Brookfield Asset Management Ltd.BAM
Brookfield Asset Management Ltd. Segments Disclosure
. SEGMENT REPORTING
The Company operates through five distinct operating segments that earn management fees from each respective investment strategy. The performance of these segments is reviewed by the Chief Executive Officer, who acts as the CODM. The CODM uses internal management reports to assess performance and allocate resources, and the information provided herein is consistent with the Company's internal reporting structure and information reviewed by the CODM on a regular basis. The Company's operating segments are comprised of:
•Infrastructure: Primarily includes managing our flagship infrastructure fund series focused on investing in high-quality infrastructure assets on a value basis. In addition, we manage permanent capital vehicles and perpetual strategies which include BIP, listed on the NYSE and TSX.
•Renewable Power and Transition: Primarily includes managing our flagship renewable power and transition fund series focused on investments aimed at accelerating the global transition to a net-zero carbon economy and driving clean energy investments in emerging markets. In addition, we manage BEP, which is listed on the NYSE and TSX.
•Private Equity: Includes managing our global opportunistic flagship funds, special investments strategy, secondaries strategy, thematic private equity strategies and regional private equity strategies. In addition, we manage 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 listed on the NYSE and TSX.
•Real Estate: Includes the management of our opportunistic real estate flagship fund series and secondaries strategy. In addition, we manage BPG and certain other perpetual funds focused on core plus assets and a non-traded REIT.
•Credit: Includes managing our private credit strategies, opportunistic credit strategies, structured credit strategies, and liquid credit strategies. These products seek to provide flexible, specialized capital solutions to borrowers and deliver attractive risk-adjusted returns to our clients across a range of debt strategies.
Asset information by segment is not disclosed because this information is not used by the CODM to make resource deployment decisions or evaluate the performance of the Company's segments.
Segment Revenues
Segment Revenues is a key metric analyzed by the CODM to determine the growth in recurring cash flows from our asset management business. Segment Revenues include base management fees, advisory fees, performance fees and transaction fees, but excludes incentive distributions, carried interest and revenues of consolidated funds. In addition, Segment Revenues include management fees earned by Oaktree on a 100% basis along with our share of Segment Earnings of partner managers excluding Oaktree. See below for our reconciliation of total revenues as presented on the consolidated statements of operations to Segment Revenues.
FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Revenues | |||||||||||||||||
| Total Revenues | $ | 4,817 | $ | 3,980 | $ | 4,062 | |||||||||||
| Add: Fee revenues of equity method investments | 1,458 | 1,313 | 1,214 | ||||||||||||||
| Less: Incentive distributions | (560) | (424) | (378) | ||||||||||||||
Less: Carried interest allocations(a) | (209) | (16) | (399) | ||||||||||||||
| Less: Interest and dividend revenue | (98) | (143) | (172) | ||||||||||||||
| Less: Interest and dividend revenue of consolidated funds | (31) | — | — | ||||||||||||||
Less: Other revenues(b) | (264) | (232) | (194) | ||||||||||||||
Less: Costs recovered from affiliates(c) | (298) | (218) | (156) | ||||||||||||||
| Total Segment Revenues | $ | 4,815 | $ | 4,260 | $ | 3,977 | |||||||||||
| (a) This adjustment removes the impact of both unrealized and realized carried interest allocations. | ||
| (b) This adjustment removes other revenues earned that are non-cash in nature, which include certain cost recoveries and reimbursements from affiliates. | ||
| (c) This adjustment removes the impact of compensation costs that will be borne by affiliates. | ||
Segment Expenses
Segment Expenses reflect direct costs associated with earning Segment Revenues, which include compensation and benefits, facilities, technology, professional fees and travel and other operating expenses. Expenses such as depreciation and amortization, taxes, interest expense, mark-to-market gains (losses), transaction related costs, non-recurring gains (losses), deferred compensation, and expenses of consolidated funds are not reflective of segment performance and are therefore excluded from Segment Expenses. In addition, Segment Expenses include segment related expenditures of Oaktree on a 100% basis. See below for our reconciliation of total expenses as presented on the consolidated statements of operations to Segment Expenses.
| FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Expenses | |||||||||||||||||
| Total Expenses | $ | 2,044 | $ | 1,680 | $ | 1,546 | |||||||||||
Add: Expenses of equity method investments(a) | 906 | 880 | 815 | ||||||||||||||
Less: Costs recovered from affiliates(b) | (298) | (218) | (156) | ||||||||||||||
Less: Total carried interest allocation compensation(c) | (146) | (93) | (86) | ||||||||||||||
| Less: Interest expense | (87) | (22) | (14) | ||||||||||||||
Less: Other costs(d) | (72) | (103) | (105) | ||||||||||||||
| Less: Interest expense of consolidated funds | (28) | — | — | ||||||||||||||
| Total Segment Expenses | $ | 2,319 | $ | 2,124 | $ | 2,000 | |||||||||||
| (a) This adjustment adds expenses associated with Segment Revenues of equity method investments. | ||
| (b) This adjustment removes the impact of compensation costs that will be borne by affiliates. | ||
| (c) These adjustments remove the impact of both unrealized and realized carried interest compensation expense. | ||
| (d) This adjustment removes the impact of depreciation and amortization and certain capital depreciation costs recharged from BAM's affiliates as well as the impact of non-asset management costs related to non-recurring costs not core to the asset management business. | ||
Total Segment Expenses is comprised of the following major categories:
| FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Total segment compensation and benefits | $ | 1,674 | $ | 1,570 | $ | 1,491 | |||||||||||
| Total segment facilities, technology and professional fees | 335 | 370 | 357 | ||||||||||||||
| Total segment travel and other operating expenses | 310 | 184 | 152 | ||||||||||||||
| Total Segment Expenses | $ | 2,319 | $ | 2,124 | $ | 2,000 | |||||||||||
Segment Earnings
Segment Earnings are computed as Segment Revenues less Segment Expenses and are used to provide additional insight into the operating profitability of our asset management activities. These earnings are recurring in nature and not based on future realization events.
The following tables present the financial data for the Company’s five segments for the years ended December 31, 2025, 2024 and 2023:
FOR THE YEAR ENDED DECEMBER 31, 2025 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | 967 | $ | 682 | $ | 450 | $ | 1,083 | $ | 1,633 | $ | 4,815 | |||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | (255) | (168) | (244) | (364) | (643) | (1,674) | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | (51) | (28) | (57) | (75) | (124) | (335) | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | (41) | (35) | (28) | (41) | (165) | (310) | |||||||||||||||||||||||||||||
| Segment Earnings | $ | 620 | $ | 451 | $ | 121 | $ | 603 | $ | 701 | $ | 2,496 | |||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2024 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | 907 | $ | 513 | $ | 470 | $ | 968 | $ | 1,402 | $ | 4,260 | |||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | (235) | (132) | (235) | (340) | (628) | (1,570) | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | (64) | (26) | (51) | (93) | (136) | (370) | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | (7) | (9) | (23) | (28) | (117) | (184) | |||||||||||||||||||||||||||||
| Segment Earnings | $ | 601 | $ | 346 | $ | 161 | $ | 507 | $ | 521 | $ | 2,136 | |||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2023 (MILLIONS) | Infrastructure | Renewable power and transition | Private equity | Real estate | Credit | Total Segments | |||||||||||||||||||||||||||||
| Segment Revenues | $ | 950 | $ | 483 | $ | 475 | $ | 920 | $ | 1,149 | $ | 3,977 | |||||||||||||||||||||||
| Segment Expenses | |||||||||||||||||||||||||||||||||||
| Compensation and benefits | (223) | (116) | (229) | (360) | (563) | (1,491) | |||||||||||||||||||||||||||||
| Facilities, technology and professional fees | (69) | (23) | (49) | (98) | (118) | (357) | |||||||||||||||||||||||||||||
Travel and other operating expenses(a) | (4) | (8) | (20) | (34) | (86) | (152) | |||||||||||||||||||||||||||||
| Segment Earnings | $ | 654 | $ | 336 | $ | 177 | $ | 428 | $ | 382 | $ | 1,977 | |||||||||||||||||||||||
| (a) Travel and other operating expenses include travel, sales commissions, insurance, marketing and conferences, and general and administrative costs; none of which individually are 10% or more of total Segment Expenses. | ||
See below for our reconciliation of income before taxes as presented on the consolidated statements of operations to Segment Earnings.
| FOR THE YEARS ENDED DECEMBER 31, (MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Income before taxes | $ | 2,925 | $ | 2,546 | $ | 2,554 | |||||||||||
Depreciation and amortization(a) | 68 | 14 | 14 | ||||||||||||||
Carried interest allocations, net of carried interest allocation compensation(b) | (63) | 77 | (313) | ||||||||||||||
Other income and expenses, net of other costs and non-asset management related items(c) | 274 | 182 | 220 | ||||||||||||||
| Other income, net of consolidated funds | (47) | — | — | ||||||||||||||
| Interest expense | 87 | 22 | 14 | ||||||||||||||
| Interest expense of consolidated funds | 28 | — | — | ||||||||||||||
| Interest and dividend revenue | (98) | (143) | (172) | ||||||||||||||
| Interest and dividend revenue of consolidated funds | (31) | — | — | ||||||||||||||
Other revenues(d) | (237) | (232) | (194) | ||||||||||||||
Share of income from equity method investments(e) | (402) | (339) | (167) | ||||||||||||||
Segment Earnings from equity method investments(e) | 552 | 433 | 399 | ||||||||||||||
| Incentive distributions | (560) | (424) | (378) | ||||||||||||||
| Total Segment Earnings | $ | 2,496 | $ | 2,136 | $ | 1,977 | |||||||||||
| (a) This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets as well as certain capital depreciation costs recharged from BAM's affiliates. | ||
| (b) This adjustment removes the impact of both unrealized and realized carried interest allocations and the associated compensation expense. | ||
| (c) This adjustment removes other expenses associated with fair value changes as well as the impact of other costs and non-asset management related items such as non-recurring costs that are not considered part of the ongoing asset management business. | ||
| (d) This adjustment adds back other revenues related to the recovery of compensation costs. | ||
| (e) These adjustments remove our share of income from equity method investments, included in items (a) to (d) above and includes our share of Segment Earnings from equity method investments. | ||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.