Brookfield Asset Management Ltd.: Form 10-Q for the period ended Mar 31, 2026

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.

Amounts and percentages presented throughout our discussion and analysis of financial condition and results of operations may reflect rounded results in millions (unless otherwise indicated) and consequently, totals may not appear to sum. In addition, illustrative charts may not be presented at scale.

The changes from current period compared to prior period may be deemed to be not meaningful and are designated as “NM” within this discussion and analysis.

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, energy, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy.

We offer a range of alternative investment products to over 2,500 institutional clients around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors which also continues to grow with approximately 60,000 clients. We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them. Our deep operating expertise, global reach and access to large-scale flexible capital enable us to identify attractive investment opportunities and make investments on a proprietary basis in sizable, premier assets and businesses across geographies and asset classes that we believe few others can.

To do this, we leverage our team of over 5,800 investment and asset management professionals and employees, including over 300 client service professionals across 32 global offices, to ensure that the business exceeds our clients’ service expectations. We also have a dedicated team of approximately 150 people that are focused on distributing and developing catered products to the private wealth channel. Our disciplined investment approach and strong track record have been the foundation and driver of our growth. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.

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 59 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, including Fee-Bearing Capital, Fee Revenues, Fee-Related Earnings and Distributable Earnings.

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”.

Business Environment

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.

In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 1.3% for the quarter ended March 31, 2026, compared to an increase of 0.5% for the quarter ended December 31, 2025. U.S. inflation increased to 3.3% as of March 31, 2026, compared to 2.7% as of December 31, 2025. The U.S. unemployment rate saw a modest decrease to 4.3% in March 2026 from 4.5% in December 2025. As of April 2026, the International Monetary Fund projected U.S. real GDP growth of 2.5% in 2026 and 2.2% in 2027, compared with 2.1% in 2025, while noting continued uncertainty related to inflation, energy prices, geopolitical developments, trade tensions and the pace of artificial-intelligence-related productivity gains.

The U.S. Federal Reserve (the “Fed”) maintained the Federal Funds target range at 3.50%–3.75% in March 2026, following a series of rate cuts in late 2025, and signaled a data-dependent approach amid elevated macro uncertainty. The Fed highlighted balanced risks to both inflation and the labor market, with geopolitical developments and energy prices adding to uncertainty. The latest Summary of Economic Projections indicates inflation expectations have been revised modestly higher, while growth and labor market forecasts remain broadly stable. The Fed continues to guide toward a gradual easing path, with only one rate cut expected in 2026, reflecting persistent inflation pressures and a more cautious policy stance. During the quarter ended March 31, 2026, the 10-year government bond yields increased 0.15% in the U.S.

Outside the U.S., GDP growth in the Eurozone remained subdued over the first quarter of 2026, with ECB indicators pointing to continued but modest expansion early in the year, albeit with a weaker outlook due to energy shocks and heightened uncertainty. The European Central Bank kept its key deposit rate unchanged over the quarter, following a series of cuts beginning in mid-2025, while maintaining a cautious, data-dependent stance amid persistent services inflation and geopolitical uncertainty. In China, real GDP is estimated to have grown by 4.8% for the quarter ended March 31, 2026, up from 4.5% in the last quarter of 2025, driven by strong exports and early-year policy support. The 1-year prime rate set by the People's Bank of China was 3.00% as of March 31, 2026, unchanged from December 31, 2025.

For the quarter ended March 31, 2026, the S&P 500 was down by 4.6%, the MSCI Europe Index was down 1.6%, the MSCI Asia Index was down 0.6%, and the MSCI World Index decreased by 3.9%. During the quarter ended March 31, 2026, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) widened by 11 basis points, and the high yield credit spreads were up by 44 basis points.

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.

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) energy, (iii) private equity, (iv) real estate, and (v) credit.

1. Includes Oaktree employees that will become BAM employees following the completion of the Oaktree Acquisition and approximately 1,500 fully-dedicated Brookfield operating employees, that are integral to the business, including individuals focused on our core investment strategies and those undertaking various corporate activities.

Infrastructure

Overview

• We are one of the world’s largest investment managers in infrastructure, with $255 billion of AUM and $109 billion of Fee-Bearing Capital as of March 31, 2026.
• 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 sectors. We partner closely with management teams to enable long-term success through operational and other improvements.
• We have approximately 230 investment and asset management professionals globally that are focused on our infrastructure strategy, supported by approximately 64,000 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 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 $28.5 billion as of March 31, 2026.
• We manage Brookfield Super-Core Infrastructure Partners, 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.

Energy

Overview

• We are one of the largest investors in energy investments, with $142 billion of AUM and $72 billion of Fee-Bearing Capital as of March 31, 2026.
• 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 energy remains favorable and we

expect to continue to advance our substantial pipeline of energy opportunities on behalf of our clients and managed assets.

• We have approximately 175 investment and asset management professionals globally that are focused on our energy strategy, supported by approximately 20,100 operating employees in the energy 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 $23.1 billion as of March 31, 2026.

Across our energy 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 $160 billion of AUM and $48 billion of Fee-Bearing Capital as of March 31, 2026.
• 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 260 investment and asset management professionals globally that are focused on our private equity strategy, supported by approximately 136,900 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 (“BMEP”), 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 Corporation (“BBUC”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBUC is listed on the NYSE and TSX and had a market capitalization of $7.0 billion as of March 31, 2026.
• We also manage Brookfield Private Equity Fund (“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 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 $277 billion of AUM and $103 billion of Fee-Bearing Capital as of March 31, 2026.
• 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 2,150 investment and asset management professionals and employees that are focused on generating superior returns across our real estate strategies, supported by approximately 23,900 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 $20 billion of Fee-Bearing Capital in Brookfield Property Group (“BPG”) as of March 31, 2026, 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 retail, multifamily, logistics, office, 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 retail, multifamily, office, 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, 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:

• 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;
• High-quality assets with operational upside across multifamily, alternative living, life sciences and logistics sectors globally; and
• Office properties in key gateway cities in the U.S., Canada, the U.K., Germany, Australia, Brazil and India.

Credit

Overview

• We are one of the world’s largest and most experienced credit managers, with $365 billion of AUM and $282 billion of Fee-Bearing Capital as of March 31, 2026.
• We seek to provide flexible, specialized capital solutions to borrowers and delivering attractive risk-adjusted returns to our clients across a range of debt strategies.
• We have approximately 1,800 investment and asset management professionals globally, including Oaktree employees that will become BAM employees following completion of the Oaktree Acquisition, 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 partner managers where we have significant non-controlling ownership stakes include:
• Oaktree, one of the world’s premier credit investors;
• Castlelake, a private credit investor specializing in asset based, aviation, and specialty finance;
• Angel Oak, a mortgage and consumer credit manager with a vertically integrated origination platform;
• LCM, a leader in European consumer and small and medium-sized enterprise loan markets;
• Primary Wave, a leading music rights investor; and
• 17Capital, a leader in NAV finance.

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 and energy 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, 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 infrastructure, energy, 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 Statements of Operations

The following table summarizes the condensed consolidated statements of operations for BAM for the three months ended March 31, 2026 and 2025:

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BAM primarily generates revenue from fees earned pursuant to contractual arrangements with funds, publicly traded vehicles, and investors, as well as transaction and advisory fees. These fees include base management fees, incentive fees, and certain advisory fees. Base management fees are long-term, recurring in nature, and correspond to fundraising activity, NAVs of certain of our funds, and market capitalizations of our publicly traded vehicles, specifically BIP, BEP and BBUC. 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 allocations assuming certain investment returns are achieved, as well as incentive management fees in certain of our structures where we are entitled to contractual fees from an investment fund based on achieving prescribed investment returns.

The composition of our revenues will vary based on market conditions and the cyclical nature of our businesses. Carried interest allocations generated by our funds and associated carried interest compensation are driven by the performance of the underlying investments, as well as overall market conditions. Fair values are affected by changes in the fundamentals of our investments, the industries in which they operate, the overall economy, and other market conditions. The impact of fair values of our underlying investments throughout market cycles may result in material increases or decreases to carried interest generated, net of expenses.

Expenses primarily include employee base compensation, bonuses, and share-based compensation. Period over period changes in employee base compensation and bonuses generally result from changes in headcount and annual salary changes. Share-based awards are granted in the first quarter of each year and generally vest over 5 years. Equity settled compensation awards vest on a graded basis over the vesting period and cash settled share-based compensation awards are recorded at fair value quarterly based on the trading price of 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 March 31, 2026 and 2025

Net income for the three months ended March 31, 2026 was $586 million, of which $617 million was attributable to common stockholders. This compares to net income of $507 million for the three months ended March 31, 2025, of which $581 million was attributable to common stockholders.

Revenues

Revenues for the three months ended March 31, 2026 were $1.3 billion, which represents an increase of $257 million or 24% compared to $1.1 billion of revenue for the three months ended March 31, 2025.

Base Management and Advisory Fees

Base management and advisory fees for the three months ended March 31, 2026 were $860 million, which represents an increase of $23 million or 3% compared to the three months ended March 31, 2025. Management fee revenues increased by $44 million from a higher trading price of BIP, BEP, and BBUC. In addition, the increase was driven by $15 million attributable to fundraising for our infrastructure and energy perpetual strategies, $11 million attributable to growth of our mandate with BWS, and $8 million from capital raised for the second vintage of our global transition flagship fund. These increases were partially offset by $63 million of catch-up fees earned from the fifth vintage of our real estate flagship fund in the prior period, as well as $19 million of lower fees from as a result of realizations from earlier vintages of our real estate flagship and certain infrastructure funds. The remaining increase was attributable to fundraising and growth across various long-term private funds and complementary strategies.

Incentive Fees

Incentive fees for the three months ended March 31, 2026, were $130 million, an increase of $13 million or 11% from the three months ended March 31, 2025. This increase was a result of an increase in BEP and BIP's quarterly dividend over the prior period of 5% and 6% respectively.

Carried Interest Allocations

Carried interest allocations are a performance fee arrangement which is earned from those arrangements where BAM has a general partner capital interest and is entitled to a disproportionate allocation of investment income. Each of these general partners is generally entitled to a carried interest that allocates to it 20% of the net profits realized by the limited partners from the fund’s investment subject to the return of contributed capital and a preferred return of typically 8% per annum to the limited partners. At the end of each reporting period, the Company calculates the balance of accrued carried interest that would be due to BAM for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized.

Realized carried interest allocations were $16 million for the three months ended March 31, 2026, which were predominantly due to dispositions within certain private equity fund strategies.

The unrealized carried interest allocations of $96 million for the three months ended March 31, 2026 represents an increase of $94 million compared to the three months ended March 31, 2025. The gross increase of $128 million compared to the prior year reflects changes in fund valuations associated with the first and second vintages of our global transition flagship fund for $33 million, various private equity fund strategies, including the sixth vintage of our private equity flagship fund, for $60 million, and various earlier vintages of our real estate flagship funds for $25 million. This was partially offset by a $32 million decrease primarily driven by lower unrealized carried interest generated in the fifth vintage of our infrastructure flagship fund relative to the prior period.

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 $141 million for the three months ended March 31, 2026, compared to $86 million for the three months ended March 31, 2025.

The following table presents the carried interest in new funds, and related performance compensation by investment strategy.

1. Carried interest generated within our partner managers in Credit is presented within the investment balance of our partner managers rather than accrued carried interest and as a result is excluded from the table above.

The following table presents the change in accrued carried interest in new funds by investment strategy for the three months ended March 31, 2026.

1. Carried interest generated within our partner managers in Credit is presented within the investment balance of our partner managers rather than accrued carried interest and as a result is excluded from the table above.

Interest and Dividend Revenue

Interest and dividend revenue for the three months ended March 31, 2026 was $21 million, which represents an increase of $8 million compared to the three months ended March 31, 2025. The increase was primarily due to higher interest income earned on our deposit with BN.

Other Revenues

Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Services Agreement, fund expense recharges, and incentive management fees earned on certain funds. Share-based and performance-based award expenses that are recoverable from BN are recognized in other revenues with the offsetting expense recognized in compensation and benefits, and carried interest allocation compensation, respectively. Other revenues were $207 million for the three months ended March 31, 2026, an increase of $102 million compared to the three months ended March 31, 2025. The increase was primarily attributable to higher recoveries of $79 million related to share and performance-based compensation, as a result of newly issued share based compensation awards that are recoverable as well as the modification of BN DSU awards during the period.

Expenses

Total expenses for the three months ended March 31, 2026 were $733 million, an increase of $231 million or 46% compared to the three months ended March 31, 2025.

Compensation and Benefits

Compensation and benefits for the three months ended March 31, 2026 was $355 million, which represents an increase of $96 million compared to the three months ended March 31, 2025. The increase was primarily attributable to higher share-based compensation expense of $79 million related to our share and performance-based awards. The increase was the result of new grants issued as well as the partial settlement of BN DSU awards 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 $98 million, which represents an increase of $20 million compared to the three months ended March 31, 2025. This increase was driven by higher operating costs from our growing business and one-time adjustments related to the 2025 Arrangement in the prior period.

Carried Interest Allocation Compensation

Compensation expenses related to carried interest allocation compensation was $211 million for the three months ended March 31, 2026, which represents a change of $65 million compared to the three months ended March 31, 2025. This was primarily driven by higher relative valuations across certain infrastructure funds compared to the prior year. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds was $68 million during the year.

Interest Expense

Interest expense for three months ended March 31, 2026 was $37 million, which represents an increase of $34 million compared to the three months ended March 31, 2025. This was primarily driven by BAM's increased borrowings from our debt offerings relative to the prior period.

Interest Expense of Consolidated Funds

Interest expense of consolidated funds for the three months ended March 31, 2026 was $10 million, which was primarily driven by borrowings made by BSI II and BMEP in which BAM holds a sufficient interest to require the consolidation of the funds.

Other Income (Expenses), net

Other income, net for the three months ended March 31, 2026 was $10 million, compared to Other expenses, net of $69 million in the prior period. This gross increase was driven by revaluation of investments transferred to consolidated funds, as well as a mark-to-market loss of $19 million on our investment in BSREP III during the three months ended March 31, 2026 compared to a loss of $40 million during the three months ended March 31, 2025.

Other Income, net of Consolidated Funds

Other income, net of consolidated funds for the three months ended March 31, 2026 was $11 million compared to $14 million in the prior year. The decrease is mainly driven by the fair value changes of investments held by BPE, BMEP and BSI II 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 $70 million compared to $58 million in the prior year, an increase of $12 million. The increase was driven by higher unrealized carry from Primary Wave of $12 million and incremental earnings from the acquisition of Concora of $11 million, partially offset by $11 million of lower earnings from Oaktree.

Income Tax Expense

Income tax expense was $110 million for the three months ended March 31, 2026, which represents an increase of $35 million compared to the three months ended March 31, 2025. The increase in income tax expense was predominantly driven by a higher 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 $89 million for the three months ended March 31, 2026 primarily due to lower valuations in certain mature real estate funds.

Net Loss Attributable to Redeemable Non-Controlling Interest in Consolidated Funds

Net loss attributable to redeemable non-controlling interest in consolidated funds reflects net income or loss generated by the respective fund that is allocated to non-controlling interest based on the substantive contractual terms of the funds governing agreements that specify the allocation of income or loss, such as fees allocable to BAM. Net loss attributable to redeemable non-controlling interest in consolidated funds was $6 million for the three months ended March 31, 2026.

Net Income Attributable to Non-Controlling Interest in Consolidated Entities

Net income attributable to non-controlling interest in consolidated entities was $69 million for the three months ended March 31, 2026. BAM recognizes carried interest allocations on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest allocations are attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the year.

Net Loss (Income) Attributable to Non-Controlling Interest in 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 or losses earned is attributable to other parties invested in the funds. Net loss attributable to non-controlling interest of consolidated funds was $5 million for the three months ended March 31, 2026.

Balance Sheet Analysis

Condensed Consolidated Balance Sheets

The following table presents the condensed consolidated balance sheets of BAM as of March 31, 2026 and December 31, 2025:

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As of March 31, 2026 and December 31, 2025

Assets

Total assets were $17.9 billion as of March 31, 2026, an increase of $890 million or 5% compared to December 31, 2025.

Cash and Cash Equivalents

Cash and cash equivalents were $1.0 billion as of March 31, 2026, a decrease of $538 million from December 31, 2025. This was largely due to share repurchases of $376 million, distributions of $810 million, and funding of working capital requirements during the three months ended March 31, 2026. The decrease was partially offset by incremental cash deposits from related parties of $400 million.

Accounts Receivable and Other, Net

Accounts receivable and other, net of $440 million primarily consists of receivables from third parties and prepaid expenses. The increase of $107 million from December 31, 2025 was largely driven by timing of the settlement of an investment made by BAM.

Financial Assets

Financial assets of $433 million primarily consists of call options to acquire additional interests in Primary Wave, Castlelake, LCM and Angel Oak in the future and financial instruments associated with various other investments. The increase of $16 million from December 31, 2025 was largely driven by mark-to-market valuation increases on certain call options.

Due from Affiliates

Due from affiliates of $2.9 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 decrease of $341 million from December 31, 2025 was primarily due to a $458 million decrease in recoveries from BN related to the partial settlement of BN DSU awards, partially offset by an increase due to the timing of collection of management fees and recoverable expenses from funds.

Investments

Investments are mainly comprised of our:

• approximate 74% economic interest in Oaktree of $4.7 billion (2025 – $4.7 billion);
• limited partnership interest in BSREP III of $643 million (2025 - $700 million);
• economic interest in Castlelake of $732 million (2025 – $720 million);
• accumulated unrealized carried interest in our mature and new funds of $96 million (2025 - $197 million) and $1.8 billion (2025 - $1.6 billion), respectively;
• approximate 9% (2025 - 11%) economic interest in Pretium of $260 million (2025 - $330 million);
• 44% economic interest in Primary Wave of $282 million (2025 – $261 million);
• 49.9% economic interest in LCM of $221 million (2025 – $221 million);
• 51.3% economic interest in Angel Oak of $139 million (2025 - $133 million); and
• limited partner interests in funds of $329 million (2025 - $368 million) including Pinegrove Fund (2026 – $245 million; 2025 – $230 million), and BGTF II (2026 – $75 million; 2025 – $36 million);

The investment in BSREP III and carried interest generated on mature funds are fully attributable to BN through their preferred shares redeemable non-controlling interest and does not impact net income attributable to common stockholders. Accrued carried interest in new funds, including current funds and open-ended funds, as defined therein, is attributed to BN at 33.3%. The remaining accrued carried interest in new funds, net of associated compensation is attributable to common stockholders.

During the three months ended March 31, 2026, investments decreased by $285 million, $246 million of which were primarily attributable to the sale of GEMS Education and Cherry Parent, LLC to BMEP and BPE, respectively, both of which are consolidated by BAM as of March 31, 2026. Investments further decreased due to changes in value of accumulated unrealized carried interest on mature funds of $99 million and the derecognition of BAM's equity method investment in BPE of $92 million due to consolidation of the fund, partially offset by an increase in accumulated unrealized carried interest on new funds of $211 million.

Investments of Consolidated Funds

Investments of consolidated funds represents investments held in BSI II, BPE and BMEP in which BAM holds a sufficient interest to require the consolidation of the fund. Investments in these consolidated funds are measured at fair value. The increase of $1.9 billion compared to December 31, 2025 was primarily driven by the consolidation of BPE and BMEP during the period.

Intangible assets, net

Intangible assets, net was $229 million as of March 31, 2026 and was recognized upon the completion of the 2025 Arrangement.

Liabilities

Total liabilities were $6.7 billion as of March 31, 2026, a decrease of $35 million or 1% compared to December 31, 2025.

Accounts Payable and Other, Net

Accounts payable and other, net primarily consists of accrued bonus compensation, performance and cash-settled share-based compensation. The decrease of $356 million compared to December 31, 2025 was primarily driven by decreases of $458 million attributable to the partial settlement of BN DSU awards, as well as a decrease of $256 million due to settlement of accrued bonus compensation. This was partially offset by an increase in carried interest allocation compensation.

Financial Liabilities

Financial liabilities of $467 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 $18 million compared to December 31, 2025 reflects the change in value of the various options during the year.

Due to Affiliates

Due to affiliates of $932 million reflects amounts payable to related parties for share and cash-based compensation, as well as for services received in the normal course of business including operating expenses payable. The increase of $212 million or 29% relative to December 31, 2025 was primarily driven by a gross increase of $413 million from related party balances held on deposit by BAM, partially offset by the repayment of a $201 million loan with BWS that was used to fund the initial acquisition of GEMS Education.

Corporate Borrowings

Corporate borrowings of $2.5 billion represents the amount raised from BAM's debt offerings, net of deferred financing costs of $22 million.

Borrowings of Consolidated Funds

Borrowings of consolidated funds represents borrowings used to finance investments within BSI II ($234 million) and BMEP ($217 million) where BAM is required to consolidate the funds due to our economic interests. The decrease of $11 million compared to December 31, 2025 was driven by a decrease in borrowings of BSI II by $228 million, partially offset by an increase in borrowings from the consolidation of BMEP in the current period.

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 $1.3 billion as of March 31, 2026, a decrease of $133 million compared to $1.4 billion as of December 31, 2025. This movement was due to a decrease in unrealized carried interest on mature real estate flagship funds, as well as settlements of amounts owed to BN during the three months ended March 31, 2026.

Redeemable Non-Controlling Interest in Consolidated Funds

Redeemable non-controlling interest in consolidated funds of $1.4 billion represents units held in BPE by BN, BBUC, BWS and third parties. Due to the terms of these units, they are recognized as mezzanine equity and presented separately from non-controlling interest in consolidated funds.

Non-Controlling Interest in Consolidated Entities

Non-controlling interest in consolidated entities was $878 million as of March 31, 2026, an increase of $105 million compared to $773 million as of December 31, 2025. This increase was primarily due to carried interest generated across the latest vintages of our flagship funds of which 33.33% is owed to BN, non-controlling interests associated with our equity-settled share-based compensation and other non-controlling interests associated with various entities within BAM.

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 months ended March 31, 2026 and 2025:

This statement reflects activities within our condensed consolidated operations and therefore excludes activities within non-consolidated entities.

For the three months ended March 31, 2026 and 2025

Operating Activities

During the three months ended March 31, 2026, the Company's operating activities generated cash inflows of $338 million, compared to cash inflows of $114 million in the prior period. Cash flows from operating activities primarily include the receipt of base management and advisory fees, incentive fees, realized carried interest, interest and dividend revenue, and net investment activity within consolidated funds offset by the payment of operating expenses incurred in the normal course of business, including compensation, operating and general and administrative expenses, and income tax payments. Operating cash flows increased by $224 million in the current period relative to the prior period primarily driven by net dispositions from consolidated funds, higher cash generated from fee revenues, and net changes in working capital.

Investing Activities

Net cash inflows from investing activities totaled $160 million, compared to inflows of $235 million in the prior period. Net inflows of $160 million during the three months ended March 31, 2026 were primarily attributable to the partial disposition of our interest in Pretium, cash assumed on the consolidation of BPE, partially offset by investments related to limited partner commitments in funds managed by BAM and affiliates. Net inflows of $235 million for the three months ended March 31, 2025 were primarily attributable to the disposition of our interest in Redwood Evergreen Fund LP.

Financing Activities

Net cash outflows from financing activities totaled $983 million, compared to outflows of $422 million in the prior period. Net cash outflows of $983 million during the three months ended March 31, 2026 were primarily attributable to $809 million of dividend distributions, $376 million of share repurchases, and $206 million of related party loan repayments. These outflows were partially offset by inflows of $400 million in deposits from related parties.

Key Financial and Operating Measures

BAM prepares its financial statements in conformity with U.S. GAAP. This report discloses a number of non-GAAP financial and supplemental financial measures which are utilized in monitoring our asset management business, including for performance measurement, capital allocation and valuation purposes. BAM believes that providing these performance measures is helpful to investors in assessing the overall performance of our asset management business. These non-GAAP financial measures should not be considered as the sole measure of BAM’s performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in conformity with U.S. GAAP financial measures. These non-GAAP financial measures are not standardized financial measures and may not be comparable to similar financial measures used by other issuers. The financial results of BAM includes the asset management activities of Oaktree, an equity accounted affiliate, in its key financial and operating measures for our asset management business. See “Part 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 asset management business. Fee Revenues include base management fees, incentive distributions, performance fees and transaction fees. Fee Revenues exclude carried interest and revenues of consolidated funds, but include Fee Revenues earned by Oaktree. The most directly comparable measure of Fee Revenues disclosed in the financial statements is base management and advisory fees. See “Part 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 may 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 at least approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance back into the business.

Distributable Earnings provides insight into earnings that are available for distribution or to be reinvested by BAM. It is calculated as the sum of its Fee-Related Earnings, realized carried interest, returns from our corporate cash and financial assets, interest expense, and cash taxes, 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 BAM, BN, or their affiliates, either:
• Consolidates for accounting purposes (generally, investments in respect of which Brookfield has a significant economic interest and unilaterally directs day-to-day operating, investing and financing activities), or
• Does not consolidate for accounting purposes but over which Brookfield has significant influence by virtue of one or more attributes (e.g., being the largest investor in the investment, having the largest representation on the investment’s governance body, being the primary manager and/or operator of the investment, and/or having other significant influence attributes),
• 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 and liquid funds, which are calculated at its proportionate economic share of the investment’s NAV.
• All other investments are calculated at Brookfield’s proportionate economic share of the total fair value of the investment taking into account its full capital structure — equity and debt — on a gross asset value basis.

Our methodology for determining AUM differs from the methodology that is employed by other alternative asset managers as well as the methodology for calculating regulatory AUM that is prescribed for certain regulatory filings (e.g., Form ADV and Form PF).

Fee-Bearing Capital

Fee-Bearing Capital represents the capital committed, pledged, or invested in our perpetual affiliates, private funds and liquid strategies that we manage which entitles us to earn Fee Revenues. Fee-Bearing Capital includes both called (“invested”) and uncalled (“pledged” or “committed”) amounts.

When reconciling period amounts, we utilize the following definitions:

• Inflows include capital commitments and contributions to our private funds and liquid strategies, 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 OF MAR 31, 2026 AND DEC 31, 2025 (BILLIONS)

Long-term Private Funds

As of March 31, 2026, we managed approximately $287 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 March 31, 2026, we managed approximately $248 billion of Fee-Bearing Capital across our permanent capital vehicles, perpetual core, and core plus private funds.

On these products, we earn:

• Long-term perpetual base management fees, which are based on the market capitalization or NAV of our permanent capital vehicles and on the NAV of our perpetual private funds.
• Stable incentive distribution fees from BEP and BIP, which are linked to the growth in cash distributions paid to investors above a predetermined hurdle. Both BEP and BIP have a long-standing track record of growing distributions annually within their target range of 5-9%.
• Performance fees from BBUC are based on unit price performance above a prescribed high watermark price, which are not subject to clawback, as well as carried interest on our perpetual private funds.

Liquid Strategies

As of March 31, 2026, we managed approximately $79 billion of Fee-Bearing Capital across our liquid strategies, which included capital that we manage on behalf of our publicly listed funds and separately managed accounts, with a focus on fixed income and equity securities across real estate, infrastructure, and natural resources.

On these products, we earn:

• Base management fees, which are based on committed capital or fund NAV, and
• Performance income based on investment returns above a minimum prescribed return.

Analysis of Key Non-GAAP Financial and Operating Measures

The following section contains a discussion and analysis of key financial and operating measures utilized in managing our business, including for performance measurement, capital allocation, and valuation purposes. For further detail on our non-GAAP and performance measures, please refer to “Part 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 of March 31, 2026 and December 31, 2025:

The changes in Fee-Bearing Capital are set out in the following table for the three months ended March 31, 2026:

63

For the three months ended March 31, 2026

Fee-Bearing Capital was $614 billion as of March 31, 2026 compared to $603 billion as of December 31, 2025, a net increase of $11.1 billion, or 2%:

• Inflows of $19.1 billion include capital commitments and contributions to our long-term private funds and liquid strategies, and issuances from our perpetual affiliates. During the quarter, $3.8 billion of inflows from infrastructure were predominantly driven by co-investment fundraising and inflows to our perpetual strategies. Inflows of $2.1 billion in energy were primarily comprised of fundraising from our perpetual strategies, inflows to our complementary long-term private funds, and debt issuances from BEP. Inflows of $531 million from private equity primarily relate to inflows to our complementary strategies and other long-term private funds. Real estate inflows of $1.4 billion were primarily attributable to the opportunistic repayment of debt from our permanent real estate vehicle, capital deployments and fundraising from our flagship and co-investment vehicles, as well as certain other long-term private funds and complementary strategies. Within our credit strategy, inflows of $11.4 billion were attributable to insurance capital from BWS, fundraising and capital deployed across our liquid strategies and long-term private funds, and fundraising associated with our partner managers.
• Outflows represent distributions and redemptions of capital from liquid and perpetual strategies. During the quarter, outflows of $6.4 billion were primarily due to redemptions within certain of our liquid and perpetual strategies, and insurance capital outflows from BWS.
• 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, $6.5 billion of distributions were primarily driven by $2.8 billion from Oaktree funds, $1.4 billion from our listed affiliates and BPG, $1.3 billion from certain other long-term private funds and perpetual strategies. In addition, distributions included $633 million across our partner managers excluding Oaktree and $476 million from our real estate and infrastructure flagship funds.
• Market valuation includes gains (losses) on portfolio investments, perpetual affiliates and liquid strategies based on market prices. During the quarter, market valuation increases of $4.2 billion were predominantly driven by $2.9 billion attributable to higher market prices of BEP and $1.9 billion as a result of higher market valuations across our liquid credit and perpetual strategies. These increases were partially offset by a decrease of $488 million associated with a lower market price of BIP and BBUC 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, net other movements of $616 million were primarily attributable to real estate changes of $833 million which includes additional NAV from cash repatriation from certain LP investments of BPY as well as the impact of foreign exchange. In addition, energy movements of $631 million were primarily related to a credit facility drawdown by BEP. The changes in real estate and energy were offset by credit which primarily relate to the impact of foreign exchange as well as the partial disposition of our interest in Pretium.

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 (March 31, 2025 – 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 March 31, 2026

Fee Revenues for the three months ended March 31, 2026 were $1.4 billion, an increase of $126 million or 10% compared to the prior period. This increase was predominantly due to an increase in base management fees of $86 million or 7%, driven by $44 million of incremental fee revenue from our listed affiliates as a result of higher share prices of BIP, BEP, and BBUC. Additionally, Fee Revenues were further increased by $48 million of earnings of our partner managers, $17 million attributable to strong fundraising for our infrastructure and energy perpetual strategies, and $11 million attributable to growth of our mandate with BWS. These increases were partially offset by $71 million in lower catch-up fees from the fifth vintage of our flagship real estate fund and the second vintage of our flagship global transition fund and $19 million of lower fees as a result of realizations from earlier vintages of our flagship real estate and infrastructure funds. The remaining increase was attributable to fundraising and growth across various long-term private funds and complementary strategies.

Incentive distributions increased by $13 million or 11% as a result of an increase in BEP and BIP's quarterly dividend over the prior period of 5% and 6%, respectively.

Transaction fees increased by $25 million driven by higher fees from our infrastructure strategy due to co-investment capital raised as well as from certain of our real estate complementary strategies in the current period.

Direct costs increased by $49 million or 8% from the prior period as a result of headcount growth and inflationary increases to support the ongoing growth of our business.

Fee-Related Earnings not attributable to BAM increased by $3 million as a result of higher Fee-Related Earnings from Oaktree.

Distributable Earnings were $702 million for the three months ended March 31, 2026, an increase of $48 million or 7% compared to the prior period. The increase was primarily driven by higher Fee-Related Earnings, partially offset by a decrease in investment and other income due to higher interest expense on our corporate borrowings, lower interest earned on our deposit with BN, and higher cash taxes on Fee-Related Earnings.

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) energy, (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

66

Infrastructure

The following charts provide the Fee-Bearing Capital of our infrastructure investment strategy as of March 31, 2026 and December 31, 2025, and Fee Revenues for the three months ended March 31, 2026 and 2025.

AS OF MAR 31, 2026 AND DEC 31, 2025 (BILLIONS) FOR THE THREE MONTHS ENDED MAR 31 (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 March 31, 2026

During the three months ended March 31, 2026, Fee-Bearing Capital increased by $2.8 billion or 3% to $109 billion. The $3.8 billion of inflows were primarily driven by perpetual strategies of $2.1 billion and long-term private funds of $1.5 billion. Market valuation movements of $143 million were attributable to NAV increases within our perpetual strategies offset by a lower market capitalization of BIP due to decreases in its share price. These increases were partially offset by distributions of $1.1 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 of March 31, 2026 is $34.4 billion (March 31, 2025 – $30.6 billion) and includes $5.4 billion of net debt (March 31, 2025 - $5.2 billion).

2. Consists solely of incentive distributions earned from BIP.

For the three months ended March 31, 2026

Fee Revenues increased by $50 million or 16% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. The increase was primarily driven by $12 million of higher Fee Revenues due to capital raised from our perpetual strategies and $12 million related to BIP as a result of a higher share price relative to the comparative period. In addition, Fee Revenues benefited from $16 million of higher transaction and advisory fees associated with co-investments at our flagship and perpetual strategies. Incentive distributions increased by $7 million due to a 6% increase in BIP's quarterly dividend.

Segment Earnings

For the three months ended March 31, 2026

Segment Earnings increased by $30 million or 21% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by higher transaction and advisory fees associated with co-investments at our flagship and perpetual strategies, fee revenues from BIP as a result of a higher share price during the period, as well as growth in our perpetual strategies. These increases were partially offset by higher Segment Expenses to support the growth of the business.

Energy

The following charts provide the Fee-Bearing Capital of our energy investment strategy as of March 31, 2026 and December 31, 2025, and Fee Revenues for the three months ended March 31, 2026 and 2025.

AS OF MAR 31, 2026 AND DEC 31, 2025 (BILLIONS) FOR THE THREE MONTHS ENDED MAR 31 (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 March 31, 2026

During the three months ended March 31, 2026, Fee-Bearing Capital increased by $4.9 billion or 7% to $72 billion. This increase was predominantly driven by $2.1 billion of inflows of which $861 million was attributable to our long-term private funds, $854 million was driven by our perpetual strategies, and $360 million related to debt issuances from BEP. In addition, market valuation increases of $2.9 billion were 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 $718 million of distributions to BEP's unitholders and investors in our long-term private funds and perpetual strategies. Other movements of $631 million were predominantly due to credit facility drawdowns by BEP.

Fee Revenues

1. BEP Fee-Bearing Capital as of March 31, 2026 is $29.5 billion (March 31, 2025 – $21.4 billion) and includes net debt of $4.9 billion (March 31, 2025 - $4.1 billion).

2. Consists solely of incentive distributions earned from BEP.

For the three months ended March 31, 2026

Fee Revenues increased by $45 million, or 26% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. This increase was primarily driven by our perpetual strategies of which $25 million of higher fee revenues were attributable to BEP as a result of a higher average market capitalization in the current period and $4 million was related to certain perpetual strategies. In addition, long-term private funds generated $23 million of incremental fee revenues from our flagship funds and certain complementary strategies which were partially offset by $11 million of lower fee revenues from earlier vintages of our long-term private funds. Incentive distributions from BEP increased by $6 million due to a 5% increase in distributions compared to the prior period.

Segment Earnings

For the three months ended March 31, 2026

Segment Earnings increased by $23 million or 27% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. The increase in Segment Earnings was primarily attributable to higher Segment Revenues driven by a higher average market capitalization of BEP in the current period as well as growth in our complementary long-term private funds and perpetual strategies. These increases were partially offset by higher Segment Expenses due to higher compensation and benefits as well as operating expenses.

Private Equity

The following charts provide the Fee-Bearing Capital of our private equity investment strategy as of March 31, 2026, and December 31, 2025, and Fee Revenues for the three months ended March 31, 2026 and 2025.

AS OF MAR 31, 2026 AND DEC 31, 2025 (BILLIONS) FOR THE THREE MONTHS ENDED MAR 31 (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 March 31, 2026

During the three months ended March 31, 2026, Fee-Bearing Capital remained flat at $48 billion. Inflows of $531 million were driven by certain long-term private funds as well as our complementary strategies. These inflows were offset by distributions of $334 million primarily from BBUC and our long-term private funds. Market valuation decreases of $177 million were primarily driven by BBUC as a result of a lower share price during the period.

Fee Revenues

1. BBUC Fee-Bearing Capital as of March 31, 2026 was $9.1 billion (March 31, 2025 – $6.8 billion) and includes net debt of $1.4 billion (March 31, 2025 - $1.0 billion).

For the three months ended March 31, 2026

Fee Revenues increased by $19 million or 18% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. This increase was primarily driven by incremental fee revenues from our complementary strategies and a higher share price of BBUC.

Segment Earnings

For the three months ended March 31, 2026

Segment Earnings increased by $4 million or 14% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. The increase in the current period was primarily driven by higher Segment Revenues which reflected higher management fees from complementary strategies as well as higher fees from BBUC as a result of a higher share price. The higher Segment Revenues were offset by higher Segment Expenses driven by higher compensation and benefits as the business continues to scale.

Real Estate

The following charts provide the Fee-Bearing Capital of our real estate investment strategy as of March 31, 2026 and December 31, 2025, and Fee Revenues for the three months ended March 31, 2026 and 2025.

AS OF MAR 31, 2026 AND DEC 31, 2025 (BILLIONS) FOR THE THREE MONTHS ENDED MAR 31 (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 March 31, 2026

During the three months ended March 31, 2026, Fee-Bearing Capital increased by $1.2 billion or 1% to $103 billion. The increase was predominantly driven by $1.4 billion of inflows of which $550 million was attributable to the opportunistic repayment of debt within BPG, $487 million from capital deployments across our complementary strategies and $383 million attributable to our flagship funds and co-investment capital. These increases were partially offset by $1.0 billion of distributions from BPG, earlier vintages of our flagship funds, and other long-term private funds. In addition, other movements of $833 million includes additional NAV from cash repatriation from certain LP investments of BPY as well as the impact of foreign exchange.

Fee Revenues

1. BPG Fee-Bearing Capital (of which BPY represents substantially all of the balance) as of March 31, 2026 is $19.9 billion (March 31, 2025 – $17.9 billion).

For the three months ended March 31, 2026

During the three months ended March 31, 2026, Fee Revenues decreased by $56 million or 18% relative to the three months ended March 31, 2025. This decrease was driven by $66 million of lower catch-up fees as the prior period reflected follow-on closes for our fifth flagship fund. Fee Revenues from our flagship funds decreased by $4 million as incremental fee revenues from the latest vintages of our flagship funds were offset by lower fee revenues from earlier vintages due to realizations. In addition, Fee Revenues from other perpetual strategies increased by $6 million as a result of the aforementioned growth in Fee-Bearing Capital. Transaction and advisory fees of $9 million were realized from certain of our complementary strategies during the period.

Segment Earnings

For the three months ended March 31, 2026

Segment Earnings decreased by $65 million or 35% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. The decrease in Segment Earnings was primarily due to lower Segment Revenues as the prior period reflected higher catch-up fee revenues from the subsequent closes of our fifth flagship fund.

Credit

The following charts provide the Fee-Bearing Capital of our credit investment strategy as of March 31, 2026 and December 31, 2025, and Fee Revenues for the three months ended March 31, 2026 and 2025.

AS OF MAR 31, 2026 AND DEC 31, 2025 (BILLIONS) FOR THE THREE MONTHS ENDED MAR 31 (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 March 31, 2026

During the three months ended March 31, 2026, Fee-Bearing Capital increased by $2.2 billion or 1% to $282 billion, primarily due to $5.7 billion of capital deployed within long-term private funds as well as perpetual and liquid credit strategies, $3.8 billion of insurance capital inflows from BWS, $1.4 billion of capital raised within our partner managers, and $429 million of fundraising from our real estate and infrastructure debt strategies. In addition, we recognized $1.4 billion of market valuation increases associated with our liquid and perpetual strategies as well as certain long-term private funds which further increased Fee-Bearing Capital. These increases were partially offset by $3.4 billion of redemptions within certain of our liquid and perpetual strategies and $3.0 billion of outflows associated with BWS insurance capital. In addition, distributions of $2.7 billion from our long-term private funds and complementary strategies as well as $633 million from our partner managers partially reduced Fee-Bearing Capital. Other movements primarily related to the partial disposition of our interest in Pretium as well as the impact of foreign exchange.

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 of March 31, 2026 was $110 billion which generated $66 million of Fee Revenues under the investment management agreement for the three months ended March 31, 2026 (March 31, 2025 - Fee-Bearing Capital of $96 billion and Fee Revenues of $55 million).

For the three months ended March 31, 2026

Fee Revenues increased by $68 million or 17% for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. Fees from our long-term private funds increased by $49 million primarily due to higher fees earned in our partner managers as well as other complementary strategies. Fees from permanent and perpetual strategies increased by $17 million attributable to growth of our mandate with BWS, and capital deployed across our private credit strategies. In addition, liquid strategies generated incremental fee revenues of $2 million driven by net inflows and positive valuation changes resulting in higher Fee-Bearing Capital.

Segment Earnings

For the three months ended March 31, 2026

Segment Earnings increased $49 million for the three months ended March 31, 2026 relative to the three months ended March 31, 2025. The increase in Segment Earnings was primarily driven by higher Segment Revenues as a result of incremental earnings from our partner managers as well as other complementary strategies. This increase was partially offset by higher operating expenses as well as compensation and benefits as the business continues to scale.

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 months ended March 31, 2026 and 2025.

(a) This adjustment removes the impact of income tax provisions on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of BAM.

(b) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings as well as certain capital depreciation costs recharged from BAM's affiliates.

(c) These adjustments remove the impact of both unrealized and realized carried interest allocations and the associated compensation expense. Carried interest allocations and associated compensation costs are included in Distributable Earnings once realized.

(d) This adjustment removes other income and expenses associated with fair value changes for consolidated entities and funds.

(e) This adjustment removes interest and charges paid or received by consolidated entities and funds.

(f) This adjustment removes other revenues earned that are non-cash in nature.

(g) These adjustments remove our share of equity method investments' earnings, including items (a) to (f) above and include its share of equity method investments' Fee-Related Earnings.

(h) This item adds back compensation costs that will be borne by affiliates.

(i) This 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 months ended March 31, 2026 and 2025.

(a) This adjustment adds incentive distributions and performance fees that are included in Fee Revenues.

(b) This adjustment adds Oaktree management fees at 100% ownership and our proportionate share of earnings from other partner managers excluding Oaktree.

(c) This adjustment involves base management fees earned from funds that are eliminated upon consolidation and other items.

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.

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Liquidity and Capital Resources

Liquidity

BAM maintains sufficient liquidity at all times, enabling it to participate in investment opportunities as they arise, withstand sudden adverse changes in economic conditions, and sustain distributions. Typical cash flow activities include earning fees on assets managed, paying operating expenses, and paying cash dividends to shareholders. From time to time, BAM may draw on a revolving credit facility or issue commercial paper to bridge timing differences between the receipt and outflow of funds. It may also issue 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 of March 31, 2026, corporate liquidity for BAM is $2.5 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 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 of March 31, 2026, the facility was undrawn.
• On August 29, 2024, a $750 million five-year revolving credit facility was established through bilateral agreements with a group of lenders. On September 5, 2025, BAM finalized the upsize of the facility from $750 million to $1.1 billion. U.S. dollar draws are subject to the U.S. Base Rate or SOFR plus a margin of 110 basis points, while Canadian dollar draws are subject to the Canadian Prime Rate or CORRA plus a margin of 110 basis points. As of March 31, 2026, the facility was undrawn.
• In March 2026, BAM established a $1.0 billion senior unsecured commercial paper program that is fully backed by our five-year bilateral revolving credit facility. Net proceeds of commercial paper issuances, with maturities up to 364 days, are expected to be used for general corporate purposes. As of March 31, 2026, BAM had no CP Notes outstanding.
• Subsequent to March 31, 2026, BAM completed a debt offering, issuing $550 million of 5-year bonds at a fixed annual coupon of 4.832% and $450 million of a 10-year bond re-opening at a fixed annual coupon of 5.298%.

The details of outstanding debt securities as of March 31, 2026, unless otherwise noted, are summarized below:

The following table presents our deployable capital:

(a) Corporate deployable capital represents the corporate liquidity of BAM.

(b) Group deployable capital consists of: (1) corporate liquidity of BAM, consolidated funds, and the perpetual affiliates, and (2) uncalled private fund commitments, which are third-party commitments available for drawdown in the private funds of BAM.

Uncalled Fund Commitments

The following presents our Uncalled Fund Commitments as of March 31, 2026 by period and December 31, 2025:

Approximately $67 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 $670 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 Part I—Item 1. Financial Statements, Note 2 “Summary of Significant Accounting Policies” of the condensed consolidated financial statements of BAM as of March 31, 2026, and December 31, 2025, and for the three months ended March 31, 2026 and 2025.

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 three months ended March 31, 2026.

Exposures to Financial Instruments

As discussed elsewhere in this report, we utilize derivatives and other financial instruments in our business to manage risk and optimize the use of our capital. The notional and fair values of these instruments are disclosed in Part I—Item 1. Financial Statements, Note 5 “Fair Value Measurements of Financial Instruments” and Note 7 “Derivatives” to the condensed consolidated financial statements of BAM as of March 31, 2026, and December 31, 2025 and for the three months ended March 31, 2026, and 2025.

Off-Balance Sheet Arrangements

BAM may from time to time enter into guarantees given in respect of co-investments in which there is carried interest. The amount guaranteed is up to the carried interest amount paid to the General Partner, net of taxes. No known amounts are currently due or owed under these guarantees.

Related Party Transactions

BAM entered into a number of related party transactions with BN and other affiliates. See Part I—Item 1. Financial Statements, Note 14 “Related Party Transactions” of the condensed consolidated financial statements of BAM as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026, and 2025.

BAM Dividends

The dividends paid by BAM on outstanding securities for the three months ended March 31, 2026, and 2025 are summarized in the table below.

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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 of March 31, 2026, 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 of March 31, 2026, 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.

As of March 31, 2026, all of BAM's existing senior notes were issued directly by 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 other than the Finance Debt Issuers, on a combined basis.

2. This column includes the necessary amounts to present BAM on a consolidated basis.

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 Part I—Item 1. Financial Statements, Note 2 “Summary of Significant Accounting Policies” of the condensed consolidated financial statements as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025.

Equity Method Investments

Investments in which BAM is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. BAM has significant influence over our partner managers and therefore accounts for these investments under the equity method.

The carrying value of equity method investments is determined based on amounts invested by BAM, adjusted for the equity in earnings or losses of the investee allocated based on the relevant agreements, less distributions received. Under the equity method of accounting, BAM's share of earnings from equity investments is included in the share of income from equity investments in the 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 Part I—Item 1. Financial Statements, Note 3 “Investments” of the condensed consolidated financial statements for further details of our equity method investments.

Control or Level of Influence

When determining the appropriate basis of accounting for BAM's investees, BAM makes judgments about the degree of influence that it exerts directly or through an arrangement over the investees’ relevant activities. This may include the ability to elect investee directors or appoint management. Control is obtained when BAM has the power to direct the relevant investing, financing and operating decisions of an entity and does so in its capacity as principal of the operations, rather than as an agent for other investors. Operating as a principal includes having sufficient capital at risk in any investee and exposure to the variability of the returns generated as a result of the decisions of BAM as principal. Judgment is used in determining the sufficiency of the capital at risk or variability of returns. In making these judgments, BAM considers the ability of other investors to remove BAM as a manager or general partner in a controlled partnership.

Carried Interest Allocations - Unrealized

The change in the fair value of investments is a significant input into carried interest allocations - unrealized. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments.

Fair Value

BAM uses fair value throughout the reporting process. For details of our accounting policies related to fair value refer to Part I—Item 1. Financial Statements, 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 BBUC.

Foreign Currency Risk

We have very limited exposure to foreign currency risk as a majority of our private funds are denominated in U.S. Dollars. This means that a majority of the Fee Revenues that we earn are paid in U.S. Dollars, 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 and external parties, 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 of March 31, 2026. BAM also has interest rate exposure through its recently established CP Program. Our CP Notes may have maturities of up to 364 days from the date of issuance with interest rates based on market rates at the time of issuance. As of March 31, 2026, BAM had no CP Notes outstanding. 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%. BAM's $600 million senior notes due 2030 have a fixed annual coupon of 4.653%. BAM's $400 million senior notes due 2036 have a fixed annual coupon of 5.298%. Subsequent to March 31, 2026, BAM completed a debt offering, issuing $550 million of 5-year bonds at a fixed annual coupon of 4.832% and $450 million of a 10-year bond re-opening at a fixed annual coupon of 5.298%.

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 2,500 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 asset management 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 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 report, 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, 2025.