He joined the large Canadian firm Power Corporation, and served on its board from 1988 to 2016.
Rae studied at Queen's University in Kingston, Ontario from 1963 to 1967, graduating with an honours degree in politics and economics.
He served as executive assistant to federal Cabinet Minister of National Revenue Jean Chrétien from 1967 to 1971, which was Chretien's first term in the Liberal Cabinet; Lester Pearson was then serving as Canada's prime minister, and would retire from that role the next year, with Pierre Trudeau becoming prime minister, and with Chretien remaining in the Cabinet as Minister of Indian Affairs and Northern Development.
Rae joined Power Corporation of Montreal in 1971, served as a member of its board of directors from May 1988 until the end of 2016, and became its executive vice-president in 1996.
During Chretien's terms as prime minister, from 1993 to 2004, Rae served as a key political adviser.