Related Party Transactions

3 Months Ended

Feb. 28, 2013

Related Party Transactions

Note 24. Related Party Transactions

Jefferies Capital Partners and JEP IV Related Funds. We have loans to and/or equity investments in private equity funds and in Jefferies Capital Partners, LLC, the manager to the Jefferies Capital Partners 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, 2013 and November 30, 2012, loans to and/or equity investments in Private Equity Related Funds were $102.7 million and $104.2 million, respectively. Interest income earned on loans to Private Equity Related Funds was $0.5 million and $0.8 million for the three months ended February 28, 2013 and February 29, 2012, respectively. Other revenues and investment income related to net gains and losses on our investment in Private Equity Related Funds was a $0.9 million gain and a $4.8 million loss for the three months ended February 28, 2013 and February 29, 2012, respectively. For further information regarding our commitments and funded amounts to Private Equity Related Funds, see Note 21, Commitments, Contingencies and Guarantees.

Berkadia Commercial Mortgage, LLC. At February 28, 2013, we have commitments to purchase $171.4 million in agency commercial mortgage-backed securities from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

Officers, Directors and Employees. At February 28, 2013 and November 30, 2012, we had $41.3 million and $46.5 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.

Leucadia. During the three months ended February 28, 2013 and February 29, 2012, we received commissions and commission equivalents for conducting brokerage services on behalf of Leucadia and its affiliates of $5,000 and $8.3 million, respectively, recorded in Commission income on the Consolidated Statements of Earnings. During the three months ended February 28, 2013 and February 29, 2012, we distributed to Leucadia approximately $61,000 and $-0- million, respectively, related to earnings associated with their investment in our high yield joint venture.

For information on transactions with our equity method investees, see Note 11, Investments.