- FCP® is a privately held multifamily real estate investment manager with client assets of $3.5 billion (December 31, 2025)
- Extends Federated Hermes’ real estate footprint into major US markets, complementing its long-established UK platform
- Strengthens Federated Hermes’ commitment to expanding its private markets/alternatives capabilities, particularly in the United States
- Expands FCP’s institutional platform to support its continued growth
Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced the completion of its previously announced acquisition of an 80% majority interest in FCP Fund Manager, L.P. (FCP®), a privately held US real estate investment manager based in Chevy Chase, Maryland. In connection with the closing, FCP Fund Manager, L.P. converted to a Delaware limited liability company named Federated Hermes FCP Manager, LLC.
As previously stated, the aggregate purchase price of up to $331 million includes $215.8 million in cash, $23.2 million in Federated Hermes Class B common stock, and potential contingent consideration of up to $92 million over multiple periods.
Founded as a specialist in the US multifamily sector, FCP® invests across the US multifamily asset class through predominantly equity and several debt vehicles. Since inception, the firm has invested in, operated, and/or financed more than $14.8 billion in gross asset value, including more than 75,000 multifamily units, and today manages portfolios from six US offices with deep local coverage across 19 priority markets. FCP’s® 75-plus-member team will continue operating from its existing locations.
This completed transaction aligns with Federated Hermes’ strategy to expand its private markets and alternatives capabilities globally, building on its existing $19.1 billion Alternatives platform across Private Equity, Private Credit, Infrastructure, Real Estate, and Market Neutral strategies (data as of December 31, 2025). The acquisition also complements Federated Hermes’ longstanding UK real estate operations, which had $5.3 billion in assets under management as of December 31, 2025.
“We are pleased to complete this strategically important acquisition, which accelerates our entry into the US real estate market at a time when the multifamily sector is characterized by strong fundamentals and durable demand. FCP’s long-standing track record of delivering attractive risk-adjusted returns, together with its deep local market knowledge, provides an exceptional platform for long term growth.
This alliance enables us to expand our private markets offering for clients and reinforces our
commitment to building a diversified, high-quality alternatives business aligned with the long-term structural opportunities we continue to see in real estate.
J. Christopher Donahue, President and Chief Executive Officer, Federated Hermes
Today marks an exciting new chapter for FCP. Joining Federated Hermes strengthens our institutional foundation and provides the resources to support our next phase of growth while enabling us to expand our leadership position in US living-sector assets.
Federated Hermes shares our values and long-term investment philosophy, and we are confident this alliance will benefit our clients, stakeholders, and the communities where we invest.
Esko Korhonen, Founding Managing Partner, FCP®
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Disclaimer
This press release contains certain forward-looking statements within the meaning of Section 21E
of the Exchange Act and Section 27A of the Securities Act. Forward-looking statements can include
statements that do not relate strictly to historical or current facts and are typically identified by
words or phrases such as “trend,” “forecast,” “project,” “predict,” “potential,” “approximate,”
“opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,”
“projection,” “plan,” “assume,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and
similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “can,”
“may” and similar expressions. Without limiting the generality of the foregoing, forward-looking
statements contained in this press release specifically include statements regarding Federated
Hermes’ plans, expectations, goals and projections relating to the acquisition of FCP®, including
statements relating to the expected expansion of Federated Hermes’ private market offerings and
FCP’s leadership position. The forward-looking statements included in this press release involve
risks and uncertainties that could cause actual results to differ materially from those projected.
Accordingly, investors should not place undue reliance on forward-looking statements as a
prediction of actual results. Federated Hermes has based these forward-looking statements on
current expectations and assumptions about future events, taking into account information currently known by Federated Hermes. While Federated Hermes considers these expectations and
assumptions to be reasonable, any forward-looking statement, and Federated Hermes’ level of
business activity and financial results, are inherently subject to significant business, market,
economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to
predict and beyond Federated Hermes’ control. Other risks and uncertainties include the risk
factors discussed in the company’s annual and quarterly reports as filed with the Securities and
Exchange Commission. As a result, no assurance can be given as to future results, levels of
activity, performance or achievements. Any forward-looking statement speaks only as of the date
on which such statement is made, and neither Federated Hermes nor any other person assumes
responsibility for the accuracy and completeness, or updating, of such statements in the future.
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