Capabilities Private credit

Your trusted partner with credit expertise built over 25 years.
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Why partner with us Yield isn’t found. It’s built.

Invesco Private Credit partners with clients to identify attractive opportunities across the credit spectrum. Anchored by a proven, cycle-tested investment process, our 30-plus years of credit expertise support flexible capital solutions—from CLOs and syndicated loans to direct lending and distressed credit. Through disciplined underwriting and customised mandates, we dynamically deploy capital to deliver resilient, differentiated credit exposures.

Diverse and responsive

Clients can benefit from our full-spectrum credit platform providing flexible tools to pursue specific goals across the risk return continuum and seize market opportunities.

Unified platform

We leverage deep relationships and private-side insights to deliver disciplined underwriting, differentiated deal flow, and favorable terms.

Long-term credit experience

We bring together disciplined investment capabilities and seasoned leadership to serve as a trusted partner across the private credit landscape.

$45B+ In assets managed

Our Private Credit team globally manages more than $45 billion in client assets, as of 30 September 2025.

30+ yrs Experience

We’ve leveraged a consistent, conservative fundamental credit process for more than 30 years.

150+ Professionals

More than 150 dedicated investment professionals across the globe.

Harness the potential of AAA-rated collateralised loan obligations (CLOs)

  • Investors could enhance risk/return profile by accessing source of returns less correlated with other public market assets.
  • AAA CLOs exhibit low correlation to other traditional asset classes.
  • Adding AAA CLOs in a portfolio could potentially enhance portfolio risk-adjusted returns. 

AAA CLOs show low correlation with other fixed income and equity markets, enhancing portfolio diversification - US/Euro AAA CLO 5 Year Correlations – June 2025

Source: Correlation based on monthly total returns over the trailing 5 years ended 30 June 25. US CLO AAA Notes represented by J.P. Morgan Euro CLOIE AAA Index, AAA US Corporates by Bloomberg U.S. Aaa Corporate Index, AAA US ABS by Bloomberg US Agg. ABS AAA Index, Bloomberg US Aggregate Bond Index by US Agg, 1-3 Yr Treasuries by U.S. Treasury: 1-3 Year Index and 1-3 year U.S. Corp by component of the US Agg index. Euro CLO AAA Notes represented by J.P. Morgan Euro CLOIE Index. Euro Agg 1-3yr by Euro-Aggregate: 1-3 Year Index. Euro Securitized AAA by Bloomberg Euro-Aggregate: Securitized – AAA Index. Euro Agg by Bloomberg Euro-Aggregate Index. Euro Corp IG by Bloomberg Euro-Aggregate: Corporate Index. Euro Corp AAA by Bloomberg Euro-Aggregate Corporate Aaa Index and Euro Agg Treasury 1-5 Yr by Euro-Aggregate: Treasury Index 1-5 Year. All Euro indices are hedged to Euro. An investment cannot be made directly in an index. Past performance does not predict future returns. All data as of 30 June 2025.

AAA-rated CLOs could favorable yields across fixed income providing a compelling investment proposition for private markets exposure within overall asset allocation. AAA CLOs deliver higher yields with minimal duration risk, compared to traditional corporate bonds.

AAA CLOs delivered higher yields with minimal duration risk, compared to traditional corporate bonds - Yield vs duration – June 2025

Source: Yield represented by Yield to Worst (YTW). US CLO AAA Notes represented by J.P. Morgan Euro CLOIE AAA Index, AAA US Corporates by Bloomberg U.S. Aaa Corporate Index, AAA US ABS by Bloomberg US Agg. ABS AAA Index, Bloomberg US Aggregate Bond Index by US Agg, 1-3 Yr Treasuries by U.S. Treasury: 1-3 Year Index and 1-3 year U.S. Corp by component of the US Agg index. Euro CLO AAA Notes represented by J.P. Morgan Euro CLOIE Index. Euro Agg 1-3yr by Euro-Aggregate: 1-3 Year Index. Euro Securitized AAA by Bloomberg Euro-Aggregate: Securitized – AAA Index. Euro Agg by Bloomberg Euro-Aggregate Index. Euro Corp IG by Bloomberg Euro-Aggregate: Corporate Index. Euro Corp AAA by Bloomberg Euro-Aggregate Corporate Aaa Index and Euro Agg Treasury 1-5 Yr by Euro-Aggregate: Treasury Index 1-5 Year. All Euro indices are hedged to Euro. An investment cannot be made directly in an index. Past performance does not predict future returns. All data as of 30 June 2025.

  • Floating-rate asset class with very low duration risk.
  • Less sensitivity to interest rates could help reduce volatility during uncertain interest rate environments.
  • Provides a potential hedge against any inflation or interest rate increases.

Inside Private Credit: Navigating Headlines, CLOs, and Institutional Demand

Despite the concerns we see from investors on private credit, we continue to see demand among institutional investors particularly on the higher quality part of the private credit market. In this episode, Chris and Derek discuss why has private credit been in the headlines for wrong reasons, and what is driving the conversation of AAA CLOs. 

Enhancing insurer portfolio with collateralized loan obligation debt

Insurers are increasingly using private credit to boost portfolio efficiency amid regulatory and capital pressures. Innovations like semi-liquid vehicles are easing access, narrowing the gap between yield and liquidity, and enabling a more integrated approach to fixed income.
Within this shift, CLOs could offer the potential to align with certain needs of insurance portfolios, primarily around diversification and yield enhancement, opening up possibilities of tailored asset strategies and risk/return profiles.

Insurance portfolio diversification

CLOs exhibit low correlation to traditional public‑market fixed‑income assets, providing insurers with a differentiated source of credit exposure. This can help enhance portfolio diversification, reduce dependence on publicly traded corporate bonds, and support more resilient insurance asset‑allocation frameworks.

Potential for structural advantages

  • Highest-rated and most senior tranche of the CLO capital structure
  • Built-in potential structural buffers include cashflow waterfall feature and various coverage tests
  • Historically low volatility and low risk with no AAA- or AA-rated CLO in EUR or USD having every experienced a default or impairment, even during times of market stress

Portfolio and capital efficiency

Under certain regulatory regimes, CLOs may provide favorable capital‑charge treatment relative to other forms of corporate credit with similar ratings. As a result, they can serve as a capital‑efficient tool for insurers seeking to optimise their risk‑adjusted return on capital and improve overall balance‑sheet efficiency.

Diverse and responsive private credit solutions for all seasons

Diverse and unconstrained private credit solutions for all seasons giving investors flexible tools to pursue specific goals across the risk/return continuum. Our ability to allocate capital across different private credit strategies uniquely positions us to quickly capitalize on market inefficiencies, dislocations, and shifting liquidity conditions. 

Why Invesco for AAA-rated CLOs?

Increase returns potential with AAA CLOs: For investors seeking innovative ways to diversify their income portfolio, the highest quality AAA-rated tranche of CLOs could offer a compelling investment proposition. AAA CLOs could provide some of the favorable yields among high quality investment grade credit, feature low interest rate sensitivity due to their floating rate, and exhibit low correlation to other traditional asset classes, potentially enhancing portfolio risk-adjusted returns. Learn more about the investment case of adding AAA CLOs in a portfolio.

  • Diversification: Investors could enhance risk/return profile by accessing source of returns uncorrelated with other public market assets as AAA-rated CLOs exhibit low correlation to other traditional asset classes, and potentially enhance further return potential with CLOs.
  • Add to overall returns with yield potential: AAA-rated CLOs could offer one of the favorable yields across fixed income providing compelling investment proposition for private markets exposure within overall asset allocation and addition to income portfolios.
  • Managing interest rate risk: Low interest rate sensitivity due to the floating rate allowing investors to mitigate the impact of any monetary policy changes and enhance the risk/return profile of income portfolio. 

Why Invesco for broadly syndicated loans?

We use our credit expertise and market-leading position to provide investors unique access to attractive investment opportunities in senior secured loans. Our presence across all distribution channels means we are always active in the market and able to get an early look at attractive primary and secondary opportunities. Finally, our private-side orientation gives our analytical team an information advantage and edge in credit evaluation and execution relative to competitors.

What benefits can senior loans bring?

Senior loans could offer a combination of appealing characteristics across a range of market environments:

  • High income: Senior loans offer the potential for consistent monthly income and strong risk-adjusted returns. The goal is to provide high, stable income throughout all market environments.
  • Floating rate feature: Loans have virtually no interest rate risk and instead benefit from rising rates through coupons resetting higher. 
  • Compelling relative value: Senior loans could offer one of the favorable yields across fixed income, as well as having almost no duration risk and being senior secured in the capital structure.
  • Diversification potential: Senior loans have a low correlation with traditional assets like equities and bonds. Historically, adding loans to an investment grade portfolio has reduced portfolio volatility and increased returns. Past performance is not the guide to future returns.
  • Senior secured status: Loans provide downside risk mitigation by being senior secured and sitting at the top of the capital structure. They have the first priority on company collateral and repayment in the event of default. This has led to higher recovery rates than subordinated debt, such as high-yield bonds. 

Why Invesco for Direct lending?

Our direct lending team has decades of experience in sourcing, underwriting and executing senior secured loans across US and European markets. Our capabilities have made us a trusted partner to leading deal sponsors seeking capital, and investors seeking compelling risk-adjusted returns.

Direct lending in the US and European markets

Direct origination loans are typically accompanied by an illiquidity premium, offering additional return potential for investing in less liquid assets. This premium can range from 100 to 300 basis points, depending on market conditions.

We believe middle market direct lending can offer investors a compelling opportunity to generate significant income, with the potential for lower volatility than traditional fixed income.

In the US, we focus on the core middle market which we define as companies with EBITDAs (Earnings Before Interest, Taxes, Depreciation, and Amortization) between US$20 million and US$75 million. The universe of companies in this segment is highly fragmented and represents a wide range of sectors and industries.

In Europe, our target investments are focused on European upper middle market companies. We believe downside risk can be mitigated by focusing on large stable European borrowers defined as companies with EBITDAs of €50M and above. Given inefficiencies in European financing markets, Invesco sees a structural opportunity to source credit deals through our well-established sponsor relationships.

In both markets, Invesco focuses on first lien senior secured loans.

What are the benefits of middle market direct lending?

Middle market senior secured loans offer structural advantages that have the potential to meaningfully mitigate downside risk.

  • Senior position in the capital structure: Middle market senior secured loans sit atop the capital structure and are secured against the assets of the company.
  • Limited interest rate risk: Middle market loans are floating rate instruments that mitigate interest rate risk experienced by traditional fixed income.
  • Attractive spreads: To compensate investors for the market’s illiquidity and inefficiency, the direct lending asset class generally could provide a yield premium relative to more liquid debt offerings.
  • Stability: Direct loans historically exhibit a lower volatility profile relative to traditional fixed income.

Middle market senior secured loans could offer a compelling combination of structural protections and economic advantages - positioned at the top of the capital structure, and designed to mitigate downside risk while delivering attractive, interest rate-resilient returns.

Why Invesco for distressed credit?

Unlike traditional large-cap distressed strategies that are often dependent on market cycles, recessions or sector-specific shocks, we focus on idiosyncratic or company specific opportunities. We use our proprietary sourcing mechanism, rigorous diligence and an active approach to value creation to develop a differentiated, complementary and diversified portfolio.

The opportunity

Exceptional distressed credit and special situations managers are not just great stewards of investor capital – they are also strong partners for businesses. At our core, we are problem solvers and value-creators. We aim to help companies transition from challenging periods to ones of growth.

Our approach

Across our investments, we target asymmetric return profiles. We seek to generate equity-like returns while assuming credit downside risk. The following themes define our approach:

  • Downside mitigation: We typically enter investments via senior secured debt. This approach allows for risk mitigation.
  • Value creation: We are proactive investors. Prior to investing, we concentrate on identifying the cause of distress and clear catalysts to resolution. We then partner with our portfolio companies and their management teams to effectuate financial and operational restructuring.
  • Inefficient markets: We focus on small-capitalisation companies. The opportunity set in this market is evergreen. Smaller businesses are more prone to idiosyncratic issues, which occur independent of market cycles. Information access to those without a platform, such as ours, is typically opaque, and therefore, these markets are highly inefficient and can present excellent value.
  • Enhanced due diligence: We employ private equity-style diligence in sectors and situations where we have a deep understanding of the business, industry, and path forward to stabilisation and monetisation. The process is augmented with insights and connectivity from our platform’s credit analyst team, which is one of the largest sector-based research teams in the private credit marketplace.
  • Sourcing: Our private credit platform is one of the largest and most active financiers of corporate loans in the world. We use our entirely private-side orientation and extensive institutional connectivity with existing borrowers to maintain a vast radar of opportunities across the market.

Latest insights

Meet our team

Our global Private Credit team is organizationally and economically aligned — including reporting to a single CIO. This structure incentivizes collaboration and improves our ability to source, underwrite, and execute attractive opportunities.

  • Scott Baskind

    Scott Baskind

    Head of Global Private Credit / Chief Investment Officer

  • Ron Kantowitz

    Ron Kantowitz

    Head of Direct Lending, Managing Director

  • Paul Triggiani

    Paul Triggiani

    Managing Director, Head of Distressed Credit and Special Situations

  • Derek Fin

    Derek Fin

    Head of APAC Private Credit Business Strategy & Development

  • Kevin Egan

    Kevin Egan

    Senior Portfolio Manager, Co-Head of Credit Research, Broadly Syndicated Loans

  • Thomas Ewald

    Thomas Ewald

    Co-Head of Credit Research, Senior Portfolio Manager, Broadly Syndicated loans

  • David Lukkes

    David Lukkes

    Managing Director, Senior Portfolio Manager / Co-Head of Credit Research

    CFA
  • Michael Craig

    Michael Craig

    Head of European Senior Loans, Senior Portfolio Manager

    CFA
  • Seth Misshula

    Seth Misshula

    Managing Director, Head of US Trading / Senior Portfolio Manager

    CFA

Learn more about Invesco Private Credit

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Learn more about Invesco Private Credit

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  • Investment involves risks. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Collateralized loan obligations (CLOs) are exposed to credit risk associated with the underlying loans. These loans are typically made to non-investment grade borrowers, which means they are more likely to default. A sudden increase in loan defaults could cause significant losses for investors. Although CLO securities are generally more liquid than the underlying loans, they are still subject to liquidity risk. During times of market stress, it may be difficult to find a buyer for CLO securities, which could make it challenging for investors to sell their holdings or exit their positions. CLOs are typically structured as fixed-income securities with a set interest rate. If interest rates rise, the value of these securities may decline. The underlying loans in CLOs can be prepaid, which means the borrower pays off the loan earlier than expected. This can negatively impact the returns of CLO investors, particularly if they were counting on a certain level of interest income over a longer period. CLOs can be complex investment vehicles, with multiple tranches, different levels of credit risk, and varying payment structures. This complexity can make it difficult for investors to fully understand the risks involved and make informed investment decisions. Highly rated tranches of CLO Debt Securities may be downgraded, and in stressed market environments even highly rated tranches of CLO Debt Securities may experience losses due to defaults in the underlying loan collateral, the disappearance of the subordinated/equity tranches, market anticipation of defaults, as well as negative market sentiment with respect to CLO securities as an asset class.

    Many senior loans are illiquid, meaning that the investors may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the senior loans. The market for illiquid securities is more volatile than the market for liquid securities. The market for senior loans could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior loans, like most other debt obligations, are subject to the risk of default. The market for senior loans remains less developed in Europe than in the U.S.

    Alternative investment products, including private equity, may involve a higher degree of risk, may engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, may not be required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual portfolios, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. There is often no secondary market for private equity interests, and none is expected to develop. There may be restrictions on transfer in such investments.