- Reinforces Federated Hermes’ publicly stated commitment to expand its private markets/alternatives investment capabilities, particularly in the United States
- Expands Federated Hermes’ real estate capabilities into major U.S. markets, complementing its U.K. business
- Boosts FCP’s institutional strength to support its growth ambitions
(PITTSBURGH, Pa. / London, United Kingdom, Oct. 23, 2025): Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, has reached a definitive agreement to acquire 80% of FCP Fund Manager, L.P. (FCP), a privately held U.S. real estate investment manager based in Chevy Chase, Maryland.
FCP specializes in investing across the U.S. Multifamily asset class deploying capital through predominantly equity and several debt vehicles. FCP has invested in, operated and/or financed more than $14.6 billion in gross asset value since inception, including more than 75,000 multifamily apartment units.
Upon completion of the transaction, FCP and its 75-plus member team will continue to manage investment portfolios and other aspects of the business from its current locations. FCP has six U.S. offices, including its headquarters in Chevy Chase, Maryland, and deep local coverage of 19 priority U.S. markets that provide meaningful local knowledge and capability in high-growth areas of the country.
The aggregate purchase price of up to $331 million includes $215.8 million in cash consideration and $23.2 million in Federated Hermes Class B common stock that will be paid and issued at closing, and opportunities to earn contingent consideration of up to $92 million over multiple year periods after closing.
The transaction will reinforce Federated Hermes’ desire to enhance and grow its Private Markets/Alternatives offerings, where it already has a well-established mix of businesses operated primarily outside of the U.S. across Private Equity, Private Credit, Infrastructure and Real Estate, and Market Neutral strategies with assets totaling $19 billion as of Sept. 30, 2025.
The transaction will introduce additional expertise as Federated Hermes seeks to develop product solutions for its clients at a time of increasing demand for the private markets asset class. It also will expand Federated Hermes Real Estate capabilities into the U.S. market and will be complementary to its existing Real Estate operations in the U.K., which were founded in 1983, and had $5.5 billion of assets under management, as of Sept. 30, 2025.
We are delighted to announce the signing of the purchase agreement for this transaction today. Upon closing, this transaction will allow Federated Hermes to enter the U.S. Real Estate Market at a time when the Multifamily sector enjoys strong fundamentals and significant growth opportunities. FCP brings a long-term record of real estate investment performance, which has been driven by a focus on risk-adjusted returns, extensive local and regional market knowledge and deep community relationships.
An additional attraction is the complementary experience and knowledge of the Residential sector, which will be vital as we seek to continue to grow our U.S. and U.K. real estate businesses.
J. Christopher Donahue, President and Chief Executive Officer of Federated Hermes
In Federated Hermes, we have identified a firm with shared values and a strong commitment to building a private markets business. FCP is uniquely positioned to lead the private market expansion with Federated Hermes into Living sector assets in the U.S. This transaction provides an opportunity for FCP to strengthen its institutional platform, enhance its growth trajectory, and provide expanded resources, further enhancing our position as a leading national real estate firm benefiting our clients and stakeholders.
Esko Korhonen, FCP Founding Managing Partner
Federated Hermes was represented by K&L Gates LLP and was advised by KPMG LLP and Hodes Weill & Associates. FCP was represented by Goodwin Procter LLP and advised by Berkshire Global Advisors.
The transaction was approved by the board of directors of Federated Hermes, Inc. and the executive management of FCP, and it is expected to close in the first half of 2026, subject to certain conditions being satisfied, including, among others, obtaining certain third-party consents and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. This transaction will be the second Private Markets acquisition by Federated Hermes since the beginning of 2025, having acquired Rivington Energy Management Limited, a U.K. based infrastructure developer, in April 2025.
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