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Related Party Transactions
 12 Months Ended
Nov. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Note 24. Related Party Transactions
Officers, Directors and Employees
The following sets forth information regarding related party
transactions with our officers, directors and employees:
•At November 30, 2024 and 2023, we had $29.4 million and
$31.8 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 $5.0 million and $3.0 million at
November 30, 2024 and 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 year ended November 30, 2023,
included within Investment banking revenues. Refer to Note 1,
Organization and Basis of Presentation for additional details
related to the Vitesse Energy distribution.
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.
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 thousands
November 30, 2024
Assets
Cash and cash equivalents .......................................................
$542,212
Financial instruments owned, at fair value .............................
1,539
Securities borrowed ...................................................................
20,403
Securities purchased under agreements to resell .................
381,568
Receivables:
Brokers, dealers and clearing organizations .......................
3,012
Fees, interest and other ..........................................................
7,851
Other assets ................................................................................
175
Total assets .................................................................................
$956,760
Liabilities
Financial instruments sold, not yet purchased, at fair value
$1,830
Securities loaned
187
Securities sold under agreements to repurchase ..................
631,390
Payables:
Brokers, dealers and clearing organizations ......................
18,701
Accrued expenses and other liabilities ....................................
6,767
Long-term debt (1) ......................................................................
—
Total liabilities ............................................................................
$658,875
(1)We have an undrawn revolving credit facility of $350.0 million. Interest on this
credit facility is based on an adjusted SOFR plus a spread.
$ in thousands
Year Ended
November 30, 2024 (1)
Revenues
Investment banking ................................................................
$5,066
Principal transactions (2) ......................................................
(5,997)
Commissions and other fees ................................................
895
Interest .....................................................................................
14,203
Total revenues ........................................................................
14,167
Interest expense ......................................................................
13,238
Net revenues ...........................................................................
$929
Non-interest expenses
Business development ...........................................................
$7,274
Total non-interest expenses ................................................
$7,274
(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.