Investments

3 Months Ended

Feb. 28, 2026

Equity Method Investments and Joint Ventures [Abstract]

Investments

Note 10. 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	February 28, 2026	November 30, 2025
Total Investments in and loans to related parties ........................................................	$1,560.6	$1,496.1

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 February 28, 2026 and 2025.


	Three Months Ended February 28,
$ in millions	2026	2025
Total equity method pickup earnings recognized in Other revenues .................	$24.5	$7.1

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 February 28, 2026, 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 February 28, 2026, our unfunded

commitment to Jefferies Finance was $15.4 million. The

investment commitment is scheduled to expire on March 1, 2027

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 facility is a committed amount

of $500.0 million at February 28, 2026. Advances are shared

equally between us and MassMutual. The facility is scheduled to

mature on March 1, 2027 with automatic one year extensions

absent a 60 day termination notice by either party. At

February 28, 2026, our $250.0 million commitment was undrawn.

Activity related to the facility:


	Three Months Ended February 28,
$ in millions	2026	2025
Unfunded commitment fees ........................	$0.3	$0.3

Selected financial information for Jefferies Finance:


$ in millions	February 28, 2026	November 30, 2025
Total assets ....................................................	$6,903.7	$7,356.1
Total liabilities ................................................	5,467.6	5,959.2
Total mezzanine equity .................................	14.9	14.8


$ in millions	February 28, 2026	November 30, 2025
Our total investment balance .......................	$710.6	$691.0


	Three Months Ended February 28,
$ in millions	2026	2025
Net earnings (losses) attributable to members ....................................................	$33.1	$(1.7)

Activity related to our other transactions with Jefferies Finance:


	Three Months Ended February 28,
$ in millions	2026	2025
Origination and syndication fee revenues (1) ...............................................................	$53.1	$60.2
Origination fee expenses (1) ........................	18.6	18.5
CLO placement and structuring fee revenues (2) .............................................	1.0	0.2
Placement and referral fees (3) ...................	6.3	0.6
Underwriting revenues (expenses) (4) .......	(1.0)	—
Service fees (5) ..............................................	65.6	54.4

(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, which are recognized as fees and included in Investment

banking revenues.

(3)We act as a placement agent for investment funds managed by Jefferies

Finance, which are recognized as fees and included in Commissions and other

fees.

(4)We act as an underwriter in connection with term loans issued by Jefferies

Finance.

(5)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	February 28, 2026	November 30, 2025
Assets
Financial instruments owned, at fair value (1) .....................................................................	$2.6	$10.9
Other assets (2) .............................................	17.0	7.0
Liabilities
Financial instruments sold, not yet purchased, at fair value (1) (3) ...............	$7.5	$0.4
Payables:
Brokers, dealers and clearing organizations (4) ......................................	16.8	17.2
Customers (5) ...........................................	4.8	3.3

(1)In connection with our capital markets activities, from time to time we make a

market in long-term debt securities and term loans of Jefferies Finance (i.e.,

we buy and sell debt securities and tern loans of Jefferies Finance).

(2)Receivable for services and certain fees from Jefferies Finance.

(3)Includes OTC foreign currency derivatives.

(4)Cash collateral received from Jefferies Finance on OTC foreign currency

derivatives.

(5)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

February 28, 2026, the aggregate amount of commercial paper

outstanding was $1.47 billion.

Selected financial information for Berkadia:


$ in millions	February 28, 2026	November 30, 2025
Total assets ...................................................	$5,146.4	$5,269.8
Total liabilities ...............................................	3,686.4	3,953.1
Total noncontrolling interest .......................	521.0	369.0


$ in millions	February 28, 2026	November 30, 2025
Our total investment balance .......................	$426.6	$429.7


	Three Months Ended February 28,
$ in millions	2026	2025
Net earnings attributable to members .......	$40.5	$37.8


	Three Months Ended February 28,
$ in millions	2026	2025
Distributions ...................................................	$21.2	$16.1

At February 28, 2026 and November 30, 2025, we had

commitments to purchase $13.4 million and $13.6 million,

respectively, of agency CMBS from Berkadia.

Revenues from other transactions with Berkadia for the three

months ended February 28, 2026 and 2025 were $0.0 million and

$0.1 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 the real estate investments:


$ in millions	February 28, 2026	November 30, 2025
Total assets ....................................................	$309.4	$312.6
Total liabilities ................................................	463.7	470.7

	February 28, 2026	November 30, 2025
Our total investment balance .......................	$99.5	$98.7


	Three Months Ended February 28,
$ in millions	2026	2025
Net earnings ...................................................	$3.8	$4.6

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 $2.8 million at both February 28, 2026 and

November 30, 2025. 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 February 28,
$ in millions	2026	2025
Net gains (losses) from our investments in JCP Fund V ............................................	$—	$(0.2)

At both February 28, 2026 and November 30, 2025, we were

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

At both February 28, 2026 and November 30, 2025, 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 February 28, 2026 of the combined

equity interests:


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

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

three months ended February 28, 2026 and 2025 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 $117.1 million and $113.8 million at February 28, 2026 and

November 30, 2025, respectively.

Selected financial information for Hildene Insurance:


$ in millions	December 31, 2025 (1)	September 30, 2025 (1)
Total assets ...............................................................	$564.6	$498.4
Total liabilities ...........................................................	20.1	0.7
Total members’ equity .............................................	544.5	497.7


Three Months Ended (1)
$ in millions	December 31, 2025	December 31, 2024
Net increase in members’ equity resulting from operations .............................................................	$16.6	$8.4

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

financial position at February 28, 2026 and November 30, 2025 is based on

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

ended February 28, 2026 and 2025 is based on the periods presented.

On December 9, 2025, we entered into an agreement to acquire a

50% interest in Hildene Holding Company, LLC, parent of Hildene

Capital Management, LLC, a credit-focused asset manager and

the parent of Hildene Insurance. We will contribute our existing

revenue share, a portion of our interest in a Hildene-managed

fund, and $340.0 million in cash. Hildene’s principals will

contribute their ownership interests and approximately

$250.0 million of the fund and related equity interests. Closing is

expected in the third quarter of 2026, subject to customary

approvals.

ApiJect

We own shares that represent a 37.9% and 33.6% economic

interest in ApiJect at February 28, 2026 and November 30, 2025,

respectively, 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 February 28, 2026 and November 30, 2025,

the total fair value of our total equity investment in common

shares of ApiJect was $97.9 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.

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

for $23.3 million, which matures on April 30, 2026. 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

February 28, 2026 and November 30, 2025, which would be

classified as Level 3 in the fair value hierarchy.

In December 2025, we purchased two secured convertible

promissory notes totaling $9.8 million from ApiJect. These

promissory notes are accounted for at fair value in Financial

instruments owned and classified within Level 3 of 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. During

the third quarter of 2025, we sold the airplanes.


	Three Months Ended February 28,
$ in millions	2026	2025
Operating lease income ................................	$—	$5.6

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

$0.0 million and $0.7 million on the loan during the three months

ended February 28, 2026 and 2025, 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 $43.2

million at both February 28, 2026 and November 30, 2025, and

are classified within Level 3 of the fair value hierarchy.

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

May 15, 2026, 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 for both the three

months ended February 28, 2026 and 2025.