Pittsburgh-headquartered investment firm Federated Hermes Inc. said April 9 that it has completed the acquisition of an 80-percent majority interest in FCP Fund Manager L.P. (FCP), a privately held U.S. real estate investment manager based in Chevy Chase, Md.
“We are pleased to complete this strategically important acquisition, which accelerates our entry into the U.S. real estate market at a time when the multi-family sector is characterized by strong fundamentals and durable demand,” said Federated Hermes President and CEO J. Christopher Donahue. “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.”
In connection with the closing, FCP converted to a Delaware limited liability company named Federated Hermes FCP Manager LLC.
The 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 potential contingent consideration of up to $92 million over multiple periods, according to Federated Hermes.
Donahue said the completed transaction aligns with Federated Hermes’ strategy to expand its private markets and alternatives capabilities globally, building on its existing $19.1 billion alternatives platform across Private Equity, Private Credit, Infrastructure, Real Estate, and Market Neutral strategies.
“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,” said Donahue.
He added that the acquisition also complements the company’s long-standing UK real estate operations, which had $5.3 billion in assets under management as of Dec. 31, 2025.
FCP, which was founded as a specialist in the multi-family sector, invests across the asset class through predominantly equity and several debt vehicles. Since its inception, the firm has invested in, operated, and/or financed more than $14.8 billion in gross asset value, including more than 75,000 multi-family units, and today manages portfolios from six U.S. offices with deep local coverage across 19 markets.
FCP’s 75-plus-member team will continue operating from its existing locations.
“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 U.S. living-sector assets,” said Esko Korhonen, FCP’s founding managing partner. “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.”