Key Takeaways
- • Federated Hermes agreed to acquire an 80% stake in FCP Fund Manager L.P., a Maryland-based multifamily real estate investment manager with $3.8 billion in assets under management, for up to $331 million.
- • The consideration comprises $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock.
- • The transaction is expected to close in the first half of 2026, pending regulatory approval.
- • The deal expands Federated Hermes' U.S. real estate platform and its push into alternatives, a segment in which the firm managed $19 billion at the end of the third quarter, primarily in non-U.S. markets.
- • The agreement follows the firm's April acquisition of U.K.-based infrastructure manager Rivington Energy Management Ltd. Federated Hermes managed $845.7 billion globally as of June 30.
Summary
Federated Hermes Inc. announced an agreement to take an 80% stake in FCP Fund Manager L.P., a Maryland-based real estate investment manager focused on multifamily housing, according to the company's announcement. The firm will pay up to $331 million for the stake, including $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock. The transaction is expected to close in the first half of 2026, subject to regulatory approval.
The acquisition is intended to expand Federated Hermes' real estate platform in the United States. The firm's U.K. real estate operations held $5.5 billion in assets as of September 30. Federated Hermes also said it plans to grow its alternatives and private markets offerings in the U.S., where it currently manages a smaller share of its $19 billion alternatives business, which includes private equity, private credit, real estate and market-neutral strategies. According to the statement, the transaction will add expertise as the firm develops new products amid increased demand for alternative investments.
J. Christopher Donahue, president and CEO of Federated Hermes, said the deal will allow the firm to enter the U.S. real estate market at a time when the multifamily sector "enjoys strong fundamentals and significant growth opportunities." He described FCP as having "a long-term record of real estate investment performance," driven by a focus on risk-adjusted returns and deep community relationships. The deal comes months after the firm's April acquisition of Rivington Energy Management Ltd. Federated Hermes managed $845.7 billion in assets globally as of June 30.
The acquisition is intended to expand Federated Hermes' real estate platform in the United States. The firm's U.K. real estate operations held $5.5 billion in assets as of September 30. Federated Hermes also said it plans to grow its alternatives and private markets offerings in the U.S., where it currently manages a smaller share of its $19 billion alternatives business, which includes private equity, private credit, real estate and market-neutral strategies. According to the statement, the transaction will add expertise as the firm develops new products amid increased demand for alternative investments.
J. Christopher Donahue, president and CEO of Federated Hermes, said the deal will allow the firm to enter the U.S. real estate market at a time when the multifamily sector "enjoys strong fundamentals and significant growth opportunities." He described FCP as having "a long-term record of real estate investment performance," driven by a focus on risk-adjusted returns and deep community relationships. The deal comes months after the firm's April acquisition of Rivington Energy Management Ltd. Federated Hermes managed $845.7 billion in assets globally as of June 30.
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