Invesco Repurchases $1 Billion Preferred Stock

By Tamara Parker • Tuesday, April 22 15:17 • Permanent Link

Invesco Ltd. and MassMutual have announced a significant agreement, with Invesco repurchasing $1 billion of its outstanding preferred stock from MassMutual, funded through debt financing and expected to close in May 2025. This move is anticipated to be earnings accretive for Invesco starting in the second half of 2025, providing flexibility for further deleveraging and investment in growth initiatives while enhancing the balance sheet. In addition, Invesco has raised its quarterly dividend from $0.205 to $0.210 per common share.

MassMutual, holding approximately 18.2% ownership of Invesco's common shares, has also announced a new strategic product and distribution partnership with Barings, a $442 billion global asset management subsidiary of MassMutual. MassMutual is set to invest $650 million to support the growth and scale of the partnership's innovative U.S. wealth management product offerings, particularly focusing on private credit solutions for clients.

Invesco's President and CEO, Andrew Schlossberg, highlighted the partnership's potential to strengthen the balance sheet, deliver new solutions to clients, enhance flexibility, and improve the overall leverage profile while being earnings accretive. MassMutual's Chairman, President, and CEO, Roger Crandall, emphasized the value this relationship adds to MassMutual's global asset management capabilities and strategic investments, providing additional financial flexibility to reinvest strategically and progress on the long-term strategy.

Barings' Chairman and CEO, Mike Freno, expressed excitement about the partnership's potential to expand wealth investors' access to private markets, aligning with Barings' long-term growth objective of scaling alternative assets in the U.S. wealth market.

Invesco managed $1.84 trillion in assets on behalf of clients worldwide as of March 31, 2025. This development signifies a significant shift in the financial landscape for Invesco, MassMutual, and Barings, with a focus on strategic partnerships and financial flexibility to drive long-term value. Following these announcements, the company's shares moved 8.0%, and are now trading at a price of $13.46. If you want to know more, read the company's complete 8-K report here.

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