Capabilities - Alternatives
With more than 200 investment professionals managing alternative strategies across North America, Europe and Asia-Pacific, Invesco offers a spectrum of alternative capabilities including Commodities, Risk Parity, Bank Loans, Macro Strategies, Market Neutral, Real Estate and Private Equity. With over 25 years of experience managing alternative assets, we help institutional investors worldwide building their alternatives portfolios.
As of June 30, 2018, Invesco manages over US$145.9 billion of alternative assets globally.
Established in 1983, Invesco Real Estate (IRE) manages US$64.8 billion of global real estate investments in private real estate, real estate securities and real estate debt. With 484 employees and 21 offices worldwide, our professionals focus on top-down market and property type fundamentals combined with bottom-up local market intelligence. Senior members of the management team have worked together for an average of 15 years, contributing to the consistent implementation of Invesco’s investment strategy and resulting performance.
The Invesco edge:
- Ability to leverage off the tremendous amount of market, property and company knowledge available through the direct real estate investment side of the business. The input of these property analysts, who focus on specific geographic markets, offers information on property transactions, cap rates and day-to-day changes and trends in markets that is extremely insightful.
- Multi-factor approach to securities valuation. We believe that this approach is appropriate given the challenge of valuing securities on a relative basis as factors of performance change over time. It also provides for the opportunity to diversify sources of return so we are not dependent on a single source of opportunity to provide outperformance.
- A history of managing direct real estate portfolios since 1983 and real estate securities portfolios since 1988. Our research-focused investment process has been in place more than 20 years and is the cornerstone of our investment discipline, the source of our statistically supportable investment decisions, and the basis of our long-term favorable investment track record.
- Size and infrastructure that enables us to offer depth of personnel, capability and experience in key areas such as investments, trading, client service and operations.
- Continuous monitoring of the relationship between our real estate securities assets under management and the size and liquidity of the real estate securities marketplace. We believe we have a responsibility not to exceed an amount under management that we can prudently manage under a given set of market conditions.
Private Equity – WLR
WL Ross & Co. LLC focuses on control-oriented investments in industries or companies undergoing distress or dislocation. Often these companies need operational and strategic support in addition to capital. We partner with management teams to provide this support and expertise. Our experience and flexible approach allows us to invest across a company's capital structure to the benefit of our platform companies and investors.
Our expertise includes investing in companies with deficient balance sheets operating in industries in a state of dislocation. Historically, many of our investments were viewed as contrarian at the time of the initial investment, but provided a platform to rationalize and consolidate an otherwise dislocated and fragmented industry in transition.
The Invesco edge:
- A leading value-oriented, global private equity firm
- An Investment Committee that have 18 years of average experience.
- An active investment approach that exercises direct and indirect control to lead the recovery of our portfolio companies.
- A global reach that gives us the flexibility to pursue opportunities with the best risk-reward potential.
- Successful investments across a number of industries, most recently including energy, financial services, transportation, building materials, metals & mining, and real estate.
Private Equity – IPC
Invesco Private Capital believes that private equity offers the potential for above average returns to investors who understand the long-term, illiquid nature of the asset class. To achieve strong absolute returns, we shape our fund-of-funds portfolios with the following in mind:
- We construct our portfolios over a multi-year period incorporating time diversification.
- To manage portfolio risk we diversify by fund size, stage of investment, manager strategy, geography and industry.
- We apply our fundamental due diligence process to evaluate individual partnerships and their suitability for the portfolio.
Our portfolios are constructed with a majority of small and mid-sized funds to deploy capital more effectively and with greater flexibility. We build the core of each portfolio on premier partnerships that are often closed to new investors. We also seek to strengthen long-term performance through the selective backing of emerging manager funds spinning out from established groups.
The Invesco edge:
- More than 30 years of experience in private equity investing
- One of the first managers to actively invest in private equity partnerships.
- Proven track record of strong long-term performance.
- Strong relationships with leading general partners.
- Access to a group of partnerships generally closed to new investors.
- Specialized emerging manager capabilities.
Invesco Balanced-Risk Allocation strategy is a risk parity strategy that seeks to generate returns by investing in equity, bond and commodity markets using a long-only, risk-balanced investment process. Specifically, the team selects the appropriate assets for the strategy, allocates them based on their proprietary risk management techniques, and then applies a tactical allocation process to improve expected returns. The result is a strategy that strives to achieve equity-like returns with bond-like risk over time.
The Invesco edge:
- Seeks strong performance in differing economic and inflationary environments.
- Limited and short-lived drawdowns relative to the expected returns of the strategy.
- Meaningful excess return over time from active positioning.
- High liquidity and pricing transparency in the assets used with no meaningful counterparty risk.
The listed investment capabilities and vehicles are not available in all jurisdictions in Asia Pacific. Additionally, not all investors are eligible in each investment vehicle. For more information, please contact our local Invesco office.