Invesco’s Assets Under Management Now Total a Record $2T

Invesco shrugged off a volatile start to the year under new tariffs and high interest rates to report strong earnings and record-breaking assets under management (AUM) in the third quarter of 2025. 

During its third-quarter earnings call Tuesday, the global asset management firm reported $28.9 billion of net long-term inflows, an increase of 85 percent from the previous quarter and its best quarterly in-flow since 2021. These totals brought AUM to firm-record $2.1 trillion, an increase of 6.2 percent from the prior quarter. 

Adjusted operating revenues rose $125 million to $1.64 billion in the third quarter, compared to $1.51 billion in the second quarter of 2025, and investment management fees increased by $83.8 million compared to the previous quarter. However, operating expenses also increased quarter-to-quarter, rising $68.2 million compared to the second quarter in 2025. 

Andrew Schlossberg, president and CEO, said the firm “performed remarkably well” by leveraging its ability to drive growth across different regions, investment channels and asset classes. 

“We delivered another strong quarter of broad-based progress, and we continue to generate significant operating leverage while executing on initiatives to unlock value across the organization to deliver for both clients and shareholders,” he said. 

Allison Dukes, senior managing director and chief financial officer, got a bit more granular and reported that AUM increased by $329 billion, or 18 percent, compared to the third quarter in 2024, while average long-term assets under management stood at $1.6 trillion, an increase of 16 percent over the same quarter last year. 

“Growth in total assets under management during the quarter was driven by market gains of $99 billion and net long-term inflows of $29 billion,” Dukes said. “Net revenues, adjusted operating income, and adjusted operating margin all significantly improved from last quarter, and the third quarter of 2024, while adjusted operating expenses continued to be well managed.” 

Schlossberg noted that the firm benefited from increasing investor confidence following the Federal Reserve’s interest rate cut in September. The new capital markets dynamics helped the firm reach its firm-record AUM, and exchange-traded fund and index capabilities grew by 15 percent in the quarter, with five new ETF funds launched in the last three months.  

The firm also grew its investment footprints across the world: Nearly 40 percent in long-term AUM is now from clients outside of the U.S., and two-thirds of inflows during the quarter were from Europe and Asia, said Schlossberg. 

Schlossberg highlighted the firm’s new partnership with Barings that will include a $650 million initial commitment from MassMutual, Barings’ parent firm, with the expectation that the strategic partnership will create new credit offerings across U.S. wealth channels and help seed a new “Dynamic Credit Opportunity Fund” for U.S. clients.  

Schlossberg emphasized that by combining the two firm’s “complementary strengths,” both Barings and Invesco are accelerating their ability to meet client demand for income-oriented solutions in an evolving market

“The speed at which we have been able to execute is notable,” said Schlossberg. “This product strategy is an integral fund targeting the U.S. wealth management market that dynamically allocates across the full spectrum of private corporate credit.”

Invesco private markets posted $600 million of net inflows driven by private credit and direct real estate. The firm launched three new collateralized loan obligations during the quarter and direct real estate investment generated $100 million of net inflows. The firm’s INCREF, its real estate debt strategy, holds assets of $4 billion after only two years of operations and sits on three of the four major U.S. wealth management platforms. 

“Our real estate team also remains well positioned in the institutional markets, with $7 billion of dry powder to capitalize on emerging opportunities,” said Schlossberg. “Our partnership with Barings should help accelerate growth for overall private market strategy in the wealth channel.”   

Brian Pascus can be reached at bpascus@commercialobserver.com.