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Investments
 9 Months Ended
Aug. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments Investments
Investments 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 millionsAugust 31,
2024		November 30,
2023
Total Investments in and loans to related parties$1,349.6 $1,239.3 
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Total equity method pickup earnings (losses) recognized in Other revenues$25.0 $(78.1)$62.2 $(229.9)
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 August 31, 2024, November 30, 2023 and August 31, 2023.
Jefferies Finance
Jefferies Finance, our 50/50 joint venture with Massachusetts Mutual Life Insurance Company (“MassMutual”), is a commercial finance company that 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, which includes direct lending activities, that manages proprietary and third-party capital across commingled funds, business development companies, separately managed accounts, CLOs and proprietary accounts. Broadly syndicated investments are sourced through transactions arranged by Jefferies Finance and third-party arrangers and managed through its subsidiary, Apex Credit Partners LLC. Jefferies Finance may also underwrite and arrange other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments.
At August 31, 2024, we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million, for a combined total commitment of $1.50 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 August 31, 2024, our remaining commitment to Jefferies Finance was $15.4 million. The investment commitment is scheduled to expire on March 1, 2025 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 Secured Revolving Credit Facility is a committed amount of $500.0 million at August 31, 2024. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2025 with automatic one year extensions absent a 60 day termination notice by either party. At August 31, 2024, we had funded $0.0 million of our $250.0 million commitment.
Activity related to the facility:
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Unfunded commitment fees$0.3 $0.3 $0.9 $0.9 
Selected financial information for Jefferies Finance:
$ in millionsAugust 31,
2024		November 30,
2023
Total assets$5,374.4 $5,598.2 
Total liabilities4,031.3 4,352.0 
August 31,
2024		November 30,
2023
Our total equity balance$664.2 $630.1 
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Net earnings (losses) attributable to members$28.8 $(31.5)$68.1 $(3.7)
Activity related to our other transactions with Jefferies Finance:
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Origination and syndication fee revenues (1)$72.9 $37.9 $200.2 $84.1 
Origination fee expenses (1)16.2 10.1 40.8 20.5 
CLO placement and structuring fee revenues (2) 0.8 1.7 1.1 1.7 
Investment fund placement fee revenues (3)2.4 — 3.3 — 
Service fees (4)15.3 20.1 81.0 81.2 
(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, for which we recognized fees and are included in Investment banking revenues.
(3)We act as a placement agent for investment funds managed by Jefferies Finance, for which we recognized fees and are included in Commissions and other fees.
(4)Under a service agreement, we charge Jefferies Finance for various administrative services provided.
In connection with non-U.S. dollar loans originated by Jefferies Finance to borrowers who are investment banking clients of ours, we have entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure.
Receivables from Jefferies Finance, included in Other assets, were $2.6 million and $3.5 million at August 31, 2024 and November 30, 2023, respectively. At August 31, 2024 and November 30, 2023, payables to Jefferies Finance, related to cash deposited with us and included in Payables to customers, were $3.8 million and $2.6 million, respectively.










Berkadia
Berkadia is a commercial mortgage banking, servicing and finance 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/multifamily real estate loans that are sold to U.S. government agencies or other investors. 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, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions.
Commercial paper issued by Berkadia is supported by a $1.50 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. At August 31, 2024, the aggregate amount of commercial paper outstanding was $1.47 billion.
Selected financial information for Berkadia:
$ in millionsAugust 31,
2024		November 30,
2023
Total assets$4,662.5 $5,318.2 
Total liabilities3,189.7 3,816.1 
Total noncontrolling interest540.1 612.8 
August 31,
2024		November 30,
2023
Our total equity balance$421.8 $400.9 
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Net earnings attributable to members$41.4 $53.9 $119.6 $96.4 
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Distributions$28.0 $33.6 $34.7 $33.8 
At August 31, 2024 and November 30, 2023, we had commitments to purchase $24.8 million and $77.5 million, respectively, of agency CMBS from Berkadia.
Activity related to our other transactions with Berkadia:
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Transaction referral fee revenue (1)$— $— $0.3 $— 
Loan origination fees paid (2)— — 0.4 — 
(1)We refer Berkadia to our clients to act as a transaction servicer and receive fees, which are included in Commissions and other fees.
(2)We pay fees to Berkadia for loan originations, which are capitalized as debt issuance costs and amortized over the life of the loan.

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 our significant real estate investments:
$ in millionsAugust 31,
2024		November 30,
2023
Total assets$328.6 $329.5 
Total liabilities488.9 500.0 
August 31,
2024		November 30,
2023
Our total equity balance$96.6 $90.0 
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Net earnings$2.9 $4.1 $3.0 $1.8 
54 Madison:
Three Months Ended 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Distributions$— $1.1 $— $18.2 
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. The amount of our investments in JCP Fund V included in Financial instruments owned, at fair value was $1.8 million and $2.2 million at August 31, 2024 and November 30, 2023, respectively. 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 
August 31,		Nine Months Ended 
August 31,
$ in millions2024202320242023
Net losses from our investments in JCP Fund V$(0.1)$(0.2)$(0.3)$(8.5)
At both August 31, 2024 and November 30, 2023, we were committed to invest equity of up to $85.0 million in JCP Fund V. At both August 31, 2024 and November 30, 2023, our unfunded commitment relating to JCP Fund V was $8.7 million.
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 35.0% at August 31, 2024 of the combined equity interests:
Three Months Ended
$ in millionsJune 30, 2024March 31, 2024December 31, 2023June 30, 2023March 31, 2023December 31, 2022
Net increase (decrease) in net assets resulting from operations (1)$(0.3)$0.1 $(0.9)$(0.4)$(4.9)$(54.6)
(1)Financial information for JCP Fund V within our results of operations for the three and nine months ended August 31, 2024 and 2023 is included based on the periods presented.
Asset Management Investments
We had an equity method investment with a carrying amount of $15.8 million at November 30, 2023, consisting of our shares in Monashee, an investment management company, registered investment advisor and general partner of various investment management funds, which provided us with 50.0% voting rights interest and the rights to distributions of 47.5% of the annual net profits of Monashee’s operations if certain thresholds were met. A portion of the carrying amount of the investment in Monashee related to contract and customer relationship intangible assets and goodwill. The intangible assets were amortized over their useful life and the goodwill was not amortized.
During the three months ended February 29, 2024, our shares were converted to preferred shares, which provide us with rights to be paid dividends based on Monashee’s performance and management fees, and we recognized a gain of $6.0 million upon the nonmonetary exchange. In addition, we invested $5.2 million in mandatorily redeemable preferred shares issued by Monashee. The investment in the preferred shares is accounted for at cost, less impairment, if any. The investment in the mandatorily redeemable preferred shares is accounted for at fair value.
We also have an investment management agreement whereby Monashee provides asset management services to us for certain separately managed accounts. Our net investment balance in the separately managed accounts was $20.2 million at November 30, 2023.
Activity related to these separately managed accounts is as follows:
$ in millionsThree Months Ended
August 31, 2023		Nine Months Ended 
August 31, 2023
Investment gains (1)$0.7 $0.4 
Management fees (2)0.2 0.6 
(1)Included in Principal transactions revenues.
(2)Included in Brokerage and clearing fees.
ApiJect
We own shares which represent a 33.6% economic interest in ApiJect at August 31, 2024, which is accounted for at fair value by electing the fair value option, and is included within corporate equity securities in Financial instruments owned, at fair value. Additionally, we have a right to 1.125% of ApiJect’s future revenues.
In December 2023, we purchased a $4.6 million secured convertible promissory note from ApiJect, which matures on December 14, 2025. In April 2024, we purchased a $1.3 million promissory note from ApiJect. These promissory notes were accounted for at fair value in Financial instruments owned and classified within Level 3 of the fair value hierarchy. We
recognized interest income of $0.0 million and $0.2 million on the two notes during the three and nine months ended August 31, 2024, respectively. In May 2024, we converted our notes into common shares and also paid $8.8 million for an additional investment in common shares of ApiJect. During the nine months ended August 31, 2024, we recognized a gain of $1.2 million, relating to the conversion of the convertible promissory note.
At August 31, 2024 and November 30, 2023, the total fair value of our total equity investment in common shares of ApiJect was $116.1 million and $100.1 million, respectively, 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 will mature on October 31, 2024. The loan is accounted for at amortized cost and is reported within Other assets. The loan has a fair value of $23.3 million and $30.4 million at August 31, 2024 and November 30, 2023, respectively, which would be classified as Level 3 in the fair value hierarchy.
SPAC
Prior to May 2024, we owned 73.4% of the publicly traded units of a special purpose acquisition company (“SPAC”), which represented 25.7% of its voting shares. We considered the SPAC a VIE and had significant influence over the SPAC but were not considered to be the primary beneficiary as we did not have control. Our investment was accounted for at fair value pursuant to the fair value option and was included within corporate equity securities in Financial instruments owned. The fair value of the investment was $23.8 million at November 30, 2023 and included within Level 1 of the fair value hierarchy. In May 2024, the company redeemed all of its outstanding units issued in its initial public offering, and our investment in the SPAC was redeemed in cash for approximately $24.3 million.
Stratos
We had a 49.9% voting interest in Stratos and had the ability to significantly influence Stratos through our seats on the board of directors. On September 14, 2023, we acquired the additional 50.1% voting interest in Stratos (refer to Note 4, Business Acquisitions for further information). As a result, the financial statements of Stratos are consolidated in our consolidated financial statements. During the three and nine months ended August 31, 2023, we contributed additional capital of $10.0 million and $20.0 million, respectively.
Selected financial information for Stratos:
$ in millionsThree Months Ended 
August 31, 2023		Nine Months Ended 
August 31, 2023
Net losses$(8.8)$(34.6)
Aircadia
In December 2023, Aircadia Leasing II LLC (“Aircadia”), a wholly owned subsidiary, purchased airplanes 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 are recognized within Premises and equipment at $57.7 million. During the three and nine months ended August 31, 2024, we recognized $5.6 million and $15.0 million, respectively, of operating lease income.
In December 2023, we provided a loan to the seller for $30.0 million, which matures on January 3, 2025. The loan is accounted for at amortized cost and included within Investments in and loans to related parties. We recognized interest income of $0.8 million and $2.2 million on the loan during the three and nine months ended August 31, 2024, 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 $37.1 million and at both August 31, 2024 and November 30, 2023, and are classified within Level 3 of the fair value hierarchy.
In September 2024, we provided a €15.0 million loan, maturing in May 2025, to an individual related to the seller, secured by a privately owned aircraft and guaranteed by the individual.
OpNet
On November 30, 2023, we provided notice of our intent to convert certain classes of our preferred shares into common shares. As a result, we obtained control of OpNet and consolidated its assets and liabilities in our consolidated financial statements as of November 30, 2023. Upon conversion on May 7, 2024, our ownership increased to 57.5% of the common shares and our voting rights increased to 72.6% of the aggregate voting rights of OpNet. From the time we obtained control of OpNet to its sale in August 2024, its wholesale business was considered a VIE and classified as held for sale. We also consolidate Tessellis, a subsidiary of OpNet, which is not considered to be a VIE. Refer to Note 4, Business Acquisitions for further information. Prior to the acquisition and consolidation of OpNet, we accounted for our equity investment in OpNet under the equity method.

During the three and nine months ending August 31, 2023, we contributed $54.2 million and $142.8 million, respectively, to OpNet through direct subscription, settlement of subscription advances, and conversion of a shareholder loan. We recognized equity method pickup losses of $35.3 million and $157.1 million during the three and nine months ending August 31, 2023, respectively.
Selected financial information for OpNet:
$ in millionsThree Months Ended 
August 31, 2023		Nine Months Ended 
August 31, 2023
Net losses$(37.1)$(179.1)
Golden Queen Mining Company LLC
We had a 50.0% ownership interest in Golden Queen, which owns and operates a gold and silver mine project located in California. We sold our interest in Golden Queen in November 2023.
During the three and nine months ending August 31, 2023, we recognized other-than-temporary impairment charges of $27.8 million and $57.2 million, respectively, on our investment within Other revenues.
Selected financial information for Golden Queen:
$ in millionsThree Months Ended 
August 31, 2023		Nine Months Ended 
August 31, 2023
Net earnings (losses)$0.7 $(1.6)