A commitment to progress

From its strategic expansions into the U.K. and Irish markets to its leadership in the Chinese asset management sector, Power Corporation has consistently demonstrated innovation and adaptability in a rapidly evolving global economy. Between 2010 and 2018, the Corporation achieved significant milestones, including Great-West Lifeco’s targeted acquisitions, ChinaAMC's prominent role in asset management, and advancements across healthcare and financial services — reinforcing its commitment to excellence, long-term value creation, cultural inclusion, and responsible management.

This decade also marked the Desmarais family's 50 years at the helm of Power Corporation, alongside a continued partnership with the Frère family, reflecting the Corporation's dedication to shaping a sustainable future for generations to come.

Sadly, this period also saw the passing of Paul Desmarais, whose passion and energy had served the company for some 45 years.

Power continued to be involved in selected investment projects in China and, in 2004, became one of the first Canadian companies to be granted a Qualified Foreign Institutional Investor (QFII) licence by the Chinese government, which allowed it to invest directly in Chinese public companies.

In late 2011, Power Corporation acquired a 10% stake in China Asset Management Co. (ChinaAMC). Recognized as a leading company in the Chinese asset management sector, ChinaAMC, established in 1998, was one of the first asset management companies to receive approval from the China Securities Regulatory Commission.

In 2017, Power Corporation acquired an additional 3.9 per cent interest in ChinaAMC, bringing the Corporation’s interest to 13.9 per cent. At the same time, IGM Financial, through its subsidiary Mackenzie Investments, also acquired a 13.9 per cent interest in ChinaAMC, bringing the group’s joint holdings to 27.8 per cent.

Olivier Desmarais, son of André Desmarais, and Paul Desmarais III, son of Paul Desmarais, Jr., joined the group of companies in May 2014 and were appointed Senior Vice-Presidents in 2017. They each play a distinct role within the group based on their respective areas of expertise.

Paul III’s responsibilities include the management and growth of the multi-strategy alternative asset manager Sagard (formerly Sagard Holdings), in his role of Chairman and CEO. Sagard invests across four asset classes including private equity, private credit, healthcare royalties, and venture capital, and also offers wealth management services. Paul III is also Chairman of Wealthsimple, one of Canada’s leading financial technology companies, and Dialogue, Canada’s largest telemedicine company. He is deeply engaged in the Canadian entrepreneurial landscape having co-founded Diagram Ventures and Portage Ventures (formerly Portag3 Ventures).

As Chairman and CEO of Power Sustainable, Olivier steered the transformation of the company into a global multi-platform sustainability-led alternative asset manager. At its creation, Power Sustainable is comprised of two proven investment platforms aiming to steadily create long-term value: the Renewable Energy Infrastructure platform invests in the development, construction and operations of renewable energy infrastructure assets in North America, while the Pacific platform invests in China’s public equity markets. Continuing to nurture the long-lasting relationships Power Corporation has built in China since the early 1970s, Olivier serves as Chairman of the Canada China Business Council.

In 2015, Great-West Lifeco’s U.K. subsidiary, Canada Life (U.K.), made two acquisitions to support building the Europe businesses through targeted growth. Acquiring the annuity business of The Equitable Life Assurance Society enhanced its strong position in the U.K. retirement income market. Later, the acquisition of Legal & General International (Ireland) strengthened the company’s offshore bonds investment business.

Later the same year, Great-West Lifeco, through its indirect wholly-owned subsidiary Canada Life (U.K.), completed the acquisition of Legal & General International (Ireland)(LGII), a provider of investment and wealth management solutions for high-net-worth individuals primarily in the United Kingdom. Launched in 2007, LGII was a subsidiary of Legal & General Group based in Dublin, Ireland, a country with leading international financial services. This acquisition provided an opportunity for Great-West Lifeco to strengthen the offshore bonds investment business and gain access to new institutional relationships within the U.K. market.

Power Corporation has prospered over the years through the expertise and hard work of its many employees. Several senior executives stand out for having devoted much of their careers to the Corporation.

Raymond L. McFeetors retired as President and CEO of Great-West Lifeco in 2008, following a distinguished 40-year career and numerous important contributions to the company’s growth and success, including 16 years as President and CEO of Great-West Life. He was appointed Chairman of Great-West Lifeco and was elected to the Board of Directors of Power Financial and named Vice-Chairman. He retired from Power Financial in 2013 but continued to serve as a director of Great-West Lifeco until 2014.

John A. Rae, one of Power’s longest-serving officers, joined the Corporation in 1971 as Executive Assistant to the Chairman and Chief Executive Officer, Paul Desmarais. In 1978, Mr. Rae became a Vice-President and in 1991, he assumed the responsibilities of Executive Vice-President. In 1988, he was elected to Power’s Board of Directors and served as a Director until 2012. During his 47 years with the company, Mr. Rae worked with all three generations of the Desmarais family, and played an integral role in guiding Power through numerous transformations. He was also instrumental in developing and implementing the company’s community investment initiatives. Mr. Rae retired in 2018 from the Power Group.

J. Edward Johnson joined the Corporation in 1985 after a number of executive positions in both the private and public sectors. He was Senior Vice-President, General Counsel and Secretary until 2012. During his tenure, he played a key role in the development of Power, in addition to his role as the Corporation’s spokesperson. As Secretary of Power, he guided the Corporation’s governance structure and practices and ensured regulatory compliance during a time when this topic came under increasing public scrutiny. He continues to serve the Corporation as a special advisor.

Gérard Veilleux served as President of Power Communications Inc., a Power Corporation subsidiary, from 1994 until 2015 and was Vice-President of Power Corporation from 1998 until 2009. He served as Chairman of the Executive Committee of the Board of Gesca and La Presse until 2015. It was under the leadership of Mr. Veilleux that La Presse established its digital strategy including the development and launch of the La Presse+ application for tablets. He continues to serve the Corporation as a special advisor.

Many financial technology (fintech) ventures were launched worldwide in the 2010s, addressing virtually every market sector of the financial services industry. As a large incumbent player with millions of clients, the Power Group was intent on knowing how the industry would change and how best to serve clients in the future.

Power Financial, in partnership with Great-West Lifeco and IGM Financial, elaborated a multi-pronged strategy in the fintech area: help existing financial services businesses transform their models and enrich their clients’ experiences while providing an attractive return on the capital invested.

In line with this vision, the group announced in 2016 the formation of a new investment fund, Portage Ventures (formerly Portag3 Ventures), which today is the venture business of multi-strategy alternative asset manager, Sagard (formerly Sagard Holdings). This fund is dedicated primarily to backing innovative financial services companies that have the potential for change and global impact. A second fund, Portage Ventures II (formerly Portag3 Ventures II), was launched in 2018.

2018 marked the 50^th anniversary of the Desmarais family’s commitment to Power Corporation. While the Corporation’s portfolio has changed significantly since Paul Desmarais became the controlling shareholder in 1968, the fundamental values driving the investments have not. Throughout the past fifty years, the family has consistently put forth its belief in a sound investment philosophy, long-term relationships, and personal commitment to communities.

As controlling shareholders, the Desmarais family considers itself a steward of this company and its businesses. Above and beyond this stewardship, they consider it their duty to grow and develop the Corporation for the upcoming generations of the family and for all shareholders. This deeply held conviction has had a profound influence on how the business has been managed in the past and continues to be managed today to ensure a sustainable future.

The members of the Desmarais family also feel fortunate to have worked with generations of like-minded women and men who have shared their values, their vision, and their passion. In a letter in Power Corporation’s 2018 Annual Report, Paul Desmarais, Jr. and André Desmarais expressed their gratitude to employees, past and present:

Later in 2018, Canada Life (U.K.) sold a block of 155,000 heritage policies with assets and liabilities of £2.7 billion (C$4.7 billion) to Scottish Friendly Assurance Society Limited. This allowed Canada Life to focus on its core market of annuities, wealth management, group and individual protection, as well as retirement solutions markets, while benefiting customers through Scottish Friendly’s established expertise and scale.