Power Corporation of Canada

Power Corporation of Canada was formed in 1925 by stockbrokers Arthur J. Nesbitt and Peter A.T. Thomson with Nesbitt serving as its first president. Power Corporation was created as a holding company to oversee investments in public utility businesses, particularly those operating in the electrical power industry in Quebec's Eastern Townships, and other Canadian provinces, including Ontario, Manitoba, New Brunswick and British Columbia. During the late 1930s, the company expanded its controlling interest in Bathurst Pulp and Paper Company Ltd., and in 1938, Canadian Oil Companies Ltd., selling the latter to Shell Oil Company in 1962.

In 1952, Arthur J. Nesbitt was succeeded as president by his son, Arthur Deane Nesbitt (1910-1978). In 1966, Clarence E. Atchison became the second President of Investors Group. In 1968, control of Power Corporation shifted when the Nesbitt family sold most of its interest to a group led by Paul Desmarais, and by 1970 the family was no longer involved in the company’s operations.

In 1975, PCC attempted a takeover of the Argus Corporation holding company with interests in sectors including brewing, retail, farm implements manufacturing, paper products and other businesses. The proposed takeover was not completed, as Argus’s controlling shareholders retained their voting shares; however, Power Corporation acquired approximately 50% of the non-voting shares. In 1976, ten percent of the voting shares were sold by E. P. Taylor to Desmarais. Argus was eventually sold in 1978 to a Conrad Black-controlled firm.

In 1989, corporation began supporting the Imagine Canada program.

While PCC was originally established as an electric utility holding company, the company became a conglomerate with interests in the finance industry, as well as interests in other business sectors such as sustainable and renewable energy. 1984 saw the creation of a management and holding company, Power Financial Corporation. Expansion for the group began in the 1970s, in Europe and followed in the 1990s, in Asia. The group's involvement in the finance sector continued in 2000, with the acquisition of Canada Life, Mackenzie Financial and Putnam Investments. Following the 2020 reorganization, Power Corporation owns 100% of Power Financial's common shares.

In 2002, Power Corporation created the Sagard SAS fund, then Sagard Capital Partners, later named Sagard Holdings, in 2004, in the United States. R. Jeffrey Orr was named Power Financial Corporation CEO in 2005. By 2007, IGM Financial was the holding company for Power Corporation's investment fund companies. Power Corporation also by 2009 had interests in the parent company of La Presse, Mackenzie Financial, London Life Insurance, Canada Life Assurance, Great-West Life, and Putnam Investments.

The company reduced its number of board directors in 2008 from 21 to 12. Power Corporation acquired a stake in China Asset Management in 2011, purchasing 10% from CITIC Securities Co. Also that year, Power Corporation's new fund Sagard China was founded. Through a number of recent initiatives, in partnership with its subsidiaries Great-West Lifeco and IGM Financial, the Power Corporation group has been actively participating in the emerging fintech industry. This fintech strategy is achieved through Portage Ventures (which launched a fintech-focused investment fund), Wealthsimple, Personal Capital and Diagram.

In connection with the reorganization, Paul Desmarais Jr. and Andre Desmarais retired as co-chief executive officers of Power Corporation after 24 years in the roles and continue to serve as chairman and deputy chairman, respectively, of Power Corporation's board of directors. R. Jeffrey Orr, president and chief executive officer of Power Financial, became president and chief executive officer of Power Corporation, effective February 13, 2020.