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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _______________________________________________________________________________________
FORM 10-Q
 _______________________________________________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 001-14818
 _______________________________________________________________________________________
Federated Hermes, Inc.
(Exact name of registrant as specified in its charter)
 _______________________________________________________________________________________
Pennsylvania 25-1111467
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
1001 Liberty Avenue 15222-3779
Pittsburgh,
Pennsylvania
(Address of principal executive offices) (Zip Code)
(Registrant’s telephone number, including area code) 412-288-1900
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class B common stock, no par valueFHINew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerx  Accelerated filer
Non-accelerated filer  Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes       No  x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date: As of October 21, 2022, the Registrant had outstanding 9,000 shares of Class A common stock and 88,986,067 shares of Class B common stock.

Table of Contents


FORWARD-LOOKING STATEMENTS
Certain statements in this report on Form 10-Q constitute forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that could cause the actual results, levels of activity, performance or achievements of Federated Hermes, Inc. and its consolidated subsidiaries (collectively, Federated Hermes), or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “forecast,” “project,” “predict,” “trend,” “approximate,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “projection,” “plan,” “assume,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “can,” “may,” and similar expressions. Among other forward-looking statements, such statements include certain statements relating to, or, as applicable, statements concerning management’s assessments, beliefs, expectations, assumptions, judgments, projections or estimates regarding: the pandemic and its impact; Russia’s invasion of Ukraine and its impact; asset flows, levels, values and mix and their impact; the possibility of impairments; business mix; the level, timing, degree and impact of changes in interest rates or gross or net yields; rates of inflation; fee rates and recognition; sources, levels and recognition of revenues, expenses, gains, losses, income and earnings; the level and impact of reimbursements, rebates or assumptions of fund-related expenses and fee waivers for competitive reasons such as to maintain positive or zero net yields (Voluntary Yield-related Fee Waivers), to maintain certain fund expense ratios, to meet regulatory requirements or to meet contractual requirements (collectively, Fee Waivers); whether, under what circumstances and the degree to which Fee Waivers will be implemented; the impact of market volatility, liquidity, and other market conditions; whether and when revenue or expense is recognized; whether and when capital contributions could be made; the components and level of, and prospect for, distribution-related expenses; guarantee and indemnification obligations; the impact of acquisitions on Federated Hermes’ growth; the timing and amount of acquisition-related payment obligations; payment obligations pursuant to employment or incentive arrangements; vesting rights and requirements; business and market expansion opportunities, including acceleration of global growth; interest and principal payments or expenses; taxes, tax rates and the impact of tax law changes; borrowing, debt, future cash needs and principal uses of cash, cash flows and liquidity; the ability to raise additional capital; type, classification and consolidation of investments; uses of treasury stock; Federated Hermes’ product and market performance and Federated Hermes’ performance indicators; investor preferences; product and strategy demand, distribution, development and restructuring initiatives and related planning and timing; the effect, and degree of impact, of changes in customer relationships; legal proceedings; regulatory matters, including the pace, timing, impact, effects and other consequences of the current regulatory environment; the attractiveness and resiliency of money market funds; dedication of resources; accounting-related determinations; compliance, and related legal, compliance and other professional services expenses; and interest rate, concentration, market, currency and other risks and their impact. Any forward-looking statement is inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes’ control. Among other risks and uncertainties, market conditions can change significantly and impact Federated Hermes’ business and results, including by changing Federated Hermes’ asset flows, levels, and mix, and business mix, which could cause a decline in revenues and net



income, result in impairments and change the amount of Fee Waivers incurred by Federated Hermes. The obligation to make purchase price payments in connection with acquisitions is subject to certain adjustments and conditions, and the obligation to make contingent payments is based on net revenue growth levels and will be affected by the achievement of such levels. The obligation to make additional payments pursuant to employment or incentive arrangements can be based on satisfaction of certain conditions set forth in those arrangements. Future cash needs, cash flows and uses of cash will be impacted by a variety of factors, including the number and size of any acquisitions, Federated Hermes’ success in developing, structuring and distributing its products and strategies, potential changes in assets under management (AUM) and/or changes in the terms of distribution and shareholder services contracts with intermediaries who offer Federated Hermes’ products to intermediary customers, and potential increased legal, compliance and other professional services expenses stemming from additional or modified regulation or the dedication of such resources to other initiatives. Federated Hermes’ risks and uncertainties also include liquidity and credit risks in Federated Hermes’ money market funds and revenue risk, which will be affected by yield levels in money market fund products, Fee Waivers, changes in fair values of AUM, any additional regulatory reforms, investor preferences and confidence, and the ability of Federated Hermes to collect fees in connection with the management of such products. Many of these factors could be more likely to occur as a result of continued scrutiny of the mutual fund industry by domestic or foreign regulators, and any disruption in global financial markets. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither Federated Hermes nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future. For more information on these items and additional risks that could impact the forward-looking statements, see Item 1A - Risk Factors included in Federated Hermes’ Annual Report on Form 10-K for the year ended December 31, 2021 and Part II, Item 1A - Risk Factors.


Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
September 30,
2022
December 31,
2021
ASSETS
Current Assets
Cash and Cash Equivalents$304,520 $233,327 
Investments—Consolidated Investment Companies107,277 105,542 
Investments—Affiliates and Other69,399 87,805 
Receivables, net of reserve of $21 and $21, respectively
48,586 65,317 
Receivables—Affiliates33,000 30,956 
Prepaid Expenses26,112 29,322 
Other Current Assets41,389 7,178 
Total Current Assets630,283 559,447 
Long-Term Assets
Goodwill774,570 798,871 
Intangible Assets, net of accumulated amortization of $40,949 and $39,618, respectively
406,813 471,209 
Property and Equipment, net of accumulated depreciation of $114,535 and $113,624, respectively
37,928 46,965 
Right-of-Use Assets, net93,271 108,306 
Other Long-Term Assets29,705 33,389 
Total Long-Term Assets1,342,287 1,458,740 
Total Assets$1,972,570 $2,018,187 
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Expenses$72,037 $64,019 
Accrued Compensation and Benefits118,143 162,203 
Lease Liabilities17,839 17,447 
Other Current Liabilities30,910 27,038 
Total Current Liabilities238,929 270,707 
Long-Term Liabilities
Long-Term Debt397,514 223,350 
Long-Term Deferred Tax Liability, net188,884 205,206 
Long-Term Lease Liabilities88,402 105,270 
Other Long-Term Liabilities32,826 36,435 
Total Long-Term Liabilities707,626 570,261 
Total Liabilities946,555 840,968 
Commitments and Contingencies (Note (17))
TEMPORARY EQUITY
Redeemable Noncontrolling Interests in Subsidiaries54,586 63,202 
PERMANENT EQUITY
Federated Hermes, Inc. Shareholders’ Equity
Common Stock:
Class A, No Par Value, 20,000 Shares Authorized, 9,000 Shares Issued and Outstanding
189 189 
Class B, No Par Value, 900,000,000 Shares Authorized, 99,505,456 and 109,505,456 Shares Issued, respectively
433,842 448,929 
Retained Earnings1,002,201 1,187,001 
Treasury Stock, at Cost, 10,519,389 and 16,094,488 Shares Class B Common Stock, respectively
(377,387)(538,464)
Accumulated Other Comprehensive Income (Loss), net of tax(87,416)16,362 
Total Permanent Equity971,429 1,114,017 
Total Liabilities, Temporary Equity and Permanent Equity$1,972,570 $2,018,187 
(The accompanying notes are an integral part of these Consolidated Financial Statements.)
4


Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
 2022202120222021
Revenue
Investment Advisory Fees, net—Affiliates$206,394 $163,806 $574,081 $496,747 
Investment Advisory Fees, net—Other57,250 66,404 180,600 195,441 
Administrative Service Fees, net—Affiliates75,021 76,853 218,710 228,904 
Other Service Fees, net—Affiliates38,265 15,377 85,120 46,439 
Other Service Fees, net—Other4,213 4,149 13,404 11,271 
Total Revenue381,143 326,589 1,071,915 978,802 
Operating Expenses
Compensation and Related126,668 131,996 388,719 408,385 
Distribution91,032 38,486 223,837 120,990 
Systems and Communications19,294 18,537 57,234 56,086 
Professional Service Fees14,203 14,294 41,647 44,052 
Office and Occupancy10,622 11,036 32,457 33,358 
Advertising and Promotional6,496 4,660 13,965 12,107 
Travel and Related3,421 1,643 8,543 2,838 
Other12,627 7,535 32,466 23,297 
Total Operating Expenses284,363 228,187 798,868 701,113 
Operating Income96,780 98,402 273,047 277,689 
Nonoperating Income (Expenses)
Investment Income, net2,599 686 5,270 2,466 
Gain (Loss) on Securities, net(6,825)(644)(39,406)6,980 
Debt Expense(3,302)(476)(7,873)(1,313)
Other, net(38)(1,319)31 (1,158)
Total Nonoperating Income (Expenses), net(7,566)(1,753)(41,978)6,975 
Income Before Income Taxes89,214 96,649 231,069 284,664 
Income Tax Provision21,640 23,163 58,140 83,353 
Net Income Including the Noncontrolling Interests in Subsidiaries67,574 73,486 172,929 201,311 
Less: Net Income (Loss) Attributable to the Noncontrolling Interests in Subsidiaries(1,905)2,124 (10,070)(419)
Net Income$69,479 $71,362 $182,999 $201,730 
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Common Share—Basic$0.78 $0.73 $2.02 $2.05 
Earnings Per Common Share—Diluted$0.78 $0.73 $2.02 $2.04 
Cash Dividends Per Share$0.27 $0.27 $0.81 $0.81 
(The accompanying notes are an integral part of these Consolidated Financial Statements.)

5


Consolidated Statements of Comprehensive Income
(dollars in thousands)
(unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
 2022202120222021
Net Income Including the Noncontrolling Interests in Subsidiaries$67,574 $73,486 $172,929 $201,311 
Other Comprehensive Income (Loss), net of tax
Permanent Equity
Foreign Currency Translation Gain (Loss)(43,760)(7,248)(103,778)(2,195)
Temporary Equity
Foreign Currency Translation Gain (Loss)(1,713)(9,953)(3,238)(7,655)
Other Comprehensive Income (Loss), net of tax(45,473)(17,201)(107,016)(9,850)
Comprehensive Income Including the Noncontrolling Interests in Subsidiaries22,101 56,285 65,913 191,461 
Less: Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests in Subsidiaries(3,618)(7,829)(13,308)(8,074)
Comprehensive Income Attributable to Federated Hermes, Inc.$25,719 $64,114 $79,221 $199,535 
(The accompanying notes are an integral part of these Consolidated Financial Statements.)


6


Consolidated Statements of Changes in Equity
(dollars in thousands)
(unaudited)
 Federated Hermes, Inc. Shareholders’ Equity  
 Common
Stock
Additional
Paid-in
Capital from
Treasury
Stock
Transactions
Retained
Earnings
Treasury
Stock
Accumulated
Other
Comprehensive Income (Loss), net of
tax
Total
Permanent
Equity
Redeemable
Noncontrolling
Interest in
Subsidiaries/
Temporary
Equity
Balance at December 31, 2021$449,118 $0 $1,187,001 $(538,464)$16,362 $1,114,017 $63,202 
Net Income (Loss)55,863 55,863 (1,266)
Other Comprehensive Income (Loss), net of tax(17,134)(17,134)(457)
Subscriptions—Redeemable Noncontrolling Interest Holders30,340 
Consolidation (Deconsolidation)(16,034)
Stock Award Activity9,288 (12,116)12,147 9,319 707 
Dividends Declared(24,952)(24,952)
Distributions to Noncontrolling Interests in Subsidiaries(4,339)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests(14,221)(14,221)14,221 
Acquisition of Additional Equity of FHL3,518 34,048 37,566 (37,805)
Purchase of Treasury Stock(102,537)(102,537)
Balance at March 31, 2022$458,406 $3,518 $1,191,575 $(594,806)$(772)$1,057,921 $48,569 
Net Income (Loss)57,657 57,657 (6,899)
Other Comprehensive Income (Loss), net of tax(42,884)(42,884)(1,068)
Subscriptions—Redeemable Noncontrolling Interest Holders15,314 
Stock Award Activity9,430 (46)0 62 9,446 
Dividends Declared(24,705)(24,705)
Distributions to Noncontrolling Interests in Subsidiaries(1,185)
Purchase of Treasury Stock(89,542)(89,542)
Balance at June 30, 2022$467,836 $3,472 $1,224,527 $(684,286)$(43,656)$967,893 $54,731 
Net Income (Loss)69,479 69,479 (1,905)
Other Comprehensive Income (Loss), net of tax(43,760)(43,760)(1,713)
Subscriptions—Redeemable Noncontrolling Interest Holders4,494 
Consolidation (Deconsolidation)15,599 
Stock Award Activity8,895 8,895 
Dividends Declared(24,141)(24,141)
Distributions to Noncontrolling Interest in Subsidiaries(16,620)
Retirement of Treasury Stock(42,700)(3,472)(267,664)313,836 0 
Purchase of Treasury Stock(6,937)(6,937)
Balance at September 30, 2022$434,031 $0 $1,002,201 $(377,387)$(87,416)$971,429 $54,586 
Consolidated Statements of Changes in Equity
(dollars in thousands)
(unaudited)
 Federated Hermes, Inc. Shareholders’ Equity  
 Common
Stock
Additional
Paid-in
Capital from
Treasury
Stock
Transactions
Retained
Earnings
Treasury
Stock
Accumulated
Other
Comprehensive Income (Loss), net of
tax
Total
Permanent
Equity
Redeemable
Noncontrolling
Interest in
Subsidiaries/
Temporary
Equity
Balance at December 31, 2020$418,858 $0 $1,027,699 $(324,731)$15,171 $1,136,997 $236,987 
Net Income (Loss)74,484 74,484 (138)
Other Comprehensive Income (Loss), net of tax3,558 3,558 1,430 
Subscriptions—Redeemable Noncontrolling Interest Holders25,762 
Consolidation (Deconsolidation)(16,237)
Stock Award Activity9,216 (15,234)15,249 9,231 2,481 
Dividends Declared(26,788)(26,788)
Distributions to Noncontrolling Interests in Subsidiaries(1,898)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests2,670 2,670 (2,670)
Purchase of Treasury Stock(45,030)(45,030)
Balance at March 31, 2021$428,074 $0 $1,062,831 $(354,512)$18,729 $1,155,122 $245,717 
Net Income (Loss)0055,884 0055,884(2,405)
Other Comprehensive Income (Loss), net of tax00001,495 1,495868 
Subscriptions—Redeemable Noncontrolling Interest Holders000000899,962 
Consolidation (Deconsolidation)000000(894,175)
Stock Award Activity7,760 0(189)205 07,7762,518 
Dividends Declared00(26,550)00(26,550)
Distributions to Noncontrolling Interests in Subsidiaries000(1,016)
Purchase of Treasury Stock000(31,797)0(31,797)
Balance at June 30, 2021$435,834 $0 $1,091,976 $(386,104)$20,224 $1,161,930 $251,469 
Net Income (Loss)71,362 71,362 2,124 
Other Comprehensive Income (Loss), net of tax(7,248)(7,248)(9,953)
Subscriptions—Redeemable Noncontrolling Interest Holders66,903 
Consolidation (Deconsolidation)(74,836)
Stock Award Activity6,279 30 0 6,309 2,557 
Dividends Declared(26,301)(26,301)
Distributions to Noncontrolling Interests in Subsidiaries(1,178)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests16,502 16,502 (16,502)
Acquisition of Additional Equity of FHL(165,112)
Purchase of Treasury Stock(17,703)(17,703)
Balance at September 30, 2021$442,113 $30 $1,153,539 $(403,807)$12,976 $1,204,851 $55,472 
(The accompanying notes are an integral part of these Consolidated Financial Statements.)
7


Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
Nine Months Ended
September 30,
20222021
Operating Activities
Net Income Including the Noncontrolling Interests in Subsidiaries$172,929 $201,311 
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities
Depreciation and Amortization21,197 22,639 
Share-Based Compensation Expense27,619 23,283 
Subsidiary Share-Based Compensation Expense707 7,556 
(Gain) Loss on Disposal of Assets3,986 (6,975)
Provision (Benefit) for Deferred Income Taxes(6,969)19,495 
Consolidation/(Deconsolidation) of Other Entities(20)10,379 
Net Unrealized (Gain) Loss on Investments35,425 27 
Net Sales (Purchases) of Investments—Consolidated Investment Companies(26,216)(129,647)
Other Changes in Assets and Liabilities:
(Increase) Decrease in Receivables, net4,537 3,914 
(Increase) Decrease in Prepaid Expenses and Other Assets(23,734)3,887 
Increase (Decrease) in Accounts Payable and Accrued Expenses(22,984)(36,769)
Increase (Decrease) in Other Liabilities5,058 (18,144)
Net Cash Provided (Used) by Operating Activities191,535 100,956 
Investing Activities
Purchases of Investments—Affiliates and Other(18,606)(7,221)
Cash Paid for Business Acquisitions, Net of Cash Acquired0 (5,324)
Proceeds from Redemptions of Investments—Affiliates and Other21,389 33,291 
Cash Paid for Property and Equipment(4,094)(7,753)
Net Cash Provided (Used) by Investing Activities(1,311)12,993 
Financing Activities
Dividends Paid(73,804)(79,668)
Purchases of Treasury Stock(211,216)(92,426)
Distributions to Noncontrolling Interests in Subsidiaries(22,144)(4,092)
Contributions from Noncontrolling Interests in Subsidiaries50,148 101,297 
Payments to Acquire Additional Equity in FHL0 (163,696)
Cash paid for Business Acquisitions(7,053)(2,008)
Proceeds from New Borrowings488,300 82,150 
Payments on Debt(311,650)(55,000)
Other Financing Activities(2,571)60 
Net Cash Provided (Used) by Financing Activities(89,990)(213,383)
Effect of Exchange Rates on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents(29,980)(2,758)
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents70,254 (102,192)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period238,052 308,635 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period308,306 206,443 
Less: Restricted Cash Recorded in Other Current Assets3,516 4,449 
Less: Restricted Cash and Restricted Cash Equivalents Recorded in Other Long-Term Assets270 302 
Cash and Cash Equivalents$304,520 $201,692 
(The accompanying notes are an integral part of these Consolidated Financial Statements.)
8

Notes to the Consolidated Financial Statements
(unaudited)

(1) Basis of Presentation
Federated Hermes, Inc. and its consolidated subsidiaries (collectively, Federated Hermes) provide investment advisory, administrative, distribution and other services to various investment products, including sponsored investment companies, collective funds and other funds (Federated Hermes Funds) and separate accounts (which include separately managed accounts, institutional accounts, certain sub-advised funds and other managed products, collectively Separate Accounts) in both domestic and international markets. In addition, Federated Hermes markets and provides stewardship and real estate development services to various domestic and international companies. The interim consolidated financial statements of Federated Hermes included herein (Consolidated Financial Statements) have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP). In the opinion of management, the financial statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods presented.
In preparing the Consolidated Financial Statements, management is required to make estimates and assumptions that affect the amounts reported therein and in the accompanying notes. Actual results may differ from those estimates, and such differences may be material to the Consolidated Financial Statements.
The Consolidated Financial Statements should be read in conjunction with Federated Hermes’ Annual Report on Form 10-K for the year ended December 31, 2021. Certain items reported in previous periods have been reclassified to conform to the current period’s presentation.
(2) Significant Accounting Policies
For a listing of Federated Hermes’ significant accounting policies, please refer to Federated Hermes’ Annual Report on Form 10-K for the year ended December 31, 2021.
(3) Business Combination and Equity Acquisition
Effective October 1, 2022, Federated Hermes completed the acquisition of substantially all of the assets of C.W. Henderson and Associates, Inc. (CWH), a Chicago-based registered investment advisor specializing in the management of tax-exempt municipal securities (CWH Acquisition). This acquisition will enhance Federated Hermes’ existing separately managed accounts business. An initial closing purchase price of $28.0 million was paid on September 30, 2022 and was recorded in Other Current Assets on the Consolidated Balance Sheets. The purchase agreement provides for a series of contingent purchase price payments, which can total as much as $17.6 million in the aggregate and can become payable annually over the next five years based on certain levels of net revenue growth. Due to the timing of the CWH Acquisition, the information necessary to complete the preliminary purchase price allocation is not yet available. Federated Hermes expects to disclose the preliminary purchase price allocation in its Annual Report on Form 10-K for the year ended December 31, 2022.
On March 14, 2022, Federated Hermes completed a tender offer resulting in the acquisition of the remaining approximate 10% noncontrolling interests in Federated Hermes Limited (FHL, formerly known as Hermes Fund Managers Limited) from a trustee of a non-U.S. domiciled employee benefit trust established for the benefit of certain members of FHL’s management, a non-U.S. resident former FHL employee and other non-U.S. resident key FHL employees under a long-term incentive plan established in connection with the 2018 acquisition of FHL (2022 Acquisition of FHL Noncontrolling Interests). Pursuant to the 2022 Acquisition of FHL Noncontrolling Interests, FHL became a 100% indirect, wholly-owned subsidiary of Federated Hermes.
The 2022 Acquisition of FHL Noncontrolling Interests was transacted in shares whereby Federated Hermes issued awards of restricted Class B common stock under Federated Hermes Stock Incentive Plan and Federated Hermes UK Sub-Plan, as amended, and treasury Class B common stock, in exchange for the beneficial interests in shares of FHL. The FHL shares were exchanged at fair value for Federated Hermes shares valued at £36.4 million or $47.5 million, which was based on a third-party valuation of FHL. See Note (12) for additional information regarding the share exchange.
9

Notes to the Consolidated Financial Statements
(unaudited)
(4) Revenue from Contracts with Customers
The following table presents Federated Hermes’ revenue disaggregated by asset class:
Three Months EndedNine Months Ended
September 30,September 30,
(in thousands)2022202120222021
Equity$127,183 $172,349 $406,642 $510,302 
Money market170,542 55,726 402,639 185,704 
Fixed-income49,197 60,622 159,025 175,115 
Other1
34,221 37,892 103,609 107,681 
Total Revenue$381,143 $326,589 $1,071,915 $978,802 
1    Primarily includes Alternative / Private Markets (including but not limited to private equity, real estate and infrastructure), multi-asset and stewardship services revenue.
The following table presents Federated Hermes’ revenue disaggregated by performance obligation:
Three Months EndedNine Months Ended
September 30,September 30,
(in thousands)2022202120222021
Asset Management1
$263,644 $230,210 $754,681 $692,188 
Administrative Services75,021