Investments

9 Months Ended

Aug. 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	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.