v3.26.1
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
Fair value approximates carrying value for the following financial instruments that are not measured at fair value in the condensed consolidated financial statements: cash, accounts receivable and other, net, accounts payable and other, net, due to affiliates, due to affiliates of consolidated funds and due from affiliates.
Financial Instruments
The following tables summarize the fair value hierarchy of financial assets and liabilities of the Company that are measured at fair value as of June 30, 2026 and December 31, 2025:
AS OF JUNE 30, 2026
(MILLIONS)
Level ILevel IILevel IIINAVTotal
Assets
Cash equivalents$1,201 $— $— $— $1,201 
Financial assets— 6 500 — 506 
Investments:
Common and preferred shares— — — 107 107 
Investments in affiliates— — — 600 600 
Equity method investments under fair value option— — 260 — 260 
Total assets at fair value$1,201 $6 $760 $707 $2,674 
Liabilities
Financial liabilities$— $14 $467 $— $481 
Total liabilities at fair value$— $14 $467 $— $481 
AS OF DECEMBER 31, 2025
(MILLIONS)
Level ILevel IILevel IIINAVTotal
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 
Level III Measurements
The fair value measurement of items categorized in Level III of the fair value hierarchy is subject to valuation uncertainty arising from the use of significant unobservable inputs. The significant unobservable inputs used in the fair value measurement of financial assets
and liabilities recurringly measured at fair value are discount rates, capitalization rates, volatility assumptions, and inputs to prescribed settlement formulas on certain of our options. Significant changes in these inputs in isolation would have resulted in a significantly higher or lower fair value measurement.
The following tables summarize the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of June 30, 2026 and December 31, 2025:
AS OF JUNE 30, 2026
(MILLIONS)
Asset/LiabilityFair ValueValuation
Techniques		Unobservable 
Inputs		RangesWeighted
Average (a)		Impact to Valuation from an Increase in Input
Financial assets (b)$500 Option pricing modelVolatility
35% - 40%
39 %Higher
Discount rate
3% - 9%
5 %Lower
Common and preferred shares (c)— Market approachN/AN/AN/AN/A
Equity method investments under fair value option (d)260 Market approachN/AN/AN/AN/A
Financial liabilities (e)467 Option pricing modelVolatility
25% - 40%
35 %Higher
Discount rate
3% - 4%
4 %Lower
AS OF DECEMBER 31, 2025
(MILLIONS)
Asset/LiabilityFair ValueValuation
Techniques		Unobservable 
Inputs		RangesWeighted
Average (a)		Impact to Valuation from an Increase in Input
Financial assets (b)$410 Option pricing modelVolatility
35% - 40%
39 %Higher
Discount rate
3% - 9%
5 %Lower
Common and preferred shares (c)310 Market approachN/AN/AN/AN/A
Equity method investments under fair value option (d)330 Market approachN/AN/AN/AN/A
Financial liabilities (e)444 Option pricing modelVolatility
25% - 40%
35 %Higher
Discount rate
3% - 4%
4 %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 or BN Class A Shares 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 economic interest in Pretium. The fair value of these instruments is determined quarterly using a Monte Carlo simulation and various inputs prepared by management.
(c)Preferred shares represent $nil of preferred shares in GEMS Education (2025 – $188 million) and $nil preferred shares of Cherry Parent, LLC (2025 – $58 million). Preferred share investments are carried at fair value with changes in fair value recorded in the condensed consolidated statements of operations.
(d)Equity method investments under fair value option represents an 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 the condensed consolidated statements of operations.
(e)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 or BN Class A Shares 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.
Level III Changes in Fair Value
During the three and six months ended June 30, 2026 and 2025, there have been no changes in valuation techniques within Level III that have had a material impact on the valuation of financial instruments.
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) income, net in the condensed consolidated statements of operations.
AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2026
(MILLIONS)
Financial assetsCommon and preferred sharesEquity method investments under fair value optionFinancial liabilities
Balance, beginning$433 $64 $260 $453 
Fair value changes in net income67 — — 40 
Transfers— (64)— — 
Payments— — — (26)
Balance, ending$500 $— $260 $467 
AS OF AND FOR THE SIX MONTHS ENDED JUNE 30, 2026
(MILLIONS)
Financial assetsCommon and preferred sharesEquity method investments under fair value optionFinancial liabilities
Balance, beginning$410 $310 $330 $444 
Fair value changes in net income90 65 (4)49 
Disposals— — (66)— 
Transfers— (375)— — 
Payments— $— $— $(26)
Balance, ending$500 $— $260 $467 
AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2025
(MILLIONS)
Financial assetsCommon and preferred sharesEquity method investments under fair value optionFinancial liabilities
Balance, beginning$209 $366 $331 $302 
Fair value changes in net income81 2 (20)100 
Purchases— — 40 — 
Balance, ending$290 $368 $351 $402 
AS OF AND FOR THE SIX MONTHS ENDED JUNE 30, 2025
(MILLIONS)
Financial assetsCommon and preferred sharesEquity method investments under fair value optionFinancial liabilities
Balance, beginning$231 $363 $351 $228 
Fair value changes in net income59 5 — 113 
Purchases— — — 61 
Balance, ending$290 $368 $351 $402 
Financial Instruments of Consolidated Funds
The following tables summarize the fair value hierarchy of financial assets and liabilities measured at fair value for the Company's consolidated funds as of June 30, 2026 and December 31, 2025:
2026
2025
AS OF JUNE 30, AND DECEMBER 31,
(MILLIONS)
Level ILevel IILevel IIITotalLevel ILevel IILevel IIITotal
Assets
Investments in equity securities$— $— $2,509 $2,509 $— $— $253 $253 
Investments in debt— — 577 577 — — 252 252 
Freestanding derivatives— 4 — 4 — — — — 
Total assets at fair value$— $4 $3,086 $3,090 $— $— $505 $505 
Liabilities
Borrowings$589 $— $— $589 $462 $— $— $462 
Total liabilities at fair value$589 $— $— $589 $462 $— $— $462 
Level III Measurements of Consolidated Funds
AS OF JUNE 30, 2026
(MILLIONS)
Level III Asset/LiabilityFair ValueValuation
Techniques		Unobservable InputsRangesWeighted
Average (a)		Impact to Valuation from an Increase in Input
Investments in equity securities$2,509 Discounted cash flowsWACC
10% - 19%
12 %Lower
Terminal multiple
8.7x - 18.0x
11.6xHigher
Hypothetical liquidation approachEBITDA multiple
7.7x
7.7xHigher
Market approachN/AN/AN/AN/A
Investments in debt577 Par (net of amortized discount) plus
accrued interest		Discount rate
14%
14 %Lower
AS OF DECEMBER 31, 2025
(MILLIONS)
Level III Asset/LiabilityFair ValueValuation
Techniques		Unobservable 
Inputs		RangesWeighted
Average (a)		Impact to Valuation from an Increase in Input
Investments in equity securities$253 Market approachN/AN/AN/AN/A
Investments in debt252 Par (net of amortized
discount) plus
accrued interest		Discount rate14%14%Lower

Level III Changes in Fair Value of Consolidated Funds
AS OF AND FOR THE THREE MONTHS ENDED
JUNE 30, 2026
(MILLIONS)
Investments in debtInvestments in equity securities
Balance, beginning$170 $2,212 
Fair value changes in net income17 54 
Initial consolidation of funds390 72 
Purchases, net— 171 
Dispositions, net— — 
Balance, ending$577 $2,509 
AS OF AND FOR THE SIX MONTHS ENDED
JUNE 30, 2026
(MILLIONS)
Investments in debtInvestments in equity securities
Balance, beginning$252 $253 
Fair value changes in net income17 61 
Initial consolidation of funds431 1,954 
Purchases, net— 254 
Dispositions, net(123)(13)
Balance, ending$577 $2,509 
AS OF AND FOR THE THREE MONTHS ENDED
JUNE 30, 2025
(MILLIONS)
Investments in debtInvestments in equity securities
Balance, beginning$— $422 
Fair value changes in net income5 8 
Purchases, net241 68 
Balance, ending$246 $498 
AS OF AND FOR THE SIX MONTHS ENDED
JUNE 30, 2025
(MILLIONS)
Investments in debtInvestments in equity securities
Balance, beginning$— $251 
Fair value changes in net income5 22 
Purchases, net241 225 
Balance, ending$246 $498