Federated Hermes Expands Multifamily Stake

Federated Hermes acquires majority interest in FCP Fund Manager, boosting multifamily sector presence across 19 US markets.

April 13, 2026

Nina Dale

Federated Hermes acquires an 80% stake in FCP Fund Manager for up to $331M.
FCP has managed holdings in 19 US markets and invested or operated $14.8B in real estate.
The acquired entity will be rebranded as Federated Hermes FCP Manager, with all staff retained.

Key Takeaways

Federated Hermes Secures FCP Majority Stake

Federated Hermes has finalized its purchase of an 80% interest in FCP Fund Manager, a major player in US multifamily real estate. Multi-Housing News reports that the transaction, valued at up to $331M, marks a substantial boost in Federated Hermes’ multifamily asset management platform.

FCP, based in Chevy Chase, MD, has operated in 19 markets and invested more than $14.8B since inception. The firm has a history of acquisitions, operations, and financing across over 75,000 multifamily units nationwide.

Deal Structure and Transition

The acquisition includes $215.8M in cash, $23.2M in Federated Hermes Class B stock, and up to $92M in contingent payments. FCP Fund Manager will convert to a Delaware LLC and rebrand as Federated Hermes FCP Manager. All of FCP’s 75 employees will remain at existing offices.

Pittsburgh-based Federated Hermes reported $902.6B in assets under management at 2025’s end, with clients spanning corporations, banks, and governmental entities. The acquisition deepens its exposure to the multifamily real estate sector, as institutional players continue leaning into property sectors supported by evolving workplace trends and shifting tenant demand patterns.

Recent FCP Activities

Before the majority sale, FCP continued active dealmaking. In February, the company closed on Cottages of Monroe, a 151-unit community in North Carolina via its Housing Preservation Fund for $41.25M. In January, FCP sold the 28-acre Midline Raleigh mixed-use property to Kane Realty for $72.3M.

Additional 2025 highlights include a sale of The Jax, a 322-unit San Antonio property. The firm also completed a Texas JV acquisition of Crest Manor, a 600-unit apartment asset in the Dallas suburb of Lewisville. The firm maintains a robust presence in both acquisition and disposition throughout its markets.

What’s Next

With FCP’s integration, Federated Hermes strengthens its multifamily platform and widens its national real estate reach. The FCP portfolio and management are set to support Federated Hermes as it seeks new opportunities across multifamily. The firm is also expected to expand into adjacent real estate sectors.