Invesco is cutting management fees by 20% for investors in its $12.7 billion core real estate fund through the end of 2027. The firm disclosed the move in a recent investor letter reviewed by Bloomberg, alongside a tender offer that will let investors exit at 95% of net asset value, funded by affiliate IDR Investment Management. Invesco and its senior leaders will add up to $150 million to the fund to reinforce alignment, echoing a $400 million Blackstone backstop earlier this year. The fund carries a redemption queue of $2.2 billion, and average yearly redemption payments have run at 5.3% of net asset value since 2022, up from a historical average near 3.5%. Clients who commit at least $10 million will pay zero fees on new commitments for a year, and the fund returned 3.53% through June 30, beating its benchmark index by 78 basis points.
Invesco PlcInvesco cuts fees 20% and offers tender at 95% NAV to stem redemptions, hurting revenue and signaling stress.
Blackstone Group IncIDR Investment Management funds the tender offer, potentially increasing its stake or involvement.
