FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as at December 31, 2025 and 2024:


	2025
AS AT DECEMBER 31, (MILLIONS)	Level I		Level II		Level III		NAV		Total
Assets
Cash equivalents	$	1,181	$	—	$	—	$	—	$	1,181
Financial assets	—		7		410		—		417
Investments:
Common and preferred shares	—		—		310		27		337
Investments in affiliates	—		—		—		700		700
Equity method investments under fair value option	—		—		330		—		330

Total assets at fair value	$	1,181	$	7	$	1,050	$	727	$	2,965
Liabilities
Financial liabilities	$	—	$	5	$	444	$	—	$	449
Total liabilities at fair value	$	—	$	5	$	444	$	—	$	449


	2024
AS AT DECEMBER 31, (MILLIONS)	Level I		Level II		Level III		NAV		Total
Assets
Cash equivalents	$	172	$	—	$	—	$	—	$	172
Financial assets	—		—		231		—		231
Investments:
Common and preferred shares	10		—		363		25		398
Investments in affiliates	—		—		—		1,026		1,026
Equity method investments under fair value option	—		—		351		—		351
Investments held for sale	—		—		242		—		242
Total assets at fair value	$	182	$	—	$	1,187	$	1,051	$	2,420
Liabilities
Financial liabilities	$	—	$	—	$	228	$	—	$	228
Total liabilities at fair value	$	—	$	—	$	228	$	—	$	228

The following tables summarize the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as at December 31, 2025 and 2024:


	2025								2024
AS AT DECEMBER 31, (MILLIONS)	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Assets


Investments in equity securities	$	—	$	—	$	253	$	253	$	—	$	—	$	251	$	251
Investments in debt	—		—		252		252		—		—		—		—
Total assets at fair value	$	—	$	—	$	505	$	505	$	—	$	—	$	251	$	251
Liabilities

Borrowings	$	462	$	—	$	—	$	462	$	251	$	—	$	—	$	251
Total liabilities at fair value	$	462	$	—	$	—	$	462	$	251	$	—	$	—	$	251

Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as at December 31, 2025 and 2024:

AS AT DECEMBER 31, 2025

(MILLIONS)

Asset/Liability

Fair Value

Valuation
Techniques

Unobservable
Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Financial assets (b)

410

Option pricing model

Volatility

35% - 40%

Higher

Discount rate

3% - 9%

Lower

Common and preferred shares (c)

310

Market approach

N/A

Equity method investments under fair value option (d)

330

Market approach

N/A

Financial liabilities (f)

444

Option pricing model

Volatility

25% - 40%

Higher

Discount rate

3% - 4%

Lower

AS AT DECEMBER 31, 2024

(MILLIONS)

Asset/Liability

Fair Value

Valuation
Techniques

Unobservable
Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Financial assets (b)

231

Option pricing model

Volatility

30% - 40%

Higher

Discount rate

5% - 9%

Lower

Common and preferred shares (c)

363

Market approach

N/A

Equity method investments under fair value option (d)

351

Market approach

N/A

Investments held for sale (e)

242

Market approach

N/A

Financial liabilities (f)

228

Option pricing model

Volatility

30% - 40%

Higher

Discount rate

5% - 8%

Lower

(a)Unobservable inputs were weighted based on the fair value of the investments included in the range.

(b)Financial assets relate to call options held by the Company to acquire additional shares of Primary Wave, LCM, Angel Oak and Castlelake from other investors of the investee using a prescribed valuation methodology in exchange for cash, Class A Shares of BAM or BN or other forms of consideration at the discretion of the Company. Financial assets also includes a financial guarantee that ensures a pre-determined return is earned on the 11% economic interest in Pretium. The fair value of these instruments are determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

(c)Common shares categorized as Level III represents investments of $64 million in Brookfield Renewable Energy L.P. (2024 – $64 million). Preferred shares represent $188 million of preferred shares in GEMS Education (2024 – $249 million) and $58 million preferred shares of Cherry Painting Company, Inc. (2024 – $50 million). Common and preferred share investments are carried at fair value with changes in fair value recorded in the consolidated statements of operations.

(d)Equity method investments under fair value option represents an 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 the consolidated statements of operations.

(e)On March 27, 2025, the Company disposed of its interest in Redwood Evergreen Fund LP for approximately $257 million. As a result, for the year ended December 31, 2025, BAM recognized a gain of $15 million, reported in Other expenses, net within the consolidated statements of operations.

(f)Financial liabilities relate to put options held by other investors of Oaktree, Castlelake, LCM and Primary Wave under which the Company may be required to purchase additional shares of these investees using a prescribed valuation methodology in exchange for cash, Class A Shares of BAM or BN or other forms of consideration at the discretion of the Company. The balance also includes contingent consideration agreed to as part of the acquisition of certain investments and other financial derivatives. The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management.

AS AT DECEMBER 31, 2025

(MILLIONS)

Level III Asset/Liability

Fair Value

Valuation
Techniques

Unobservable Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Investments in equity securities

253

Market approach

N/A

Investments in debt

252

Par (net of amortized discount) plus
accrued interest

Discount rate

14%

Lower

AS AT DECEMBER 31, 2024

(MILLIONS)

Level III Asset/Liability

Fair Value

Valuation
Techniques

Unobservable
Inputs

Ranges

Weighted
Average (a)

Impact to Valuation from an Increase in Input

Investments in equity securities

251

Market approach

N/A

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Company has used Level III inputs to determine fair value. Total realized and unrealized gains and losses recorded for Level III investments are reported in other expenses, net in the consolidated statements of operations.


AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS)	Financial assets		Common and preferred shares		Equity method investments under fair value option		Financial liabilities
Balance, beginning	$	231	$	363	$	351	$	228
Fair value changes in net income	132		16		(21)		142
Purchases and other	47		(10)		40		86
Transfers	—		(59)		(40)		—
Payments	—		—		—		(12)


Balance, ending	$	410	$	310	$	330	$	444


AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS)	Financial assets		Common and preferred shares		Equity method investments under fair value option		Financial liabilities
Balance, beginning	$	37	$	64	$	—	$	122
Fair value changes in net income	68		—		—		(7)



Purchases	126		532		351		113



Sales	—		(233)		—		—
Balance, ending	$	231	$	363	$	351	$	228


AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS)	Investments in debt		Investments in equity securities
Balance, beginning	$	—	$	251
Fair value changes in net income	25		22



Deconsolidation of consolidated funds	—		(267)
Purchases, net	227		247



Balance, ending	$	252	$	253


AS AT AND FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS)	Investments in equity securities
Balance, beginning	$	—
Fair value changes in net income	—



Purchases, net	251



Balance, ending	$	251

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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