
AS OF JUNE 30, AND DECEMBER 31, (MILLIONS)	2026		2025
Common and preferred shares (a)	$	171	$	337
Investments in affiliates (b)	692		787
Accrued carried interest - mature funds (c)	69		197
Accrued carried interest - new funds (c)	2,413		1,636
Equity method investments (d)
Equity interest in Oaktree	4,752		4,671
Equity interest in Castlelake	734		720
Equity interest in Primary Wave	290		261
Equity interest in Angel Oak	139		133
Equity interest in Pretium	260		330
Equity interest in other affiliates	840		723
	$	10,360	$	9,795

a.As of June 30, 2026, common and preferred shares were $171 million (2025 – $337 million). Common shares primarily represents investments of $64 million (2025 – $64 million) in Brookfield Renewable Energy L.P., $27 million (2025 – $27 million) in Brookfield Infrastructure Income Fund Inc, and a $79 million (2025 – $nil) investment in Oaktree Strategic Credit Fund (“OSCF”) made during the three months ended June 30, 2026, representing an approximate 1.7% interest. Common and preferred share investments are carried at either fair value or cost less impairment. Changes in fair value of investments are recorded in other (expenses) income, net in the condensed consolidated statements of operations, and investments measured at cost are assessed for impairment with losses recognized in other (expenses) income, net. During the six months ended June 30, 2026, BAM sold its preferred share investments in GEMS Education (2025 – $188 million) and Cherry Parent, LLC. (2025 – $58 million) to BMEP and BPE, respectively. As a result of these transactions, BAM determined that it is the primary beneficiary of BMEP and BPE and will therefore consolidate both funds. Accordingly, the investments in GEMS Education and Cherry Parent, LLC are now included within investments in consolidated funds in the condensed consolidated balance sheets.

b.As of June 30, 2026, investments in affiliates is primarily comprised of an interest in BSREP III, a fund which BAM manages, of $600 million (2025 – $700 million) 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 $8 million (2025 – $39 million) and $27 million (2025 – $78 million) for the three and six months ended June 30, 2026, respectively and is recorded within other (expenses) income, net in the condensed 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 three and six months ended June 30, 2026 and 2025 is as follows:


	Three Months Ended				Six Months Ended
FOR THE PERIODS ENDED JUNE 30, (MILLIONS)	2026		2025		2026		2025
Balance, beginning	$	96	$	804	$	197	$	931
Changes in fund fair values	(27)		(204)		(126)		(331)
Realized carried interest	—		—		(2)		—
Balance, ending	$	69	$	600	$	69	$	600

The change in BAM’s accrued carried interest for new funds during the three and six months ended June 30, 2026 and 2025 is as follows:


	Three Months Ended				Six Months Ended
FOR THE PERIODS ENDED JUNE 30, (MILLIONS)	2026		2025		2026		2025
Balance, beginning	$	1,833	$	822	$	1,636	$	693
Changes in fund fair values	580		141		791		270
Realized carried interest	—		—		(14)		—
Balance, ending	$	2,413	$	963	$	2,413	$	963

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 $199 million (2025 – $181 million) and $269 million (2025 – $239 million) for the three and six months ended June 30, 2026, respectively within the share of income from equity method investments in its condensed consolidated statements of operations. The Company’s equity method investments include our:

vi.approximate 8% (2025 – 11%) economic interest in Pretium of $260 million (2025 – $330 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. During the six months ended June 30, 2026, BAM sold a partial interest in Pretium for cash consideration of $70 million, resulting in a realized gain of $4 million. In the same period, a $4 million decrease in the fair value of the remaining investment has been recognized, primarily reflecting lower market valuation multiples;

vii.limited partner interests in funds of $391 million (2025 – $368 million) include Pinegrove Fund (2026 – $302 million; 2025 – $230 million), and BGTF II (2026 – $74 million; 2025 – $36 million). During the six months ended June 30, 2026, the Company determined that it is the primary beneficiary of BPE and therefore consolidates the fund. As a result, the Company derecognized its limited partner interests in BPE of $88 million (2025 - $92 million) and;


AS OF JUNE 30, AND DECEMBER 31, (MILLIONS)	Fair value				% of total investments
	2026		2025		2026		2025

Equity securities, at fair value	$	2,509	$	253	81	%	50	%
Debt, at fair value	577		252		19	%	50	%
Freestanding derivatives	4		—		—	%	—	%
Total investments, at fair value	$	3,090	$	505	100	%	100	%

Other income, net of consolidated funds in the condensed 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 three and six months ended June 30, 2026, there were $70 million (2025 – $13 million) and $81 million (2025 – $27 million) of income recognized, respectively, within other income, net of consolidated funds on the condensed consolidated statements of operations.

BAM continues to be the primary beneficiary of and consolidate BSI II. During the six months ended June 30, 2026, BSI II sold a portion of its debt and equity interests in Spring Education to BWS, a limited partner in the fund, in exchange for cash consideration of $129 million.

During the six months ended June 30, 2026, BAM increased its economic interest in BPE and determined it was the primary beneficiary of the fund. As a result, BAM was required to consolidate the fund and derecognize its equity method investment in BPE of $88 million beginning on March 1, 2026. Upon consolidation, the Company recognized approximately $104 million of cash of consolidated funds, $1.7 billion of investments of consolidated funds, and $143 million of due to affiliates of consolidated funds. The interests of related party and third-party investors were recorded as redeemable non-controlling interest in consolidated funds, and management fees and other transactions with BPE were eliminated upon consolidation.

During the three months ended June 30, 2026, Spring Education was transferred to BPE from BSI II, both of which are consolidated funds of BAM. The Spring Education investment is therefore still consolidated by BAM. In accordance with ASC 810, BAM will consolidate the Spring Education co-investment holding entities as part of the consolidated fund total. This resulted in the recognition of an additional $483 million of consolidated fund investments and non-controlling interest beyond the original Spring Education investment on BAM's condensed consolidated balance sheets, with no impact to net income.

During the six months ended June 30, 2026, BAM increased its economic interest in BMEP and determined it was the primary beneficiary of the fund. As a result, BAM was required to consolidate the fund beginning on January 30, 2026. Upon consolidation, the Company recognized approximately $245 million of investments of consolidated funds and $211 million of borrowings of consolidated funds. The interests of third-party investors were recorded as non-controlling interests in consolidated funds, and management fees and other transactions with BMEP were eliminated upon consolidation.

During the three months ended June 30, 2026, BAM provided approximately $217 million of temporary warehouse funding in connection with the acquisition of U.S. Manufactured Housing, pending funding by committed investors. During the period, the warehouse positions were syndicated to the underlying investors, including approximately $125 million transferred to BREVA-H, while the remaining warehouse positions were settled with third-party investors.