Investments (Tables)

6 Months Ended

May 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Summary of Selected Financial Information

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% of the combined equity interests (in thousands):

	Three Months Ended
	March 31, 2019 (1)			December 31, 2018 (1)			March 31, 2018 (1)		December 31, 2017 (1)
Net increase (decrease) in net assets resulting from operations	$	(1,169	)	$	(8,412	)	$	8,463	$	19,712

(1)

Financial information for JCP Fund V within our results of operations for the three and six months ended May 31, 2019 and 2018 is included based on the presented periods.

The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions):

	Three Months Ended   May 31,				Six Months Ended   May 31,
	2019		2018		2019		2018
Interest income	$	—	$	0.4	$	—	$	1.2
Unfunded commitment fees	0.3		0.3		0.6		0.5

The following is a summary of selected financial information for Jefferies Finance (in millions):

	May 31, 2019		November 30, 2018
Our total equity balance	$	643.7	$	694.8

	Three Months Ended   May 31,				Six Months Ended   May 31,
	2019		2018		2019		2018
Net earnings	$	50.2	$	60.2	$	47.8	$	102.7

The following summarizes activity related to our other transactions with Jefferies Finance (in millions):

	Three Months Ended   May 31,					Six Months Ended   May 31,
	2019		2018			2019		2018
Origination and syndication fee revenues (1)	$	69.3	$	109.6		$	91.2	$	211.0
Origination fee expenses (1)	8.2		14.9			13.6		33.4
CLO placement fee revenues (2)	—		2.4			1.3		2.7
Derivative gains (losses) (3)	—		(0.3		)	—		(0.6		)
Underwriting fees (4)	1.0		—			1.0		0.3
Service fees (5)	11.2		8.9			38.3		35.0

(1) We engage in debt capital markets transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, we earned fees, which are recognized in Investment banking revenues in our Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses in our Consolidated Statements of Earnings.

(2) We act as a placement agent for CLOs managed by Jefferies Finance, for which we recognized fees, which are included in Investment banking revenues in our Consolidated Statements of Earnings. At May 31, 2019 and November 30, 2018, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value.

(3) We have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO and we have recognized gains (losses) relating to the derivative contracts.

(4) We acted as underwriter in connection with term loans issued by Jefferies Finance.

(5)

Under a service agreement, we charge Jefferies Finance for services provided.

The following is a summary of selected financial information for Berkadia (in millions):

	May 31, 2019		November 30, 2018
Our total equity balance	$	275.6	$	245.2

	Three Months Ended   May 31, 2019		Six Months Ended   May 31, 2019
Net earnings	$	56.2	$	106.5

The following summarizes the results from these investments which are included in Principal transactions revenues in our Consolidated Statements of Earnings (in millions):

	Three Months Ended   May 31,				Six Months Ended   May 31,
	2019		2018		2019		2018
Net gains from our investments in JCP Fund V	$	3.8	$	3.0	$	0.6	$	9.8