Federated Hermes to Take 80% Stake in Multifamily Real Estate Manager

Asset manager Federated Hermes Inc. announced Thursday an agreement to take an 80% stake in FCP Fund Manager L.P., a Maryland-based real estate investment manager with $3.8 billion in assets under management.

Federated Hermes will pay up to $331 million for the share of FCP, 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, pending regulatory approval.

The acquisition of the multi-family housing specialist will help expand Federated Hermes’ real estate platform in the U.S. The firm’s U.K. real estate operations had $5.5 billion in assets as of September 30. Federated Hermes also stated that it plans to grow its alternatives and private markets offerings in the U.S. The firm managed $19 billion in alternative investments at the end of the year’s third quarter, including private equity, private credit, real estate and market-neutral strategies, primarily in non-U.S. markets.

According to a statement from Federated Hermes, the transaction will introduce additional expertise as the firm seeks to develop new products amidst increased demand for alternative investments.

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“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, in a statement. “FCP brings a long-term record of real estate investment performance, which has been driven by a focus on risk-adjusted returns, extensive local and regional market knowledge and deep community relationships.”

Federated Hermes managed $845.7 billion in assets globally, as of June 30. In April, the firm acquired U.K.-based infrastructure manager Rivington Energy Management Ltd.