Federated Hermes Inc.
01/30/2026 | Press release | Distributed by Public on 01/30/2026 15:27
Material Event (Form 8-K)
ITEM 8.01 OTHER EVENTS
On January 5, 2026, Hermes GPE LLP (HGPE), a wholly owned subsidiary of Federated Hermes, Inc. based in London, England, acknowledged service of "Particulars of Claim" served on it and Hermes Infrastructure II GP LLP (General Partner) in the High Court of Justice, Business and Property Courts of England and Wales, Chancery Division (Court), on December 19, 2025 by Aberdeen City Council as the administering authority of the Aberdeen City Council Pension Fund (also known as the North East Scotland Pension Fund) (Plaintiff). Without alleging specified damages, Plaintiff had taken initial steps to institute legal proceedings against HGPE and General Partner by filing a Claim Form with the Court on August 5, 2025.
HGPE sponsors and serves as investment manager to the Hermes Infrastructure Fund II (the Fund). General Partner serves as the general partner of the Fund. In 2019, the Fund made an approximately £90 million initial (approximately £104 million in total) investment in a group of companies holding a portfolio of five onshore wind farms in Sweden known as the "Ventus Portfolio". According to Plaintiff's Particulars of Claim, Plaintiff is asserting derivative claims on behalf of the Fund's General Partner against HGPE for professional negligence and breach of the Fund's limited partnership agreement in connection with the Fund's investment in the Ventus Portfolio, which declined in value since 2019. According to Plaintiff's Particulars of Claim, Plaintiff also is asserting direct claims against General Partner for breach of duty under the Fund's limited partnership agreement in failing to oversee and hold HGPE to the terms of its appointment as manager of the Fund in connection with the Fund's investment in the Ventus Portfolio. The Plaintiff alleges that HGPE was negligent in making the 2019 investment in the Ventus Portfolio. The Plaintiff's derivative claim, which is based on the Fund's entire investment in the Ventus Portfolio, seeks the approximately £87 million of the alleged diminished value of the Ventus Portfolio (or, using currency exchange rates as of January 28, 2026, approximately $120 million) and other unquantified damages. The Plaintiff's direct claims against General Partner based on the size of its individual investment in the Fund seek approximately 38.1% of the approximately £87 million of the alleged diminished value of the Ventus Portfolio (or, using currency exchange rates as of January 28, 2026, approximately $46 million).
Federated Hermes, HGPE and General Partner deny Plaintiff's allegations, believe the claims are without merit, and intend to vigorously defend against such claims. General Partner does not believe that HGPE is liable to the Fund. Based on information currently available, Federated Hermes does not believe that the outcome of this matter will have a material adverse effect on its consolidated financial position, results of operations, or cash flows given, among other reasons, the lack of merit to Plaintiff's allegations and claims. Out of an abundance of caution, a claim has been filed with Federated Hermes' insurers under its insurance policy for the appropriate policy period.
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