Federated Hermes to acquire majority interest in FCP Fund Manager

Federated Hermes (FHI) has reached a definitive agreement to acquire 80% of FCP Fund Manager, a privately held U.S. real estate investment manager based in Chevy Chase, Maryland. FCP specializes in investing across the U.S. Multifamily asset class deploying capital through predominantly equity and several debt vehicles. FCP has invested in, operated and/or financed more than $14.6B in gross asset value since inception, including more than 75,000 multifamily apartment units. Upon completion of the transaction, FCP and its 75-plus member team will continue to manage investment portfolios and other aspects of the business from its current locations. FCP has six U.S. offices, including its headquarters in Chevy Chase, Maryland, and deep local coverage of 19 priority U.S. markets that provide meaningful local knowledge and capability in high-growth areas of the country. The aggregate purchase price of up to $331M includes $215.8M in cash consideration and $23.2M in Federated Hermes Class B common stock that will be paid and issued at closing, and opportunities to earn contingent consideration of up to $92M over multiple year periods after closing. The transaction s expected to close in the first half of 2026, subject to certain conditions.