INCREF Closes Second CRE CLO at $1.24B, Expands Syndicate to Seven Banks
Invesco Commercial Real Estate Finance Trust has closed its second commercial real estate collateralized loan obligation, a $1.24 billion transaction that arrives just 13 months after the fund’s inaugural CLO and reflects its rapid growth as a private real estate credit platform alongside the broader resurgence in commercial real estate CLO issuance.
The CLO, designated INCREF 2026-FL2, closed last week and issued nine classes of notes secured by a floating-rate portfolio of commercial real estate loans – primarily mortgage loans, combined loans, and senior participations. The senior Class A notes, rated Aaa(sf) by Moody’s and AAAsf by Fitch, carry a spread of Term Secured Overnight Financing Rate plus 145 basis points and represent $743 million, or 60% of the aggregate note amount. The deal includes a 30-month reinvestment period and matures in December 2043. INCREF retained 100% of the subordinate Class F, Class G, and Income notes, keeping the most junior risk on its own balance sheet.
Seven placement agents participated in the transaction: Citigroup Global Markets, Morgan Stanley, Capital One Securities, Wells Fargo Securities, Barclays Capital, Nomura Securities International, and BMO Capital Markets. The expanded syndicate marks a step up from the inaugural INCREF 2025-FL1 transaction, which was structured by Morgan Stanley with bookrunning support from Barclays, Citigroup, and Wells Fargo. Adding Capital One, Nomura, and BMO to a successor deal expands INCREF’s institutional distribution footprint.
The fund’s trajectory underscores the pace at which the vehicle has scaled since launching in 2023 as a private Regulation D offering. By August 2025, its commercial real estate loan portfolio had reached $3.7 billion in fair value, growing to $4.8 billion in outstanding principal by January 2026. A fund that originated its first loan in May 2023 and crossed $1 billion in committed capital by mid-2024 is now executing back-to-back institutional CLOs in consecutive years – a capital markets cadence more typical of seasoned mortgage REIT platforms than a three-year-old vehicle.
The second CLO also marks the first major transaction under new leadership. Charlie Rose, global head of real estate credit for Invesco Real Estate, was named chief executive officer of INCREF in October 2025. Rose previously served as president and lead portfolio manager. At the inaugural CLO’s close, he called it the largest diversified commercial real estate CLO issued in the United States in three years.
INCREF’s transaction reflects a market that has expanded sharply. Commercial real estate CLO issuance reached $11.2 billion through March 2026, up 34% from the same period in 2025, with full-year volume potentially approaching the $45 billion record set in 2021, according to data and analytics firm Trepp. Multifamily dominates collateral at nearly 70% of the market – consistent with INCREF’s portfolio, which has concentrated heavily in multifamily and industrial loans since inception.
INCREF, which launched explicitly to capture share as regional banks retreated from commercial real estate lending, is executing the strategy articulated at its founding. The perpetual-life nontraded real estate investment trust is managed by Invesco Advisers Inc., a subsidiary of Invesco Ltd. and the registered investment adviser for Invesco Real Estate.
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