Invesco Commercial Real Estate Finance Trust Closes $1.2 Billion CLO in Landmark Deal

Invesco Commercial Real Estate Finance Trust Successfully Closes $1.2 Billion CLO

In a significant move that highlights the ongoing robustness of the commercial real estate market, Invesco Commercial Real Estate Finance Trust, Inc. (more widely known as INCREF) has announced the successful closure of a $1.2 billion commercial real estate collateralized loan obligation (CLO) on May 7, 2025. This inaugural transaction, named INCREF 2025-FL1, showcases the organization's commitment to innovative financing solutions designed to cater to the needs of modern investors.

Invesco's CEO, Bert Crouch, emphasized the company's long-standing tradition of innovation that has kept it at the forefront of the commercial real estate sector for over 40 years. With this issuance, INCREF not only affirms its deep expertise in capital markets related to real estate but also reinforces its pledge to excellence within the realm of real estate financing. The CLO itself demonstrates a well-thought-out structure designed to withstand the fluctuations of current market conditions, guaranteeing a secure basis for potential investments.

The CLO, orchestrated by Morgan Stanley, has secured bookrunning support from leading financial firms, including Barclays, Citigroup, and Wells Fargo. The underlying loan portfolio is comprised of approximately 55% multifamily loans and 45% industrial loans, reflecting a diversified investment strategy aimed at minimizing risk while maximizing potential returns.

Charlie Rose, the President and Lead Portfolio Manager of INCREF, remarked on the success of the issuance, especially in light of current market volatility. He communicated the issuance's significance as it stands as the largest diversified CRE CLO to land in the U.S. market in the past three years. This milestone signals a robust vote of confidence in the sector, marking a noteworthy development for all stakeholders involved.

Notably, the issuance has also led to significant improvements in INCREF's overall cost of capital, further strengthening its liquidity position. Rose highlighted that this strategic maneuver arrives at a time when the organization's liquidity is exceptionally strong, ensuring that INCREF continues to push forward despite market uncertainties.

Invesco Real Estate has been making waves as one of the most active alternative lending platforms in the U.S., ranking fourth among investor-driven lenders, according to a 2024 report from the Mortgage Bankers Association. The team's success can be attributed to its property-first mentality and a credit-over-yield approach, fostering long-standing partnerships with relationship borrowers.

About INCREF

Founded with a focus on private credit secured by real estate, Incref is a monthly net asset value (NAV) non-listed real estate investment trust (REIT) that originates, acquires, and manages a portfolio of loans secured primarily by commercial real estate. This commitment to solid investments showcases the trust’s significant role within the broader financial landscape.

About Invesco Real Estate

Invesco Real Estate emerges as a global leader within the real estate investment management sector, boasting $85 billion in assets under management as of December 31, 2024. The firm, with over 605 employees across 21 regional offices, has a four-decade history of exploration across the risk-return spectrum in various forms of equity and debt investments. This proactive approach is designed to meet the diverse needs of a dynamic global market.

About Invesco Ltd.

Invesco Ltd. stands as an independent investment management firm focused on delivering an investment experience that empowers individuals to maximize their potential. With a wide range of active, passive, and alternative investment capabilities available across more than 20 countries, Invesco managed a total of $1.8 trillion in assets as of the end of March 2025.

This strategic issuance by INCREF symbolizes not just a milestone achievement but also the firm’s ongoing promise to adapt and innovate within the ever-evolving landscape of commercial real estate finance. As INCREF continues to blaze trails in funding and investment strategies, industry stakeholders and observers alike will keenly aim to follow its progress and success in the coming years.