Federated Hermes Buys Majority Interest in FCP

April 13, 2026

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FCP owns assets in 19 markets.

Federated Hermes has completed the acquisition of an 80 percent interest in FCP Fund Manager, a privately held U.S. real estate investment firm. FCP has invested in, operated or financed more than $14.8 billion worth of real estate since its inception, including more than 75,000 multifamily units nationwide.

The purchase price of up to $331 million includes $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock. Another part of the price includes a potential contingent consideration of as much as $92 million, paid over time.

Founded as a specialist in multifamily, FCP invests in the sector mainly through equity and debt vehicles. The Chevy Chase, Md.-based entity manages portfolios from six U.S. offices with holdings in 19 markets.

As part of the deal, FCP Fund Manager will convert to a Delaware limited liability company and be rebranded as Federated Hermes FCP Manager. FCP’s 75-plus employees will continue working from its existing locations.

Pittsburgh-based Federated Hermes had $902.6 billion in assets under management as of the end of 2025. Its clients include corporations, insurance companies, foundations and endowments, banks and governmental entities.

FCP’s final independent moments

During its last months as an independent entity, FCP had been a continuously active buyer and seller of multifamily.

In February, FCP acquired Cottages of Monroe, a 151-unit cottage-style apartment community in Monroe, N.C., in Union County, near Charlotte. The company paid $41.25 million through its Housing Preservation Fund.

In January, the company sold a 28-acre site called Midline Raleigh to Kane Realty for $72.3 million, having paid just $37.1 million for the asset five years ago. The property includes a 365-unit community and the 115,413-square-foot Grove Towers office asset, both in Raleigh, N.C.

In September 2025, FCP sold The Jax, a 322-unit apartment community in San Antonio, to Kairoi Residential. FCP sold the asset after three years of ownership. The garden-style property includes 17 three-story buildings on an 18-acre site.

Also in 2025, a joint venture between SPI Advisory and FCP acquired Crest Manor, a 600-unit apartment community located in Lewisville, Texas, a suburb of Dallas. The property was sold in an off-market transaction.