Federated Hermes announced it has completed the acquisition of an 80% majority interest in FCP Fund Manager, L.P., a U.S.-based multifamily real estate investment firm with $3.5 billion in client assets.
The transaction, with an aggregate purchase price of up to $331 million, includes $215.8 million in cash, $23.2 million in Federated Hermes Class B common stock, and up to $92 million in contingent consideration. Following the close, FCP has been converted into a Delaware limited liability company and renamed Federated Hermes FCP Manager, LLC.
The acquisition marks a significant expansion of Federated Hermes’ real estate capabilities in the United States, complementing its established UK platform and strengthening its broader private markets and alternatives strategy. The firm’s alternatives platform currently includes $19.1 billion in assets across private equity, private credit, infrastructure, real estate, and market-neutral strategies.
Founded as a specialist in the U.S. multifamily sector, FCP has invested in or financed more than $14.8 billion in gross asset value, including over 75,000 multifamily units. The firm operates across six U.S. offices and maintains a strong presence in 19 priority markets, supported by a team of more than 75 professionals who will continue operating from existing locations.
The acquisition enables Federated Hermes to deepen its exposure to the U.S. living-sector real estate market, which continues to benefit from strong demand fundamentals, while also enhancing its ability to deliver diversified private market investment solutions to global clients.
At the same time, the transaction provides FCP with additional institutional resources to support its continued growth and expand its investment platform within the multifamily sector.
KEY QUOTES:
“We are pleased to complete this strategically important acquisition, which accelerates our entry into the US real estate market at a time when the multifamily sector is characterized by strong fundamentals and durable demand. FCP’s long standing track record of delivering attractive risk adjusted returns, together with its deep local market knowledge, provides an exceptional platform for long term growth.”
“This alliance enables us to expand our private markets offering for clients and reinforces our commitment to building a diversified, high quality alternatives business aligned with the long term structural opportunities we continue to see in real estate.”
J. Christopher Donahue, President And Chief Executive Officer, Federated Hermes
“Today marks an exciting new chapter for FCP. Joining Federated Hermes strengthens our institutional foundation and provides the resources to support our next phase of growth while enabling us to expand our leadership position in US living sector assets.”
“Federated Hermes shares our values and long term investment philosophy, and we are confident this alliance will benefit our clients, stakeholders, and the communities where we invest.”
Esko Korhonen, Founding Managing Partner, FCP
