Federated Hermes Expands into U.S. Real Estate with Majority Acquisition of FCP
Federated Hermes, Inc. has agreed 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, in a transaction valued at up to $331 million. The purchase includes $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock payable at closing, plus up to $92 million in contingent consideration over multiple post-closing periods.
Upon completion—expected in the first half of 2026—FCP’s 75-plus-member team will continue managing its investment portfolios and operations from existing offices. FCP specializes in U.S. multifamily investments, deploying capital primarily through equity and selective debt vehicles. Since inception, the firm has invested, operated, or financed over $14.6 billion in gross asset value, encompassing more than 75,000 apartment units nationwide.
The acquisition marks a significant expansion of Federated Hermes’ real estate footprint into the U.S. market, complementing its established U.K.-based real estate platform, which oversees $5.5 billion in assets and has operated since 1983. It also strengthens the firm’s $19 billion private markets portfolio, spanning private equity, private credit, infrastructure, and real estate.
“Upon closing, this transaction will allow Federated Hermes to enter the U.S. real estate market at a time when the multifamily sector enjoys strong fundamentals and significant growth opportunities,” said J. Christopher Donahue, president and CEO of Federated Hermes.
“FCP is uniquely positioned to lead the private market expansion with Federated Hermes into Living sector assets in the U.S.,” added Esko Korhonen, FCP founding managing partner.
The deal follows Federated Hermes’ April 2025 acquisition of Rivington Energy Management Limited, a U.K.-based infrastructure developer, underscoring the company’s continued expansion in private markets.
Advisors: 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.