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PITTSBURGH - Federated Hermes, Inc. (NYSE:FHI) completed its acquisition of an 80% majority interest in FCP Fund Manager, L.P., a US real estate investment manager based in Chevy Chase, Maryland, according to a press release statement issued today.
The aggregate purchase price totals up to $331 million, comprising $215.8 million in cash, $23.2 million in Federated Hermes Class B common stock, and potential contingent consideration of up to $92 million over multiple periods. The acquired entity has been converted to a Delaware limited liability company named Federated Hermes FCP Manager, LLC.The acquisition represents roughly 8% of Federated Hermes’ $4.14 billion market capitalization. The company maintains strong financial footing with an InvestingPro Financial Health score rated as "GREAT" and trades at a P/E ratio of 11.14, attractive relative to its growth prospects.
FCP is a multifamily real estate investment manager with client assets of $3.5 billion as of December 31, 2025. Since its founding in 1999, the firm has invested in, operated, or financed more than $14.8 billion in gross asset value, including over 75,000 multifamily units. The company operates from six US offices with coverage across 19 priority markets and employs more than 75 team members who will continue operating from existing locations.
The transaction extends Federated Hermes’ real estate operations into major US markets. The company currently maintains $5.3 billion in assets under management in UK real estate as of December 31, 2025. The acquisition adds to Federated Hermes’ $19.1 billion Alternatives platform, which includes Private Equity, Private Credit, Infrastructure, Real Estate, and Market Neutral strategies.
Federated Hermes had $902.6 billion in assets under management as of December 31, 2025, and serves more than 11,000 institutions and intermediaries worldwide. According to InvestingPro analysis, the stock currently trades below its Fair Value, appearing on the platform’s most undervalued stocks list. The company boasts a perfect Piotroski Score of 9, indicating exceptional financial strength, and has maintained dividend payments for 29 consecutive years—among 10+ additional ProTips available to subscribers. Investors seeking deeper analysis can access FHI’s comprehensive Pro Research Report, one of 1,400+ available for US equities.
J. Christopher Donahue, President and Chief Executive Officer of Federated Hermes, stated the acquisition "accelerates our entry into the US real estate market."
Esko Korhonen, Founding Managing Partner of FCP, said the transaction "marks an exciting new chapter for FCP."
In other recent news, Federated Hermes reported strong financial results for the fourth quarter of 2025. The company achieved an earnings per share of $1.39, surpassing analysts’ expectations of $1.21, which represents a 14.88% surprise. Revenue also exceeded forecasts, coming in at $482.83 million compared to the anticipated $469.45 million, marking a 2.85% beat. These results highlight a positive performance for the company in the recent quarter.
Additionally, Federated Hermes is facing legal proceedings initiated by Aberdeen City Council concerning its subsidiary, Hermes GPE LLP, and Hermes Infrastructure II GP LLP. The legal claims relate to the roles of these entities as investment manager and general partner of the Hermes Infrastructure Fund II. The proceedings are taking place in the High Court of Justice, Business and Property Courts of England and Wales. These developments come as the company continues to navigate both its financial performance and legal challenges.
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