Third offshore fund emerges under Carney’s watch, raising political questions

A third investment fund led by Liberal Leader Mark Carney during his time at Brookfield Asset Management has surfaced in the Cayman Islands, stirring fresh scrutiny over his private-sector background. 

The revelation follows two previously registered funds, together worth $25 billion USD, which were registered in Bermuda while Carney served on the firm’s board of directors from 2020 to 2025.

According to documents obtained by Radio-Canada, the new fund named the Catalytic Transition Fund is valued at $5 billion USD and was registered in the Cayman Islands, a well-known tax haven. 

The fund adds another wrinkle to the ongoing political debate about Carney’s leadership credentials and how he might handle tax issues should his Liberal Party win the April 28 federal election.

The two earlier Brookfield funds, the Brookfield Global Transition Fund ($15 billion USD) and the Brookfield Global Transition Fund II ($10 billion USD), were registered in Bermuda in 2021 and 2024, respectively. 

Brookfield has repeatedly declined to comment on the specific reasons for placing these funds offshore, but insists its structures are legal and conform to international tax standards.

In fact, establishing funds in jurisdictions like the Cayman Islands or Bermuda is considered routine in high finance. 

Most major investment firms rely on offshore registrations to avoid double taxation in multiple countries, with profits flowing back to investors who pay taxes in their own jurisdictions. 

While legal, these arrangements can become political flashpoints, especially during an election campaign that is focused on tax fairness and transparency.

Critics argue such jurisdictions undermine Canada’s tax base, even if many companies say they comply with all tax requirements in every country where they operate. 

Other political parties are seizing on the fact that Carney did not make public any details about the assets he placed in a blind trust when he took office last month.

Conservative Leader Pierre Poilievre has repeatedly questioned Carney’s ties to Brookfield, suggesting the former central banker’s political connections helped boost his private wealth. 

Conservative MP Michael Barrett echoed Poilievre’s concerns, saying Canadians deserve to know precisely which Brookfield assets Carney might still hold, now shielded by his blind trust.

“He needs to immediately release his personal financial holdings so Canadians can judge for themselves,” said Barrett.

Carney, who led the Bank of Canada before moving on to the Bank of England, has defended Brookfield’s use of offshore structures as a matter of “efficiency.” 

In late March, he said this approach avoids the same profits being taxed multiple times before reaching Canadian investors. 

Under this system, Carney argued, Canadians end up paying the required taxes domestically.

The Catalytic Transition Fund, launched in 2024, focuses on “clean energy and transition assets,” particularly in emerging markets. 

Its initial investor was Alterra, billed as the largest private climate fund and financed by the United Arab Emirates. 

The Caisse de depot et placement du Quebec and other institutional investors later joined. 

Brookfield has stated it does not engage in tax avoidance and that its entities pay all applicable taxes in every place where they do business.

Still, many remain unconvinced. 

The Conservative Party has spent weeks raising concerns that Carney’s Brookfield ties could lead to conflicts of interest. 

The Conservatives also point out that Brookfield is a major player in renewable energy and green technology, areas the Liberals are eager to support through government policy.

NDP Leader Jagmeet Singh says such offshore registrations deprive Canada of billions in potential revenue. 

Singh has promised to put an end to tax agreements with places like Bermuda if his party gains enough influence in Parliament, which would only happen under a Liberal minority government. 

Singh and others say these deals make it too easy for corporations to shift money outside Canada and reduce their overall tax burden.

Bloc Quebecois Leader Yves-Francois Blanchet has also joined the chorus of critics, saying Carney should come clean about “his foreign assets” rather than leaving voters to guess. 

“Mr. Carney thinks that taxes are simply for normal people, and not for millionaires or billionaires like him,” said Blanchet.

The Liberal campaign has tried to brush aside these accusations, pointing out that Carney resigned from Brookfield in January 2025 and no longer has any involvement with the firm. 

The Liberals have also referred all questions about the offshore funds to Brookfield, insisting Carney took all appropriate steps to avoid conflicts of interest, including setting up a blind trust in collaboration with Canada’s ethics commissioner.

As the campaign continues, Carney faces intensifying pressure to disclose full details about his personal finances. 

While the use of offshore funds is a common practice in global finance, the optics remain challenging for a leader promising accountability and fairness.

With the April 28 vote coming up, Carney’s offshore ties have become a rallying point for opponents seeking to undermine his credibility. 

Whether voters view the arrangement as a routine corporate practice or a sign of preferential tax treatment could influence voters and shape the debate on how Canada’s political leaders handle their money and their obligations to the public.