) (114) (126) Fee-Related Earnings 3 $ 2,995 $ 2,456 $ 2,241 Cash taxes (377) (301) (196) Add back: equity-based compensation costs 4 44 38 39 Add back: Investment and other income (net of interest expense) 5 33 170 160 Distributable Earnings $ 2,695 $ 2,363 $ 2,244 1. Base management fees and direct costs are presented on a 100% basis for BAM and BAM's investment in Oaktree. 2. Direct costs include compensation expense, other operating expenses and general, administrative, and other expenses, and related Oaktree direct costs at 100%. 3. Fee-Related Earnings include Oaktree’s Fee-Related Earnings at our approximate 74% ownership interest (December 31, 2024 – 73%). 4. This adjustment adds back equity-based compensation costs. 5. This adjustment adds back other income associated with our portion of partly owned subsidiaries’ investment income, realized carried interest, interest income and interest expense. For the year ended December 31, 2025 Fee Revenues for the year ended December 31, 2025 were $5.5 billion, an increase of $781 million or 17% compared to the prior year. This increase was predominantly due to an increase in base management fees of $663 million or 16%, driven by $123 million of incremental fee revenue from the fifth vintage of our flagship real estate fund and $114 million from the second vintage of our flagship global transition fund. Additionally, $235 million of incremental Fee Revenues were primarily as a result of earnings from partner manager acquisitions during the year which are not reflected in the comparative year. BAM also realized additional fees of $174 million from fundraising and growth across our private funds and complementary strategies and $48 million of higher Fee Revenues from our listed affiliates as a result of higher share prices of BIP, BEP, and BBU as well as a higher NAV of BPG. In addition, we recognized incremental fee revenue of $55 million from BWS due to the AEL Mandate. These increases were partially offset by $86 million in lower fees from certain credit strategies and earlier vintages of flagship funds due to distributions made to clients during the year. Incentive distributions increased by $42 million or 10% as a result of an increase in BEP and BIP's quarterly dividend over the prior year of 5% and 6%, respectively. Performance fees of $95 million for the year were earned from BBU as BBU's share price surpassed its high watermark threshold above which a performance fee based on $31.53 is earned by BAM. This increase in the share price set a go forward high watermark of $33.81 per unit. BBU's high watermark threshold was not reached in 2024, thus no performance fees were earned in the prior year. Transaction and advisory fees also decreased by $19 million as the prior year reflected higher fees from our renewable power and transition, and private equity strategies offset by higher transaction revenues from infrastructure in the current year. Direct costs increased by $274 million or 13% from the prior year as we continue to scale our business. Fee-Related Earnings not attributable to BAM decreased by $32 million due to lower Fee-Related Earnings from Oaktree. Distributable Earnings were $2.7 billion for the year ended December 31, 2025, an increase of $332 million or 14% compared to the prior year. The increase was primarily driven by $539 million of higher Fee-Related Earnings, partially offset by $137 million of lower investment income primarily due to higher interest expense as a result of our corporate debt as well as lower interest income earned on our cash deposit with BN, and $76 million of higher cash taxes on Fee-Related Earnings. 65 Investment Strategy Results In each of our product categories, we invest globally in various investment strategies, each benefiting from strong secular tailwinds that provide an expanding multi-trillion dollar investable universe. Our investment strategies are (a) infrastructure, (b) renewable power and transition, (c) private equity, (d) real estate, and (e) credit. The following tables summarize Fee-Bearing Capital and Fee Revenues by investment strategy: Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Infrastructure $ 106,398 $ 97,050 $ 94,635 Renewable power and transition 67,245 57,857 52,363 Private equity 48,006 45,190 38,849 Real estate 101,682 93,629 93,444 Credit 279,383 244,815 177,707 Total Fee-Bearing Capital $ 602,714 $ 538,541 $ 456,998 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Infrastructure $ 1,287 $ 1,202 $ 1,216 Renewable power and transition 828 642 595 Private equity 556 470 475 Real estate 1,090 968 920 Credit 1,726 1,424 1,175 Total Fee Revenues $ 5,487 $ 4,706 $ 4,381 66 Infrastructure Summary of Key Financial and Operating Measures The following charts provide the Fee-Bearing Capital of our Infrastructure investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023. Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended. Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 47,950 $ 45,738 $ 47,345 Permanent capital and perpetual strategies 58,448 51,312 47,290 Total Fee-Bearing Capital $ 106,398 $ 97,050 $ 94,635 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 97,050 $ 94,635 $ 82,752 Inflows 5,888 5,313 12,523 Outflows — (11) (6) Distributions (4,395) (2,378) (2,929) Market valuation 6,083 3,669 2,241 Other 1,772 (4,178) 54 Change 9,348 2,415 11,883 Balance, ending $ 106,398 $ 97,050 $ 94,635 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $9.3 billion or 10% to $106 billion. The $5.9 billion of inflows were primarily driven by perpetual strategies of $2.9 billion, long-term private funds of $2.2 billion, and debt and equity issuances from BIP of $730 million. In addition, Fee-Bearing Capital increased by $4.7 billion from a higher market capitalization of BIP due to increases in its share price and $1.3 billion of favorable market valuations associated with certain perpetual strategies. Other increases of $1.8 billion predominantly related to the rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition within the latest vintage of our infrastructure flagship fund based on investment mix. These increases were partially offset by distributions of $4.4 billion paid to investors in our long-term private funds and perpetual strategies as well as BIP unitholders. 67 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds Flagship funds $ 364 $ 369 $ 371 Co-investment and other funds 1 6 18 365 375 389 Perpetual strategies BIP 1 414 393 401 Co-investment and other funds 172 133 99 586 526 500 Catch-up fees — 1 37 Transaction and advisory fees 16 5 24 Total management and advisory fees 967 907 950 Incentive distributions 2 320 295 266 Total Fee Revenues $ 1,287 $ 1,202 $ 1,216 1. BIP Fee-Bearing Capital as at December 31, 2025 is $35.1 billion (December 31, 2024 – $31.9 billion) and includes $5.4 billion of net debt (December 31, 2024 - $4.9 billion). 2. Consists solely of incentive distributions earned from BIP. For the year ended December 31, 2025 Fee Revenues increased by $85 million or 7% for the year ended December 31, 2025 relative to the year ended December 31, 2024. The increase was primarily driven by $39 million of higher Fee Revenues due to capital raised and deployed from certain perpetual strategies and $21 million related to BIP as a result of a higher share price during the year. In addition, Fee Revenues benefited from $11 million of higher transaction and advisory fees associated with our flagship infrastructure funds and an increase in incentive distributions of $25 million due to a 6% increase in BIP's quarterly dividend. These increases were partially offset by a $10 million decrease in Fee Revenues as the prior year reflected higher fees from earlier vintages of flagship funds and complementary strategies. Segment Earnings FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Segment Revenues $ 967 $ 907 $ 950 Segment Expenses Compensation and benefits ( 255 ) (235) (223) Other operating expenses (92) (71) (73) Segment Earnings $ 620 $ 601 $ 654 For the year ended December 31, 2025 Segment Earnings increased by $19 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by BIP due to a higher share price during the year and our complementary perpetual strategies, partially offset by higher Segment Expenses as we continue to scale our business. 68 Renewable Power and Transition Summary of Key Financial and Operating Measures The following charts provide the Fee-Bearing Capital of our Renewable Power and Transition investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023. Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended. Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 39,068 $ 34,813 $ 29,663 Permanent capital and perpetual strategies 28,177 23,044 22,700 Total Fee-Bearing Capital $ 67,245 $ 57,857 $ 52,363 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 57,857 $ 52,363 $ 46,412 Inflows 10,394 8,670 5,612 Outflows — — — Distributions (3,453) (1,594) (1,442) Market valuation 5,495 (704) 1,757 Other (3,048) (878) 24 Change 9,388 5,494 5,951 Balance, ending $ 67,245 $ 57,857 $ 52,363 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $9.4 billion or 16% to $67 billion. This increase was predominantly driven by $10.4 billion of inflows of which $5.4 billion was from the final closes within the second vintage of our flagship global transition fund, $2.1 billion of fundraising and capital deployments within our long-term as well as permanent and perpetual fund strategies, and $1.8 billion from fundraising for our catalytic transition fund. In addition, Fee-Bearing Capital increased by $5.5 billion predominantly from a higher market capitalization of BEP due to an increase in its share price during the year. These increases were partially offset by $3.5 billion of distributions to BEP's unitholders and investors in our long-term private funds and perpetual strategies. Movement of $3.0 billion in other was predominantly due to a rebalancing of Fee-Bearing Capital between infrastructure and renewable power and transition within the latest vintage of our infrastructure flagship fund based on investment mix as well as debt repayment by BEP. 69 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds Flagship funds $ 330 $ 259 $ 239 Co-investment and other funds 39 2 11 369 261 250 Perpetual strategies BEP 1 222 204 205 Co-investment and other funds 39 20 9 261 224 214 Catch-up fees 46 9 10 Transaction and advisory fees 6 19 9 Total management and advisory fees 682 513 483 Incentive distributions 2 146 129 112 Total Fee Revenues $ 828 $ 642 $ 595 1. BEP Fee-Bearing Capital as at December 31, 2025 is $25.8 billion (December 31, 2024 – $21.5 billion) and includes net debt of $3.7 billion (December 31, 2024 - $3.9 billion). 2. Consists solely of incentive distributions earned from BEP. For the year ended December 31, 2025 Fee Revenues increased by $186 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. Total management and advisory fees increased by $169 million anchored by long-term private funds which generated $78 million of higher fee revenues from subsequent closes of the second vintage of our flagship global transition fund and $36 million of incremental fee revenues from certain complementary strategies, partially offset by $9 million of lower fee revenues from older vintages of certain long-term private funds. In addition, our perpetual strategies earned $37 million of higher fee revenues primarily driven by an increase of $19 million from certain of our complementary strategies and $18 million of higher fee revenues from BEP as a result of a higher average market capitalization in the current year. Catch-up fees increased by $37 million as a result of subsequent closes in the second vintage of our global transition fund and catalytic transition fund, which were partially offset by $13 million of lower transaction and advisory fees in the current year. In addition, incentive distributions from BEP increased by $17 million due to a 5% increase in distributions compared to the prior year. Segment Earnings FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Segment Revenues $ 682 $ 513 $ 483 Segment Expenses Compensation and benefits ( 168 ) (132) (116) Other operating expenses (63) (35) (31) Segment Earnings $ 451 $ 346 $ 336 For the year ended December 31, 2025 Segment Earnings increased by $105 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by additional closes of the second vintage of our flagship global transition fund and inflows from perpetual funds resulting in incremental fee revenues. In addition, increases to Segment Revenues were as a result of a higher average market capitalization of BEP in the current year. These increases were partially offset by higher Segment Expenses to support the scaling of our business. 70 Private Equity Summary of Key Financial and Operating Measures The following charts provide the Fee-Bearing Capital of our Private Equity investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023. Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended. Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 38,859 $ 37,123 $ 33,249 Permanent capital and perpetual strategies 9,147 8,067 5,600 Total Fee-Bearing Capital $ 48,006 $ 45,190 $ 38,849 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 45,190 $ 38,849 $ 39,316 Inflows 5,302 3,714 4,424 Outflows — — — Distributions (1,116) (1,302) (1,201) Market valuation 2,004 1,610 (816) Other (3,374) 2,319 (2,874) Change 2,816 6,341 (467) Balance, ending $ 48,006 $ 45,190 $ 38,849 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $2.8 billion or 6% to $48 billion. The increase was primarily driven by inflows of $5.3 billion associated with certain long-term private funds and co-investments made within our complementary strategies. In addition, market valuation increases of $2.0 billion were primarily driven by BBU due to a higher share price during the year. These increases were partially offset by other changes associated with write-downs from earlier vintages of our flagship funds and co-investment vehicles resulting in a decrease of $1.5 billion. In addition, changes in other included $1.8 billion from the impact of changes in fee-basis and foreign exchange on certain co-investment vehicles and lower corporate debt at BBU. Distributions of $1.1 billion were driven by our fourth flagship fund, other long-term private funds, and BBU. 71 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds Flagship funds $ 156 $ 162 $ 177 Other long-term funds 192 175 174 Co-investment and other funds 9 10 10 357 347 361 Perpetual strategies BBU 1 96 92 87 96 92 87 Catch-up fees — 7 16 Transaction and advisory fees 8 24 11 Total management and advisory fees 461 470 475 Performance fees 2 95 — — Total Fee Revenues $ 556 $ 470 $ 475 1. BBU Fee-Bearing Capital as at December 31, 2025 was $9.1 billion (December 31, 2024 – $8.1 billion) and includes net debt of $1.3 billion (December 31, 2024 - $2.1 billion). 2. Consists solely of performance fees earned from BBU. For the year ended December 31, 2025 Fee Revenues increased by $86 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. This increase was primarily driven by performance fees of $95 million earned as a result of the share price of BBU exceeding the previous high watermark threshold, attributable to an increase in the volume weighted average unit price during the year. The high watermark threshold to earn additional performance fees as at December 31, 2025 was $33.81 per unit, reflecting the adjusted high watermark. In addition, incremental fee revenues from our complementary strategies and a higher share price of BBU contributed to $21 million of higher fee revenues. These increases were partially offset by $6 million of lower fee revenues from our earlier vintages of our flagship funds as a result of the end of the investment period. Furthermore, catch-up and transaction and advisory fees decreased by $23 million as the prior year reflected higher catch-up fees from the sixth vintage of our flagship fund and higher transaction and advisory fee revenue. Segment Earnings FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Segment Revenues $ 450 $ 470 $ 475 Segment Expenses Compensation and benefits (244) (235) (229) Other (85) (74) (69) Segment Earnings $ 121 $ 161 $ 177 For the year ended December 31, 2025 Segment Earnings decreased by $40 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. Segment Earnings were lower in the current year as Segment Revenues reflected lower management fees from flagship funds as a result of monetizations and distributions during the year as well as higher transaction and advisory fees and catch-up fees recognized in the prior year. These decreases were offset by higher Segment Revenues associated with our complementary strategies. Segment Earnings also decreased as a result of higher Segment Expenses associated with growth in the business . 72 Real Estate Summary of Key Financial and Operating Measures The following charts provide the Fee-Bearing Capital of our Real Estate investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023. Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended. Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 72,045 $ 69,689 $ 66,038 Permanent capital and perpetual strategies 29,637 23,940 27,406 Total Fee-Bearing Capital $ 101,682 $ 93,629 $ 93,444 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 93,629 $ 93,444 $ 95,633 Inflows 16,234 9,074 10,168 Outflows (242) (481) (127) Distributions (6,721) (4,054) (4,690) Market valuation (84) (2,169) (2,841) Other (1,134) (2,185) (4,699) Change 8,053 185 (2,189) Balance, ending $ 101,682 $ 93,629 $ 93,444 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $8.1 billion, or 9% to $102 billion. The increase was predominantly driven by $16.2 billion of inflows of which $5.6 billion was attributable to the opportunistic repayment of debt within BPG, $4.7 billion from the fifth vintage of our flagship fund, as well as $3.6 billion from co-investment capital and capital deployments across other flagship funds. In addition, $2.3 billion of inflows were attributable to certain long-term private funds and complementary strategies. These increases were partially offset by $6.7 billion of distributions from BPG, flagship funds and other long-term private funds. In addition, other changes of $1.1 billion were as a result of lower valuations within an earlier vintage flagship fund as well as the net impact of foreign exchange. 73 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds Flagship funds $ 505 $ 457 $ 396 Co-investment and other funds 221 217 228 726 674 624 Perpetual strategies BPG 1 201 195 196 Co-investment and other funds 89 74 93 290 269 289 Catch-up fees 74 25 4 Total Fee Revenues $ 1,090 $ 968 $ 920 1. BPG Fee-Bearing Capital (of which BPY represents substantially all of the balance) as at December 31, 2025 is $19.0 billion (December 31, 2024 – $16.6 billion). For the year ended December 31, 2025 During the year ended December 31, 2025, Fee Revenues increased by $122 million or 13% relative to the year ended December 31, 2024. This increase was driven by $76 million of higher Fee Revenues predominantly from the latest vintage of our flagship fund, partially offset by $24 million of lower Fee Revenues from our earlier flagship fund vintages due to realizations. In addition, Fee Revenues from BPG and other perpetual strategies increased by $21 million as a result of the aforementioned growth in Fee-Bearing Capital. Furthermore, Fee Revenues included higher catch-up fees of $49 million primarily from follow-on closes for our fifth flagship fund. Segment Earnings FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Segment Revenues $ 1,083 $ 968 $ 920 Segment Expenses Compensation and benefits ( 364 ) (340) (360) Other operating expenses (116) (121) (132) Segment Earnings $ 603 $ 507 $ 428 For the year ended December 31, 2025 Segment Earnings increased by $96 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues associated with subsequent closes of our fifth flagship fund, partially offset by higher Segment Expenses due to scaling of our business. 74 Credit Summary of Key Financial and Operating Measures The following charts provide the Fee-Bearing Capital of our Credit investment strategy as at December 31, 2025, 2024 and 2023, and Fee Revenues for the years ended December 31, 2025, 2024 and 2023. Fee-Bearing Capital Fee Revenues AS AT DEC 31 (BILLIONS) FOR THE YEARS ENDED DEC 31 (MILLIONS) The following provides explanations of significant movements in Fee-Bearing Capital for the years then ended. Fee-Bearing Capital AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Long-term private funds $ 86,892 $ 74,697 $ 69,046 Permanent capital and perpetual strategies 115,103 102,193 45,723 Liquid strategies 77,388 67,925 62,938 Total Fee-Bearing Capital $ 279,383 $ 244,815 $ 177,707 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 244,815 $ 177,707 $ 153,750 Inflows 53,026 102,211 40,455 Outflows (21,918) (27,396) (20,228) Distributions (11,129) (8,700) (5,989) Market valuation 11,269 6,074 7,703 Other 3,320 (5,081) 2,016 Change 34,568 67,108 23,957 Balance, ending $ 279,383 $ 244,815 $ 177,707 For the year ended December 31, 2025 During the year ended December 31, 2025, Fee-Bearing Capital increased by $34.6 billion or 14% to $279 billion, primarily due to $24.5 billion of capital deployed within long-term private funds as well as perpetual and liquid credit strategies, $22.5 billion of insurance capital inflows from BWS, $3.7 billion of capital raised within our partner managers, and $2.3 billion of fundraising from our real estate and infrastructure debt strategies. In addition, we recognized $11.3 billion of market valuation increases associated with our liquid and perpetual strategies as well as certain long-term private funds which further increased Fee-Bearing Capital. These increases were partially offset by $11.0 billion of redemptions within certain of our liquid and perpetual strategies and $10.9 billion of outflows associated with BWS insurance capital. In addition, distributions of $8.5 billion from our long-term private funds and complementary strategies, and $2.6 billion from our partner managers partially reduced Fee-Bearing Capital. Credit changes in other primarily related to the acquisition of Angel Oak as well as the impact of foreign exchange revaluation across perpetual and liquid strategies partially offset by changes in fee-basis associated with certain perpetual and long-term private fund vehicles. 75 Fee Revenues FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management and advisory fees Long-term private funds $ 1,002 $ 781 $ 678 Permanent and perpetual strategies 463 400 266 Liquid strategies 1 261 242 231 Transaction and advisory fees — 1 — Total Fee Revenues 2 $ 1,726 $ 1,424 $ 1,175 1. Represents open-end funds within our credit strategies, and Oaktree's investment in a fixed income manager, as well as in publicly listed securities. 2. Across the various categories, Fee-Bearing Capital from BWS as at December 31, 2025 was $108 billion which generated $234 million of Fee Revenues under the investment management agreement for the year ended December 31, 2025 (December 31, 2024 - Fee-Bearing Capital of $92 billion and Fee Revenues of $167 million). For the year ended December 31, 2025 Fee Revenues increased by $302 million or 21% for the year ended December 31, 2025 relative to the year ended December 31, 2024. Fees from our long-term private funds increased by $221 million primarily due to higher fees earned in our partner managers, most notably Castlelake, as well as other complementary strategies. Fees from permanent and perpetual strategies increased by $63 million as the current year reflected an additional quarter of fees from the AEL Mandate relative to the prior year, and capital deployed across our private credit strategies. In addition, liquid strategies generated incremental fee revenues of $19 million driven by net inflows and positive valuation changes resulting in higher Fee-Bearing Capital. Segment Earnings FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Segment Revenues $ 1,633 $ 1,402 $ 1,149 Segment Expenses Compensation and benefits ( 643 ) (628) (563) Other (289) (253) (204) Segment Earnings $ 701 $ 521 $ 382 For the year ended December 31, 2025 Segment Earnings increased $180 million for the year ended December 31, 2025 relative to the year ended December 31, 2024. The increase in Segment Earnings was driven by higher Segment Revenues as a result of incremental earnings from our partner managers, most notably from Castlelake relative to the prior year, partially offset by higher Segment Expenses as a result of growth in the business. 76 Reconciliation of U.S. GAAP to Non-GAAP Measures Reconciliations of Distributable Earnings, Fee-Related Earnings and Fee Revenues to the most directly comparable financial measures calculated and presented in conformity with U.S. GAAP are presented below. In addition to net income and revenue, management assesses the performance of its business based on these non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, net income or other financial measures presented in conformity with U.S. GAAP. Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings The following presents a reconciliation of net income to Fee-Related Earnings and Distributable Earnings for the years ended December 31, 2025, 2024 and 2023. FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Net Income $ 2,398 $ 2,108 $ 2,137 Add or subtract the following: Provision for taxes (a) 527 438 417 Depreciation and amortization (b) 68 14 14 Carried interest allocations (c) (209) (16) (399) Carried interest allocation compensation (c) 146 93 86 Other income and expenses (d) 250 93 129 Interest expense (e) 115 22 14 Interest and dividend revenue (e) (129) (143) (172) Other revenues (f) (570) (372) (300) Share of income from equity method investments (g) (402) (339) (167) Fee-related earnings of equity method investments at our share (g) 494 330 271 Compensation costs recovered from affiliates (h) 298 218 156 Non-recurring restructuring costs (i) — — 35 Other adjustments (j) 9 10 20 Fee-Related Earnings $ 2,995 $ 2,456 $ 2,241 Investment and other income (net of interest expense) (k) 33 170 160 Equity-based compensation expense (l) 44 38 39 Cash taxes (m) (377) (301) (196) Distributable Earnings $ 2,695 $ 2,363 $ 2,244 (a) This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of BAM. (b) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings as well as certain capital depreciation costs recharged from BAM's affiliates. (c) These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense. Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized. (d) This adjustment removes other income and expenses associated with fair value changes for consolidated entities and funds. (e) This adjustment removes interest and charges paid or received by consolidated entities and funds. (f) This adjustment removes other revenues earned that are non-cash in nature. (g) These adjustments remove our share of equity method investments' earnings, including items (a) to (f) above and include its share of equity method investments' Fee-Related Earnings. (h) This item adds back compensation costs that will be borne by affiliates. (i) This item represents non-recurring restructuring costs that are not considered as part of the ongoing asset management business (j) This adjustment adds base management fees earned from funds that are eliminated upon consolidation and other items. (k) This adjustment adds back other income associated with our portion of partly owned subsidiaries’ investment income, realized carried interest, interest income received and interest expense. (l) This adjustment adds back equity-based compensation costs. (m) Represents the impact of cash taxes paid by the business. 77 Reconciliation of Revenues to Fee Revenues The following presents our reconciliation of base management and advisory fees to Fee Revenues for the years ended December 31, 2025, 2024 and 2023. FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Base management and advisory fees $ 3,384 $ 2,957 $ 2,766 Incentive fees (a) 561 424 376 Fee Revenues from equity method investments (b) 1,569 1,335 1,240 Other adjustments (c) (27) (10) (1) Fee Revenues $ 5,487 $ 4,706 $ 4,381 (a) This adjustment adds incentive distributions and performance fees that are included in Fee Revenues. (b) This adjustment adds Oaktree management fees at 100% ownership and our proportionate share of earnings from other partner managers excluding Oaktree. (c) This adjustment involves base management fees earned from funds that are eliminated upon consolidation and other items. 78 Fee Revenues by Geography The majority of our revenues are earned in the U.S. The following tables set out Fee Revenues disaggregated by investment strategy and geography. FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total Management and advisory fees, net United States $ 143 $ 111 $ 225 $ 653 $ 1,419 $ 2,551 United Kingdom 223 221 82 195 222 943 Canada 401 203 74 50 36 764 Other 200 147 80 192 49 668 Incentive distributions 320 146 95 — — 561 $ 1,287 $ 828 $ 556 $ 1,090 $ 1,726 $ 5,487 FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total Management and advisory fees, net United States $ 124 $ 111 $ 227 $ 634 $ 1,055 $ 2,151 United Kingdom 182 156 84 16 206 644 Canada 354 159 74 40 40 667 Other 247 87 85 278 123 820 Incentive distributions 295 129 — — — 424 $ 1,202 $ 642 $ 470 $ 968 $ 1,424 $ 4,706 FOR THE YEAR ENDED DECEMBER 31, 2023 (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total Management and advisory fees, net United States of America $ 210 $ 103 $ 222 $ 642 $ 864 $ 2,041 United Kingdom 204 151 69 191 148 763 Canada 422 176 104 44 12 758 Other 114 53 80 43 151 441 Incentive distributions 266 112 — — — 378 $ 1,216 $ 595 $ 475 $ 920 $ 1,175 $ 4,381 79 Liquidity and Capital Resources Liquidity BAM maintains sufficient liquidity at all times, enabling it to participate in investment opportunities as they arise, withstand sudden adverse changes in economic conditions, and sustain distributions. Typical cash flow activities include earning fees on assets managed, paying operating expenses, and paying cash dividends to shareholders. From time to time, BAM may draw on a revolving credit facility to bridge timing differences between the receipt and outflow of funds. It may also issue additional debt to finance growth through strategic investments. The primary sources of liquidity, which we refer to as corporate liquidity, consist of cash, short-term financial assets, as well as the undrawn portions of the revolving credit facilities. As at December 31, 2025, corporate liquidity for BAM is $3.0 billion. This consists of $1.6 billion in cash and short term financial assets that are convertible to cash within twelve months, as well as $1.4 billion in undrawn credit facilities. This liquidity can be deployed for use without any material tax consequences to support BAM in funding strategic transactions as well as seeding new investment products. • On November 18, 2025, BAM completed a debt offering, issuing $600 million of 5-year bonds at a fixed annual coupon of 4.653% and $400 million of 10-year bonds at a fixed annual coupon of 5.298%. BAM previously issued $750 million of 30-year bonds at a fixed annual coupon of 6.077% on September 9, 2025 and $750 million of 10-year bonds at a fixed annual coupon of 5.795% on April 24, 2025. • On August 29, 2024, a $750 million five-year revolving credit facility was established through bilateral agreements with a group of lenders. On September 5, 2025, BAM finalized the upsize of the facility from $750 million to $1.1 billion. 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. As at December 31, 2025, the facility is undrawn. • On November 8, 2022, a $300 million revolving credit facility was established, with BN as lender. U.S. dollar draws are subject to the U.S. Base Rate or SOFR plus a margin of 165 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 165 basis points. As at December 31, 2025, the facility is undrawn. The following table presents our deployable capital: Corporate (a) Group (b) AS AT DECEMBER 31, (MILLIONS) 2025 2024 2025 2024 Cash and financial assets, net $ 1,611 $ 792 $ 63,189 $ 54,329 Undrawn committed credit facilities 1,350 1,050 9,565 7,928 Uncalled private fund commitments 110,854 91,463 Total deployable capital $ 2,961 $ 1,842 $ 183,608 $ 153,720 (a) Corporate deployable capital represents the corporate liquidity of BAM. (b) Group deployable capital consists of: (1) corporate liquidity of BAM, consolidated funds, and the perpetual affiliates, and (2) uncalled private fund commitments, which are third-party commitments available for drawdown in the private funds of BAM. Uncalled Fund Commitments The following presents our Uncalled Fund Commitments as of December 31, 2025 by period and December 31, 2024: AS AT DECEMBER 31, (MILLIONS) 2026 2027 2028 2029 2030 + Total 2025 Dec. 2024 Infrastructure $ 190 $ — $ 208 $ — $ 12,171 $ 12,569 $ 12,848 Renewable power and transition — — 801 — 21,884 22,685 21,015 Private equity 271 125 472 465 11,890 13,223 11,360 Real estate 2,241 — — 2,447 17,895 22,583 15,645 Credit 2,815 938 144 1,967 33,930 39,794 30,595 $ 5,517 $ 1,063 $ 1,625 $ 4,879 $ 97,770 $ 110,854 $ 91,463 Approximately $63 billion of the Uncalled Fund Commitments are currently not earning fees, but will become fee-bearing once the capital is invested. Once invested, we expect these commitments will earn approximately $630 million of additional Fee Revenues. 80 Capital Resources Clawback Obligations Performance allocations are subject to clawback to the extent that the performance allocations received to date with respect to a fund exceed the amount due to BAM based on cumulative results of that fund. The amounts and nature of our clawback obligations are described in Part II, Item 8, Note 2 “Summary of Significant Accounting Policies” of the consolidated financial statements of BAM as at December 31, 2025, and 2024, and for the years ended December 31, 2025, 2024, and 2023. Capital Requirements Certain U.S. and non-U.S. entities of BAM are subject to various investment advisor and other financial regulatory rules and requirements that may include minimum net capital requirements. See "Part I—Item 1. Business—Regulatory Matters". These requirements have been met for the year ended December 31, 2025. Contractual Obligations On January 31, 2019, a subsidiary of BAM committed $2.8 billion to BSREP III, of which $2.2 billion has been funded as at December 31, 2025 (December 31, 2024 – $2.1 billion). The remainder of the commitment will be funded by BN. In the normal course of business, BAM enters into contractual obligations which include commitments to provide bridge financing and other equity commitments. As at December 31, 2025, the Company had $6.6 billion of such commitments outstanding (2024 – $3.3 billion). 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. During the year ended December 31, 2025, BAM increased the facility from $750 million to $1.1 billion. As at December 31, 2025, the facility is undrawn. The following table presents the contractual obligations of BAM by payment periods: Payments Due by Period of BAM AS AT DECEMBER 31, 2025 (MILLIONS) Less than 1 Year 1 – 3 Years 4 – 5 Years After 5 Years Total Accounts payable and other, net $ 822 $ 384 $ 378 $ 807 $ 2,391 Due to affiliates 712 — — 8 720 Lease obligations 12 24 23 9 68 Corporate borrowings 1 — — 600 1,900 2,500 1. Excludes deferred financing costs Accounts payable and other, net of BAM represents amounts due to employees for equity-based compensations costs and carried interest compensation costs. Most awards have a vesting period of up to 5 years. Due to affiliates represents amounts owed to related parties associated with share-based compensation as well as carried interest compensation. Lease obligations represent expected payments associated with current leases entered into by the Company. Exposures to Financial Instruments As discussed elsewhere in this report, we utilize derivatives and other financial instruments in our business to manage risk and optimize the use of our capital. The notional and fair values of these instruments are disclosed in Part II, Item 8, Note 6 “Fair Value Measurements of Financial Instruments” and Note 8 “Derivatives,” to the consolidated financial statements of BAM as at December 31, 2025, and 2024 and for the years ended December 31, 2025, 2024, and 2023. Off-Balance Sheet Arrangements BAM may from time to time enter into guarantees given in respect of co-investments in which there is carried interest. The amount guaranteed is up to the carried interest amount paid to the General Partner, net of taxes. No known amounts are currently due or owed under these guarantees. Related Party Transactions BAM entered into a number of related party transactions with BN and other affiliates. See Part II, Item 8, Note 20 “Related Party Transactions” of the consolidated financial statements of BAM as at December 31, 2025, and 2024 and for the years ended December 31, 2025, 2024, and 2023. 81 BAM Dividends The dividends paid by BAM on outstanding securities for the years ended December 31, 2025, 2024, and 2023 are summarized in the table below. Distribution per Security 2025 2024 2023 Per Class A Share and Class B Share $ 1.75 $ 1.52 $ 1.28 Subsidiary Public Issuers BAM Finance LLC (the “U.S. Finco”) is a Delaware limited liability company formed on March 26, 2025 and is a subsidiary of the Company. As at December 31, 2025, the U.S. Finco had no debt outstanding. BAM Finance (Canada) Inc. (the “Canadian Finco”) was incorporated on March 26, 2025 under the Business Corporations Act (Ontario) and is a subsidiary of the Company. As at December 31, 2025, the Canadian Finco had no debt outstanding. The U.S. Finco and Canadian Finco (together the “Finance Debt Issuers”) have no independent activities, assets or operations other than in connection with any securities that they may issue. Any debt securities issued by the Finance Debt Issuers will be fully and unconditionally guaranteed as to payment of principal, premium (if any), interest and certain other amounts by the Company. During the year ended December 31, 2025, BAM's $750 million senior notes due 2035, $750 million senior notes due 2055, $600 million senior notes due 2030 and $400 million senior notes due 2036, were all issued directly by BAM. The following tables contain summarized financial information of the Company, U.S. Finco, Canadian Finco and non-guarantor subsidiaries: AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2025 (3) (MILLIONS) BAM U.S. Finco Canadian Finco Other subsidiaries of BAM (1) Consolidating Adjustments (2) BAM Consolidated Revenues $ 86 $ — $ — $ 7,684 $ (2,953) $ 4,817 Net income (loss) attributable to shareholders 2,905 — — 2,160 (2,580) 2,485 Total assets 11,452 — — 45,111 (39,516) 17,047 Total liabilities 3,334 — — 11,307 (7,904) 6,737 Preferred shares redeemable non-controlling interest — — — 1,398 — 1,398 AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) BAM U.S. Finco Canadian Finco Other subsidiaries of BAM (1) Consolidating Adjustments (2) BAM Consolidated Revenues $ 1,368 $ — $ — $ 5,474 $ (2,862) $ 3,980 Net income (loss) attributable to shareholders 1,460 — — 3,347 (2,639) 2,168 Total assets 13,558 — — 36,641 (36,042) 14,157 Total liabilities 4,806 — — 4,679 (6,519) 2,966 Preferred shares redeemable non-controlling interest — — — 2,103 — 2,103 AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2023 (MILLIONS) BAM U.S. Finco Canadian Finco Other subsidiaries of BAM (1) Consolidating Adjustments (2) BAM Consolidated Revenues $ 456 $ — $ — $ 5,201 $ (1,595) $ 4,062 Net income (loss) attributable to shareholders 11,423 — — 2,529 (12,113) 1,839 Total assets 15,640 — — 33,443 (34,793) 14,290 Total liabilities 6,514 — — 2,581 (6,270) 2,825 Preferred shares redeemable non-controlling interest — — — 2,166 — 2,166 1. This column accounts for investments in all subsidiaries of BAM other than the Finance Debt Issuers, on a combined basis. 2. This column includes the necessary amounts to present BAM on a consolidated basis. 3. Reflects the completion of the 2025 Arrangement. 82 Summary of Significant Accounting Policies Critical Accounting Policies, Critical Accounting Estimates and Judgements BAM prepares consolidated financial statements in conformity with U.S. GAAP. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates that affect the amounts reported. Management believes that estimates utilized in the preparation of the consolidated financial statements are presented fairly, in all material respects. Such estimates include those used in the valuation of investments and the measurement of deferred tax balances (including valuation allowances) and the determination of control or significant influence. Actual results could differ from those estimates and such differences could be material. BAM believes the following critical accounting policies could potentially produce materially different results of BAM, if underlying assumptions, estimates and/or judgments were to be changed. For a full description of accounting policies, see Part II, Item 8, Note 2 “Summary of Significant Accounting Policies” of the consolidated financial statements as at December 31, 2025 and December 31, 2024 and for the years ended December 31, 2025, 2024, and 2023. Equity Method Investments Investments in which BAM is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. BAM has significant influence over our partner managers and therefore accounts for these investments under the equity method. The carrying value of equity method investments is determined based on amounts invested by BAM, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received. Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity investments in the consolidated statements of operations. BAM evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Refer to Part II, Item 8, Note 4 “Investments” of the consolidated financial statements for further details of our equity method investments. Control or Level of Influence When determining the appropriate basis of accounting for BAM's investees, BAM makes judgments about the degree of influence that it exerts directly or through an arrangement over the investees’ relevant activities. This may include the ability to elect investee directors or appoint management. Control is obtained when BAM has the power to direct the relevant investing, financing and operating decisions of an entity and does so in its capacity as principal of the operations, rather than as an agent for other investors. Operating as a principal includes having sufficient capital at risk in any investee and exposure to the variability of the returns generated as a result of the decisions of BAM as principal. Judgment is used in determining the sufficiency of the capital at risk or variability of returns. In making these judgments, BAM considers the ability of other investors to remove BAM as a manager or general partner in a controlled partnership. Carried Interest Allocations - Unrealized The change in the fair value of investments is a significant input into carried interest allocations - unrealized. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments. Fair Value BAM uses fair value throughout the reporting process. For details of our accounting policies related to fair value refer to Part II — Item 8. Note 2. “Summary of Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Revenue Recognition” in the “Notes to the consolidated financial statements”. The following discussion is intended to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment. The fair value of the investments held by BAM's funds is the primary input to the calculation of certain of our management fees, incentive fees, performance fees and the related compensation we recognize. In the absence of observable market prices, we utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of the investments. For investments where little market activity exists management’s determination of fair value is based on the best information available in the circumstances, which may incorporate management’s own assumptions and involves a significant degree of judgment, and the consideration of a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Management has elected the fair value option for certain equity method investments. Additionally, management is required to measure specific financial instruments at fair value, including debt instruments, equity securities, and freestanding derivatives. 83 Our primary approach to determining the fair value of our investments is generally the income approach, which estimates fair value based on the present value of expected future cash flows generated by a business. The most commonly used method within this approach is the discounted cash flow method, which incorporates key assumptions about the investment’s projected net earnings or cash flows, discount rate, capitalization rate, and exit multiple. Alternatively, management uses the market approach as a secondary methodology. This approach primarily relies on valuations of comparable public companies, transactions, or assets, requiring judgment in selecting appropriate comparables. Depending on the specific facts and circumstances of the investment, alternative primary and secondary methodologies may be applied, including option value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability-weighted methods, or recent financing rounds.