RELATED PARTY TRANSACTIONS |
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| 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 three months ended March 31, 2026, the Company recorded revenues of $1.3 billion (2025 – $1.0 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 condensed consolidated statements of operations on a gross basis as the instruments vest or are incurred. During the three months ended March 31, 2026, BAM recognized recharges of $161 million (2025 – $39 million), in the condensed consolidated statements of operations in other revenues under this arrangement. Due from affiliates and due to affiliates consisted of the following:
Due from affiliates Due from affiliates of $2.9 billion (2025 – $3.3 billion) consists of $1.7 billion (2025 – $1.7 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. The remaining $1.3 billion (2025 – $1.6 billion) represents receivables from affiliates related to share and cash-based compensation. Due to affiliates Due to affiliates of $932 million (2025 – $720 million) 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. 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. During the three months ended March 31, 2026, a $400 million cash deposit from Oaktree was transferred from BN to BAM, with the corresponding payable to Oaktree recorded in due to affiliates. For the three months ended March 31, 2026 the Company recognized tax attributes purchased from a related party of $19 million (2025 – $38 million). Other related party transactions Accounts payable include amounts payable under a tax receivable agreement with Oaktree for $116 million as of March 31, 2026 (December 31, 2025 – $116 million). Other liabilities as of March 31, 2026 include $34 million (December 31, 2025 – $46 million) of lease liabilities associated with related parties. 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 condensed consolidated statement of operations. Cash equivalents comprise of a deposit with BN of $636 million (2025 – $1.1 billion). 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.
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