Pittsburgh’s Federated Hermes has officially closed on an 80% stake in Chevy Chase-based FCP Fund Manager for up to $331 million, locking in a big bet on the U.S. apartment market. The Maryland real estate investor will sit under the Federated Hermes umbrella but keep its current leadership team and offices, giving the Pittsburgh firm more heft in private-markets investing while folding FCP’s national multifamily portfolio into its U.S. platform.
Deal details
In a press release via PR Newswire, Federated Hermes confirmed that FCP has been converted into Federated Hermes FCP Manager, LLC and said the firm’s more than 75-person team will continue to handle the day-to-day business. The FCP website also flags the closing and continues to list the company’s six U.S. offices.
How the deal is structured
The purchase agreement filed with the SEC filings shows Federated Hermes taking an initial 80% interest in the converted entity, while the selling parties keep 20% and the right to appoint three directors. The filings and company disclosures spell out an aggregate purchase price that includes $215.8 million in cash, $23.2 million in Class B common stock issued at closing, and up to $92 million in contingent consideration.
Pittsburgh tie and scale
Federated Hermes is headquartered in downtown Pittsburgh, a detail noted by CoStar, and the firm reported roughly $902.6 billion in assets under management at the end of 2025, according to an earnings release carried by PR Newswire.
Who advised the deal
K&L Gates advised Federated Hermes, while Goodwin Procter represented FCP, according to legal coverage of the transaction. Law360 reviewed counsel rosters and deal documents filed with regulators.
Why it matters
FCP focuses on the U.S. multifamily sector and reports that it has invested in, operated or financed more than $14.8 billion in gross asset value tied to more than 75,000 apartment units since its founding. FCP says its regional operating teams and commingled fund structures will remain core to the business as Federated Hermes builds out its U.S. private-markets product lineup.
Next steps
The closing follows a purchase agreement first announced last October and extends Federated Hermes’ recent private-markets push as it chases greater scale in U.S. real estate. The Pittsburgh Business Times reported on the transaction on April 10.
