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Investments | 9 Months Ended
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Aug. 31, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Investments | Note 11. Investments Investments 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 | August 31, 2025 | November 30, 2024
Total Investments in and loans to related parties ........................................................ | $1,458.3 | $1,385.7
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Total equity method pickup earnings recognized in Other revenues ................................... | $39.1 | $25.0 | $54.3 | $62.2
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 August 31, 2025, November 30, 2024 and August 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 August 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 August 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 August 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 August 31, 2025, our $250.0 million commitment was undrawn. Activity related to the facility:
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Unfunded commitment fees ......... | $0.3 | $0.3 | $0.9 | $0.9
Selected financial information for Jefferies Finance:
$ in millions | August 31, 2025 | November 30, 2024
Total assets .................................................... | $7,239.5 | $5,762.6
Total liabilities ................................................ | 5,867.5 | 4,415.6
Total mezzanine equity ................................. | 14.3 | 14.4
$ in millions | August 31, 2025 | November 30, 2024
Our total investment balance ....................... | $678.8 | $666.3
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Net earnings attributable to members .................................... | $27.0 | $28.8 | $25.4 | $68.1
Activity related to our other transactions with Jefferies Finance:
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Origination and syndication fee revenues (1) ............................ | $73.3 | $72.9 | $191.9 | $200.2
Origination fee expenses (1) ..... | 18.3 | 16.2 | 50.7 | 40.8
CLO placement and structuring fee revenues (2) .................... | 0.8 | 0.8 | 2.3 | 1.1
Placement and referral fees (3) | 6.1 | 2.4 | 16.1 | 3.3
Asset management fee revenues (4) ............................. | — | — | 7.5 | —
Underwriting fees (5) .................. | 0.5 | — | 0.5 | —
Service fee revenues (6) ............. | 24.0 | 15.3 | 101.0 | 81.0
(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)We act as an underwriter in connection with term loans issued by Jefferies Finance. (6)Under a service agreement, we charge Jefferies Finance for various administrative services provided. Additional balances with Jefferies Finance as reported in our Consolidated Statements of Financial Condition.
$ in millions | August 31, 2025 | November 30, 2024
Assets |  |
Financial instruments owned, at fair value (1) ......... | $4.6 | $—
Other assets (2) ............................................................ | 5.3 | 1.9
Liabilities |  |
Financial instruments sold, not yet purchased, at fair value (1) ............................................................. | $0.4 | $—
Payables: |  |
Brokers, dealers and clearing organizations (3) . | 15.7 | —
Customers (4) .......................................................... | 2.2 | 13.7
(1)In connection with our capital markets activities, from time to time we make a market in long-term debt securities of Jefferies Finance (i.e., we buy and sell debt securities issued by Jefferies Finance). (2)Receivable from Jefferies Finance pending settlement. (3)Cash collateral, net, received from Jefferies Finance on OTC foreign currency trading. (4)Payable to Jefferies Finance in connection with loans originated by Jefferies Finance to borrowers who are investment banking clients of ours. We have also entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure on these loans. 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, for which we receive a surety fee, and a corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. At August 31, 2025, the aggregate amount of commercial paper outstanding was $1.47 billion. Selected financial information for Berkadia:
$ in millions | August 31, 2025 | November 30, 2024
Total assets ................................................... | $5,579.9 | $4,963.2
Total liabilities ............................................... | 4,247.2 | 3,515.6
Total noncontrolling interest ....................... | 390.5 | 502.1
$ in millions | August 31, 2025 | November 30, 2024
Our total investment balance ....................... | $427.1 | $427.7
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Net earnings attributable to members .................................... | $70.9 | $41.4 | $152.9 | $119.6
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Distributions .................................... | $42.3 | $28.0 | $69.3 | $34.7
At August 31, 2025 and November 30, 2024, we had commitments to purchase $13.7 million and $21.8 million, respectively, of agency CMBS from Berkadia. Revenues from other transactions with Berkadia for the nine months ending August 31, 2025 were $0.1 million. Revenues and expenses from other transactions with Berkadia for the nine months ended August 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 | August 31, 2025 | November 30, 2024
Total assets .................................................... | $313.4 | $326.0
Total liabilities ................................................ | 473.3 | 484.7
| August 31, 2025 | November 30, 2024
Our total investment balance ....................... | $98.2 | $97.8
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Net earnings (losses) .................... | $0.4 | $2.9 | $1.7 | $3.0
| Three Months Ended August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Distributions we received from Brooklyn Renaissance Office ....................................... | $— | $— | $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 $3.3 million and $2.9 million at August 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 August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Net gains (losses) from our investments in JCP Fund V ..... | $0.6 | $(0.1) | $0.4 | $(0.3)
At both August 31, 2025 and November 30, 2024, we were committed to invest equity of up to $85.0 million in JCP Fund V. At both August 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 August 31, 2025 of the combined equity interests:
| Three Months Ended
$ in millions | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023
Net increase (decrease) in net assets resulting from operations (1) | $1.7 | $0.1 | $(0.6) | $(0.3) | $0.1 | $(0.9)
(1)Financial information for JCP Fund V within our results of operations for the three and nine months ended August 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 $108.0 million and $27.5 million at August 31, 2025 and November 30, 2024, respectively. Selected financial information for Hildene Insurance:
$ in millions | June 30, 2025 (1) | September 30, 2024 (1)
Total assets ............................................................... | $466.3 | $304.2
Total liabilities ........................................................... | 0.7 | 0.2
Total members’ equity ............................................. | 465.6 | 304.0
| Three Months Ended (1)
$ in millions | June 30, 2025 | March 31, 2025 | December 31, 2024
Net increase in members’ equity resulting from operations .......................................................................... | $44.9 | $27.5 | $8.4
(1)Financial information for Hildene Insurance Holdings, LLC included in our financial position at August 31, 2025 and November 30, 2024 is based on the dates presented, and in our results of operations for the three and nine months ended August 31, 2025 is based on the periods presented. ApiJect We own shares that represent a 33.6% economic interest in ApiJect at both August 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 August 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 matures on October 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 August 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 from one of our clients 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 August 31, | Nine Months Ended August 31,
$ in millions | 2025 | 2024 | 2025 | 2024
Operating lease income ................ | $— | $5.6 | $6.9 | $15.0
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 $1.0 million on the loan during the nine months ended August 31, 2025, and $0.8 million and $2.2 million during the three and nine months ended August 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 $43.7 million and $37.1 million at August 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 $1.5 million for the three months and nine months ended August 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 were 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 closed in the third quarter of 2025.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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