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Related Party Transactions
 9 Months Ended
Aug. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Officers, Directors and Employees
•At August 31, 2024 and November 30, 2023, we had $31.8 million and $31.0 million, respectively, of loans, net of allowance, outstanding to certain of our officers and employees (none of whom are executive officers or directors) that are included in Other assets.
•Receivables from and payables to customers include balances arising from officers’, directors’ and employees’ individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms.
•One of our directors has investments in hedge funds managed by us of approximately $3.9 million and $3.0 million at August 31, 2024 and November 30, 2023, respectively.
Vitesse Energy
On January 13, 2023, our consolidated subsidiary, Vitesse Energy, issued shares measured at a total consideration of $30.6 million in exchange for acquiring all of the outstanding capital interests of Vitesse Oil, which was controlled by JCP Fund V. We provided investment banking services to Vitesse Energy and recognized revenue of $3.0 million for the nine months ended August 31, 2023, included within Investment banking revenues.
SMBC
We have a strategic alliance with Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation (“SMBC”) and SMBC Nikko Securities Inc. (together referred to as “SMBC Group”) to collaborate on corporate and investment banking business opportunities as well as equity sales, trading and research. At August 31, 2024, SMBC owns 11.8% of our common stock on an as-converted basis and 10.9% on a fully-diluted basis and an executive officer of SMBC serves on our Board of Directors. On September 19, 2024, SMBC purchased 9.2 million shares of our common stock.
The following tables summarize balances with SMBC as reported in our Consolidated Statements of Financial Condition and Consolidated Statements of Earnings. In addition, the synergies and value creation resulting from our strategic alliance with SMBC generate additive benefits for us, which are not necessarily reflected by the activity presented in the following tables.
$ in thousandsAugust 31, 2024
Assets
Cash and cash equivalents$521,701 
Financial instruments owned, at fair value9,607 
Securities borrowed15,357 
Securities purchased under agreements to resell431,802 
Receivables:
Brokers, dealers and clearing organizations121,618 
Customers4,163 
Fees, interest and other3,022 
Other assets269 
Total assets$1,107,539 
Liabilities
Financial instruments sold, not yet purchased, at fair value$14,983 
Securities sold under agreements to repurchase538,239 
Payables:
Brokers, dealers and clearing organizations 130,852 
Customers 4,891 
Fees, interest and other326 
Long-term debt (1)— 
Total liabilities$689,291 
(1)We have an undrawn revolving credit facility of $750.0 million. Interest on this credit facility is based on an adjusted SOFR plus a spread.
$ in thousandsNine Months Ended
August 31, 2024 (1)
Revenues
Investment banking$455 
Principal transactions (2)(38,301)
Commissions and other fees180 
Interest4,116 
Total revenues(33,550)
Interest expense2,411 
Net revenues$(35,961)
Non-interest expenses
Business development$4,570 
Total non-interest expenses$4,570 
(1)Amounts reflect activity beginning from the date SMBC became a related party on August 12, 2024.
(2)Primarily represents net gains (losses) on interest rate derivatives executed with SMBC.
Other Related Party Transactions
We have other related party transactions with equity method investees. Refer to Note 11, Investments for further information.