[10-Q] Brookfield Asset Management Ltd. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
Brookfield Asset Management Ltd. (BAM) reported stronger Q3 2025 results. Total revenues were $1,252 million, up from $1,117 million a year ago, driven by base management and advisory fees of $859 million versus $768 million and incentive fees of $115 million versus $105 million. Net income rose to $692 million from $537 million, with diluted EPS of $0.44 versus $0.34.
For the nine months, revenues reached $3,423 million (from $2,917 million) and net income was $1,783 million (from $1,428 million). The quarter included $112 million of unrealized carried interest allocations, up from $55 million. Expenses increased as the business scaled, with compensation, operating, and G&A at $489 million versus $430 million.
The balance sheet showed cash and cash equivalents of $1,062 million (from $404 million at year-end) and corporate borrowings of $1,486 million. Operating cash flow was $745 million in the quarter. As of November 6, 2025, BAM had 1,610,718,658 Class A Limited Voting Shares and 21,280 Class B Limited Voting Shares outstanding.
Positive
- Revenue and earnings growth: Q3 revenues $1,252M vs $1,117M; net income $692M vs $537M; base fees $859M vs $768M.
Negative
- None.
Insights
Q3 showed double-digit fee growth and higher earnings.
BAM posted revenue of
Scaling costs rose, with compensation and operating expenses at
Key items to watch include sustained fee momentum and carried interest trends through the fiscal year. Operating cash flow of
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended September 30, 2025
or
| TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period from ___ to ___
Commission file number: 001-41563
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | ||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
| Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of November 6, 2025, the registrant had 1,610,718,658 Class A Limited Voting Shares and 21,280 Class B Limited Voting Shares outstanding.
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION | |||||||||||
| Item 1. | Financial Statements | 8 | |||||||||
| Unaudited Condensed Consolidated Financial Statements: | |||||||||||
Condensed Consolidated Balance Sheets as at September 30, 2025 and December 31, 2024 | 8 | ||||||||||
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 | 9 | ||||||||||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 | 10 | ||||||||||
Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024 | 11 | ||||||||||
Condensed Consolidated Statements of Cash Flows for the Three and Nine Months Ended September 30, 2025 and 2024 | 13 | ||||||||||
Notes to the Condensed Consolidated Financial Statements | 15 | ||||||||||
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 45 | |||||||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 91 | |||||||||
| Item 4. | Controls and Procedures | 92 | |||||||||
PART II - OTHER INFORMATION | |||||||||||
| Item 1. | Legal Proceedings | 92 | |||||||||
| Item 1A. | Risk Factors | 92 | |||||||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 92 | |||||||||
| Item 3. | Defaults Upon Senior Securities | 93 | |||||||||
| Item 4. | Mine Safety Disclosures | 93 | |||||||||
| Item 5. | Other Information | 93 | |||||||||
| Item 6. | Exhibits and Financial Statement Schedules | 94 | |||||||||
SIGNATURES | 95 | ||||||||||
3
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of other relevant securities legislation, including applicable securities laws in Canada, which reflect our current views with respect to, among other things, our operations and financial performance (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Asset Management Ltd. and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Asset Management Ltd. are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “outlook”, “believe”, “think”, “expect”, “potential”, “continue”, “may”, “should”, “seek”, “approximately”, “predict”, “intend”, “will”, “plan”, “estimate”, “anticipate”, the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. Such forward-looking statements are subject to risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity.
We believe these factors include those described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (our “Annual Report”). These factors should be read in conjunction with the other cautionary statements that are included in this report and in our other filings with the U.S. Securities and Exchange Commission (the “SEC”). We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
CERTAIN TERMS USED IN THIS REPORT
In this report, “BAM”, “we”, “our”, “us”, or the “Company” refers to Brookfield Asset Management Ltd. For periods prior to the closing date of the 2025 Arrangement, references to historical financial information of BAM refers to the historical financial statements of Brookfield Asset Management ULC as the “Predecessor” of BAM (“Asset Management Company”). The term “BN” means Brookfield Corporation and its subsidiaries (including the perpetual affiliates (as defined below)) other than BAM and its subsidiaries and does not, for greater certainty, include BAM, BWS (as defined below) or Oaktree (as defined below) and their affiliates. The term “Brookfield” means BAM and BN, collectively.
Additional information about BAM is available on our website at https://bam.brookfield.com and on the EDGAR section of the SEC website at www.sec.gov. The information on our website is not, and shall not be deemed to be, a part of this report or incorporated by reference into any other filings we make with the SEC. Information is also available on the Canadian Securities Administrators’ (“CSA”) website at www.sedarplus.ca.
Unless the context suggests otherwise, references to:
•“2022 Arrangement” means the court approved plan of arrangement involving BN as a result of which (i) the shareholders of BN, while retaining their shares of BN, became shareholders of BAM, which acquired a 25% interest in our asset management business through common shares of the Asset Management Company, and (ii) BN changed its name from “Brookfield Asset Management Inc.” to “Brookfield Corporation”;
•“2025 Arrangement” has the meaning ascribed thereto in “Part I—Item 1. Financial Statements”;
•“AEL” means American Equity Investment Life Holding Company;
•“AEL Mandate” means the May 2, 2024 acquisition of AEL by BWS through its subsidiary American National Group LLC. We manage AEL insurance capital under an investment management agreement with certain of AEL's operating companies;
•“AI” means artificial intelligence;
•“Angel Oak” means the October 1, 2025 acquisition of a 51.29% economic interest in Angel Oak Companies, LLC, a leading asset manager specializing in innovative mortgage and consumer products;
•“Assets Under Management” or “AUM” has the meaning ascribed thereto under “Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”;
•“BAM Partnership” means BAM Partners Trust;
•“BAIIF” means Brookfield AI Infrastructure Fund;
4
•“BBU” means Brookfield Business Partners L.P., together with its subsidiaries including its paired corporation, Brookfield Business Corporation;
•“BCP” means Brookfield Capital Partners;
•“BEP” means Brookfield Renewable Partners L.P., together with its subsidiaries including its paired corporation, Brookfield Renewable Corporation;
•“BGTF” means Brookfield Global Transition Fund;
•“BIP” means Brookfield Infrastructure Partners L.P., together with its subsidiaries including its paired corporation, Brookfield Infrastructure Corporation;
•“BPE” means Brookfield Private Equity Fund;
•“BPG” means Brookfield Property Group, including Brookfield Property Partners L.P. and BN’s directly held, wholly-owned real estate entities;
•“BPREP” means Brookfield Premier Real Estate Partners;
•“BPY” means Brookfield Property Partners L.P., together with its subsidiaries;
•“Brookfield REIT” means Brookfield Real Estate Income Trust;
•“BSI” means Brookfield Special Investments;
•“BSIP” means Brookfield Super-Core Infrastructure Partners;
•“BSREP” means Brookfield Strategic Real Estate Partners;
•“BWS” means Brookfield Wealth Solutions Ltd., a paired entity to BN which offers a range of retirement services, wealth protection products and tailored capital solutions;
•“Castlelake” means our 51% economic interest in Fee-Related Earnings, 7.5% interest in carried interest, 20% of returns from general partner (“GP”) commitments of Castlelake Group TopCo L.P., and 51% of GP commitments for in-market and future Castlelake funds;
•“Concora” means our 43% indirect and direct ownership interest in Concora Super Holdco L.P.;
•“Class A Shares” means the class A limited voting shares in the capital of BAM;
•“Class B Shares” means the class B limited voting shares in the capital of BAM;
•“consolidated funds” means certain funds in which BAM is the primary beneficiary, as defined under US GAAP, and therefore consolidates their balance sheet and results of operations;
•“corporate liquidity” consists of cash, short-term financial assets, as well as the undrawn portions of the $300 million revolving credit facility established on November 8, 2022, in which BN is the lender, and a $1.05 billion five-year revolving credit facility established on August 29, 2024 and upsized in August and September 2025, in which we are the borrower, through bilateral agreements with a group of third party lenders, and excludes consolidated fund investments and borrowings;
•“CORRA” means the Canadian Overnight Repo Rate Average;
•“CTF” means Catalytic Transition Fund;
•“Distributable Earnings”, a non-GAAP measure, has the meaning ascribed thereto under “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”;
•“Fee-Bearing Capital”, a supplemental financial measure, has the meaning ascribed thereto under “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”;
•“Fee-Related Earnings”, a non-GAAP measure, has the meaning ascribed thereto under “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”;
•“Fee Revenues”, a non-GAAP measure, has the meaning ascribed thereto under “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”;
•“GEMS Education” means our warehoused investment in a Dubai-based international education provider, Global Education Management Systems, acquired on July 12, 2024, as part of a Brookfield-led consortium of investors including BAM, BSI, BWS, and certain co-investors;
5
•“Group deployable capital” consists of: (1) corporate liquidity of the Company, consolidated funds, and the perpetual affiliates, and (2) uncalled private fund commitments, which are third-party commitments available for drawdown in the private funds of BAM;
•“mature fund” means a fund which had already significantly deployed capital upon completion of the 2022 Arrangement;
•“new sponsored fund” or “new fund” means a Brookfield fund launched on or after the date of the 2022 Arrangement;
•“Oaktree” means Oaktree Capital Management, L.P., together with its affiliates, Oaktree Capital II, L.P. General (“OCM II General”), Oaktree Capital II, L.P. Manager (“OCM II Manager”), Oaktree Capital II, L.P New Fund (“OCM II New Fund”), Oaktree AIF Investments, L.P., Oaktree Capital Management (Cayman) L.P. and Oaktree Investment Holdings, L.P. and their consolidated subsidiaries;
•“perpetual affiliates” means BEP, BIP, BBU and BPG;
•“Pinegrove Ventures” means our investment platform business of SVB Financial Group, SVB Capital (rebranded to Pinegrove Ventures after acquisition), acquired on September 26, 2024 through Pinegrove Venture Partners (“Pinegrove”), our venture investment platform formed with Sequoia Heritage;
•“Pretium” means our approximately 11% economic interest in Pretium Holdings, LP and Pretium CV Holdings, LP acquired on June 29, 2024;
•“Relationship Agreement” means the agreement dated November 8, 2022 among BN, BAM and the Asset Management Company to govern aspects of their relationship following the 2022 Arrangement, as further described under Note 1 “Organization” of the condensed consolidated financial statements of BAM;
•“Segment Earnings”, a key metric, are computed as Segment Revenues less Segment Expenses;
•“Segment Expenses”, a key metric, are direct costs associated with earning Segment Revenues, which include compensation and benefits, facilities, technology, professional fees and travel and other operating expenses. 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 excluded from Segment Expenses. In addition, Segment Expenses include segment related expenditures of Oaktree on a 100% basis;
•“Segment Revenues”, a key metric, 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 our partner managers;
•“SOFR” means the Secured Overnight Financing Rate published by the Federal Reserve Bank of New York (or a successor administrator);
•“Transitional Services Agreement” means the agreement dated November 8, 2022 among BN, BAM and the Asset Management Company in which the Asset Management Company provides BN and BAM services to support day-to-day corporate activities. The Asset Management Company also provides to BN, as required from time to time and on a cost recovery basis, services of its investment personnel to assist in acquisitions or other transactions undertaken by BN;
•“Uncalled Fund Commitments”, a supplemental financial measure, has the meaning ascribed thereto under “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”.
BAM prepares its financial statements in conformity with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our asset management business, including for performance measurement, capital allocation and valuation purposes. BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our asset management business. These non-GAAP financial measures should not be considered as the sole measure of BAM’s or our asset management business’ performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S. GAAP. These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers. Non-GAAP measures include, but are not limited to: (i) Distributable Earnings, (ii) Fee Revenues, and (iii) Fee-Related Earnings. Supplemental financial measures include Fee-Bearing Capital, AUM and Uncalled Fund Commitments. The asset management business includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for the asset management business.
6
For more information on non-GAAP measures and other financial metrics, see “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, where applicable, are included in “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” in this report.
The financial information contained in this report is presented in U.S. dollars and, unless otherwise indicated, all references to “$” are to U.S. dollars. All references to C$ are to Canadian dollars. All information in this report is presented as at September 30, 2025, unless otherwise noted.
7
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS, EXCEPT SHARE AMOUNTS) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Accounts receivable and other, net | |||||||||||
| Financial assets | |||||||||||
| Due from affiliates | |||||||||||
| Investments | |||||||||||
| Investments held for sale | |||||||||||
| Investments of consolidated funds | |||||||||||
| Deferred income tax assets | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities | |||||||||||
| Accounts payable and other, net | $ | $ | |||||||||
| Financial liabilities | |||||||||||
| Due to affiliates | |||||||||||
| Corporate borrowings | |||||||||||
| Borrowings of consolidated funds | |||||||||||
| Deferred income tax liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies | |||||||||||
| Preferred shares redeemable non-controlling interest | |||||||||||
| Equity | |||||||||||
| Common stock: | |||||||||||
Class A, no par value, unlimited authorized, | |||||||||||
Class A held in treasury, no par value, | ( | ( | |||||||||
Class B, no par value, unlimited authorized, | |||||||||||
| Retained deficit | ( | ( | |||||||||
| Accumulated other comprehensive income | |||||||||||
| Additional paid-in capital | |||||||||||
| Total common equity | |||||||||||
| Non-controlling interest in consolidated entities | |||||||||||
| Non-controlling interest in consolidated funds | |||||||||||
| Total equity | |||||||||||
| Total liabilities, redeemable non-controlling interest and equity | $ | $ | |||||||||
See notes to condensed consolidated financial statements
8
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Base management and advisory fees | $ | $ | $ | $ | |||||||||||||||||||
| Incentive fees | |||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||
| Carried interest allocations | |||||||||||||||||||||||
| Realized | |||||||||||||||||||||||
| Unrealized | ( | ||||||||||||||||||||||
| Total investment income | ( | ||||||||||||||||||||||
| Interest and dividend revenue | |||||||||||||||||||||||
| Interest and dividend revenue of consolidated funds | |||||||||||||||||||||||
| Other revenues | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Compensation, operating, and general and administrative expenses | |||||||||||||||||||||||
| Compensation and benefits | ( | ( | ( | ( | |||||||||||||||||||
| Other operating expenses | ( | ( | ( | ( | |||||||||||||||||||
| General, administrative and other | ( | ( | ( | ( | |||||||||||||||||||
| Total compensation, operating, and general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||
| Carried interest allocation recovery (compensation) | |||||||||||||||||||||||
| Realized | ( | ( | ( | ( | |||||||||||||||||||
| Unrealized | ( | ( | ( | ||||||||||||||||||||
| Total carried interest allocation recovery (compensation) | ( | ( | ( | ||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Interest expense of consolidated funds | ( | ( | |||||||||||||||||||||
| Total expenses | ( | ( | ( | ( | |||||||||||||||||||
| Other expenses, net | ( | ( | ( | ( | |||||||||||||||||||
| Share of income from equity method investments | |||||||||||||||||||||||
| Other income, net of consolidated funds | |||||||||||||||||||||||
| Income before taxes | |||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Net loss (income) attributable to: | |||||||||||||||||||||||
| Preferred shares redeemable non-controlling interest | $ | $ | $ | $ | |||||||||||||||||||
| Non-controlling interest in consolidated entities | ( | ( | ( | ( | |||||||||||||||||||
| Non-controlling interests in consolidated funds | ( | ( | |||||||||||||||||||||
| Net income attributable to the common stockholders | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average shares | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
See notes to condensed consolidated financial statements
9
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Equity method investments | ( | ||||||||||||||||||||||
| Currency translation | ( | ||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
| Comprehensive loss (income) attributable to: | |||||||||||||||||||||||
| Preferred shares redeemable non-controlling interest | $ | $ | $ | $ | |||||||||||||||||||
| Non-controlling interest in consolidated entities | ( | ( | ( | ( | |||||||||||||||||||
| Non-controlling interests in consolidated funds | ( | ( | |||||||||||||||||||||
| Comprehensive income attributable to the common stockholders | $ | $ | $ | $ | |||||||||||||||||||
See notes to condensed consolidated financial statements
10
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
| AS AT AND FOR THE THREE MONTHS ENDED (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 June 30, 2025 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share subscriptions | — | — | ( | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of treasury shares, net | ( | — | — | ( | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deconsolidation of consolidated funds | — | — | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AS AT AND FOR THE THREE MONTHS ENDED (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 June 30, 2024 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share subscriptions | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of treasury shares, net | — | — | ( | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | — | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to condensed consolidated financial statements
11
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
| AS AT AND FOR THE NINE MONTHS ENDED (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 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share subscriptions | — | — | ( | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of treasury shares, net | ( | — | — | ( | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 Arrangement | — | — | ( | ( | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deconsolidation of consolidated funds | — | — | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AS AT AND FOR THE NINE MONTHS ENDED (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, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share subscriptions | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of treasury shares, net | — | — | ( | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distributions | — | — | — | — | — | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See notes to condensed consolidated financial statements
12
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||||||||||||
| Other expenses, net | |||||||||||||||||||||||
| Other income, net of consolidated funds | ( | ( | |||||||||||||||||||||
| Share of income from equity method investments, net of cash distributions | ( | ( | ( | ( | |||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Deferred income taxes | ( | ( | |||||||||||||||||||||
| Stock-based equity awards | |||||||||||||||||||||||
| Unrealized carried interest allocation, net | ( | ( | ( | ||||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Changes in investments of consolidated funds | ( | ||||||||||||||||||||||
| Changes in other working capital and non-cash operating items | ( | ( | ( | ||||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Acquisitions | |||||||||||||||||||||||
| Investments | ( | ( | ( | ( | |||||||||||||||||||
| Acquisition of subsidiaries, net of cash acquired | |||||||||||||||||||||||
| Other assets | ( | ( | ( | ( | |||||||||||||||||||
| Dispositions and distributions received | |||||||||||||||||||||||
| Investments | |||||||||||||||||||||||
| Disposition of subsidiaries, net of cash | |||||||||||||||||||||||
| Investments held for sale | ( | ( | |||||||||||||||||||||
| (Advances to) repayments from related parties | ( | ||||||||||||||||||||||
| ( | ( | ( | ( | ||||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Distributions to common stockholders | ( | ( | ( | ( | |||||||||||||||||||
| (Repayments) borrowings of consolidated funds | ( | ||||||||||||||||||||||
| Distributions to non-controlling and redeemable non-controlling interests | ( | ( | ( | ( | |||||||||||||||||||
| Purchase of treasury shares | ( | ( | |||||||||||||||||||||
| Corporate borrowings issuance, net | |||||||||||||||||||||||
| Deferred financing fees | ( | ( | |||||||||||||||||||||
| Contributions from parent | |||||||||||||||||||||||
| Capital raised from non-controlling interests | |||||||||||||||||||||||
| Preferred equity issuances | |||||||||||||||||||||||
| Issuance of related party loans | |||||||||||||||||||||||
| Issuance of tracking option | |||||||||||||||||||||||
| ( | ( | ( | ( | ||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Change in cash and cash equivalents | ( | ( | |||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | |||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||
| Balance, end of period | $ | $ | $ | $ | |||||||||||||||||||
See notes to condensed consolidated financial statements
13
BROOKFIELD ASSET MANAGEMENT LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Supplemental cash flow disclosures | |||||||||||||||||||||||
| Other working capital and non-cash operating items | |||||||||||||||||||||||
| Accounts receivable and other, net | $ | $ | ( | $ | $ | ( | |||||||||||||||||
| Accounts payable and other, net | ( | ( | |||||||||||||||||||||
| Due from affiliates | ( | ( | ( | ||||||||||||||||||||
| Due to affiliates | ( | ( | ( | ||||||||||||||||||||
| Other non-cash operating items | |||||||||||||||||||||||
| $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||
| Supplemental disclosure of cash flow information | |||||||||||||||||||||||
| Income taxes paid | $ | $ | $ | $ | |||||||||||||||||||
| Interest paid | $ | $ | $ | $ | |||||||||||||||||||
| Supplemental disclosure of non-cash investing and financing activities | |||||||||||||||||||||||
| Non-cash investing and financing activities related to 2025 Arrangement | $ | $ | $ | $ | |||||||||||||||||||
See notes to condensed consolidated financial statements
14
BROOKFIELD ASSET MANAGEMENT LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
Brookfield Asset Management Ltd. (“BAM”, “we”, “our”, “us”, or the “Company”) is an alternative asset manager listed on the New York Stock Exchange (“NYSE”) and Toronto Stock Exchange (“TSX”) under the symbol BAM. BAM focuses on renewable power and transition, infrastructure, real estate, private equity and credit, operating in various markets globally.
BAM was incorporated on July 4, 2022 and its head office is located at Brookfield Place, 250 Vesey Street, 15th Floor, New York, NY, 10281-0221 and its registered office is located at 1055 West Georgia Street, 1500 Royal Centre, P.O. Box 11117, Vancouver, British Columbia V6E 4N7.
On 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 unaudited condensed consolidated financial statements of BAM have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and are presented in U.S. Dollars. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. The condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented in accordance with U.S. GAAP. The results reported in these condensed consolidated financial statements should not necessarily be regarded as indicative of results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the annual audited consolidated and combined financial statements of the Asset Management Company for the year ended December 31, 2024, as filed in our Form 8-K/A dated April 3, 2025.
The preparation of the condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the condensed consolidated financial statements are reasonable. Such estimates include those used in determining the fair value of investments, equity accounting for investments, and the accounting for share-based and performance-based compensation. Actual results may differ from those estimates and such differences may be material.
Certain of the comparative figures have been reclassified to conform with the current period's presentation.
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.
15
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 outstanding various 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 condensed 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 condensed consolidated statement of operations. Carried interest entitlement on BSREP III is also determined using the HLBV method. The first series of Tracking Shares has a redemption clause whereby BUSHI, whose board is controlled by BN, may elect to redeem the Tracking Shares upon the tenth anniversary of issuance. While the first series of Tracking Shares is not currently redeemable, the Company believes that the first 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 Tracking Shares are redeemed, the holder retains no further economic entitlement to the carried interest of the funds or limited partner investment interest included with those respective Tracking Shares.
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 three months ended September 30, 2025, the second series of Tracking Shares was 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 first and third series of Tracking Shares, and accordingly, the Company believes that such 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 Tracking Shares are redeemed, the holder retains no further economic entitlement to the carried interest of the funds included within those respective 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. The third series of Tracking Shares has a redemption clause whereby BUSHI, whose board is controlled by BN, may elect to redeem the Tracking Shares upon the tenth anniversary of issuance. While the third series of Tracking Shares is not currently redeemable, the Company believes that the third 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 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 September 30, 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 September 30, 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.
16
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 condensed consolidated balance sheets, outside of permanent equity and are measured at their redemption amount plus any dividends declared and unpaid at each reporting period.
Additionally, BUSHI, as part of BAM's various share-based compensation arrangements, has issued class A preferred shares to BN. The shares rank junior to the Class B senior preferred and Tracking Shares and are redeemable at the option of the holder and the issuer at a redemption amount of $25 per share plus accrued and unpaid dividends and are non-voting. Due to the currently exercisable holder redemption option, these shares are presented as part of preferred shares redeemable non-controlling interest within the Company’s condensed 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 condensed 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 which generally coincides with when the capital is called. These fees are not tied to performance or ongoing investment management services, are not subject to clawback and are recorded in the 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 condensed consolidated balance sheets.
Incentive fees — Incentive fees include incentive distributions and performance fees and are accounted for as contracts with customers.
17
Incentive fees are incentive payments to reward the Company for meeting or exceeding certain performance thresholds of managed entities.
Incentive distributions paid to us by our permanent capital vehicles are determined by contractual arrangements and represent a portion of distributions paid by the permanent capital vehicles above a predetermined hurdle. They are accrued as revenue on the respective affiliates’ distribution record dates only if the predetermined hurdle has been achieved. They are not subject to clawback.
Performance fees are generated when the unit value of a perpetual affiliate or a limited-life fund exceeds a prescribed high-water mark and are accrued on a quarterly or annual basis. These fees are not subject to clawback.
Incentive 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 condensed 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 condensed 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 condensed 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 condensed 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 condensed consolidated statements of operations on a gross basis as the instruments vest.
18
Certain liability classified share-based awards covered by the Relationship Agreement are required to be revalued at each balance sheet date. As a result, where the revaluation results in an increase in the share-based award liability, BN will reimburse BAM while conversely, where the revaluation results in a decrease in the share-based award liability, BAM will be responsible for reimbursing the difference to BN.
Other revenues 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 EBITDA and a capitalization rate.
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Net Asset Value
Investment funds are typically measured using Net Asset Value (“NAV”) as a practical expedient in determining fair value and are not classified in the fair value hierarchy. 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.
Derivatives
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 financial instruments under ASC 815 are recognized on a gross basis in the condensed 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 condensed consolidated statements of operations.
Financial Assets and Financial Liabilities
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 condensed 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 condensed 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 condensed consolidated statements of operations. The amortization periods for the intangible assets to which the basis difference is allocated are consistent
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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 hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period the Company calculates the accrued carried interest that would be due to the Company pursuant to fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. 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 condensed 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.
Other Assets
We aggregate balances for presentation in the condensed consolidated financial statements based on the nature and function of the accounts. Specifically, we combine similar assets, to provide a clearer representation of financial position and performance during the reporting period. For the purposes of the condensed consolidated financial statements, Intangibles and Goodwill as well as Property Plant and Equipment have been presented as Other Assets.
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 condensed 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. The operating segments are considered the reporting units for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, an impairment loss is recognized to the extent by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit.
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 condensed 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.
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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 condensed 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 condensed 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 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 and BAM have entered into the Transitional Services Agreement (“TSA”) pursuant to which (i) BAM agrees to provide BN, on a transitional basis, certain services to support day-to-day corporate activities (including services related to finance, treasury, accounting, legal and regulatory, marketing, communications, human resources, internal audit, information technology) and (ii) BN provides, on a transitional basis, certain services to BAM. These services are provided, at cost, for a period of three years from December 9, 2022, unless extended by mutual agreement. BAM also provides to BN, as required from time to time and on a cost recovery basis, services of its investment personnel to assist in acquisitions or other transactions undertaken by BN.
See Note 15 for further detail on related party transactions.
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 condensed consolidated financial statements.
On March 21, 2024, the FASB issued ASU 2024-01,1 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. Management is currently assessing the impact of this update.
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In November 2024, the FASB issued ASU 2024-03, which requires public business entities to disclose specific information about existing costs and expenses in the notes to its financial statements. This ASU is intended to provide users with useful information about expenses critical to understanding an entity's performance. This standard requires that a public business entity disclose key expenses including, but not limited to, employee compensation, depreciation and amortization, and associated qualitative disclosures about the nature of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company is currently assessing the impact of this update.
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 US$ millions, unless otherwise noted) | ||||||||
| Share consideration effectively transferred: | ||||||||
| Post-Arrangement number of shares held by previous shareholders of BAM (millions) | ||||||||
| Price of Class A Shares ($ per share) | $ | a | ||||||
| Transaction costs | ||||||||
| Less: BAM’s investment and other relationships in the Asset Management Company | ( | b, c | ||||||
| Total purchase consideration | $ | |||||||
| Fair value of net assets acquired: | ||||||||
| Cash | $ | |||||||
| Due from affiliates | ||||||||
| Intangible assets | d | |||||||
| Accounts payable and other | ( | |||||||
| Due to affiliates | ( | |||||||
| Deferred income tax liabilities | ( | d | ||||||
| Non-controlling interest | ( | |||||||
| $ | ||||||||
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
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computed as the market price of the Class A Shares on the closing date multiplied by the number of Class A Shares owned by BAM’s shareholders prior to the 2025 Arrangement.
b) BAM’s interest in the Asset Management Company
Prior to the 2025 Arrangement, BAM held an approximate 27 % interest in the Asset Management Company. The fair value of this investment has been determined based on the fair value of the Class A Shares outstanding as of February 4, 2025. As part of the 2025 Arrangement, the Asset Management Company acquired BAM’s net assets from an accounting perspective and as a result its re-acquisition of its own shares are eliminated upon effecting the 2025 Arrangement.
c) Other relationships between the Asset Management Company and BAM
Prior to the 2025 Arrangement, BAM and the Asset Management Company had entered into various transactions which led to balances between the parties. As part of the 2025 Arrangement these balances were effectively settled and have been excluded from both purchase consideration and net assets acquired.
d) Intangible assets
4. INVESTMENTS
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Common and preferred shares (a) | $ | $ | |||||||||
| Investments in affiliates (b) | |||||||||||
| Accrued carried interest - mature funds (c) | |||||||||||
| Accrued carried interest - new funds (c) | |||||||||||
| Equity method investments (d) | |||||||||||
| Equity interest in Oaktree | |||||||||||
| Equity interest in Castlelake | |||||||||||
| Equity interest in other affiliates | |||||||||||
| $ | $ | ||||||||||
Where appropriate, the accounting for the Company’s investments incorporates the changes in fair value of those investments.
a.As at September 30, 2025, common and preferred shares were $335 million (2024 – $400 million). Common shares primarily represents investments of $64 million (2024 – $64 million) in Brookfield Renewable Energy L.P. and $26 million (2024 – $25 million) in Brookfield Infrastructure Income Fund Inc. Preferred shares represent investments of $188 million (2024 – $249 million) in Global Education Management Systems (“GEMS Education”) and $56 million (2024 – $50 million) in Cherry Painting Company, Inc. (“Cherry Coatings”). Common and preferred share investments are carried at fair value with changes in fair value recorded in the condensed consolidated statements of operations.
b.As at September 30, 2025, investments in affiliates are primarily comprised of an interest in Brookfield Strategic Real Estate Partners III (“BSREP III”), a fund which BAM manages, of $734 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.
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.
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The change in BAM’s accrued carried interest for mature funds for the three and nine months ended September 30, 2025 and 2024 is as follows:
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Changes in fund fair values | ( | ( | ( | ( | |||||||||||||||||||
| Realized carried interest | ( | ||||||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
The change in BAM’s accrued carried interest for new funds during the three and nine months ended September 30, 2025 and 2024 is as follows:
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Changes in fund fair values | |||||||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
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 $110 million (2024 – $61 million) and $349 million (2024 – $194 million) for the three and nine months ended September 30, 2025, respectively within the share of income from equity method investments in its condensed consolidated statements of operations. The Company’s equity method investments include:
i.An approximate 74 % economic interest in Oaktree of $4.7 billion (2024 – $4.6 billion);
ii.An economic interest in Castlelake of $770 million (2024 – $538 million);
iii.A 49.9 % economic interest in LC Financial Holdings Limited (“LCM”) of $217 million (2024 – $186 million);
iv.A 44 % economic interest in PWMP Ventures LLC (“Primary Wave”) of $259 million (2024 – $147 million);
v.An approximate 11 % economic interest in Pretium of $340 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 three and nine months ended September 30, 2025, an increase of $29 million and a decrease of $11 million, respectively, has been recognized on the value of the investment. For the three and nine months ended September 30, 2025 a decrease of $18 million and an increase of $8 million, respectively, has been recognized on financial assets held by the Company associated with Pretium, which partially offset the change in the value of the investment;
vi.Limited partner interests in funds of $303 million (2024 – $29 million) including Pinegrove Opportunity Partners I LP (“Pinegrove Fund”) (2025 – $196 million; 2024 – $25 million), Brookfield Private Equity Fund L.P. (“BPE”) (2025 – $101 million; 2024 - $nil ) and;
vii.A number of general partner interests in our private funds.
Oaktree
During the nine months ended September 30, 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 accounted for the step-up in basis by allocating the excess of the purchase price over the proportionate share of the book value of the net assets acquired to the identifiable assets and liabilities, as well as goodwill. The amortization of the basis difference will be recognized over their respective useful lives of the identified assets and liabilities. The allocation to goodwill will not be amortized.
Primary Wave
During the nine months ended September 30, 2025, the Company increased its investment in Primary Wave resulting in a step-up in the basis of the investment. The step-up occurred due to the Company’s purchase of an additional equity interest for approximately $84 million, which increased the Company’s ownership percentage in Primary Wave from approximately 35 % to approximately 44 %. We continue to account for our interest in Primary Wave as an equity method investment as we do not control the business.
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Castlelake
During the nine months ended September 30, 2025, BAM participated in Castlelake's acquisition of Concora Super Holdco, L.P. (“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.
Pinegrove
During the nine months ended September 30, 2025, the Company invested $156 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 nine months ended September 30, 2025, the Company agreed to sell part of its interest in GEMS Education ($54 million) and Spring Education Group ($40 million) (collectively “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, for the three and nine months ended September 30, 2025 and 2024, is as follows:
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Expenses | ( | ( | ( | ( | |||||||||||||||||||
| Net income (loss) | ( | ( | |||||||||||||||||||||
| Net income attributable to non-controlling interest | |||||||||||||||||||||||
During the nine months ended September 30, 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 nine months ended September 30, 2025, BAM recognized a gain of $15 million, reported within Other expenses, net within the condensed 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 September 30, 2025 and December 31, 2024, is as follows:
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | Fair value | % of total investments | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Equity securities, at fair value | $ | $ | % | % | |||||||||||||||||||
| Debt, at fair value | % | % | |||||||||||||||||||||
| Total investments, at fair value | $ | $ | % | % | |||||||||||||||||||
As of September 30, 2025 and December 31, 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 three months ended September 30, 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 three months ended September 30, 2025.
As of September 30, 2025, BAM continues to consolidate Brookfield Special Investments II (“BSI II”). The investments in consolidated funds are accounted for at their fair value under ASC 946 Financial Services – Investment Companies. During the nine months ended September 30, 2025, the Company, through BSI II, acquired debt and equity interests in Spring Education As of September 30, 2025, the fair value of the debt and equity interests associated with this acquisition are $242 million and $26 million, respectively.
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Other income, net of consolidated funds in the condensed 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 three and nine months ended September 30, 2025, there were $10 million and $37 million of gains recognized, respectively, from investment activities within Other income, net of consolidated funds on the condensed consolidated statements of operations (2024 – $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 September 30, 2025, the Company had unfunded commitments of $500 million to the consolidated funds.
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Investments | |||||||||||
| Investments of consolidated funds | |||||||||||
| Other assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| Borrowings of consolidated funds | $ | $ | |||||||||
| Other liabilities | |||||||||||
| Total Liabilities | $ | $ | |||||||||
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, including the Company's capital interest and any unrealized carried interest. For the three and nine months ended September 30, 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 condensed 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 SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Investments | $ | $ | |||||||||
| Due from affiliates | |||||||||||
| VIE related assets | |||||||||||
| Maximum exposure to loss | $ | $ | |||||||||
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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 condensed consolidated financial statements: cash, accounts receivable, net, accounts payable, net, due to affiliates and due from affiliates.
Financial Instruments
The following tables summarizes the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as at September 30, 2025 and December 31, 2024:
2025 | |||||||||||||||||||||||||||||
AS AT SEPTEMBER 30, (MILLIONS) | Level I | Level II | Level III | NAV | Total | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash equivalents | $ | $ | — | $ | — | $ | — | $ | |||||||||||||||||||||
| Financial assets | — | — | — | ||||||||||||||||||||||||||
| Investments: | |||||||||||||||||||||||||||||
| Common and preferred shares | — | — | |||||||||||||||||||||||||||
| Investments in affiliates | — | — | — | ||||||||||||||||||||||||||
| Equity method investments under fair value option | — | — | — | ||||||||||||||||||||||||||
| Freestanding derivatives | — | — | — | ||||||||||||||||||||||||||
| Total assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Financial liabilities | $ | — | $ | — | $ | $ | — | $ | |||||||||||||||||||||
| Freestanding derivatives | — | — | — | ||||||||||||||||||||||||||
| Total liabilities at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
AS AT DECEMBER 31, (MILLIONS) | Level I | Level II | Level III | NAV | Total | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Cash equivalents | $ | $ | — | $ | — | $ | — | $ | |||||||||||||||||||||
| Financial assets | — | — | — | ||||||||||||||||||||||||||
| Investments: | |||||||||||||||||||||||||||||
| Common and preferred shares | — | ||||||||||||||||||||||||||||
| Investments in affiliates | — | — | — | ||||||||||||||||||||||||||
| Equity method investments under fair value option | — | — | — | ||||||||||||||||||||||||||
| Investments held for sale | — | — | — | ||||||||||||||||||||||||||
| Total assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Financial liabilities | $ | — | $ | — | $ | $ | — | $ | |||||||||||||||||||||
| Total liabilities at fair value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
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.
28
The following tables summarize the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as at September 30, 2025 and December 31, 2024:
AS AT SEPTEMBER 30, 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) | $ | Option pricing model | Volatility | % | Higher | |||||||||||||||||||||||||||||||||
| Discount rate | % | Lower | ||||||||||||||||||||||||||||||||||||
| Common and preferred shares (c) | Market approach | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Equity method investments under fair value option (d) | Market approach | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Financial liabilities (f) | Option pricing model | Volatility | % | Higher | ||||||||||||||||||||||||||||||||||
| Discount rate | % | 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) | $ | Option pricing model | Volatility | % | Higher | |||||||||||||||||||||||||||||||||
| Discount rate | % | Lower | ||||||||||||||||||||||||||||||||||||
| Common and preferred shares (c) | Market approach | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Equity method investments under fair value option (d) | Market approach | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Investments held for sale (e) | Market approach | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Financial liabilities (f) | Option pricing model | Volatility | % | Higher | ||||||||||||||||||||||||||||||||||
| Discount rate | % | 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 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. The fair value of these instruments is 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 $56 million preferred shares of Cherry Coatings (2024 – $50 million). Common and preferred share investments are carried at fair value with changes in fair value recorded in the condensed consolidated statements of operations.
(d)Equity method investments under fair value option represents an approximate 11 % economic interest in Pretium of $340 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 condensed consolidated statements of operations.
(e)On March 27, 2025, the Company disposed of its interest in Redwood Evergreen Fund LP for approximately $257 million. As a result, for the nine months ended September 30, 2025, BAM recognized a gain of $15 million, reported in Other expenses, net within the condensed consolidated statements of operations.
29
(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 three and nine months ended September 30, 2025, 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 condensed consolidated statements of operations.
AS AT AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Financial assets | Common and preferred shares | Equity method investments under fair value option | Financial liabilities | |||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Fair value changes in net income | ( | ||||||||||||||||||||||
| Purchases and other | ( | ||||||||||||||||||||||
| Transfers | ( | ( | |||||||||||||||||||||
| Payments | ( | ||||||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
AS AT AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Financial assets | Common and preferred shares | Equity method investments under fair value option | Financial liabilities | |||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Fair value changes in net income | ( | ||||||||||||||||||||||
| Purchases and other | ( | ||||||||||||||||||||||
| Transfers | ( | ( | |||||||||||||||||||||
| Payments | ( | ||||||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
AS AT AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Financial assets | Common and preferred shares | Financial liabilities | ||||||||||||||
| Balance, beginning | $ | $ | $ | ||||||||||||||
| Fair value changes in net income | |||||||||||||||||
| Purchases | |||||||||||||||||
| Balance, ending | $ | $ | $ | ||||||||||||||
AS AT AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Financial assets | Common and preferred shares | Financial liabilities | ||||||||||||||
| Balance, beginning | $ | $ | $ | ||||||||||||||
| Fair value changes in net income | |||||||||||||||||
| Purchases | |||||||||||||||||
| Balance, ending | $ | $ | $ | ||||||||||||||
30
Financial Instruments of Consolidated Funds
The following tables summarizes the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as at September 30, 2025 and December 31, 2024:
2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | |||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Investments in equity securities | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | $ | |||||||||||||||||||||||||||||||||||
| Investments in debt | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Total assets at fair value | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | $ | |||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | $ | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||||||||||
| Total liabilities at fair value | $ | $ | — | $ | — | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||||||||||
Level III Measurements of Consolidated Funds
AS AT SEPTEMBER 30, 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 | $ | Market approach | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
| Investments in debt | $ | Discounted cash flows | Discount rate | % | Lower | |||||||||||||||||||||||||||||||||
Level III Changes in Fair Value of Consolidated Funds
AS AT AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Investments in equity securities | Investments in debt | |||||||||
| Balance, beginning | $ | $ | |||||||||
| Fair value changes in net income | |||||||||||
| Deconsolidation of consolidated funds | ( | ||||||||||
| Purchases, net | ( | ||||||||||
| Balance, ending | $ | $ | |||||||||
AS AT AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Investments in equity securities | Investments in debt | |||||||||
| Balance, beginning | $ | $ | |||||||||
| Fair value changes in net income | |||||||||||
| Deconsolidation of consolidated funds | ( | ||||||||||
| Purchases, net | |||||||||||
| Balance, ending | $ | $ | |||||||||
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 three months ended September 30, 2025, BAM increased its revolving credit facility by $300 million to $1.05 billion.
On April 24, 2025, BAM completed a debt offering, issuing $750 million of 10-year senior unsecured notes at a fixed interest rate of 5.795 %. 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.
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On September 9, 2025, BAM completed a debt offering, issuing $750 million of 30-year senior unsecured notes at a fixed interest rate of 6.077 %. All or a portion of the senior unsecured notes may be redeemed at BAM's option in whole or in part, at any time and from time to time, prior to the stated maturity, at the redemption price set forth in the agreement. If a change of control triggering event occurs, subject to certain conditions, BAM will be required to make an offer to repurchase all outstanding senior unsecured notes in cash equal to 101 % of the principal amount plus accrued and unpaid interest up to the date of, but not including, the date of repurchase.
BAM has the following debt obligations outstanding:
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | Weighted Average Remaining Maturity | ||||||||||||||
| Senior unsecured notes | |||||||||||||||||
| $ | $ | ||||||||||||||||
| Deferred financing costs | ( | N/A | |||||||||||||||
| Total corporate borrowings | $ | $ | |||||||||||||||
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 SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | Facility Capacity | Weighted Average Interest Rate | Weighted Average Remaining Maturity | Commitment fee rate | |||||||||||||||||||||||||||||
| Consolidated funds | |||||||||||||||||||||||||||||||||||
| Revolving credit facilities | $ | $ | $ | % | |||||||||||||||||||||||||||||||
| Total borrowings of consolidated funds | $ | $ | |||||||||||||||||||||||||||||||||
BAM was in compliance with all financial covenants associated with its corporate borrowings as of September 30, 2025 and December 31, 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 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 financial instruments. The notional amount represents the absolute value of all outstanding derivative contracts.
| AS AT SEPTEMBER 30, 2025 (MILLIONS) | Assets | Liabilities | |||||||||||||||||||||
| Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
| Freestanding derivatives | |||||||||||||||||||||||
| Foreign-currency forward contracts | $ | $ | $ | $ | |||||||||||||||||||
| Interest rate swap contracts | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
32
Nominal realized and unrealized gains and losses arising from freestanding derivatives were recorded in the consolidated statements of operations for the nine months period ended September 30, 2025 and 2024, respectively.
There were no derivatives outstanding that were designated as hedging instruments for accounting purposes as of September 30, 2025 and December 31, 2024.
Derivatives are recorded as gross in the condensed consolidated balance sheets.
9. REVENUE
The Company offers investment products on a number of strategies, specifically renewable power and transition, infrastructure, real estate, private equity, and credit, operating in more than 30 countries. The majority of base management and advisory fees are earned in the United States of America.
The following table sets out revenue disaggregated by investment strategy and geography.
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Renewable power and transition | Infrastructure | Real estate | Private equity | Credit | Total | ||||||||||||||||||||||||||||||||
| Base management and advisory fees | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||
| Incentive fees | ||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Renewable power and transition | Infrastructure | Real estate | Private equity | Credit | Total | ||||||||||||||||||||||||||||||||
| Base management and advisory fees | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||
| Incentive fees | ||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
33
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Renewable power and transition | Infrastructure | Real estate | Private equity | Credit | Total | ||||||||||||||||||||||||||||||||
| Base management and advisory fees | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||
| Incentive fees | ||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Renewable power and transition | Infrastructure | Real estate | Private equity | Credit | Total | ||||||||||||||||||||||||||||||||
| Base management and advisory fees | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||
| Incentive fees | ||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
10. INCOME TAXES
The Company’s statutory income tax rate has remained consistent at 27
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 September 30, 2025, certain of the Company's U.S and non-U.S. income tax returns for 2018 through 2024 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 three and nine months ended September 30, 2025 and 2024 was calculated as follows:
FOR THE THREE MONTHS ENDED SEPTEMBER 30, (MILLIONS) | 2025 | 2024 | |||||||||||||||||||||
| Class A Shares | Class B Shares | Class A Shares | Class B Shares | ||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Denominator | |||||||||||||||||||||||
| Weighted average of common stock outstanding - basic | |||||||||||||||||||||||
| Dilutive effect of conversion of options and escrowed shares using treasury stock method | |||||||||||||||||||||||
| Weighted average of common stock outstanding - diluted | |||||||||||||||||||||||
| Net Income per Share | |||||||||||||||||||||||
| Earnings per share - basic | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share - diluted | $ | $ | $ | $ | |||||||||||||||||||
34
FOR THE NINE MONTHS ENDED SEPTEMBER 30, (MILLIONS) | 2025 | 2024 | |||||||||||||||||||||
| Class A Shares | Class B Shares | Class A Shares | Class B Shares | ||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Denominator | |||||||||||||||||||||||
| Weighted average of common stock outstanding - basic | |||||||||||||||||||||||
| Dilutive effect of conversion of options and escrowed shares using treasury stock method | |||||||||||||||||||||||
| Weighted average of common stock outstanding - diluted | |||||||||||||||||||||||
| Net Income per Share | |||||||||||||||||||||||
| Earnings per share - basic | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share - diluted | $ | $ | $ | $ | |||||||||||||||||||
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 PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management stock options of BAM | |||||||||||||||||||||||
| Escrow shares of BAM | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
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 PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Expense arising from equity-settled share-based payment transactions | |||||||||||||||||||||||
| Management Share Option Plan | $ | $ | $ | $ | |||||||||||||||||||
| Escrowed Stock Plan | |||||||||||||||||||||||
| Restricted Stock Plan | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
| Expense arising from cash-settled share-based payment transactions | |||||||||||||||||||||||
| Deferred Share Unit Plan | $ | $ | $ | $ | |||||||||||||||||||
| Restricted Share Unit Plan | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
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 of BN or BAM. The exercise price is equal to the market price at the grant date.
35
During the three months ended September 30, 2025, no stock options were issued. During the nine months ended September 30, 2025, BAM granted 4.8 million (2024 – 6.1 million) share options at a weighted average exercise price of $59.62 (2024 – $40.07 ). The compensation expense was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term (2024 – 7.5 ), 29.9 % volatility (2024 – 29.2 %), a weighted average expected annual dividend yield of 3.7 % (2024 – 4.8 %), a risk-free rate of 4.4 % (2024 – 4.2 %) and a liquidity discount of 25 % (2024 - 25 %), with a fair value of $11.18 per unit (2024 – $6.12 ). The total fair value of the share options granted was $53.4 million (2024 – $37.5 million).
For the three and nine months ended September 30, 2025, the total expense incurred with respect to MSOP totaled $11 million and $33 million, respectively (2024 – $6 million and $18 million).
Escrowed Stock Plan
The Escrowed Stock (“ES”) shares generally vest over five years and must be held to the fifth anniversary of the grant date. At a date no more than ten years from the grant date, all outstanding ES shares will be exchanged for Class A shares issued by BN or BAM based on the market value of the respective Class A Shares at the time of the exchange. The number of Class A shares issued on exchange will be less than the Class A shares purchased under the ES Plan resulting in a net reduction in the number of Class A Shares issued by BAM.
During the three months ended September 30, 2025, BAM did not grant any escrowed shares. During the nine months ended September 30, 2025, BAM granted 3.5 million (2024 – 4.8 million) escrowed shares at a weighted average exercise price of $59.62 (2024 – $40.07 ). The compensation expense was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term (2024 – 7.5 years), 29.9 % volatility (2024 – 29.2 %), a weighted average expected annual dividend yield of 3.7 % (2024 – 4.8 %), a risk-free rate of 4.4 % (2024 – 4.2 %) and a liquidity discount of 25 %, with a fair value of $11.18 per unit (2024 – $6.12 ). The total fair value of the escrowed shares granted was $39.6 million (2024 – $29.3 million).
For the three and nine months ended September 30, 2025, the total expense incurred with respect to the ES Plan totaled $16 million and $45 million, respectively (2024 – $6 million and $18 million).
Restricted Stock Plan
The Restricted Stock Plan awards executives with Class A Shares of BN and BAM purchased on the open market (“Restricted Shares”). 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 three and nine months ended September 30, 2025 was $14 million and $43 million, respectively (2024 – $14 million and $38 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 of BN and BAM based on the market value of the Class A Shares at the time of the dividend. Participants are not allowed to convert 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 of BN and BAM at the time the conversion takes place. The fair value of the vested DSUs as at September 30, 2025 was $749 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 three and nine months ended September 30, 2025, employee compensation expense totaled $68 million and $89 million (2024 – $31 million and $29 million).
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 of BN or BAM at the time the conversion takes place and the market price on the date the RSUs are granted.
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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 September 30, 2025 was $nil (December 31, 2024 – $21 million) and the fair value of outstanding RSUs was $nil (December 31, 2024 – $nil ).
For the three and nine months ended September 30, 2025, expense associated with the RSU's totaled $nil and $nil (2024 – $nil and $1 million).
13. PREFERRED SHARES REDEEMABLE NON-CONTROLLING INTEREST
As at September 30, 2025, subsidiaries of the Company have issued and outstanding certain classes of preferred shares which are outlined below:
| 2025 | 2024 | ||||||||||||||||||||||
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS, EXCEPT SHARE AMOUNTS) | Number of Shares | Value | Number of Shares | Value | |||||||||||||||||||
| BUSHI Preferred Shares | |||||||||||||||||||||||
| BUSHI Tracking Shares | $ | $ | |||||||||||||||||||||
| Class B senior preferred | |||||||||||||||||||||||
| Class B preferred | |||||||||||||||||||||||
| Class A preferred | |||||||||||||||||||||||
| BMHL Tracking Shares | |||||||||||||||||||||||
| $ | $ | ||||||||||||||||||||||
The movement in the carrying value of the preferred shares redeemable non-controlling interest is as follows:
AS AT AND FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Issuances | |||||||||||||||||||||||
| Distributions | ( | ( | |||||||||||||||||||||
| Deemed settlement of Class A preferred shares as a result of 2025 Arrangement | ( | ||||||||||||||||||||||
| Changes in redemption value included in net income attributable to preferred shares non-controlling interest | ( | ( | ( | ( | |||||||||||||||||||
| Other | ( | ( | ( | ( | |||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
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.
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.
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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 nine months ended September 30, 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.
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 PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Contributions (Repurchases) | ( | ||||||||||||||||||||||
| 2025 Arrangement | |||||||||||||||||||||||
Distributions(a) | ( | ( | ( | ||||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
(a) Distributions include an $ | ||
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 PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | $ | $ | $ | |||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Contributions | |||||||||||||||||||||||
| Deconsolidation of consolidated funds | ( | ( | |||||||||||||||||||||
| Balance, ending | $ | $ | $ | $ | |||||||||||||||||||
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15. 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 three and nine months ended September 30, 2025, the Company recorded revenues of $1.2 billion (2024 – $1.1 billion) and $3.4 billion (2024 – $2.8 billion) respectively, with affiliates and related parties on its condensed 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 condensed consolidated statements of operations on a gross basis as the instruments vest or are incurred. During the three and nine months ended September 30, 2025, BAM recognized recharges of $69 million (2024 – $85 million) and $233 million (2024 – $132 million) respectively, in the condensed consolidated statements of operations in other revenues under this arrangement.
Due from affiliates and due to affiliates consisted of the following:
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Due from affiliates | |||||||||||
| Operating and loan receivables | $ | $ | |||||||||
| Receivables from affiliates related to share and cash-based compensation | |||||||||||
| $ | $ | ||||||||||
| Due to affiliates | |||||||||||
| Operating and loan payables | $ | $ | |||||||||
| Payables to affiliates related to share and cash-based compensation | |||||||||||
| $ | $ | ||||||||||
Due from affiliates
Due from affiliates of $3.4 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.
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 bps or a fixed interest rate of 0.9 % to 4.2 %. Maturities on loans to related parties range from 2025 to 2057. The loans were generally issued to finance acquisitions and fund commitments.
The remaining $1.7 billion (2024 - $0.7 billion) represents receivables from affiliates related to share and cash-based compensation.
Due to affiliates
Due to affiliates of $899 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 three and nine months ended September 30, 2025 the Company recognized tax attributes purchased from a related party of $37 million (2024 – $38 million) and $106 million (2024 – $114 million), respectively.
Other related party transactions
During the nine months ended September 30, 2025 BAM settled the outstanding tracking option. As a result, as at September 30, 2025, the carrying amount of these options is $nil (December 31, 2024 – $75 million).
In the normal course of business, BAM may periodically assign or transfer balances to related parties. During the nine months ended September 30, 2025, BAM assigned a loan of $117 million to a related party at market terms.
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16. 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 September 30, 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. As at September 30, 2025, the Company had $4.2 billion of such commitments outstanding (December 31, 2024 – $3.3 billion).
The Company established a $750 million five-year revolving credit facility on August 29, 2024 through bilateral agreements with a group of lenders. 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 three months ended September 30, 2025, BAM increased its revolving credit facility by $300 million to $1.05 billion. As at September 30, 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 September 30, 2025, 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 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 September 30, 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 September 30, 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 September 30, 2025 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 period in which the change occurred.
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17. 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 Chief Operating Decision Maker (“CODM”). The CODM uses internal management reports to assess performance and allocate resources, and the information provided herein is consistent with the Company's internal reporting structure and information reviewed by the CODM on a regular basis. The Company's operating segments are comprised of:
•Infrastructure: Primarily includes managing our flagship infrastructure fund series focused on investing in high-quality infrastructure assets on a value basis. In addition, we manage permanent capital vehicles and perpetual strategies which include Brookfield Infrastructure Partners L.P. (“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 Brookfield Renewable Partners L.P. (“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 Brookfield Business Partners L.P. (“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 Brookfield Property Group (“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 our partner managers. See below for our reconciliation of total revenues as presented on the condensed consolidated statements of operations to Segment Revenues.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Total Revenues | $ | $ | $ | $ | |||||||||||||||||||
Add: Fee revenues of equity method investments(a) | |||||||||||||||||||||||
| Less: Incentive distributions | ( | ( | ( | ( | |||||||||||||||||||
Less: Carried interest allocations(b) | ( | ( | ( | ||||||||||||||||||||
| Less: Interest and dividend revenue | ( | ( | ( | ( | |||||||||||||||||||
| Less: Interest and dividend revenue of consolidated funds | ( | ( | |||||||||||||||||||||
Less: Other revenues(c) | ( | ( | ( | ( | |||||||||||||||||||
Less: Costs recovered from affiliates(d) | ( | ( | ( | ( | |||||||||||||||||||
| Total Segment Revenues | $ | $ | $ | $ | |||||||||||||||||||
| (a) This adjustment adds fee revenues of equity method investments. | ||
| (b) This adjustment removes the impact of both unrealized and realized carried interest allocations. | ||
| (c) This adjustment removes other revenues earned that are non-cash in nature, which include certain cost recoveries and reimbursements from affiliates. | ||
| (d) This adjustment removes the impact of compensation costs that will be borne by affiliates. | ||
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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 condensed consolidated statements of operations to Segment Expenses.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Total Expenses | $ | $ | $ | $ | |||||||||||||||||||
Add: Expenses of equity method investments(a) | |||||||||||||||||||||||
Less: Costs recovered from affiliates(b) | ( | ( | ( | ( | |||||||||||||||||||
Less: Total carried interest allocation compensation(c) | ( | ( | ( | ||||||||||||||||||||
| Less: Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Less: Other costs(d) | ( | ( | ( | ( | |||||||||||||||||||
| Less: Interest expense of consolidated funds | ( | ( | |||||||||||||||||||||
| Total Segment Expenses | $ | $ | $ | $ | |||||||||||||||||||
| (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:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Total segment compensation and benefits | $ | $ | $ | $ | |||||||||||||||||||
| Total segment facilities, technology and professional fees | |||||||||||||||||||||||
| Total segment travel and other operating expenses | |||||||||||||||||||||||
| Total Segment Expenses | $ | $ | $ | $ | |||||||||||||||||||
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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 three and nine months ended September 30, 2025 and 2024:
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Segment Earnings | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Segment Earnings | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Segment Earnings | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Segment Earnings | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| (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. | ||
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See below for our reconciliation of income before taxes as presented on the condensed consolidated statements of operations to Segment Earnings.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Income before taxes | $ | $ | $ | $ | |||||||||||||||||||
Depreciation and amortization(a) | |||||||||||||||||||||||
Carried interest allocations, net of carried interest allocation compensation(b) | ( | ( | |||||||||||||||||||||
Other income and expenses, net of other costs and non-asset management related items(c) | |||||||||||||||||||||||
| Other income, net of consolidated funds | ( | ( | |||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Interest expense of consolidated funds | |||||||||||||||||||||||
| Interest and dividend revenue | ( | ( | ( | ( | |||||||||||||||||||
| Interest and dividend revenue of consolidated funds | ( | ( | |||||||||||||||||||||
Other revenues(d) | ( | ( | ( | ( | |||||||||||||||||||
Share of income from equity method investments(e) | ( | ( | ( | ( | |||||||||||||||||||
Segment Earnings from equity method investments(e) | |||||||||||||||||||||||
| Incentive fees | ( | ( | ( | ( | |||||||||||||||||||
| Total Segment Earnings | $ | $ | $ | $ | |||||||||||||||||||
| (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 restructuring 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. | ||
18. SUBSEQUENT EVENTS
Quarterly Dividend
On November 6, 2025, the board of directors of BAM declared a quarterly dividend of $0.4375 per share, payable on December 31, 2025 to shareholders of record as at the close of business on November 28, 2025.
Angel Oak
On October 1, 2025, BAM acquired a 51.29 % economic stake in Angel Oak, a leading asset manager specializing in innovative mortgage and consumer products for total consideration of approximately $149 million. Angel Oak will be accounted for as an equity method investment in accordance with U.S. GAAP.
Oaktree
On October 13, 2025, BAM and BN announced a proposed transaction to acquire the remaining common 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.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with BAM's condensed consolidated financial statements and the related notes included within this Quarterly Report on Form 10-Q. In this report, references to "BAM", the "Company", "we", "us", or "our" refer to Brookfield Asset Management Ltd.
Business Overview
We are a leading global alternative asset manager, headquartered in New York, NY, with over $1 trillion of Assets Under Management across infrastructure, renewable power and transition, private equity, real estate, and credit. Our objective is to generate attractive, long-term risk-adjusted returns for the benefit of our clients and shareholders.
We manage a range of public and private investment products and services for institutional and individual investors. We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them. Our access to large-scale capital enables us to make investments in sizeable, premier assets and businesses across geographies and asset classes that we believe few others can.
To do this, we leverage our team of over 2,500 investment and asset management professionals, our global reach, deep operating expertise, and access to large-scale capital to identify attractive investment opportunities and invest on a proprietary basis. Our investment approach and strong track record have been the foundation and driver of our growth.
We provide a highly diversified suite of alternative investment strategies to our clients and are constantly seeking to innovate new strategies to meet their needs. We have over 55 unique active strategies that span a wide range of risk-adjusted returns, including opportunistic, value-add, core, super-core, and credit. We evaluate the performance of these product offerings and our investment strategies using a number of non-GAAP measures. BAM utilizes Fee-Bearing Capital, Fee Revenues, Fee-Related Earnings and Distributable Earnings to assess the performance of our asset management business.
We are in a fortunate position to be trusted with our clients’ capital and our objective is to meet their financial goals and provide for a better financial future while providing market leading experience. Our team of over 300 client service professionals across 19 global offices are dedicated to ensuring that the business exceeds our clients’ service expectations.
We have over 2,400 clients, with some of our clients being among the world’s largest institutional investors, including sovereign wealth funds, pension plans, endowments, foundations, financial institutions, and insurance companies.
Our guiding principle is to operate our business and conduct our relationships with the highest level of integrity. Our emphasis on a culture of collaboration allows us to attract and retain top talent.
The Class A Shares are co-listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbol “BAM”.
Development of the Business
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 ("Asset Management Company") to BAM in exchange for newly issued class A shares of BAM on a one-for-one basis (the "2025 Arrangement"). See discussion of the accounting for the 2025 Arrangement in Note 3 of the condensed consolidated financial statements of BAM included in Part I.
The financial statements of BAM for the periods prior to 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.
After giving effect to the 2025 Arrangement, BAM owns 100% of Brookfield Asset Management ULC, and BN owned approximately 73% of the Class A Shares of BAM. As at September 30, 2025, BN owns approximately 69% of the Class A shares of BAM.
Business Environment
Our asset management business is affected by the financial market and economic conditions in the various countries and regions in which we operate. Price fluctuations within equity, credit, interest rates and foreign exchange markets can be volatile and mixed across the various geographies, which can have a substantial impact on the performance of our business in various ways.
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In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 3.9% for the quarter ended September 30, 2025, compared to an increase of 3.8% for the quarter ended June 30, 2025. U.S. inflation increased over the third quarter of 2025 with estimates reporting that the annual U.S. inflation rate increased to 3.0% as of September 30, 2025, compared to 2.7% as of June 30, 2025. The U.S. unemployment rate saw a modest increase to 4.3% in August 2025 from 4.2% in June 2025, according to data from the U.S. Bureau of Labor Statistics. As of October 2025, the International Monetary Fund estimated that the U.S. economy will slow to 2.0% in 2025 and 2.1% in 2026 from 2.8% in 2024, on account of greater policy uncertainty, trade tensions, and fiscal vulnerabilities.
The U.S. Federal Reserve trimmed the Federal Funds target range from 4.25%-4.50% down to 4.00%-4.25% in September, after an extended pause. The U.S. Federal Reserve highlighted downside risks to the labor market and reaffirmed that inflation continued to stay elevated. The U.S. Federal Reserve’s latest economic projections reveal expectations of better growth and higher core inflation by the end of 2025, compared to June 2025. During the quarter ended September 30, 2025, the 10-year government bond yields fell 0.07% in the United States.
Outside the U.S., GDP growth in the Eurozone is estimated to have increased by 1.1% for the quarter ended September 30, 2025, while inflation is expected to move to 2.1% in 2025 and drop to 1.7% in 2026, below the European Central Bank’s 2% target. The short-term benchmark interest rate set by the European Central Bank was 2.15% as of September 30, 2025, unchanged from June 30, 2025. In China, real GDP is estimated to have grown by 4.8% for the quarter ended September 30, 2025, down from 5.2% in the second quarter, as the economy remains subject to various headwinds, including trade policy uncertainties and concerns about its property sector. The 1-year prime rate set by the People's Bank of China was 3.00% as of September 30, 2025, unchanged from June 30, 2025.
For the quarter ended September 30, 2025, the S&P 500 was up by 8.2%, the MSCI Europe Index was up 3.2%, the MSCI Asia Index was up 8.5%, and the MSCI World Index increased by 7.0%. During the quarter ended September 30, 2025, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) tightened by 10 basis points, and the high yield credit spreads were down by 16 basis points.
Our business remains well-positioned within the alternative asset management landscape by leveraging a strategic and agile approach to investment opportunities. As investors seek diversification and innovative solutions, we are equipped to navigate market complexities and evolving government policies, by delivering value through disciplined strategies. Our ability to adapt to shifting economic conditions and capitalize on emerging trends ensures we remain a trusted partner in achieving long-term financial outcomes.
Products and Principal Strategies
Our products broadly fall into one of three categories: (i) long-term private funds, (ii) permanent capital vehicles and perpetual strategies, and (iii) liquid strategies. These are invested across five principal strategies: (i) infrastructure, (ii) renewable power and transition, (iii) real estate, (iv) private equity, and (v) credit.
Infrastructure
Overview
•We are one of the world’s largest investment managers in infrastructure, with $242 billion of AUM and $101 billion of Fee-Bearing Capital as of September 30, 2025.
•We focus on acquiring high-quality real assets and operating businesses on behalf of our clients that deliver essential goods and services, diversified across the utilities, transport, midstream and data infrastructure sectors. We partner closely with management teams to enable long-term success through operational and other improvements.
•We have approximately 220 investment and asset management professionals globally that are focused on our infrastructure strategy, supported by approximately 61,000 operating employees in the infrastructure operating businesses that we manage.
Our Products
Long-term Private Funds
•Brookfield Infrastructure Fund (“BIF”) is our flagship infrastructure fund series. In this product offering, we invest on behalf of our clients in high-quality infrastructure assets on a value basis and seek to add value through the investment life cycle by utilizing our operations-oriented approach.
•Brookfield AI Infrastructure Fund (“BAIIF”), our strategy focused on the development of AI infrastructure, is designed to meet the growing demand from hyperscalers, enterprises, and governments for scalable, integrated solutions.
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•Brookfield Infrastructure Structured Solutions Fund (“BISS”) seeks to invest structured equity and non-control common equity in the infrastructure mid-market. The fund is focused on deploying our deep capabilities to partner with sponsors, developers, and corporates to access attractive development opportunities.
Permanent Capital Vehicles and Perpetual Strategies
•We manage Brookfield Infrastructure Partners L.P. (“BIP”), one of the largest, pure-play, publicly traded global infrastructure platforms, which is listed on the NYSE and TSX and had a market capitalization of $26.7 billion as of September 30, 2025.
•We manage Brookfield Super-Core Infrastructure Partners (“BSIP”), which is our perpetual infrastructure private fund strategy. In this product offering, we invest on behalf of our clients in core infrastructure assets in developed markets, with a focus on yield, diversification, and inflation-protection.
•We also manage Brookfield Infrastructure Income Fund (“BII”), a semi-liquid infrastructure strategy, offering private wealth investors access to our best-in-class infrastructure platform.
The infrastructure investments that we manage provide a diversified exposure for our clients to scarce, high-quality businesses that benefit from significant barriers to entry and deliver essential goods and services to generate resilient and inflation-protected cash flow streams. Through the various products outlined, we have invested in:
•Regulated or contracted businesses that earn a return on an asset base, including electricity and gas connections, natural gas pipelines and electricity transmission lines;
•Systems involved in the movement of freight, commodities and passengers, including rail operations, toll roads, terminal and export facilities;
•Assets that handle the movement and storage of commodities from a source of supply to a demand center, including transmission pipelines, natural gas process plants and natural gas storage; and
•Businesses that provide essential services and critical infrastructure to transmit and store data globally, including telecom towers and active rooftop sites, fiber optic cable and data centers.
Renewable Power and Transition
Overview
•We are one of the largest investors in renewable power and transition investments, with $137 billion of AUM and $69 billion of Fee-Bearing Capital as of September 30, 2025.
•We believe that the growing global demand for low-cost, low-carbon energy, especially amongst corporate off-takers, will lead to continued growth opportunities for us in the future. The investment environment for renewable power and transition remains favorable and we expect to continue to advance our substantial pipeline of renewable power and transition opportunities on behalf of our clients and managed assets.
•We have approximately 145 investment and asset management professionals globally that are focused on our renewable power and transition strategy, supported by approximately 17,800 operating employees in the renewable power and transition operating businesses that we manage. Our extensive experience and knowledge in this industry enable us to be a leader in all major technologies with deep operating and development capabilities.
Our Products
Long-term Private Funds
•Brookfield Global Transition Fund (“BGTF”) is our flagship transition fund series which is focused on investments aimed at accelerating the global transition to a net-zero carbon economy. The mandate of this product is to assist utility, energy and industrial businesses to reduce carbon dioxide emissions, expand low-carbon and renewable energy production and advance sustainable solutions.
•Our recently launched Catalytic Transition Fund (“CTF”) focuses on directing capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. CTF will help drive clean energy investment in emerging markets.
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Permanent Capital Vehicles and Perpetual Strategies
•We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $18.5 billion as of September 30, 2025.
Across our renewable power and transition products, we have invested on behalf of our clients in:
•Hydroelectric operations, through river systems and facilities that provide electricity and have grid stabilizing capabilities;
•Utility-scale solar operations that harness energy from the sun to generate electricity;
•Distributed energy and storage which provides small-scale generation that can be locally installed, pump storage facilities, and battery energy storage systems;
•Wind operations that use turbines to create electricity; and
•Sustainable solutions including nuclear services, renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, power transformation, and sustainable aviation fuel.
Private Equity
Overview
•We have one of the best long-term track records for investing in private equity with $151 billion of AUM and $46 billion of Fee-Bearing Capital as of September 30, 2025.
•We focus on high-quality businesses that provide essential products and services, diversified across business services and industrials sectors. We partner closely with management teams to enable long-term success through operational and other improvements.
•We have approximately 270 investment and asset management professionals globally that are focused on our private equity strategy, supported by approximately 142,900 operating employees in the businesses that we manage.
Our Products
Long-term Private Funds
•Our global opportunistic flagship fund series, Brookfield Capital Partners (“BCP”), is our leading private equity offering. The series of funds focuses on cash-flowing industrial and essential service businesses. We seek investments that benefit from high barriers to entry and enhance their cash flow capabilities by improving strategy and execution.
•Our special investments strategy, Brookfield Special Investments (“BSI”), is focused on structured, large-scale, non-control investments. This product capitalizes on transactions that do not fit our traditional control-oriented flagship private equity fund series. Situations may include recapitalization or strategic growth capital where we expect to generate equity-like returns while ensuring downside protection through contracted returns.
•Our thematic private equity strategy, Brookfield Financial Infrastructure Partners, focuses on investments in asset-light financial infrastructure companies that underpin the global financial system.
•Our regional private equity strategy, Brookfield Middle East Partners, is focused on opportunistically investing across sectors and countries in the Middle East by drawing on Brookfield’s global footprint and value-add as a strategic partner.
•Our venture capital strategy, Pinegrove Ventures, manages investments in the innovation economy and is uniquely positioned to access highly sought-after opportunities in high quality venture-backed companies and funds.
Permanent Capital Vehicles and Perpetual Strategies
•We manage Brookfield Business Partners L.P. (“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. BBU is listed on the NYSE and TSX and had a market capitalization of $6.1 billion as at September 30, 2025.
•We also manage Brookfield Private Equity ("BPE"), which is an evergreen semi-liquid fund offering individual investors streamlined, diversified access to Brookfield’s global private equity platform through a single vehicle.
Our private equity vehicles acquire high-quality operations globally. The broad investment mandate provides us with the flexibility to invest on behalf of our clients across multiple industries through many forms. Through the various products outlined above, we have invested on behalf of our clients in:
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•Leading service providers to large-scale infrastructure assets, including a leading provider of work access services, modular building leasing services, and a leading global provider of lottery services and technology solutions;
•Operationally intense industrial businesses that benefit from a strong competitive position, including a leading global provider of advanced automotive battery technology, a leading global aviation services and leasing business, and a leading manufacturer of engineered components for industrial trailers and other towable equipment providers, among others; and
•Essential services providers, including the largest private sector residential mortgage insurer in Canada, a leading value-add distributor of telecom equipment, a leading provider of software and technology services to automotive dealers, one of the largest private school operators globally, and a leading American private education company.
Real Estate
Overview
•We are one of the world’s largest investment managers in real estate, with over $272 billion of AUM and $102 billion of Fee-Bearing Capital as of September 30, 2025.
•We have invested, on behalf of clients, in iconic properties in the world’s most dynamic markets with the goal of generating stable and growing distributions for our investors while protecting them against downside risk.
•We have approximately 650 investment and asset management professionals that are focused on generating superior returns across our real estate strategies, supported by approximately 24,500 operating employees in the real estate operating businesses that we manage.
Our Products
Long-term Private Funds
•Our opportunistic real estate flagship fund series is Brookfield Strategic Real Estate Partners (“BSREP”). Through this product, we invest globally across various sectors and geographies on behalf of our clients in high-quality real estate with a focus on large, complex, distressed assets, turnarounds, and recapitalizations.
•We also manage a real estate secondaries strategy, Brookfield Real Estate Secondaries, with a focus on providing liquidity solutions for other real estate general partners.
Permanent Capital Vehicles and Perpetual Strategies
•We manage $18 billion of Fee-Bearing Capital in Brookfield Property Group (“BPG”) as of September 30, 2025, which we invest, on behalf of BN, directly in real estate assets. BPG owns, operates, and develops iconic properties in the world’s most dynamic markets with a global portfolio of office, retail, multifamily, logistics, hospitality, land and housing, triple net lease, manufactured housing, and student housing assets on five continents.
•We also manage capital in our perpetual private fund real estate strategy, Brookfield Premier Real Estate Partners (“BPREP”). This is a core plus strategy that invests in high-quality, stabilized real assets located primarily in the U.S. with a focus on office, retail, multifamily and logistics real estate assets. We also have two regional BPREP strategies that are dedicated specifically to investments in Australia and Europe.
•We also manage a non-traded REIT, Brookfield Real Estate Income Trust (“Brookfield REIT”), which is a semi-liquid strategy catering specifically to the private wealth channel. This product invests in high quality income-producing opportunities globally through equity or real estate-related debt.
Through the various products outlined, we have invested in multiple asset classes including:
•Office properties in key gateway cities in the U.S., Canada, the U.K., Germany, Australia, Brazil and India;
•High-quality retail destinations that are central gathering places for the communities they serve, combining shopping, dining, entertainment and other activities;
•Full-service hotels and leisure-style hospitality assets in high-barrier markets across North America, the U.K. and Australia; and
•High-quality assets with operational upside across multifamily, alternative living, life sciences and logistics sectors globally.
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Credit
Overview
•We are one of the world’s largest and most experienced credit managers globally, with $349 billion of AUM and $263 billion of Fee-Bearing Capital as of September 30, 2025.
•We seek to provide flexible, specialized capital solutions to borrowers and deliver attractive risk-adjusted returns to our clients across a range of debt strategies, focusing on private credit and direct lending in areas in which we possess differentiated investment and operational capabilities.
•We have approximately 230 investment and asset management professionals globally that are focused on our credit strategies, investing across a broad spectrum of investments, leveraging the capabilities we have organically built in collaboration with the capabilities of leading credit managers with whom we partner. Our partners include:
◦Oaktree, a leader among global investment managers specializing in alternative investments, emphasizing an opportunistic, value-oriented and risk-controlled approach to investing in credit, equity and real estate. For further discussion on our proposed transaction with Oaktree, refer to Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Recent Developments”, in this report;
◦Castlelake L.P., a global alternative investment manager specializing in asset-based private credit including aviation and specialty finance;
◦Angel Oak, a leading asset manager specializing in innovative mortgage and consumer products. For further discussion on our recent transaction with Angel Oak, refer to Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Recent Developments”, in this report;
◦LC Financial Holdings, a leading technology-driven credit specialist with a comprehensive portfolio of businesses in the financial sector;
◦Primary Wave, a leading independent publisher of iconic and legendary music; and
◦17Capital LLP (“17Capital”), the go-to global source of NAV finance for investors in private equity.
Our Products
•Our flagship opportunistic credit strategy, Global Opportunities, aims to generate consistently strong risk adjusted returns by investing in a diverse set of opportunities including distressed liquid credit, rescue financings, debtor-in-possession loans, bankruptcy exits, loan portfolios, platform investments, and opportunistic capital solutions in key economic regions across the globe.
•Brookfield Infrastructure Debt is our infrastructure debt fund series, which invests on behalf of our clients in mezzanine debt investments in high-quality, infrastructure assets.
•Brookfield Real Estate Finance Fund is our commercial real estate debt fund series, which targets investments in transactions that are senior to traditional equity and subordinate to first mortgages or investment-grade corporate debt.
•In addition to several other credit strategies, we also provide tailored separately managed accounts for our clients, with private credit investment programs designed for each of our clients’ specific risk, return, and prudential requirements. Each client’s private credit investment portfolio can be customized across multiple dimensions, including asset class, credit quality, duration, sector, and geography, with proprietary access to our broad-based private credit origination capabilities.
The credit investments managed by BAM and our partner managers enable our clients to have exposure to a broad range of credit strategies, including:
•Private Credit strategies focusing on underwriting and managing directly sourced credit investments on behalf of our clients, across various sectors, including infrastructure, renewable energy, real estate, corporate credit, royalties, aviation, equipment finance, as well as consumer and SME credit;
•Opportunistic Credit strategies that are designed to capitalize on market dislocations and inefficiencies to generate high returns. These strategies typically involve investing in distressed or special situations where credit is undervalued or overlooked by traditional investors;
•Structured Credit strategies investing across structured and asset-backed finance opportunities in real estate, fund finance, aviation, consumer and corporate credit and more; and
•Liquid Credit strategies investing across a broad spectrum of public debt securities, from investment-grade to high-yield.
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Review of Financial Results
Income Statement Analysis
Condensed Consolidated Statement of Operations
The following table summarizes the condensed consolidated statements of operations for BAM for the three and nine months ended September 30, 2025 and 2024:
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Base management and advisory fees | $ | 859 | $ | 768 | $ | 2,511 | $ | 2,163 | |||||||||||||||
| Incentive fees | 115 | 105 | 348 | 317 | |||||||||||||||||||
| Investment income | |||||||||||||||||||||||
| Carried interest allocations | |||||||||||||||||||||||
| Realized | — | — | — | 11 | |||||||||||||||||||
| Unrealized | 112 | 55 | 51 | (24) | |||||||||||||||||||
| Total investment income | 112 | 55 | 51 | (13) | |||||||||||||||||||
| Interest and dividend revenue | 24 | 34 | 71 | 117 | |||||||||||||||||||
| Interest and dividend revenue of consolidated funds | 7 | — | 22 | — | |||||||||||||||||||
| Other revenues | 135 | 155 | 420 | 333 | |||||||||||||||||||
| Total revenues | 1,252 | 1,117 | 3,423 | 2,917 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Compensation, operating, and general and administrative expenses | |||||||||||||||||||||||
| Compensation and benefits | (379) | (326) | (1,042) | (878) | |||||||||||||||||||
| Other operating expenses | (87) | (84) | (247) | (238) | |||||||||||||||||||
| General, administrative and other | (23) | (20) | (47) | (42) | |||||||||||||||||||
| Total compensation, operating, and general and administrative expenses | (489) | (430) | (1,336) | (1,158) | |||||||||||||||||||
| Carried interest allocation recovery (compensation) | |||||||||||||||||||||||
| Realized | (26) | (3) | (76) | (50) | |||||||||||||||||||
| Unrealized | 46 | (35) | (66) | (32) | |||||||||||||||||||
| Total carried interest allocation recovery (compensation) | 20 | (38) | (142) | (82) | |||||||||||||||||||
| Interest expense | (20) | (8) | (54) | (17) | |||||||||||||||||||
| Interest expense of consolidated funds | (6) | — | (22) | — | |||||||||||||||||||
| Total expenses | (495) | (476) | (1,554) | (1,257) | |||||||||||||||||||
| Other expenses, net | (107) | (69) | (244) | (117) | |||||||||||||||||||
| Share of income from equity method investments | 110 | 61 | 349 | 194 | |||||||||||||||||||
| Other income, net of consolidated funds | 10 | — | 37 | — | |||||||||||||||||||
| Income before taxes | 770 | 633 | 2,011 | 1,737 | |||||||||||||||||||
| Income tax expense | (78) | (96) | (228) | (309) | |||||||||||||||||||
| Net income | $ | 692 | $ | 537 | $ | 1,783 | $ | 1,428 | |||||||||||||||
| Net loss (income) attributable to: | |||||||||||||||||||||||
| Preferred shares redeemable non-controlling interest | $ | 165 | $ | 60 | $ | 391 | $ | 161 | |||||||||||||||
| Non-controlling interest in consolidated entities | (127) | (53) | (229) | (109) | |||||||||||||||||||
| Non-controlling interests in consolidated funds | (6) | — | (20) | — | |||||||||||||||||||
| Net income attributable to the common stockholders | $ | 724 | $ | 544 | $ | 1,925 | $ | 1,480 | |||||||||||||||
BAM primarily generates revenue from fees earned pursuant to contractual arrangements with funds, publicly traded vehicles, and investors, as well as transaction and advisory fees. These fees include base management fees, incentive fees, and certain advisory fees. Base management fees are long-term, recurring in nature, and correspond to fundraising activity, net asset values of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBU. Incentive fees are performance fees earned from BIP and BEP for exceeding predetermined distribution thresholds, are long-term, and are not subject to clawback.
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BAM is entitled to carried interest assuming certain investment returns are achieved, as well as incentive management fees in certain of our structures where we are entitled to contractual fees from an investment fund based on achieving prescribed investment returns.
The composition of our revenues will vary based on market conditions and the cyclical nature of our businesses. Carried interest allocations generated by our funds and associated carried interest compensation are driven by the performance of the underlying investments, as well as overall market conditions. Fair values are affected by changes in the fundamentals of our investments, the industries in which they operate, the overall economy, and other market conditions. The impact of fair values of our underlying investments throughout market cycles may result in material increases or decreases to carried interest generated, net of expenses.
Expenses primarily include employee base compensation, bonuses, and share-based compensation. Period over period changes in employee base compensation and bonuses generally result from changes in headcount and annual salary changes. Share-based awards are granted in the first quarter of each year and generally vest over 5 years. Equity settled compensation awards vest on a graded basis over the vesting period and cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of BAM Class A Shares. Therefore, for cash settled share-based compensation, an increase or decrease in the share price of BAM will result in share-based compensation expense or recovery.
For the three months ended September 30, 2025 and 2024
Net income for the three months ended September 30, 2025 was $692 million, of which $724 million was attributable to common stockholders. This compares to net income of $537 million for the three months ended September 30, 2024, of which $544 million was attributable to common stockholders.
Revenues
Revenues for the three months ended September 30, 2025 were $1.3 billion, which represents an increase of $135 million or 12% compared to $1.1 billion of revenue for the three months ended September 30, 2024.
Base Management and Advisory Fees
Base management and advisory fees, for the three months ended September 30, 2025 were $859 million, which represents an increase of $91 million or 12% compared to the three months ended September 30, 2024. Management fee revenues increased by $64 million from capital raised for the second vintage of our global transition flagship fund, $16 million from inflows and NAV increases of certain liquid infrastructure strategies and $12 million from capital raised for the fifth vintage of our real estate flagship fund.
Incentive Fees
Incentive fees for the three months ended September 30, 2025, were $115 million, an increase of $10 million or 10% from the three months ended September 30, 2024, driven by a 6% growth in BIP dividends of $6 million and 5% growth in BEP dividends of $4 million.
Carried Interest Allocations
Realized carried interest allocations were $nil for the three months ended September 30, 2025 and the three months ended September 30, 2024.
The unrealized carried interest allocation of $112 million for the three months ended September 30, 2025 represents a net increase of $57 million compared to the three months ended September 30, 2024. The gross increase of $206 million compared to the prior period reflects changes in fund valuations associated with the fifth vintage of our infrastructure flagship fund for $103 million and the first vintage of our global transition flagship fund for $94 million. This was partially offset by a decrease of $149 million driven by lower relative valuations across mature real estate flagship funds.
Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the condensed consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM was $241 million for the three months ended September 30, 2025, compared to $104 million for the three months ended September 30, 2024.
Interest and Dividend Revenue
Interest and dividend revenue for the three months ended September 30, 2025 was $24 million, which represents a decrease of $10 million compared to the three months ended September 30, 2024. The decrease was due to lower interest revenue earned on our deposit with BN.
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Interest and Dividend Revenue of Consolidated Funds
Interest and dividend revenue of consolidated funds for the three months ended September 30, 2025 was $7 million, which represents interest and dividends earned from investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Other Revenues
Other revenues were $135 million for the three months ended September 30, 2025, a net decrease of $20 million compared to the three months ended September 30, 2024. The gross decrease of $60 million was due to a reduction in recoveries associated with carried interest compensation for legacy funds. This was partially offset by an increase of $40 million, comprised of $20 million of higher recoveries in share and performance-based compensation, as well as $18 million of other incremental performance fees.
Expenses
Total expenses for the three months ended September 30, 2025 were $495 million, an increase of $19 million or 4% compared to the three months ended September 30, 2024.
Compensation and Benefits
Compensation and benefits for the three months ended September 30, 2025 was $379 million, which represents an increase of $53 million compared to the three months ended September 30, 2024. An increase of $30 million was attributable to higher share and performance-based compensation expense on our cash-settled awards due to an increase in the trading price of BAM Class A Shares during the period. The remaining increase is due to higher compensation costs from the ongoing growth of our business.
Other Operating Expenses
Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses were broadly consistent with the prior period at $87 million for the three months ended September 30, 2025, compared to $84 million for the three months ended September 30, 2024.
Carried Interest Allocation Recovery (Compensation)
Compensation expenses related to carried interest allocation recovery (compensation) was $20 million for the three months ended September 30, 2025, which represents a change of $58 million compared to the three months ended September 30, 2024. This was primarily driven by lower relative valuations across certain real estate funds compared to the three months ended September 30, 2024. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds during the period was $9 million.
Interest Expense
Interest expense for three months ended September 30, 2025 was $20 million, which represents an increase of $12 million compared to the three months ended September 30, 2024. This was driven by BAM's increased borrowings from two debt offerings completed during the year.
Interest Expense of Consolidated Funds
Interest expense of consolidated funds for three months ended September 30, 2025 was $6 million, which was driven by borrowings made by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Other Expenses, net
Other expenses, net for the three months ended September 30, 2025 totaled $107 million compared to other expenses of $69 million in the prior period. This increase was driven by a mark-to-market loss of $74 million in our investment in BSREP III during the three months ended September 30, 2025 compared to a loss of $41 million during the three months ended September 30, 2024. The remaining increase was due to mark-to-market revaluations on put and call options to acquire additional interests in various partner managers.
Other Income, net of Consolidated Funds
Other income, net of consolidated funds for the three months ended September 30, 2025 was $10 million compared to $nil in the prior period. This represents the underlying fair value changes of investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
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Share of Income from Equity Method Investments
Our share of income from equity method investments was $110 million compared to $61 million in the prior period, an increase of $49 million. This is predominantly driven by $39 million of incremental earnings from Castlelake and Concora, as well as $38 million from our other various equity method investments. This was partially offset by a $28 million decrease in income from Oaktree due to lower carried interest in the period.
Income Tax Expense
Income tax expense was $78 million for the three months ended September 30, 2025, which represents a decrease of $18 million compared to the three months ended September 30, 2024. The decrease in income tax expense was predominantly a result of lower taxable income compared to the prior period.
Net Loss Attributable to Preferred Share Redeemable Non-Controlling Interest
BAM recognizes carried interest income and associated carried interest allocation expense on mature funds within our condensed consolidated statements of operations on a gross basis. As the net carried interest generated on mature funds is attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.
Net loss attributable to preferred redeemable non-controlling interest was $165 million for the three months ended September 30, 2025 primarily due to lower valuations in certain mature real estate funds.
Net Income Attributable to Non-Controlling Interest of Consolidated Entities
Net income attributable to non-controlling interest of consolidated entities was $127 million for the three months ended September 30, 2025. BAM recognizes carried interest income on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest revenue is attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the period.
Net Income Attributable to Non-Controlling Interest of Consolidated Funds
For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $6 million for the three months ended September 30, 2025.
For the nine months ended September 30, 2025 and 2024
Net income for the nine months ended September 30, 2025 was $1.8 billion, of which $1.9 billion was attributable to common stockholders. This compares to net income of $1.4 billion for the nine months ended September 30, 2024, of which $1.5 billion was attributable to common stockholders.
Revenues
Revenues for the nine months ended September 30, 2025 were $3.4 billion, which represents an increase of $506 million or 17% compared to $2.9 billion of revenue for the nine months ended September 30, 2024.
Base Management and Advisory Fees
Base management and advisory fees for the nine months ended September 30, 2025 were $2.5 billion, which represents an increase of $348 million or 16% compared to the nine months ended September 30, 2024. Management fee revenues increased by $112 million from capital raised for the fifth vintage of our real estate flagship fund, $109 million from capital raised for the second vintage of our global transition flagship fund, $50 million from insurance capital inflows from BWS and $22 million in NAV increases in BPG. In addition, management fees increased $10 million from a higher trading price of BIP.
Incentive Fees
Incentive fees for the nine months ended September 30, 2025, were $348 million, an increase of $31 million or 10% from the nine months ended September 30, 2024, driven by a 6% growth in BIP dividends of $13 million and 5% growth in BEP dividends of $8 million.
Carried Interest Allocations
Realized carried interest allocations were $nil for the nine months ended September 30, 2025, which represents a net decrease of $11 million compared to the nine months ended September 30, 2024. Realized carried interest allocations in the prior period were predominantly due to dispositions within our first real estate flagship fund and certain other real estate fund strategies. All realized carried interest income in the nine months ended September 30, 2024, net of carried interest compensation related to mature funds and are attributable to BN through our redeemable preferred shares.
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The unrealized carried interest allocations of $51 million for the nine months ended September 30, 2025 represents an increase of $75 million compared to the nine months ended September 30, 2024. The gross increase of $363 million compared to the prior period reflects changes in fund valuations associated with the fifth vintage of our infrastructure flagship fund of $210 million and the first vintage of our global transition flagship fund for $121 million. This was partially offset by a decrease of $288 million compared to the prior period reflecting lower relative valuations across various mature real estate flagship funds.
Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the condensed consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM were $421 million for the nine months ended September 30, 2025, compared to $179 million for the nine months ended September 30, 2024.
Interest and Dividend Revenue
Interest and dividend revenue for the nine months ended September 30, 2025 was $71 million, which represents a decrease of $46 million compared to the nine months ended September 30, 2024. The decrease was due to lower interest income earned on our deposit with BN.
Interest and Dividend Revenue of Consolidated Funds
Interest and dividend revenue of consolidated funds for the nine months ended September 30, 2025 was $22 million, which represents interest and dividends earned from investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Other Revenues
Other revenues were $420 million for the nine months ended September 30, 2025, an increase of $87 million compared to the nine months ended September 30, 2024. Of the total increase, $50 million was due to higher recoveries in share and performance-based compensation. In addition, the increase was also driven by $23 million of other incremental performance fees.
Expenses
Total expenses for the nine months ended September 30, 2025 were $1.6 billion, an increase of $297 million or 24% compared to the nine months ended September 30, 2024.
Compensation and Benefits
Compensation and benefits for the nine months ended September 30, 2025 was $1.0 billion, which represents an increase of $164 million compared to the nine months ended September 30, 2024. This was attributable to higher share-based compensation expense of $79 million on our share and performance-based awards due to an increase in the trading price of BAM Class A Shares during the period. The remaining increase is due to higher compensation costs from the ongoing growth of our business.
Other Operating Expenses
Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses were broadly consistent with the prior period at $247 million for the nine months ended September 30, 2025, compared to $238 million for the nine months ended September 30, 2024.
Carried Interest Allocation Compensation
Compensation expenses related to carried interest allocation compensation was $142 million for the nine months ended September 30, 2025, which represents a change of $60 million compared to the nine months ended September 30, 2024. This was primarily driven by higher relative valuations across certain renewable, infrastructure, and private equity funds compared to the prior period. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $32 million during the period.
Interest Expense
Interest expense for nine months ended September 30, 2025 was $54 million, which represents an increase of $37 million compared to the nine months ended September 30, 2024. This was driven by BAM's increased borrowings from two debt offerings completed during the year.
Interest Expense of Consolidated Funds
Interest expense of consolidated funds for nine months ended September 30, 2025 was $22 million, which was driven by borrowings made by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
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Other Expenses, net
Other expenses, net for the nine months ended September 30, 2025 was $244 million compared to $117 million in the prior period. This increase was driven by a mark-to-market loss of $152 million in our investment in BSREP III during the nine months ended September 30, 2025 compared to a loss of $43 million during the nine months ended September 30, 2024. The remaining increase was due to mark-to-market revaluations in put and call options to acquire additional interests in our partner managers.
Other Income, net of Consolidated Funds
Other income, net of consolidated funds for the nine months ended September 30, 2025 was $37 million compared to $nil in the prior period. This represents the underlying fair value changes of investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Share of Income from Equity Method Investments
Our share of income from equity method investments was $349 million compared to $194 million in the prior period, an increase of $155 million. This is predominantly driven by $99 million of incremental earnings from Castlelake and Concora, as well as $56 million from our other equity method investments.
Income Tax Expense
Income tax expense was $228 million for the nine months ended September 30, 2025, which represents a decrease of $81 million compared to the nine months ended September 30, 2024. The decrease in income tax expense was predominantly a result of lower taxable income compared to the prior period.
Net Loss Attributable to Preferred Share Redeemable Non-Controlling Interest
BAM recognizes carried interest income and associated carried interest allocation expense on mature funds within our condensed consolidated statements of operations on a gross basis. As the net carried interest generated on mature funds is attributable to BN, the net income or loss attributable to BN via the preferred shares primarily represents the change in carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.
Net loss attributable to preferred redeemable non-controlling interest was $391 million for the nine months ended September 30, 2025 primarily due to lower valuations in certain mature real estate funds.
Net Income Attributable to Non-Controlling Interest of Consolidated Entities
Net income attributable to non-controlling interest of consolidated entities was $229 million for the nine months ended September 30, 2025. BAM recognizes carried interest income on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest revenue is attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the period.
Net Income Attributable to Non-Controlling Interest of Consolidated Funds
For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $20 million for the nine months ended September 30, 2025.
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Balance Sheet Analysis
Condensed Consolidated Balance Sheets
The following table presents the condensed consolidated balance sheets of BAM as at September 30, 2025 and December 31, 2024:
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS, EXCEPT SHARE AMOUNTS) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 1,062 | $ | 404 | |||||||
| Accounts receivable and other, net | 373 | 483 | |||||||||
| Financial assets | 265 | 231 | |||||||||
| Due from affiliates | 3,408 | 2,500 | |||||||||
| Investments | 9,641 | 9,113 | |||||||||
| Investments held for sale | — | 242 | |||||||||
| Investments of consolidated funds | 487 | 251 | |||||||||
| Deferred income tax assets | 702 | 586 | |||||||||
| Other assets | 583 | 347 | |||||||||
| Total assets | $ | 16,521 | $ | 14,157 | |||||||
| Liabilities | |||||||||||
| Accounts payable and other, net | $ | 2,495 | $ | 1,349 | |||||||
| Financial liabilities | 393 | 228 | |||||||||
| Due to affiliates | 899 | 1,092 | |||||||||
| Corporate borrowings | 1,486 | — | |||||||||
| Borrowings of consolidated funds | 453 | 251 | |||||||||
| Deferred income tax liabilities | 121 | 46 | |||||||||
| Total liabilities | 5,847 | 2,966 | |||||||||
| Commitments and contingencies | |||||||||||
| Preferred shares redeemable non-controlling interest | 1,562 | 2,103 | |||||||||
| Equity | |||||||||||
| Common Stock: | |||||||||||
Class A, no par value, unlimited authorized, 1,637,849,393 (December 31, 2024 - 1,637,156,992) issued and 1,612,336,858 (December 31, 2024 - 1,614,238,281) outstanding as at September 30, 2025 | 9,151 | 9,017 | |||||||||
Class A held in treasury, no par value, 25,512,535 (December 31, 2024 - 22,918,711) shares as at September 30, 2025 | (289) | (91) | |||||||||
Class B, no par value, unlimited authorized, 21,280 (December 31, 2024 - 21,280) issued, and outstanding as at September 30, 2025 | — | — | |||||||||
| Retained deficit | (704) | (488) | |||||||||
| Accumulated other comprehensive income | 189 | 162 | |||||||||
| Additional paid-in capital | 114 | 152 | |||||||||
| Total common equity | 8,461 | 8,752 | |||||||||
| Non-controlling interest in consolidated entities | 634 | 336 | |||||||||
| Non-controlling interest in consolidated funds | 17 | — | |||||||||
| Total equity | 9,112 | 9,088 | |||||||||
| Total liabilities, redeemable non-controlling interest and equity | $ | 16,521 | $ | 14,157 | |||||||
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As at September 30, 2025 and December 31, 2024
Assets
Total assets were $16.5 billion as at September 30, 2025, an increase of $2.4 billion or 17% compared to December 31, 2024.
Cash and Cash Equivalents
Cash and cash equivalents were $1.1 billion as at September 30, 2025, an increase of $658 million from December 31, 2024. This was largely driven by cash inflows of $1.5 billion from BAM's debt issuances during the year. The increase was partially offset by cash outflows of approximately $400 million due to investments made in Oaktree, Concora, Primary Wave and various warehoused investments made by BAM to support its strategies. Share buybacks made during the nine months ended September 30, 2025 also resulted in a decrease in cash and cash equivalents.
Accounts Receivable and Other, Net
Accounts receivable and other, net of $373 million primarily consists of receivables from third parties and prepaid expenses. The decrease of $110 million from December 31, 2024 was largely driven by the timing of collections.
Financial Assets
Financial assets of $265 million primarily consists of call options to acquire additional interests in Primary Wave and Castlelake in the future and financial instruments associated with various other investments. The increase of $34 million from December 31, 2024 was largely driven by mark-to-market valuation increases on certain call options.
Due from Affiliates
Due from affiliates of $3.4 billion primarily relates to management fees earned but not collected from our managed funds, receivables for expenses paid on behalf of certain of our funds, as well as reimbursements due from BN for long-term compensation awards. The movement of $908 million from December 31, 2024 reflects additional receivables owing from BN associated with existing share-based compensation and carried interest compensation awards upon the completion of the 2025 Arrangement.
Investments
Investments are mainly comprised of:
•An approximate 74% economic interest in Oaktree of $4.7 billion (2024 – $4.6 billion);
•Our limited partnership interest in BSREP III of $734 million (2024 - $1.0 billion);
•An economic interest in Castlelake of $770 million (2024 – $538 million);
•Accumulated unrealized carried interest in our mature and new funds of $351 million (2024 - $931 million) and $1.3 billion (2024 - $693 million), respectively;
•An approximate 11% economic interest in Pretium of $340 million (2024 - $351 million);
•A 44% economic interest in PWMP Ventures LLC ("Primary Wave") of $259 million (2024 – $147 million);
•A 49.9% economic interest in LC Financial Holdings Limited (“LCM”) of $217 million (2024 – $186 million); and
•Limited partner interests in funds of $303 million (2024 - $29 million) including Pinegrove Opportunity Partners I LP and Brookfield Private Equity Fund L.P.
The investment in BSREP III and carried interest generated on mature funds are fully attributable to BN through their preferred shares redeemable non-controlling interest and does not impact net income attributable to common stockholders.
During the period, investments increased by $528 million primarily due to investments made by BAM during the period in Concora ($197 million), Pinegrove Opportunity Partners I LP ($156 million) and Primary Wave ($84 million). In addition, investments also increased due to changes in value of accumulated unrealized carried interest on new funds ($361 million), partially offset by a decrease in accumulated unrealized carried interest on mature funds ($249 million).
Investments of Consolidated Funds
Investments of consolidated funds represents investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the fund. Investments in these funds are measured at fair value. The increase of $236 million compared to December 31, 2024 was driven by additional investments made by certain consolidated funds.
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Investments Held for Sale
Investments held for sale was $nil at September 30, 2025. The decrease of $242 million compared to December 31, 2024 was a result of BAM's disposition of its interest in Redwood Evergreen Fund LP for approximately $257 million during the nine months ended September 30, 2025.
Liabilities
Total liabilities were $5.8 billion as at September 30, 2025, an increase of $2.9 billion or 97% compared to December 31, 2024.
Accounts Payable and Other, Net
Accounts payable and other, net primarily consists of accrued bonus compensation, performance and cash-settled share-based compensation. The increase of $1.1 billion compared to December 31, 2024 reflects additional existing cash-settled awards recognized upon the completion of the 2025 Arrangement.
Financial Liabilities
Financial liabilities of $393 million primarily consists of contingent consideration associated with our investment in Castlelake and the mark-to-market of derivatives associated with put options on certain of our other partner managers. The increase of $165 million compared to December 31, 2024 reflects the change in value of the options during the period.
Due to Affiliates
Due to affiliates of $899 million reflects amount payable to related parties for share and cash-based compensation, as well as for services received in the normal course of business including operating expenses payable. The decrease of $193 million or 18% relative to December 31, 2024 was due to the elimination of certain amounts owing as a result of the 2025 Arrangement and payments made on certain of our loans payable to related parties.
Corporate Borrowings
Corporate borrowings increased by $1.5 billion as a result of BAM's two debt offerings during the nine months ended September 30, 2025.
Borrowings of Consolidated Funds
Borrowings of consolidated funds represents borrowings used to finance investments within certain of our funds where BAM is required to consolidate the fund due to our economic interest. These increased borrowings of $202 million compared to December 31, 2024 was driven by borrowings made by consolidated funds to fund additional investments.
Preferred Shares Redeemable Non-Controlling Interest
BAM recognizes carried interest generated and associated carried interest allocation expense on mature funds within our condensed consolidated statements of operations. As the net carried interest generated on mature funds is all attributable to BN, this balance primarily represents the accumulated unrealized carried interest, net of carried interest allocation expense and taxes on mature funds owing to BN.
Preferred shares redeemable non-controlling interest was $1.6 billion as at September 30, 2025, a decrease of $541 million compared to $2.1 billion as at December 31, 2024. This movement was due to a decrease in unrealized carried interest on mature funds, as well as settlements of amounts owed to BN, during the nine months ended September 30, 2025.
Non-Controlling Interest in Consolidated Entities
Non-controlling interest in consolidated entities was $634 million as at September 30, 2025, an increase of $298 million compared to $336 million as at December 31, 2024. This increase was primarily due to a portion of carried interest generated across the latest vintages of our flagship funds that is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within BAM.
Non-Controlling Interest in Consolidated Funds
Non-controlling interest in consolidated funds was $17 million as at September 30, 2025. This represents the portion of funds BAM is required to consolidate that are owned by other parties.
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Cash Flow Statement Analysis
Review of Condensed Consolidated Statements of Cash Flows
Refer to the following table that summarizes the condensed consolidated statements of cash flows for BAM for the three and nine months ended September 30, 2025 and 2024:
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Operating activities | $ | 745 | $ | 567 | $ | 1,395 | $ | 1,476 | |||||||||||||||
| Investing activities | (8) | (1,323) | (263) | (1,781) | |||||||||||||||||||
| Financing activities | (161) | (277) | (482) | (1,460) | |||||||||||||||||||
| Change in cash and cash equivalents | $ | 576 | $ | (1,033) | $ | 650 | $ | (1,765) | |||||||||||||||
This statement reflects activities within our consolidated operations and therefore excludes activities within non-consolidated entities.
For the three months ended September 30, 2025 and 2024
Operating Activities
During the three months ended September 30, 2025, the Company's operating activities generated cash inflows of $745 million, compared to cash inflows of $567 million in the prior period. The increase in operating cash flows compared to the prior period was primarily due to higher cash generated from fee revenues.
Investing Activities
Net cash outflows from investing activities totaled $8 million, compared to outflows of $1.3 billion in the prior period. Outflows for the three months ended September 30, 2024 were higher due to investments made in Castlelake, Redwood Evergreen Fund LP and GEMS.
Financing Activities
Net cash outflows from financing activities totaled $161 million, compared to outflows of $277 million in the prior period. Cash inflows were driven by the issuance of corporate borrowings for $750 million partially offset by dividend distributions of $706 million. Dividend distributions have increased in the current period as a result of a 15% increase in dividend distributions compared to the prior period.
For the nine months ended September 30, 2025 and 2024
Operating Activities
During the nine months ended September 30, 2025, the Company's operating activities generated cash inflows of $1.4 billion, compared to cash inflows of $1.5 billion in the prior period. The decrease in operating cash flows compared to the prior period was primarily due to changes in investments of consolidated funds of $457 million partially offset by higher cash generated from fee revenues and net changes in working capital.
Investing Activities
Net cash outflows from investing activities totaled $263 million, compared to outflows of $1.8 billion in the prior period. Outflows are primarily due to investments of $740 million associated with our step-up in ownership of Oaktree, Primary Wave and participation in Castlelake's acquisition of Concora, partially offset by the disposition of BAM's interest in Redwood Evergreen Fund LP for $262 million. Outflows in the nine months ended September 30, 2024 were higher due to investments in Castlelake, Redwood Evergreen Fund LP and GEMS.
Financing Activities
Net cash outflows from financing activities totaled $482 million, compared to outflows of $1.5 billion in the prior period. Cash outflows were driven by dividend distributions of $2.1 billion partially offset by the issuance of corporate borrowings for $1.5 billion and borrowings related to consolidated funds. Dividend distributions have increased in the current period as a result of a 15% increase in dividend distributions compared to the prior period.
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Key Financial and Operating Measures
BAM prepares its financial statements in conformity with U.S. GAAP. This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our business, including for performance measurement, capital allocation and valuation purposes. BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our business. These non-GAAP financial measures should not be considered as the sole measure of BAM’s performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S. GAAP financial measures. These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers. The financial results of BAM includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business. See “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures”, in this report.
Non-GAAP Measures Utilized by BAM
Fee Revenues
Fee Revenues is a key metric analyzed by management to determine the growth in recurring cash flows from our business. Fee Revenues include base management fees, incentive distributions, performance fees and transaction fees. Fee Revenues exclude carried interest and revenues of consolidated funds, but include Fee Revenues earned by Oaktree. The most directly comparable measure of Fee Revenues disclosed in the financial statements is base management and advisory fees. See “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee Revenues.
Fee-Related Earnings
Fee-Related Earnings is used to provide additional insight into the operating profitability of our asset management activities. Fee-Related Earnings are recurring in nature and not based on future realization events. Fee-Related Earnings is comprised of Fee Revenues less direct costs associated with earning those fees, which include employee compensation and professional fees as well as business related technology costs, and other shared services costs. Fee-Related Earnings exclude revenues and expenses of consolidated funds. The most directly comparable measure of Fee-Related Earnings disclosed in the primary financial statements is net income. See “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Fee-Related Earnings.
Distributable Earnings
BAM intends to pay out approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business.
Distributable Earnings provides insight into earnings that are available for distribution or to be reinvested by BAM. It is calculated as the sum of its Fee-Related Earnings, realized carried interest, returns from our corporate cash and financial assets, interest expense, cash taxes, and general and administrative expenses excluding equity-based compensation expenses. The most directly comparable measure disclosed in the primary financial statements of our asset management business for Distributable Earnings is net income. See “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of U.S. GAAP to Non-GAAP Measures” for our reconciliation of Distributable Earnings.
Supplemental Financial Measures Utilized by BAM
Assets Under Management
AUM refers to the total fair value of assets managed, calculated as follows:
•Investments that Brookfield, which includes BN, BAM, or their affiliates, either:
◦Consolidates for accounting purposes (generally, investments in respect of which Brookfield has a significant economic interest and unilaterally directs day-to-day operating, investing and financing activities), or
◦Does not consolidate for accounting purposes but over which Brookfield has significant influence by virtue of one or more attributes (e.g., being the largest investor in the investment, having the largest representation on the investment’s governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes),
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◦Are calculated at 100% of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis, even if Brookfield does not own 100% of the investment, with the exception of investments held through our perpetual funds, which are calculated at its proportionate economic share of the investment’s net asset value.
•All other investments are calculated at Brookfield’s proportionate economic share of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis.
Our methodology for determining AUM differs from the methodology that is employed by other alternative asset managers as well as the methodology for calculating regulatory AUM that is prescribed for certain regulatory filings (e.g., Form ADV and Form PF).
Fee-Bearing Capital
Fee-Bearing Capital represents the capital committed, pledged, or invested in our perpetual affiliates, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues. Fee-Bearing Capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts.
When reconciling period amounts, we utilize the following definitions:
•Inflows include capital commitments and contributions to our private and liquid strategies funds, and capital issuances in our perpetual affiliates.
•Outflows represent distributions and redemptions of capital from liquid and perpetual capital.
•Distributions represent quarterly distributions from perpetual affiliates as well as returns of committed capital (excluding market valuation adjustments), redemptions and expiry of uncalled commitments within our private funds.
•Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices.
•Other includes changes in net non-recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments.
Uncalled Fund Commitments
Total Uncalled Fund Commitments includes capital callable from fund investors, including funds outside of their investment period, for which capital is callable for follow-on investments.
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Fee-Bearing Capital Diversification
AS AT SEP 30, 2025 AND DEC 31, 2024 (BILLIONS)
Long-term Private Funds
As of September 30, 2025, we managed approximately $278 billion of Fee-Bearing Capital across a diverse range of long-term private funds that target opportunistic (20%+, gross), value-add (15%-16%, gross), core and core plus (9%-13%, gross) returns. These funds are generally closed-end and have a long duration, typically committed for 10 years with 2 one-year extension options.
On these products, we earn:
•Diversified and long-term base management fees, typically on committed capital or invested capital, depending on the nature of the fund and where the fund is in its life,
•Transaction and advisory fees on co-investment capital that we raise and deploy alongside our long-term private funds, which vary based on transaction agreements, and
•Carried interest or performance fees, which entitle us to a portion of overall fund profits, provided that investors receive a minimum prescribed preferred return. Carried interest is typically paid towards the end of the life of a fund after capital has been returned to investors and may be subject to “clawback” until all investments have been monetized and minimum investment returns are sufficiently assured. BN is entitled to receive 33.3% of the carried interest on new sponsored funds of BAM and will retain all of the carried interest earned on our existing mature funds.
Permanent Capital and Perpetual Strategies
As of September 30, 2025, we managed approximately $228 billion of Fee-Bearing Capital across our permanent capital vehicles, perpetual core, and core plus private funds.
On these products, we earn:
•Long-term perpetual base management fees, which are based on the market capitalization or net asset value of our permanent capital vehicles and on the net asset value of our perpetual private funds.
•Stable incentive distribution fees from BEP and BIP, which are linked to the growth in cash distributions paid to investors above a predetermined hurdle. Both BEP and BIP have a long-standing track record of growing distributions annually within their target range of 5-9%.
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•Performance fees from BBU are based on unit price performance above a prescribed high-water mark price, which are not subject to clawback, as well as carried interest on our perpetual private funds.
Liquid Strategies
As of September 30, 2025, we managed approximately $75 billion of Fee-Bearing Capital across our liquid strategies, which included capital that we manage on behalf of our publicly listed funds and separately managed accounts, with a focus on fixed income and equity securities across real estate, infrastructure, and natural resources.
On these products, we earn:
•Base management fees, which are based on committed capital or fund net asset value, and
•Performance income based on investment returns above a minimum prescribed return.
Analysis of Key Non-GAAP Financial and Operating Measures
The following section contains a discussion and analysis of key financial and operating measures utilized in managing our business, including for performance measurement, capital allocation, and valuation purposes. For further detail on our non-GAAP and performance measures, please refer to “Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Financial and Operating Measures”, in this report.
Fee-Bearing Capital
The following tables summarize Fee-Bearing Capital as at September 30, 2025 and December 31, 2024:
AS AT (MILLIONS) | Long-term private funds | Permanent capital and perpetual strategies | Liquid strategies | Total | |||||||||||||||||||
| Infrastructure | $ | 46,284 | $ | 54,795 | $ | — | $ | 101,079 | |||||||||||||||
| Renewable power and transition | 42,103 | 26,586 | — | 68,689 | |||||||||||||||||||
| Private equity | 38,403 | 7,939 | — | 46,342 | |||||||||||||||||||
| Real estate | 72,616 | 29,175 | — | 101,791 | |||||||||||||||||||
| Credit | 78,575 | 109,483 | 74,706 | 262,764 | |||||||||||||||||||
| September 30, 2025 | $ | 277,981 | $ | 227,978 | $ | 74,706 | $ | 580,665 | |||||||||||||||
| December 31, 2024 | $ | 262,060 | $ | 208,556 | $ | 67,925 | $ | 538,541 | |||||||||||||||
The changes in Fee-Bearing Capital are set out in the following table for the three months ended September 30, 2025:
FOR THE THREE MONTHS ENDED SEPTEMBER 30, (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total | |||||||||||||||||||||||||||||
| June 30, 2025 | $ | 99,637 | $ | 64,385 | $ | 43,153 | $ | 101,775 | $ | 253,785 | $ | 562,735 | |||||||||||||||||||||||
| Inflows | 3,266 | 4,759 | 3,356 | 1,474 | 13,240 | 26,095 | |||||||||||||||||||||||||||||
| Outflows | — | — | — | (10) | (5,080) | (5,090) | |||||||||||||||||||||||||||||
| Distributions | (1,647) | (379) | (264) | (2,121) | (1,760) | (6,171) | |||||||||||||||||||||||||||||
| Market valuation | (105) | 880 | 869 | (24) | 4,007 | 5,627 | |||||||||||||||||||||||||||||
| Other | (72) | (956) | (772) | 697 | (1,428) | (2,531) | |||||||||||||||||||||||||||||
| Change | 1,442 | 4,304 | 3,189 | 16 | 8,979 | 17,930 | |||||||||||||||||||||||||||||
| September 30, 2025 | $ | 101,079 | $ | 68,689 | $ | 46,342 | $ | 101,791 | $ | 262,764 | $ | 580,665 | |||||||||||||||||||||||
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For the three months ended September 30, 2025
Fee-Bearing Capital was $581 billion as at September 30, 2025 compared to $563 billion as at June 30, 2025, a net increase of $17.9 billion, or 3%:
•Inflows of $26.1 billion include capital commitments and contributions to our long-term private funds and liquid strategies, and issuances from our perpetual affiliates. During the quarter, $3.3 billion from infrastructure were predominantly driven by co-investment fundraising, inflows to our perpetual strategies, and the issuance of debt by BIP. Inflows of $4.8 billion in renewable power and transition primarily comprised of follow-on closes from the second vintage of our flagship global transition fund as well as inflows from other long-term private funds and perpetual strategies. Inflows of $3.4 billion from private equity primarily relate to fundraising in certain complementary strategies and other long-term private funds. Real estate inflows of $1.5 billion were attributable to capital deployments and fundraising across our real estate flagship funds, co-investment vehicles, and complementary strategies. Within our credit strategy, inflows of $13.2 billion were attributable to insurance capital inflows from BWS, inflows from our liquid and perpetual strategies, and deployments across our long-term funds.
•Outflows represent distributions and redemptions of capital from liquid and perpetual strategies. During the quarter, outflows of $5.1 billion were primarily due to maturities of annuities within insurance capital in BWS and redemptions within certain of our liquid and perpetual strategies.
•Distributions represent quarterly distributions from our perpetual affiliates as well as returns of committed capital, redemptions and expiry of uncalled commitments within our private funds. During the quarter, $6.2 billion of distributions were primarily driven by $1.8 billion from our real estate and infrastructure flagship funds and $1.5 billion from other long-term private funds and perpetual strategies. In addition, distributions included $1.1 billion from our credit long-term private funds, $1.1 billion from our listed affiliates and BPG, and $638 million across our partner managers.
•Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices. During the quarter, market valuation increases of $5.6 billion were predominantly driven by higher market valuations across our liquid credit and perpetual strategies, which increased Fee-Bearing Capital by $3.9 billion. Increases of $1.7 billion were attributable to higher market prices of BEP and BBU, partially offset by a decrease of $510 million associated with a lower market price of BIP and lower NAV of BPG.
•Other includes changes in net recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments. During the quarter, $956 million primarily related to the paydown of debt at BEP. Other changes of $772 million from our private equity platform partially relate to the step-down in fee-basis associated with certain long-term private funds. Real estate changes of $697 million were primarily driven by the impact of foreign exchange and various other movements. Credit movements primarily relate to the change in fee-basis for certain of our perpetual and long-term private fund vehicles. The impact of foreign exchange resulted in certain decreases of Fee-Bearing Capital within long-term private funds across the business.
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The changes in Fee-Bearing Capital are set out in the following table for the nine months ended September 30, 2025:
AS AT AND FOR THE NINE MONTHS ENDED (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total | |||||||||||||||||||||||||||||
| December 31, 2024 | $ | 97,050 | $ | 57,857 | $ | 45,190 | $ | 93,629 | $ | 244,815 | $ | 538,541 | |||||||||||||||||||||||
| Inflows | 4,595 | 9,206 | 4,422 | 13,742 | 36,716 | 68,681 | |||||||||||||||||||||||||||||
| Outflows | — | — | — | (242) | (15,616) | (15,858) | |||||||||||||||||||||||||||||
| Distributions | (3,380) | (1,804) | (818) | (5,040) | (8,250) | (19,292) | |||||||||||||||||||||||||||||
| Market valuation | 2,836 | 3,712 | 969 | (27) | 7,650 | 15,140 | |||||||||||||||||||||||||||||
| Other | (22) | (282) | (3,421) | (271) | (2,551) | (6,547) | |||||||||||||||||||||||||||||
| Change | 4,029 | 10,832 | 1,152 | 8,162 | 17,949 | 42,124 | |||||||||||||||||||||||||||||
| September 30, 2025 | $ | 101,079 | $ | 68,689 | $ | 46,342 | $ | 101,791 | $ | 262,764 | $ | 580,665 | |||||||||||||||||||||||
For the nine months ended September 30, 2025
Fee-Bearing Capital was $581 billion as at September 30, 2025 compared to $539 billion as at December 31, 2024, representing a net increase of $42.1 billion, or 8%:
•Inflows of $68.7 billion include capital commitments and contributions to our long-term private funds and liquid strategies, and issuances from our perpetual affiliates. During the nine months ended September 30, 2025, infrastructure inflows of $4.6 billion were predominantly attributable to fundraising from our co-investment vehicles and perpetual strategies as well as the issuance of debt from BIP. Renewable power and transition inflows of $9.2 billion were primarily attributable to closes on the second vintage of our flagship global transition fund and our catalytic transition fund as well as inflows from other long-term private funds and perpetual strategies. Private equity inflows of $4.4 billion were driven by new commitments to our co-investment vehicles as well as fundraising from complementary strategies and other long-term private funds. Real estate inflows of $13.7 billion were attributable to capital deployment and fundraising from our real estate flagship funds including co-invest capital as well as opportunistic debt repayment within our permanent real estate vehicle. Credit inflows of $36.7 billion were primarily driven by insurance capital inflows from BWS, fundraising and capital deployed across long-term, perpetual, and liquid strategies, and fundraising associated with our partner managers.
•Outflows represent distributions and redemptions of capital from liquid and perpetual strategies. During the nine months ended September 30, 2025, outflows of $15.9 billion were predominantly driven by maturities of annuities for insurance capital in BWS and redemptions within certain of our liquid and perpetual strategies.
•Distributions represent quarterly distributions from our perpetual affiliates as well as returns of committed capital and redemptions and expiry of uncalled commitments within our private funds. During the nine months ended September 30, 2025, distributions of $19.3 billion were driven by $6.5 billion from Oaktree long-term private funds, $4.2 billion from infrastructure, private equity, and real estate flagship funds, $3.5 billion from our listed affiliates and BPG, $2.0 billion attributable to partner managers, and the remainder attributable to real estate complementary strategies and various earlier vintages of our long-term private funds to our clients.
•Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices. During the nine months ended September 30, 2025, increases of $15.1 billion were driven by $6.7 billion attributable to liquid and perpetual credit strategies, $6.3 billion as a result of higher market prices of BIP, BEP, and BBU, approximately $1.0 billion attributable to perpetual infrastructure strategies, and $939 million attributable to credit long-term private funds.
•Other includes $6.5 billion of changes in net recourse leverage included in the determination of the permanent capital vehicle capitalizations and the impact of foreign exchange fluctuations on non-U.S. dollar commitments. Private equity movements of $3.4 billion primarily relate to lower valuations within earlier vintages of our flagship funds and co-investment vehicles and debt repayment by BBU. Credit movements primarily relate to the change in fee-basis associated with certain perpetual and long-term private fund vehicles. Real estate changes of $271 million primarily related to lower valuations within an earlier vintage flagship fund as well as the impact of a change in fee-basis associated with certain perpetual vehicles. The impact of foreign exchange resulted in certain decreases of Fee-Bearing Capital within long-term private funds across the business.
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Distributable Earnings
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Base management fees1 | $ | 1,258 | $ | 1,094 | $ | 3,599 | $ | 3,121 | |||||||||||||||
| Incentive distributions | 116 | 106 | 349 | 318 | |||||||||||||||||||
| Transaction and advisory fees | 16 | 10 | 27 | 32 | |||||||||||||||||||
| Fee Revenues | 1,390 | 1,210 | 3,975 | 3,471 | |||||||||||||||||||
Less: direct costs1,2 | (616) | (538) | (1,789) | (1,606) | |||||||||||||||||||
| 774 | 672 | 2,186 | 1,865 | ||||||||||||||||||||
| Less: Fee-Related Earnings not attributable to BAM | (20) | (28) | (58) | (86) | |||||||||||||||||||
Fee-Related Earnings3 | $ | 754 | $ | 644 | $ | 2,128 | $ | 1,779 | |||||||||||||||
| Cash taxes | (98) | (84) | (277) | (213) | |||||||||||||||||||
Add back: equity-based compensation costs4 | 11 | 8 | 36 | 30 | |||||||||||||||||||
Add back: Investment and other income (net of interest expense)5 | (6) | 51 | 41 | 118 | |||||||||||||||||||
| Distributable Earnings | $ | 661 | $ | 619 | $ | 1,928 | $ | 1,714 | |||||||||||||||
1.Base management fees and direct costs are presented on a 100% basis for BAM and BAM's investment in Oaktree.
2.Direct costs include compensation expense, other operating expenses and general, administrative, and other expenses, and related Oaktree direct costs at 100%.
3.Fee-Related Earnings include Oaktree’s Fee-Related Earnings at our approximate 74% ownership interest (September 30, 2024 – 73%).
4.This adjustment adds back equity-based compensation costs.
5.This adjustment adds back other income associated with our portion of partly owned subsidiaries’ investment income, realized carried interest, interest income and interest expense.
For the three months ended September 30, 2025
Fee Revenues for the three months ended September 30, 2025 were $1.4 billion, an increase of $180 million or 15% compared to the prior period. This increase was predominantly due to an increase in base management fees of $164 million or 15%, driven by $79 million of incremental earnings from partner managers and $75 million of incremental Fee Revenues from the second vintage of our flagship global transition fund and fifth real estate flagship fund. In addition, $23 million of higher fee revenue was driven by inflows to our infrastructure and renewable power and transition perpetual strategies and other long-term private funds and $5 million from BBU and certain perpetual real estate strategies as a result of a higher share price and NAV. These increases were partially offset by $18 million in lower fees from our eleventh flagship opportunistic credit fund as well as earlier vintages of real estate flagship funds due to distributions made during the period.
Transaction fees increased by $6 million driven by higher fees from our infrastructure strategies, partially offset by lower transaction fees from private equity.
Incentive distributions increased by $10 million or 9% as a result of an increase in BEP and BIP's quarterly dividend over the prior period of 5% and 6%, respectively.
Direct costs increased by $78 million or 14% from the prior period as we continue to scale our asset management business.
Fee-Related Earnings not attributable to BAM decreased by $8 million due to lower Fee-Related Earnings from Oaktree.
Distributable Earnings were $661 million for the three months ended September 30, 2025, an increase of $42 million or 7% compared to the prior period. The increase was primarily driven by $110 million of higher Fee-Related Earnings, partially offset by $57 million of lower investment income due to higher interest expense on our newly issued corporate borrowings and lower interest revenue from cash on deposit, and $14 million of higher cash taxes on Fee-Related Earnings.
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For the nine months ended September 30, 2025
Fee Revenues for the nine months ended September 30, 2025 were $4.0 billion, an increase of $504 million or 15% compared to the prior period. This increase was predominantly due to an increase in base management fees of $478 million or 15%, driven by $110 million of incremental fee revenue from the fifth vintage of our flagship real estate fund and $110 million from the second vintage of our flagship global transition fund. Additionally, our partner managers contributed incremental fee revenues of $156 million as a result of the acquisition of Castlelake and Concora which are not reflected in the comparative period. In addition, we recognized incremental fee revenue of $49 million from BWS due to the AEL mandate. BAM also realized additional fees of $78 million from fundraising and growth across our private funds and complementary strategies and $36 million of higher Fee Revenues from our listed affiliates as a result of higher share prices of BIP, BEP, and BBU as well as a higher net asset value of BPG. These increases were partially offset by $61 million in lower fees from certain credit strategies and earlier vintages of flagship funds due to distributions made to clients over the past 12 months.
Transaction fees also decreased by $5 million as the prior period reflected higher fees from our renewable power and transition, and private equity strategies offset by higher transaction revenues from infrastructure in the current period.
Incentive distributions increased by $31 million or 10% as a result of an increase in BEP and BIP's quarterly dividend over the prior period of 5% and 6%, respectively.
Direct costs increased by $183 million or 11% from the prior period as we continue to scale our business.
Fee-Related Earnings not attributable to BAM decreased by $28 million due to lower Fee-Related Earnings from Oaktree.
Distributable Earnings were $1.9 billion for the nine months ended September 30, 2025, an increase of $214 million compared to the prior period. The increase was primarily driven by $349 million of higher Fee-Related Earnings, partially offset by $64 million of higher cash taxes on Fee-Related Earnings, $77 million of lower investment income primarily due to higher interest expense on our recently issued corporate debt, and $6 million of higher equity-based compensation costs.
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Investment Strategy Results
In each of our product categories, we invest globally in various investment strategies, each benefiting from strong secular tailwinds that provide an expanding multi-trillion dollar investable universe. Our investment strategies are (a) infrastructure, (b) renewable power and transition, (c) private equity, (d) real estate, and (e) credit.
The following tables summarize Fee-Bearing Capital and Fee Revenues by investment strategy:
Fee-Bearing Capital
AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Infrastructure | $ | 101,079 | $ | 97,050 | |||||||
| Renewable power and transition | 68,689 | 57,857 | |||||||||
| Private equity | 46,342 | 45,190 | |||||||||
| Real estate | 101,791 | 93,629 | |||||||||
| Credit | 262,764 | 244,815 | |||||||||
| Total Fee-Bearing Capital | $ | 580,665 | $ | 538,541 | |||||||
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | 562,735 | $ | 513,835 | $ | 538,541 | $ | 456,998 | |||||||||||||||
| Inflows | 26,095 | 19,326 | 68,681 | 102,631 | |||||||||||||||||||
| Outflows | (5,090) | (8,196) | (15,858) | (17,743) | |||||||||||||||||||
| Distributions | (6,171) | (3,512) | (19,292) | (11,277) | |||||||||||||||||||
| Market valuation | 5,627 | 15,462 | 15,140 | 15,028 | |||||||||||||||||||
| Other | (2,531) | 2,526 | (6,547) | (6,196) | |||||||||||||||||||
| Change | 17,930 | 25,606 | 42,124 | 82,443 | |||||||||||||||||||
| Balance, ending | $ | 580,665 | $ | 539,441 | $ | 580,665 | $ | 539,441 | |||||||||||||||
Fee Revenues
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Infrastructure | $ | 335 | $ | 311 | $ | 957 | $ | 898 | |||||||||||||||
| Renewable power and transition | 234 | 159 | 603 | 461 | |||||||||||||||||||
| Private equity | 110 | 120 | 329 | 357 | |||||||||||||||||||
| Real estate | 256 | 248 | 835 | 719 | |||||||||||||||||||
| Credit | 455 | 372 | 1,251 | 1,036 | |||||||||||||||||||
| Total Fee Revenues | $ | 1,390 | $ | 1,210 | $ | 3,975 | $ | 3,471 | |||||||||||||||
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Infrastructure
Summary of Key Financial and Operating Measures
The following charts provide the Fee-Bearing Capital of our Infrastructure investment strategy as at September 30, 2025, and December 31, 2024, and Fee Revenues for the three months ended September 30, 2025 and 2024.
Fee-Bearing Capital Fee Revenues
AS AT SEP 30, 2025 AND DEC 31, 2024 (BILLIONS) FOR THE THREE MONTHS ENDED SEP 30 (MILLIONS)
The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.
Fee-Bearing Capital
| AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Long-term private funds | $ | 46,284 | $ | 45,738 | |||||||
| Permanent capital and perpetual strategies | 54,795 | 51,312 | |||||||||
| Total Fee-Bearing Capital | $ | 101,079 | $ | 97,050 | |||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | 99,637 | $ | 91,187 | $ | 97,050 | $ | 94,635 | |||||||||||||||
| Inflows | 3,266 | 1,904 | 4,595 | 4,367 | |||||||||||||||||||
| Outflows | — | — | — | (11) | |||||||||||||||||||
| Distributions | (1,647) | (528) | (3,380) | (1,839) | |||||||||||||||||||
| Market valuation | (105) | 6,659 | 2,836 | 5,531 | |||||||||||||||||||
| Other | (72) | 2 | (22) | (3,459) | |||||||||||||||||||
| Change | 1,442 | 8,037 | 4,029 | 4,589 | |||||||||||||||||||
| Balance, ending | $ | 101,079 | $ | 99,224 | $ | 101,079 | $ | 99,224 | |||||||||||||||
For the three months ended September 30, 2025
During the three months ended September 30, 2025, Fee-Bearing Capital increased by $1.4 billion or 1% to $101 billion. This increase was predominantly driven by $2.0 billion of inflows in our long-term private funds, $506 million of inflows related to the issuance of debt from BIP, and inflows of $731 million to our complementary perpetual strategies. These increases were partially offset by distributions of $1.6 billion paid by certain perpetual strategies, earlier vintages of our flagship funds and BIP.
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For the nine months ended September 30, 2025
During the nine months ended September 30, 2025, Fee-Bearing Capital increased by $4.0 billion or 4% to $101 billion. The $4.6 billion of inflows were primarily driven by our long-term private funds of $2.1 billion, perpetual strategies of $1.8 billion, and debt issuance from BIP of $689 million. In addition, Fee-Bearing Capital increased by $1.9 billion from a higher market capitalization of BIP due to an increase in its share price and $964 million of favorable market valuations associated with certain perpetual strategies. These increases were partially offset by distributions of $3.4 billion paid to investors in our long-term private funds and perpetual strategies as well as BIP unitholders.
Fee Revenues
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management and advisory fees | |||||||||||||||||||||||
| Long-term private funds | |||||||||||||||||||||||
Flagship funds | $ | 92 | $ | 93 | $ | 274 | $ | 277 | |||||||||||||||
Co-investment and other funds | — | — | — | 6 | |||||||||||||||||||
| 92 | 93 | 274 | 283 | ||||||||||||||||||||
| Perpetual strategies | |||||||||||||||||||||||
BIP1 | 104 | 110 | 303 | 293 | |||||||||||||||||||
Co-investment and other funds | 44 | 32 | 125 | 95 | |||||||||||||||||||
| 148 | 142 | 428 | 388 | ||||||||||||||||||||
| Catch-up fees | — | 1 | — | 1 | |||||||||||||||||||
| Transaction and advisory fees | 15 | 1 | 15 | 5 | |||||||||||||||||||
| Total management and advisory fees | 255 | 237 | 717 | 677 | |||||||||||||||||||
Incentive distributions2 | 80 | 74 | 240 | 221 | |||||||||||||||||||
| Total Fee Revenues | $ | 335 | $ | 311 | $ | 957 | $ | 898 | |||||||||||||||
1.BIP Fee-Bearing Capital as at September 30, 2025 is $33.0 billion (December 31, 2024 – $31.9 billion) and includes $5.6 billion of net debt (December 31, 2024 - $4.9 billion).
2.Consists solely of incentive distributions earned from BIP.
For the three months ended September 30, 2025
Fee Revenues increased by $24 million or 8% for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. This increase was predominantly driven by $12 million from our complementary perpetual strategies attributable to strong fundraising and valuation increases, partially offset by $6 million of lower Fee Revenues from BIP as a result of a lower share price in the period. In addition, Fee Revenues benefited from $14 million of higher transaction and advisory fees associated with our flagship infrastructure funds and an increase in incentive distributions of $6 million during the period due to a 6% increase in BIP's quarterly dividend.
For the nine months ended September 30, 2025
Fee Revenues increased by $59 million or 7% for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase was primarily driven by $30 million of higher Fee Revenues due to capital raised and deployed from certain perpetual strategies and $10 million related to BIP as a result of a higher share price during the period. In addition, Fee Revenues benefited from $10 million of higher transaction and advisory fees associated with our flagship infrastructure funds and an increase in incentive distributions of $19 million due to a 6% increase in BIP's quarterly dividend. These increases were partially offset by a $6 million decrease in Fee Revenues as the prior period reflected higher fees from certain complementary strategies.
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Segment Earnings
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Segment Revenues | $ | 255 | $ | 237 | $ | 717 | $ | 677 | |||||||||||||||
| Segment Expenses | |||||||||||||||||||||||
| Compensation and benefits | (61) | (59) | (185) | (164) | |||||||||||||||||||
| Other operating expenses | (21) | (15) | (66) | (57) | |||||||||||||||||||
| Segment Earnings | $ | 173 | $ | 163 | $ | 466 | $ | 456 | |||||||||||||||
For the three months ended September 30, 2025
Segment Earnings increased by $10 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by our complementary perpetual strategies, partially offset by higher Segment Expenses as we continue to scale our business.
For the nine months ended September 30, 2025
Segment Earnings increased by $10 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was due to higher Segment Revenues primarily driven by growth in our perpetual strategies, partially offset by higher Segment Expenses as we continue to scale our business.
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Renewable Power and Transition
Summary of Key Financial and Operating Measures
The following charts provide the Fee-Bearing Capital of our Renewable Power and Transition investment strategy as at September 30, 2025, and December 31, 2024, and Fee Revenues for the three months ended September 30, 2025 and 2024.
Fee-Bearing Capital Fee Revenues
AS AT SEP 30, 2025 AND DEC 31, 2024 (BILLIONS) FOR THE THREE MONTHS ENDED SEP 30 (MILLIONS)
The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.
Fee-Bearing Capital
| AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Long-term private funds | $ | 42,103 | $ | 34,813 | |||||||
| Permanent capital and perpetual strategies | 26,586 | 23,044 | |||||||||
| Total Fee-Bearing Capital | $ | 68,689 | $ | 57,857 | |||||||
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | 64,385 | $ | 51,703 | $ | 57,857 | $ | 52,363 | |||||||||||||||
| Inflows | 4,759 | 767 | 9,206 | 4,928 | |||||||||||||||||||
| Outflows | — | — | — | — | |||||||||||||||||||
| Distributions | (379) | (291) | (1,804) | (1,194) | |||||||||||||||||||
| Market valuation | 880 | 2,123 | 3,712 | 2,340 | |||||||||||||||||||
| Other | (956) | 3,754 | (282) | (381) | |||||||||||||||||||
| Change | 4,304 | 6,353 | 10,832 | 5,693 | |||||||||||||||||||
| Balance, ending | $ | 68,689 | $ | 58,056 | $ | 68,689 | $ | 58,056 | |||||||||||||||
During the three months ended September 30, 2025, Fee-Bearing Capital increased by $4.3 billion or 7% to $69 billion. The increase was driven by inflows of $4.2 billion attributable to follow on closes of the second vintage of our flagship global transition fund and $443 million associated with certain co-investment vehicles and complementary strategies. Additionally, Fee-Bearing Capital increased by $880 million from a higher market capitalization of BEP due to an increase in its share price during the period. These increases were partially offset by $956 million related to the paydown of net recourse debt at BEP and the impact of foreign exchange on certain of our perpetual strategies as well as $379 million of distributions to BEP's unitholders and investors of our perpetual strategies.
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For the nine months ended September 30, 2025
During the nine months ended September 30, 2025, Fee-Bearing Capital increased by $10.8 billion or 19% to $69 billion. This increase was predominantly driven by inflows of $5.4 billion for subsequent closes within the second vintage of our flagship global transition fund, $2.2 billion of fundraising and capital deployments within our long-term as well as permanent and perpetual fund strategies, and $1.6 billion from fundraising for the first close of the catalytic transition fund. In addition, Fee-Bearing Capital increased by $3.7 billion predominantly from a higher market capitalization of BEP due to an increase in its share price during the period. These increases were partially offset by $1.8 billion of distributions to BEP's unitholders and investors in our long-term private funds and perpetual strategies.
Fee Revenues
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management and advisory fees | |||||||||||||||||||||||
| Long-term private funds | |||||||||||||||||||||||
Flagship funds | $ | 88 | $ | 61 | $ | 244 | $ | 182 | |||||||||||||||
Co-investment and other funds | 5 | 1 | 11 | 2 | |||||||||||||||||||
| 93 | 62 | 255 | 184 | ||||||||||||||||||||
| Perpetual strategies | |||||||||||||||||||||||
BEP1 | 57 | 59 | 161 | 157 | |||||||||||||||||||
Co-investment and other funds | 10 | 6 | 28 | 13 | |||||||||||||||||||
| 67 | 65 | 189 | 170 | ||||||||||||||||||||
| Catch-up fees | 37 | — | 46 | 2 | |||||||||||||||||||
| Transaction and advisory fees | 1 | — | 4 | 8 | |||||||||||||||||||
| Total management and advisory fees | 198 | 127 | 494 | 364 | |||||||||||||||||||
Incentive distributions2 | 36 | 32 | 109 | 97 | |||||||||||||||||||
| Total Fee Revenues | $ | 234 | $ | 159 | $ | 603 | $ | 461 | |||||||||||||||
1.BEP Fee-Bearing Capital as at September 30, 2025 is $24.3 billion (December 31, 2024 – $21.5 billion) and includes net debt of $4.2 billion (December 31, 2024 - $3.9 billion).
2.Consists solely of incentive distributions earned from BEP.
For the three months ended September 30, 2025
Fee Revenues increased by $75 million, or 47% for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. Fees from our long-term private funds increased by $31 million as a result of $27 million of incremental fees from subsequent closes of the second vintage of our flagship global transition fund and $4 million from the first close of our catalytic transition fund. Fees from our perpetual strategies increased $2 million, driven by $4 million of higher fees from complementary strategies offset by $2 million of lower fees earned from BEP due to a decrease in its average market capitalization relative to the prior period. In addition, incremental catch-up fees of $37 million were earned from the subsequent closes of the latest vintage of our global transition fund. Incentive distributions from BEP increased by $4 million due to a 5% increase in distributions compared to the prior period.
For the nine months ended September 30, 2025
Fee Revenues increased by $142 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. Total management and advisory fees increased by $130 million anchored by long-term private funds which generated $67 million of higher fee revenues from subsequent closes of the second vintage of our flagship global transition fund, partially offset by $6 million of lower fee revenues from older vintages of certain long-term private funds. In addition, our perpetual strategies earned $19 million of higher fee revenues primarily driven by an increase of $15 million from certain of our complementary strategies and $4 million of higher fee revenues from BEP as a result of a higher average market capitalization in the current period. Catch-up fees increased by $44 million as a result of subsequent closes on the second vintage of our global transition fund and catalytic transition fund, which were partially offset by $4 million of lower transaction and advisory fees in the current period. In addition, incentive distributions from BEP increased by $12 million due to a 5% increase in distributions compared to the prior period.
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Segment Earnings
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Segment Revenues | $ | 198 | $ | 127 | $ | 494 | $ | 364 | |||||||||||||||
| Segment Expenses | |||||||||||||||||||||||
| Compensation and benefits | (44) | (32) | (123) | (91) | |||||||||||||||||||
| Other operating expenses | (19) | (7) | (46) | (27) | |||||||||||||||||||
| Segment Earnings | $ | 135 | $ | 88 | $ | 325 | $ | 246 | |||||||||||||||
For the three months ended September 30, 2025
Segment Earnings increased by $47 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was due to higher Segment Revenues predominantly driven by incremental revenues as a result of strong fundraising for the second vintage of our flagship global transition fund and perpetual funds. These increases were partially offset by higher Segment Expenses to support the scaling of our business.
For the nine months ended September 30, 2025
Segment Earnings increased by $79 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by additional closes of the second vintage of our flagship global transition fund and inflows from perpetual funds resulting in incremental fee revenues. These increases were partially offset by higher Segment Expenses to support the scaling of our business.
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Private Equity
Summary of Key Financial and Operating Measures
The following charts provide the Fee-Bearing Capital of our Private Equity investment strategy as at September 30, 2025, and December 31, 2024, and Fee Revenues for the three months ended September 30, 2025 and 2024.
Fee-Bearing Capital Fee Revenues
AS AT SEP 30, 2025 AND DEC 31, 2024 (BILLIONS) FOR THE THREE MONTHS ENDED SEP 30 (MILLIONS)
The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.
Fee-Bearing Capital
| AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Long-term private funds | $ | 38,403 | $ | 37,123 | |||||||
| Permanent capital and perpetual strategies | 7,939 | 8,067 | |||||||||
| Total Fee-Bearing Capital | $ | 46,342 | $ | 45,190 | |||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | 43,153 | $ | 40,305 | $ | 45,190 | $ | 38,849 | |||||||||||||||
| Inflows | 3,356 | 870 | 4,422 | 2,210 | |||||||||||||||||||
| Outflows | — | — | — | — | |||||||||||||||||||
| Distributions | (264) | (439) | (818) | (651) | |||||||||||||||||||
| Market valuation | 869 | 244 | 969 | 873 | |||||||||||||||||||
| Other | (772) | 2,738 | (3,421) | 2,437 | |||||||||||||||||||
| Change | 3,189 | 3,413 | 1,152 | 4,869 | |||||||||||||||||||
| Balance, ending | $ | 46,342 | $ | 43,718 | $ | 46,342 | $ | 43,718 | |||||||||||||||
For the three months ended September 30, 2025
During the three months ended September 30, 2025, Fee-Bearing Capital increased by $3.2 billion or 7% to $46 billion. Inflows of $3.4 billion in the period were primarily driven by certain of our long-term private funds and co-investment vehicles within our complementary strategies. In addition, market valuation increases of $869 million were driven by BBU due to a higher share price in the period. These increases were partially offset by $264 million of distributions from co-investment vehicles, other long-term private funds, and BBU as well as $772 million related to changes in fee-basis for certain co-investment vehicles.
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For the nine months ended September 30, 2025
During the nine months ended September 30, 2025, Fee-Bearing Capital increased by $1.2 billion or 3% to $46 billion. The increase was primarily driven by inflows of $4.4 billion associated with certain long-term private funds and co-investments made within our complementary strategies. In addition, market valuation increases of $969 million were primarily driven by BBU due to a higher share price during the period. These increases were partially offset by other changes associated with write-downs from earlier vintages of our flagship funds and co-investment vehicles resulting in a decrease of $1.5 billion. In addition, changes in other include to $1.9 billion from the impact of changes in fee-basis and foreign exchange on certain co-investment vehicles and lower corporate debt at BBU. Distributions of $818 million were driven by our fourth flagship fund, other long-term private funds, and BBU.
Fee Revenues
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management and advisory fees | |||||||||||||||||||||||
| Long-term private funds | |||||||||||||||||||||||
Flagship funds | $ | 39 | $ | 41 | $ | 117 | $ | 122 | |||||||||||||||
| Other long-term funds | 44 | 45 | 130 | 136 | |||||||||||||||||||
Co-investment and other funds | 2 | 3 | 6 | 8 | |||||||||||||||||||
| 85 | 89 | 253 | 266 | ||||||||||||||||||||
| Perpetual strategies | |||||||||||||||||||||||
BBU1 | 25 | 23 | 68 | 67 | |||||||||||||||||||
| 25 | 23 | 68 | 67 | ||||||||||||||||||||
| Catch-up fees | — | — | — | 6 | |||||||||||||||||||
| Transaction and advisory fees | — | 8 | 8 | 18 | |||||||||||||||||||
| Total Fee Revenues | $ | 110 | $ | 120 | $ | 329 | $ | 357 | |||||||||||||||
1.BBU Fee-Bearing Capital as at September 30, 2025 was $7.9 billion (December 31, 2024 – $8.1 billion) and includes net debt of $1.1 billion (December 31, 2024 - $2.1 billion).
For the three months ended September 30, 2025
Fee Revenues decreased by $10 million or 8% for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. This decrease was primarily due to $4 million of lower fee revenues associated with earlier vintages of our flagship funds and complementary strategies as a result of the end of their investment periods and realizations. In addition, the prior period included $8 million of transaction and advisory fees. These decreases were partially offset by $2 million of higher fee revenues from BBU as a result of a higher share price in the period.
For the nine months ended September 30, 2025
Fee Revenues decreased by $28 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. This decrease was primarily due to a $8 million decrease in fees from certain other long-term private funds and complementary strategies and $5 million lower fee revenues from our early vintages of our flagship funds due to the end of the investment period. Furthermore, catch-up and transaction and advisory fees decreased by $16 million as the prior period reflected higher catch-up fees from the sixth vintage of our flagship fund and higher transaction and advisory fee revenue.
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Segment Earnings
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Segment Revenues | $ | 108 | $ | 120 | $ | 321 | 0 | $ | 357 | ||||||||||||||
| Segment Expenses | |||||||||||||||||||||||
Compensation and benefits | (58) | (58) | (172) | (179) | |||||||||||||||||||
Other | (20) | (19) | (63) | (54) | |||||||||||||||||||
| Segment Earnings | $ | 30 | $ | 43 | $ | 86 | $ | 124 | |||||||||||||||
For the three months ended September 30, 2025
Segment Earnings decreased by $13 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The decrease in Segment Earnings was primarily due to lower Segment Revenues as the prior period included higher transaction and advisory fees.
For the nine months ended September 30, 2025
Segment Earnings decreased by $38 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. Segment Earnings were lower in the current period as Segment Revenues reflected lower management fees from long-term private funds as a result of realizations and distributions as well as higher transaction and advisory fees and catch-up fees recognized in the prior period.
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Real Estate
Summary of Key Financial and Operating Measures
The following charts provide the Fee-Bearing Capital of our Real Estate investment strategy as at September 30, 2025, and December 31, 2024, and Fee Revenues for the three months ended September 30, 2025 and 2024.
Fee-Bearing Capital Fee Revenues
AS AT SEP 30, 2025 AND DEC 31, 2024 (BILLIONS) FOR THE THREE MONTHS ENDED SEP 30 (MILLIONS)
The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.
Fee-Bearing Capital
| AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Long-term private funds | $ | 72,616 | $ | 69,689 | |||||||
| Permanent capital and perpetual strategies | 29,175 | 23,940 | |||||||||
| Total Fee-Bearing Capital | $ | 101,791 | $ | 93,629 | |||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | 101,775 | $ | 92,997 | $ | 93,629 | $ | 93,444 | |||||||||||||||
| Inflows | 1,474 | 2,756 | 13,742 | 6,164 | |||||||||||||||||||
| Outflows | (10) | (160) | (242) | (351) | |||||||||||||||||||
| Distributions | (2,121) | (629) | (5,040) | (2,395) | |||||||||||||||||||
| Market valuation | (24) | (1,030) | (27) | (1,972) | |||||||||||||||||||
| Other | 697 | (142) | (271) | (1,098) | |||||||||||||||||||
| Change | 16 | 795 | 8,162 | 348 | |||||||||||||||||||
| Balance, ending | $ | 101,791 | $ | 93,792 | $ | 101,791 | $ | 93,792 | |||||||||||||||
For the three months ended September 30, 2025
During the three months ended September 30, 2025, Fee-Bearing Capital was flat at $102 billion. Inflows of $1.5 billion were primarily driven by $745 million of fundraising from our complementary strategies, $467 million of opportunistic debt repayments by our permanent capital vehicle, and $262 million from our flagship funds. These increases were offset by $2.1 billion of distributions from BPG, flagship funds, and other long-term private funds and perpetual strategies. In addition, other changes of $697 million partially reflects the impact of foreign exchange on certain long-term private funds as well as various other movements.
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For the nine months ended September 30, 2025
During the nine months ended September 30, 2025, Fee-Bearing Capital increased by $8.2 billion, or 9% to $102 billion. These increases were predominantly driven by $7.9 billion of inflows across the fifth vintage of our flagship fund, other co-investment capital, and capital deployments across other flagship funds. In addition, inflows of $4.0 billion attributable to the opportunistic repayment of debt within BPG and $1.8 billion of inflows attributable to certain long-term private funds and complementary strategies. This increase was partially offset by $5.0 billion of distributions from BPG, flagship funds and other long-term private funds. In addition, other changes of $271 million were as a result of lower valuations within an earlier vintage flagship fund as well as the net impact of foreign exchange.
Fee Revenues
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management and advisory fees | |||||||||||||||||||||||
| Long-term private funds | |||||||||||||||||||||||
Flagship funds | $ | 127 | $ | 114 | $ | 381 | $ | 341 | |||||||||||||||
Co-investment and other funds | 54 | 54 | 165 | 162 | |||||||||||||||||||
| 181 | 168 | 546 | 503 | ||||||||||||||||||||
| Perpetual strategies | |||||||||||||||||||||||
BPG1 | 49 | 54 | 151 | 143 | |||||||||||||||||||
Co-investment and other funds | 25 | 18 | 65 | 56 | |||||||||||||||||||
| 74 | 72 | 216 | 199 | ||||||||||||||||||||
| Catch-up fees | 1 | 8 | 73 | 17 | |||||||||||||||||||
| Total Fee Revenues | $ | 256 | $ | 248 | $ | 835 | $ | 719 | |||||||||||||||
1.BPG Fee-Bearing Capital (of which BPY represents substantially all of the balance) as at September 30, 2025 is $18.5 billion (December 31, 2024 – $16.6 billion).
For the three months ended September 30, 2025
During the three months ended September 30, 2025, Fee Revenues increased by $8 million or 3% relative to the three months ended September 30, 2024. The increase was primarily driven by $15 million of higher fees earned from the fifth vintage of our flagship fund, which benefited from strong fundraising in 2025. In addition, an increase of $7 million was noted from certain complementary perpetual strategies. This increase was partially offset by $7 million of lower catch-up fees in the current period, $5 million of lower fee revenues from BPG, as well as $2 million of lower fees from earlier vintages of our flagship funds.
For the nine months ended September 30, 2025
During the nine months ended September 30, 2025, Fee Revenues increased by $116 million or 16% relative to the nine months ended September 30, 2024. This increase was driven by $54 million of higher Fee Revenues predominantly from the latest vintage of our flagship fund partially offset by $14 million of lower Fee Revenues from our earlier flagship fund vintages due to realizations. In addition, Fee Revenues from BPG and other perpetual strategies increased by $17 million as a result of the aforementioned growth in Fee-Bearing Capital. Furthermore, Fee Revenues include higher catch-up fees of $56 million primarily from follow-on closes for our fifth flagship fund.
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Segment Earnings
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Segment Revenues | $ | 254 | $ | 248 | $ | 829 | $ | 719 | |||||||||||||||
| Segment Expenses | |||||||||||||||||||||||
| Compensation and benefits | (85) | (87) | (274) | (261) | |||||||||||||||||||
| Other operating expenses | (30) | (29) | (91) | (86) | |||||||||||||||||||
| Segment Earnings | $ | 139 | $ | 132 | $ | 464 | $ | 372 | |||||||||||||||
For the three months ended September 30, 2025
Segment Earnings increased by $7 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues associated with higher revenues from our fifth flagship fund.
For the nine months ended September 30, 2025
Segment Earnings increased by $92 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues associated additional closes of our fifth flagship fund, partially offset by higher Segment Expenses due to scaling of our business.
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Credit
Summary of Key Financial and Operating Measures
The following charts provide the Fee-Bearing Capital of our Credit investment strategy as at September 30, 2025, and December 31, 2024, and Fee Revenues for the three months ended September 30, 2025 and 2024.
Fee-Bearing Capital Fee Revenues
AS AT SEP 30, 2025 AND DEC 31, 2024 (BILLIONS) FOR THE THREE MONTHS ENDED SEP 30 (MILLIONS)
The following provides explanations of significant movements in Fee-Bearing Capital for the periods then ended.
Fee-Bearing Capital
| AS AT SEPTEMBER 30, AND DECEMBER 31, (MILLIONS) | 2025 | 2024 | |||||||||
| Long-term private funds | $ | 78,575 | $ | 74,697 | |||||||
| Permanent capital and perpetual strategies | 109,483 | 102,193 | |||||||||
| Liquid strategies | 74,706 | 67,925 | |||||||||
| Total Fee-Bearing Capital | $ | 262,764 | $ | 244,815 | |||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance, beginning | $ | 253,785 | $ | 237,643 | $ | 244,815 | $ | 177,707 | |||||||||||||||
| Inflows | 13,240 | 13,029 | 36,716 | 84,962 | |||||||||||||||||||
| Outflows | (5,080) | (8,036) | (15,616) | (17,381) | |||||||||||||||||||
| Distributions | (1,760) | (1,625) | (8,250) | (5,198) | |||||||||||||||||||
| Market valuation | 4,007 | 7,466 | 7,650 | 8,256 | |||||||||||||||||||
| Other | (1,428) | (3,826) | (2,551) | (3,695) | |||||||||||||||||||
| Change | 8,979 | 7,008 | 17,949 | 66,944 | |||||||||||||||||||
| Balance, ending | $ | 262,764 | $ | 244,651 | $ | 262,764 | $ | 244,651 | |||||||||||||||
For the three months ended September 30, 2025
During the three months ended September 30, 2025, Fee-Bearing Capital increased by $9.0 billion or 4% to $263 billion, driven by $4.8 billion of capital deployed within our perpetual and liquid credit strategies, insurance capital inflows from BWS of $4.8 billion, and $3.6 billion attributable to fundraising from long-term private funds and capital deployed across our partner managers and complementary strategies. In addition, higher market valuations across our long-term private funds, liquid credit and perpetual strategies increased Fee-Bearing Capital by $4.0 billion. These increases were partially offset by $2.8 billion of insurance capital outflows in BWS due to maturities of annuities and $2.2 billion of redemptions within certain of our liquid and perpetual strategies. In addition, our partner managers and other complementary strategies returned capital to clients which further impacted Fee-Bearing Capital by $1.8 billion. Other changes partially relate to foreign exchange revaluation impacting various perpetual and liquid strategies.
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For the nine months ended September 30, 2025
During the nine months ended September 30, 2025, Fee-Bearing Capital increased by $17.9 billion or 7% to $263 billion, primarily due to $17.2 billion of capital deployed within other long-term private funds and perpetual and liquid credit strategies, $15.5 billion of insurance capital inflows from BWS, $2.4 billion of capital raised within our partner managers, and $1.6 billion of fundraising from our real estate and infrastructure debt strategies. In addition, we recognized $7.7 billion of market valuation increases associated with our liquid and perpetual strategies which further increased Fee-Bearing Capital. These increases were partially offset by $8.0 billion of outflows primarily due to maturities of annuities within insurance capital and $7.6 billion of redemptions within certain of our liquid and perpetual strategies. In addition, distributions of $6.2 billion from our other long-term private funds and complementary strategies, and $2.0 billion from our partner managers further decreased Fee-Bearing Capital. Credit changes in other partially relate to foreign exchange revaluation impacting various perpetual and liquid strategies.
Fee Revenues
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Management and advisory fees | |||||||||||||||||||||||
| Long-term private funds | $ | 268 | $ | 192 | $ | 722 | $ | 568 | |||||||||||||||
Permanent and perpetual strategies | 120 | 117 | 336 | 289 | |||||||||||||||||||
Liquid strategies1 | 67 | 62 | 193 | 178 | |||||||||||||||||||
| Transaction and advisory fees | — | 1 | — | 1 | |||||||||||||||||||
Total Fee Revenues2 | $ | 455 | $ | 372 | $ | 1,251 | $ | 1,036 | |||||||||||||||
1.Represents open-end funds within our credit strategies, and Oaktree's investment in a fixed income manager, as well as in publicly listed securities.
2.Across the various categories, Fee-Bearing Capital from BWS as at September 30, 2025 was $101 billion which generated $171 million of Fee Revenues under the investment management agreement for the nine months ended September 30, 2025 (September 30, 2024 - Fee-Bearing Capital of $89 billion and Fee Revenues of $114 million).
For the three months ended September 30, 2025
Fee Revenues increased by $83 million or 22% for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase was attributable to $80 million of incremental fee revenues from our partner managers predominantly from our partnership with Castlelake. In addition, fees from perpetual and liquid strategies increased by $8 million as a result of higher Fee-Bearing Capital driven by capital deployed across these strategies. These increases were offset by $4 million of lower fee revenues across various complementary strategies.
For the nine months ended September 30, 2025
Fee Revenues increased by $215 million or 21% for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. Fees from our long-term private funds increased by $154 million primarily due to higher fees earned in our partner managers and other complementary strategies. In addition, fees from permanent and perpetual strategies increased by $47 million as a result of higher Fee-Bearing Capital driven by the AEL Mandate, and capital deployed across our private credit strategies. Liquid strategies earned higher fee revenues of $15 million as a result of net inflows and valuation changes increasing Fee-Bearing Capital.
Segment Earnings
| FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Segment Revenues | $ | 431 | $ | 371 | $ | 1,181 | 0 | $ | 1,019 | ||||||||||||||
| Segment Expenses | |||||||||||||||||||||||
Compensation and benefits | (170) | (165) | (509) | (480) | |||||||||||||||||||
Other | (73) | (67) | (205) | (191) | |||||||||||||||||||
| Segment Earnings | $ | 188 | $ | 139 | $ | 467 | $ | 348 | |||||||||||||||
For the three months ended September 30, 2025
Segment Earnings increased $49 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues as a result of incremental earnings from Castlelake, partially offset by higher Segment Expenses as a result of growth in the business.
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For the nine months ended September 30, 2025
Segment Earnings increased $119 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was driven by higher Segment Revenues primarily as a result of incremental earnings from Castlelake relative to the prior period, partially offset by higher Segment Expenses as a result of growth in the business.
Reconciliation of U.S. GAAP to Non-GAAP Measures
Reconciliations of Distributable Earnings, Fee-Related Earnings and Fee Revenues to the most directly comparable financial measures calculated and presented in conformity with U.S. GAAP are presented below. In addition to net income and revenue, management assesses the performance of its business based on these non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, net income or other financial measures presented in conformity with U.S. GAAP.
Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings
The following presents a reconciliation of net income to Fee-Related Earnings and Distributable Earnings for the three and nine months ended September 30, 2025 and 2024.
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net Income | $ | 692 | $ | 537 | $ | 1,783 | $ | 1,428 | |||||||||||||||
| Add or subtract the following: | |||||||||||||||||||||||
Provision for taxes(a) | 78 | 96 | 228 | 309 | |||||||||||||||||||
Depreciation and amortization(b) | 30 | 4 | 44 | 11 | |||||||||||||||||||
Carried interest allocations(c) | (112) | (55) | (51) | 13 | |||||||||||||||||||
Carried interest allocation compensation(c) | (20) | 38 | 142 | 82 | |||||||||||||||||||
Other income and expenses(d) | 97 | 69 | 207 | 117 | |||||||||||||||||||
Interest expense(e) | 26 | 8 | 76 | 17 | |||||||||||||||||||
Interest and dividend revenue(e) | (31) | (34) | (93) | (117) | |||||||||||||||||||
Other revenues(f) | (143) | (141) | (455) | (313) | |||||||||||||||||||
Share of income from equity method investments(g) | (110) | (61) | (349) | (194) | |||||||||||||||||||
Fee-related earnings of equity method investments at our share(g) | 132 | 87 | 341 | 235 | |||||||||||||||||||
Compensation costs recovered from affiliates(h) | 121 | 95 | 250 | 184 | |||||||||||||||||||
Other adjustments(i) | (6) | 1 | 5 | 7 | |||||||||||||||||||
| Fee-Related Earnings | $ | 754 | $ | 644 | $ | 2,128 | $ | 1,779 | |||||||||||||||
Investment and other income (net of interest expense)(j) | (6) | 51 | 41 | 118 | |||||||||||||||||||
Equity-based compensation expense(k) | 11 | 8 | 36 | 30 | |||||||||||||||||||
Cash taxes(l) | (98) | (84) | (277) | (213) | |||||||||||||||||||
| Distributable Earnings | $ | 661 | $ | 619 | $ | 1,928 | $ | 1,714 | |||||||||||||||
(a)This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of BAM.
(b)This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings as well as certain capital depreciation costs recharged from BAM's affiliates.
(c)These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense. Unrealized carried interest allocations and associated compensation expense are non-cash in nature. Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized.
(d)This adjustment removes other income and expenses associated with fair value changes for consolidated entities and funds.
(e)This adjustment removes interest and charges paid or received by consolidated entities and funds.
(f)This adjustment removes other revenues earned that are non-cash in nature.
(g)These adjustments remove our share of equity method investments' earnings, including items (a) to (f) above and include its share of equity method investments' Fee-Related Earnings.
(h)This item adds back compensation costs that will be borne by affiliates.
(i)This adjustment adds base management fees earned from funds that are eliminated upon consolidation and other items.
(j)This adjustment adds back other income associated with our portion of partly owned subsidiaries’ investment income, realized carried interest, interest income received and interest expense.
(k)This adjustment adds back equity-based compensation costs.
(l)Represents the impact of cash taxes paid by the business.
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Reconciliation of Revenues to Fee Revenues
The following presents our reconciliation of base management and advisory fees to Fee Revenues for the three and nine months ended presented.
FOR THE PERIODS ENDED SEPTEMBER 30, (MILLIONS) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Base management and advisory fees | $ | 859 | $ | 768 | $ | 2,511 | $ | 2,163 | |||||||||||||||
Incentive fees(a) | 116 | 106 | 349 | 318 | |||||||||||||||||||
Fee Revenues from equity method investments(b) | 414 | 336 | 1,131 | 997 | |||||||||||||||||||
Other adjustments(c) | 1 | — | (16) | (7) | |||||||||||||||||||
| Fee Revenues | $ | 1,390 | $ | 1,210 | $ | 3,975 | $ | 3,471 | |||||||||||||||
(a)This adjustment adds incentive distributions that are included in Fee Revenues.
(b)This adjustment adds management fees at 100% ownership.
(c)This adjustment involves base management fees earned from funds that are eliminated upon consolidation and other items.
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Fee Revenues by Geography
The majority of our revenues are earned in the U.S. The following tables set out Fee Revenues disaggregated by investment strategy and geography.
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total | ||||||||||||||||||||||||||||||||
| Management and advisory fees, net | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | 46 | $ | 38 | $ | 51 | $ | 153 | $ | 373 | $ | 661 | ||||||||||||||||||||||||||
| Canada | 86 | 59 | 19 | 11 | 8 | 183 | ||||||||||||||||||||||||||||||||
| United Kingdom | 57 | 64 | 21 | 44 | 70 | 256 | ||||||||||||||||||||||||||||||||
| Other | 66 | 37 | 19 | 48 | 4 | 174 | ||||||||||||||||||||||||||||||||
| Incentive distributions | 80 | 36 | — | — | — | 116 | ||||||||||||||||||||||||||||||||
| $ | 335 | $ | 234 | $ | 110 | $ | 256 | $ | 455 | $ | 1,390 | |||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total | ||||||||||||||||||||||||||||||||
| Management and advisory fees, net | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | 143 | $ | 97 | $ | 158 | $ | 508 | $ | 1,025 | $ | 1,931 | ||||||||||||||||||||||||||
| Canada | 274 | 165 | 54 | 39 | 26 | 558 | ||||||||||||||||||||||||||||||||
| United Kingdom | 150 | 146 | 61 | 132 | 162 | 651 | ||||||||||||||||||||||||||||||||
| Other | 150 | 86 | 56 | 156 | 38 | 486 | ||||||||||||||||||||||||||||||||
| Incentive distributions | 240 | 109 | — | — | — | 349 | ||||||||||||||||||||||||||||||||
| $ | 957 | $ | 603 | $ | 329 | $ | 835 | $ | 1,251 | $ | 3,975 | |||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total | ||||||||||||||||||||||||||||||||
| Management and advisory fees, net | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | 51 | $ | 30 | $ | 60 | $ | 155 | $ | 305 | $ | 601 | ||||||||||||||||||||||||||
| Canada | 102 | 42 | 18 | 6 | 8 | 176 | ||||||||||||||||||||||||||||||||
| United Kingdom | 51 | 32 | 23 | 70 | 44 | 220 | ||||||||||||||||||||||||||||||||
| Other | 33 | 23 | 19 | 17 | 15 | 107 | ||||||||||||||||||||||||||||||||
| Incentive distributions | 74 | 32 | — | — | — | 106 | ||||||||||||||||||||||||||||||||
| $ | 311 | $ | 159 | $ | 120 | $ | 248 | $ | 372 | $ | 1,210 | |||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total | ||||||||||||||||||||||||||||||||
| Management and advisory fees, net | ||||||||||||||||||||||||||||||||||||||
| United States of America | $ | 150 | $ | 74 | $ | 183 | $ | 449 | $ | 845 | $ | 1,701 | ||||||||||||||||||||||||||
| Canada | 284 | 121 | 58 | 18 | 19 | 500 | ||||||||||||||||||||||||||||||||
| United Kingdom | 140 | 98 | 66 | 203 | 129 | 636 | ||||||||||||||||||||||||||||||||
| Other | 103 | 71 | 50 | 49 | 43 | 316 | ||||||||||||||||||||||||||||||||
| Incentive distributions | 221 | 97 | — | — | — | 318 | ||||||||||||||||||||||||||||||||
| $ | 898 | $ | 461 | $ | 357 | $ | 719 | $ | 1,036 | $ | 3,471 | |||||||||||||||||||||||||||
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Liquidity and Capital Resources
Liquidity
BAM maintains sufficient liquidity at all times, enabling it to participate in investment opportunities as they arise, withstand sudden adverse changes in economic conditions, and sustain distributions. Typical cash flow activities include earning fees on assets managed, paying operating expenses, and paying cash dividends to shareholders. From time to time, BAM may draw on a revolving credit facility to bridge timing differences between the receipt and outflow of funds. It may also issue additional debt to finance growth through strategic investments. The primary sources of liquidity, which we refer to as corporate liquidity, consist of cash, short-term financial assets, as well as the undrawn portions of the revolving credit facilities.
As at September 30, 2025, corporate liquidity for BAM is $2.6 billion. This consists of $1.2 billion in cash and short term financial assets that are convertible to cash within twelve months, as well as $1.4 billion in undrawn credit facilities. This liquidity can be deployed for use without any material tax consequences to support BAM in funding strategic transactions as well as seeding new investment products.
•On September 9, 2025, BAM completed its second debt offering, issuing approximately $750 million of 30-year bonds at a fixed annual coupon of 6.077%. BAM previously issued approximately $750 million of 10-year bonds at a fixed annual coupon of 5.795% on April 24, 2025.
•On August 29, 2024, a $750 million five-year revolving credit facility was established through bilateral agreements with a group of lenders. During the three months ended September 30, 2025, BAM increased the facility from $750 million to $1.1 billion. U.S. dollar draws are subject to the U.S. Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points. As at September 30, 2025, the facility is undrawn.
•On November 8, 2022 a $300 million revolving credit facility was established, with BN as lender. U.S. dollar draws are subject to the U.S. Base Rate or SOFR plus a margin of 165 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 165 basis points. As at September 30, 2025, the facility is undrawn.
The following table presents deployable capital of our asset management business:
| Corporate | Group(a) | ||||||||||||||||||||||
| AS AT (MILLIONS) | September 30 | December 31 | September 30 | December 31 | |||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Cash and financial assets, net | $ | 1,201 | $ | 792 | $ | 60,921 | $ | 54,329 | |||||||||||||||
| Undrawn committed credit facilities | 1,350 | 1,050 | 9,385 | 7,928 | |||||||||||||||||||
| Corporate liquidity | $ | 2,551 | $ | 1,842 | — | — | |||||||||||||||||
| Uncalled private fund commitments | 103,966 | 91,463 | |||||||||||||||||||||
| Total deployable capital | $ | 174,272 | $ | 153,720 | |||||||||||||||||||
(a) Group deployable capital consists of: (1) corporate liquidity of BAM, consolidated funds, and the perpetual affiliates, and (2) uncalled private fund commitments, which are third-party commitments available for drawdown in the private funds of BAM.
Uncalled Fund Commitments
The following presents our Uncalled Fund Commitments as of September 30, 2025 by period and December 31, 2024:
AS AT SEPTEMBER 30, (MILLIONS) | 2025 | 2026 | 2027 | 2028 | 2029 + | Total 2025 | Dec. 2024 | ||||||||||||||||||||||||||||||||||
| Infrastructure | $ | 190 | $ | — | $ | — | $ | 208 | $ | 9,057 | $ | 9,455 | $ | 12,848 | |||||||||||||||||||||||||||
| Renewable power and transition | — | — | — | 753 | 23,778 | 24,531 | 21,015 | ||||||||||||||||||||||||||||||||||
| Private equity | 310 | — | 73 | 458 | 10,795 | 11,636 | 11,360 | ||||||||||||||||||||||||||||||||||
| Real estate | 344 | 1,929 | — | — | 21,103 | 23,376 | 15,645 | ||||||||||||||||||||||||||||||||||
| Credit | 1,092 | 1,808 | 950 | 96 | 31,022 | 34,968 | 30,595 | ||||||||||||||||||||||||||||||||||
| $ | 1,936 | $ | 3,737 | $ | 1,023 | $ | 1,515 | $ | 95,755 | $ | 103,966 | $ | 91,463 | ||||||||||||||||||||||||||||
Approximately $55 billion of the Uncalled Fund Commitments are currently not earning fees, but will become fee-bearing once the capital is invested. Once invested, we expect these commitments will earn approximately $550 million of additional Fee Revenues.
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Capital Resources
Clawback Obligations
Performance allocations are subject to clawback to the extent that the performance allocations received to date with respect to a fund exceed the amount due to BAM based on cumulative results of that fund. The amounts and nature of our clawback obligations are described in Note 2 “Summary of Significant Accounting Policies” of the condensed consolidated financial statements of BAM as at September 30, 2025, and December 31, 2024, and for the three months ended September 30, 2025, and 2024.
Capital Requirements
Certain U.S. and non-U.S. entities of BAM are subject to various investment advisor and other financial regulatory rules and requirements that may include minimum net capital requirements. These requirements have been met for the nine months ended September 30, 2025.
Exposures to Financial Instruments
As discussed elsewhere in this report, we utilize various financial instruments in our business to manage risk and make better use of our capital. The fair values of these instruments that are reflected on our balance sheets are disclosed in Note 6 “Fair Value Measurements of Financial Instruments” to the condensed consolidated financial statements of BAM as at September 30, 2025, and December 31, 2024 and for the three and nine months ended September 30, 2025, and 2024.
Off-Balance Sheet Arrangements
BAM may from time to time enter into guarantees given in respect of co-investments in which there is carried interest. The amount guaranteed is up to the carried interest amount paid to the General Partner, net of taxes. No known amounts are currently due or owed under these guarantees.
Related Party Transactions
BAM enters into a number of related party transactions with BN and other affiliates. See Note 15 “Related Party Transactions” of the condensed consolidated financial statements of BAM as at September 30, 2025, and December 31, 2024 and for the three and nine months ended September 30, 2025 and 2024.
BAM Dividends
The dividends paid by BAM on outstanding securities for the quarters ended September 30, 2025, and 2024 are summarized in the table below.
| Distribution per Security | |||||||||||
| 2025 | 2024 | ||||||||||
| Per Class A Share and Class B Share | $ | 0.4375 | $ | 0.3800 | |||||||
Subsidiary Public Issuers
BAM Finance LLC (the "U.S. Finco") is a Delaware limited liability company formed on March 26, 2025 and is a subsidiary of the Company. As at September 30, 2025, the U.S. Finco had no debt outstanding.
BAM Finance (Canada) Inc. (the "Canadian Finco") was incorporated on March 26, 2025 under the Business Corporations Act (Ontario) and is a subsidiary of the Company. As at September 30, 2025, the Canadian Finco had no debt outstanding.
The U.S. Finco and Canadian Finco (together the “Finance Debt Issuers”) have no independent activities, assets or operations other than in connection with any securities that they may issue. Any debt securities issued by the Finance Debt Issuers will be fully and unconditionally guaranteed as to payment of principal, premium (if any), interest and certain other amounts by the Company.
During the nine months ended September 30, 2025, BAM's $750 million senior notes due 2035 and 2055, respectively, were issued directly from BAM.
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The following tables contain summarized financial information of the Company, U.S. Finco, Canadian Finco and non-guarantor subsidiaries:
AS AT AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025(4) (MILLIONS) | BAM(1) | U.S. Finco | Canadian Finco | Other subsidiaries of BAM(2) | Consolidating Adjustments(3) | BAM Consolidated | |||||||||||||||||||||||||||||
| Revenues | $ | 28 | $ | — | $ | — | $ | 2,424 | $ | (1,200) | $ | 1,252 | |||||||||||||||||||||||
| Net income (loss) attributable to shareholders | 730 | — | — | 1,103 | (1,109) | 724 | |||||||||||||||||||||||||||||
| Total assets | 10,557 | — | — | 44,269 | (38,305) | 16,521 | |||||||||||||||||||||||||||||
| Total liabilities | 2,096 | — | — | 11,251 | (7,500) | 5,847 | |||||||||||||||||||||||||||||
| Preferred shares redeemable non-controlling interest | — | — | — | 1,562 | — | 1,562 | |||||||||||||||||||||||||||||
AS AT DECEMBER 31, 2024 AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | BAM(1) | U.S. Finco | Canadian Finco | Other subsidiaries of BAM(2) | Consolidating Adjustments(3) | BAM Consolidated | |||||||||||||||||||||||||||||
| Revenues | $ | 577 | $ | — | $ | — | $ | 1,310 | $ | (770) | $ | 1,117 | |||||||||||||||||||||||
| Net income (loss) attributable to shareholders | 491 | — | — | 773 | (720) | 544 | |||||||||||||||||||||||||||||
| Total assets | 13,558 | — | — | 36,641 | (36,042) | 14,157 | |||||||||||||||||||||||||||||
| Total liabilities | 4,806 | — | — | 4,679 | (6,519) | 2,966 | |||||||||||||||||||||||||||||
| Preferred shares redeemable non-controlling interest | — | — | — | 2,103 | — | 2,103 | |||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025(4) (MILLIONS) | BAM(1) | U.S. Finco | Canadian Finco | Other subsidiaries of BAM(2) | Consolidating Adjustments(3) | BAM Consolidated | |||||||||||||||||||||||||||||
| Revenues | $ | 51 | $ | — | $ | — | $ | 5,756 | $ | (2,384) | $ | 3,423 | |||||||||||||||||||||||
| Net income (loss) attributable to shareholders | 2,179 | — | — | 1,856 | (2,110) | 1,925 | |||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 (MILLIONS) | BAM(1) | U.S. Finco | Canadian Finco | Other subsidiaries of BAM(2) | Consolidating Adjustments(3) | BAM Consolidated | |||||||||||||||||||||||||||||
| Revenues | $ | 1,137 | $ | — | $ | — | $ | 4,069 | $ | (2,289) | $ | 2,917 | |||||||||||||||||||||||
| Net income (loss) attributable to shareholders | 1,367 | — | — | 2,236 | (2,123) | 1,480 | |||||||||||||||||||||||||||||
1. This column accounts for investments in all subsidiaries of BAM under the equity method.
2. This column accounts for investments in all subsidiaries of BAM other than the Finance Debt Issuers, on a combined basis.
3. This column includes the necessary amounts to present BAM on a consolidated basis.
4. Reflects the completion of the 2025 Arrangement.
Recent Developments
On October 1, 2025, BAM acquired a stake in Angel Oak, a leading asset manager specializing in innovative mortgage and consumer products, for total consideration of approximately $149 million. Angel Oak will be accounted for as an equity method investment in accordance with U.S. GAAP.
On October 13, 2025, BAM and BN announced they will acquire all of the remaining common equity interests in the Oaktree business for total consideration of approximately $3 billion. After giving effect to the proposed transaction, Brookfield will own 100% of Oaktree. BAM will acquire, an incremental 26% interest in Oaktree’s Fee-Related Earnings, carried interest from certain funds (net of BN’s 33% royalty), and partner manager interest in 17Capital and DoubleLine for approximately $1.6 billion. BN will acquire, an incremental 26% interest in Oaktree’s balance sheet investments and the remaining carried interest for approximately $1.4 billion. Oaktree is currently accounted for as an equity method investment and following the close of the transaction, will be consolidated within BAM's financial statements in accordance with U.S. GAAP. We expect this transaction to close in the first half of 2026, subject to regulatory approvals and customary closing conditions.
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Summary of Significant Accounting Policies
Critical Accounting Policies, Critical Accounting Estimates and Judgements
BAM prepares condensed consolidated financial statements in conformity with U.S. GAAP. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates that affect the amounts reported. Management believes that estimates utilized in the preparation of the condensed consolidated financial statements are presented fairly, in all material respects. Such estimates include those used in the valuation of investments and the measurement of deferred tax balances (including valuation allowances) and the determination of control or significant influence. Actual results could differ from those estimates and such differences could be material. BAM believes the following critical accounting policies could potentially produce materially different results of BAM, if underlying assumptions, estimates and/or judgments were to be changed. For a full description of accounting policies, see Note 2 “Summary of Significant Accounting Policies” of the condensed consolidated financial statements of BAM as at September 30, 2025 and December 31, 2024 and for the three and nine months ended September 30, 2025 and 2024.
Equity Method Investments
Investments in which BAM is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. BAM has significant influence over Oaktree and other partner managers and therefore accounts for these investments under the equity method.
The carrying value of equity method investments is determined based on amounts invested by BAM, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received. Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity investments in the condensed consolidated statements of operations. BAM evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.
Refer to Note 4 “Investments” of the condensed consolidated financial statements of BAM for further details of BAM's equity method investments.
Control or Level of Influence
When determining the appropriate basis of accounting for BAM's investees, BAM makes judgments about the degree of influence that it exerts directly or through an arrangement over the investees’ relevant activities. This may include the ability to elect investee directors or appoint management. Control is obtained when BAM has the power to direct the relevant investing, financing and operating decisions of an entity and does so in its capacity as principal of the operations, rather than as an agent for other investors. Operating as a principal includes having sufficient capital at risk in any investee and exposure to the variability of the returns generated as a result of the decisions of BAM as principal. Judgment is used in determining the sufficiency of the capital at risk or variability of returns. In making these judgments, BAM considers the ability of other investors to remove BAM as a manager or general partner in a controlled partnership.
Indicators of Impairment
Judgment is applied when determining whether indicators of impairment exist when assessing the carrying values of BAM's assets, including: the determination of BAM’s ability to hold financial assets; the determination of discount and capitalization rates; and when an asset’s carrying value is above the value derived using publicly traded prices which are quoted in a liquid market.
Income Taxes
BAM makes judgments when determining the future tax rates applicable and identifying the temporary differences. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply during the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the condensed consolidated balance sheet dates.
Carried Interest Allocations - Unrealized
The change in the fair value of investments is a significant input into carried interest allocations - unrealized. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments.
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Fair Value
BAM uses fair value throughout the reporting process. For details of our accounting policies related to fair value refer to Note 2. “Summary of Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Revenue Recognition” in the “Notes to the condensed consolidated financial statements”. The following discussion is intended to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.
The fair value of the investments held by BAM's funds is the primary input to the calculation of certain of our management fees, incentive fees, performance fees and the related compensation we recognize. In the absence of observable market prices, we utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of the investments. For investments where little market activity exists management’s determination of fair value is based on the best information available in the circumstances, which may incorporate management’s own assumptions and involves a significant degree of judgment, and the consideration of a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks.
Management has elected the fair value option for certain equity method investments. Additionally, management is required to measure specific financial instruments at fair value, including debt instruments, equity securities, and freestanding derivatives.
Our primary approach to determining the fair value of our investments is generally the income approach, which estimates fair value based on the present value of expected future cash flows generated by a business. The most commonly used method within this approach is the discounted cash flow method, which incorporates key assumptions about the investment’s projected net earnings or cash flows, discount rate, capitalization rate, and exit multiple.
Alternatively, management uses the market approach as a secondary methodology. This approach primarily relies on valuations of comparable public companies, transactions, or assets, requiring judgment in selecting appropriate comparables. Depending on the specific facts and circumstances of the investment, alternative primary and secondary methodologies may be applied, including option value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability-weighted methods, or recent financing rounds.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
The primary market risk exposure of BAM relates to its role as an asset manager of the publicly listed permanent capital vehicles and the sensitivity of base management fees earned from these affiliates due to movements in their underlying trading price. Specifically, with respect to the market risk related to base management fees earned based on the market capitalization of BEP, BIP and BBU.
Foreign Currency Risk
We have very limited exposure to foreign currency risk as a majority of our private funds are denominated in USD. This means that a majority of the Fee Revenues that we earn are paid in USD, irrespective of the local currency of our underlying investment base. Additionally, the majority of our revenues are earned in the U.S. We may from time to time reduce foreign currency risk by employing hedging techniques, including using forward contracts to reduce exposure to future changes in exchange rates when a meaningful amount of capital has been invested in foreign currencies.
Interest Rate Risk
BAM has interest rate exposure through balances held with affiliates, as well as its internal revolving credit facility with BN and its external $1.1 billion revolving credit facility, of which none is drawn as at September 30, 2025. BAM earns interest income on amounts held on deposit with BN and incurs interest expense on its external and internal revolving credit facility borrowings. Interest income and expenses on these balances are at variable rates. BAM's $750 million senior notes due 2035 have a fixed annual coupon of 5.795%. BAM's $750 million senior notes due 2055 have a fixed annual coupon of 6.077%
Credit Risk
Investors in our private funds make capital commitments to these vehicles via subscription agreements. When a private fund makes an investment, these capital commitments are then satisfied by our investors via capital contributions as prescribed under these subscription agreements. Investors in our private funds may default on their capital commitment obligations, which could have an adverse impact on our earnings or result in other negative implications to our businesses such as the requirement to deploy our own capital to cover such obligations. This impact would be magnified if the investor that does so is in multiple funds. Given the diversity and creditworthiness of our over 2,400 clients, including some of the world’s largest institutional investors, sovereign wealth funds and pension plans, we are of the view that there is not a material credit risk present in our business.
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ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) are effective at the reasonable assurance level to accomplish their objectives of ensuring that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
No change in our internal control over financial reporting (as such term is defined in Rules 13a–15(f) and 15d–15(f) under the Exchange Act) occurred during our most recent quarter, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
For a discussion of BAM's legal proceedings, see the section entitled “Litigation” appearing in Note 16, “Commitments and Contingencies” in BAM's condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.
ITEM 1A. RISK FACTORS
For a discussion of our potential risks and uncertainties, see the information under “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.
ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Share Repurchases in the Third Quarter of 2025
Under BAM's current share repurchase program, 37,123,295 Class A Shares can be repurchased and as at September 30, 2025, there were 34,843,352 Class A Shares remaining for further repurchases.
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Under our current repurchase program, BAM is authorized to repurchase Class A Shares from time to time in open market transactions. The timing, manner, price and amount of any Class A Share repurchases will be determined by BAM in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. The current repurchase program expires on January 12, 2026 or until the maximum approved number of shares has been purchased. The program does not require BAM to repurchase any specific number of Class A Shares, and the program may be suspended, extended, modified or discontinued at any time.
| Issuer Purchases of Class A Shares (amounts in millions, except share and per share amounts) | ||||||||||||||
| Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||
| July 1, 2025 to July 31, 2025 | — | $ | — | — | 36,012,752 | |||||||||
| August 1, 2025 to August 31, 2025 | — | $ | — | — | 36,012,752 | |||||||||
| September 1, 2025 to September 30, 2025 | 1,169,400 | $ | 58.70 | 1,169,400 | 34,843,352 | |||||||||
| 1,169,400 | 1,169,400 | |||||||||||||
ITEM 3: DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
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ITEM 6. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
| Exhibit Number | Exhibit Description | |||||||
| 4.2 | Second Supplemental Indenture, dated as of September 9, 2025, among Brookfield Asset Management Ltd., Computershare Trust Company of Canada and Computershare Trust Company, National Association (incorporated by reference to Exhibit 4.2 of BAM’s Form 8-K filed with the SEC on September 9, 2025). | |||||||
| 22.1* | List of Subsidiary Guarantors. | |||||||
| 31.1* | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a). | |||||||
| 31.2* | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a). | |||||||
| 32.1** | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
| 32.2** | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
| 101.INS* | Inline XBRL Instance Document. | |||||||
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
____________________
* Filed herewith.
** Furnished herewith.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 7, 2025
| Brookfield Asset Management Ltd. | |||||||||||
| /s/ Hadley Peer Marshall | |||||||||||
| Name: | Hadley Peer Marshall | ||||||||||
| Title: | Chief Financial Officer | ||||||||||
| (Principal Financial Officer and Authorized Signatory) | |||||||||||
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Brookfield Asst
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