Core Viewpoint - Federated Hermes, Inc. has signed a definitive agreement to acquire 80% of FCP Fund Manager, L.P., a U.S. real estate investment manager, for a total purchase price of up to $331 million, enhancing its private markets and real estate capabilities in the U.S. [1][4][5] Company Overview - Federated Hermes is a global leader in active investment management with $845.7 billion in assets under management as of June 30, 2025 [13]. - FCP has invested in over $14.6 billion in gross asset value since its inception, focusing on the U.S. multifamily asset class [2][14]. Transaction Details - The acquisition includes $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock, with potential contingent consideration of up to $92 million [4]. - The transaction is expected to close in the first half of 2026, pending certain conditions [9]. Strategic Implications - This acquisition will enhance Federated Hermes' Private Markets/Alternatives offerings, which already total $19 billion as of September 30, 2025 [5][6]. - The deal will expand Federated Hermes' real estate capabilities into major U.S. markets, complementing its existing operations in the U.K. [6][9]. Leadership Insights - J. Christopher Donahue, CEO of Federated Hermes, emphasized the strong fundamentals and growth opportunities in the multifamily sector, highlighting FCP's long-term investment performance [7]. - Esko Korhonen, FCP's Founding Managing Partner, noted the alignment of values and commitment to building a private markets business with Federated Hermes [8].