Evidence of meeting #18 for Access to Information, Privacy and Ethics in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was carney.
A video is available from Parliament.
Conservative
Michael Cooper Conservative St. Albert—Sturgeon River, AB
It would be at that time that the carried interest payments would be paid out.
Chief Operating Officer, Brookfield Corporation
It would be towards that.
I would say that, regardless of where the fund is established, everything that I mentioned in relation to Ms. Lapointe's question holds for everything in that fund.
Conservative
Michael Cooper Conservative St. Albert—Sturgeon River, AB
In terms of what is in that fund, there are new investments in that fund. Is that correct?
Chief Operating Officer, Brookfield Corporation
There are investments in that fund. They're not necessarily new.
Conservative
Michael Cooper Conservative St. Albert—Sturgeon River, AB
If there were new investments in that fund, would that potentially increase the value of carried interest payments?
Chief Operating Officer, Brookfield Corporation
If additional capital were to be invested in that fund, it could, if they're good investments.
Conservative
Michael Cooper Conservative St. Albert—Sturgeon River, AB
Brookfield CEO Bruce Flatt was quoted in a National Post article dated March 15, 2025, in which he described carried interest payments in the following way:
Put simply, carried interest is our share of the profits realized on an entire fund, subject to that fund exceeding a minimum target return for clients. If we meet fund expectations, we get 20% of the profits.
You would agree that's an accurate characterization of how carried interest works in respect to the fund.
Chief Operating Officer, Brookfield Corporation
I think that's a fair summary. The “subject to” is a very significant part of how carried interest works.
Conservative
Michael Cooper Conservative St. Albert—Sturgeon River, AB
Right. Brookfield ideally would ideally get 20% of the profits if the threshold had been met or exceeded.
In terms of carried interest payments to the managing partners, what is the range? What is the per cent of that 20%?
Chief Operating Officer, Brookfield Corporation
It completely ranges by fund, because—
Conservative
Michael Cooper Conservative St. Albert—Sturgeon River, AB
I'm asking with respect to the Brookfield transition fund I.
Conservative
Chief Operating Officer, Brookfield Corporation
It's a proportion of the total that Brookfield is entitled to.
Conservative
Conservative
The Chair Conservative John Brassard
You may have to come back to that, Mr. Cooper.
Thank you.
Ms. Church, go ahead for five minutes, please.
Liberal
Leslie Church Liberal Toronto—St. Paul's, ON
Thank you, Mr. Chair.
Welcome, Mr. Beber.
Mr. Beber, picking up on a few points that were raised by my colleagues across the table, You were cut off on your answer about the move of Brookfield Asset Management. Can you elaborate on what you were going to say in terms of the implications of that transfer of structure?
Chief Operating Officer, Brookfield Corporation
Yes, thank you.
I was in the process of explaining that nothing, in fact, moved in relation to the designation of New York as our principal office for the purposes of the asset management business. That asset management business was launched close to 30 years ago, and we grew it within Brookfield Corporation for close to 25 years. We launched it in Canada, but as I think the committee is well aware, it has become a global alternative asset manager.
The scale of that has been driven in large part by the clients we have and the jurisdictions in which we've had those opportunities. The United States, being one of the principal capitals of the world in investment flows, drew a lot of our business into the U.S. organically as the business evolved. When we decided to launch Brookfield Asset Management as its own separate publicly traded company, at the same time, the S&P, which regulates which companies are in or out of various indices, changed its rules and made it easier for Canadian companies like ours to possibly qualify for inclusion in U.S. indices.
We were already in possession of a company—we were already a company at Brookfield Asset Management—with significant girth and presence in the United States, and we designated our New York office, which already existed, as that principal office, which perhaps is something we should have done beforehand, but certainly the change in rules made that beneficial to us. Nothing moved. We changed the designation of our principal office. No people moved. No assets moved. No investments changed.
Liberal
Leslie Church Liberal Toronto—St. Paul's, ON
Thank you for that.
That's a great way to segue into asking you to talk to me a little bit about Brookfield's headquarters. You're headquartered in Canada, in Toronto. Is that correct?
Chief Operating Officer, Brookfield Corporation
Brookfield Corporation is, yes.
Liberal
Leslie Church Liberal Toronto—St. Paul's, ON
You're one of Canada's largest employers and companies. Is that correct?
Liberal
Chief Operating Officer, Brookfield Corporation
Across Brookfield and our portfolio companies, we have over 15,000 employees.
Liberal
Leslie Church Liberal Toronto—St. Paul's, ON
How much federal tax do you pay in Canada? You mentioned it in your opening remarks.
Chief Operating Officer, Brookfield Corporation
It was $750 million last year.