Invesco Beats Earnings Estimates, Announces $1B Stock Buyback With MassMutual

Shares of Invesco Real Estate stock were trading in the green by more than 10 percent on Tuesday morning after the investment management company reported better-than-expected first-quarter earnings results.

For the first quarter of 2025, Invesco reported total assets under management of $1.8 trillion, an 11 percent increase from the same time last year. Meanwhile, quarterly adjusted net income came in at $200 million, or 44 cents per share. Analysts were expecting adjusted earnings per share of 38 cents, and the company’s net income was $171 million for the first quarter of 2025, an 18 percent rise when compared to the same quarter in 2024. 

“Our strategic priorities were conceived with conviction that regardless of near-term market volatility, cyclical, structural or fundamental developments, our focus would leverage the best of Invesco, ignite our growth engines and deliver durable results,” Invesco President and CEO Andrew Schlossberg said during the company’s first-quarter earnings call on Tuesday morning. “The hallmarks of the global Invesco platform place us in the position of strength to navigate the current operating environment.”

Aside from its increase in assets under management, Invesco also announced it will repurchase $1 billion of its $4 billion of outstanding Series A preferred stock from insurance company MassMutual in an all-cash deal funded through debt financing. The buyback deal is expected to close in May.

“The transaction will be earnings accretive in the second half of this year, and the accretion will increase over time as we pay down the term limit,” Invesco Chief Financial Officer Allison Dukes said during the call. “Ultimately, once the loans are repaid, we expect the [earnings per share] accretion related to this transaction will reach 13 cents on a run-rate basis.”

Invesco also announced a partnership with Barings, MassMutual’s $442 billion global asset management subsidiary, which will focus on providing Invesco’s clients with differentiated and “industry-leading” private credit solutions. 

“The partnership is going to rely on Invesco’s deep client relationships in the U.S. wealth management channels for our distribution and the extensive product structuring and unique asset allocation capabilities of both firms,” Schlossberg said on the call. “We’re also excited that MassMutual intends to support this initiative with an initial investment of $650 million in seed and co-investment capital to accelerate bringing these initial and innovative solutions to our clients.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.