Federated Hermes, Inc., a global leader in active investing, has reached a definitive agreement to acquire an 80% stake in FCP Fund Manager, L.P. (FCP), a privately held U.S. real estate investment manager based in Chevy Chase, Maryland. The transaction marks a major step in Federated Hermes’ expansion into the U.S. real estate market, reinforcing its growing focus on private markets and alternative investments.
FCP specializes in investments across the U.S. multifamily asset class, deploying capital through both equity and debt vehicles. Since its inception, the firm has invested in, operated, or financed more than $14.6 billion in gross asset value, including over 75,000 multifamily apartment units.
Following the completion of the transaction, FCP and its 75-member team will continue managing portfolios and business operations from its existing offices, including its headquarters in Chevy Chase and regional locations covering 19 key U.S. markets.
The aggregate purchase price of up to $331 million comprises $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock at closing, with up to $92 million in contingent consideration available over multiple years.
The acquisition strengthens Federated Hermes’ Private Markets and Alternatives platform, which currently manages $19 billion in assets across private equity, credit, infrastructure, and real estate. The move also expands the firm’s real estate capabilities into the U.S. market, complementing its established operations in the U.K., which manage $5.5 billion in assets as of September 30, 2025.
Federated Hermes President and CEO J. Christopher Donahue said the acquisition allows the company to enter the U.S. real estate sector at a time when the multifamily market is enjoying strong fundamentals and growth opportunities. He added that FCP’s long-term record of performance, built on risk-adjusted returns, deep market knowledge, and community relationships, aligns well with Federated Hermes’ strategic goals. Donahue also noted that FCP’s expertise in the residential sector will be vital as the firm continues to expand its real estate footprint in both the U.S. and the U.K.
FCP Founding Managing Partner Esko Korhonen emphasized that the partnership brings together two firms with shared values and a strong commitment to private markets. He said the transaction positions FCP to lead Federated Hermes’ expansion into living-sector assets in the U.S., strengthening its institutional platform, accelerating growth, and providing enhanced resources to benefit clients and stakeholders alike.
Federated Hermes was represented by K&L Gates LLP and advised by KPMG LLP and Hodes Weill & Associates, while FCP was represented by Goodwin Procter LLP and advised by Berkshire Global Advisors.
The transaction, approved by both Federated Hermes’ board of directors and FCP’s executive management, is expected to close in the first half of 2026, pending regulatory approvals and other customary conditions. This marks Federated Hermes’ second private markets acquisition in 2025, following its purchase of U.K.-based infrastructure developer Rivington Energy Management Limited in April.
Source: PR Newswire
