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FHI Expands Private Markets Capabilities With 80% Stake in FCP
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Key Takeaways
Federated Hermes acquired an 80% stake in FCP to expand its U.S. real estate platform.
FCP manages $3.5B in assets and focuses on multifamily investments across 19 U.S. markets.
FHI aims to grow private markets, adding real estate exposure and boosting alternatives AUM.
Federated Hermes, Inc. (FHI - Free Report) completed the previously announced acquisition of an 80% majority interest in FCP Fund Manager, L.P., a privately held U.S. real estate investment manager.
In October 2025, FHI entered into a definitive agreement to acquire the majority stake in FCP to strengthen its private markets and real estate capabilities, particularly in the United States. Following the completion of the transaction, FCP has been converted into a Delaware limited liability company named Federated Hermes FCP Manager, LLC.
At the time of the deal announcement, the aggregate purchase price was structured at up to $331 million, including $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock, along with contingent consideration of up to $92 million payable over multiple periods.
FCP, a U.S. multifamily real estate specialist, manages approximately $3.5 billion in client assets as of Dec. 31, 2025, with investments spanning more than $14.8 billion in gross asset value. The firm operates across six U.S. offices with coverage in 19 key markets.
The transaction expands Federated Hermes’ real estate footprint across major U.S. markets and complements its well-established U.K. real estate platform, which had $5.3 billion in assets under management (AUM) as of Dec. 31, 2025.
Strategic Rationale Behind FHI’s Acquisition
The acquisition expands FHI’s private markets and alternatives platform, particularly in the United States. The U.S. real estate market, particularly the multifamily segment, offers strong fundamentals and durable demand, supporting long-term growth and diversification.
FCP brings deep expertise in the multifamily housing sector, supported by a strong track record of generating attractive risk-adjusted returns and extensive local market knowledge. The addition broadens FHI’s investment capabilities and increases its exposure to income-generating real estate assets. The addition of FCP further enhances FHI’s ability to develop new private markets products while expanding its residential real estate capabilities across the United States and the United Kingdom, increasing exposure to income-generating assets.
The transaction also strengthens FHI’s alternatives platform, which spans private equity, private credit, infrastructure, real estate, and market-neutral strategies, with $19.1 billion in AUM as of Dec. 31, 2025.
In recent years, the company has been expanding its presence across private markets and alternative investment strategies to support long-term growth and diversification. In April 2025, it acquired a majority stake in Rivington Energy Management Limited, a U.K.-based renewable energy developer, strengthening its infrastructure platform and broadening its private markets offering. Earlier, in 2022, it acquired C.W. Henderson and Associates, Inc., expanding its separately managed account business. These initiatives reflect FHI’s focus on scaling its alternatives platform, which is expected to support AUM growth over the long term.
FHI’s Price Performance & Zacks Rank
In the past six months, FHI shares have gained 11.54% against the industry’s decline of 13.31%.
Other Finance Firms' Efforts to Expand Private Markets Capabilities
In March 2026, Charles Schwab (SCHW - Free Report) completed the acquisition of Forge Global Holdings, Inc. The all-cash transaction, valued at $660 million, was announced in November 2025.
The acquisition aligns with SCHW’s strategy to offer private markets capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory, and investment management solutions, to address the complex needs of investors.
In December 2025, Virtus Investment Partners, Inc. (VRTS - Free Report) , entered a definitive agreement to acquire a majority interest in Keystone National Group (Keystone), an investment manager specializing in asset-centric private credit and a pioneer in providing such strategies to the wealth channel.
The addition of Keystone’s capabilities is expected to strengthen VRTS’s multi-manager model by introducing a differentiated asset-backed lending capability, positioning the company to meet the rising demand for private markets solutions. The deal is anticipated to close in the first quarter of 2026, subject to customary closing conditions, including approvals from the KPIF fund board and shareholders.
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FHI Expands Private Markets Capabilities With 80% Stake in FCP
Key Takeaways
Federated Hermes, Inc. (FHI - Free Report) completed the previously announced acquisition of an 80% majority interest in FCP Fund Manager, L.P., a privately held U.S. real estate investment manager.
In October 2025, FHI entered into a definitive agreement to acquire the majority stake in FCP to strengthen its private markets and real estate capabilities, particularly in the United States. Following the completion of the transaction, FCP has been converted into a Delaware limited liability company named Federated Hermes FCP Manager, LLC.
At the time of the deal announcement, the aggregate purchase price was structured at up to $331 million, including $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock, along with contingent consideration of up to $92 million payable over multiple periods.
FCP, a U.S. multifamily real estate specialist, manages approximately $3.5 billion in client assets as of Dec. 31, 2025, with investments spanning more than $14.8 billion in gross asset value. The firm operates across six U.S. offices with coverage in 19 key markets.
The transaction expands Federated Hermes’ real estate footprint across major U.S. markets and complements its well-established U.K. real estate platform, which had $5.3 billion in assets under management (AUM) as of Dec. 31, 2025.
Strategic Rationale Behind FHI’s Acquisition
The acquisition expands FHI’s private markets and alternatives platform, particularly in the United States. The U.S. real estate market, particularly the multifamily segment, offers strong fundamentals and durable demand, supporting long-term growth and diversification.
FCP brings deep expertise in the multifamily housing sector, supported by a strong track record of generating attractive risk-adjusted returns and extensive local market knowledge. The addition broadens FHI’s investment capabilities and increases its exposure to income-generating real estate assets. The addition of FCP further enhances FHI’s ability to develop new private markets products while expanding its residential real estate capabilities across the United States and the United Kingdom, increasing exposure to income-generating assets.
The transaction also strengthens FHI’s alternatives platform, which spans private equity, private credit, infrastructure, real estate, and market-neutral strategies, with $19.1 billion in AUM as of Dec. 31, 2025.
In recent years, the company has been expanding its presence across private markets and alternative investment strategies to support long-term growth and diversification. In April 2025, it acquired a majority stake in Rivington Energy Management Limited, a U.K.-based renewable energy developer, strengthening its infrastructure platform and broadening its private markets offering. Earlier, in 2022, it acquired C.W. Henderson and Associates, Inc., expanding its separately managed account business. These initiatives reflect FHI’s focus on scaling its alternatives platform, which is expected to support AUM growth over the long term.
FHI’s Price Performance & Zacks Rank
In the past six months, FHI shares have gained 11.54% against the industry’s decline of 13.31%.
Price Performance
Image Source: Zacks Investment Research
Currently, FHI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Firms' Efforts to Expand Private Markets Capabilities
In March 2026, Charles Schwab (SCHW - Free Report) completed the acquisition of Forge Global Holdings, Inc. The all-cash transaction, valued at $660 million, was announced in November 2025.
The acquisition aligns with SCHW’s strategy to offer private markets capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory, and investment management solutions, to address the complex needs of investors.
In December 2025, Virtus Investment Partners, Inc. (VRTS - Free Report) , entered a definitive agreement to acquire a majority interest in Keystone National Group (Keystone), an investment manager specializing in asset-centric private credit and a pioneer in providing such strategies to the wealth channel.
The addition of Keystone’s capabilities is expected to strengthen VRTS’s multi-manager model by introducing a differentiated asset-backed lending capability, positioning the company to meet the rising demand for private markets solutions. The deal is anticipated to close in the first quarter of 2026, subject to customary closing conditions, including approvals from the KPIF fund board and shareholders.