Brookfield Asset Management Ltd. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Brookfield Asset Management Ltd. Consolidated Financial Statements Report of Independent Registered Public Accounting Firm (Deloitte LLP, Toronto, Canada, PCAOB ID No. 1208 ) 86 Consolidated Balance Sheets as at December 31, 202 5 and 202 4 89 Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023 90 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 202 5 , 202 4 and 2023 91 Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025 , 2024 a nd 2023 92 Consolidated Statements of Cash Flows for the Years Ended December 31, 2 025, 2024 and 2023 94 Notes to the Consolidated Financial Statements 96 85 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Brookfield Asset Management Ltd. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Brookfield Asset Management Ltd. and subsidiaries (“BAM”) as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, BAM maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as at and for the year ended December 31, 2025, of BAM and our report dated March 2, 2026, expressed an unqualified opinion on those financial statements. As described in Management's Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at Brookfield Asset Management ULC, which was acquired on February 4, 2025, and whose financial statements constitute 96% and 81% of total and net assets, respectively, 99% of revenues, and 96% of net income of the consolidated financial statement amounts as of and for the year ended December 31, 2025. Accordingly, our audit did not include the internal control over financial reporting at Brookfield Asset Management ULC. Basis for Opinion BAM’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on BAM’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to BAM in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte LLP Chartered Professional Accountants Licensed Public Accountants Toronto, Canada March 2, 2026 86 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Brookfield Asset Management Ltd. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Brookfield Asset Management Ltd. and subsidiaries (“BAM”) as at December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of BAM as at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), BAM’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 2, 2026, expressed an unqualified opinion on BAM’s internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of BAM’s management. Our responsibility is to express an opinion on BAM’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to BAM in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Accrued Carried Interest - Refer to Notes 2 and 4 to the financial statements Critical Audit Matter Description Carried interest is a performance fee arrangement in which the Company receives a percentage of investment returns from a fund and is based on cumulative fund performance, once returns exceed a fund’s contractually defined performance hurdles. The Company calculates the accrued carried interest at the end of each reporting period that would be due to the Company, based on the terms of the relevant fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, adjustments to accrued carried interest are recorded in the consolidated statements of operations as carried interest allocations. Carried interest allocations are recorded as unrealized income or loss attributable to the Company until the underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. We identified the calculation of accrued carried interest as a critical audit matter because of the significance of this balance to the Company’s financial statements. This results in a high degree of auditor judgment and subjectivity to perform our audit procedures and evaluate the audit evidence obtained. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the accrued carried interest included the following, among others: • Evaluated whether the accrued carried interest calculations were performed in accordance with the terms of the fund agreements; and 87 • Agreed underlying fund investments’ financial information used in the accrued carried interest calculations to information received directly from external third parties. Oaktree – Investment - Refer to Notes 2 and 4 to the financial statements Critical Audit Matter Description The Company has an approximate 74% economic interest in Oaktree, which the Company has accounted for under the equity method of accounting as it is deemed to exert significant influence, but not control, over the investee. The carrying value of the equity method investment is determined based on the amounts invested by the Company, including a step-up investment in the current year, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received, amortization of historical basis differences and impairment losses, if any. We identified the accounting for the Oaktree equity method investment as a critical audit matter because of the significance of the equity method investment and earnings impact to the Company’s financial statements. This audit matter required an increased extent of audit effort, including the need to involve fair value specialists and senior members of the engagement team. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to accounting for the equity method investment in Oaktree included the following, among others: • Tested the effectiveness of controls related to accounting for the equity method investment in Oaktree, which includes management’s receipt and review of Oaktree financial information; • Evaluated whether the consideration paid for the step-up investment was calculated in accordance with contractual agreements and, with the assistance of fair value specialists, assessed whether the methodology used by management to value the step-up investment was appropriate; • Evaluated significant judgments and estimates at the underlying equity method investment through oversight of the auditor of Oaktree by obtaining and assessing information relating to the audit of Oaktree to understand significant judgments and estimates, significant findings or issues identified, actions taken to address them, and conclusions reached; and • Agreed the underlying information related to the changes in the equity method investment to the audited financial statements of Oaktree. /s/ Deloitte LLP Chartered Professional Accountants Licensed Public Accountants Toronto, Canada March 2, 2026 We have served as BAM's auditor since 2022. 88 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED BALANCE SHEETS 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 See notes to consolidated financial statements 89 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31 (MILLIONS) 2025 2024 2023 Revenues Base management and advisory fees $ 3,384 $ 2,957 $ 2,766 Incentive fees 560 424 376 Investment income Carried interest allocations Realized — 25 51 Unrealized 209 ( 9 ) 348 Total investment income 209 16 399 Interest and dividend revenue 98 143 172 Interest and dividend revenue of consolidated funds 31 — — Other revenues 535 440 349 Total revenues 4,817 3,980 4,062 Expenses Compensation, operating, and general and administrative expenses Compensation and benefits ( 1,373 ) ( 1,154 ) ( 1,048 ) Other operating expenses ( 354 ) ( 347 ) ( 342 ) General, administrative and other ( 56 ) ( 64 ) ( 56 ) Total compensation, operating, and general and administrative expenses ( 1,783 ) ( 1,565 ) ( 1,446 ) Carried interest allocation compensation Realized ( 155 ) ( 69 ) ( 26 ) Unrealized 9 ( 24 ) ( 60 ) Total carried interest allocation compensation ( 146 ) ( 93 ) ( 86 ) Interest expense ( 87 ) ( 22 ) ( 14 ) Interest expense of consolidated funds ( 28 ) — — Total expenses ( 2,044 ) ( 1,680 ) ( 1,546 ) Other expenses, net ( 297 ) ( 93 ) ( 129 ) Share of income from equity method investments 402 339 167 Other income, net of consolidated funds 47 — — Income before taxes 2,925 2,546 2,554 Income tax expense ( 527 ) ( 438 ) ( 417 ) Net income $ 2,398 $ 2,108 $ 2,137 Net loss (income) attributable to: Preferred shares redeemable non-controlling interest $ 480 $ 211 $ ( 262 ) Non-controlling interest in consolidated entities ( 369 ) ( 151 ) ( 36 ) Non-controlling interests in consolidated funds ( 24 ) — — Net income attributable to the common stockholders $ 2,485 $ 2,168 $ 1,839 Earnings per share Basic $ 1.54 $ 1.35 $ 1.16 Diluted $ 1.52 $ 1.34 $ 1.16 Weighted-average shares Basic 1,612.2 1,603.4 1,585.8 Diluted 1,628.5 1,613.6 1,590.6 See notes to consolidated financial statements 90 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2025 2024 2023 Net income $ 2,398 $ 2,108 $ 2,137 Equity method investments 14 ( 3 ) 9 Currency translation 12 ( 3 ) 6 Comprehensive income $ 2,424 $ 2,102 $ 2,152 Comprehensive loss (income) attributable to: Preferred shares redeemable non-controlling interest $ 480 $ 211 $ ( 262 ) Non-controlling interest in consolidated entities ( 369 ) ( 151 ) ( 36 ) Non-controlling interests in consolidated funds ( 24 ) — — Comprehensive income attributable to the common stockholders $ 2,511 $ 2,162 $ 1,854 See notes to consolidated financial statements 91 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AS AT (MILLIONS, EXCEPT SHARE AMOUNTS) Shares of Brookfield Asset Management Ltd. Brookfield Asset Management Ltd. Class A common stock Class B common stock Common stock Common stock held in treasury Additional paid-in capital Retained deficit Accumulated other comprehensive income Total common equity Non-controlling interest in consolidated entities Non-controlling interest in consolidated funds Total equity Balance at December 31, 2022 1,590,175,873 21,280 $ 9,271 $ — $ — $ 84 $ 153 $ 9,508 $ 98 $ — $ 9,606 Net income — — — — — 1,839 — 1,839 36 — 1,875 Other comprehensive income — — — — — — 15 15 — — 15 Share subscriptions 813,290 — — — — — — — — — — Acquisition of treasury shares, net ( 8,234,552 ) — — — — — — — — — — Contributions — — 1 — 122 — — 123 10 — 133 Distributions — — ( 229 ) — — ( 2,101 ) — ( 2,330 ) — — ( 2,330 ) Transfer of interest — — ( 29 ) — — — — ( 29 ) 29 — — Balance at December 31, 2023 1,582,754,611 21,280 $ 9,014 $ — $ 122 $ ( 178 ) $ 168 $ 9,126 $ 173 $ — $ 9,299 Net income — — — — — 2,168 — 2,168 151 — 2,319 Other comprehensive loss — — — — — — ( 6 ) ( 6 ) — — ( 6 ) Share subscriptions 30,109,594 — 3 — — — — 3 — — 3 Acquisition of treasury shares, net 1,374,076 — — ( 91 ) — — — ( 91 ) — — ( 91 ) Contributions — — — — 30 — — 30 16 — 46 Distributions — — — — — ( 2,478 ) — ( 2,478 ) ( 4 ) — ( 2,482 ) Balance at December 31, 2024 1,614,238,281 21,280 $ 9,017 $ ( 91 ) $ 152 $ ( 488 ) $ 162 $ 8,752 $ 336 $ — $ 9,088 See notes to consolidated financial statements 92 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AS AT (MILLIONS, EXCEPT SHARE AMOUNTS Shares of Brookfield Asset Management Ltd. Brookfield Asset Management Ltd. Class A common stock Class B common stock Common stock Common stock held in treasury Additional paid-in capital Retained deficit Accumulated other comprehensive income Total common equity Non-controlling interest in consolidated entities Non-controlling interest in consolidated funds Total equity Balance at December 31, 2024 1,614,238,281 21,280 $ 9,017 $ ( 91 ) $ 152 $ ( 488 ) $ 162 $ 8,752 $ 336 $ — $ 9,088 Net income — — — — — 2,485 — 2,485 369 24 2,878 Other comprehensive income — — — — — — 26 26 — — 26 Share subscriptions 785,664 — 16 — ( 5 ) ( 19 ) — ( 8 ) — — ( 8 ) Acquisition of treasury shares, net ( 6,531,303 ) — — ( 428 ) — — — ( 428 ) — — ( 428 ) Contributions — — — — 151 — — 151 61 163 375 2025 Arrangement — — 120 ( 7 ) ( 144 ) — — ( 31 ) 31 — — Distributions — — — — — ( 2,827 ) — ( 2,827 ) ( 24 ) — ( 2,851 ) Deconsolidation of consolidated funds — — — — — ( 2 ) — ( 2 ) — ( 166 ) ( 168 ) Balance at December 31, 2025 1,608,492,642 21,280 $ 9,153 $ ( 526 ) $ 154 $ ( 851 ) $ 188 $ 8,118 $ 773 $ 21 $ 8,912 See notes to consolidated financial statements 93 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 (MILLIONS) 2025 2024 2023 Operating activities Net income $ 2,398 $ 2,108 $ 2,137 Adjustments to reconcile net income to net cash from operating activities: Other expenses, net 229 69 54 Other income, net of consolidated funds ( 47 ) — — Share of income from equity method investments, net of cash distributions ( 7 ) ( 122 ) 21 Depreciation and amortization 40 14 14 Deferred income taxes 151 274 92 Stock-based equity awards 123 103 33 Unrealized carried interest allocation, net ( 301 ) 33 ( 288 ) Changes in operating assets and liabilities: Changes in investments of consolidated funds ( 467 ) ( 251 ) — Changes in other working capital and non-cash operating items ( 18 ) ( 616 ) ( 624 ) 2,101 1,612 1,439 Investing activities Acquisitions Investments ( 962 ) ( 1,909 ) ( 286 ) Acquisition of subsidiaries, net of cash acquired 6 — — Other assets ( 9 ) ( 8 ) ( 17 ) Dispositions and distributions received Investments 307 385 84 Disposition of subsidiaries, net of cash 52 — — Investments held for sale 267 ( 249 ) — Repayments from (advances to) related parties — 37 ( 256 ) ( 339 ) ( 1,744 ) ( 475 ) Financing activities Distributions to common stockholders ( 2,818 ) ( 2,478 ) ( 2,101 ) Borrowings of consolidated funds 256 251 — Distributions to non-controlling and redeemable non-controlling interests ( 216 ) ( 52 ) ( 42 ) Redemption of preferred shares redeemable non-controlling interest ( 94 ) — — Purchase of treasury shares ( 412 ) — — Corporate borrowings issuance, net 2,500 — — Deferred financing fees ( 22 ) — — Contributions from parent 12 56 — Capital raised from non-controlling interests 179 — — Preferred equity issuances 25 — 63 Issuance of related party loans — 67 197 Issuance of tracking option — 37 41 ( 590 ) ( 2,119 ) ( 1,842 ) Cash and cash equivalents Change in cash and cash equivalents 1,172 ( 2,251 ) ( 878 ) Effect of exchange rate changes on cash and cash equivalents 7 ( 12 ) — Balance, beginning of year 404 2,667 3,545 Balance, end of year $ 1,583 $ 404 $ 2,667 See notes to consolidated financial statements 94 BROOKFIELD ASSET MANAGEMENT LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 (MILLIONS) 2025 2024 2023 Supplemental cash flow disclosures Other working capital and non-cash operating items Accounts receivable and other, net $ 32 $ ( 51 ) $ ( 200 ) Accounts payable and other, net ( 56 ) ( 426 ) ( 26 ) Due from affiliates 200 ( 89 ) ( 559 ) Due to affiliates ( 171 ) ( 76 ) 372 Other non-cash operating items ( 23 ) 26 18 $ ( 18 ) $ ( 616 ) $ ( 395 ) Supplemental disclosure of cash flow information Income taxes paid United States $ 190 $ — $ — Canada 128 — — United Kingdom 98 — — Other jurisdictions 10 — — Total income taxes paid $ 426 $ 449 $ 171 Interest paid $ 87 $ 22 $ 11 Supplemental disclosure of non-cash investing and financing activities Non-cash investing and financing activities related to 2025 Arrangement $ 27 $ — $ — Non-cash issuance of preferred shares redeemable non-controlling interest $ 94 $ 195 $ — Non-cash acquisition of investments $ — $ 68 $ — Non-cash contributions from non-controlling interest $ — $ 10 $ — Non-cash contribution $ — $ — $ 42 Non-cash distribution $ — $ — $ 229 See notes to consolidated financial statements 95 BROOKFIELD ASSET MANAGEMENT LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION Brookfield Asset Management Ltd. (“BAM”, “we”, “our”, “us”, or the “Company”) is an alternative asset manager headquartered in New York, NY, and listed on the New York Stock Exchange (“NYSE”) and Toronto Stock Exchange (“TSX”) under the symbol BAM. BAM focuses on infrastructure, renewable power and transition, private equity, real estate and credit, operating in various markets globally. BAM was incorporated on July 4, 2022 and its head office is located at Brookfield, 225 Liberty Street, 8th Floor, New York, NY, 10281-1048 and its registered office is located at 1055 West Georgia Street, 1500 Royal Centre, P.O. Box 11117, Vancouver, British Columbia V6E 4N7. On February 4, 2025, BAM completed a corporate arrangement with Brookfield Corporation (“BN”), whereby BN transferred its approximately 73 % interest in Brookfield Asset Management ULC (the “Asset Management Company”) to BAM in exchange for newly issued class A limited voting shares of BAM (“Class A Shares”) on a one-for-one basis (the “2025 Arrangement”). See discussion of the accounting for the 2025 Arrangement in Note 3. The financial statements of BAM for the periods prior to February 4, 2025, the closing date of the 2025 Arrangement, reflect historical financial information of Brookfield Asset Management ULC, the accounting acquirer, as the “Predecessor” entity. For the periods thereafter, the financial statements reflect the financial position and results of the combined entity. In addition, on July 4, 2022, the date of incorporation, the Company entered into certain agreements and arrangements, including the Relationship Agreement under which carried interest generated by BAM is allocated to BN at 100 % with respect to mature funds and at 33.3 % with respect to current funds, new funds and open-ended funds, through the Company’s non-controlling interest and preferred shares redeemable non-controlling interest held by BN. Further, certain employee share-based and performance-based compensation costs are recovered from BN. See discussion of the accounting for this agreement in the Other Revenues accounting policy in Note 2. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of BAM have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are presented in U.S. Dollars. The consolidated financial statements have been prepared in accordance with the accounting policies set out below. Certain of the comparative figures have been reclassified to conform with the current year's presentation. This includes changes in consolidated funds which have been reclassified from investing activities to operating activities in the consolidated statements of cash flows to reflect the nature of these movements on the consolidated funds. Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are reasonable. Such estimates include those used in determining the fair value of investments and financial instruments, the measurement of deferred tax balances (including valuation allowances), accrued carried interest, incentive distributions and the accounting for share-based and performance-based compensation. Actual results may differ from those estimates and such differences may be material. Consolidation The Company consolidates all entities which it controls through a majority voting interest and all variable interest entities (“VIE”) for which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impacts the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion upon certain events. In determining whether the Company is the primary beneficiary, the Company evaluates its control rights as well as economic interests in the entity held either directly or indirectly by the Company. Assets of a consolidated VIE can only be used to settle obligations of the consolidated VIE and creditors and other beneficial interest holders do not have recourse to the Company with respect to liabilities of its consolidated VIEs. For more information, the Company’s other disclosures regarding VIEs are discussed in Note 5. 96 The Company also consolidates the balance sheet and results of operations of certain funds in which it is the primary beneficiary. All intercompany balances and transactions have been eliminated on consolidation. Preferred Shares Redeemable Non-Controlling Interest The Company has various outstanding special tracking preferred shares of certain subsidiaries of the Company (“Tracking Shares”) which provide BN with a redemption right, upon a liquidation or redemption event, to receive a preferred amount equal to the fair value of carried interest entitlement from certain tracked assets, net of any compensation related costs. The carried interest entitlement is determined based on the hypothetical liquidation at book value method of valuation (“HLBV”) being applied to each such mature fund at each reporting date, which calculates the accrued carried interest that would be due to the Company pursuant to fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. These returns are realized through the payment of cumulative dividends, as and when declared by the board of directors of the relevant BAM subsidiaries. The Tracking Shares are entitled to vote, together with the common shares owned indirectly by the Company, in respect of those subsidiaries and are presented as preferred shares redeemable non-controlling interest within the consolidated balance sheets, outside of permanent equity. The first series of Tracking Shares issued by Brookfield US Holdings Inc. (“BUSHI”), a subsidiary of the Company, provides BN with an economic interest equal to effectively 100% of the carried interest earned in mature funds. The first series of Tracking Shares also includes all economic interest associated with the Company's investment in BSREP III. Any economics relating to the limited partnership interest in BSREP III is attributed to the preferred shares within the preferred shares redeemable non-controlling interest financial statement line item on the consolidated statement of operations. Carried interest entitlement on BSREP III is also determined using the HLBV method. The second series of Tracking Shares issued by Brookfield Manager Holdings Ltd. (“BMHL”), a subsidiary of the Company, provides BN with an economic interest equal to effectively a 33.3 % share of similar distributions on open-ended funds. During the year ended December 31, 2025, the second series of Tracking Shares was amended such that a future redemption by BMHL, whose board is controlled by BN, is now permitted upon the tenth anniversary of issuance, consistent with the first and third series of Tracking Shares. The third series of Tracking Shares issued by BUSHI provides BN with an economic interest equal to 1.5 % of certain investments held by Oaktree, an equity method investment of BAM, excluding any fee earnings, carried interest, incentive fees and performance fees of that equity method investee. Each series of Tracking Shares has a redemption clause whereby BUSHI for the first and third series and BMHL for the second series, each of whose board is controlled by BN, may elect to redeem the Tracking Shares upon the tenth anniversary of issuance. While each series of Tracking Shares is not currently redeemable, the Company believes that each series of Tracking Shares will become redeemable as the redemption requirement is only through the passage of time. As such the relevant redeemable non-controlling interest recognized outside of permanent equity requires remeasurement at each reporting period. Once the first and second series of Tracking Shares are redeemed, the holder retains no further economic entitlement to the carried interest of the funds, and for the first series, the limited partner investment interest included within those respective Tracking Shares. Once the third series of Tracking Shares are redeemed, the holder retains no further economic entitlement to the certain investments held by Oaktree included within those respective Tracking Shares. BUSHI's issued share capital includes class B senior preferred shares outstanding as at December 31, 2025, all of which are held by BN. The class B senior preferred shares entitle the holder to cumulative preferential cash dividends at $ 1.36375 per share per annum and are ranked senior to the BUSHI Tracking Shares, class B preferred shares and common shares. The class B senior preferred shares were issued in December 2022 in conjunction with the 2022 Arrangement and are held by BN. The class B senior preferred shares are redeemable by the issuer, whose board is controlled by BN, upon the tenth anniversary of issuance at a redemption amount of $ 25 per share plus accrued and unpaid dividends. While the class B senior preferred shares are not currently redeemable, the Company considers that it is probable such shares will become redeemable as the redemption requirement is only through the passage of time. BUSHI's issued share capital includes class B preferred shares outstanding as at December 31, 2025, all of which are held by BN. The class B preferred shares of BUSHI are redeemable at the option of both the holder and the issuer at a redemption amount of $ 25 per share plus declared and unpaid dividends, and entitle the holder to non-cumulative preferential cash dividends at 6.7 % per annum on the redemption amount. These class B preferred shares are non-voting and rank junior to the class B senior preferred shares and the BUSHI Tracking Shares and senior to common shares of the entity. Due to the currently exercisable holder redemption option, the class B senior preferred shares and class B preferred shares are presented as a part of preferred shares redeemable non-controlling interest within the Company’s consolidated balance sheets, outside of permanent equity and are measured at their redemption amount plus any dividends declared and unpaid at each reporting period. 97 Additionally, BUSHI, as part of BAM's various share-based compensation arrangements, has issued class A preferred shares to BN. The shares rank junior to the Class B senior preferred and Tracking Shares and are redeemable at the option of the holder and the issuer at a redemption amount of $ 25 per share plus accrued and unpaid dividends and are non-voting. Due to the currently exercisable holder redemption option, these shares are presented as part of preferred shares redeemable non-controlling interest within the Company’s consolidated balance sheets, outside of permanent equity and are measured at their redemption amount plus any dividends declared and unpaid at each reporting period. The Company recognizes any change in the carrying amount of its preferred shares redeemable non-controlling interest in net loss (income) attributable to preferred shares redeemable non-controlling interest in its consolidated statements of operations. Distributions on the preferred shares redeemable non-controlling interest are made periodically as carried interest is realized. Distributions are not deferred until a redemption event occurs. These distributions are presented within distributions in Note 13 “redeemable non-controlling interest”. Non-Controlling Interest The Company has various outstanding classes of equity interests, issued by the Company’s subsidiaries and held by BN, which have rights to priority distributions. Net loss (income) and other comprehensive loss (income), if applicable, generated by the respective subsidiaries is allocated to non-controlling interest in consolidated entities and consolidated funds based on the substantive contractual terms of the subsidiaries’ governing agreements that specify the allocation of income or loss. Non-controlling interest includes BN's entitlement, pursuant to the Relationship Agreement, to 33.3 % of all carried interest generated on new funds prior to any carried interest compensation costs. Revenue Recognition Revenue is measured based on the amount the Company expects to be entitled to under the contract with the customer and excludes amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service (or a bundle of goods and services) to the customer and is the unit of account in ASC 606 Revenue from Contracts with Customers (“ASC 606”). In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue, as, or when, the performance obligation is satisfied. The Company recognizes revenue when it transfers control of a product or service to a customer. Revenues primarily consist of base management and advisory fees and incentive fees (including incentive distributions and performance fees). Base management and advisory fees — Base management and advisory fees are comprised of base management fees and transaction, advisory and other fees and are accounted for as contracts with customers. The Company earns base management fees from its customers at a fixed percentage of a calculation base which is typically committed capital, invested capital or net asset value. The Company identifies its customers on a fund-by-fund basis in accordance with the terms and circumstances of the individual fund. Generally, the customer is identified as the investor in its managed funds and investment vehicles, but for certain widely held funds or vehicles, the fund or vehicle itself may be identified as the customer. These customer contracts require the Company to provide investment management services over a period of time, which represents a performance obligation that the Company satisfies over time. Management fees are a form of variable consideration because the fees that the Company is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the reporting period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid. Transaction, advisory and other fees are principally fees charged to the investors of funds indirectly through the managed funds and portfolio companies. These fees are based on a fixed percentage of enterprise value or equity value of pooled capital raised and are earned generally when the capital is called. These fees are not tied to performance or ongoing investment management services, are not subject to clawback and are recorded in the reporting period in which the related transaction closes. Accrued but unpaid base management and advisory fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts receivable and other, net or Due from affiliates in the consolidated balance sheets. Incentive fees — Incentive fees include incentive distributions and performance fees and are accounted for as contracts with customers. Incentive fees are incentive payments to reward the Company for meeting or exceeding certain performance thresholds of managed entities. This includes BBU performance fees that are earned above a high watermark. 98 Incentive distributions paid to us by our permanent capital vehicles BIP and BEP are determined by contractual arrangements and represent a portion of distributions paid above a predetermined hurdle. These amounts are accrued as revenue on the respective affiliates’ distribution record dates only if the predetermined hurdle has been achieved. Incentive distributions and performance fees are not subject to clawback. Incentive distributions and performance fees will not be recognized until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved. Accrued but unpaid incentive distributions and performance fees are recorded within Due from affiliates in the consolidated balance sheets as of the reporting date. Investment income (loss) — Investment income (loss) represents the unrealized and realized gains and losses on carried interest and movements in the fair value of the Company's principal investments and is accounted for outside of ASC 606 . Carried interest is a performance fee arrangement in which the Company receives a percentage of investment returns, generated within a private fund on carry eligible capital, based on a contractual formula. We are eligible to earn carried interest from a fund once returns exceed the fund’s contractually defined performance hurdles at which point, we earn an accelerated percentage of the additional fund profit until we have earned the percentage of total fund profit, net of fees and expenses, to which we are entitled. At the end of each reporting period, the Company calculates the balance of accrued carried interest that would be due to the Company 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. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as accrued carried interest to reflect either (a) positive performance resulting in an increase in the accrued carried interest to the general partner or (b) negative performance that would cause the amount due to the Company to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the accrued carried interest to the general partner. These adjustments are recorded in the consolidated statements of operations as unrealized carried interest allocations in Investment income. In each scenario, it is necessary to calculate the accrued carried interest on cumulative results compared to the accrued carried interest recorded to date and make the required positive or negative adjustments. The Company ceases to record negative carried interest once previously accrued carried interest for such funds have been fully reversed. The Company is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative carried interest over the life of a fund. Accrued carried interest as of the reporting date is reflected in Investments on the consolidated balance sheets. Carried interest is realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Carried interest is subject to clawback to the extent that the carried interest received to date exceeds the amount due to the Company based on cumulative results. The accrual for potential repayment of previously received carried interest would represent amounts previously paid to the Company that would need to be repaid if these funds accruing carry were to be liquidated based on the fair value of their underlying investments. This amount is estimated to be $nil for all periods presented and as a result no clawback provision has been recognized in the consolidated financial statements. Fair value gains (losses) on principal investments include the unrealized and realized gains and losses on the Company’s principal investments, including its investments in the funds that are not consolidated and receive pro-rata allocations and other principal investments. Gain (loss) on principal investments is realized when the Company redeems all or a portion of its investment or when the Company receives cash income, such as dividends or distributions. Unrealized gain (loss) on principal investments results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized. Interest and dividend revenue — Interest and dividend revenue comprise primarily of interest and dividend income earned on principal investments not accounted for under the equity method held by the Company. Other revenues Other revenues arises from the Relationship Agreement between BAM and BN. Under the Relationship Agreement, certain employee share-based and performance-based compensation costs are recovered from BN. Income generated under the Relationship Agreement relating to these instruments is recognized as other revenues in the consolidated statements of operations on a gross basis as the instruments vest or are incurred. Certain liability classified share-based awards covered by the Relationship Agreement are required to be revalued at each balance sheet date. As a result, where the revaluation results in an increase in the share-based award liability, BN will reimburse BAM while conversely, where the revaluation results in a decrease in the share-based award liability, BAM will be responsible for reimbursing the difference to BN. 99 Other revenues also includes certain performance fees which are accounted for as contracts with customers. Amounts are accrued on a quarterly or annual basis and are not recognized until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved. Certain amounts are subject to clawback. Fair Value of Financial Instruments U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities and mutual funds with quoted prices. The Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. • Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. • Level III — Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy are comprised of certain equity securities and derivatives. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: • Equity securities and derivatives are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, the Company may use certain information with respect to quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction that is embodied in the security. Level III Valuation Techniques In the absence of observable market prices, the Company values its investments using valuation methodologies applied on a consistent basis. For some investments where little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. The Company uses the discounted cash flow method or the direct capitalization method to value the investments held in consolidated funds. Valuations may be derived by referencing observable valuation measures for comparable assets and recent market transactions, adjusted for asset specific factors. Where a discounted cash flow method is used, a terminal value is derived by referencing to a stabilized exit earnings before interest, taxes, depreciation and amortization and a capitalization rate. 100 Net Asset Value Investment funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy. The carrying value reflects a pro rata ownership percentage as indicated by NAV in the investment fund financial statements, which may be adjusted if it is determined NAV is not calculated consistent with investment company fair value principles. The underlying investments of the investment funds may have significant unobservable inputs, which may include but are not limited to, comparable multiples and weighted average cost of capital (“WACC”) rates applied in valuation models or a discounted cash flow model. Financial Assets and Financial Liabilities In the normal course of business, the Company is exposed to certain risks relating to their ongoing operations and uses various types of derivative instruments primarily to mitigate against interest rate and foreign exchange risk. These generally include foreign currency forward contracts and interest rate swaps. The derivative instruments are not designated as hedging instruments under ASC 815 , Derivative and Hedging (“ASC 815”). Derivative instruments under ASC 815 are recognized on a gross basis as either financial assets or financial liabilities in the consolidated balance sheets at fair value with changes in fair value recognized in net income. Derivative instruments are marked-to-market at the end of each reporting period based upon quotations from pricing services or by the Company and the change in value, if any, is recorded as an unrealized gain (loss). Upon settlement of the instrument, the Company records any realized gain (loss). Unrealized gains (losses) and realized gains (losses) are reflected within other expenses, net within the consolidated statements of operations. Purchased or written options on equity interests of several of our equity method investments that do not meet the definition of a derivative are recognized on the consolidated balance sheets on a gross basis as financial assets or financial liabilities, respectively. These financial instruments are measured at fair value with changes in fair value recognized in Other expenses, net within the consolidated statements of operations. Investments Investments include (i) investments held by funds which the Company controls and consolidates and (ii) the Company’s ownership interests (typically general partner interests) in nonconsolidated funds and other asset management businesses which are accounted for as equity method investments. (i) Investments at fair value under Consolidated Funds Investments held in consolidated funds, which are investment companies under ASC 946, Financial Services - Investment Companies , are measured at fair value as disclosed in Note 4. (ii) Company’s ownership interests in funds and other asset management businesses accounted for as equity method investments Investments in which the Company is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. The Company has significant influence over certain Brookfield funds in which it invests but does not consolidate. Therefore, its investments in such Brookfield funds, which include both a proportionate and disproportionate allocation of the profits and losses, are accounted for under the equity method. The Company also has investments in equity interests of other asset management businesses that provide it with significant influence and therefore accounts for such investments using the equity method for its proportionate share of the investees' net income or losses. When the Company acquires an additional interest in an existing equity method investment, resulting in a step-up in basis, the difference between the purchase price and the Company's proportionate share of the book value of the investee’s net assets is identified and allocated to the fair value of the identifiable assets and liabilities of the investee at the acquisition date. The excess of the purchase price over the book value of the net assets acquired is allocated to intangible assets and goodwill. The basis difference is generally amortized over the remaining useful lives of the intangible assets, while any amount allocated to goodwill is not amortized but is tested for impairment annually. The amortization of the basis difference affects the Company’s share of the investee’s net income or loss and is included in the “Share of Income from Equity Method Investments” line item in the consolidated statements of operations. The amortization periods for the intangible assets to which the basis difference is allocated are consistent with the estimated useful lives of those assets. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. In cases where the Company’s equity method investments provide for a disproportionate allocation of the profits and losses, the Company’s share of income (losses) from equity method investments is determined using a balance sheet approach referred to as the HLBV method. Under the HLBV method, at the end of each reporting period the Company calculates the accrued carried interest that 101 would be due to the Company pursuant to fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of the underlying investments varies between reporting periods, it is necessary to make adjustments to the amounts recorded as carried interest to reflect either a positive performance resulting in an increase in the carried interest allocated to the general partner or a negative performance that would cause the amount due to the Company to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, such accrued carried interest will be recognized in the consolidated statements of operations. The Company has elected to account for certain equity method investments such as equity securities through the election of the fair value option under ASC 825, Financial Instruments . These are investments in limited partnerships that represent more than a minor interest in the investees where the Company does not have the practical ability to exert significant influence. Refer to Note 4 for further details in relation to equity method investments. Cash and Cash Equivalents Cash and cash equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in interest and dividend revenue in the consolidated statements of operations. Intangibles and Goodwill Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from eight to fifteen years, reflecting the contractual lives of such assets. Amortization expense is included within general, administrative and other in the consolidated statements of operations. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of the Company’s operating segments is less than their respective carrying values. In most circumstances, the operating segments are considered the reporting units for purposes of goodwill impairment testing; however, in certain cases, reporting units may be identified at a lower level when an underlying strategy is determined to not have similar economic characteristics. If it is determined that it is more likely than not that a reporting unit's fair value is less than its carrying value or when the quantitative approach is used, an impairment loss is recognized to the extent by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Property, Plant and Equipment, net Property, plant and equipment, net consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease term or the life of the asset, generally ten to fifteen years , and three to seven years for other fixed assets. Depreciation and amortization expense are recorded within general, administrative and other in the consolidated statements of operations. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Accounts Receivable, net Accounts receivable, net includes management fees receivable from limited partners, receivables from underlying funds, placement and advisory fees receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts receivable, net are assessed for credit loss at each reporting date. Amounts determined to be uncollectible are charged directly to general, administrative and other in the consolidated statements of operations. Foreign Currency The U.S. Dollar is the functional and presentation currency of the Company. The Company consolidates a number of entities that have a non-U.S. Dollar functional currency. Each of the Company’s subsidiaries and associates determines its own functional currency and items of each subsidiary included in the consolidated financial statements are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. Dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at average rates during the year. Gains or losses on translation are accumulated as a component of equity. On the disposal of a foreign operation, or the loss of control, joint control or significant influence, the component of accumulated other comprehensive income relating to that foreign operation is reclassified to net income in the 102 consolidated statements of operations. Gains or losses on foreign currency denominated balances and transactions that are designated as hedges of net investments in these operations are reported in the same manner. Foreign currency-denominated monetary assets and liabilities of the Company are translated using the rate of exchange prevailing at the reporting date, and non-monetary assets and liabilities measured at fair value are translated at the rate of exchange prevailing at the date when the fair value was determined. Revenues and expenses are measured at average rates during the year. Gains or losses on translation of these items are included in net income. Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. Compensation, benefits and carried interest compensation Compensation — Compensation consists of (a) salary and bonus, and benefits paid and payable to employees, and (b) share-based compensation associated with the grants of share-based awards to employees. Compensation costs relating to the issuance of share-based awards to senior management and employees is accounted for in accordance with ASC 718, Compensation — Stock Compensation. These awards are measured at fair value at the grant date and expensed over the vesting period, except in the case of share-based awards that do not require future service, which are expensed immediately. Cash settled share-based awards and awards settled in a variable number of shares for a fixed monetary amount are classified as liabilities and are remeasured at the end of each reporting period. The Company accounts for forfeitures as they occur. Refer to Note 12 for further details of the Company's share-based compensation. Carried Interest Compensation — Unrealized and realized carried interest compensation is performance-based compensation based on performance of investments on a fund-by-fund basis. Such compensation expense is subject to both positive and negative adjustments. For certain carried interest compensation costs recognized in accordance with ASC 710 Compensation - General , BAM is not entitled to the associated carried interest income. Substantially all of these costs are recoverable from BN, with the recoveries being presented in other revenues in the consolidated statement of operations. As the expense is recorded as carried interest compensation costs and the recovery is recorded as other revenues, we note the movement in carried interest compensation costs and carried interest revenues on a gross basis may not have a direct correlation. Other expenses, net Other expenses, net — Other expenses, net includes net unrealized gains (losses) resulting from changes in the fair value of the Company’s investments in common shares, financial instruments associated with options to acquire additional interests in various investments, and investments in its sponsored funds, as well as non-asset management related expenses. Other income, net of consolidated funds — Other income, net of consolidated funds include net unrealized gains (losses) resulting from changes in the fair value of the Company's underlying investments and other financial instruments in its consolidated funds. Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period. Income taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Income taxes as presented attribute deferred income taxes of the Company's standalone consolidated financial statements in a manner that is systematic, rational, and consistent with the asset and liability method. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company analyzes its tax filing positions in all jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Tax benefits associated with actual or expected income tax positions are recognized when the “more likely than not” recognition threshold is met. The tax benefits are measured at the largest amount of benefit that is greater than 50% likely to be realized upon settlement with the related tax authority. The Company recognizes accrued interest and penalties related to uncertain tax positions within the provision for income taxes in the consolidated statements of operations. Related parties In the normal course of operations, the Company enters into various transactions on market terms with related parties with amounts being recorded in due from/to affiliates. In accordance with ASC 850 Related Party Disclosures , BAM considers the nature of the relationship in assessing whether the related party meets the definition of an affiliate. Any entity that shares a common parent with 103 BAM is considered an affiliate. This primarily includes BN, certain new and mature funds and perpetual affiliates. All other entities where either BAM or BN can exercise significant influence are considered related parties. This primarily includes BAM's or BN's equity method investees such as Oaktree, Castlelake, and BWS. Amounts owed to and by equity method investments and joint ventures are not eliminated on consolidation. The Company has certain loans receivable and payable within due from/to affiliates which are long-term in nature. These receivables and payables are initially recognized at fair value and subsequently measured at their amortized cost bases with interest recognized using the effective interest method. In addition to the Relationship Agreement, BN, BAM and the Asset Management Company have entered into a services agreement (the “Services Agreement”), which replaced the Transition Services Agreement upon its expiration. Pursuant to the Services Agreement (i) the parties agree to provide certain services to support day-to-day corporate activities (including services relating to finance, treasury, accounting, legal and regulatory, marketing, communications, human resource, internal audit and information technology) and (ii) upon the request of BN, making the services of BAM investment personnel available for purposes of assisting on acquisitions, investments and other transactions (collectively, the “Services”). The Services are provided, at cost, and shall continue until terminated by written agreement by each of BN, BAM and the Asset Management Company. See Note 20 for further detail on related party transactions. Dividends Dividends are reflected in the consolidated financial statements when declared. Earnings per Share The Company calculates earnings per share in accordance with ASC 260 Earnings Per Share . Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the impact of dilutive instruments, which are generally determined using the treasury stock method. For potentially dilutive instruments that are also participating securities, the treasury stock method or the two-class method, whichever, produces the more diluted result, is used to determine diluted net income per share. Segment Reporting The Company conducts its business through five operating segments, all of which are reportable segments: infrastructure, renewable power and transition, private equity, real estate and credit. Each operating segment represents a strategic business unit with specialized investment strategies, and are defined based on the nature of assets managed within each operating segment. In accordance with ASC 280, Segment Reporting , we identify operating segments based on the internal reports reviewed by our Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates each segment's performance and allocates resources based on our key measure referred to as “Segment Earnings”. See Note 22 for further discussion on segments. Recent accounting pronouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on the Company's consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosure, which requires disclosure of disaggregated information about a reporting entity's effective tax rate reconciliation, using both percentages and reporting currency amounts for specific standardized categories, as well as disclosure of income taxes paid disaggregated by jurisdiction. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted this guidance prospectively effective for the fiscal year ended December 31, 2025. Refer to Note 10 for the respective disclosures. The adoption has not had a material impact on the Company's consolidated financial statements. On March 21, 2024, the FASB issued ASU 2024-01, which clarifies how an entity determines whether a profits interest or similar award is within the scope of ASC 718 or not a share-based payment arrangement and therefore within the scope of other guidance. The Company adopted this guidance effective for the fiscal year ended December 31, 2025. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, which requires public business entities to disclose specific information about existing costs and expenses in the notes to its financial statements. This ASU is intended to provide users with useful information about expenses critical to understanding an entity's performance. This standard requires that a public business entity disclose key expenses including, but not limited to, employee compensation, depreciation and amortization, and associated qualitative disclosures 104 about the nature of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company is currently assessing the impact of this update, but is not expected to have a material impact. 3. 2025 ARRANGEMENT On February 4, 2025, BAM and BN completed a transaction by way of a plan of arrangement whereby BN and certain of its subsidiaries exchanged all of their common shares in the Asset Management Company for newly-issued Class A Shares of BAM on a one-for-one basis. As a result of the 2025 Arrangement, BAM issued approximately 1,194 million Class A Shares to BN for approximately 1,194 million outstanding common shares of the Asset Management Company. Immediately following the completion of the 2025 Arrangement, (i) BAM held, directly and indirectly, 100 % of the outstanding common shares of the Asset Management Company, (ii) BN held approximately 73 % of the Class A Shares of BAM, and (iii) the shareholders of BAM prior to effecting the 2025 Arrangement held the remaining approximately 27 % of the Class A Shares of BAM. As a result, the effective economic ownership interest in the Asset Management Company of BAM’s shareholders prior to effecting the 2025 Arrangement and BN has not been substantially impacted by the 2025 Arrangement. The acquisition of substantially all of the common shares of the Asset Management Company by BAM has been accounted for as a reverse asset acquisition on the basis that the Asset Management Company, the accounting acquirer, has issued shares to acquire the net assets of BAM and substantially all of BAM’s net assets represent an interest in the Asset Management Company. The Asset Management Company is therefore the predecessor of BAM whereby BAM continues to be the registrant and its consolidated financial statements, including historical results (other than legal share capital), are that of the Asset Management Company. Accordingly, as a result of the 2025 Arrangement, the following adjustments have been reflected in the financial results of BAM: • the acquisition of BAM’s net assets and the effective settlement of any pre-existing relationships between the Asset Management Company and BAM; and • the allocation of the transaction price among the acquired net assets of BAM. The following table outlines the above: (In $ millions, unless otherwise noted) Share consideration effectively transferred: Post-Arrangement number of shares held by previous shareholders of BAM (millions) 439.8 Price of Class A Shares ($ per share) (a) $ 57.13 25,127 Transaction costs 5 Less: BAM’s investment and other relationships in the Asset Management Company (b) (c) ( 25,099 ) Total purchase consideration $ 33 Fair value of net assets acquired: Cash $ 6 Due from affiliates 793 Intangible assets (d) 215 Accounts payable and other ( 883 ) Due to affiliates ( 10 ) Deferred income tax liabilities (d) ( 57 ) Non-controlling interest ( 31 ) $ 33 a) Consideration effectively transferred As part of the 2025 Arrangement, BN and certain of its subsidiaries transferred approximately 1,194 million common shares with a fair value of approximately $ 68 billion to BAM in exchange for approximately 1,194 million Class A Shares with a fair value of approximately $ 68 billion on a one-for-one basis. Consideration effectively transferred by the Asset Management Company has been computed as the market price of the Class A Shares on the closing date multiplied by the number of Class A Shares owned by BAM’s shareholders prior to the 2025 Arrangement. 105 b) BAM’s interest in the Asset Management Company Prior to the 2025 Arrangement, BAM held an approximate 27 % interest in the Asset Management Company. The fair value of this investment has been determined based on the fair value of the Class A Shares outstanding as of February 4, 2025. As part of the 2025 Arrangement, the Asset Management Company acquired BAM’s net assets from an accounting perspective and as a result its re-acquisition of its own shares are eliminated upon effecting the 2025 Arrangement. c) Other relationships between the Asset Management Company and BAM Prior to the 2025 Arrangement, BAM and the Asset Management Company had entered into various transactions which led to balances between the parties. As part of the 2025 Arrangement these balances were effectively settled and have been excluded from both purchase consideration and net assets acquired. d) Intangible assets In assessing the fair value of the assets and liabilities acquired in the 2025 Arrangement, an intangible asset associated with the assembled workforce of BAM has been identified. The fair value has been assessed as $ 215 million, inclusive of $ 57 million of deferred tax amounts associated with its recognition. 4. INVESTMENTS AS AT DECEMBER 31, (MILLIONS) 2025 2024 Common and preferred shares (a) $ 337 $ 400 Investments in affiliates (b) 787 1,116 Accrued carried interest - mature funds (c) 197 931 Accrued carried interest - new funds (c) 1,636 693 Equity method investments (d) Equity interest in Oaktree 4,671 4,612 Equity interest in Castlelake 720 538 Equity interest in Primary Wave 261 147 Equity interest in Angel Oak 133 — Equity interest in other affiliates 1,053 676 $ 9,795 $ 9,113 Where appropriate, the accounting for the Company’s investments incorporates the changes in fair value of those investments. a. As at December 31, 2025, common and preferred shares were $ 337 million (2024 – $ 400 million). Common shares primarily represents investments of $ 64 million (2024 – $ 64 million) in Brookfield Renewable Energy L.P. and $ 27 million (2024 – $ 25 million) in Brookfield Infrastructure Income Fund Inc. Preferred shares represent investments of $ 188 million (2024 – $ 249 million) in GEMS Education and $ 58 million (2024 – $ 50 million) in Cherry Painting Company, Inc. Common and preferred share investments are carried at fair value with changes in fair value recorded in other expenses, net in the consolidated statements of operations. b. As at December 31, 2025, investments in affiliates are primarily comprised of an interest in BSREP III, a fund which BAM manages, of $ 700 million (2024 – $ 1.0 billion) which is accounted for as an equity investment measured at its NAV in accordance with ASC 321, Investments – Equity Securities. The change in fair value of the Company’s interest in BSREP III was $ 161 million for the year ended December 31, 2025 (2024 - $ 82 million) and is recorded within other expenses, net in the consolidated statements of operations. c. Accrued carried interest represents the disproportionate allocation of capital from our private funds to the extent that such interest is provided for in the relevant fund agreements. Accrued carried interest is accounted for using the equity method of accounting based on the Company’s entitlement to the funds’ net assets as if all investments were liquidated at fair value and all liabilities were satisfied, net of the cumulative amounts that have already been realized. As stipulated in the Relationship Agreement, accrued carried interest in mature funds, as defined therein, is all attributed to BN and accrued carried interest in new funds, including current funds and open-ended funds, as defined therein, is attributed to BN at 33.3 %. Such attribution is achieved via Tracking Shares and non-controlling interests in certain subsidiaries that are entitled to such carried interest. 106 The change in BAM’s accrued carried interest for mature funds during the years ended December 31, 2025, 2024 and 2023 is as follows: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 931 $ 1,394 $ 1,147 Changes in fund fair values ( 734 ) ( 438 ) 298 Realized carried interest — ( 25 ) ( 51 ) Balance, ending $ 197 $ 931 $ 1,394 All mature carried interest is due to BN therefore BAM's net amount of mature carried interest retained is $nil. The change in BAM’s accrued carried interest for new funds during the years ended December 31, 2025, 2024 and 2023 is as follows: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Balance, beginning $ 693 $ 305 $ 124 Changes in fund fair values 943 388 181 Balance, ending $ 1,636 $ 693 $ 305 New fund carried interest is partially due to BN, who is entitled to 33.3 %. After allocating this interest to BN, BAM's net interest in new fund unrealized carried interest is $ 1.1 billion. d. The Company has significant influence, but not control, over the operating and financial policies of its equity method investees by virtue of having the ability to appoint members of these investees' governing bodies. The Company recognized its share of earnings from all of its equity method investments of $ 402 million (2024 – $ 339 million; 2023 - $ 167 million) for the year ended December 31, 2025 within the share of income from equity method investments in its consolidated statements of operations. The Company’s equity method investments include our: i. approximate 74 % economic interest in Oaktree of $ 4.7 billion (2024 – $ 4.6 billion); ii. economic interest in Castlelake of $ 720 million (2024 – $ 538 million); iii. 49.9 % economic interest in LCM of $ 221 million (2024 – $ 186 million); iv. 44 % economic interest in Primary Wave of $ 261 million (2024 – $ 147 million); v. 51.3 % economic interest in Angel Oak of $ 133 million (2024 – $ nil ); vi. approximate 11 % economic interest in Pretium of $ 330 million (2024 – $ 351 million) for which BAM has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in net income. For the year ended December 31, 2025, a decrease of $ 21 million has been recognized on the value of the investment. For the year ended December 31, 2025 an increase of $ 8 million has been recognized on financial assets held by the Company associated with Pretium, which partially offset the change in the value of the investment; vii. limited partner interests in funds of $ 368 million (2024 – $ 29 million) including Pinegrove Fund (2025 – $ 230 million; 2024 – $ 25 million), BPE (2025 – $ 92 million; 2024 – $ nil ), BGTF II (2025 – $ 36 million; 2024 – $ nil ) and; viii. general partner interests in a number of our private funds. Oaktree During the year ended December 31, 2025, the Company increased its investment in Oaktree, resulting in a step-up in the basis of the investment. The step-up occurred due to the Company’s purchase of an additional equity interest, which increased the Company’s economic interest in Oaktree from approximately 73 % to approximately 74 %. The Company paid cash consideration of $ 110 million, of which $ 40 million was provided by BN for its interest in preferred shares redeemable non-controlling interest. The net purchase price for BAM was $ 70 million. We continue to account for our interest in Oaktree as an equity method investment. Primary Wave During the year ended December 31, 2025, the Company increased its investment in Primary Wave resulting in a step-up in the basis of the investment. The step-up occurred due to the Company’s purchase of an additional equity interest for approximately $ 84 million, which increased the Company’s ownership percentage in Primary Wave from approximately 35 % 107 to approximately 44 %. We continue to account for our interest in Primary Wave as an equity method investment as we do not control the business. Castlelake During the year ended December 31, 2025, BAM participated in Castlelake's acquisition of Concora for approximately $ 475 million. As part of this acquisition, the Company contributed cash consideration of $ 116 million directly to Castlelake based on the Company's proportionate ownership. Additionally, the Company contributed $ 81 million for a direct interest in Concora. Overall these investments entitle the Company to an indirect and direct ownership interest of approximately 43 %. The Company’s direct interest in Concora has been accounted for as an equity method investment. Angel Oak During the year ended December 31, 2025, BAM acquired a 51.3 % economic stake in Angel Oak, a leading asset manager specializing in mortgage and consumer products for total consideration of approximately $ 149 million excluding transaction costs. The Company's interest in Angel Oak has been accounted for as an equity method investment. As part of the purchase agreement, the Company may be required to make additional payments as contingent consideration based on Angel Oak's earnings from 2025 to 2027. The Company has estimated the initial value of this contingent consideration which is included as part of the initial investment. Additionally, certain call options were entered into as part of the arrangement and the underlying value has been separately recognized from the initial value of the equity method investment. Pinegrove Fund During the year ended December 31, 2025, the Company invested $ 172 million in the Pinegrove Fund. The Company’s investment in the Pinegrove Fund has been accounted for as an equity method investment. BPE During the year ended December 31, 2025, the Company agreed to sell part of its interest in GEMS Education ($ 54 million) and Spring Education Group ($ 40 million) (collectively the “Seed Assets”) to BPE, a fund that will be managed by the Company. In exchange for the Seed Assets, the Company received units in BPE with an initial redemption value of approximately $ 94 million, which approximates the fair value of the Seed Assets. The units in BPE will be accounted for as an equity method investment and the investments previously held in the Seed Assets will be derecognized. The summarized financial information of all of the Company’s equity method investees, in aggregate, as at December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024 and 2023, is as follows: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Investments $ 99,522 $ 79,740 Assets 111,310 86,488 Liabilities 27,202 19,318 Capital 81,798 67,020 Non-controlling interest 2,310 196 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Revenues $ 8,469 $ 5,156 $ 2,426 Expenses ( 5,861 ) ( 3,997 ) ( 2,806 ) Net income (loss) 2,608 1,160 ( 380 ) Net income attributable to non-controlling interest 69 20 12 108 During the year ended December 31, 2025, BAM disposed of its interest in Redwood Evergreen Fund LP for approximately $ 257 million. Prior to the disposal, the investment in the fund was classified as a disposal group held for sale measured at fair value less costs to sell. During the year ended December 31, 2025, BAM recognized a gain of $ 15 million, reported within Other expenses, net within the consolidated statements of operations upon the disposal of this investment. Investments of Consolidated Funds The summary of the Company's investments held in consolidated funds as at December 31, 2025 and 2024, is as follows: AS AT DECEMBER 31, (MILLIONS) Fair value % of total investments 2025 2024 2025 2024 Equity securities, at fair value $ 253 $ 251 50 % 100 % Debt, at fair value 252 — 50 % — % Total investments, at fair value $ 505 $ 251 100 % 100 % As of December 31, 2025 and 2024, no single issuer or investment, including derivative instruments and underlying portfolio investments of the consolidated funds, had a fair value that exceeded 5% of BAM’s total assets. During the year ended December 31, 2025, BAM assigned part of its commitment in Brookfield Infrastructure Structured Solutions (“BISS”) to a related party. As a result of this BAM is no longer the primary beneficiary of BISS and therefore BISS was deconsolidated during the year ended December 31, 2025. As of December 31, 2025, BAM continues to consolidate BSI II. The investments in consolidated funds are accounted for at their fair value under ASC 946 Financial Services – Investment Companies. During the year ended December 31, 2025, the Company, through BSI II, acquired debt and equity interests in Spring Education. Other income, net of consolidated funds in the consolidated statements of operations, consists primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. For the year ended December 31, 2025, there were $ 47 million of gains recognized from investment activities within Other income, net of consolidated funds on the consolidated statements of operations (2024 – $ nil ; 2023 – $ nil ). 5. VARIABLE INTEREST ENTITIES The Company consolidates certain VIEs for which it is the primary beneficiary either directly or indirectly, through another consolidated entity. VIEs include certain credit focused entities within the Oaktree platform, whereby the purpose of such VIEs is to provide a vehicle that allocates our share of its performance-based fees between the Company and BN, as well as certain consolidated funds where BAM is the primary beneficiary. The fundamental risks of these consolidated VIEs, mainly include loss of invested capital and performance-based fees. The Company does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs. The assets of consolidated VIEs may only be used to settle obligations of these entities. In addition, there is no recourse to the Company for the consolidated VIEs’ liabilities. As at December 31, 2025, the Company had unfunded commitments of $ 500 million to the consolidated funds. AS AT DECEMBER 31, (MILLIONS) 2025 2024 Cash and cash equivalents $ — $ — Investments 411 1,083 Investments of consolidated funds 505 251 Other assets — — Total Assets $ 916 $ 1,334 Borrowings of consolidated funds $ 462 $ 251 Other liabilities — — Total Liabilities $ 462 $ 251 The Company holds variable interests in certain VIEs which are not consolidated as it has been determined that the Company is not the primary beneficiary. VIEs that are not consolidated predominately include investment funds sponsored by or managed by the Company. The Company's investment strategies differ by investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance income. The Company's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments, 109 including the Company's capital interest and any unrealized carried interest. For the year ended December 31, 2025 and 2024, the Company did not provide any financial and other support to unconsolidated VIEs other than its obligated commitments. The assets and liabilities recognized in the Company's consolidated balance sheets related to its maximum exposure to loss of those VIEs of which the Company is determined not to be the primary beneficiary, the non-consolidated VIEs, are as follows: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Investments $ 1,130 $ 1,472 Due from affiliates 4 9 VIE related assets 1,134 1,481 Maximum exposure to loss $ 1,134 $ 1,481 6. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS Fair value approximates carrying value for the following financial instruments that are not measured at fair value in the consolidated financial statements: cash, accounts receivable and other, net, accounts payable and other, net, due to affiliates and due from affiliates. Financial Instruments The following tables summarize the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as at December 31, 2025 and 2024: 2025 AS AT DECEMBER 31, (MILLIONS) Level I Level II Level III NAV Total Assets Cash equivalents $ 1,181 $ — $ — $ — $ 1,181 Financial assets — 7 410 — 417 Investments: Common and preferred shares — — 310 27 337 Investments in affiliates — — — 700 700 Equity method investments under fair value option — — 330 — 330 Total assets at fair value $ 1,181 $ 7 $ 1,050 $ 727 $ 2,965 Liabilities Financial liabilities $ — $ 5 $ 444 $ — $ 449 Total liabilities at fair value $ — $ 5 $ 444 $ — $ 449 2024 AS AT DECEMBER 31, (MILLIONS) Level I Level II Level III NAV Total Assets Cash equivalents $ 172 $ — $ — $ — $ 172 Financial assets — — 231 — 231 Investments: Common and preferred shares 10 — 363 25 398 Investments in affiliates — — — 1,026 1,026 Equity method investments under fair value option — — 351 — 351 Investments held for sale — — 242 — 242 Total assets at fair value $ 182 $ — $ 1,187 $ 1,051 $ 2,420 Liabilities Financial liabilities $ — $ — $ 228 $ — $ 228 Total liabilities at fair value $ — $ — $ 228 $ — $ 228 110 Level III Measurements The fair value measurement of items categorized in Level III of the fair value hierarchy is subject to valuation uncertainty arising from the use of significant unobservable inputs. The significant unobservable inputs used in the fair value measurement of financial assets and liabilities recurringly measured at fair value are discount rates, capitalization rates, volatility assumptions, and inputs to prescribed settlement formulas on certain of our options. Significant changes in these inputs in isolation would have resulted in a significantly higher or lower fair value measurement. The following tables summarize the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as at December 31, 2025 and 2024: AS AT DECEMBER 31, 2025 (MILLIONS) Asset/Liability Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (a) Impact to Valuation from an Increase in Input Financial assets (b) $ 410 Option pricing model Volatility 35 % - 40 % 39 % Higher Discount rate 3 % - 9 % 5 % Lower Common and preferred shares (c) 310 Market approach N/A N/A N/A N/A Equity method investments under fair value option (d) 330 Market approach N/A N/A N/A N/A Financial liabilities (f) 444 Option pricing model Volatility 25 % - 40 % 35 % Higher Discount rate 3 % - 4 % 4 % Lower AS AT DECEMBER 31, 2024 (MILLIONS) Asset/Liability Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (a) Impact to Valuation from an Increase in Input Financial assets (b) $ 231 Option pricing model Volatility 30 % - 40 % 38 % Higher Discount rate 5 % - 9 % 6 % Lower Common and preferred shares (c) 363 Market approach N/A N/A N/A N/A Equity method investments under fair value option (d) 351 Market approach N/A N/A N/A N/A Investments held for sale (e) 242 Market approach N/A N/A N/A N/A Financial liabilities (f) 228 Option pricing model Volatility 30 % - 40 % 38 % Higher Discount rate 5 % - 8 % 5 % Lower (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. (b) Financial assets relate to call options held by the Company to acquire additional shares of Primary Wave, LCM, Angel Oak and Castlelake from other investors of the investee using a prescribed valuation methodology in exchange for cash, Class A Shares of BAM or BN or other forms of consideration at the discretion of the Company. Financial assets also includes a financial guarantee that ensures a pre-determined return is earned on the 11 % economic interest in Pretium. The fair value of these instruments are determined quarterly using a Monte Carlo simulation and various inputs prepared by management. (c) Common shares categorized as Level III represents investments of $ 64 million in Brookfield Renewable Energy L.P. (2024 – $ 64 million). Preferred shares represent $ 188 million of preferred shares in GEMS Education (2024 – $ 249 million) and $ 58 million preferred shares of Cherry Painting Company, Inc. (2024 – $ 50 million). Common and preferred share investments are carried at fair value with changes in fair value recorded in the consolidated statements of operations. (d) Equity method investments under fair value option represents an approximate 11 % economic interest in Pretium of $ 330 million (2024 – $ 351 million) for which BAM has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in the consolidated statements of operations. 111 (e) On March 27, 2025, the Company disposed of its interest in Redwood Evergreen Fund LP for approximately $ 257 million. As a result, for the year ended December 31, 2025, BAM recognized a gain of $ 15 million, reported in Other expenses, net within the consolidated statements of operations. (f) Financial liabilities relate to put options held by other investors of Oaktree, Castlelake, LCM and Primary Wave under which the Company may be required to purchase additional shares of these investees using a prescribed valuation methodology in exchange for cash, Class A Shares of BAM or BN or other forms of consideration at the discretion of the Company. The balance also includes contingent consideration agreed to as part of the acquisition of certain investments and other financial derivatives. The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management. Level III Changes in Fair Value During the year ended December 31, 2025 and 2024, there have been no changes in valuation techniques within Level III that have had a material impact on the valuation of financial instruments. The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Company has used Level III inputs to determine fair value. Total realized and unrealized gains and losses recorded for Level III investments are reported in other expenses, net in the consolidated statements of operations. AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS) Financial assets Common and preferred shares Equity method investments under fair value option Financial liabilities Balance, beginning $ 231 $ 363 $ 351 $ 228 Fair value changes in net income 132 16 ( 21 ) 142 Purchases and other 47 ( 10 ) 40 86 Transfers — ( 59 ) ( 40 ) — Payments — — — ( 12 ) Balance, ending $ 410 $ 310 $ 330 $ 444 AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) Financial assets Common and preferred shares Equity method investments under fair value option Financial liabilities Balance, beginning $ 37 $ 64 $ — $ 122 Fair value changes in net income 68 — — ( 7 ) Purchases 126 532 351 113 Sales — ( 233 ) — — Balance, ending $ 231 $ 363 $ 351 $ 228 Financial Instruments of Consolidated Funds The following tables summarize the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as at December 31, 2025 and 2024: 2025 2024 AS AT DECEMBER 31, (MILLIONS) Level I Level II Level III Total Level I Level II Level III Total Assets Investments in equity securities $ — $ — $ 253 $ 253 $ — $ — $ 251 $ 251 Investments in debt — — 252 252 — — — — Total assets at fair value $ — $ — $ 505 $ 505 $ — $ — $ 251 $ 251 Liabilities Borrowings $ 462 $ — $ — $ 462 $ 251 $ — $ — $ 251 Total liabilities at fair value $ 462 $ — $ — $ 462 $ 251 $ — $ — $ 251 112 Level III Measurements of Consolidated Funds AS AT DECEMBER 31, 2025 (MILLIONS) Level III Asset/Liability Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (a) Impact to Valuation from an Increase in Input Investments in equity securities $ 253 Market approach N/A N/A N/A N/A Investments in debt 252 Par (net of amortized discount) plus accrued interest Discount rate 14 % 14 % Lower AS AT DECEMBER 31, 2024 (MILLIONS) Level III Asset/Liability Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Average (a) Impact to Valuation from an Increase in Input Investments in equity securities $ 251 Market approach N/A N/A N/A N/A Level III Changes in Fair Value of Consolidated Funds AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS) Investments in debt Investments in equity securities Balance, beginning $ — $ 251 Fair value changes in net income 25 22 Deconsolidation of consolidated funds — ( 267 ) Purchases, net 227 247 Balance, ending $ 252 $ 253 AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) Investments in equity securities Balance, beginning $ — Fair value changes in net income — Purchases, net 251 Balance, ending $ 251 7. CORPORATE BORROWINGS BAM established a $ 750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders. The facility is available in U.S. and Canadian dollars, where U.S. dollar draws are subject to the U.S. Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points. The margins are subject to change based on the Company's credit rating. During the year ended December 31, 2025, BAM increased its revolving credit facility by $ 300 million to $ 1.05 billion. During the year ended December 31, 2025, BAM completed three debt offerings, issuing an aggregate of $ 2.5 billion of senior unsecured notes. On April 24, 2025, BAM issued $ 750 million of 10-year senior unsecured notes at a fixed interest rate of 5.795 %. On September 9, 2025, BAM issued $ 750 million of 30-year senior unsecured notes at a fixed interest rate of 6.077 %. On November 18, 2025, BAM issued $ 600 million of 5-year senior unsecured notes at a fixed interest rate of 4.653 %, and $ 400 million of 10-year senior unsecured notes at a fixed interest rate of 5.298 %. All or a portion of the senior unsecured notes may be redeemed at BAM's option in whole or in part, at any time and from time to time, prior to the stated maturity, at the redemption price set forth in the agreement. If a change of control triggering event occurs, subject to certain conditions, BAM will be required to make an offer to repurchase all outstanding senior unsecured notes in cash equal to 101 % of the principal amount plus accrued and unpaid interest up to the date of, but not including, the date of repurchase. 113 BAM has the following debt obligations outstanding: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Remaining Maturity Carrying Value Fair Value Carrying Value Fair Value Senior unsecured notes 4.653 %, Due 11/15/2030 $ 600 $ 605 $ — $ — 58 months 5.795 %, Due 4/24/2035 750 786 — — 113 months 5.298 %, Due 1/15/2036 400 400 — — 121 months 6.077 %, Due 9/15/2055 750 769 — — 357 months Deferred financing costs ( 22 ) ( 22 ) — — N/A Total corporate borrowings $ 2,478 $ 2,538 $ — $ — Fair value is determined by broker quote and these notes would be classified as level II within the fair value hierarchy. Borrowings of Consolidated Funds Certain consolidated funds also maintain revolving credit facilities that are secured by the limited partner commitments of the respective fund. The consolidated funds of BAM have the following borrowings: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Facility Capacity Weighted Average Interest Rate Weighted Average Remaining Maturity Commitment fee rate Consolidated funds Revolving credit facilities $ 462 $ 251 $ 745 6.1 % 1 month 0.3 % Total borrowings of consolidated funds $ 462 $ 251 BAM was in compliance with all financial covenants associated with its corporate borrowings as of December 31, 2025 and 2024. 8. DERIVATIVES Freestanding derivatives are instruments that the Company have entered into in the normal course of business to achieve certain risk management objectives as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, total return swaps, and foreign currency forward contracts. As a result of the use of derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, the Company enters into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments. The table below summarizes the aggregate notional amount and fair value of the derivative instruments. The notional amount represents the absolute value of all outstanding derivative contracts. AS AT DECEMBER 31, 2025 (MILLIONS) Assets Liabilities Notional Amount Fair Value Notional Amount Fair Value Freestanding derivatives Foreign-currency forward contracts $ 325 $ 4 $ 405 $ 3 Total return swap contracts 66 3 8 1 Interest rate swap contracts — — 370 1 $ 391 $ 7 $ 783 $ 5 Nominal realized and unrealized gains and losses arising from freestanding derivatives were recorded in the consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively. There were no derivatives outstanding that were designated as hedging instruments for accounting purposes as of December 31, 2025 and 2024. Derivatives are recorded gross as financial assets or financial liabilities in the consolidated balance sheets. 114 9 . REVENUE The Company offers investment products on a number of strategies, specifically renewable power and transition, infrastructure, private equity, real estate and credit, operating in more than 50 countries. The majority of base management and advisory fees are earned from customers located in the U.S. The following table sets out revenue disaggregated by investment strategy and geography. FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS) Renewable power and transition Infrastructure Private equity Real estate Credit Total Base management and advisory fees United States $ 111 $ 142 $ 90 $ 574 $ 311 $ 1,228 United Kingdom 229 227 88 302 16 862 Canada 203 400 73 23 80 779 Other 164 202 46 87 16 515 Incentive fees 145 320 95 — — 560 $ 852 $ 1,291 $ 392 $ 986 $ 423 $ 3,944 FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) Renewable power and transition Infrastructure Private equity Real estate Credit Total Base management and advisory fees United States $ 105 $ 204 $ 120 $ 558 $ 214 $ 1,201 United Kingdom 163 189 83 252 — 687 Canada 172 374 71 23 25 665 Other 105 171 48 80 — 404 Incentive fees 129 295 — — — 424 $ 674 $ 1,233 $ 322 $ 913 $ 239 $ 3,381 FOR THE YEAR ENDED DECEMBER 31, 2023 (MILLIONS) Renewable power and transition Infrastructure Private equity Real estate Credit Total Base management and advisory fees United States $ 103 $ 190 $ 104 $ 556 $ 126 $ 1,079 United Kingdom 151 200 45 174 — 570 Canada 176 422 104 44 12 758 Other 71 140 70 78 — 359 Incentive fees 111 265 — — — 376 $ 612 $ 1,217 $ 323 $ 852 $ 138 $ 3,142 115 10 . INCOME TAXES The following is a summary of the Company's income tax expense (benefit). The income before provision for taxes consists of the following: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 United States $ 171 $ 671 $ 828 Canada 429 503 599 Other 2,325 1,372 1,127 $ 2,925 $ 2,546 $ 2,554 The provision (benefit) for taxes consists of the following: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Current United States $ 126 $ 89 $ 147 Canada 34 ( 92 ) 65 Other 216 167 113 Total provision for current tax 376 164 325 Deferred United States 34 60 57 Canada 72 208 31 Other 45 6 4 Total provision for deferred tax 151 274 92 Provision for income tax United States 160 149 204 Canada 106 116 96 Other 261 173 117 Total Provision for income tax $ 527 $ 438 $ 417 116 The Company's effective income tax rate is different from the Company's federal statutory income tax rate due to the following differences set out below: FOR THE YEAR ENDED DECEMBER 31, (MILLIONS) 2025 $ % Income before provision for taxes $ 2,925 Federal statutory income tax rate 439 15 % (Reduction) increase in rate resulting from: United States International operations subject to different tax rates 60 2 % Stock compensation ( 43 ) ( 1 ) % Changes in valuation allowance 197 7 % Other ( 15 ) — % Canada Provincial tax 56 2 % Other 5 — % United Kingdom 42 1 % Other jurisdictions 8 — % Incentive distributions ( 78 ) ( 3 ) % Taxable income attributable to non-controlling interests ( 59 ) ( 2 ) % Portion of gains subject to different tax rates ( 85 ) ( 3 ) % Effective income tax rate $ 527 18 % FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2024 2023 Combined statutory income tax rate 27 % 27 % (Reduction) increase in rate resulting from: Incentive distributions ( 3 ) % ( 3 ) % International operations subject to different tax rates ( 2 ) % ( 4 ) % Taxable income attributable to non-controlling interests ( 1 ) % ( 1 ) % Portion of gains subject to different tax rates ( 2 ) % ( 2 ) % Other ( 2 ) % ( 1 ) % Effective income tax rate 17 % 16 % A summary of the tax effects of the temporary differences is as follows: AS AT DECEMBER 31, (MILLIONS) 2025 2024 2023 Assets Losses (United States) $ 445 $ 552 $ 720 Losses (Other) 6 6 6 Investment basis differences/net unrealized gains and losses 318 28 ( 83 ) Deferred income tax assets before valuation allowance $ 769 $ 586 $ 643 Valuation allowance ( 197 ) — — Deferred income tax assets $ 572 $ 586 $ 643 Liabilities Investment basis differences/net unrealized gains and losses 169 46 40 Deferred income tax liabilities $ 169 $ 46 $ 40 117 Management evaluates the realizability of deferred tax assets by considering, among other factors, projections of future taxable income, beginning with historical results and incorporating assumptions regarding the amount and character of future taxable income. These assumptions require judgment and are consistent with the Company's operating plans and estimates used to manage the business. As at December 31, 2025, a valuation allowance of $ 197 million has been recorded against deferred tax assets related to net operating loss carryforwards in the U.S. that are not more likely than not to be utilized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased. As at December 31, 2025 , the Company has net operating loss carryforwards in the U.S. of appro ximately $ 2.1 billion ( 2024 – $ 2.6 billion) that expire after 2026. As at December 31, 2025 , the Company has accumulated undistributed earnings generated by certain foreign subsidiaries, which it intends to indefinitely reinvest and have not recorded any deferred taxes with respect to outside tax basis difference on these subsidiaries. As at December 31, 2025, the Company did not have any material unrecognized tax benefits related to uncertain tax positions. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. and other local tax authorities. As of December 31, 2025 , certain of the Company’s U.S. and non-U.S. income tax returns for 2018 through 2023 are open to or are under examination. 11. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. BAM applies the two-class method in calculating earnings per share for each of its two classes of shares and participating securities, based on their pro-rata share of earnings. Class A Shares held under the ES Plans in one or more private wholly owned subsidiaries of BAM are classified as treasury shares and have been excluded from the calculation of earnings per share. BAM has certain dilutive securities relating to outstanding escrowed shares and options held by employees and non-employees that have been reflected accordingly in diluted earnings per share figures. Basic and diluted net income per share of common stock for the years ended December 31, 2025, 2024 and 2023 was calculated as follows: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Class A Shares Class B Shares Class A Shares Class B Shares Class A Shares Class B Shares Numerator Net income $ 2,482 $ — $ 2,165 $ — $ 1,837 $ — Denominator Weighted average of common stock outstanding - basic 1,612.2 — 1,603.4 — 1,585.8 — Dilutive effect of conversion of options and escrowed shares using treasury stock method 16.3 — 10.2 — 4.8 — Weighted average of common stock outstanding - diluted 1,628.5 — 1,613.6 — 1,590.6 — Net Income per Share Earnings per share - basic $ 1.54 $ 1.54 $ 1.35 $ 1.35 $ 1.16 $ 1.16 Earnings per share - diluted $ 1.52 $ 1.54 $ 1.34 $ 1.35 $ 1.16 $ 1.16 The following weighted average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded in the above computation of diluted net income per share attributable to common shareholders for the period presented due to their anti-dilutive effect: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Management stock options of BAM 3.8 4.2 8.2 Escrow shares of BAM 3.6 3.7 5.0 Total 7.4 7.9 13.2 118 12. SHARE-BASED COMPENSATION BAM and BN have granted share-based compensation awards to certain employees and directors of BAM, under a number of compensation plans (the “Equity Plans”). The Equity Plans provide for the granting of share options, restricted shares, escrowed shares and deferred share and restricted share units which contain certain service or performance requirements of BAM or BN. The expense recognized for share-based compensation is summarized in the following table: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Expense arising from equity-settled share-based payment transactions Management Share Option Plan $ 44 $ 24 $ 24 Escrowed Stock Plan 60 20 14 Restricted Stock Plan 55 51 48 $ 159 $ 95 $ 86 Expense/(Recovery) arising from cash-settled share-based payment transactions Deferred Share Unit Plan $ 88 $ 42 $ 15 Restricted Share Unit Plan — 1 ( 3 ) $ 88 $ 43 $ 12 The share-based payment plans are described below. Management Share Option Plan BAM recognizes any awards associated with the existing Equity Plans for its employees irrespective of whether the awards were granted by BN or BAM. Options issued under the Management Share Option Plan (“MSOP”) of both BN and BAM vest over a period of up to five years , expire ten years after the grant date and are settled through issuance of Class A Shares or BN Class A Shares. The exercise price is equal to the market price at the grant date. For the year ended December 31, 2025, the total expense incurred with respect to MSOP totaled $ 44 million (2024 – $ 24 million; 2023 – $ 24 million). The change in the number of options during the year ended December 31, 2025 was as follows: Number of Brookfield Asset Management Ltd. Options 1 Number of Brookfield Corporation Options 2, 3 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2025 12,565 $ 34.54 19,955 $ 20.06 2025 Arrangement 6,085 31.67 16,133 17.38 Transferred 90 31.03 1,214 22.49 Granted 4,708 59.62 375 40.19 Exercised ( 1,365 ) 23.85 ( 9,334 ) 14.41 Cancelled ( 417 ) 44.27 ( 117 ) 29.26 Outstanding as at December 31, 2025 21,666 $ 39.65 28,226 $ 20.91 1. Represents the continuity of BAM options relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 2. Represents the continuity of BN's options relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM. 3. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. 119 The change in the number of options during the year ended December 31, 2024 was as follows: Number of Brookfield Asset Management Ltd. Options 1 Number of Brookfield Corporation Options 2, 3 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2024 9,969 $ 30.81 27,700 $ 18.77 Transferred ( 363 ) 32.80 ( 1,805 ) 18.49 Granted 4,319 40.07 — — Exercised ( 1,004 ) 20.64 ( 5,749 ) 14.06 Cancelled ( 356 ) 36.96 ( 191 ) 27.82 Outstanding as at December 31, 2024 12,565 $ 34.54 19,955 $ 20.06 1. Represents the continuity of BAM options relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 2. Represents the continuity of BN's options relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM. 3. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. The change in the number of options during the year ended December 31, 2023 was as follows: Number of Brookfield Asset Management Ltd. Options 1 Number of Brookfield Corporation Options 2, 3 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2023 5,631 $ 22.87 32,742 $ 17.07 Transferred ( 455 ) 19.18 ( 2,656 ) 14.40 Granted 5,721 35.13 — — Exercised ( 652 ) 16.99 ( 2,027 ) 11.45 Cancelled ( 276 ) 35.27 ( 359 ) 26.58 Outstanding as at December 31, 2023 9,969 $ 30.81 27,700 $ 18.77 1. Represents the continuity of BAM options relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 2. Represents the continuity of BN's options relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM. 3. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. The weighted-average grant date fair value of BAM MSOP granted for the year ended December 31, 2025 was $ 11.18 ( 2024 – $ 6.12 ; 2023 – $ 5.26 ) , and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE YEAR ENDED DECEMBER 31 (MILLIONS) Unit 2025 2024 2023 Weighted-average share price US$ $ 59.62 $ 40.07 $ 35.13 Average term to exercise Years 7.5 7.5 7.5 Share price volatility 1 % 29.9 29.2 28.5 Liquidity discount % 25.0 25.0 25.0 Weighted-average annual dividend yield % 3.7 4.8 4.6 Risk-free rate % 4.4 4.2 3.9 1. Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share prices over a similar period to the average term to exercise. The total fair value of the options granted during the year ended December 31, 2025 was $ 53 million (2024 – $ 38 million; 2023 – $ 41 million). 120 Escrowed Stock Plan The Escrowed Stock (“ES”) shares generally vest over five years and must be held to the fifth anniversary of the grant date. At a date no more than ten years from the grant date, all outstanding ES shares will be exchanged for Class A Shares or BN Class A Shares based on the respective market value at the time of the exchange. The number of Class A Shares or BN Class A Shares issued on exchange will be less than the number of shares purchased under the ES Plan resulting in a net reduction in the number of Class A Shares or BN Class A Shares. For the year ended December 31, 2025, the total expense incurred with respect to the ES Plan totaled $ 60 million (2024 – $ 20 million; 2023 – $ 14 million). The changes in the number of ES shares during the year ended December 31, 2025 was as follows: Number of Brookfield Asset Management Ltd. ES Shares 1 Number of Brookfield Asset Management ULC ES Shares 2 Number of Brookfield Corporation ES Shares 3, 4 Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2025 3,242 $ 32.24 1,494 $ 40.07 10,878 $ 23.49 2025 Arrangement 9,038 31.62 3,409 40.32 26,502 23.23 Transferred ( 505 ) 32.36 ( 250 ) 40.07 393 40.13 Granted 3,544 59.62 — — 750 40.19 Exercised ( 61 ) 29.64 — — ( 1,344 ) 25.76 Cancelled — — — — — — Outstanding as at December 31, 2025 15,258 $ 38.24 4,653 $ 40.26 37,179 $ 23.74 1. Represents the continuity of BAM ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 2. Represents the continuity of the Asset Management Company ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 3. Represents the continuity of BN ES relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM. 4. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. The changes in the number of ES shares during the year ended December 31, 2024 was as follows: Number of Brookfield Asset Management Ltd. ES Shares 1 Number of Brookfield Asset Management ULC ES Shares 2 Number of Brookfield Corporation ES Shares 3, 4 Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2024 3,321 $ 32.18 — $ — 11,740 $ 23.58 Transferred — — — — ( 18 ) 27.74 Granted — — 1,494 40.07 — — Exercised ( 79 ) 29.64 — — ( 835 ) 24.50 Cancelled — — — — ( 9 ) 30.34 Outstanding as at December 31, 2024 3,242 $ 32.24 1,494 $ 40.07 10,878 $ 23.49 1. Represents the continuity of BAM ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 2. Represents the continuity of the Asset Management Company ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 3. Represents the continuity of BN ES relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM. 4. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. 121 The changes in the number of ES shares during the year ended December 31, 2023 were as follows: Number of Brookfield Asset Management Ltd. ES Shares 1 Number of Brookfield Corporation ES Shares 2, 3 Number of ES Shares (000's) Weighted-Average Exercise Price Number of ES Shares (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2023 2,361 $ 29.64 15,211 $ 23.48 Transferred ( 575 ) 29.64 ( 3,449 ) 23.14 Granted 1,535 35.13 — — Cancelled — — ( 22 ) 29.00 Outstanding as at December 31, 2023 3,321 $ 32.18 11,740 $ 23.58 1. Represents the continuity of BAM ES relating to only those employees of the Company based on BAM's weighted average exercise price which differs from that of BN. 2. Represents the continuity of BN ES relating to only those employees of the Company based on BN's weighted average exercise price which differs from that of BAM. 3. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. The weighted-average grant date fair value of BAM escrowed shares granted for the year ended December 31, 2025 was $ 11.18 (2024 – $ 6.12 ; 2023 – $ 5.26 ), and was determined using the Black-Scholes model of valuation with inputs to the model as follows: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) Unit 2025 2024 2023 Weighted-average share price US$ $ 59.62 $ 40.07 $ 35.13 Average term to exercise Years 7.5 7.5 7.5 Share price volatility 1 % 29.9 29.2 28.5 Liquidity discount % 25.0 25.0 25.0 Weighted-average annual dividend yield % 3.7 4.8 4.6 Risk-free rate % 4.4 4.2 3.9 1. Share price volatility was determined based on implied volatilities consistent with BN's historical share prices over a similar period to the average term to exercise. The total fair value of the escrowed shares granted during the year ended December 31, 2025 was $ 40 million (2024 – $ 30 million; 2023 – $ 25 million). Restricted Stock Plan The Restricted Stock Plan awards executives with Class A Shares and BN Class A Shares purchased on the open market (“Restricted Shares”). Under the Restricted Stock Plan, Restricted Shares awarded vest over a period of up to five years , except for Restricted Shares awarded in lieu of a cash bonus, which may vest immediately. Vested and unvested Restricted Shares are subject to a hold period of up to five years . Holders of Restricted Shares are entitled to vote and to receive associated dividends. Employee compensation expense for the Restricted Stock Plan is charged against income over the vesting period. Compensation expense for the year ended December 31, 2025 was $ 55 million (2024 – $ 51 million; 2023 – $ 48 million). Deferred Share Unit Plan The Deferred Share Unit (“DSU”) Plan provides for the issuance of DSUs. Under the DSU plan, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of DSUs. The DSUs vest over periods of up to five years , and accumulate additional DSUs at the same rate as dividends on Class A Shares and BN Class A Shares based on the market value of the shares at the time of the dividend. Participants are not allowed to convert vested DSUs into cash until retirement or cessation of employment. The value of the DSUs, when converted to cash, will be equivalent to the market value of the Class A Shares or BN Class A Shares at the time the conversion takes place. The fair value of the vested DSUs as at December 31, 2025 was $ 701 million (December 31, 2024 – $ 150 million). Employee compensation expense for these plans is charged against net income over the vesting period of the DSUs. For those awards issued as part of the 2022 Arrangement, the mark-to-market movement is recoverable from BN. The amount payable in respect of vested DSUs changes as a result of dividends and share price movements. All of the amounts attributable to changes in the amounts payable by the Company are recorded as employee compensation expense in the period of the change. For the year ended December 31, 2025, employee compensation expense totaled $ 88 million (2024 – $ 42 million; 2023 – $ 15 million). 122 Restricted Share Unit Plan The Restricted Share Unit (“RSU”) Plan provided for the issuance of RSUs. Under the RSU plan, qualifying employees and directors received varying percentages of their annual incentive bonus or directors’ fees in the form of RSUs. The RSUs vest over periods of up to five years . Participants were not allowed to convert RSUs into cash until retirement or cessation of employment. The value of the RSUs, when converted into cash, was equivalent to the difference between the market price of equivalent number of Class A Shares or BN Class A Shares at the time the conversion takes place and the market price on the date the RSUs are granted. During the year ended December 31, 2024, the RSU Plan was settled and participating employees and directors of BAM received a cash settlement equal to the value of the RSUs at the date of settlement or an option to acquire preferred shares in subsidiaries of BN with a redemption value equal to the value of their RSUs on the date of the settlement of the RSU plan. The value of the outstanding options associated with the settlement of the RSU plan as at December 31, 2025 was $ nil (December 31, 2024 – $ 21 million) and the fair value of outstanding RSUs was $ nil (December 31, 2024 – $ nil ). For the year ended December 31, 2025, expense associated with the RSU's totaled $ nil (2024 – $ 1 million; 2023 – recovery of $ 3 million). The change in the number of DSUs and RSUs outstanding for the year ended December 31, 2025 was as follows: DSUs RSUs Number of Units Tracking to BAM Ltd. share price (000's) Number of Units Tracking to BN 1 share price (000's) Number of Units Tracking to BN 1 share price (000's) Weighted-Average Exercise Price (CAD) Outstanding as at January 1, 2025 387 2,297 — $ — 2025 Arrangement 1,694 10,515 — — Transferred 13 233 — — Granted and reinvested 138 104 — — Exercised and cancelled ( 178 ) ( 898 ) — — Outstanding as at December 31, 2025 2,054 12,251 — $ — 1. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. The change in the number of DSUs and RSUs outstanding for the year ended December 31, 2024 was as follows: DSUs RSUs Number of Units Tracking to BAM Ltd. share price (000's) Number of Units Tracking to BN 1 share price (000's) Number of Units Tracking to BN 1 share price (000's) Weighted-Average Exercise Price (CAD) Outstanding as at January 1, 2024 788 4,804 854 $ 2.62 Transferred ( 7 ) ( 97 ) — — Granted and reinvested 30 26 — — Exercised and cancelled ( 424 ) ( 2,436 ) ( 854 ) 2.62 Outstanding as at December 31, 2024 387 2,297 — $ — 1. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. 123 The change in the number of DSUs and RSUs outstanding for the year ended December 31, 2023 was as follows: DSUs RSUs Number of Units Tracking to BAM Ltd. share price (000's) Number of Units Tracking to BN 1 share price (000's) Number of Units Tracking to BN 1 share price (000's) Weighted-Average Exercise Price (CAD) Outstanding as at January 1, 2023 915 5,785 1,234 $ 2.62 Transferred ( 123 ) ( 822 ) ( 380 ) 2.62 Granted and reinvested 30 40 — — Exercised and cancelled ( 34 ) ( 199 ) — — Outstanding as at December 31, 2023 788 4,804 854 $ 2.62 1. Adjusted to reflect the three-for-two stock split completed on October 9, 2025. 13. PREFERRED SHARES REDEEMABLE NON-CONTROLLING INTEREST As at December 31, 2025, subsidiaries of the Company have issued and outstanding certain classes of preferred shares which are outlined below: 2025 2024 AS AT DECEMBER 31, (MILLIONS, EXCEPT SHARE AMOUNTS) Number of Shares Value Number of Shares Value BUSHI Preferred Shares BUSHI Tracking Shares 200 $ 1,115 100 $ 1,804 Class B senior preferred 1,621,093 41 1,621,093 41 Class B preferred 2,520,571 63 2,520,571 63 Class A preferred 5,909,372 148 7,797,431 195 BMHL Tracking Shares 100 31 100 — $ 1,398 $ 2,103 The movement in the carrying value of the preferred shares redeemable non-controlling interest is as follows: AS AT AND FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 Balance, beginning $ 2,103 $ 2,166 Issuances 124 158 Distributions ( 199 ) — Deemed settlement of Class A preferred shares as a result of 2025 Arrangement ( 47 ) — Changes in redemption value included in net income attributable to preferred shares non-controlling interest ( 480 ) ( 211 ) Settlements ( 94 ) — Other ( 9 ) ( 10 ) Balance, ending $ 1,398 $ 2,103 BUSHI and BMHL Tracking Shares In December 2022, BUSHI and BMHL, subsidiaries of BAM, entered into arrangements with BN whereby BUSHI and BMHL issued preferred shares to BN in exchange for BN's holdings in BUSHI's and BMHL's common shares. In April 2025, BUSHI entered into an arrangement with BN whereby BUSHI issued the third series of Tracking Shares to BN in exchange for $ 25 million of cash. The third series of Tracking Shares provides BN with an economic interest equal to 1.5 % of certain investments held by Oaktree, an equity method investment of BAM, excluding any fee earnings, carried interest, incentive fees and performance fees of that equity method investee. During the year ended December 31, 2025, BUSHI paid BN a $ 176 million cash dividend on the BUSHI Tracking Shares, BMHL paid BN a $ 14 million cash dividend on the BMHL tracking shares, and BUSHI declared a $ 7 million distribution to BN on the Class A Preferred Shares and $ 2 million on the Senior Class B Preferred Shares. 124 BUSHI Class B senior preferred and preferred shares In addition to the Tracking Shares, BUSHI has also issued class B senior preferred shares and class B preferred shares. The class B senior preferred shares entitle the holder to cumulative preferential cash dividends at $ 1.36375 per share per annum and are ranked senior to the Tracking Shares, class B preferred shares and common shares. The class B senior preferred shares are redeemable by the issuer, whose board is controlled by BN, upon the tenth anniversary of issuance at a redemption amount of $ 25 per share plus accrued and unpaid dividend. The class B preferred shares are redeemable at the option of both the holder and the issuer at $ 25 per share (the redemption amount) plus unpaid dividends. These preferred shares are non-voting and rank junior to the BUSHI tracking shares and senior to common shares of the entity, and are entitled to non-cumulative cash dividends at 6.7 % per annum on their redemption amount. Class A preferred shares The class A preferred shares were issued by a subsidiary of BAM to BN, redeemable at the option of the holder and the issuer at a redemption amount of $ 25 per share plus accrued and unpaid dividends and these preferred shares are non-voting. During the year ended December 31, 2025, 1,888,059 class A preferred shares worth $ 47 million were deemed to have been settled upon consolidation as a result of the 2025 Arrangement. The Company accounts for the changes in the value of the redeemable non-controlling interest in accordance with ASC 480 , Distinguishing Liabilities from Equity . The Company elects for the BUSHI tracking shares and class B senior preferred shares to recognize changes in the redemption value immediately as they occur and adjust the carrying amount to equal the redemption value at the end of each reporting period. During the year ended December 31, 2025, the BMHL tracking shares were amended such that a future redemption by BUSHI, whose board is controlled by BN, is now permitted upon the tenth anniversary of issuance consistent with the BUSHI tracking shares. As a result, BAM recognizes changes in the redemption value of the BMHL tracking shares by adjusting the carrying amount to equal the redemption value at the end of each reporting period. The BUSHI class B preferred shares are currently redeemable and are therefore measured at their redemption amount at each reporting date. However, no adjustment to the carrying value of the class B preferred shares is expected as dividends declared are expected to be paid on or prior to each reporting date. 14. NON-CONTROLLING INTEREST Non-Controlling Interests in Consolidated Entities Net income (loss) generated by the respective subsidiaries is allocated to non-controlling interest in consolidated entities based on the substantive contractual terms of the subsidiaries’ governing agreements that specify the allocation of income or loss. The majority of income attributable to non-controlling interest is comprised of BN's one third share of carried interest revenue generated on new funds. The movement in the carrying value of non-controlling interest is as follows: AS AT AND FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 Balance, beginning $ 336 $ 173 Net income 369 151 Contributions 61 16 2025 Arrangement 31 — Distributions (a) ( 24 ) ( 4 ) Balance, ending $ 773 $ 336 (a) Distributions include a $ 17 million adjustment to derecognize the remaining non-controlling interest in a consolidated entity that was acquired during the year ended December 31, 2025. Non-Controlling Interests in Consolidated Funds The following table sets forth a summary of changes in the non-controlling interests in consolidated funds. AS AT AND FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 Balance, beginning $ — $ — Net income 24 — Contributions 163 — Deconsolidation of consolidated funds ( 166 ) — Balance, ending $ 21 $ — 125 15. ACCOUNTS RECEIVABLE AND OTHER, NET AS AT DECEMBER 31, (MILLIONS) 2025 2024 Accounts receivable $ 106 $ 225 Prepaid expenses 128 175 Other assets 99 83 $ 333 $ 483 Other assets is primarily comprised of tax recoveries not yet collected. 16. ACCOUNTS PAYABLE AND OTHER, NET AS AT DECEMBER 31, (MILLIONS) 2025 2024 Accounts payable $ 599 $ 490 Accrued liabilities 911 602 Other liabilities 949 257 $ 2,459 $ 1,349 Other liabilities are primarily comprised of current taxes payable, accrued bonuses, and amounts payable related to cash based compensation vesting. 17. PROPERTY, PLANT AND EQUIPMENT, NET AS AT DECEMBER 31, (MILLIONS) 2025 2024 Property, plant, and equipment, net $ 43 $ 30 Leasehold improvements, net 49 28 $ 92 $ 58 Depreciation expense of $ 12 million (2024 – $ 6 million, 2023 – $ 3 million) related to property, plant, and equipment, and $ 8 million (2024 – $ 5 million, 2023 – $ 8 million) related to leasehold improvements for the years ended December 31, 2025, 2024 and 2023, is included in general, administrative, and other in the consolidated statements of operations. 18. GOODWILL AND INTANGIBLE ASSETS, NET The carrying value of goodwill was $ 236 million as of December 31, 2025 (2024 – $ 251 million). Intangible assets, net consists of the following: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Contractual customer relationships $ 362 $ 145 Accumulated amortization and impairment ( 128 ) ( 107 ) Intangible assets, net $ 234 $ 38 Changes in intangible assets, net consists of the following: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Balance, beginning of year $ 38 $ 42 2025 Arrangement 215 — Amortization ( 20 ) ( 4 ) Other 1 — Balance, end of year $ 234 $ 38 Intangible assets, net consist of acquired contractual rights to earn future fee income, which have a weighted-average amortization period of 10 years as well as indefinite life intangible assets. Amortization of intangible assets held at December 31, 2025 is expected to be $ 25 million, $ 24 million, $ 24 million, and $ 24 million for each of the years ending December 31, 2026, 2027, 2028 and 2029, respectively. 126 In accordance with ASC 350 Intangibles — Goodwill and Other , management reviews its goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, and considers factors including, but not limited to, expected cash flows from its interest in future management fees and the ability to raise new funds. During the year ended December 31, 2025, the Company recorded an impairment loss of $ 15 million (2024 – $ nil ) related to a specific underlying strategy that will not be continued. In all other instances the fair value was found to be in excess of the carrying value of the relevant reporting unit. In addition, an assessment of impairment indicators was performed with respect to certain intangible assets and no indicator of impairment was identified. The fair value of the reporting units for both goodwill and intangibles was determined utilizing a discounted cashflow model along with inputs from assessing multiples of publicly traded companies. The key assumptions used in the calculation of fair value included assumptions on growth rates, effective tax rates, operating margins, and the weighted average cost of capital, (“WACC”). Specifically, we calculated the residual value by dividing the residual free cash flow by a capitalization rate equal to the WACC 15.0 % (2024 – 14.5 %) minus the expected long-term growth rate of the free cash flows 4.0 % (2024 – 4.0 %). No significant changes have occurred since the impairment test was performed. 19. CASH AND CASH EQUIVALENTS AS AT DECEMBER 31, 2025 2024 Cash $ 402 $ 232 Cash equivalents 1,181 172 $ 1,583 $ 404 The carrying value of cash and cash equivalents approximates their fair value. Cash equivalents comprise of a deposit with BN of $ 1.1 billion (2024 – $ 132 million). 20 . RELATED PARTY TRANSACTIONS In the normal course of business, BAM enters into transactions and derives substantially all of its revenue from the provision of asset management services to affiliates and related parties. During the year ended December 31, 2025, the Company recorded revenues of $ 4.8 billion (2024 – $ 3.8 billion, 2023 – $ 3.5 billion), with affiliates and related parties on its consolidated statements of operations. BAM also has investment management agreements with the funds that it manages. In accordance with these agreements, these funds may bear certain operating costs and expenses which are initially paid by BAM and subsequently reimbursed by the funds. As outlined in the Relationship Agreement, BN is responsible for costs associated with certain share-based awards for certain employees, some of which are subject to revaluation at each balance sheet date, and will also bear the cost of the employee entitlement to carried interest on mature funds either directly or indirectly through reimbursement to the Company. Income generated from BN under the Relationship Agreement relating to these instruments is recognized as other revenues in the consolidated statements of operations on a gross basis as the instruments vest or are incurred. During the year ended December 31, 2025, BAM recognized recharges of $ 268 million (2024 – $ 178 million; 2023 – $ 142 million), in the consolidated statements of operations in other revenues under this arrangement. Due from affiliates and due to affiliates consisted of the following: AS AT DECEMBER 31, (MILLIONS) 2025 2024 Due from affiliates Operating and loan receivables $ 1,669 $ 1,768 Receivables from affiliates related to share and cash-based compensation 1,611 732 $ 3,280 $ 2,500 Due to affiliates Operating and loan payables $ 682 $ 897 Payables to affiliates related to share and cash-based compensation 38 195 $ 720 $ 1,092 127 Due from affiliates Due from affiliates of $ 3.3 billion (2024 – $ 2.5 billion) consists of $ 1.7 billion (2024 – $ 1.8 billion) of receivables from affiliates and related parties which are primarily comprised of base management fees and fund expense reimbursements which are earned in accordance with underlying agreements of the respective funds that BAM is the general partner of or manages. Due from affiliates also includes working capital facilities, and other outstanding credit facilities provided in the normal course of business. Loans to affiliates are unsecured with floating rates of SOFR plus 235 basis points or a fixed interest rate of 0.9 % to 4.2 %. Maturities on loans to related parties range from 2026 to 2057. The loans were generally issued to finance acquisitions and fund commitments. In the normal course of business, BAM may periodically assign or transfer balances to related parties. During the year ended December 31, 2025, BAM assigned a $ 117 million loan to a related party at market terms. The remaining $ 1.6 billion (2024 – $ 0.7 billion) represents receivables from affiliates related to share and cash-based compensation. Due to affiliates Due to affiliates of $ 720 million (2024 – $ 1.1 billion) consists of operating and loan payables to affiliates and related parties and payables to affiliates related to share and cash-based compensation. Operating payables are for services received in the normal course of business. Loans payables to affiliates and related parties are unsecured with a fixed interest rate of 6.8 % to 10.2 %. The loans were generally issued for working capital management. The payables to affiliates related to share and cash-based compensation relate to certain adjustments to share and cash-based compensation amounts under the Relationship Agreement as described above. For the year ended December 31, 2025 the Company recognized tax attributes purchased from a related party of $ 136 million (2024 – $ 114 million). Other related party transactions During the year ended December 31, 2025 and as part of the 2025 Arrangement, BAM settled the outstanding tracking option which was previously recognized at cost less impairment. As a result, as at December 31, 2025, the carrying amount of these options is $ nil (December 31, 2024 – $ 75 million). Accounts payable include amounts payable under a tax receivable agreement with Oaktree for $ 116 million as at December 31, 2025 (2024 – $ 128 million). Other liabilities as at December 31, 2025 include $ 46 million (2024 – $ 35 million) of lease liabilities associated with related parties. During the year, certain Brookfield-managed funds exited an investment whereby BAM was required to warehouse the investment due to timing of a certain co-investment. The total value of this warehouse was $ 103 million. Subsequently, BAM received $ 105 million from the co-investors in settlement of the warehoused interest representing the entirety of this warehouse investment. On December 22, 2025, BAM acquired certain limited partner units of a partnership from BN, and Brookfield Finance Inc. (“BFI”) for consideration in the form of redeemable preferred shares with a redemption amount of $ 42 million and $ 52 million respectively. These units were subsequently redeemed for cash equal to the redemption amount. As BN and BFI are affiliates of the Company, these transactions were considered related party transactions. The transactions resulted in an aggregate decrease of approximately $ 94 million in cash and taxes payable in the consolidated balance sheet. BAM incurs certain facilities and technology expenses in the normal course of business that are charged by BN. These costs are included within the other operating expenses in BAM's consolidated statement of operations. In addition, BAM does business with and on behalf of certain of its affiliates and investees; all such arrangements are conducted on a negotiated basis. 21 . COMMITMENTS AND CONTINGENCIES Commitments On January 31, 2019, a subsidiary of the Company committed $ 2.8 billion to BSREP III, of which $ 2.2 billion has been funded as at December 31, 2025 (2024 – $ 2.1 billion). The remainder of the commitment will be funded by BN. In the normal course of business, the Company enters into contractual obligations which include commitments to provide bridge financing and other equity commitments. These other equity commitments primarily include signed investment commitments for bridging portfolio company acquisitions and limited partner commitments with third parties and funds and or entities managed by BAM. The Company earns fees in connection with bridge financing and bears the risk associated with syndicating the commitment. As at December 31, 2025, the Company had $ 6.6 billion of such commitments outstanding (December 31, 2024 – $ 3.3 billion). During the year the Company assigned $ 166 million commitments to related parties. 128 The Company established a $ 750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders. The facility is available in U.S. and Canadian dollars, where U.S. dollar draws are subject to the U.S. 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 its revolving credit facility by $ 300 million to $ 1.05 billion. As at December 31, 2025, the Company has drawn $ nil on the $ 1.05 billion facility. Guarantees BAM may enter into guarantees in respect of certain co-investments in which there is carried interest. The amount guaranteed is up to the carried interest amount paid to the general partners of the respective funds, net of taxes. In the event that the general partners default on their carried interest clawback obligations, BAM will make payments under the guarantees. As at December 31, 2025 and 2024, BAM has not recognized any liabilities with respect to such guarantees as no carried interest has been paid in the relevant funds. The Company may also enter into guarantees where BAM is the general partner or to assist the general partners of specific funds in securing financing. In the event that the general partners default on their financing obligations, the Company will be liable for outstanding payments under the guarantees. As at December 31, 2025, the Company had $ 179 million of such guarantees outstanding (December 31, 2024 – $ 300 million). Contingencies Carried interest clawback Carried interest is realized when an underlying investment is profitably disposed of after the fund’s cumulative returns have met a certain threshold for return of capital. When applicable, the Company records a liability for potential clawback obligations due to changes in the unrealized value of a fund’s remaining investments and where the Company has previously received carried interest distributions. The actual clawback liability, however, generally does not become payable until the end of a fund’s life. No liability for potential clawback obligations has been recorded associated with any of our funds as at December 31, 2025 and December 31, 2024. Litigation The Company may from time to time be involved in litigation and claims incidental to the conduct of its business. The Company’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against the Company. As of December 31, 2025 and 2024 there was no material outstanding litigation. The Company accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, balance sheet or cash flows. Taxation We operate in jurisdictions with differing tax laws and tax regulations. Certain jurisdictions in which we operate have proposed draft legislation, which if not enacted in their current form, may result in a change to our effective income tax rate. These tax laws and regulations are complex and involve uncertainties in the application to our facts and circumstances that may be open to interpretation. We recognize benefits for these uncertain tax positions based upon a process that requires judgment regarding the technical application of the laws, regulations, and various related judicial opinions. If, in our judgment, it is more likely than not (defined as a likelihood of more than 50%) that the tax uncertainty will be resolved favorably for us, we estimate an amount that ultimately will be realized. This process is inherently subjective since it requires our assessment of the probability of future outcomes. We evaluate these uncertain tax positions on a quarterly basis, including consideration of changes in facts and circumstances, such as new regulations or recent judicial opinions, as well as the status of audit activities by taxing authorities. Changes to our estimate of the amount to be realized are recorded in our provision for income taxes during the year in which the change occurred. 22 . SEGMENT REPORTING The Company operates through five distinct operating segments that earn management fees from each respective investment strategy. The performance of these segments is reviewed by the Chief Executive Officer, who acts as the CODM. The CODM uses internal management reports to assess performance and allocate resources, and the information provided herein is consistent with the Company's internal reporting structure and information reviewed by the CODM on a regular basis. The Company's operating segments are comprised of: 129 • Infrastructure: Primarily includes managing our flagship infrastructure fund series focused on investing in high-quality infrastructure assets on a value basis. In addition, we manage permanent capital vehicles and perpetual strategies which include BIP, listed on the NYSE and TSX. • Renewable Power and Transition: Primarily includes managing our flagship renewable power and transition fund series focused on investments aimed at accelerating the global transition to a net-zero carbon economy and driving clean energy investments in emerging markets. In addition, we manage BEP, which is listed on the NYSE and TSX. • Private Equity: Includes managing our global opportunistic flagship funds, special investments strategy, secondaries strategy, thematic private equity strategies and regional private equity strategies. In addition, we manage BBU which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services listed on the NYSE and TSX. • Real Estate: Includes the management of our opportunistic real estate flagship fund series and secondaries strategy. In addition, we manage BPG and certain other perpetual funds focused on core plus assets and a non-traded REIT. • Credit: Includes managing our private credit strategies, opportunistic credit strategies, structured credit strategies, and liquid credit strategies. These products seek to provide flexible, specialized capital solutions to borrowers and deliver attractive risk-adjusted returns to our clients across a range of debt strategies. Asset information by segment is not disclosed because this information is not used by the CODM to make resource deployment decisions or evaluate the performance of the Company's segments. Segment Revenues Segment Revenues is a key metric analyzed by the CODM to determine the growth in recurring cash flows from our asset management business. Segment Revenues include base management fees, advisory fees, performance fees and transaction fees, but excludes incentive distributions, carried interest and revenues of consolidated funds. In addition, Segment Revenues include management fees earned by Oaktree on a 100% basis along with our share of Segment Earnings of partner managers excluding Oaktree. See below for our reconciliation of total revenues as presented on the consolidated statements of operations to Segment Revenues. FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Revenues Total Revenues $ 4,817 $ 3,980 $ 4,062 Add: Fee revenues of equity method investments 1,458 1,313 1,214 Less: Incentive distributions ( 560 ) ( 424 ) ( 378 ) Less: Carried interest allocations (a) ( 209 ) ( 16 ) ( 399 ) Less: Interest and dividend revenue ( 98 ) ( 143 ) ( 172 ) Less: Interest and dividend revenue of consolidated funds ( 31 ) — — Less: Other revenues (b) ( 264 ) ( 232 ) ( 194 ) Less: Costs recovered from affiliates (c) ( 298 ) ( 218 ) ( 156 ) Total Segment Revenues $ 4,815 $ 4,260 $ 3,977 (a) This adjustment removes the impact of both unrealized and realized carried interest allocations. (b) This adjustment removes other revenues earned that are non-cash in nature, which include certain cost recoveries and reimbursements from affiliates. (c) This adjustment removes the impact of compensation costs that will be borne by affiliates. Segment Expenses Segment Expenses reflect direct costs associated with earning Segment Revenues, which include compensation and benefits, facilities, technology, professional fees and travel and other operating expenses. Expenses such as depreciation and amortization, taxes, interest expense, mark-to-market gains (losses), transaction related costs, non-recurring gains (losses), deferred compensation, and expenses of consolidated funds are not reflective of segment performance and are therefore excluded from Segment Expenses. In addition, Segment Expenses include segment related expenditures of Oaktree on a 100% basis. See below for our reconciliation of total expenses as presented on the consolidated statements of operations to Segment Expenses. 130 FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Expenses Total Expenses $ 2,044 $ 1,680 $ 1,546 Add: Expenses of equity method investments (a) 906 880 815 Less: Costs recovered from affiliates (b) ( 298 ) ( 218 ) ( 156 ) Less: Total carried interest allocation compensation (c) ( 146 ) ( 93 ) ( 86 ) Less: Interest expense ( 87 ) ( 22 ) ( 14 ) Less: Other costs (d) ( 72 ) ( 103 ) ( 105 ) Less: Interest expense of consolidated funds ( 28 ) — — Total Segment Expenses $ 2,319 $ 2,124 $ 2,000 (a) This adjustment adds expenses associated with Segment Revenues of equity method investments. (b) This adjustment removes the impact of compensation costs that will be borne by affiliates. (c) These adjustments remove the impact of both unrealized and realized carried interest compensation expense. (d) This adjustment removes the impact of depreciation and amortization and certain capital depreciation costs recharged from BAM's affiliates as well as the impact of non-asset management costs related to non-recurring costs not core to the asset management business. Total Segment Expenses is comprised of the following major categories: FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Total segment compensation and benefits $ 1,674 $ 1,570 $ 1,491 Total segment facilities, technology and professional fees 335 370 357 Total segment travel and other operating expenses 310 184 152 Total Segment Expenses $ 2,319 $ 2,124 $ 2,000 Segment Earnings Segment Earnings are computed as Segment Revenues less Segment Expenses and are used to provide additional insight into the operating profitability of our asset management activities. These earnings are recurring in nature and not based on future realization events. The following tables present the financial data for the Company’s five segments for the years ended December 31, 2025, 2024 and 2023: FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total Segments Segment Revenues $ 967 $ 682 $ 450 $ 1,083 $ 1,633 $ 4,815 Segment Expenses Compensation and benefits ( 255 ) ( 168 ) ( 244 ) ( 364 ) ( 643 ) ( 1,674 ) Facilities, technology and professional fees ( 51 ) ( 28 ) ( 57 ) ( 75 ) ( 124 ) ( 335 ) Travel and other operating expenses (a) ( 41 ) ( 35 ) ( 28 ) ( 41 ) ( 165 ) ( 310 ) Segment Earnings $ 620 $ 451 $ 121 $ 603 $ 701 $ 2,496 FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total Segments Segment Revenues $ 907 $ 513 $ 470 $ 968 $ 1,402 $ 4,260 Segment Expenses Compensation and benefits ( 235 ) ( 132 ) ( 235 ) ( 340 ) ( 628 ) ( 1,570 ) Facilities, technology and professional fees ( 64 ) ( 26 ) ( 51 ) ( 93 ) ( 136 ) ( 370 ) Travel and other operating expenses (a) ( 7 ) ( 9 ) ( 23 ) ( 28 ) ( 117 ) ( 184 ) Segment Earnings $ 601 $ 346 $ 161 $ 507 $ 521 $ 2,136 131 FOR THE YEAR ENDED DECEMBER 31, 2023 (MILLIONS) Infrastructure Renewable power and transition Private equity Real estate Credit Total Segments Segment Revenues $ 950 $ 483 $ 475 $ 920 $ 1,149 $ 3,977 Segment Expenses Compensation and benefits ( 223 ) ( 116 ) ( 229 ) ( 360 ) ( 563 ) ( 1,491 ) Facilities, technology and professional fees ( 69 ) ( 23 ) ( 49 ) ( 98 ) ( 118 ) ( 357 ) Travel and other operating expenses (a) ( 4 ) ( 8 ) ( 20 ) ( 34 ) ( 86 ) ( 152 ) Segment Earnings $ 654 $ 336 $ 177 $ 428 $ 382 $ 1,977 (a) Travel and other operating expenses include travel, sales commissions, insurance, marketing and conferences, and general and administrative costs; none of which individually are 10% or more of total Segment Expenses. See below for our reconciliation of income before taxes as presented on the consolidated statements of operations to Segment Earnings. FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) 2025 2024 2023 Income before taxes $ 2,925 $ 2,546 $ 2,554 Depreciation and amortization (a) 68 14 14 Carried interest allocations, net of carried interest allocation compensation (b) ( 63 ) 77 ( 313 ) Other income and expenses, net of other costs and non-asset management related items (c) 274 182 220 Other income, net of consolidated funds ( 47 ) — — Interest expense 87 22 14 Interest expense of consolidated funds 28 — — Interest and dividend revenue ( 98 ) ( 143 ) ( 172 ) Interest and dividend revenue of consolidated funds ( 31 ) — — Other revenues (d) ( 237 ) ( 232 ) ( 194 ) Share of income from equity method investments (e) ( 402 ) ( 339 ) ( 167 ) Segment Earnings from equity method investments (e) 552 433 399 Incentive distributions ( 560 ) ( 424 ) ( 378 ) Total Segment Earnings $ 2,496 $ 2,136 $ 1,977 (a) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets as well as certain capital depreciation costs recharged from BAM's affiliates. (b) This adjustment removes the impact of both unrealized and realized carried interest allocations and the associated compensation expense. (c) This adjustment removes other expenses associated with fair value changes as well as the impact of other costs and non-asset management related items such as non-recurring costs that are not considered part of the ongoing asset management business. (d) This adjustment adds back other revenues related to the recovery of compensation costs. (e) These adjustments remove our share of income from equity method investments, included in items (a) to (d) above and includes our share of Segment Earnings from equity method investments. 23 . SUBSEQUENT EVENTS Quarterly Dividend On February 3, 2026, the board of directors of BAM declared a quarterly dividend of $ 0.5025 per share, payable on March 31, 2026 to shareholders of record as at the close of business on February 27, 2026. Oaktree On October 13, 2025, BAM and BN announced a proposed transaction to acquire the remaining equity interests in the Oaktree business. We expect this transaction to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. 132 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.