Related Party Transactions

3 Months Ended

Feb. 28, 2017

Jefferies Capital Partners Related Funds. We have equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee (“Private Equity Related Funds”). At February 28, 2017 and November 30, 2016, our equity investments in Private Equity Related Funds were in aggregate $36.7 million and $37.7 million, respectively. We also charge the JCP Manager for certain services under a service agreement. The following table presents other revenues and investment income (loss) related to net gains and losses on our investment in Private Equity Related Funds and service charges (in thousands):



	Three Months Ended
	February 28, 2017			February 29, 2016
Other revenues and investment income (loss)	$	(1,298	)	$	(2,648	)
Service charges	125			129

For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Note 16, Commitments, Contingencies and Guarantees.

Berkadia Commercial Mortgage, LLC. At February 28, 2017 and November 30, 2016, we have commitments to purchase $654.2 million and $817.0 million, respectively, in agency CMBS from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

Officers, Directors and Employees. At February 28, 2017 and November 30, 2016, we had $37.5 million and $38.4 million, respectively, of loans outstanding to certain of our employees (none of whom are executive officers or directors) that are included in Other assets on the Consolidated Statements of Financial Condition. 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. At February 28, 2017 and November 30, 2016, we have provided a guarantee of a credit agreement for a private equity fund owned by our employees. See Note 8, Variable Interest Entities, and Note 16, Commitments, Contingencies and Guarantees, for further information.

Leucadia. The following is a description of related party transactions with Leucadia:

•

Under a service agreement, we charge Leucadia for certain services, which amounted to $6.1 million and $7.6 million for the three months ended February 28, 2017 and February 29, 2016, respectively. At February 28, 2017 and November 30, 2016, we had a receivable from Leucadia of $1.6 million and $2.8 million, respectively, which is included within Other assets on the Consolidated Statements of Financial Condition. At February 28, 2017 and November 30, 2016, we had a payable to Leucadia of $2.6 million and $1.9 million, respectively, related to certain services provided by Leucadia, which is included within Accrued Expenses and other liabilities on the Consolidated Statements of Financial Condition.


•	Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities. At February 28, 2017 and November 30, 2016, a net current tax receivable from Leucadia of $155.4 million and $80.1 million, respectively, is included in Other assets on the Consolidated Statements of Financial Condition.


•	In December 2016, we made a capital redemption of $17.0 million from a hedge fund managed by a subsidiary of Leucadia.


•	We received $0.1 million of asset management fees for the three months ended February 29, 2016 for services provided to Leucadia and its affiliates.


•	On February 24, 2017, we sold securities to Leucadia at a fair value of $25.6 million for cash. There was no gain or loss on the transaction.

•

In connection with our sales and trading activities, from time to time, we make a market in long-term debt securities of Leucadia (i.e., we buy and sell debt securities issued by Leucadia). At February 28, 2017 and November 30, 2016, approximately $1.8 million and $1.0 million, respectively, of debt securities issued by Leucadia are included in Financial instruments owned on the Consolidated Statements of Financial Condition.

For information on transactions with our equity method investees, see Note 9, Investments.