Federated Hermes Acquires 80% Stake in U.S. Real Estate Investment Firm FCP Fund Manager
Federated Hermes, Inc., specialists in active investment management, has reached an agreement to acquire 80% of FCP Fund Manager, L.P., a U.S.-based private real estate investment manager headquartered in Chevy Chase, Maryland.
FCP specializes in investing across the U.S. multifamily residential asset class, deploying capital through predominant equity and various debt vehicles. Since its inception, FCP has invested, operated, and/or financed more than $14.6 billion in gross asset value, including over 75,000 multifamily residential units.
Upon completion of the transaction, FCP and its team of over 75 members will continue managing investment portfolios and other business operations from their current locations. FCP has six offices in the U.S., including its headquarters in Chevy Chase, Maryland, and local coverage in 19 U.S. markets, providing significant local knowledge and capabilities in high-growth areas of the country.
The total purchase price of up to $331 million includes $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock, which will be paid and issued at closing, along with opportunities to receive additional contingent payments of up to $92 million over several years following the closing.
The transaction strengthens Federated Hermes’ goal of enhancing and growing its offerings in Private and Alternative Markets, where it already has a well-established mix of businesses operating primarily outside the U.S. in private equity, private credit, infrastructure, and real estate, as well as market-neutral strategies, with assets totaling $19 billion as of September 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 will also expand Federated Hermes Real Estate’s capabilities in the U.S. market and complement its existing real estate operations in the United Kingdom, established in 1983, with $5.5 billion in assets under management as of September 30, 2025.
J. Christopher Donahue, President and CEO of Federated Hermes, said:
“We are delighted to announce today the signing of the purchase agreement for this transaction. Upon closing, this transaction will allow Federated Hermes to enter the U.S. real estate market at a time when the multifamily residential sector is enjoying strong fundamentals and significant growth opportunities. FCP brings a long-standing track record of real estate investment performance, driven by risk-adjusted returns, deep knowledge of local and regional markets, and strong relationships with the communities in which it operates.
An additional attraction is the complementary experience and knowledge in the residential sector, which are vital to continuing to grow our real estate businesses in both the U.S. and the U.K.”
Esko Korhonen, Founding Managing Partner of FCP, said:
“At Federated Hermes, we have identified a company with shared values and a strong commitment to building a private markets business. FCP is uniquely positioned to lead the expansion of the private market with Federated Hermes in U.S. residential sector assets. This transaction provides an opportunity to strengthen our institutional platform, enhance our growth trajectory, and provide expanded resources, improving our position as a leading national real estate firm.”
Federated Hermes was represented by K&L Gates LLP and 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 is expected to close in the first half of 2026, subject to certain conditions, including obtaining third-party consents and the expiration or termination of the waiting period under the Hart-Scott-Rodino Act of 1976. This transaction will be Federated Hermes’ second Private Markets acquisition since early 2025, following its acquisition of Rivington Energy Management Limited, a U.K.-based infrastructure developer, in April 2025.
