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CONSOLIDATED INVESTMENT PRODUCTS
 12 Months Ended
Dec. 31, 2023
Consolidated Investment Products [Abstract]  
CONSOLIDATED INVESTMENT PRODUCTS CONSOLIDATED INVESTMENT PRODUCTS
The company's risk with respect to each investment in CIP is limited to its equity ownership and any uncollected management and performance fees. The company has no right to the benefits from, nor does it bear the risks associated with, these investments, beyond the company's direct investments in, and management and performance fees generated from, the investment products. If the company were to liquidate, these investments would not be available to the general creditors of the company, and as a result, the company does not consider investments held by CIP to be company assets. Additionally, the collateral assets of consolidated CLOs are held solely to satisfy the obligations of the CLOs, and the investors in the consolidated CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. CIP are taxed at the investor level and not at the product level; therefore, there is no tax provision reflected in the net impact of CIP. The majority of CIP are VIEs. The following table presents the balances related to CIP that are included on the Consolidated Balance Sheets as well as Invesco's net investment in and net receivables from the CIP for each period presented.

As of
(in millions)December 31, 2023December 31, 2022
Cash and cash equivalents of CIP$462.4 $199.4 
Accounts receivable and other assets of CIP250.1 203.7 
Investments of CIP8,765.9 8,531.4 
Less: Debt of CIP(7,121.8)(6,590.4)
Less: Other liabilities of CIP(492.1)(329.6)
Less: Retained earnings0.1 0.1 
Less: Equity attributable to redeemable noncontrolling interests(745.7)(998.7)
Less: Equity attributable to nonredeemable noncontrolling interests(572.7)(629.3)
Invesco's net investment in and net receivables from CIP$546.2 $386.6 

The following table reflects the impact of consolidation of investment products into the Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021.

Years ended December 31,
(in millions)202320222021
Operating income/(loss)$(84.8)$(65.7)$(67.7)
Other income/(expense)13.5 70.5 407.3 
Net (income)/loss attributable to noncontrolling interests in consolidated entities71.3 (4.8)(339.6)
Net income/(loss) attributable to Invesco Ltd.
$— $— $— 

The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of December 31, 2023 and December 31, 2022:
As of December 31, 2023
(in millions)Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)
Investments Measured at NAV as a practical expedient(2)
Assets:
Bank loans(1)
$6,837.2 $— $6,140.1 $697.1 $— 
Bonds669.8 13.3 656.2 0.3 — 
Equity securities231.9 85.2 18.3 128.4 — 
Equity and fixed income mutual funds137.9 8.0 129.9 — — 
Investments in other private equity funds425.5 — — — 425.5 
Real estate investments463.6 — — — 463.6 
Total assets at fair value$8,765.9 $106.5 $6,944.5 $825.8 $889.1 
As of December 31, 2022
(in millions)Fair Value MeasurementsQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs
(Level 3)
Investments Measured at NAV as a Practical expedient(2)
Assets:
Bank loans(1)
$6,315.1 $— $6,069.8 $245.3 $— 
Bonds697.5 8.8 688.2 0.5 — 
Equity securities274.9 129.9 29.8 115.2 — 
Equity and fixed income mutual funds230.7 38.8 191.9 — — 
Investments in other private equity funds461.2 — — 7.6 453.6 
Real estate investments552.0 — — — 552.0 
Total assets at fair value$8,531.4 $177.5 $6,979.7 $368.6 $1,005.6 
_________

(1) Bank loan investments, which comprise the majority of consolidated CLOs portfolio collateral, are senior secured corporate loans from a variety of industries. Bank loan investments mature at various dates between 2024 and 2032, pay interest at the applicable reference rate plus a spread of up to 13.38%, and typically range in S&P credit rating categories from BBB down to unrated. Notes issued by consolidated CLOs mature at various dates between 2028 and 2034 and have a weighted average maturity of eight years. The notes are issued in various tranches with different risk profiles. The interest rates are generally variable rates based on the applicable reference rate plus a pre-defined spread, which varies from 0.40% for the more senior tranches to 8.68% for the more subordinated tranches. The investors in this debt are not affiliated with the company and have no recourse to the general credit of the company for this debt. The company elected the fair value option for collateral assets held and notes issued by its consolidated CLOs to eliminate the measurement and recognition inconsistency that would otherwise arise from measuring assets and liabilities and recognizing the related gains and losses on different accounting bases. By electing the fair value option, the notes issued by the CLOs are measured based on the fair value of the assets of the CLOs. At December 31, 2023, the unpaid principal balance exceeds the fair value of the senior secured bank loans and bonds by approximately $340.9 million (December 31, 2022: the unpaid principal balance exceeded the fair value of the senior secured bank loans and bonds by approximately $544.1 million). Approximately 0.07% of the collateral assets are in default as of December 31, 2023 (December 31, 2022: approximately 0.49% of the collateral assets were in default).
(2) The table below summarizes as of December 31, 2023 and December 31, 2022, the nature of investments that are valued using the NAV as a practical expedient. Private equity funds are not subject to redemption; however, for certain funds, investors may sell or transfer their interest. Real estate funds are generally subject to a redemption notice period that requires at least 45 days, and the frequency of redemptions is either quarterly or best efforts.
December 31, 2023December 31, 2022
(in millions, except term data)Fair ValueTotal Unfunded CommitmentsWeighted Average Remaining Term Fair ValueTotal Unfunded CommitmentsWeighted Average Remaining Term
Private equity funds $425.5$56.55.9 years$453.6$74.76.4 years
Real estate investments $463.6$53.8N/A$552.0$53.8N/A
The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs:
Years ended December 31,
20232022
(in millions)Level 3 AssetsLevel 3 Assets
Beginning Balance as of January 1$368.6 $239.5 
CIP Purchases566.6 31.2 
CIP Sales(54.9)(12.2)
Deconsolidation of CIP(0.6)3.5 
Gains and losses included in the Consolidated Statements of Income7.9 9.8 
Transfers from Level 3 into Levels 1 or 2(377.9)(355.9)
Transfers into Level 3 from Levels 1 or 2310.2 452.0 
Foreign exchange5.9 0.7 
Ending Balance as of December 31$825.8 $368.6 

There is one CIP that elected the fair value option for its borrowings. At December 31, 2023, these borrowings totaled $353.7 million and are classified as level 3 in the valuation hierarchy.

Non-consolidated VIEs

At December 31, 2023, the company's carrying value and risk of loss with respect to VIEs in which the company is not the primary beneficiary included our investment carrying value of $122.9 million (December 31, 2022: $111.5 million) and unfunded capital commitments of $142.5 million (December 31, 2022: $100.5 million).