Investments (Tables)

9 Months Ended

Aug. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Summary of Selected Financial Information related to Equity Method Investment

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

	August 31, 2020		November 30, 2019
Our total equity balance	$	273.2	$	268.9

	Three Months Ended   August 31,				Nine Months Ended   August 31,
	2020		2019		2020		2019
Net earnings	$	41.0	$	53.8	$	89.7	$	160.3

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   August 31,					Nine Months Ended   August 31,
	2020		2019			2020			2019
Net gains (losses) from our investments in JCP Fund V	$	2.0	$	(2.5	)	$	(3.5	)	$	(1.9	)

We received distributions from Berkadia on our equity interest as follows (in millions):

	Three Months Ended   August 31,				Nine Months Ended   August 31,
	2020		2019		2020		2019
Distributions	$	—	$	29.6	$	36.6	$	47.7

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

	Three Months Ended   August 31,				Nine Months Ended   August 31,
	2020		2019		2020		2019
Interest income	$	—	$	—	$	2.2	$	—
Unfunded commitment fees	0.4		0.3		0.8		0.9

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

	August 31, 2020		November 30, 2019
Our total equity balance	$	591.0	$	642.0

	Three Months Ended   August 31,						Nine Months Ended   August 31,
	2020			2019			2020			2019
Net earnings (loss)	$	(23.6	)	$	(16.3	)	$	(102.1	)	$	31.5

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

	Three Months Ended   August 31,				Nine Months Ended   August 31,
	2020		2019		2020		2019
Origination and syndication fee revenues (1)	$	42.4	$	44.6	$	123.9	$	135.8
Origination fee expenses (1)	3.8		8.2		12.4		21.8
CLO placement fee revenues (2)	1.3		1.0		1.7		2.3
Underwriting fees (3)	—		2.9		0.3		3.9
Service fees (4)	13.5		12.3		49.4		50.6

(1) We engage in debt underwriting 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 August 31, 2020 and November 30, 2019, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value.

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

(4)

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

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 35.2% of the combined equity interests (in thousands):

	Three Months Ended
	June 30, 2020		March 31, 2020			December 31, 2019			June 30, 2019			March 31, 2019			December 31, 2018
Net increase (decrease) in net assets resulting from operations (1)	$	6,233	$	(19,893	)	$	(1,397	)	$	(7,174	)	$	(1,169	)	$	(8,412	)

(1)

Financial information for JCP Fund V within our results of operations for the three and nine months ended August 31, 2020 and August 31, 2019 is included based on the presented periods.