Federated Hermes Completes Up to $331M Acquisition of 80% Majority Interest in FCP Multifamily Real Estate Manager

PITTSBURGH, Pa. — Federated Hermes, Inc. (NYSE: FHI) announced April 9, 2026, the completion of its acquisition of an 80% majority interest in FCP, L.P., a privately held multifamily real estate investment manager headquartered in Chevy Chase, Maryland. 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.

In connection with the closing, FCP Fund Manager, L.P. converted to a Delaware limited liability company now named Federated Hermes FCP Manager, LLC.

Deal Structure and Strategic Rationale

The acquisition gives Federated Hermes a direct entry point into the U.S. multifamily real estate sector, complementing its existing $5.3 billion UK real estate platform and its broader $19.1 billion alternatives platform spanning Private Equity, Private Credit, Infrastructure, Real Estate, and Market Neutral strategies, as of December 31, 2025.

FCP, founded in 1999, manages client assets of $3.5 billion as of December 31, 2025, and has invested in, operated, and/or financed more than $14.8 billion in gross asset value since inception, including more than 75,000 multifamily units. The firm operates from six U.S. offices with coverage across 19 priority markets. FCP's 75-plus-member team will continue operating from its existing locations.

Christopher Donahue, President and Chief Executive Officer of Federated Hermes, said: "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."

Donahue added: "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."

FCP's Multifamily Real Estate Platform

FCP invests across the U.S. multifamily asset class through predominantly equity and several debt vehicles, making both equity and structured investments in income-producing and development properties. The firm deploys capital through commingled, discretionary funds and separate accounts targeted at major real estate markets across the United States.

Esko Korhonen, Founding Managing Partner of FCP, said: "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."

Korhonen continued: "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."

Expanding Federated Hermes' U.S. Alternatives Footprint

The acquisition aligns with Federated Hermes' stated strategy to expand its private markets and alternatives capabilities globally. With $902.6 billion in total assets under management as of December 31, 2025, Federated Hermes serves more than 11,000 institutions and intermediaries worldwide, including corporations, government entities, insurance companies, foundations, endowments, banks, and broker/dealers.

Federated Hermes is headquartered in Pittsburgh and maintains offices in London, New York, Boston, and locations worldwide. FCP is based in Chevy Chase, Maryland.