Invesco Ltd. (NYSE: IVZ) and MassMutual have announced a significant agreement that includes the repurchase of $1 billion of Invesco preferred stock, a new strategic product and distribution partnership with Barings, and a seed capital investment to support the scale of both firms' private wealth offerings.
The repurchase of $1 billion of outstanding preferred stock is expected to be funded through debt financing and is anticipated to be earnings accretive to Invesco beginning in the second half of 2025. This move will enable further deleveraging and improve balance sheet flexibility while retaining the ability to invest in growth initiatives and return capital to shareholders.
In addition to the repurchase agreement, Invesco has also announced an increase in its quarterly dividend from $0.205 to $0.210 per common share. MassMutual remains a significant Invesco shareholder with approximately 18.2% ownership of common shares outstanding.
Furthermore, Invesco and Barings have entered into a new strategic product and distribution partnership agreement for U.S. wealth channels, with MassMutual providing $650 million initially to accelerate the growth and scale of the partnership's innovative U.S. wealth management product offerings.
The partnership will initially focus on private credit solutions for clients in the U.S. wealth channel, leveraging both firms' global private credit and public fixed income expertise, product structuring capabilities, and asset allocation capabilities. Over the longer term, the partnership aims to meet clients' income needs across the multi-strategy credit spectrum and a wide range of investment vehicles in the U.S. wealth market.
Invesco's President and CEO, Andrew Schlossberg, stated that the partnership with Barings represents an evolution in their strategic relationship with MassMutual and expressed excitement about the collaboration, emphasizing the opportunity to improve their overall leverage profile and deliver new solutions to clients.
MassMutual's Chairman, President, and CEO, Roger Crandall, highlighted the mutually beneficial nature of the relationship, noting that it enhances their global asset management capabilities and provides additional financial flexibility to strategically reinvest in their business.
Mike Freno, Chairman and CEO of Barings, expressed enthusiasm about the partnership with Invesco, emphasizing the opportunity to expand wealth investors' access to private markets in the U.S. wealth market.
These developments reflect Invesco and MassMutual's commitment to strengthening their strategic partnerships, enhancing their offerings, and improving their financial flexibility to support long-term growth objectives.
As of March 31, 2025, Invesco managed $1.84 trillion in assets on behalf of clients worldwide. Following these announcements, the company's shares moved 9.7%, and are now trading at a price of $13.67. For more information, read the company's full 8-K submission here.
