Federated Hermes, Inc. (NYSE: FHI) announced on October 23, 2025 that it has reached a definitive agreement to acquire an 80% controlling interest in FCP Fund Manager, L.P., a privately held U.S. real‑estate investment manager headquartered in Chevy Chase, Maryland. The aggregate purchase price is up to $331 million, comprising $215.8 million in cash, $23.2 million in Federated Hermes Class B common stock, and the potential for up to $92 million in contingent consideration over multiple years after closing.
FCP has invested in, operated, and financed more than $14.6 billion in gross asset value since its inception, including over 75,000 multifamily apartment units. The firm’s portfolio is concentrated in the U.S. multifamily asset class, deploying capital through equity and several debt vehicles, and it maintains six U.S. offices with deep local market knowledge in 19 priority markets. At the time of the agreement, FCP’s client assets totaled $3.8 billion as of June 30, 2025.
The acquisition is intended to strengthen Federated Hermes’ private‑markets and alternatives business, adding U.S. real‑estate expertise to its existing U.S. and U.K. real‑estate operations. By integrating FCP’s multifamily platform, Federated Hermes aims to broaden its product solutions for institutional clients, enhance its U.S. real‑estate footprint, and leverage FCP’s local market knowledge to support future fundraising and growth in the high‑growth multifamily sector. The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals and other closing conditions.
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