- Federated Hermes will acquire an 80% stake in FCP Fund Manager, a real estate investment firm based in Chevy Chase, MD, for up to $331 million.
- The deal strengthens Federated Hermes’ private markets strategy and marks its entry into the U.S. real estate sector, particularly the multifamily market.
- FCP, which has invested in over $14.6 billion in assets, will continue to operate independently with its current leadership and team across six U.S. offices.
Federated Hermes Moves Into U.S. Real Estate
Pittsburgh-based investment firm Federated Hermes has announced a definitive agreement to acquire a controlling interest in FCP Fund Manager, a private real estate investment company specializing in multifamily housing. The acquisition signals Federated Hermes’ formal entry into the U.S. real estate sector, expanding beyond its international private markets portfolio.
Deal Breakdown
Under the terms of the agreement, Federated Hermes will pay $215.8 million in cash and issue $23.2 million in Class B common stock upon closing. There is also the potential for up to $92 million in additional contingent payments based on future performance milestones.
The total transaction value could reach $331 million, with closing anticipated in the first half of 2026. The deal remains subject to customary closing conditions and regulatory approvals, including Hart-Scott-Rodino antitrust clearance.
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Why FCP?
Founded in 1999, FCP has built a national presence in multifamily real estate, with a portfolio that includes more than 75,000 apartment units and $14.6 billion in gross asset value. The firm operates from six offices nationwide, offering deep market expertise across 19 key metropolitan areas.
Its track record and local market knowledge make FCP an attractive platform for Federated Hermes, which has until now operated primarily in international real estate markets.
A Strategic U.S. Expansion
The acquisition is part of Federated Hermes’ broader strategy to expand its private markets capabilities. As of September 2025, the firm managed $19 billion across private equity, private credit, infrastructure, and real estate strategies, mostly outside the U.S.
This transaction complements the firm’s existing real estate business in the U.K., which has been active since 1983 and currently oversees $5.5 billion in assets. It also follows the company’s acquisition of Rivington Energy Management, a U.K.-based infrastructure developer, earlier in 2025.
Leadership Comments
“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 Federated Hermes CEO J. Christopher Donahue.
FCP’s Founding Managing Partner, Esko Korhonen, added: “We have identified a firm with shared values and a strong commitment to building a private markets business. FCP is uniquely positioned to lead the private market expansion with Federated Hermes into Living sector assets in the U.S.”
What’s Next
The transaction is expected to close in early to mid-2026, pending regulatory approval. Once completed, FCP will continue to manage its investment strategies independently while gaining access to additional resources and institutional reach under the Federated Hermes umbrella.
As investor demand for private real estate strategies grows, this acquisition positions Federated Hermes to become a more competitive player in the U.S. multifamily market.
