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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS .    RELATED PARTY TRANSACTIONS
In the normal course of business, BAM enters into transactions and derives substantially all of its revenue from the provision of asset management services to affiliates and related parties. During the year ended December 31, 2025, the Company recorded revenues of $4.8 billion (2024 – $3.8 billion, 2023 – $3.5 billion), with affiliates and related parties on its consolidated statements of operations.
BAM also has investment management agreements with the funds that it manages. In accordance with these agreements, these funds may bear certain operating costs and expenses which are initially paid by BAM and subsequently reimbursed by the funds.
As outlined in the Relationship Agreement, BN is responsible for costs associated with certain share-based awards for certain employees, some of which are subject to revaluation at each balance sheet date, and will also bear the cost of the employee entitlement to carried interest on mature funds either directly or indirectly through reimbursement to the Company. Income generated from BN under the Relationship Agreement relating to these instruments is recognized as other revenues in the consolidated statements of operations on a gross basis as the instruments vest or are incurred. During the year ended December 31, 2025, BAM recognized recharges of $268 million (2024 – $178 million; 2023 – $142 million), in the consolidated statements of operations in other revenues under this arrangement.
Due from affiliates and due to affiliates consisted of the following:
AS AT DECEMBER 31,
(MILLIONS)
20252024
Due from affiliates
Operating and loan receivables$1,669 $1,768 
Receivables from affiliates related to share and cash-based compensation1,611 732 
$3,280 $2,500 
Due to affiliates
Operating and loan payables$682 $897 
Payables to affiliates related to share and cash-based compensation38 195 
$720 $1,092 
Due from affiliates
Due from affiliates of $3.3 billion (2024 – $2.5 billion) consists of $1.7 billion (2024 – $1.8 billion) of receivables from affiliates and related parties which are primarily comprised of base management fees and fund expense reimbursements which are earned in accordance with underlying agreements of the respective funds that BAM is the general partner of or manages.
Due from affiliates also includes working capital facilities, and other outstanding credit facilities provided in the normal course of business. Loans to affiliates are unsecured with floating rates of SOFR plus 235 basis points or a fixed interest rate of 0.9% to 4.2%. Maturities on loans to related parties range from 2026 to 2057. The loans were generally issued to finance acquisitions and fund commitments. In the normal course of business, BAM may periodically assign or transfer balances to related parties. During the year ended December 31, 2025, BAM assigned a $117 million loan to a related party at market terms.
The remaining $1.6 billion (2024 – $0.7 billion) represents receivables from affiliates related to share and cash-based compensation.
Due to affiliates
Due to affiliates of $720 million (2024 – $1.1 billion) consists of operating and loan payables to affiliates and related parties and payables to affiliates related to share and cash-based compensation. Operating payables are for services received in the normal course of business. Loans payables to affiliates and related parties are unsecured with a fixed interest rate of 6.8% to 10.2%. The loans were generally issued for working capital management. The payables to affiliates related to share and cash-based compensation relate to certain adjustments to share and cash-based compensation amounts under the Relationship Agreement as described above.
For the year ended December 31, 2025 the Company recognized tax attributes purchased from a related party of $136 million (2024 – $114 million).
Other related party transactions
During the year ended December 31, 2025 and as part of the 2025 Arrangement, BAM settled the outstanding tracking option which was previously recognized at cost less impairment. As a result, as at December 31, 2025, the carrying amount of these options is $nil (December 31, 2024 – $75 million).
Accounts payable include amounts payable under a tax receivable agreement with Oaktree for $116 million as at December 31, 2025 (2024 – $128 million). Other liabilities as at December 31, 2025 include $46 million (2024 – $35 million) of lease liabilities associated with related parties.
During the year, certain Brookfield-managed funds exited an investment whereby BAM was required to warehouse the investment due to timing of a certain co-investment. The total value of this warehouse was $103 million. Subsequently, BAM received $105 million from the co-investors in settlement of the warehoused interest representing the entirety of this warehouse investment.
On December 22, 2025, BAM acquired certain limited partner units of a partnership from BN, and Brookfield Finance Inc. (“BFI”) for consideration in the form of redeemable preferred shares with a redemption amount of $42 million and $52 million respectively. These units were subsequently redeemed for cash equal to the redemption amount. As BN and BFI are affiliates of the Company, these transactions were considered related party transactions. The transactions resulted in an aggregate decrease of approximately $94 million in cash and taxes payable in the consolidated balance sheet.
BAM incurs certain facilities and technology expenses in the normal course of business that are charged by BN. These costs are included within the other operating expenses in BAM's consolidated statement of operations.
In addition, BAM does business with and on behalf of certain of its affiliates and investees; all such arrangements are conducted on a negotiated basis.