Power Co. of Canada Q2 2026 Earnings Report

Power Co. of Canada EPS Results

• Actual EPS: C$1.55
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Power Co. of Canada Revenue Results

• Actual Revenue: $11.70 billion
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Power Co. of Canada Announcement Details

• Quarter: Q2 2026
• Date: 7/30/2026
• Time: After Market Closes
• Conference Call Date: Friday, July 31, 2026
• Conference Call Time: 8:30AM ET

Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms.

Power Co. of Canada Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record quarterly adjusted EPS of CAD 1.55 rose 12% year over year, while adjusted net earnings increased 10% to CAD 974 million. Results were driven by strong contributions from Great-West and IGM, along with a lower share count.
• Positive Sentiment: Great-West and IGM continued to exceed or track well against their medium-term objectives. Great-West delivered 19.3% base ROE and 15% base EPS growth, while IGM reported 32% adjusted EPS growth, strong net flows, and record assets under management and administration.
• Positive Sentiment: Wealthsimple’s momentum remained strong, with approximately CAD 17 billion of net flows and its largest-ever quarterly AUA increase. Power raised the fair value of its Wealthsimple investment by 15%, citing performance ahead of plan and improved revenue expectations.
• Positive Sentiment: Management emphasized strategic continuity, continued simplification, and shareholder returns as priorities. Power returned CAD 1.5 billion to shareholders in the first half, cited a roughly 20% discount to NAV as support for buybacks, and said its CAD 1.8 billion of available cash provides capital-allocation flexibility.
• Neutral Sentiment: Alternative-asset fundraising reached approximately CAD 2.6 billion in the first half despite challenging market conditions, with Sagard’s credit fund halfway toward its CAD 2 billion target. Management remains cautiously optimistic that fundraising conditions will improve, while noting continued volatility and uncertainty among capital allocators.

Presentation

[Operator]

Good morning, ladies and gentlemen, welcome to the Power Corporation Second Quarter 2026 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. Analysts who wish to join the question queue may press star then one at any point throughout the call. If anyone has difficulties hearing the conference, please press star then zero for operator assistance at any time. I would like to remind everyone that this call is being recorded on Friday, July 31st, 2026. I would now like to turn the conference over to Mr. Steven Hung, Head of Investor Relations for Power Corporation. Please go ahead, sir.

[Steven Hung, Head of Investor Relations at Power Corporation]

Thank you, operator. Good morning, everyone, thank you for joining us for Power Corporation's Second Quarter 2026 Results Call. Before we begin, a link to the audio webcast and materials for this call have been posted to our website at powercorporation.com under the Investors tab. Please turn to slide two. I would like to draw your attention to the cautionary note regarding the use of forward-looking statements, which form part of today's remarks. Please also refer to slide three for a note on the use of non-IFRS measures and clarifications on adjusted net asset value. To discuss our results today are James O'Sullivan, who was appointed President and CEO of Power Corporation on July 1st, 2026, and Jake Lawrence, our EVP and CFO. We will begin with opening remarks followed by a question and answer session. With that, I'll turn the call over to James.

[James O'Sullivan, President and CEO at Power Corporation]

All right. Thank you, Steve. Good morning, everyone, thank you for joining us today. Before turning to the results, I want to share some high-level thoughts. First, Power has an exceptional culture and team working with its partners right across the group. Having formerly led one of the public operating companies, I understand how Power creates value through active ownership and enables strong collaboration across leadership, capital allocation, strategy, and risk. The strong partnership across the Power group of companies will continue to drive strong shareholder returns. Second, Power has made strong progress against its value creation strategy, Investors have benefited from strong total shareholder returns. Power will maintain continuity in strategy, no major changes are anticipated. Transparency and communication remain a top priority, we look forward to engaging with you directly.

[James O'Sullivan, President and CEO at Power Corporation]

Thirdly, in terms of capital allocation, Power will remain focused on investing organically in existing businesses while being strategic in M&A. Return of capital through dividends and share buybacks will remain a key priority. Power is a patient investor with a longer-term time horizon, Decisions are made thoughtfully. Building on the strong execution of the value creation strategy under Jeff Orr's tenure, Power will maintain ongoing momentum. I look forward to your continued support, engagement, and dialogue over time. Now, turning to the results. Power reported a strong quarter with record adjusted EPS of CAD 1.55. The results reflected strong earnings growth from Great-West and IGM, continued value creation from our NAV-based businesses, as well as a decreasing share count. Power's net asset value grew 74% year-over-year, led by our publicly traded operating companies. Great-West and IGM continue to track well against their respective medium-term financial objectives.

[James O'Sullivan, President and CEO at Power Corporation]

Great-West surpassed 19% base ROE for the second straight quarter, and both companies demonstrated strong double-digit adjusted EPS growth. On the NAV-based investments in our portfolio, Wealthsimple posted strong AUA and client growth, and the business momentum supported a 15% fair value increase in Wealthsimple. At Sagard, Power also recognized an 11% increase in fair value. Great-West announced the acquisition of Milliman through its Empower subsidiary. This will enhance its capabilities and contribute to it winning more business. Power also took another step in simplifying our operations by agreeing to sell our interest in LMPG. Power returned CAD 1.5 billion to shareholders in the first half of the year, and buybacks remain an attractive use of capital, with Power trading at a 20% discount. Finally, Power has delivered strong historical returns for shareholders over the short and long terms.

[James O'Sullivan, President and CEO at Power Corporation]

As a former CEO of an operating subsidiary, I can attest to the power of active ownership. With that overview, I'll pass it over to Jake to walk through the financial update and business review.

[Jake Lawrence, EVP and CFO at Power Corporation]

Great. Thanks, James, and good day to everyone joining us today on the line and webcast. I'm going to begin on slide seven. As you can see, Great-West, IGM, and GBL have all reported their respective results over the course of the week, which I think helps us obviously present today.

[Jake Lawrence, EVP and CFO at Power Corporation]

Turning to slide eight, Power's adjusted net earnings were CAD 974 million. That is up 10% year-over-year. Our adjusted EPS of CAD 1.55, which as James noted, is the highest quarterly EPS Power has reported and is up 12% compared to Q2 last year. On a reported basis, Power's net earnings were CAD 690 million and EPS was CAD 1.10. The Great-West contribution to Power's adjusted net earnings was CAD 871 million, up 10% versus last year. The results were led by double-digit base earnings growth at Empower, as well as very strong double-digit growth in the capital and risk solutions business. IGM's contribution in the quarter was CAD 211 million, and that is up 34% year-over-year. Very strong. That was led by double-digit growth from both the wealth and the asset management business segments.

[Jake Lawrence, EVP and CFO at Power Corporation]

Turning to Power's NAV-focused businesses, GBL and Power Sustainable reported a modest loss of CAD 5 million and CAD 4 million respectively. Meanwhile, Sagard contributed positive adjusted net earnings of CAD 33 million, with positive net carry in asset management and the fair value increases in private equity from our investing activities. Corporate operations and other activities contributed a loss of CAD 112 million in the quarter. Turning to the next slide nine. NAV per share was CAD 112.94 at the end of Q2. As James mentioned, NAV per share is up 74% year-over-year, and it's up 34% quarter-over-quarter. The composition of our gross asset value of CAD 77.4 billion continues to be anchored by our earnings-based businesses. Importantly, I'd note, 91% of our gross asset value is related to our public companies, Great-West, IGM and GBL. When we include cash, this rises to 94%.

[Jake Lawrence, EVP and CFO at Power Corporation]

As of last night's close, the adjusted NAV per share stood at CAD 116.01, reflecting further appreciation in our listed holdings since quarter end. Turning to our other investments. The fair value of Power's Wealthsimple position was CAD 1.7 billion, net of carried interest. That's up 15% from last quarter, and that's in addition to an increase at the end of 2025. The increase in fair value was supported by stronger business performance and improved revenue expectations at Wealthsimple. The fair value of our ownership in Sagard also increased in the quarter, up 11%, and that reflects the platform's continued expansion of capabilities and increasing scale. In Q2, Power also agreed to sell our interest in LMPG, as James noted, and that resulted in a small NAV reduction of CAD 41 million.

[Jake Lawrence, EVP and CFO at Power Corporation]

Lastly, Power's cash and cash equivalents were CAD 2.2 billion at the end of the quarter, up from CAD 1.7 billion in the same period last year. Next, I'll walk through the businesses starting on slide 10. Starting with Great-West, who reported a strong quarter. Base EPS of CAD 1.42 was up 15% from CAD 1.24 in Q2 of 2025, reflecting sustained top-line momentum, operating leverage, as well as the impact of share buybacks. Base ROE at Great-West was 19.3% for the quarter. That achieves the company's 19%+ midterm objective for the second straight quarter. As I mentioned, Empower and Capital Risk Solutions both delivered double-digit growth. Cash at Great-West Holding Company was CAD 2.5 billion at the end of the quarter, supporting continued capital flexibility. Great-West repurchased CAD 925 million of its shares on a year-to-date basis.

[Jake Lawrence, EVP and CFO at Power Corporation]

Total capital deployment between share buybacks and the M&A transaction of acquiring Milliman's defined benefit business is expected to be at least the same level as 2025 at CAD 1.6 billion. Looking closer at Empower on slide 11. Year-over-year base earnings growth was strong, up 34% on a constant currency basis. In the retirement business, client assets crossed CAD 2 trillion for the first time. This quarter, Empower also announced the acquisition of Milliman's defined benefit business, strengthening the company's offering to plan sponsors. The transaction is expected to close in the second half of 2026. It's going to add 1.5 million participants and an additional CAD 130 billion of client assets in the retirement business. Next, turning to slide 12. IGM reported a record quarter of adjusted EPS at CAD 1.41, up 32% year-over-year, and ahead of its 9% medium-term earnings target.

[Jake Lawrence, EVP and CFO at Power Corporation]

The results were supported by double-digit earnings growth across each business segment. On a year-to-date basis, IGM returned CAD 386 million to shareholders through a combination of share repurchases and dividends paid. Net flows across IG Wealth and Mackenzie were strong at CAD 2.2 billion, and record-ending AUM & A, including strategic investments of CAD 622 billion, was up 19% year-over-year and an increase of 9% from last quarter. IGM also announced a multi-year initiative to simplify the organization and accelerate investment in key technology capabilities such as AI to strengthen the business. Turning to slide 13, which takes a deeper look at IGM's results. On a year-over-year basis and by business segment, wealth management grew 33%, asset management grew 31%, while corporate and other, which primarily reflects IGM's proportionate share of Great-West base earnings, grew 17%.

[Jake Lawrence, EVP and CFO at Power Corporation]

The wealth business reported record high AUM & A of CAD 176.6 billion, up 20% versus Q2 2025. It was also a record second quarter of gross inflows and sales, and the 19th consecutive quarter of positive net flows. In asset management, retail net sales of CAD 217 million improved by CAD 360 million from Q2 2025, reflecting the business's fourth consecutive quarter of positive retail investment fund net sales. Turning to the next slide, which shows our strategic investments at IGM. They continue to see impressive client asset growth. On a year-over-year basis, Rockefeller's client assets grew 37% to CAD 318.5 billion. China AMC AUM was up 12% to CAD 608 billion, and Northleaf increased client assets 13% to CAD 37.1 billion. These investments significantly broaden IGM's long-term growth profile. Moving to slide 15. As you heard earlier, Wealthsimple's strong business momentum continues as it further increases its scale.

[Jake Lawrence, EVP and CFO at Power Corporation]

Wealthsimple's AUA increase of CAD 30.8 billion from Q1 reflects the company's largest quarter-over-quarter growth in its history. The growth was driven by strong net flows of approximately CAD 17 billion. Power's collective group interest in Wealthsimple, net of carried interest, now stands at CAD 4.4 billion, up 15% year-over-year. This includes CAD 2.6 billion at IGM, CAD 1.7 billion at Power Corp, and the balance at Great-West and other. Turning to GBL on slide 16. The business has made strong progress on its medium-term plan for portfolio simplification, with disposals of more than EUR 5 billion across listed companies and non-core asset sales. Meanwhile, GBL will continue to deploy EUR 2.3 billion into direct private assets through controlled or co-controlled positions. On a year-to-date basis, GBL continued to return capital to shareholders with EUR 773 million of buybacks and dividends.

[Jake Lawrence, EVP and CFO at Power Corporation]

All of these actions are consistent with GBL's strategy of increasing direct private assets while returning capital to shareholders. Moving to our alternative asset management platforms on slide 17, which reported total AUM of CAD 69.4 billion at quarter end. These businesses remain focused on increasing scale and growing AUM. On April 2nd, Sagard closed the previously announced acquisition of Unigestion, which added CAD 15.1 billion of AUM. Despite the challenging fundraising market, Sagard delivered tangible results with approximately CAD 2.6 billion raised in the first half of 2026. This fundraising was led by strategies in real estate, private equity, venture capital, as well as credit. Meanwhile, Power Sustainable's focus remains on converting its momentum into durable third-party AUM, maintaining disciplined investment in risk management, and building a larger, scalable, and increasingly profitable alternatives platform.

[Jake Lawrence, EVP and CFO at Power Corporation]

During the quarter, we saw further developments, including Sagard Credit Partners III announced a $1 billion of initial commitments towards its CAD 2 billion targets. This is investments focused on senior unsecured financing to mid-market companies across Canada and the U.S. During the quarter, Sagard launched the $150 million AI fund that will be focused on AI infrastructure, cybersecurity, governance, customer experience, customer engagement, and agentic workflows. With that, I'm going to turn the call back over to James for some thoughts on value creation and then concluding with closing remarks.

[James O'Sullivan, President and CEO at Power Corporation]

All right. Thanks, Jake. Power Corporation remains focused on building the momentum in its value creation strategy. Slide 19 shows the aggregate capital return to participating shareholders since 2020. Over CAD 12 billion in dividends and share repurchases since we began that program. Returning capital to our shareholders will remain a priority. Moving to slide 20. You can see the strong NAV growth Power Corp has delivered since 2020 with a 20% compound annual growth rate. While the NAV discount is topical, I believe that as Power continues to demonstrate and communicate the value addition from its active ownership, the trading discount can and will meaningfully narrow. Next, slide 21 tracks the discount to NAV since 2015. Power Corp is a very different company today versus pre-reorganization.

[James O'Sullivan, President and CEO at Power Corporation]

At a 20% discount currently, there is much more room to narrow, in my view. Power can focus on adding value by growing the company's net asset value, delivering recurring and predictable returns, continuing to simplify the company over time, and I think communicating the strong value proposition as one Power share essentially gets an investor 0.98 of a Great-West Life share and everything else for free, including an interest in IGM, GBL, Sagard, Power Sustainable, Wealthsimple, and a cash position of CAD 2.2 billion. Moving to slide 22. Power's total shareholder returns have materially outperformed both the S&P/TSX Financials Index and the broader S&P/TSX Composite Index over the measured periods, including the one, three, five, 10, and 30-year periods. We believe these results reflect the successful execution of our value creation strategy. Power will build on that strong foundation. Turning to the next slide.

[James O'Sullivan, President and CEO at Power Corporation]

Looking ahead, Power is well-positioned to generate further attractive returns for shareholders. The three pillars remain firmly in place. First, our earnings-focused businesses are showing strong momentum against medium-term objectives. Great-West and IGM should provide low- to mid-teens returns as they continue to track well against their respective adjusted EPS growth plus dividend yields. Second, our NAV-based businesses also offer long-term value creation. GBL is targeting medium-term double-digit TSR, and Wealthsimple continues to grow at a remarkable rate. Power's alternative investment platforms continue to scale their respective platforms. Third, our balance sheet is strong, with CAD 1.8 billion of available cash supporting continued and growing return of capital through dividends and share buybacks, which in turn drives per-share growth in NAV, earnings, and dividends. I am confident with the foundation and momentum that Power and its group of companies have been able to deliver against its objectives.

[James O'Sullivan, President and CEO at Power Corporation]

This quarter was another example of the strong execution of the value creation strategy that I look forward to continuing to build upon. Thank you, everyone, and operator, I believe we're ready to take questions.

[Operator]

Thank you, sir. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. The first question comes from Doug Young with Desjardins Capital Markets. Please go ahead.

[Doug Young, Analyst at Desjardins Capital Markets]

Hi. Good morning. James, you mentioned at the end in your prepared remarks, simplifying the story further over time. A lot of work has been done over the last six, seven years. Finally, I guess the LMPG stake has been small, but it was removed now. Maybe can you walk through a little bit about what else can be done to simplify the story? I have some thoughts, but I'd love to hear what you have to say. Then just thinking about timing of these items as well.

[James O'Sullivan, President and CEO at Power Corporation]

Sure. Well, good morning. When I think about simplification, Doug, I think about specific investments or properties that are perhaps held in more than one place. Is there an opportunity to consolidate those in a single place? I think we made great progress there between Power and IGM with China AMC a few years ago. I think that was a very good example of the simplification initiative. I also think about types of businesses that are perhaps similar, where they're owned in multiple places. Is there an opportunity to rethink, to consolidate, to make them stronger, perhaps by bringing them together? I think this is a multi-year journey. I think we're well into it. There is more to do. I'm not going to attach kind of specific initiatives or specific timelines to it, though. I am kind of 30 days into the job.

[James O'Sullivan, President and CEO at Power Corporation]

I think this initiative of simplification has been frankly one of the more important contributors to the market kind of really recognizing the value creation within the group over the past several years. We'll carry on with it, but it's just very difficult at this point for me to point to what's next or when it's next. Simplification is very much something that's front of mind for me.

[Doug Young, Analyst at Desjardins Capital Markets]

Okay. Appreciate it. Just on Wealthsimple, another revaluation this quarter. Any thoughts of how often, I know there's growth and there's an explanation about why it happened this quarter, how often should we, outside of just funding rounds, should we expect revaluation of Wealthsimple? What else can we expect, maybe disclosure-wise, to get a sense of how to think about the valuation of Wealthsimple?

[James O'Sullivan, President and CEO at Power Corporation]

Yeah, good question. A couple of thoughts on Wealthsimple. The first thing I would say is I've served on the board there now for a couple of years. We just had a board meeting on Monday of this week. Momentum has never been stronger. Their performance against their KPIs is very, very strong. I think the company continues to move, Doug, from strength to strength. To your specific question, what I would say is the value is revisited every quarter. We have a rigorous process internally led by the team at IGM. It includes people at Power. It includes external people as well. We're obliged to look at it every quarter, and we do look at it every quarter. It was really the remarkable progress relative to plan, frankly, and the forward outlook for the business that resulted in the 15% increase.

[James O'Sullivan, President and CEO at Power Corporation]

Plan, performance against plan and outlook are the biggest drivers, and those are what support the increase. We did disclose, I think Jake just spoke briefly to the flows in Wealthsimple for the quarter. That is additive in terms of disclosure. I think to this point, we've disclosed assets, we've disclosed clients. Now we've got flows. I think your point is a very reasonable one. I think as this becomes a bigger and bigger share of IGM, as it becomes a bigger share of Power Corp, indeed, on a consolidated basis, the market will be looking for and deserves incremental disclosure, and we'll do what we can in pursuit of that. I think it's a reasonable request.

[Doug Young, Analyst at Desjardins Capital Markets]

Appreciate the color. Thank you.

[Operator]

Thank you. The next question comes from Matthew Fortini with CIBC. Please go ahead.

[Matthew Fortini, Analyst at CIBC]

Hey, good morning. Matthew on for Scott here. Thanks for taking the question. I just wanted to ask about the Wealthsimple revaluation, since we didn't get the chance to ask on the IGM call yesterday. Clearly, the impressive CAD 17 billion of net flows in the quarter was a significant factor. I'm wondering if you can give some color into what drove those flows in the quarter and where or what product lines they were concentrated in across the platform. Thanks.

[James O'Sullivan, President and CEO at Power Corporation]

Yeah. Thanks for the question. Very broad-based. The remarkable thing about Wealthsimple is that it's not just a trading platform. Although it is that, and it's a very good one at that. It's trading, it's investing, it's saving, it's banking, it's crypto, it's tax. Soon, no doubt it will be predictions. I can assure you that there's good growth kind of across the board. Their trading business in particular is just moving from kind of strength to strength, and you see that in the flows. They're also, as you know, driving very strong flows from kind of the domestic competition. Some of those are wealth managers, some of them are banks, but it's coming into the Wealthsimple ecosystem.

[James O'Sullivan, President and CEO at Power Corporation]

I think the real strength of Wealthsimple is that when they get a customer, when they get flows, they get to know you real quickly, and they get to know what the right next product is for you. The flows are really just step one in terms of building a deep and sustainable relationship. I think that's part of their secret sauce, frankly.

[Matthew Fortini, Analyst at CIBC]

Okay, thanks. Maybe another quick one from me. On the LMPG sale, can you give us a sense of how much the business was carried at in the NAV, and should we expect the proceeds to further support the buyback, or do you have another use of the proceeds in mind? Thanks.

[Jake Lawrence, EVP and CFO at Power Corporation]

Yeah. It was marked on the books just under CAD 90 million. The proceeds will be about half of that. We expect those proceeds to come in during Q3, later today, frankly, if all goes according to plan. Frankly, with our cash balance at CAD 2.2 and our available at CAD 1.8, that amount coming in is quite fungible. It's just going to move in, and so it'll be part of our overall capital allocation strategy. It doesn't really skew us to say, "Oh, this incremental amount will go to this activity." It'll just fall into our overall pool of capital that we have available to make choices with.

[Matthew Fortini, Analyst at CIBC]

Okay, awesome. That's great color. Thank you. I'll pass the line.

[Operator]

The next question comes from Michael McCue from TD Securities. Please go ahead.

[Michael McCue, Analyst at TD Securities]

Hi, good morning. Just in for Graham here. Just first question. Obviously the buyback is topical. Just noticed with IGM accelerating the pace of their buyback, the ownership stake has started to creep up a little bit at the Power level. Just wondering if there's any sort of intention to maintain a certain ownership stake in the way that you have by participating in the Great-West buyback.

[James O'Sullivan, President and CEO at Power Corporation]

Yes, James, I'll start and then Jake will add to it. Where I'd start is we do own a higher shareholding, measured in percentage terms, in Great-West Life than we do in IGM. To be perfectly candid, I'm very happy to own more IGM. If that occurs as a result of not participating in their buyback, I think it's just fine. I have exceptionally high regard for their core businesses and their strategic businesses. I think they've been rearchitected for growth, for diversification, and I think the market is increasingly recognizing that. Having said all of that, we'll revisit this. By this, I mean whether we should or should not participate in IGM's share buybacks. We'll revisit it as we move through the year and as they start to think about what they might do next year.

[James O'Sullivan, President and CEO at Power Corporation]

Certainly, for the time being, I'm very happy, we are very happy to own more of IGM. One way that I look at this is that that buyback, which is substantial at 5%, I think that provides very strong support for the minority shareholders of IGM. I think they deserve it, and I'm very happy to see that. I think everyone gets something here. The minority shareholders get a stronger market with strong support in the market, and we get to own a bit more of a great business.

[Jake Lawrence, EVP and CFO at Power Corporation]

James, I think it's a good answer. Nothing to add.

[Michael McCue, Analyst at TD Securities]

Okay, great. Then just if I may, a second one, just the outlook on fundraising for the remainder of the year, just sort of at the Sagard level holistically, then specifically as regards to the private credit fund. Look like you're about halfway to the CAD 2 billion target. Just the outlook for the remainder of 2026.

[Jake Lawrence, EVP and CFO at Power Corporation]

Yeah, I think 2026 has been an interesting year just given all the volatility and uncertainty and different events that have taken place, that obviously impacts allocators of capital, particularly in the investment space. Sagard, as I noted, has had a good start to the year at about CAD 2.6 billion. I think on the IGM call, they noted a strong quarter from Northleaf as well. In terms of outlook, we're hoping it continues at or near the pace we're at now for the balance of the year. We've seen strength so far this year around real estate, private equity. Portage closed fund four on the VC side, that went well. As you noted, credit has done fine. I know there's lots of newspaper articles, and I just remind people that the credit business at Sagard is mid-market.

[Jake Lawrence, EVP and CFO at Power Corporation]

It has de minimis exposure into the software space, and it's very much focused on, I'd say, that mid-market cash flow and EBITDA business. Their strategies under Adam Vigna have performed well, and that's why they've been able to fundraise in this space and are halfway to the CAD 2 billion goal. We're optimistic that the challenging fundraising space that existed probably for part of 2024 through 2025 and into 2026 starts to subside and we see some stronger ones, but we're encouraged. I think part of the strategy that I'd note also is away from the organic fundraising. We did close Unigestion in the quarter, and now we see Sagard at almost CAD 70 billion AUM, and that really creates a nice earnings management stream for them as we move forward.

[Michael McCue, Analyst at TD Securities]

Okay, great. Thank you. That's all I had. Appreciate it.

[Operator]

Thank you. The next question comes from Bart Dziarski with RBC. Please go ahead.

[Bart Dziarski, Analyst at RBC]

Hi, good morning. Thanks for taking my questions. Maybe just on the Sagard revaluation, could you unpack the drivers of that between, I guess, the Wealthsimple mark would have had a flow-through and the BEX deal closing? Thanks.

[Jake Lawrence, EVP and CFO at Power Corporation]

Hey, Bart. Thanks for the question. The Sagard revaluation in the quarter is up 11%, and I was just commenting on the Unigestion transaction. Obviously, BEX also has closed recently. A revaluation on the business was done in the second half of 2025. Since then, lots of great milestones have taken place. They're now through that easily CAD 50 billion assets under management. They continue to build out capabilities. The Unigestion and BEX transactions bring in much stronger capabilities in Europe and a much stronger private equity platform with secondaries, primary, and co-ownership. I'd say one of the interesting things is the forecast and the earnings of the business is as strong as it's been in the past several years and continues to grow well.

[Jake Lawrence, EVP and CFO at Power Corporation]

I think the trick is when we look at the valuations of alt managers, which I know you do full time in your day job, those valuations have compressed. If we go back a year when things were trading at 30x FRE, this would have been a much higher revaluation. We're still quite encouraged at the 11% mark, which does reflect the growing management fees, which does reflect the carry, as you note in the business, which has been quite strong from Wealthsimple, but also from other investments within the venture cap and private equity portfolios. It really represents a strong maturing business that deserves a higher valuation, and we expect that to continue over time, and we'll revisit when it deserves it.

[Jake Lawrence, EVP and CFO at Power Corporation]

Much like Wealthsimple, there's third-party investors here. There is an independent party involved in this valuation exercise. We find ourselves very comfortable with the mark and are quite happy to see Sagard valued north of CAD 1 billion as we leave the quarter.

[Bart Dziarski, Analyst at RBC]

Thanks, Jake.

[Jake Lawrence, EVP and CFO at Power Corporation]

Thank you.

[Bart Dziarski, Analyst at RBC]

That's very helpful. Maybe just a follow-up for James. I know you're 30 days in the seat, James, but would love any early observations from your seat now at Power versus IGM as to early takes, early reads. What surprised you? What are you seeing there? Thanks so much.

[James O'Sullivan, President and CEO at Power Corporation]

Sure. Okay, a few thoughts. The first thing I would say is that I think the market is clearly recognizing the accomplishments right across this group that have been years in the making. I do want to emphasize what I said in my prepared remarks, which is that the principal theme as we sit here today is kind of continuity and strategy. There's not going to be any sharp turns. No turns left, no turns right. Our goal very much is to maintain the momentum that we have built over the past several years. I think the way we're going to maintain momentum is through what we call active ownership. Power Corp has had a mission statement for some number of years on our website, and for me, the key words in it are active ownership. We add value kind of vertically through the group.

[James O'Sullivan, President and CEO at Power Corporation]

We add value horizontally across the group, and we do that by being good active owners. We lean in on strategy, capital allocation, people, risk. All of that, I think, is very additive to the value both of the publicly traded operating companies as well as Power Corp overall. Maybe just a thought on priorities. For me, always sustainably growing the dividend is job number one over time. That's the principal way of returning cash and certainly the most regular way of returning cash to shareholders. A critically important driver, I think, of total shareholder return. We want to sustainably grow the dividend. This management team is very committed to growing the net asset value, and we're going to do what we can to narrow the trading discount.

[James O'Sullivan, President and CEO at Power Corporation]

I think the way to narrow the trading discount is going to be to really focus on the quality of our active ownership. We need to do it, and we need to communicate it. There's lots of levers for us to pull along the way. I think we've been very clear over the years that if you look at our operating companies, they have remarkable growth opportunities, both organically and inorganically. There's plenty for us to do up top at Power Corp. We can grow the alternatives businesses. That's a priority. We can continue to simplify, as we discussed earlier. We can buy back shares. There's going to be lots to do, I think, to drive value. Let me just summarize by saying I'm very excited to be here.

[James O'Sullivan, President and CEO at Power Corporation]

I look forward to meeting each of you on the line and communicating a path forward that I'm confident will create more value for our shareholders.

[Bart Dziarski, Analyst at RBC]

Thanks so much, James. Welcome to the seat.

[James O'Sullivan, President and CEO at Power Corporation]

Thank you.

[Operator]

Thank you. There are no further questions. I would like to turn the conference back over to Mr. Steven Hung for any closing remarks.

[Steven Hung, Head of Investor Relations at Power Corporation]

Thank you for joining us today. Following the call, a telephone replay will be available later this morning, and the webcast will be archived on our website, powercorporation.com, for one year. We look forward to our next update on our Q3 results, and have a great summer. This concludes the call.

[Operator]

Thank you. Ladies and gentlemen, this concludes your conference call for today. Thank you for participating, and you may now disconnect your line.

Participants

Analysts

• Steven Hung, Head of Investor Relations at Power Corporation
• James O'Sullivan, President and CEO at Power Corporation
• Jake Lawrence, EVP and CFO at Power Corporation
• Doug Young, Analyst at Desjardins Capital Markets
• Matthew Fortini, Analyst at CIBC
• Michael McCue, Analyst at TD Securities
• Bart Dziarski, Analyst at RBC