Power Corporation of Canada's (TSX:POW) third-quarter 2026 results, released on November 11, show that one of Canada's best-known family Business empires is growing in value. The Holding Company is controlled by the Desmarais family through a family trust. It reported adjusted net asset value of $113.28 a share at September 30, up 32.1% since the end of 2025. Most of that growth came from its financial services subsidiaries and from its stake in Wealthsimple, the Fintech company.

How the Desmarais Family Controls Power Corporation

Power Corporation is a Montreal-based holding company built over decades by the late Paul G. Desmarais. After his death in October 2013, direct and indirect control of the company passed to the Desmarais Family Residuary Trust, a Quebec testamentary trust established for his family. A news release issued at the time said the family-member trustees decide how the trust votes its Power Corporation shares. The trustees named then were Jacqueline Desmarais, Paul Desmarais Jr. and André Desmarais, along with two other trustees.

Control rests mainly on Power Corporation's participating preferred shares. These carry multiple votes per share and are held almost entirely by the trust, while public investors mainly hold subordinate voting shares. The company's 2020 reorganization simplified the group by eliminating the separately listed Power Financial and changed parts of this structure. Family control has been publicly confirmed since 2013.

Concentrated voting control is common among Canada's family empires. The Rogers family relies on dual-class shares, while the Westons and Thomsons keep control mainly through large majority holdings. Each model lets a family keep strategic control while public investors Supply capital.

What the Third Quarter Showed

Net Earnings attributable to common shareholders rose to $1.006 billion, or $1.60 a share, from $703 million, or $1.10 a share, a year earlier. Adjusted net earnings were $964 million, or $1.53 a share, compared with $863 million, or $1.35 a share. Book Value per share rose 5.4% since December to $38.26.

Great-West Lifeco (TSX:GWO), 68.4% owned, contributed $905 million to Power's adjusted earnings, up from $842 million. Lifeco's own adjusted net earnings rose 8.0% to $1.323 billion, and its adjusted Return on Equity reached a record 19.4%. During the quarter it completed a US$340 million Acquisition of Milliman's retirement plan and benefits administration business, which adds about US$134 billion of client assets.

IGM Financial (TSX:IGM), 64.5% owned, contributed $227 million, up from $188 million. IGM reported record net inflows of $3.4 billion. Its Assets under management and advisement reached $381.7 billion, up 26.1% from a year earlier, and its earnings included a $144 million gain from taking a larger position in Northleaf. The group's alternative asset managers, Sagard and Power Sustainable, together contributed a $35 million adjusted loss.

Wealthsimple Grows in Value

Wealthsimple is becoming a larger part of the group's value. Power reported a 52.3% group interest in the company. Wealthsimple had 3.8 million clients and $169 billion of assets under administration at quarter-end. On October 27 it announced a financing round of up to $425 million, in which Power invested $68 million and IGM $96 million. Power's release valued the group's interest at $5.4 billion, up from $4.7 billion. The release describes this as a 13% gain, although the dollar figures imply closer to 15%.

The European side of the empire was weaker. Groupe Bruxelles Lambert (GBL), held jointly with Belgium's Frère family through Parjointco, reported net asset value of €12.9 billion, or €99.21 a share, down from €14.0 billion at the end of 2025. After the quarter, GBL moved ahead with a tender offer for Italian drugmaker Recordati alongside Private Equity firm CVC, investing up to €1.4 billion.

Capital Returns and Simplification

Power has returned $2.4 billion to shareholders through the first nine months of 2026: $1.2 billion in dividends and $1.2 billion in buybacks. Shares outstanding fell to 624.6 million from 635.7 million in December. The board declared a quarterly Dividend of 66.75 cents a share, payable February 1, 2027. The company also sold LMPG Inc. during the third quarter, continuing its exit from businesses outside its core holdings.

Chief executive James O'Sullivan said transactions completed at Great-West, IGM and Wealthsimple "position Power Corporation for continued growth." He is not a member of the Desmarais family. That reflects a broader pattern among older Canadian family empires: the family keeps control through its voting shares, while professional managers run day-to-day operations and Capital allocation.

Risks and Considerations

Family control has trade-offs for outside shareholders. Supporters say it encourages long-term decision-making. Critics argue that dual-class shares limit the influence of minority investors. Like most holding companies, Power has also typically traded below the value of the assets it owns. That gap can narrow or widen depending on market sentiment and capital allocation decisions.

The group's earnings depend heavily on financial markets. Equity markets drive fee income at IGM and Lifeco, while interest rates and Credit conditions affect Lifeco's insurance and retirement businesses. The Wealthsimple valuation is based on private financing rounds rather than public trading and could change. GBL's falling NAV shows that European investments can drag on results even when the Canadian businesses perform well.

Conclusion

The third-quarter results show the Desmarais family's empire growing mainly through strong performance at Great-West Lifeco and IGM and a higher valuation for Wealthsimple, while GBL in Europe declined. The 32% rise in adjusted NAV per share this year, combined with $2.4 billion in Shareholder returns, makes Power one of the strongest recent examples of a Canadian family-controlled conglomerate building value. Whether that continues depends on market conditions, the integration of recent acquisitions and how well management allocates capital.