Brookfield Asset Management CEO Bruce Flatt Talks Succession, AI and Strategy

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What is the main topic discussed in this episode?

Karen Moskow 0:00
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Dani Burger 0:39
News. One of the giants of deal-making is Brookfield, and its CEO, Bruce Flatt, is an industry titan in his very own right. This morning, the company announced that Flatt will be stepping down from his post leading the company's $1 trillion asset management business. He, of course, will stay on as the chair and as well as CEO of the parent company. I'm pleased to say that Bruce Flatt joins us now for the big picture, an elevated look at the strategies and trends shaping corporate action. Bruce, thank you so much for joining. We're so thrilled to have you as our inaugural guest.
Bruce Flatt 1:08
Thanks. Thank you for having me as your first customer.
Dani Burger 1:10
I was going to say, there's no one else we'd want to kick things off with. And what a way to kick things off with this announcement that you're handing, at least for the asset management business, the reins over to Connor Teske. I have to say, in a lot of your industry, not only are there issues with succession plannings, rarely do they lay out such a clear path. Why do this and why now?
Bruce Flatt 1:30
So our business is about running great businesses. What we do is we buy into companies, we help management teams, we build them. And therefore, we were very determined ourselves about making sure we have the best succession, the best run business on the planet. So we've been at this for 15, 20 years. We've been out with Connor for the last four, very methodically, and all the other team across the board. And it's just the natural time. And it's really great to have young, new energy in the business. And I can be the chair and help them out as the chairman of the parent, or CEO of the parent company.
Dani Burger 2:06
I was going to say, how do you see your role evolving with this?
Bruce Flatt 2:09
Kind of the same thing I do today. I help with strategy. I help the team when they need me to do something. I help with clients. And that's what I've done for the last five, 10 years. And that's what I'll be doing in the future.
Dani Burger 2:22
So does this mean the timeline speeds up for Connor to take some other of your roles for Brookfield Corp CEO?
Bruce Flatt 2:28
You know, so far, right now, Brookfield Asset Management is enough. And we've got a big insurance business. We're building a big investment business out in Brookfield Corp. So we've got lots going on up top. And frankly, giving up one job is helpful to make sure that we can focus on other things.
Dani Burger 2:43
I'd love to get your philosophy on talent more broadly, because clearly it's something that's near and dear to you as a leader of this industry leader.

What is the significance of Bruce Flatt's succession announcement?

Dani Burger 2:52
There is this moment right now, we've heard from other financial services companies like Goldman, that growth is going to be slowing in talent hiring because of things like AI. Do you see the same thing ahead?
Bruce Flatt 3:02
You know, I don't know. Maybe we're different because we're backbone real asset investors and we've never had a better time. We keep raising more money. We keep deploying it. We're in good returns. Things are great. And the business is accelerating. So and even our credit, it's asset backed finance credit. It's not what you see in the news today. And therefore, our business keeps growing. We keep adding people. We keep adding countries. We keep adding clients. It's pretty good. But we're always focused. Talent, people, especially in a business like ours, but especially in every business, people's everything. And it's really, really important to focus on it. It's the easiest thing to forget about. And one should never forget about your people.
Dani Burger 3:44
So at the same time, you mentioned it, just the real asset business that you have and this really big bet on AI infrastructure that's been evolving at Brookfield.

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