Investments

6 Months Ended

May 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Investments

Note 11. InvestmentsInvestments for which we exercise significant influence over the

investee are accounted for under the equity method of

accounting with our shares of the investees’ earnings recognized

in Other revenues. Equity method investments, including any

loans to the investees, are reported within Investments in and

loans to related parties.


$ in millions	May 31, 2025	November 30, 2024
Total Investments in and loans to related parties ........................................................	$1,436.6	$1,385.7


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Total equity method pickup earnings recognized in Other revenues ...................................	$8.1	$28.5	$15.2	$37.2

The following presents summarized financial information about

our significant equity method investees. For certain investees, we

receive financial information on a lag and the summarized

information provided for these investees is based on the latest

financial information available as of May 31, 2025, November 30,

2024 and May 31, 2024.

Jefferies Finance

Jefferies Finance, our 50/50 joint venture with Massachusetts

Mutual Life Insurance Company (“MassMutual”) structures,

underwrites and syndicates primarily senior secured loans to

corporate borrowers; and manages proprietary and third-party

investments in both broadly syndicated and direct lending loans.

In connection with its Leveraged Finance business, loans are

originated primarily through our investment banking efforts and

Jefferies Finance typically syndicates to third-party investors

substantially all of its arranged volume through us. The Asset

Management business is a multi-strategy private credit platform

that manages proprietary and third-party capital across

commingled funds, funds-of-one, separately managed accounts,

business development companies, CLOs and levered balance

sheet funds. Broadly syndicated loan investments are sourced

through transactions arranged by Jefferies Finance and third-

party arrangers and managed through its subsidiary, Apex Credit

Partners LLC. Direct lending investments are primarily sourced

through us. Jefferies Finance and its subsidiaries that are

involved in investment management are registered investment

advisers with the SEC.

At May 31, 2025, we and MassMutual each had equity

commitments to Jefferies Finance of $750.0 million, for a

combined total commitment of $1.5 billion. The equity

commitment is reduced quarterly based on our share of any

undistributed earnings from Jefferies Finance and the

commitment is increased only to the extent the share of such

earnings are distributed. At May 31, 2025, our unfunded

commitment to Jefferies Finance was $15.4 million. The

investment commitment is scheduled to expire on March 1, 2026

with automatic one year extensions absent a 60 day termination

notice by either party.

Jefferies Finance has executed a Secured Revolving Credit

Facility with us and MassMutual, to be funded equally, to support

loan underwritings by Jefferies Finance, which bears interest

based on the interest rates of the related Jefferies Finance

underwritten loans and is secured by the underlying loans funded

by the proceeds of the facility. The total Secured Revolving Credit

Facility is a committed amount of $500.0 million at May 31, 2025.

Advances are shared equally between us and MassMutual. The

facility is scheduled to mature on March 1, 2026 with automatic

one year extensions absent a 60 day termination notice by either

party. At May 31, 2025, our $250.0 million commitment was

undrawn.

Activity related to the facility:


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Unfunded commitment fees .........	$0.3	$0.3	0.6	0.6

Selected financial information for Jefferies Finance:


$ in millions	May 31, 2025	November 30, 2024
Total assets ....................................................	$6,073.6	$5,762.6
Total liabilities ................................................	4,732.8	4,415.6
Total mezzanine equity .................................	13.9	14.4


$ in millions	May 31, 2025	November 30, 2024
Our total investment balance .......................	$663.5	$666.3


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Net earnings (losses) attributable to members ..........	$0.1	$40.2	$(1.6)	$39.3

Activity related to our other transactions with Jefferies Finance:


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Origination and syndication fee revenues (1) ............................	$58.4	$74.9	$118.6	$127.3
Origination fee expenses (1) .....	13.9	9.7	32.4	24.6
CLO placement and structuring fee revenues (2) ....................	1.3	0.3	1.5	0.3
Placement and referral fees (3)	9.4	0.4	10.0	0.9
Asset management fee revenues (4) .............................	7.5	—	7.5	—
Service fee revenues (5) .............	22.7	20.8	77.1	65.7

(1)We engage in the origination and syndication of loans underwritten by

Jefferies Finance. In connection with such services, we earned fees, which are

recognized in Investment banking revenues. In addition, we paid fees to

Jefferies Finance in respect of certain loans originated by Jefferies Finance,

which are recognized as Business development expenses.

(2)We act as a placement and/or structuring agent for CLOs managed by

Jefferies Finance, for which we recognized fees and are included in

Investment banking revenues.

(3)We receive fees from Jefferies Finance, which are recognized in Commissions

and other fees, in connection with placement and referral activities.

(4)Under a fee and revenue sharing agreement with Jefferies Finance, we receive

fees which are included in Asset management fees and revenues.

(5)Under a service agreement, we charge Jefferies Finance for various

administrative services provided.

In connection with non-U.S. dollar loans originated by Jefferies

Finance to borrowers who are investment banking clients of ours,

we have entered into an agreement to indemnify Jefferies

Finance with respect to any foreign currency exposure.

Receivables from Jefferies Finance, included in Other assets,

were $0.3 million and $1.9 million at May 31, 2025 and

November 30, 2024, respectively, and payables to Jefferies

Finance, included in Accrued expenses and other liabilities, were

$0.7 million at May 31, 2025. Additionally, a payable to Jefferies

Finance, related to cash deposited with us and included in

Payables to customers, was $1.0 million and $13.7 million at

May 31, 2025 and November 30, 2024, respectively.

Berkadia

Berkadia is a commercial real estate finance and investment

sales joint venture that was formed by us and Berkshire

Hathaway Inc. We are entitled to receive 45.0% of the profits of

Berkadia. Berkadia originates commercial and multifamily real

estate loans that are sold to U.S. government agencies or other

investors with Berkadia retaining the servicing rights. Berkadia

also provides advisory services in connection with sales of

multifamily assets. Berkadia is a servicer of commercial real

estate loans in the U.S., performing primary, master and special

servicing functions for U.S. government agency programs and

financial services companies.

Commercial paper issued by Berkadia is supported by a

$1.50 billion surety policy issued by a Berkshire Hathaway

insurance subsidiary and corporate guaranty, and we have

agreed to reimburse Berkshire Hathaway for one-half of any

losses incurred thereunder. At May 31, 2025, the aggregate

amount of commercial paper outstanding was $1.47 billion.

Selected financial information for Berkadia:


$ in millions	May 31, 2025	November 30, 2024
Total assets ...................................................	$4,914.9	$4,963.2
Total liabilities ...............................................	3,557.0	3,515.6
Total noncontrolling interest .......................	391.8	502.1


$ in millions	May 31, 2025	November 30, 2024
Our total investment balance .......................	$437.7	$427.7


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Net earnings attributable to members ....................................	$44.2	$48.9	$82.0	$78.2


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Distributions ....................................	$10.9	$2.9	$27.0	$6.7

At May 31, 2025 and November 30, 2024, we had commitments

to purchase $17.4 million and $21.8 million, respectively, of

agency CMBS from Berkadia.

Revenues from other transactions with Berkadia for the six

months ended May 31, 2025 were $0.1 million. Revenues and

expenses from other transactions with Berkadia for both the

three and six months ended May 31, 2024 were $0.3 million and

$0.4 million, respectively.

Real Estate Investments

Our real estate equity method investments primarily consist of

our equity interests in Brooklyn Renaissance Plaza and Hotel and

54 Madison. Brooklyn Renaissance Plaza is composed of a hotel,

office building complex and parking garage located in Brooklyn,

New York. We have a 25.4% equity interest in the hotel and a

61.3% equity interest in the office building and garage. Although

we have a majority interest in the office building and garage, we

do not have control, but only have the ability to exercise

significant influence on this investment. We are amortizing our

basis difference between the estimated fair value and the

underlying book value of Brooklyn Renaissance office building

and garage over the respective useful lives (weighted average life

of 39 years).

We own a 48.1% equity interest in 54 Madison, a fund that most

recently owned an interest in one real estate project and the fund

is in the process of being liquidated.

Selected financial information for our significant real estate

investments:


$ in millions	May 31, 2025	November 30, 2024
Total assets ....................................................	$316.2	$326.0
Total liabilities ................................................	476.5	484.7

	May 31, 2025	November 30, 2024
Our total investment balance .......................	$98.0	$97.8


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Net earnings (losses) ....................	$(3.3)	$(2.4)	$1.3	$0.1


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Distributions we received from Brooklyn Renaissance Office .......................................	$1.2	$—	$1.2	$—

JCP Fund V

We have limited partnership interests of 11% and 50% in Jefferies

Capital Partners V L.P. and Jefferies SBI USA Fund L.P. (together,

“JCP Fund V”), respectively, which are private equity funds

managed by a team led by our President and which are in the

process of being fully liquidated. The amount of our investments

in JCP Fund V included in Financial instruments owned, at fair

value was $2.7 million and $2.9 million at May 31, 2025 and

November 30, 2024, respectively. We account for these

investments at fair value based on the NAV of the funds provided

by the fund managers. The following summarizes the results

from these investments which are included in Principal

transactions revenues:


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Net gains (losses) from our investments in JCP Fund V .....	$—	$0.1	$(0.2)	$(0.2)

At both May 31, 2025 and November 30, 2024, we were

committed to invest equity of up to $85.0 million in JCP Fund V.

At both May 31, 2025 and November 30, 2024, our unfunded

commitment relating to JCP Fund V was $8.7 million. We do not

expect any further capital to be called by JCP Fund V.

The following is a summary of the Net change in net assets

resulting from operations for 100.0% of JCP Fund V, in which we

owned effectively 35.1% at May 31, 2025 of the combined equity

interests:


	Three Months Ended
$ in millions	March 31, 2025	December 31, 2024	March 31, 2024	December 31, 2023
Net increase (decrease) in net assets resulting from operations (1) .....	$0.1	$(0.6)	$0.1	$(0.9)

(1)Financial information for JCP Fund V within our results of operations for the

three months and six months ended May 31, 2025 and 2024 is included based

on the periods presented.

Hildene

In July 2024, we invested $25.0 million in the Class A Common

Equity Units of Hildene Insurance Holdings, LLC (“Hildene

Insurance”), an investment fund with insurance exposures. On

March 1, 2025, we made an additional investment of

$75.0 million in Hildene Insurance, which resulted in an increase

of our effective ownership from 8.83% to 23.5%. The investment

is accounted for under the equity method with a carrying amount

of $104.2 million and $27.5 million at May 31, 2025 and

November 30, 2024, respectively.

Selected financial information for Hildene Insurance:


$ in millions	March 31, 2025 (1)	September 30, 2024 (1)
Total assets ...............................................................	$447.9	$304.2
Total liabilities ...........................................................	0.1	0.2
Total members’ equity .............................................	447.8	304.0


	Three Months Ended (1)
$ in millions	March 31, 2025	December 31, 2024
Net increase in members’ equity resulting from operations ................................................................	$27.5	$8.4

(1)Financial information for Hildene Insurance Holdings, LLC included in our

financial position at May 31, 2025 and November 30, 2024 is based on the

dates presented, and in our results of operations for the three and six months

ended May 31, 2025 is based on the periods presented.

ApiJect

We own shares that represent a 33.6% economic interest in

ApiJect at both May 31, 2025 and at November 30, 2024, which

are accounted for at fair value by electing the fair value option

available under U.S. GAAP, and are included within corporate

equity securities in Financial instruments owned, at fair value. At

both May 31, 2025 and November 30, 2024, the total fair value of

our total equity investment in common shares of ApiJect was

$116.1 million, which is classified within Level 3 of the fair value

hierarchy.

Additionally, we own warrants to purchase up to 950,000 shares

of common stock at any time or from time to time on or before

April 15, 2032, and we have a right to 1.125% of ApiJect’s future

revenues.

We also have a term loan agreement with a principal of ApiJect

for $23.3 million, which will mature on July 31, 2025. The loan is

accounted for at amortized cost and is reported within Other

assets. The loan has a fair value of $23.3 million at both May 31,

2025 and November 30, 2024, which would be classified as Level

3 in the fair value hierarchy.

Aircadia

In December 2023, Aircadia Leasing II LLC (“Aircadia”), a wholly

owned subsidiary, purchased airplanes and simultaneously

entered into a lease with the seller to lease the airplanes for a

term of 42 months. The transaction was accounted for as a sale

leaseback and the airplanes were recorded within Premises and

equipment at $57.7 million.


	Three Months Ended May 31,		Six Months Ended May 31,
$ in millions	2025	2024	2025	2024
Operating lease income ................	$1.3	$5.6	$6.9	$9.4

Also in December 2023, we provided a loan to the seller for

$30.0 million, which was paid off on April 1, 2025. The loan was

accounted for at amortized cost and included within Investments

in and loans to related parties. We recognized interest income of

$0.2 million and $1.0 million on the loan during the three months

and six months ended May 31, 2025, respectively, and

$0.8 million and $1.4 million during the three months and six

months ended May 31, 2024, respectively. We also hold preferred

shares in the seller, which are accounted for at fair value in

Financial instruments owned with a fair value of $41.8 million

and $37.1 million at May 31, 2025 and November 30, 2024,

respectively, and are classified within Level 3 of the fair value

hierarchy.

In September 2024, we provided a €15.0 million loan, maturing in

November 2025, to an individual related to the seller, secured by

a privately owned aircraft and guaranteed by the individual. We

recognized interest income of $0.5 million and $0.9 million for

the three months and six months ended May 31, 2025,

respectively.

During 2024, we classified the airplanes related to the sale

leaseback transaction as held for sale. Effective with the

designation of the airplanes as held for sale, we suspended

recording depreciation on these assets. The airplanes are

included within Assets held for sale on our Consolidated

Statements of Financial Condition and had a carrying amount of

$51.9 million at November 30, 2024. During the second quarter of

2025, we agreed to sell the airplanes and we recognized a loss of

$12.8 million during the three months ended May 31, 2025. The

sale is expected to close in the third quarter of 2025.