Federated Hermes (NYSE: FHI) buys 80% stake in FCP real estate manager
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Federated Hermes, Inc. has completed its acquisition of an 80% interest in FCP Fund Manager, a privately held U.S. multifamily real estate investment manager with client assets of $3.5 billion as of December 31, 2025. The aggregate purchase price is up to $331 million, including $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.
FCP has invested in, operated, and/or financed more than $14.8 billion in gross asset value, including over 75,000 multifamily units across 19 priority U.S. markets. The deal supports Federated Hermes’ strategy to expand its private markets and alternatives platform, which included $19.1 billion in Alternatives and $5.3 billion in UK real estate assets under management as of December 31, 2025, within its broader $902.6 billion in assets under management.
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Insights
Federated Hermes adds a sizable U.S. multifamily real estate platform within its alternatives franchise.
Federated Hermes is acquiring 80% of FCP for up to $331 million, paid via $215.8 million in cash, $23.2 million in Class B stock, and up to $92 million in contingent consideration. This structure ties part of the price to future performance over multiple periods.
FCP contributes $3.5 billion in client assets as of December 31, 2025 and a history of more than $14.8 billion in gross asset value investments, focused on U.S. multifamily real estate. Relative to Federated Hermes’ $902.6 billion in assets under management, the acquisition is strategic but not transformational in scale.
The transaction deepens Federated Hermes’ private markets exposure, complementing its $19.1 billion Alternatives platform and $5.3 billion in UK real estate assets. The contingent component and emphasis on FCP’s growth suggest economic outcomes will depend on how multifamily markets and fundraising evolve, within the risk framework described in company risk factors.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Aggregate purchase price: $331 million (up to)
Cash consideration: $215.8 million
Stock consideration: $23.2 million
+5 more
8 metrics
Aggregate purchase price
$331 million (up to)
Consideration for 80% interest in FCP
Cash consideration
$215.8 million
Portion of FCP purchase price paid in cash
Stock consideration
$23.2 million
Federated Hermes Class B common stock issued in transaction
Contingent consideration
Up to $92 million
Earn-out payable over multiple periods
FCP client assets
$3.5 billion
Client assets as of December 31, 2025
FCP gross asset value invested
$14.8 billion
Cumulative gross asset value since inception
Federated Hermes total AUM
$902.6 billion
Assets under management as of December 31, 2025
Alternatives platform AUM
$19.1 billion
Alternatives assets across strategies as of December 31, 2025
Key Terms
contingent consideration, multifamily real estate, private markets/alternatives, assets under management, +2 more
6 terms
contingent consideration financial
"and potential contingent consideration of up to $92 million over multiple periods"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
multifamily real estate financial
"FCP® is a privately held multifamily real estate investment manager with client assets of $3.5 billion"
private markets/alternatives financial
"expanding its private markets/alternatives capabilities, particularly in the United States"
assets under management financial
"with $902.6 billion in assets under management, as of December 31, 2025"
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.
forward-looking statements regulatory
"This press release contains certain forward-looking statements within the meaning of Section 21E"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
risk-adjusted returns financial
"FCP’s long-standing track record of delivering attractive risk-adjusted returns"
A way of measuring investment performance that adjusts raw returns to account for how much risk was taken to earn them. Think of it like comparing two cars by not just top speed but also fuel efficiency: a higher ‘speed per gallon’ is more impressive. For investors it shows whether higher profits came from smart choices or simply from taking bigger chances, helping compare funds and make safer portfolio decisions.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 9, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||||||||||||
| of incorporation) | Identification No.) | |||||||||||||
(Address of principal executive offices, including zip code)
(412 ) 288-1900
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 8.01 OTHER EVENTS
On April 9, 2026 , Federated Hermes, Inc. (“FHI”) announced the closing of its previously announced acquisition of an 80% interest in FCP Fund Manager, L.P. (“FCP” or “Company”), a privately held U.S. real estate investment manager based in Chevy Chase, Maryland. In connection with the closing, FCP converted to a Delaware limited liability company and changed its name to Federated Hermes FCP Manager, LLC.
As previously announced, 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.
Attached herewith as Exhibit 99.1 is a press release issued by FHI regarding the closing.
Forward-Looking Statements
This Current Report on Form 8-K contains certain forward-looking statements within the meaning of Section 21E of the Exchange Act and Section 27A of the Securities Act. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as “trend,” “forecast,” “project,” “predict,” “potential,” “approximate,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “projection,” “plan,” “assume,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “can,” “may” and similar expressions. Without limiting the generality of the foregoing, forward-looking statements contained in this Current Report on Form 8-K specifically include statements regarding FHI’s plans, expectations, goals and projections relating to the acquisition of FCP, including statements relating to the expected expansion of FHI’s private market offerings and FCP’s leadership position. The forward-looking statements included in this Form 8-K involve risks and uncertainties that could cause actual results to differ materially from those projected. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. FHI has based these forward-looking statements on current expectations and assumptions about future events, taking into account information currently known by FHI. While FHI considers these expectations and assumptions to be reasonable, any forward-looking statement, and FHI’s level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond FHI’s control. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements. Any forward-looking statement speaks only as of the date on which such statement is made, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits:
Exhibit 99.1 | Press release issued by Federated Hermes, Inc. dated | ||||||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FEDERATED HERMES, INC. | ||||||||||||||
| (REGISTRANT) | ||||||||||||||
| Date | By: | /s/ Thomas R. Donahue | ||||||||||||
| Thomas R. Donahue | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
Exhibit 99.1
Federated Hermes, Inc. completes acquisition of 80% majority interest in FCP Fund Manager, L.P.
•FCP® is a privately held multifamily real estate investment manager with client assets of $3.5 billion (December 31, 2025)
•Extends Federated Hermes’ real estate footprint into major US markets, complementing its long-established UK platform
•Strengthens Federated Hermes’ commitment to expanding its private markets/alternatives capabilities, particularly in the United States
•Expands FCP’s institutional platform to support its continued growth
(PITTSBURGH, Pa., April 9, 2026) — Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced the completion of its previously announced acquisition of an 80% majority interest in FCP Fund Manager, L.P. (FCP®), a privately held US real estate investment manager based in Chevy Chase, Maryland. In connection with the closing, FCP Fund Manager, L.P. converted to a Delaware limited liability company named Federated Hermes FCP Manager, LLC.
As previously stated, 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.
Founded as a specialist in the US multifamily sector, FCP® invests across the US multifamily asset class through predominantly equity and several debt vehicles. Since inception, the firm has invested in, operated, and/or financed more than $14.8 billion in gross asset value, including more than 75,000 multifamily units, and today manages portfolios from six US offices with deep local coverage across 19 priority markets. FCP’s® 75-plus-member team will continue operating from its existing locations.
This 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 (data as of December 31, 2025). The acquisition also complements Federated Hermes’ longstanding UK real estate operations, which had $5.3 billion in assets under management as of December 31, 2025.
J. Christopher Donahue, President and Chief Executive Officer, Federated Hermes, said: “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.”
MEDIA: MEDIA: ANALYSTS:
Johnny Weir +44(0)7990 565211 Ed Costello 412-288-7538 Ray Hanley 412-288-1920
Federated Hermes, Inc. completes acquisition of FCP Fund Manager, L.P. Page 2 of 3
“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.”
Esko Korhonen, Founding Managing Partner, FCP®, said: “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.”
About Federated Hermes
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $902.6 billion in assets under management, as of December 31, 2025. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.
About FCP®
FCP® is a privately held real estate investment company that has invested in or financed more than $14.8 billion in gross asset value since its founding in 1999. FCP® invests directly and with operating partners in commercial and residential assets. The firm makes equity and structured investments in income-producing and development properties. Based in Chevy Chase, MD, FCP® invests both its commingled, discretionary funds and separate accounts targeted at major real estate markets in the United States. For further information on FCP®, please visit fcpdc.com.
# # #
This press release contains certain forward-looking statements within the meaning of Section 21E of the Exchange Act and Section 27A of the Securities Act. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as “trend,” “forecast,” “project,” “predict,” “potential,” “approximate,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “projection,” “plan,” “assume,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “can,” “may” and similar expressions. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding Federated Hermes’ plans, expectations, goals and projections relating to the acquisition of FCP®, including statements relating to the expected expansion of Federated Hermes’ private market offerings and FCP’s leadership position. The forward-looking statements included in this press release involve risks and uncertainties that could cause actual results to differ materially from those projected. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Federated Hermes has based these forward-looking statements on current expectations and
Federated Hermes, Inc. completes acquisition of FCP Fund Manager, L.P. Page 3 of 3
assumptions about future events, taking into account information currently known by Federated Hermes. While Federated Hermes considers these expectations and assumptions to be reasonable, any forward-looking statement, and Federated Hermes’ level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes’ control. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements. Any forward-looking statement speaks only as of the date on which such statement is made, and neither Federated Hermes nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.
FAQ
What acquisition did Federated Hermes (FHI) complete involving FCP Fund Manager?
Federated Hermes completed the acquisition of an 80% majority interest in FCP Fund Manager, a privately held U.S. multifamily real estate investment manager. FCP is based in Chevy Chase, Maryland and focuses on multifamily investments across major U.S. markets through equity and debt vehicles.
What is the total purchase price Federated Hermes (FHI) agreed for FCP Fund Manager?
The aggregate purchase price is up to $331 million. It includes $215.8 million in cash, $23.2 million in Federated Hermes Class B common stock, and additional contingent consideration of up to $92 million payable over multiple periods, linking part of the value to future outcomes.
How large is FCP Fund Manager’s business acquired by Federated Hermes (FHI)?
FCP manages client assets of $3.5 billion as of December 31, 2025. Since inception, it has invested in, operated, and/or financed more than $14.8 billion in gross asset value, including over 75,000 multifamily units across 19 priority U.S. markets from six offices.
How does the FCP acquisition fit Federated Hermes’ (FHI) alternatives strategy?
The deal expands Federated Hermes’ private markets and alternatives capabilities, especially in U.S. real estate. It builds on an existing $19.1 billion Alternatives platform and complements $5.3 billion in UK real estate assets under management, within total firm assets of $902.6 billion as of December 31, 2025.
How was FCP Fund Manager reorganized after the Federated Hermes (FHI) transaction?
At closing, FCP Fund Manager, L.P. converted into a Delaware limited liability company named Federated Hermes FCP Manager, LLC. Its 75-plus-member team will continue operating from existing U.S. locations, maintaining local market coverage while integrating into Federated Hermes’ broader platform.
What portion of the FHI–FCP purchase price is contingent consideration?
Up to $92 million of the total $331 million purchase price is contingent consideration. This amount can be paid over multiple periods, making part of the overall consideration dependent on future conditions or performance, alongside the upfront cash and stock components.