Clarke was born in Van Diemen's Land, the son of the pastoralist William John Turner Clarke. He arrived in the Port Phillip District (the future Victoria) in 1850, where he managed many of his father's properties and acquired some of his own. Upon his father's death in 1874, he became the largest landowner in the colony. Clarke was made a baronet for his work as the head of the Melbourne International Exhibition, which brought Australia to international attention. He also served terms as president of the Australian Club, president of the Victorian Football Association, and president of the Melbourne Cricket Club, and was prominent in yachting and horse racing circles. Clarke gave generously to charitable organisations, and also made significant financial contributions to the Anglican Diocese of Melbourne and the University of Melbourne. He was a member of the Victorian Legislative Council from 1878 until 1897, although he was not particularly active in politics.