Mr Clarke will drive Challenger's domestic and international institutional growth strategy across the annuities business as well as the Fidante Partners boutique funds management business, according to the announcement.
Challenger's chief executive of distribution, product and marketing, Paul Rogan, said Challenger is "delighted" to have secured someone with "deep industry knowledge and investment experience".
"In the year to 31 March we generated more than $6 billion in institutional flows and look forward to growing this figure over the next 12 months," he added.
Mr Clarke was previously at Russell Investments where he was managing director, institutional, according to the announcement. Mr Clarke also previously held the role of director, international for AMP Capital Investors and was chief executive of Goldman Sachs JB Were Asset Management.
Challenger's active institutional relationships and alliances include QSuper, Bendigo and Adelaide Bank, Mercer, Australian Super, the Government of Singapore Investment Corporation and HESTA.
