Business Context and Reporting Period
Company: Brookfield Asset Management Ltd. (BAM)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: BAM is a leading global alternative asset manager with over $1 trillion in Assets Under Management (AUM) across infrastructure, renewable power and transition, private equity, real estate, and credit. The company operates through five principal strategies and manages capital for over 2,400 institutional clients and approximately 60,000 private wealth clients globally.
Key Financial Metrics
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenues | $4.82 billion | $3.98 billion | +21% |
| Net Income | $2.40 billion | $2.11 billion | +14% |
| Net Income Attributable to Common Stockholders | $2.49 billion | $2.17 billion | +15% |
| Fee Revenues (Non-GAAP) | $5.49 billion | $4.71 billion | +17% |
| Fee-Related Earnings (Non-GAAP) | $3.00 billion | $2.46 billion | +22% |
| Distributable Earnings (Non-GAAP) | $2.70 billion | $2.36 billion | +14% |
| Fee-Bearing Capital | $603 billion | $539 billion | +12% |
| Corporate Liquidity | $3.0 billion | $1.8 billion | +67% |
| Corporate Borrowings | $2.48 billion | $0 | New Issuance |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased by $837 million (21%) driven by a 14% increase in base management fees and a 32% increase in incentive fees. Fee Revenues grew 17% to $5.5 billion.
- Fee-Bearing Capital Expansion: Increased by $64 billion (12%) to $603 billion, fueled by $91 billion in inflows (including $53 billion in credit strategies and $16 billion in real estate) and $25 billion in market valuation gains from listed affiliates (BEP, BIP, BBU).
- Capital Deployment: The asset management business deployed $65.6 billion across strategies, with Credit ($36.3 billion), Infrastructure ($10.9 billion), and Real Estate ($7.5 billion) being the largest contributors.
- Debt Issuance: BAM issued $2.5 billion in senior unsecured notes during 2025 (maturing between 2030 and 2055), increasing corporate borrowings from zero to $2.48 billion.
- Acquisitions: Acquired a 51.3% economic interest in Angel Oak (mortgage/consumer credit) for $149 million and increased its economic interest in Oaktree to approximately 74%.
- Dividends: Declared a quarterly dividend of $0.4375 per share in 2025, representing a 15% increase over the prior year. A subsequent dividend of $0.5025 per share was declared in February 2026.
Guidance, Outlook, and Risks
Outlook and Strategy:
- AI Infrastructure: Launched a $100 billion global AI Infrastructure program in partnership with NVIDIA and the Kuwait Investment Authority, anchored by the Brookfield AI Infrastructure Fund (BAIIF).
- Oaktree Acquisition: Announced a proposed transaction to acquire the remaining ~26% interest in Oaktree Capital Management for approximately $3 billion, expected to close in the first half of 2026.
- Share Repurchases: Approved a new share repurchase program for up to 36.9 million Class A Shares (approx. 10% of public float) in January 2026.
- Leadership Change: Connor Teskey was appointed CEO of BAM effective February 3, 2026, succeeding Bruce Flatt, who remains Chair of the Board.
Key Risks and Contingencies:
- Regulatory and Compliance: Subject to extensive global regulations; potential for fines or reputational damage from non-compliance.
- Market Volatility: Trading price of Class A Shares is subject to volatility due to market conditions, interest rate fluctuations, and geopolitical instability.
- Internal Controls: The 2025 Arrangement (completed Feb 2025) resulted in the exclusion of the Asset Management Company's internal controls from the 2025 evaluation, though the auditor issued an unqualified opinion on the remaining controls.
- Interest Rate Risk: Further increases in interest rates could increase borrowing costs and decrease the value of interest-sensitive assets.
Investor Verification Checklist
- Fee-Bearing Capital Quality: Verify the composition of the $603 billion Fee-Bearing Capital, noting that 87% is long-dated or perpetual, providing earnings stability.
- Oaktree Transaction Status: Monitor the progress of the proposed acquisition of the remaining Oaktree interest, including regulatory approvals and closing conditions expected in H1 2026.
- Debt Servicing: Review the impact of the new $2.5 billion senior note issuances on future interest expense and liquidity.
- Non-GAAP Reconciliations: Review the reconciliation of Distributable Earnings and Fee-Related Earnings to Net Income to understand the impact of non-cash items and carried interest.
- AI Infrastructure Deployment: Track the deployment of capital into the new $100 billion AI Infrastructure program and its impact on future fee revenues.