(Bloomberg) –Invesco Ltd. is taking another step to expand its presence in private markets, teaming up with LGT Capital Partners on portfolios of alternative assets for US retail and retirement investors.
The plan will cover private equity, credit and infrastructure assets as well investments in the market for secondary stakes, the firms said Monday in a statement. It’s at least the second partnership Invesco has struck since late April, when the Atlanta-based firm that manages $2.1 trillion of client assets joined with Barings on private credit funds.
“Private markets exposure can provide differentiated sources of income and growth,” Invesco Chief Executive Officer Andrew Schlossberg said in the statement.
Read More: Invesco, Barings to Offer Private Credit to Everyday Clients
Traditional managers of stocks and bonds have moved aggressively into alternative markets during the past year, buying boutique firms or striking joint ventures to sell private assets to everyday investors.
Blackstone Inc. is teaming up with Vanguard Group and Wellington Management Co., Apollo Global Management Inc. partnered with State Street Corp., and Capital Group is working with KKR & Co. Meanwhile, BlackRock Inc. spent about $25 billion to acquire Global Infrastructure Partners and HPS Investment Partners.
Invesco, best known for its QQQ equity funds tracking Nasdaq stocks, has more than $190 billion of alternative assets largely in real estate and private debt. It’s also a major manager of stable value funds common in retirement accounts, a type of product that could wind up allocating to private credit. LGT, with about $120 billion of assets, is owned by the Princely Family of Liechtenstein.
“The alliance marks a significant step in strengthening our presence in the US market, expanding our wealth management capabilities, and exploring opportunities in the retirement space,” Roberto Paganoni, LGT’s CEO, said in the statement.
