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ederated Hermes (NYSE: FHI) has agreed to purchase 80 % of FCP Fund Manager, L.P. (FCP), a privately held U.S. multifamily real‑estate manager headquartered in Chevy Chase, Maryland. FCP has deployed more than $14.6 billion in gross asset value, covering over 75,000 apartment units, primarily through equity and debt vehicles. The deal, valued at up to $331 million—$215.8 million in cash, $23.2 million in Hermes Class B stock at closing, and up to $92 million in contingent consideration—will be completed in the first half of 2026 pending regulatory approvals and third‑party consents.
Post‑acquisition, FCP’s 75‑member team will continue to manage portfolios from its six U.S. offices, with deep coverage of 19 priority markets. The transaction expands Federated Hermes’ private‑markets platform, which already includes $19 billion in alternative assets (private equity, credit, infrastructure, real‑estate, and market‑neutral strategies) as of September 30, 2025. It also adds U.S. real‑estate expertise that complements the firm’s existing U.K. operations, which manage $5.5 billion in assets.
CEO J. Christopher Donahue said the deal positions Hermes to enter the U.S. multifamily market at a time of strong fundamentals and growth potential, leveraging FCP’s track record of risk‑adjusted returns and local market knowledge. FCP’s founding managing partner, Esko Korhonen, noted that the partnership aligns shared values and will strengthen FCP’s institutional platform and growth trajectory.
The transaction was approved by Federated Hermes’ board and FCP’s executive management. Legal counsel for Hermes was K&L Gates, KPMG, and Hodes Weill; FCP was advised by Goodwin Procter and Berkshire Global Advisors. Federated Hermes has already completed a second private‑markets acquisition in 2025, acquiring Rivington Energy Management Limited, a U.K. infrastructure developer.
A conference call to discuss the transaction will be held on October 24, 2025, at 9 a.m. Eastern. Participants may dial 888‑506‑0062 (U.S.) or 973‑528‑0011 (outside the U.S.) before the call begins. A replay will be available from 12:30 p.m. Eastern on October 24 until October 31, 2025, by calling 877‑481‑4010 (U.S.) or 919‑882‑2331 (outside the U.S.) and entering access code 51862. Additional analyst presentation materials are posted on FederatedHermes.com/us.
Federated Hermes, Inc. (NYSE: FHI) manages $845.7 billion in assets as of June 30, 2025, offering active investment solutions across equity, fixed income, alternatives, multi‑asset, and liquidity strategies to more than 10,000 institutions worldwide. The firm is headquartered in Pittsburgh and employs over 2,000 people in offices across London, New York, Boston, and other global locations.
FCP® is a privately held real‑estate investment company founded in 1999, investing in commercial and residential assets through equity and structured debt. The firm manages commingled and separate accounts targeting major U.S. real‑estate markets. Further information is available at fcpdc.com.
