- Invesco (IVZ, Financial) to repurchase $1 billion of preferred stock from MassMutual, enhancing capital structure.
- Strategic partnership with Barings includes $650 million funding for private credit solutions in U.S. wealth channels.
- Increased quarterly dividend from $0.205 to $0.210 per common share, reflecting financial strength.
Invesco Ltd. (IVZ) announced a significant financial restructuring with the repurchase of $1 billion of its $4 billion Series A Preferred Stock from MassMutual. This strategic move is set to close in May 2025, with plans for potentially further repurchasing the remaining $3 billion. Funded through debt financing, the transaction is expected to be earnings accretive starting in the second half of 2025, contributing to balance sheet flexibility and enabling further deleveraging while maintaining growth investments and shareholder returns.
In tandem with the repurchase, Invesco increased its quarterly dividend by 2.4% from $0.205 to $0.210 per common share, demonstrating confidence in its financial position. MassMutual remains a key stakeholder, holding approximately 18.2% of Invesco's common shares, further consolidating a strategic alliance that includes commitments exceeding $3 billion and $9 billion in managed assets through various platforms.
The alliance with Barings, MassMutual's global asset management subsidiary managing $442 billion in assets, marks a new strategic product and distribution partnership focusing on private markets capabilities in U.S. wealth channels. This collaboration will be bolstered by a $650 million initial funding from MassMutual, aimed at accelerating growth in innovative U.S. wealth management product offerings. The partnership focuses on delivering differentiated private credit solutions, leveraging both firms' expertise in global private credit and public fixed income markets.
This strategic initiative positions Invesco to tap into the burgeoning demand for private market investments, offering comprehensive solutions that were traditionally available to institutional investors but are now being made accessible to a broader wealth management clientele.
