v3.25.4
INVESTMENTS
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS INVESTMENTS
AS AT DECEMBER 31,
(MILLIONS)
20252024
  Common and preferred shares (a)$337 $400 
  Investments in affiliates (b)787 1,116 
  Accrued carried interest - mature funds (c) 197 931 
Accrued carried interest - new funds (c)1,636 693 
Equity method investments (d)
Equity interest in Oaktree4,671 4,612 
Equity interest in Castlelake720 538 
Equity interest in Primary Wave261 147 
Equity interest in Angel Oak133 — 
Equity interest in other affiliates1,053 676 
$9,795 $9,113 
Where appropriate, the accounting for the Company’s investments incorporates the changes in fair value of those investments.
a.As at December 31, 2025, common and preferred shares were $337 million (2024 – $400 million). Common shares primarily represents investments of $64 million (2024 – $64 million) in Brookfield Renewable Energy L.P. and $27 million (2024 – $25 million) in Brookfield Infrastructure Income Fund Inc. Preferred shares represent investments of $188 million (2024 – $249 million) in GEMS Education and $58 million (2024 – $50 million) in Cherry Painting Company, Inc. Common and preferred share investments are carried at fair value with changes in fair value recorded in other expenses, net in the consolidated statements of operations.

b.As at December 31, 2025, investments in affiliates are primarily comprised of an interest in BSREP III, a fund which BAM manages, of $700 million (2024 – $1.0 billion) which is accounted for as an equity investment measured at its NAV in accordance with ASC 321, Investments – Equity Securities. The change in fair value of the Company’s interest in BSREP III was $161 million for the year ended December 31, 2025 (2024 - $82 million) and is recorded within other expenses, net in the consolidated statements of operations.

c.Accrued carried interest represents the disproportionate allocation of capital from our private funds to the extent that such interest is provided for in the relevant fund agreements. Accrued carried interest is accounted for using the equity method of accounting based on the Company’s entitlement to the funds’ net assets as if all investments were liquidated at fair value and all liabilities were satisfied, net of the cumulative amounts that have already been realized. As stipulated in the Relationship Agreement, accrued carried interest in mature funds, as defined therein, is all attributed to BN and accrued carried interest in new funds, including current funds and open-ended funds, as defined therein, is attributed to BN at 33.3%. Such attribution is achieved via Tracking Shares and non-controlling interests in certain subsidiaries that are entitled to such carried interest.
The change in BAM’s accrued carried interest for mature funds during the years ended December 31, 2025, 2024 and 2023 is as follows:
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
202520242023
Balance, beginning$931 $1,394 $1,147 
Changes in fund fair values(734)(438)298 
Realized carried interest— (25)(51)
Balance, ending$197 $931 $1,394 
All mature carried interest is due to BN therefore BAM's net amount of mature carried interest retained is $nil.
The change in BAM’s accrued carried interest for new funds during the years ended December 31, 2025, 2024 and 2023 is as follows:
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
202520242023
Balance, beginning$693 $305 $124 
Changes in fund fair values943 388 181 
Balance, ending$1,636 $693 $305 
New fund carried interest is partially due to BN, who is entitled to 33.3%. After allocating this interest to BN, BAM's net interest in new fund unrealized carried interest is $1.1 billion.
d.The Company has significant influence, but not control, over the operating and financial policies of its equity method investees by virtue of having the ability to appoint members of these investees' governing bodies. The Company recognized its share of earnings from all of its equity method investments of $402 million (2024 – $339 million; 2023 - $167 million) for the year ended December 31, 2025 within the share of income from equity method investments in its consolidated statements of operations. The Company’s equity method investments include our:
i.approximate 74% economic interest in Oaktree of $4.7 billion (2024 – $4.6 billion);
ii.economic interest in Castlelake of $720 million (2024 – $538 million);
iii.49.9% economic interest in LCM of $221 million (2024 – $186 million);
iv.44% economic interest in Primary Wave of $261 million (2024 – $147 million);
v.51.3% economic interest in Angel Oak of $133 million (2024 – $nil);
vi.approximate 11% economic interest in Pretium of $330 million (2024 – $351 million) for which BAM has elected the fair value option under ASC 825 Financial Instruments upon initial recognition with changes in fair value recognized in net income. For the year ended December 31, 2025, a decrease of $21 million has been recognized on the value of the investment. For the year ended December 31, 2025 an increase of $8 million has been recognized on financial assets held by the Company associated with Pretium, which partially offset the change in the value of the investment;
vii.limited partner interests in funds of $368 million (2024 – $29 million) including Pinegrove Fund (2025 – $230 million; 2024 – $25 million), BPE (2025 – $92 million; 2024 – $nil), BGTF II (2025 – $36 million; 2024 – $nil) and;
viii.general partner interests in a number of our private funds.
Oaktree
During the year ended December 31, 2025, the Company increased its investment in Oaktree, resulting in a step-up in the basis of the investment. The step-up occurred due to the Company’s purchase of an additional equity interest, which increased the Company’s economic interest in Oaktree from approximately 73% to approximately 74%. The Company paid cash consideration of $110 million, of which $40 million was provided by BN for its interest in preferred shares redeemable non-controlling interest. The net purchase price for BAM was $70 million. We continue to account for our interest in Oaktree as an equity method investment.

Primary Wave
During the year ended December 31, 2025, the Company increased its investment in Primary Wave resulting in a step-up in the basis of the investment. The step-up occurred due to the Company’s purchase of an additional equity interest for approximately $84 million, which increased the Company’s ownership percentage in Primary Wave from approximately 35%
to approximately 44%. We continue to account for our interest in Primary Wave as an equity method investment as we do not control the business.

Castlelake
During the year ended December 31, 2025, BAM participated in Castlelake's acquisition of Concora for approximately $475 million. As part of this acquisition, the Company contributed cash consideration of $116 million directly to Castlelake based on the Company's proportionate ownership. Additionally, the Company contributed $81 million for a direct interest in Concora. Overall these investments entitle the Company to an indirect and direct ownership interest of approximately 43%. The Company’s direct interest in Concora has been accounted for as an equity method investment.

Angel Oak
During the year ended December 31, 2025, BAM acquired a 51.3% economic stake in Angel Oak, a leading asset manager specializing in mortgage and consumer products for total consideration of approximately $149 million excluding transaction costs. The Company's interest in Angel Oak has been accounted for as an equity method investment. As part of the purchase agreement, the Company may be required to make additional payments as contingent consideration based on Angel Oak's earnings from 2025 to 2027. The Company has estimated the initial value of this contingent consideration which is included as part of the initial investment. Additionally, certain call options were entered into as part of the arrangement and the underlying value has been separately recognized from the initial value of the equity method investment.

Pinegrove Fund
During the year ended December 31, 2025, the Company invested $172 million in the Pinegrove Fund. The Company’s investment in the Pinegrove Fund has been accounted for as an equity method investment.

BPE
During the year ended December 31, 2025, the Company agreed to sell part of its interest in GEMS Education ($54 million) and Spring Education Group ($40 million) (collectively the “Seed Assets”) to BPE, a fund that will be managed by the Company. In exchange for the Seed Assets, the Company received units in BPE with an initial redemption value of approximately $94 million, which approximates the fair value of the Seed Assets. The units in BPE will be accounted for as an equity method investment and the investments previously held in the Seed Assets will be derecognized.

The summarized financial information of all of the Company’s equity method investees, in aggregate, as at December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024 and 2023, is as follows:
AS AT DECEMBER 31,
(MILLIONS)
20252024
Investments$99,522 $79,740 
Assets111,310 86,488 
Liabilities27,202 19,318 
Capital81,798 67,020 
Non-controlling interest2,310 196 
FOR THE YEARS ENDED DECEMBER 31,
(MILLIONS)
202520242023
Revenues$8,469 $5,156 $2,426 
Expenses(5,861)(3,997)(2,806)
Net income (loss)2,608 1,160 (380)
Net income attributable to non-controlling interest69 20 12 
During the year ended December 31, 2025, BAM disposed of its interest in Redwood Evergreen Fund LP for approximately $257 million. Prior to the disposal, the investment in the fund was classified as a disposal group held for sale measured at fair value less costs to sell. During the year ended December 31, 2025, BAM recognized a gain of $15 million, reported within Other expenses, net within the consolidated statements of operations upon the disposal of this investment.
Investments of Consolidated Funds
The summary of the Company's investments held in consolidated funds as at December 31, 2025 and 2024, is as follows:
AS AT DECEMBER 31,
(MILLIONS)
Fair value% of total investments
2025202420252024
Equity securities, at fair value$253 $251 50 %100 %
Debt, at fair value252 — 50 %— %
Total investments, at fair value$505 $251 100 %100 %
As of December 31, 2025 and 2024, no single issuer or investment, including derivative instruments and underlying portfolio investments of the consolidated funds, had a fair value that exceeded 5% of BAM’s total assets.
During the year ended December 31, 2025, BAM assigned part of its commitment in Brookfield Infrastructure Structured Solutions (“BISS”) to a related party. As a result of this BAM is no longer the primary beneficiary of BISS and therefore BISS was deconsolidated during the year ended December 31, 2025.
As of December 31, 2025, BAM continues to consolidate BSI II. The investments in consolidated funds are accounted for at their fair value under ASC 946 Financial Services – Investment Companies. During the year ended December 31, 2025, the Company, through BSI II, acquired debt and equity interests in Spring Education.
Other income, net of consolidated funds in the consolidated statements of operations, consists primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. For the year ended December 31, 2025, there were $47 million of gains recognized from investment activities within Other income, net of consolidated funds on the consolidated statements of operations (2024 – $nil; 2023 – $nil).