Trillion-dollar alternatives manager Brookfield Asset Management named CEO Bruce Flatt as chair of the board of directors, replacing Mark Carney as he enters the race for leadership of Canada’s Liberal Party.
Carney announced his candidacy to succeed Prime Minister Justin Trudeau as leader of the party on Jan. 16. The outcome of the race will be revealed on March 25.
“Concurrent with the launch of Mr. Carney’s campaign, Brookfield has accepted his resignation from the company,” Brookfield AM said in a statement.
Carney was also head of transition investing, developing products for investors that combine positive social and environmental outcomes with strong risk-adjusted returns.
A person familiar said Carney was instrumental in Brookfield's evolution to a transition investor from a renewable power investor and that, now the platform is firmly established, his role as head of transition investing will not be replaced. Day-to-day management of the transition strategy remains under Group CEO Connor Teskey and the leadership team, the person added.
Brookfield AM's first strategy under its transition series, Brookfield Global Transition Fund I, raised $15 billion and closed in 2022. The firm is now fundraising for BGTF II and the Catalytic Transition Fund.
The first fund in the Brookfield Global Transition Fund series (BGTF I) raised a record $15 billion in 2022
He joined the firm in 2020 as vice chair and head of ESG and impact fund investing.
Flatt in the release highlighted Carney’s role in “establishing Brookfield as the leading private capital investor in the energy transition. We are sorry to see him leave, but he does so to fulfil his deep sense of public service to Canada and we wish him all the best in his new pursuit.”
Brookfield AM has raised more than $30 billion of dedicated transition capital in less than four years, Flatt added.
Carney resigns from business roles
In announcing his candidacy, Carney said he had resigned from all of his commercial roles — including his position on the global advisory board of Pacific Investment Management Co.
The board, which is chaired by former Federal Reserve Chair Ben Bernanke and also includes former U.K. Prime Minister Gordon Brown, provides $1.95 trillion manager PIMCO investment professionals with insights on global economic, political and strategic developments, and how they are relevant to financial markets.
PIMCO CEO Emmanuel Roman and CIO Dan Ivascyn said in a staff memo, seen by Pensions & Investments, that Carney would "no longer be involved in any activity or consulting role related to PIMCO, including client events" and its secular and cyclical economic forums.
During his time on PIMCO's global advisory board, "he has provided us with unique insights and perspectives, given his extensive experience as an economist, central banker and expert on climate science." His views and ideas were also noted as having been "an important input into our investment process," the memo said. Roman and Ivascyn thanked Carney for his contributions and wished him well for the next chapter in his career.
“I am no longer a senior executive at Brookfield, I am no longer a senior executive at Bloomberg, I am no longer on the board of Stripe, I am no longer on the board of PIMCO,” Carney said in his announcement, which was streamed live by various media outlets including parliamentary, political and public affairs programming network CPAC.
He also said he had resigned as United Nations Special Envoy for Climate Action and Finance.
“Just to be clear, I resigned all my roles…I am all in. I am all in in this fight, because it is so fundamentally important,” Carney said.
He also highlighted his previous experience as governor of the Bank of Canada, from 2008 to 2013, and then as governor of the Bank of England, from 2013 to 2020, as well as his work in “fighting the financial crisis, (and) helping to fix the global system.” Carney was chair of the Financial Stability Board from 2011 to 2018.
“What I’m bringing from those (experiences) is to help Canada through the immediate crisis, but really to build the strongest economy in the G7,” Carney said.
Carney also addressed the role of technology, climate change, and Donald Trump in his candidacy announcement.
“We’re living through the two biggest technical revolutions since they split the atom. And our climate is changing in ways that threatens livelihood from Fort Mac to Fort Smith. And then on top of that… in just four days the United States will swear in Donald Trump as their 47th President, a man who threatens economic force on his closest, most steadfast allies — including Canada.”
He added that he is running for leadership “because we face unprecedented challenges. And as I learned on the ice out there, when it’s cold, (and) the opponent is tough, you have to step up,” Carney said.