Mark Carney resigned from Brookfield Asset Management on Thursday as he officially began his quest to become Canada’s next prime minister.

CEO Bruce Flatt has replaced Carney as board chair and will handle both duties. Carney had also headed Brookfield’s global-transition investment program. Brookfield said President Connor Teskey and his team will continue to steer transition-investing activities. In addition to serving as president, Teskey heads the company’s renewable-power investment business.

As expected, Carney officially entered the federal Liberal leadership race Thursday in Edmonton, where he grew up. Justin Trudeau previously announced that he will step down as Liberal leader and prime minister after the party elects a new leader.

Theoretically, Carney could have taken a temporary leave from Brookfield, pending the the March 9 leadership vote’s outcome on March 9. But he decided to make his departure permanent.

“[Carney] has been a tremendous partner to the firm since he joined nearly five years ago, both in his role as Chair of Brookfield Asset Management
 for the past two years, and notably in establishing Brookfield as the leading private capital investor in the energy transition,” said Flatt.

“We are sorry to see him leave, but he does so to fulfill his deep sense of public service to Canada and we wish him all the best in his new pursuit.”

Carney is expected to be a frontrunner in the leadership race. Opposition parties are threatening to bring the Liberal government down through a non-confidence motion.

The Liberals may decide to hold a general election immediately to avoid such a defeat. Since their term is coming to an end, an election will be held at some point this year no matter what.

Carney, a former Bank of Canada and Bank of England governor, has never run for political office.

Photo: Brookfield Asset Management