Federated Hermes to Acquire Majority Stake in FCP Fund Manager for Up to $331M

PITTSBURGH, Pa. (Oct. 23, 2025) — Federated Hermes, Inc. (NYSE: FHI) has reached a definitive agreement to acquire an 80% interest in FCP Fund Manager, L.P. (FCP), a privately held U.S. real estate investment manager based in Chevy Chase, Maryland, for a total consideration of up to $331 million, according to an official announcement.

Federated Hermes Expands U.S. Multifamily Real Estate Capabilities

FCP specializes in investing across the U.S. multifamily asset class, deploying capital through equity and debt vehicles. Since inception, FCP has invested in, operated, or financed more than $14.6 billion in gross asset value, including over 75,000 multifamily apartment units.

The acquisition supports Federated Hermes’ stated goal of expanding its private markets and alternatives investment capabilities, particularly in the United States. As of Sept. 30, 2025, Federated Hermes managed $19 billion in private markets assets across private equity, private credit, infrastructure, real estate, and market neutral strategies.

Transaction Details

The aggregate purchase price of up to $331 million includes $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock to be paid at closing. The agreement also provides for contingent consideration of up to $92 million over multiple years following closing. Upon completion, FCP’s more than 75-member team will continue managing its investment portfolios from its current offices, including its headquarters in Chevy Chase, Maryland, and five other U.S. locations.

Strategic Expansion and Market Presence

Federated Hermes stated that the acquisition will expand its real estate capabilities into major U.S. markets, complementing its existing real estate operations in the United Kingdom, which were founded in 1983 and managed $5.5 billion in assets as of Sept. 30, 2025. FCP’s platform provides local coverage across 19 priority U.S. markets, enhancing Federated Hermes’ presence in high-growth areas.

Outlook

According to the announcement, the transaction is intended to strengthen Federated Hermes’ private markets offerings and introduce additional expertise to meet growing client demand for private market investments. FCP will continue to operate under its existing brand and management structure following the close of the transaction.

Sources

Source: FCP official announcement