Federated Hermes, Inc. has agreed to acquire a majority interest in FCP Fund Manager, L.P., a privately held real estate investment manager with client assets of $3.8 billion as of June 30, 2025. The aggregate purchase price of up to $331 million includes $215.8 million in cash consideration and $23.2 million in Federated Hermes class B common stock that will be paid and issued at closing, with opportunities to earn contingent consideration of up to $92 million over multiple year periods after closing.
FCP has invested in, operated and/or financed more than $14.6 billion in gross asset value since inception, including more than 75,000 multifamily apartment units. Upon completion of the transaction, FCP and its 75-plus member team will continue to manage investment portfolios and other aspects of the business from its current locations. FCP has six U.S. offices, including its headquarters in Chevy Chase, Maryland, and deep local coverage of 19 priority U.S. markets.
As of September 30, 2025, Federated Hermes' private markets/alternatives offerings, across private equity, private credit, infrastructure, real estate, and market neutral strategies, had assets totaling $19 billion. The acquisition is expected to reinforce Federated Hermes' desire to enhance and grow its private markets/alternatives offerings and expand its real estate capabilities into the U.S. market, complementing its existing real estate operations in the U.K., which had $5.5 billion of assets under management as of September 30, 2025.
This transaction will be the second private markets acquisition by Federated Hermes since the beginning of 2025, having acquired Rivington Energy Management Limited, a U.K. based infrastructure developer, in April 2025.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $845.7 billion in assets under management as of June 30, 2025. Today the company's shares have moved -1.59% to a price of $50.21. If you want to know more, read the company's complete 8-K report here.
