(Bloomberg) -- Brookfield Asset Management Inc. is shuffling its senior ranks as its prepares to reorganize its core investment business, mapping out a potential long-range succession plan for Chief Executive Officer Bruce Flatt. 

The Toronto-based firm said it’s on track to complete the listing of 25% of its asset-management business by the end of the year and said Connor Teskey will be its president, with Flatt as CEO. Teskey will continue to run Brookfield’s renewable power business. 

Former Bank of England Governor Mark Carney will be the chairman of the newly-separated unit, which will be called Brookfield Asset Management Ltd. The parent company is to be renamed Brookfield Corp.; Flatt will remain CEO of that as well. 

“As we look to the next phase of our growth, and concurrent with the split-out of our Asset Management business before the end of 2022, we believe it is once again time to further strengthen our senior management team with the elevation of the next generation of leaders,” Flatt said in a letter to investors. 

Brookfield rose 0.9% to $53.42 at 9:51 a.m. in New York. The shares are down 12% this year. 

Nicholas Goodman will be appointed president of the parent company in addition to his current role as chief financial officer. Anuj Ranjan will be president of the private equity group, in addition to his overall business development activities of the asset manager.

Succession has been a major point of discussion in private-equity circles this week after Carlyle Group Inc. CEO Kewsong Lee stepped down abruptly, reversing a changing of the guard at the firm. However, Flatt is only 57 years old and is likely years away from handing off his CEO roles.

Read more: Carlyle Founders Balked at Ceding Power to Their Chosen CEO

Brookfield saw a record $56 billion in inflows since the end of the first quarter, but funds from operations declined 13% in the second uarter on weaker results in its private equity and infrastructure units. The firm’s realized carried interest plunged 77% to $48 million,on a net basis,from the same period a year ago. 

Brookfield said it earned $1.4 billion in funds from operations, or 84 cents a share, according to a statement Thursday. That exceeded the 80 cents a share estimated by analysts in a Bloomberg survey. 

Fear of a recession, provoked by soaring inflation and rising interest rates, has weighed down deal-making and initial public offerings -- crunching valuations and restricting the ability of private equity firms to exit investments. Apollo Global Management Inc.’s principal investing income plunged 83% as unfavorable market conditions led to a reduction in asset sales, while Blackstone Inc. has written down holdings, included those tied to the technology and industrials sectors last quarter. 

Brookfield sold $21 billion of assets in the quarter and deployed $20 billion into new investments in the quarter. 

(Updates with share price, decline in realized carried interest)

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