FHI · Federated Hermes, Inc.

This acquisition represents a strategic expansion of Federated Hermes’ private markets capabilities in the United States, specifically targeting the multifamily real estate sector—a core area of FCP’s expertise since its founding in 1999. With $3.5 billion in client assets under management as of December 31, 2025, and a track record of deploying over $14.8 billion in gross asset value across more than 75,000 multifamily units, FCP brings scale, geographic reach (19 priority U.S. markets), and operational depth to Federated Hermes’ existing $19.1 billion Alternatives platform. The transaction directly complements Federated Hermes’ longstanding UK real estate operations ($5.3 billion AUM as of December 31, 2025) and advances its global strategy to build a diversified, high-quality alternatives business. Structurally, the deal includes significant contingent consideration—up to $92 million—tied to future performance, aligning incentives and signaling confidence in FCP’s growth trajectory. The conversion to a Delaware LLC and rebranding to Federated Hermes FCP Manager, LLC formalizes integration while preserving FCP’s local operating model and 75-plus-member team. Management emphasized the strength of U.S. multifamily fundamentals and durable demand as key drivers, positioning the acquisition not just as a scale play but as a targeted entry into a resilient, structurally advantaged segment of real estate. For investors, this materially enhances Federated Hermes’ ability to offer clients differentiated private market solutions in a high-conviction asset class, with potential upside embedded in the earn-out structure and cross-selling opportunities across its $902.6 billion global AUM base.