Power begins transformation
prior to the 2024 Annual Meeting of Power Corporation.
A path of sustainable growth and strategic expansion
Since 2019, Power Corporation has successfully transformed through a series of strategic initiatives aimed at ensuring sustained growth and success. Acquisitions in wealth and asset management further solidified the Corporation’s leadership in these sectors. Combined with new partnerships and organizational shifts, these efforts demonstrate Power Corporation’s focus on creating long-term value for its shareholders while pursuing growth opportunities in the global marketplace.
Substantial share repurchases for Great-West Lifeco, Power Financial and Power Corporation
In March 2019, Great-West Lifeco announced its intention to conduct a substantial issuer bid to repurchase for cancellation up to $2 billion of its common shares. This was following the January 2019 announcement of the sale of its U.S. individual life insurance and annuity business in order to focus on the retirement and asset management markets in the U.S. The company decided to mitigate the resulting earnings dilution by buying back common shares while maintaining the capital to fund strategic investments to drive growth and profitability. This created the opportunity to launch simultaneous substantial share buybacks at Power Corporation, Power Financial and Great-West Lifeco.
Power Financial conducted its own substantial issuer bid and repurchased $1.65 billion of its common shares. In line with its long-term value creation strategy, Power Corporation also repurchased $1.35 billion of its subordinate voting shares.
Strategic expansion in the U.S. retirement market
In early 2019, Great-West Life & Annuity Insurance Company (GWL&A), a Colorado-based subsidiary of Great-West Lifeco, began refocusing its U.S. business by selling its individual life insurance and annuity operations to Protective Life Corporation. This transaction, completed in mid-2019, allowed Great-West Lifeco to concentrate on the growing retirement market.
Building on this strategy, Empower Retirement, another Great-West Lifeco subsidiary, announced in June 2020 its acquisition of Personal Capital, a hybrid wealth manager combining digital tools with personalized advice. This acquisition accelerated Great-West Lifeco’s growth in both the retirement and retail wealth management sectors.
In September 2020, Empower Retirement solidified its position as the second-largest retirement services provider in the U.S. with the acquisition of the retirement services business of Massachusetts Mutual Life Insurance Company. This transaction, along with the integration of Personal Capital, reinforced Empower Retirement’s standing as a leader in the U.S. retirement market, enhancing Great-West Lifeco’s overall strategy of value creation.
Building on this momentum, in July 2021, Empower Retirement announced an agreement to acquire Prudential Financial’s full-service retirement business. The acquisition added significant scale and capabilities, further cementing Empower Retirement’s position as the second-largest retirement plan service provider in the United States. The integration of Prudential Financial’s business strengthened the company’s offerings for participants and sponsors through additional expertise, products and technology.
Three Canadian life insurance companies under one strong brand
Great-West Lifeco announced in July 2019 that the boards of directors of its three Canadian life insurance companies, Great-West Life, London Life and Canada Life, unanimously approved plans to proceed with the amalgamation of these entities into one company – The Canada Life Assurance Company. Completed on January 1, 2020, this amalgamation created operating efficiencies and simplified the company’s capital structure to allow for more efficient use of capital. Bringing the three Canadian life insurance companies under one strong brand sharpened the focus on growth, innovation and efficiency.
GBL enters into exclusive negotiations for the acquisition of the Webhelp group
In August 2019, GBL announced a €0.9 billion investment for an ownership of 65 per cent of the capital of the Webhelp group, a European leader in customer experience management and business process outsourcing (CRM-BPO). In addition to diversifying GBL’s portfolio, this investment also increased the company’s exposure to the business services sector and the growing digitalization trend.
A reorganization that creates long‑term value for shareholders
In December 2019, Power Corporation announced a significant reorganization to streamline its operations by eliminating the dual-holding-company structure. The reorganization was also designed to emphasize financial services and to unlock further shareholder value.
Power Financial, initially focused on financial services, expanded over time, resulting in a similar asset profile to Power Corporation. This overlap led to the reorganization, during which Power Financial’s common shares not already owned by Power Corporation were exchanged for Power Corporation shares. Consequently, Power Financial’s common shares were delisted from the Toronto Stock Exchange in 2020. However, its preferred shares and debt securities remain publicly held and continue to offer strong returns to shareholders.
Power Corporation undertook additional initiatives to benefit shareholders in conjunction with the reorganization, including the implementation of a significant near-term operating cost reduction plan, reduced financing costs and a dividend increase.
As part of the reorganization, Paul Desmarais, Jr. and André Desmarais retired as Co-Chief Executive Officers of Power Corporation after 24 years in their roles. They subsequently continued to play an active role in the governance of the Corporation and maintained their positions as Chairman and Deputy Chairman, respectively, of the Board of Directors. R. Jeffrey Orr, President and Chief Executive Officer of Power Financial, became President and Chief Executive Officer of Power Corporation.
“Paul Jr. and André Desmarais have devoted most of their professional and personal lives to the growth and success of Power Corporation and its group companies and have overseen a period of dramatic growth and value creation. They have led Power with uncommon intellect and initiative, an exceptional sense of personal responsibility, an abiding respect for others and with the interests of their shareholders and other stakeholders always top of mind.”
Power Corporation’s 2019 Annual Report
As part of the reorganization, Power Corporation adopted a new strategy, which emphasized financial services rather than diversification. Following the same long-standing principles that Power Corporation’s business has been built upon over many decades, the value creation strategy focused on three key levers:
OpCo
organic
OpCo
M&A
Power Corporation level
Simplifying GBL’s holding structure
In March 2020, Parjointco, a company jointly controlled by Power Corporation and the Frère family, and Pargesa announced a transaction to simplify GBL’s holding structure. After the transaction, Pargesa’s shares were delisted from the Swiss Stock Exchange. Parjointco retained de facto control of GBL with a 28 per cent equity interest. This reorganization, which further simplified Power Corporation’s structure, was part of its ongoing value creation strategy.
Mackenzie strengthens its position in the Canadian asset management market
In August 2020, IGM Financial announced that its subsidiary Mackenzie Financial Corporation (Mackenzie) was acquiring GLC Asset Management Group (GLC) from Canada Life, strengthening Mackenzie’s position as a leading Canadian asset manager and enhancing Canada Life’s wealth management client offering. GLC’s principal activity was the provision of investment management services to Canada Life.
One month later, Mackenzie and Great-West Lifeco announced that they were jointly acquiring a non-controlling interest in Northleaf Capital Partners (Northleaf), a leading manager of global private equity, private credit and infrastructure, with $15 billion in assets under management. This strategic interest in Northleaf expanded and enhanced the private markets product capabilities across IGM Financial’s and Great-West Lifeco’s distribution channels, providing a significant presence in the large and rapidly growing private markets investments industry.
Enhancing Canada Life’s wealth management and accessing Mackenzie’s investment management capabilities
In August 2020, Canada Life established a new fund management subsidiary, Canada Life Investment Management Limited, which assumed fund management responsibilities for the Quadrus Group of Funds and other Canada Life-branded investment funds from Mackenzie. This transaction further supported Canada Life’s strategic objectives to strengthen and grow its Canadian wealth management business while gaining access to Mackenzie’s large-scale investment management capabilities.
Changes at the helm of IGM Financial
In September 2020, IGM Financial announced strategic leadership changes aimed at ensuring continuity and driving future growth.
Jeff Carney retired as President and Chief Executive Officer (CEO) of IGM Financial and IG Wealth Management, following a transformative seven-year tenure that strengthened the company’s competitive positioning and shareholder value.
In his place, James O’Sullivan, formerly Group Head for Canadian Banking at Scotiabank, assumed the role of President and CEO of IGM Financial. With 30 years of experience in Canadian banking and wealth management, he brought invaluable expertise to guide the company.
Creating new opportunities in the renewable energy sector
Almost a decade after the founding of Power Energy, in 2020, it was decided that a new alternative asset investment platform would be created to offer institutional investors exposure to alternative assets aiming to accelerate and scale sustainable solutions across multiple industries. Power Sustainable was born.
At the head of Power Sustainable was Olivier Desmarais, who held the roles of Chairman and Chief Executive Officer and was the driving force behind the platform's vision of becoming a global, sustainability-led alternative asset manager. Since then, backed by its shareholders and strategic partners — Power Corporation and Canada Life — Power Sustainable has grown rapidly, becoming a standout player in the alternative asset management space, employing several complementary investment strategies focused on targeting sustainable outcomes and competitive financial returns.
At the start of 2021, Power Sustainable launched the Power Sustainable Energy Infrastructure Partnership (Partnership), an investment platform with an initial $1 billion dedicated to the North American renewable energy sector. Through Potentia Renewables and Nautilus Solar Energy, subsidiaries of Power Sustainable and leading integrated owner-operators of high-quality renewable energy assets, the Partnership invests in the development, construction, financing and operation of renewable energy assets across North America.
Sagard builds a business of scale
Sagard announced in January 2021 the launch of its Canadian middle-market private equity strategy. Building on its many years of successful private equity investing in Europe, as well as its middle-market lending business in North America, this launch marked an important milestone in the company’s growth into one of the leading alternative asset managers in Canada.
Sagard establishes real estate platform
In late 2021, Great-West Lifeco entered into a long-term strategic relationship with Sagard, which included the sale of Great-West Lifeco’s United States-based subsidiaries, EverWest Real Estate Investors and EverWest Advisors, to Sagard, in exchange for a minority shareholding in Sagard’s subsidiary, Sagard Holdings Management.
The acquisition marked Sagard’s establishment of a real estate investment platform and increased presence in the U.S. market and, in turn, worked to advance Great-West Lifeco’s strategy of further broadening its access to alternative investment options.
Wealthsimple reaches new heights with strategic investments
In May 2021, Wealthsimple announced a $750 million equity offering, consisting of a $250 million primary offering by Wealthsimple and a $500 million secondary offering by Power Corporation, IGM Financial, and Great-West Lifeco (Power Group), pro rata to their respective ownership interests. This round valued Wealthsimple at $5 billion, with the Power Group’s interest at $2.1 billion.
Led by some of the world’s leading technology investors, this significant round of fundraising confirmed Wealthsimple’s remarkable growth, and the substantial value created since its inception. It built on the success of an earlier round in October 2020, which had secured $114 million at a pre-money valuation of $1.4 billion. The new capital raised enabled the company to further expand its market position, enhance its product suite, and scale its team.
From its humble beginnings, Wealthsimple has transformed into a platform helping Canadians achieve financial freedom through simplicity, transparency, and client-first innovation. Looking ahead, the company is poised to continue its growth, aiming for an ambitious goal of $1 trillion in assets under administration over the next decade.
Celebrating its 10th anniversary in September 2024, Wealthsimple highlighted major milestones, including the management of over $50 billion in assets, its rapidly growing segment of million-dollar accounts, and an expanding suite of financial services.
Advancing Great-West Lifeco’s core strategic focus of investing in workplace capabilities
Canada Life announced in July 2021 an agreement to acquire ClaimSecure, an industry-leading firm providing health and dental claims management and administration services to private and public businesses and organizations in Canada, extending its presence in a growing segment of the market. Completed later that year, the acquisition increased the number of plan members served by Canada Life by 1.25 million individuals, with annual claim payments of more than $1.2 billion.
Irish Life grows with Ark Life acquisition
In 2021, Irish Life announced the acquisition of Ark Life Assurance Company dac, adding pensions, savings and protection policies to its portfolio. Completed at the end of 2021, the acquisition boosted Irish Life’s retail division and enhanced its capacity to deliver market-leading wealth and insurance solutions.
Further simplifying the Power group corporate structure
Power Corporation continued its mission of simplifying its structure and driving better value recognition when, in January 2022, it announced its intention to combine the group’s interest in ChinaAMC under IGM Financial. Under the agreement, the Corporation sold its 13.9 per cent interest in ChinaAMC to Mackenzie, increasing IGM’s interest in ChinaAMC to 27.8 per cent. The transaction was completed in January 2023 and reinforced relationships and business opportunities between Mackenzie and ChinaAMC.
Investing in and for the future
In March 2022, Power Sustainable continued to add scale through the launch of its North American agri-food private equity investment platform, Power Sustainable Lios, and its inaugural Lios Fund I. Power Sustainable Lios supports the sustainability transformation occurring within the food system. Lios Fund I invests in growth-oriented, mid-market companies across the food value chain in North America to drive positive and sustainable change.
A year later, Power Sustainable launched its Infrastructure Credit platform, focused on global investments in energy, transportation, social, digital, and other sustainable infrastructure. The platform targets sub-investment-grade infrastructure investments and seeks to support sustainable assets, portfolios and operating companies with tailored financing solutions.
A new global player in customer experience
An agreement was announced in the spring of 2023 that Webhelp and Concentrix would combine, creating a prominent global leader in customer experience, with an expanded breadth of generative AI solutions, digital capabilities, and high-value services. This transaction also strengthened the end-to-end client experience value proposition, with one of the most robust, well-balanced global footprints in the industry to help the world’s best brands transform customer experiences and achieve their business goals.
Canada Life extends its reach with the acquisition of Investment Planning Counsel
In April 2023, Canada Life announced it would acquire Investment Planning Counsel, a leading independent wealth management firm, from IGM Financial. This acquisition accelerated Great-West Lifeco’s strategy of building the leading platform for independent advisors in Canada and becoming one of the largest non-bank wealth providers in the country.
Geat-West Lifeco’s U.S. strategy remains focused on retirement and personal wealth
In May 2023, Great-West Lifeco announced the sale of Putnam to Franklin Templeton, one of the world’s largest independent and diversified asset managers, for an estimated US$1.7 billion-US$1.8 billion. At the close of the transaction in January 2024, Great-West Lifeco maintained its controlling interest in PanAgora, a leading quantitative asset manager, valued at US$375 million-US$425 million, and certain deferred tax assets related to Putnam. Great-West Lifeco received shares of Franklin Templeton’s outstanding stock. In addition to the sale, Great-West Lifeco, along with Power Corporation and Franklin Templeton, formed a strategic partnership to distribute Franklin Templeton products, creating value for all stakeholders. Great‑West Lifeco committed to allocating US$25 billion in assets under management within a year of closing. The transaction unlocked Putnam’s value and supported Great-West Lifeco’s U.S. strategy, focused on retirement and personal wealth.
Canada Life, a pre-eminent wealth provider in Canada
Two months later, Canada Life announced an agreement to acquire Value Partners Group, a fast-growing Winnipeg-based investment firm serving clients with complex and sophisticated wealth needs. This transaction brought complementary capabilities to further extend wealth offerings for advisors and their clients and accelerated Canada Life’s strategy of building a leading wealth management platform for independent advisors.
With the acquisitions of Value Partners Group and Investment Planning Counsel, Canada Life established itself as one of the pre-eminent wealth providers in Canada.
IGM Financial expands into the U.S. wealth management market
In April 2023, IGM Financial purchased a 20.5 per cent equity interest in Rockefeller, a leading U.S. independent financial services advisory firm, for US$622 million. This strategic investment into the largest and deepest wealth market globally helped expand IGM’s capabilities in the high-net-worth and ultra-high-net-worth segments. Additionally, the transaction granted IGM two board seats and rights to potentially increase its equity interest in Rockefeller in the future, as well as the opportunity for knowledge sharing and collaboration between Rockefeller and IGM Financial’s wealth management business.
A significant milestone
in Sagard’s development
In July 2023, Sagard entered into an alliance with Lunate (formerly known as ADQ), an investment and holding company based in Abu Dhabi and Bank of Montreal (BMO), with both acquiring equity interests in Sagard. These strategic partners agreed to commit additional long-term capital to support Sagard’s current and future investment strategies, providing an influx of capital that bolstered the firm’s fundraising potential and accelerated its ability to launch new products, positioning Sagard for continued growth and value creation.
Strategic acquisitions fuel Sagard’s growth
Later the same year, Sagard announced the acquisition of a strategic stake in Performance Equity Management (PEM), a global, multi-product, private equity investment firm. Sagard’s investment in PEM marked its establishment of a fund of funds, secondary and co-investment platform, positioning both firms for continued growth and enhanced opportunities in the private equity space.
Continuing on this trajectory, in March 2024, Sagard acquired a 40 per cent interest and strategic partnership with U.S.-based collateralized loan obligations (CLO) manager HalseyPoint Asset Management. The partnership aimed to accelerate HalseyPoint’s growth and broaden Sagard’s credit offerings, which included opportunistic credit and senior lending across North America. The partnership sought to establish leadership in the CLO market by combining HalseyPoint’s expertise with Sagard’s distribution capabilities and access to CLO equity capital, offering new opportunities for investors in U.S. corporate credit.
Power Corporation announces new Executive Vice-President and Chief Financial Officer
In March 2024, Power Corporation announced the retirement of Gregory D. Tretiak who made significant contributions to the Power Group during his remarkable 40-year tenure, including 28 years at IGM Financial and 12 years as the Corporation’s Executive Vice-President and Chief Financial Officer (CFO). His leadership was instrumental in the company’s financial strategy and long-term success, reflecting his deep expertise and commitment to the financial services industry.
Jake Lawrence, with over 22 years of experience in financial services, was appointed Executive Vice-President and CFO, succeeding Mr. Tretiak. Previously, Mr. Lawrence served as Chief Executive Officer and Group Head of Global Banking and Markets at Scotiabank, where he oversaw corporate and investment banking as well as capital markets globally. His extensive expertise in financial management and strategic leadership supported the continued growth and success of Power Corporation.
Power Sustainable welcomes new CEO
In October 2024, Power Sustainable appointed Bruce Heyman, former Goldman Sachs partner and U.S. Ambassador to Canada, as its new Chief Executive Officer (CEO). Mr. Heyman brings over 30 years of experience in wealth and asset management, along with a strong understanding of the U.S.-Canada economic relationship. Olivier Desmarais, the company’s founder, remained Chairman of the Board and continued to collaborate with Mr. Heyman to drive Power Sustainable’s growth, particularly in the U.S. market.
Mr. Heyman served as a Senior Advisor to the Power Sustainable team from 2022 until the announcement, playing a key role in shaping the company’s strategy. As CEO, his top priorities include scaling Power Sustainable’s reach, working with the investment teams to deploy capital, and building the firm’s leadership in sustainability.
A strategic update focused on value creation and shareholder returns
In November 2024, GBL shared a strategic update highlighting the company’s commitment to value creation and efficient capital allocation. The company outlined its medium-term goal of delivering double-digit annual total shareholder returns, with this target to be achieved through growth in net asset value per share and increased shareholder distributions. The strength of the company’s balance sheet was emphasized, positioning GBL to capitalize on future investment opportunities. As part of its strategy, GBL continued rotating from public companies into private investments, reflecting a disciplined approach to capital deployment, while maintaining conservative leverage and returning capital to shareholders.
Power advances its commitment to diversity
Recognizing the important role of women in contributing to a diversity of perspectives in the boardroom, in 2021, the Corporation set an objective of ensuring that women represent at least 30 per cent of its Board membership by 2025. Following the 2024 Annual Meeting of Shareholders, Power Corporation was pleased to report that five women were elected to its Board of Directors, representing 36 per cent of the seats on the Board, bringing the Corporation ahead of its objective.
A century of expertise shaping a strong and sustainable future
Power’s prospects remain strong as it works towards the 100th anniversary of its founding in 2025. From its relatively humble beginnings, through its evolution over the course of the 20th century, and now firmly positioned in the 21st, Power has been built for endurance, for financial strength and for long-term success.
