Aditi Ganguly | BenzingaÂ
Connor Teskey, the incoming CEO of Brookfield Asset Management, is poised to become a breakout star in the world of finance. The 36-year-old, who joined the world’s second-largest alternative asset management firm back in 2012, is on the cusp of becoming one of the youngest CEOs in the history of alternative asset management — a move that could also propel him into the billionaire’s club.
Teskey’s Journey
Brookfield Asset Management Ltd. (NYSE:BAM), a prominent global alternative asset manager, has approximately $1 trillion worth of assets invested across renewable energy, infrastructure and real estate and private equity. Teskey joined the Toronto-based firm in 2012 at the lower rungs in the company but quickly became one of its star performers driving the alternative investment firm’s success. He soon became the chief investment officer of Brookfield’s renewables arm. In 2020, he was promoted to CEO of the renewables business by Bruce Flatt, the incumbent CEO of Brookfield Asset Management.
Teskey’s Key Role In Brookfield’s #2 Ranking
Teskey spearheaded Brookfield’s acquisition of Oaktree Capital Group in 2019, a move that set him apart. After studying Oaktree’s business lines and scrutinizing communicationd [sic] from its founder, Howard Marks, Teskey guided Brookfield through a $5 billion acquisition that elevated the firm to the status of the world’s second-largest alternative asset manager.
Teskey claims that this partnership “has been mutually beneficial,” as it created a $500 billion money management division that Flatt and Oaktree’s co-founder Marks run together.
“There are lots of smart people,” said the current chief of global banking and markets at Scotiabank, “There are lots of people who are mature. But Connor’s work ethic multiplies those.”
The 36-year-old is also committed to a clean energy transition, as he is looking through investment opportunities to meet Brookfield’s decarbonization goals. Teskey aims to generate returns within the range of 12%-15% on commercial investments. He launched the Brookfield Global Transition Fund in 2021 with assets under management of $15 billion, invested across 19 businesses, making it the largest pool of private capital for funding Brookfield Corporation’s net-zero decarbonization goal.
What Teskey’s Nomination Could Mean For Brookfield
While Flatt’s retirement is not imminent, insiders at Brookfield are already preparing for the transition. Flatt, 59, who is expected to nominate Teskey for his position soon, climbed the ropes to become the CEO of Brookfield when he was 36 years old, taking over the reins from his predecessor Jack Cockwell.
“In a good succession plan, you don’t just all of a sudden anoint somebody and have everyone say, ‘Oh, that’s the guy,'” Flatt said during an interview, “That’s not what happens in good companies. They take time, and the culture becomes one where everyone’s used to it.”
This nomination could make Teskey at least a decade younger than his major competitors, while potentially making him one of the youngest billionaires.
“I think it will be exactly when all clients, business partners, and people inside are 100% comfortable that it’s all natural to happen,” Flatt added, “And so we really haven’t set that date. It’ll be whenever it’s natural to do it.”
Flatt had previously outlined his ambitious plan to double Brookfield’s net assets under management to $2 billion by 2028, a challenge that Teskey aims to meet when he takes over.
