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Invesco and Barings Collaborate on Strategic Partnership

Invesco Ltd. has taken a significant step forward in its commitment to the private markets sector by completing its first initiative in a new alliance with Barings. Unveiled recently, this partnership aims to revolutionize private market solutions for investors, reflecting the dynamic needs of today’s financial landscape. Invesco, recognized globally as a leader in asset management, has a robust $131 billion invested in private markets, further emphasizing the importance of this collaboration.

Rapid Progress in Partnership

In just five months since the announcement of the partnership, Invesco has successfully rolled out the Invesco Dynamic Credit Opportunity Fund, a closed-end interval fund that strategically allocates resources across a diverse range of private corporate credit assets. This rapid deployment underscores Invesco’s focus on agility and responsiveness to market demands.

Andrew Schlossberg, President and CEO of Invesco, expressed confidence in the partnership's potential, stating: “We're pleased with the speed at which we've been able to bring our partnership with Barings to market. By combining our complementary strengths, we're accelerating our ability to meet client demand for income-oriented solutions in a rapidly evolving market.”

Expanding Access to Private Credit

On the other side, Mike Freno, Chairman and CEO of Barings, emphasized the groundbreaking opportunities this partnership opens for U.S. wealth clients to access private credit. He noted that many investors previously regarded this asset class as out of reach. Through this collaboration, Invesco and Barings are working to design scalable solutions tailored to meet investors' needs in an evolving market.

To bolster the partnership's growth, MassMutual, Barings' parent company, is set to commit $650 million initially, which includes a $150 million investment into the Invesco Dynamic Credit Opportunity Fund. This strong backing is expected to significantly enhance the scale and stature of the partnership's innovative offerings in U.S. wealth management.

The Role of Barings and Invesco Teams

Invesco will manage the Invesco Dynamic Credit Opportunity Fund in collaboration with Barings, ensuring seamless execution and implementation of the fund’s strategy. This role is spearheaded by Scott Baskind, Invesco’s Chief Investment Officer and Head of Global Private Credit. Moreover, Barings' influential executives, Matthew Freund and Michael Searles, will join Baskind and the Global Private Credit team at Invesco as portfolio managers, ensuring a diverse and experienced management team oversees the fund.

Schlossberg remarked on the growing investor interest in private markets, particularly private credit and real estate. He mentioned, “Investors are seeking differentiated private markets strategies and greater accessibility to the asset class. We’re seeing strong demand across private credit and real estate, and our platform is well-positioned to navigate across market cycles and deliver value to our clients.”

Future Outlook of Private Markets

As the partnership progresses, Invesco and Barings aim to leverage their respective capabilities, focusing on multi-strategy credit offerings across various investment vehicles tailored specifically for the U.S. wealth channel. This collaboration heralds a future where private markets continue to grow more accessible, and Invesco's focus remains on offering scalable, income-oriented solutions that resonate with investors’ evolving appetites.

The expansion in private credit and real estate capabilities reflects a broader market opportunity driven by ongoing structural shifts in capital formation and evolving investor preferences. As this partnership unfolds, both Invesco and Barings are poised to set new benchmarks in the private markets landscape.