Brookfield Asset Management Ltd.: Form 10-Q for the period ended Sep 30, 2025

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.

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.
• 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.

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:

• 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.

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.

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:

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.

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.

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.

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.

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.

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.

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:

57

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.

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.

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:

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.

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),
• 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.

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%.
• 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:

The changes in Fee-Bearing Capital are set out in the following table for the three months ended September 30, 2025:

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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.

The changes in Fee-Bearing Capital are set out in the following table for the nine months ended September 30, 2025:

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.

Distributable Earnings

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.

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.

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

Fee Revenues

69

Infrastructure

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.

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

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.

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

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.

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.

Segment Earnings

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.

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.

Renewable Power and Transition

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.

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

For the three months ended September 30, 2025

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.

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

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.

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.

Segment Earnings

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.

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.

Private Equity

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.

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

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.

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

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.

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.

Segment Earnings

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.

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.

Real Estate

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.

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

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.

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

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.

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.

Segment Earnings

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.

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.

Credit

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.

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

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.

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

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 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.

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.

(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.

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.

(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.

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.

86

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:

(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:

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.

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.

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.

The following tables contain summarized financial information of the Company, U.S. Finco, Canadian Finco and non-guarantor subsidiaries:

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.

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.

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.

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.

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.

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.