Invesco and MassMutual Announce Repurchase of $1 billion of Invesco Preferred Stock and New Strategic Product and Distribution Partnership with Barings

Core Insights - Invesco Ltd. has entered into an agreement with MassMutual to repurchase $1 billion of its$4 billion outstanding Series A Preferred Stock, which is expected to close in May 2025 and will be funded through debt financing [1] - The repurchase is anticipated to be earnings accretive starting in the second half of 2025, enhancing Invesco's balance sheet flexibility while allowing for growth investments and shareholder returns [1] - MassMutual remains a significant shareholder in Invesco, holding approximately 18.2% of common shares, and has previously committed over $3 billion in seed and co-investment capital [1] Partnership Developments - Invesco and Barings, a subsidiary of MassMutual, have announced a strategic product and distribution partnership aimed at U.S. Wealth channels, with MassMutual committing$650 million to support this initiative [2][3] - The partnership will focus on providing differentiated private credit solutions, leveraging both firms' expertise in global private credit and public fixed income [3][4] - Over the long term, the collaboration aims to meet clients' income needs across various investment vehicles in the U.S. Wealth market [4] Strategic Goals - The partnership is expected to enhance Invesco's ability to deliver unique income solutions for the U.S. Wealth segment, while also improving its overall leverage profile and financial flexibility [5] - MassMutual's collaboration with Invesco and Barings is designed to strengthen its global asset management capabilities and expand product and distribution opportunities [6] - Barings aims to scale its alternative asset capabilities in the U.S. wealth market, partnering with Invesco to enhance access to private markets for wealth investors [6]