Brookfield Asset Management Ltd.
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
BAM$52.95+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001937926-25-000025
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001628280-25-050749
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 463 previous paragraphs and 475 current paragraphs.
279 unchanged; 159 reworded; 37 added; 24 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 43 previous and 43 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
•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.
Current report
•We also manage Brookfield Private Equity ("BPE"), which is an evergreen semi-liquid fund offering individual investors streamlined, diversified access to Brookfield’s global private equity platform through a single vehicle.
Current report
◦Angel Oak, a leading asset manager specializing in innovative mortgage and consumer products. For further discussion on our recent transaction with Angel Oak, refer to Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Recent Developments”, in this report;
Current report
Other revenues were $135 million for the three months ended September 30, 2025, a net decrease of $20 million compared to the three months ended September 30, 2024. The gross decrease of $60 million was due to a reduction in recoveries associated with carried interest compensation for legacy funds. This was partially offset by an increase of $40 million, comprised of $20 million of higher recoveries in share and performance-based compensation, as well as $18 million of other incremental performance fees.
Current report
Carried Interest Allocation Recovery (Compensation)
Current report
Interest Expense
Current report
Interest expense for three months ended September 30, 2025 was $20 million, which represents an increase of $12 million compared to the three months ended September 30, 2024. This was driven by BAM's increased borrowings from two debt offerings completed during the year.
Current report
Interest Expense of Consolidated Funds
Current report
Interest expense of consolidated funds for three months ended September 30, 2025 was $6 million, which was driven by borrowings made by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Current report
Other Expenses, net
Current report
Our share of income from equity method investments was $110 million compared to $61 million in the prior period, an increase of $49 million. This is predominantly driven by $39 million of incremental earnings from Castlelake and Concora, as well as $38 million from our other various equity method investments. This was partially offset by a $28 million decrease in income from Oaktree due to lower carried interest in the period.
Current report
For the nine months ended September 30, 2025 and 2024
Current report
Revenues for the nine months ended September 30, 2025 were $3.4 billion, which represents an increase of $506 million or 17% compared to $2.9 billion of revenue for the nine months ended September 30, 2024.
Current report
Other revenues were $420 million for the nine months ended September 30, 2025, an increase of $87 million compared to the nine months ended September 30, 2024. Of the total increase, $50 million was due to higher recoveries in share and performance-based compensation. In addition, the increase was also driven by $23 million of other incremental performance fees.
Current report
Interest Expense
Current report
Interest expense for nine months ended September 30, 2025 was $54 million, which represents an increase of $37 million compared to the nine months ended September 30, 2024. This was driven by BAM's increased borrowings from two debt offerings completed during the year.
Current report
Interest Expense of Consolidated Funds
Current report
Interest expense of consolidated funds for nine months ended September 30, 2025 was $22 million, which was driven by borrowings made by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Current report
Other Expenses, net
Current report
Total assets were $16.5 billion as at September 30, 2025, an increase of $2.4 billion or 17% compared to December 31, 2024.
Current report
Investments are mainly comprised of:
Current report
During the period, investments increased by $528 million primarily due to investments made by BAM during the period in Concora ($197 million), Pinegrove Opportunity Partners I LP ($156 million) and Primary Wave ($84 million). In addition, investments also increased due to changes in value of accumulated unrealized carried interest on new funds ($361 million), partially offset by a decrease in accumulated unrealized carried interest on mature funds ($249 million).
Current report
Total liabilities were $5.8 billion as at September 30, 2025, an increase of $2.9 billion or 97% compared to December 31, 2024.
Current report
Net cash outflows from investing activities totaled $8 million, compared to outflows of $1.3 billion in the prior period. Outflows for the three months ended September 30, 2024 were higher due to investments made in Castlelake, Redwood Evergreen Fund LP and GEMS.
Current report
For the nine months ended September 30, 2025 and 2024
Current report
Transaction fees increased by $6 million driven by higher fees from our infrastructure strategies, partially offset by lower transaction fees from private equity.
Current report
During the three months ended September 30, 2025, Fee-Bearing Capital increased by $1.4 billion or 1% to $101 billion. This increase was predominantly driven by $2.0 billion of inflows in our long-term private funds, $506 million of inflows related to the issuance of debt from BIP, and inflows of $731 million to our complementary perpetual strategies. These increases were partially offset by distributions of $1.6 billion paid by certain perpetual strategies, earlier vintages of our flagship funds and BIP.
Current report
Segment Earnings increased by $10 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by our complementary perpetual strategies, partially offset by higher Segment Expenses as we continue to scale our business.
Current report
Segment Earnings increased by $10 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was due to higher Segment Revenues primarily driven by growth in our perpetual strategies, partially offset by higher Segment Expenses as we continue to scale our business.
Current report
Segment Earnings increased by $47 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was due to higher Segment Revenues predominantly driven by incremental revenues as a result of strong fundraising for the second vintage of our flagship global transition fund and perpetual funds. These increases were partially offset by higher Segment Expenses to support the scaling of our business.
Current report
Segment Earnings increased by $79 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by additional closes of the second vintage of our flagship global transition fund and inflows from perpetual funds resulting in incremental fee revenues. These increases were partially offset by higher Segment Expenses to support the scaling of our business.
Current report
During the nine months ended September 30, 2025, Fee-Bearing Capital increased by $1.2 billion or 3% to $46 billion. The increase was primarily driven by inflows of $4.4 billion associated with certain long-term private funds and co-investments made within our complementary strategies. In addition, market valuation increases of $969 million were primarily driven by BBU due to a higher share price during the period. These increases were partially offset by other changes associated with write-downs from earlier vintages of our flagship funds and co-investment vehicles resulting in a decrease of $1.5 billion. In addition, changes in other include to $1.9 billion from the impact of changes in fee-basis and foreign exchange on certain co-investment vehicles and lower corporate debt at BBU. Distributions of $818 million were driven by our fourth flagship fund, other long-term private funds, and BBU.
Current report
Segment Earnings increased by $7 million for the three months ended September 30, 2025 relative to the three months ended September 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues associated with higher revenues from our fifth flagship fund.
Current report
Segment Earnings increased $119 million for the nine months ended September 30, 2025 relative to the nine months ended September 30, 2024. The increase in Segment Earnings was driven by higher Segment Revenues primarily as a result of incremental earnings from Castlelake relative to the prior period, partially offset by higher Segment Expenses as a result of growth in the business.
Current report
Recent Developments
Current report
On October 1, 2025, BAM acquired a stake in Angel Oak, a leading asset manager specializing in innovative mortgage and consumer products, for total consideration of approximately $149 million. Angel Oak will be accounted for as an equity method investment in accordance with U.S. GAAP.
Current report
On October 13, 2025, BAM and BN announced they will acquire all of the remaining common equity interests in the Oaktree business for total consideration of approximately $3 billion. After giving effect to the proposed transaction, Brookfield will own 100% of Oaktree. BAM will acquire, an incremental 26% interest in Oaktree’s Fee-Related Earnings, carried interest from certain funds (net of BN’s 33% royalty), and partner manager interest in 17Capital and DoubleLine for approximately $1.6 billion. BN will acquire, an incremental 26% interest in Oaktree’s balance sheet investments and the remaining carried interest for approximately $1.4 billion. Oaktree is currently accounted for as an equity method investment and following the close of the transaction, will be consolidated within BAM's financial statements in accordance with U.S. GAAP. We expect this transaction to close in the first half of 2026, subject to regulatory approvals and customary closing conditions.
Removed paragraphs (24)
Previous report
Revenues for the three months ended June 30, 2025 were $1.1 billion, which represents an increase of $174 million or 19% compared to $916 million of revenue for the three months ended June 30, 2024.
Previous report
Other revenues were $180 million for the three months ended June 30, 2025, an increase of $176 million compared to the three months ended June 30, 2024. Other revenues are largely comprised of recoverables from BN related to share and performance-based compensation as defined by the Relationship Agreement, fund expense recharges, and incentive management fees earned on certain funds. Of the total increase, $103 million was due to a higher recoveries in share and performance-based compensation. 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. The increase was also driven by incremental recoveries of $44 million associated with carried interest compensation for legacy funds and an additional $33 million in recoveries of operating expenses from related parties.
Previous report
Other (Expenses) Income, net
Previous report
For the six months ended June 30, 2025 and 2024
Previous report
Other revenues were $285 million for the six months ended June 30, 2025, an increase of $107 million compared to the six months ended June 30, 2024. Other revenues are largely comprised of amounts recoverable from BN related to share and performance-based compensation as defined by the Relationship Agreement, fund expense recharges, and incentive management fees earned on certain funds. Of the total increase, a $38 million increase compared to the prior period was due to higher recoveries in share and performance-based compensation. 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. In addition, the increase was also driven by incremental recoveries of $85 million associated with carried interest compensation for legacy funds.
Previous report
Carried Interest Allocation Compensation
Previous report
Other (Expenses) Income, net
Previous report
Our share of income from equity method investments was $239 million compared to $133 million in the prior period, an increase of $106 million. This is predominantly driven by higher earnings of $30 million from our investment in Oaktree due to carried interest earned on legacy funds, $55 million earned from our investment in Castlelake which we acquired in September 2024, with the remainder earned from other equity method investments.
Previous report
Total assets were $16.1 billion as at June 30, 2025, an increase of $2.0 billion or 14% compared to December 31, 2024.
Previous report
Investments are comprised of:
Previous report
(2024 - $693 million), respectively;
Previous report
•Other investments totaling $0.7 billion.
Previous report
During the period, investments increased by $374 million primarily due to Castlelake's acquisition of Concora, which comprised of a $116 million contribution to Castlelake and an $81 million direct investment. In addition, investments increased as a result of step-up investments in Oaktree and Primary Wave, as well as an increase in accumulated unrealized carried interest on new funds, partially offset by decreased accumulated unrealized carry on mature funds.
Previous report
Total liabilities were $5.1 billion as at June 30, 2025, an increase of $2.1 billion or 72% compared to December 31, 2024.
Previous report
For the six months ended June 30, 2025 and 2024
Previous report
Transaction fees also decreased by $11 million as the prior period reflected higher fees from our renewable power and transition, private equity, and infrastructure platforms.
Previous report
Segment Earnings increased by $25 million for the three months ended June 30, 2025 relative to the three months ended June 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by fundraising for the second vintage of our global transition fund and perpetual funds resulting in higher fees earned. These increases were partially offset by increased Segment Expenses due to growth in our asset management business.
Previous report
Segment Earnings increased by $32 million for the six months ended June 30, 2025 relative to the six months ended June 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by fundraising for the second vintage of our global transition fund and perpetual funds resulting in higher fees earned. These increases were partially offset by increased Segment Expenses due to growth in our asset management business.
Previous report
During the three months ended June 30, 2025, Fee-Bearing Capital increased by $3.4 billion or 4% to $100 billion. This increase was driven by inflows of $753 million from certain perpetual funds and $3.5 billion of higher market capitalization from BIP due to the increase in its share price during the quarter. These increases were partially offset by distributions of $891 million paid to BIP unitholders as well as certain perpetual strategies and earlier vintages of our flagship funds.
Previous report
Segment Earnings increased by $1 million for the three months ended June 30, 2025 relative to the three months ended June 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by capital raised and deployed by certain of our perpetual strategies, partially offset by higher Segment Expenses due to growth in our business.
Previous report
Segment Earnings were flat at $293 million for the six months ended June 30, 2025 relative to the six months ended June 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues driven by capital raised and deployed by certain of our perpetual strategies, partially offset by higher Segment Expenses due to growth in our business.
Previous report
Segment Earnings increased by $85 million for the six months ended June 30, 2025 relative to the six months ended June 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues associated with a close of our fifth flagship fund, partially offset by higher Segment Expenses due to growth in our business.
Previous report
During the six months ended June 30, 2025, Fee-Bearing Capital decreased by $2.0 billion or 5% to $43 billion. The decrease was primarily driven by lower valuations within earlier vintages of our flagship funds resulting in a decrease of $1.5 billion, and $1.0 billion from BBU due to the repayment of corporate debt. In addition, distributions of $554 million from our fourth flagship fund and other long-term private funds also contributed to the net decrease for the period. These decreases were partially offset by inflows of $1.1 billion associated with co-investments made within our complementary strategies.
Previous report
Segment Earnings increased $70 million for the six months ended June 30, 2025 relative to the six months ended June 30, 2024. The increase in Segment Earnings was primarily due to higher Segment Revenues as a result of higher earnings associated with strategic partners partially offset by Segment Expenses due to scaling of our credit group.
Reworded paragraphs (159)
Previous wording
We are a leading global alternative asset manager, headquartered in New York, NY, with over $1 trillion of Assets Under Management across renewable power and transition, infrastructure, private equity, real estate, and credit. Our objective is to generate attractive, long-term risk-adjusted returns for the benefit of our clients and shareholders.
Current wording
We are a leading global alternative asset manager, headquartered in New York, NY, with over $1 trillion of Assets Under Management across infrastructure, renewable power and transition, private equity, real estate, and credit. Our objective is to generate attractive, long-term risk-adjusted returns for the benefit of our clients and shareholders.
Previous wording
We manage a range of public and private investment products and services for institutional and retail 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 access to large-scale capital enables us to make investments in sizeable, premier assets and businesses across geographies and asset classes that we believe few others can.
Current wording
We manage a range of public and private investment products and services for institutional and individual investors. We earn asset management income for doing so and ensure strong alignment of interests with our clients by investing Brookfield capital alongside them. Our access to large-scale capital enables us to make investments in sizeable, premier assets and businesses across geographies and asset classes that we believe few others can.
Previous wording
After giving effect to the 2025 Arrangement, BAM owns 100% of Brookfield Asset Management ULC, and BN owns approximately 73% of the Class A Shares of BAM.
Current wording
After giving effect to the 2025 Arrangement, BAM owns 100% of Brookfield Asset Management ULC, and BN owned approximately 73% of the Class A Shares of BAM. As at September 30, 2025, BN owns approximately 69% of the Class A shares of BAM.
Previous wording
In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 2.6% for the quarter ended June 30, 2025, compared to a contraction of 0.5% for the quarter ended March 31, 2025. U.S. inflation eased in the second quarter of 2025 with estimates reporting that the annual U.S. inflation rate increased to 2.7% as of June 30, 2025, compared to 2.4% as of March 31, 2025. The U.S. unemployment rate has dropped to 4.1% in June 2025, according to data from the U.S. Bureau of Labor Statistics. As of July 2025, the International Monetary Fund estimated that the U.S. economy will slow to 1.9% in 2025 and 2.0% in 2026 from 2.8% in 2024, on account of greater policy uncertainty, trade tensions, and softer demand momentum.
Current wording
In terms of economic conditions in the U.S., real gross domestic product (“GDP”) is estimated to have grown by 3.9% for the quarter ended September 30, 2025, compared to an increase of 3.8% for the quarter ended June 30, 2025. U.S. inflation increased over the third quarter of 2025 with estimates reporting that the annual U.S. inflation rate increased to 3.0% as of September 30, 2025, compared to 2.7% as of June 30, 2025. The U.S. unemployment rate saw a modest increase to 4.3% in August 2025 from 4.2% in June 2025, according to data from the U.S. Bureau of Labor Statistics. As of October 2025, the International Monetary Fund estimated that the U.S. economy will slow to 2.0% in 2025 and 2.1% in 2026 from 2.8% in 2024, on account of greater policy uncertainty, trade tensions, and fiscal vulnerabilities.
Previous wording
The U.S. Federal Reserve finished the second quarter of 2025 with a benchmark interest rate target range of 4.25% to 4.50%, unchanged from the previous quarter ending March 31, 2025. The Federal Reserve's latest economic projections reveal expectations of slower growth and higher core inflation by the end of 2025. This partially reflects the expected impact of U.S. tariffs and consequential retaliation. During the quarter ended June 30, 2025, the 10-year government bond yields rose 0.5% in the United States.
Current wording
The U.S. Federal Reserve trimmed the Federal Funds target range from 4.25%-4.50% down to 4.00%-4.25% in September, after an extended pause. The U.S. Federal Reserve highlighted downside risks to the labor market and reaffirmed that inflation continued to stay elevated. The U.S. Federal Reserve’s latest economic projections reveal expectations of better growth and higher core inflation by the end of 2025, compared to June 2025. During the quarter ended September 30, 2025, the 10-year government bond yields fell 0.07% in the United States.
Previous wording
Outside the U.S., GDP growth in the Eurozone is estimated to have increased by 0.2% for the quarter ended June 30, 2025, while inflation is expected to be below the European Central Bank’s 2% target at 1.7%. The short-term benchmark interest rate set by the European Central Bank was 2.15% as of June 30, 2025, down from 2.65% as of March 31, 2025.
Current wording
Outside the U.S., GDP growth in the Eurozone is estimated to have increased by 1.1% for the quarter ended September 30, 2025, while inflation is expected to move to 2.1% in 2025 and drop to 1.7% in 2026, below the European Central Bank’s 2% target. The short-term benchmark interest rate set by the European Central Bank was 2.15% as of September 30, 2025, unchanged from June 30, 2025. In China, real GDP is estimated to have grown by 4.8% for the quarter ended September 30, 2025, down from 5.2% in the second quarter, as the economy remains subject to various headwinds, including trade policy uncertainties and concerns about its property sector. The 1-year prime rate set by the People's Bank of China was 3.00% as of September 30, 2025, unchanged from June 30, 2025.
Previous wording
For the quarter ended June 30, 2025, the S&P 500 was up by 10.6%, the MSCI Europe Index was up by 1.0%, the MSCI Asia Index was up by 11.7%, and the MSCI World Index was up by 11.0%. During the quarter ended June 30, 2025, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) tightened by 9 basis points, and the high yield credit spreads were down by 59 basis points.
Current wording
For the quarter ended September 30, 2025, the S&P 500 was up by 8.2%, the MSCI Europe Index was up 3.2%, the MSCI Asia Index was up 8.5%, and the MSCI World Index increased by 7.0%. During the quarter ended September 30, 2025, U.S. investment grade corporate bond spreads (BofA US Corporate Bond Index) tightened by 10 basis points, and the high yield credit spreads were down by 16 basis points.
Previous wording
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) renewable power and transition, (ii) infrastructure, (iii) real estate, (iv) private equity, and (v) credit.
Current wording
Our products broadly fall into one of three categories: (i) long-term private funds, (ii) permanent capital vehicles and perpetual strategies, and (iii) liquid strategies. These are invested across five principal strategies: (i) infrastructure, (ii) renewable power and transition, (iii) real estate, (iv) private equity, and (v) credit.
Previous wording
•We are one of the world’s largest investment managers in infrastructure, with $222 billion of AUM and $100 billion of Fee-Bearing Capital as of June 30, 2025.
Current wording
•We are one of the world’s largest investment managers in infrastructure, with $242 billion of AUM and $101 billion of Fee-Bearing Capital as of September 30, 2025.
Previous wording
•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 $27.6 billion as of June 30, 2025.
Current wording
•We manage Brookfield Infrastructure Partners L.P. (“BIP”), one of the largest, pure-play, publicly traded global infrastructure platforms, which is listed on the NYSE and TSX and had a market capitalization of $26.7 billion as of September 30, 2025.
Previous wording
•We are one of the largest investors in renewable power and transition investments, with $137 billion of AUM and $64 billion of Fee-Bearing Capital as of June 30, 2025.
Current wording
•We are one of the largest investors in renewable power and transition investments, with $137 billion of AUM and $69 billion of Fee-Bearing Capital as of September 30, 2025.
Previous wording
•We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $18.1 billion as of June 30, 2025.
Current wording
•We also manage Brookfield Renewable Partners L.P. (“BEP”), one of the world’s largest publicly traded renewable power platforms, which is listed on the NYSE and TSX and had a market capitalization of over $18.5 billion as of September 30, 2025.
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•Utility solar operations that harness energy from the sun to generate electricity;
Current wording
•Utility-scale solar operations that harness energy from the sun to generate electricity;
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•Distributed energy and storage which provides small-scale generation that can be locally installed, and pump storage facilities;
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•Distributed energy and storage which provides small-scale generation that can be locally installed, pump storage facilities, and battery energy storage systems;
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•We have one of the best long-term track records for investing in private equity with $150 billion of AUM and $43 billion of Fee-Bearing Capital as of June 30, 2025.
Current wording
•We have one of the best long-term track records for investing in private equity with $151 billion of AUM and $46 billion of Fee-Bearing Capital as of September 30, 2025.
Previous wording
•We manage Brookfield Business Partners L.P. (“BBU”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBU is listed on the NYSE and TSX and had a market capitalization of $5.3 billion as at June 30, 2025.
Current wording
•We manage Brookfield Business Partners L.P. (“BBU”), which is a publicly traded global business services and industrials company focused on owning and operating high-quality providers of essential products and services. BBU is listed on the NYSE and TSX and had a market capitalization of $6.1 billion as at September 30, 2025.
Previous wording
•We are one of the world’s largest investment managers in real estate, with over $278 billion of AUM and $102 billion of Fee-Bearing Capital as of June 30, 2025.
Current wording
•We are one of the world’s largest investment managers in real estate, with over $272 billion of AUM and $102 billion of Fee-Bearing Capital as of September 30, 2025.
Previous wording
•We are one of the world’s largest and most experienced credit managers globally, with $332 billion of AUM and $254 billion of Fee-Bearing Capital as of June 30, 2025.
Current wording
•We are one of the world’s largest and most experienced credit managers globally, with $349 billion of AUM and $263 billion of Fee-Bearing Capital as of September 30, 2025.
Previous wording
◦Oaktree, a leader among global investment managers specializing in alternative investments, emphasizing an opportunistic, value- oriented and risk-controlled approach to investing in credit, equity and real estate
Current wording
◦Oaktree, a leader among global investment managers specializing in alternative investments, emphasizing an opportunistic, value-oriented and risk-controlled approach to investing in credit, equity and real estate. For further discussion on our proposed transaction with Oaktree, refer to Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations—Recent Developments”, in this report;
Previous wording
◦17Capital, the go-to global source of NAV finance for investors in private equity.
Current wording
◦17Capital LLP (“17Capital”), the go-to global source of NAV finance for investors in private equity.
Previous wording
The following table summarizes the condensed consolidated statements of operations for BAM for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes the condensed consolidated statements of operations for BAM for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Net income for the three months ended June 30, 2025 was $584 million, of which $620 million was attributable to common stockholders. This compares to net income of $518 million for the three months ended June 30, 2024, of which $495 million was attributable to common stockholders.
Current wording
Net income for the three months ended September 30, 2025 was $692 million, of which $724 million was attributable to common stockholders. This compares to net income of $537 million for the three months ended September 30, 2024, of which $544 million was attributable to common stockholders.
Previous wording
Revenues for the six months ended June 30, 2025 were $2.2 billion, which represents an increase of $371 million or 21% compared to $1.8 billion of revenue for the six months ended June 30, 2024.
Current wording
Revenues for the three months ended September 30, 2025 were $1.3 billion, which represents an increase of $135 million or 12% compared to $1.1 billion of revenue for the three months ended September 30, 2024.
Previous wording
Base management and advisory fees, for the three months ended June 30, 2025 were $815 million, which represents an increase of $100 million or 14% compared to the three months ended June 30, 2024. Management fee revenues increased by $29 million from capital raised for our latest global transition fund, $17 million from capital raised for our latest real estate flagship fund, and $17 million from insurance capital inflows from BWS. In addition, management fees increased $16 million from an increase in the trading price of BIP and $13 million due to NAV increases of BPG.
Current wording
Base management and advisory fees, for the three months ended September 30, 2025 were $859 million, which represents an increase of $91 million or 12% compared to the three months ended September 30, 2024. Management fee revenues increased by $64 million from capital raised for the second vintage of our global transition flagship fund, $16 million from inflows and NAV increases of certain liquid infrastructure strategies and $12 million from capital raised for the fifth vintage of our real estate flagship fund.
Previous wording
Incentive fees for the three months ended June 30, 2025, were $116 million, an increase of $10 million or 9% from the three months ended June 30, 2024, driven by a 6% growth in BIP dividends of $6 million and 5% growth in BEP dividends of $4 million.
Current wording
Incentive fees for the three months ended September 30, 2025, were $115 million, an increase of $10 million or 10% from the three months ended September 30, 2024, driven by a 6% growth in BIP dividends of $6 million and 5% growth in BEP dividends of $4 million.
Previous wording
Realized carried interest allocations were $nil for the three months ended June 30, 2025 and the three months ended June 30, 2024. Realized carried interest allocations on mature funds are attributed to BN through our redeemable preferred shares.
Current wording
Realized carried interest allocations were $nil for the three months ended September 30, 2025 and the three months ended September 30, 2024.
Previous wording
The unrealized carried interest allocation of $63 million for the three months ended June 30, 2025 represents a net decrease of $118 million compared to the three months ended June 30, 2024. The gross decrease of $189 million compared to the prior period reflects lower relative valuations across mature real estate flagship funds and various private equity funds. This was partially offset by a gross increase of $71 million in unrealized carried interest driven by changes in fund valuations associated with our infrastructure flagship funds for $47 million and our global transition flagship funds for $24 million.
Current wording
The unrealized carried interest allocation of $112 million for the three months ended September 30, 2025 represents a net increase of $57 million compared to the three months ended September 30, 2024. The gross increase of $206 million compared to the prior period reflects changes in fund valuations associated with the fifth vintage of our infrastructure flagship fund for $103 million and the first vintage of our global transition flagship fund for $94 million. This was partially offset by a decrease of $149 million driven by lower relative valuations across mature real estate flagship funds.
Previous wording
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 (income) loss attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM was $94 million for the three months ended June 30, 2025, compared to $54 million for the three months ended June 30, 2024.
Current wording
Carried interest allocations generated by new funds are 66.7% attributable to BAM and 33.3% to BN. Within the condensed consolidated statements of operations, carried interest allocations are presented on a 100% basis and the portion attributable to BN is presented in net loss (income) attributable to non-controlling interest in consolidated entities. Unrealized carried interest allocations attributable to BAM was $241 million for the three months ended September 30, 2025, compared to $104 million for the three months ended September 30, 2024.
Previous wording
Interest and dividend revenue for the three months ended June 30, 2025 was $34 million, which represents a decrease of $2 million compared to the three months ended June 30, 2024. The decrease was due to lower interest revenue earned on our deposit with BN.
Current wording
Interest and dividend revenue for the three months ended September 30, 2025 was $24 million, which represents a decrease of $10 million compared to the three months ended September 30, 2024. The decrease was due to lower interest revenue earned on our deposit with BN.
Previous wording
Interest and dividend revenue of consolidated funds for the three months ended June 30, 2025 was $8 million, which represents interest and dividends earned from investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Current wording
Interest and dividend revenue of consolidated funds for the three months ended September 30, 2025 was $7 million, which represents interest and dividends earned from investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Previous wording
Total expenses for the three months ended June 30, 2025 were $557 million, an increase of $224 million or 67% compared to the three months ended June 30, 2024.
Current wording
Total expenses for the three months ended September 30, 2025 were $495 million, an increase of $19 million or 4% compared to the three months ended September 30, 2024.
Previous wording
Compensation and benefits for the three months ended June 30, 2025 were $404 million, which represents an increase of $127 million compared to the three months ended June 30, 2024. An increase of $103 million was attributable to higher share and performance-based compensation expense on our cash-settled awards due to an increase in the trading price of BAM Class A Shares during the period. The remaining increase is due to higher compensation costs from the ongoing growth of our business.
Current wording
Compensation and benefits for the three months ended September 30, 2025 was $379 million, which represents an increase of $53 million compared to the three months ended September 30, 2024. An increase of $30 million was attributable to higher share and performance-based compensation expense on our cash-settled awards due to an increase in the trading price of BAM Class A Shares during the period. The remaining increase is due to higher compensation costs from the ongoing growth of our business.
Previous wording
Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses were broadly consistent with the prior period at $82 million for the three months ended June 30, 2025, compared to $78 million for the three months ended June 30, 2024.
Current wording
Other operating expenses are comprised of professional fees, facilities costs, as well as costs directly associated with our fundraising and investment functions. Other operating expenses were broadly consistent with the prior period at $87 million for the three months ended September 30, 2025, compared to $84 million for the three months ended September 30, 2024.
Previous wording
Compensation expenses related to carried interest allocation compensation were $16 million for the three months ended June 30, 2025, which represents a change of $56 million compared to the three months ended June 30, 2024. This was primarily driven by higher relative valuation gains across certain infrastructure and private equity funds compared to the three months ended June 30, 2024. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds during the period was $4 million.
Current wording
Compensation expenses related to carried interest allocation recovery (compensation) was $20 million for the three months ended September 30, 2025, which represents a change of $58 million compared to the three months ended September 30, 2024. This was primarily driven by lower relative valuations across certain real estate funds compared to the three months ended September 30, 2024. The carried interest compensation expense associated with mature funds is fully recoverable from BN. Carried interest compensation expense on new funds during the period was $9 million.
Previous wording
Other (expenses) income, net for the three months ended June 30, 2025 totaled $68 million compared to other income of $24 million in the prior period. This was driven by a mark-to-market decrease of $55 million compared to the prior period on our investment in BSREP III, and the remaining movement was due to mark-to-market movements on put and call options to acquire additional interests in Oaktree, Primary Wave, LCM and Castlelake.
Current wording
Other expenses, net for the three months ended September 30, 2025 totaled $107 million compared to other expenses of $69 million in the prior period. This increase was driven by a mark-to-market loss of $74 million in our investment in BSREP III during the three months ended September 30, 2025 compared to a loss of $41 million during the three months ended September 30, 2024. The remaining increase was due to mark-to-market revaluations on put and call options to acquire additional interests in various partner managers.
Previous wording
Other income, net of consolidated funds for the six months ended June 30, 2025 was $13 million compared to $nil in the prior period. This represents the underlying fair value changes of investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Current wording
Other income, net of consolidated funds for the three months ended September 30, 2025 was $10 million compared to $nil in the prior period. This represents the underlying fair value changes of investments held by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds.
Previous wording
Income tax expense was $75 million for the three months ended June 30, 2025, which represents a decrease of $67 million compared to the three months ended June 30, 2024. The decrease in income tax expense was predominantly a result of lower taxable income reported by our business compared to the prior period.
Current wording
Income tax expense was $78 million for the three months ended September 30, 2025, which represents a decrease of $18 million compared to the three months ended September 30, 2024. The decrease in income tax expense was predominantly a result of lower taxable income compared to the prior period.
Previous wording
Net loss attributable to preferred redeemable non-controlling interest was $99 million for the three months ended June 30, 2025 primarily due to lower valuations in certain mature real estate funds.
Current wording
Net loss attributable to preferred redeemable non-controlling interest was $165 million for the three months ended September 30, 2025 primarily due to lower valuations in certain mature real estate funds.
Previous wording
Net income attributable to non-controlling interest of consolidated entities was $54 million for the three months ended June 30, 2025. BAM recognizes carried interest income on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest revenue is attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the period.
Current wording
Net income attributable to non-controlling interest of consolidated entities was $127 million for the three months ended September 30, 2025. BAM recognizes carried interest income on new funds within our condensed consolidated statements of operations on a gross basis. On new funds, 33.3% of carried interest revenue is attributable to BN. This balance is primarily the carried interest generated on new funds that is attributable to BN and fluctuates depending on the carried interest generated on new funds during the period.
Previous wording
For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $9 million for the three months ended June 30, 2025.
Current wording
For income earned by certain funds in which BAM holds a sufficient interest to require the consolidation of the funds, a portion of the income earned is attributable to other parties invested in the funds. Net income attributable to non-controlling interest of consolidated funds was $6 million for the three months ended September 30, 2025.
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Previous report — wording carried elsewhere
Net cash outflows from investing activities totaled $490 million, compared to outflows of $452 million in the prior period. Outflows are primarily due to investments of $522 million associated with our step-up in ownership of Oaktree, Primary Wave and participation in Castlelake's acquisition of Concora.