Brookfield Asset Management is reshuffling its senior positions as it prepares to reorganize its core investment business and develop a potential long-term succession plan for Chief Executive Officer Bruce Flatt.
The Toronto-based firm said it is on track to complete the listing of 25 percent of its wealth management business by the end of the year and said Connor Teskey will be its president, with Flatt as CEO. Mr. Teskey will continue to lead Brookfield’s renewable energy business.
Former Bank of England Governor Mark Carney will become Chairman of the newly separate entity, Brookfield Asset Management Ltd. will be called. The parent company is to be renamed Brookfield Corp. be renamed. Mr. Flatt will remain CEO there as well.
“As we look to the next phase of our growth and concurrently with the spin-off of our wealth management business before the end of 2022, we believe it is once again time to further strengthen our senior management team with the raising of the next generation of leaders,” said Herr Flatt in a letter to investors.
Brookfield shares rose 0.3 percent to $53.12 (€53). Shares are down 12 percent this year.
Nicholas Goodman will become President of the parent company in addition to his current role as Chief Financial Officer.
Anuj Ranjan will become President of the private equity group in addition to his overall asset manager business development activities.
Succession was a major talking point in private equity circles this week after Carlyle Group CEO Kewsong Lee abruptly resigned, reversing a changing of the guard at the firm. However, Mr. Flatt is only 57 years old and likely years away from stepping down from his CEO roles.
Brookfield had a record $56 billion in inflows in the second quarter, but funds from operations fell 13 percent on weaker performance from its private equity and infrastructure units.
According to a statement yesterday, Brookfield said it earned $1.4 billion in working capital, or 84 cents a share. That topped the 80 cents a share that analysts had estimated.
Fears of a recession, fueled by rising inflation and rising interest rates, have weighed on deals and IPOs – weighing on valuations and constraining private equity firms’ ability to exit investments.
Apollo Global Management’s main investment earnings plunged 83 percent as unfavorable market conditions led to a decline in asset sales, while Blackstone wrote down holdings including those tied to the technology and industrials sectors last quarter.
Brookfield sold $21 billion in assets and added $20 billion to new investments during the quarter.
https://www.independent.ie/business/world/connor-teskey-and-mark-carney-move-up-as-brookfield-shuffles-leadership-41906397.html Connor Teskey and Mark Carney move up as Brookfield shuffles the lead