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Investments
 12 Months Ended
Nov. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments Note 11. InvestmentsInvestments 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.
November 30,
$ in millions
2024
2023
Total Investments in and loans to related parties ...
$1,385.7
$1,239.3
Year Ended November 30,
$ in millions
2024
2023
2022
Total equity method pickup
earnings (losses) recognized in
Other revenues .............................
$86.5
$(192.2)
$(36.3)
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 November 30, 2024, 2023
and 2022, respectively. 
Jefferies Finance
Jefferies Finance, our 50/50 joint venture with Massachusetts
Mutual Life Insurance Company (“MassMutual”) 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
that manages proprietary and third-party capital across
commingled funds, funds-of-one, separately managed accounts,
business development companies, CLOs and levered balance
sheet funds. Broadly syndicated loan investments are sourced
through transactions arranged by Jefferies Finance and third-
party arrangers and managed through its subsidiary, Apex Credit
Partners LLC. Direct lending investments are primarily sourced
through us. Jefferies Finance and its subsidiaries that are
involved in investment management are registered investment
advisers with the SEC.
At November 30, 2024, we and MassMutual each had equity
commitments to Jefferies Finance of $750.0 million, for a
combined total commitment of $1.5 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 November 30, 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 days 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 November 30,
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 days termination
notice by either party. At November 30, 2024, we had funded $0.0
million of our $250.0 million commitment.
Activity related to the facility:
Year Ended November 30,
$ in millions
2024
2023
2022
Interest income ................................
$—
$—
$0.4
Unfunded commitment fees ..........
1.2
1.2
1.2
Selected financial information for Jefferies Finance:
November 30,
$ in millions
2024
2023
Total assets ..................................................................
$5,762.6
$5,598.2
Total liabilities ..............................................................
4,415.6
4,352.0
November 30,
$ in millions
2024
2023
Our total equity balance ..............................................
$666.3
$630.1
Year Ended November 30,
$ in millions
2024
2023
2022
Net earnings (losses) .......................
$73.0
$(12.5)
$(129.4)
Activity related to our other transactions with Jefferies Finance:
Year Ended November 30,
$ in millions
2024
2023
2022
Origination and syndication fee
revenues (1) .....................................
$252.3
$133.7
$194.7
Origination fee expenses (1) ..........
60.7
28.6
39.7
CLO placement and structuring 
fee revenues (2) ...............................
1.1
2.1
4.6
Investment fund placement fee
revenues (3) ......................................
3.6
3.7
—
Underwriting fees (4) ......................
2.7
—
—
Service fees (5) ................................
100.7
100.1
94.7
(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)We acted as underwriter in connection with term loans issued by Jefferies
Finance. The fees are included in Investment banking revenues. In addition, at
November 30, 2024, we held $16.0 million of a syndicated Jefferies Finance
term loan pending settlement of committed sales.
(5)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 $1.9 million and $3.5 million at November 30, 2024 and
2023, respectively. At November 30, 2024 and 2023, payables to
Jefferies Finance related to cash deposited with us and included
in Payables to customers, were $13.7 million and $2.6 million,
respectively.
Berkadia
Berkadia is a commercial real estate finance and investment
sales 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 and multifamily real
estate loans that are sold to U.S. government agencies or other
investors with Berkadia retaining the servicing rights. 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 and
financial services companies.
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 November 30, 2024, the aggregate
amount of commercial paper outstanding was $1.47 billion.
Selected financial information for Berkadia:
November 30,
$ in millions
2024
2023
Total assets ..................................................................
$4,963.2
$5,318.2
Total liabilities ..............................................................
3,515.6
3,816.1
Total noncontrolling interest ......................................
502.1
612.8
November 30,
$ in millions
2024
2023
Our total equity balance ..............................................
$427.7
$400.9
Year Ended November 30,
$ in millions
2024
2023
2022
Gross revenues .................................
$1,210.0
$1,120.2
$1,361.2
Net earnings ......................................
186.0
120.4
276.5
Our share of net earnings ................
85.3
52.5
124.4
Year Ended November 30,
$ in millions
2024
2023
2022
Distributions we received ................
$58.5
$58.1
$69.8
At November 30, 2024 and 2023, we had commitments to
purchase $21.8 million and $77.5 million, respectively, of agency
CMBS from Berkadia.
Activity related to our other transactions with Berkadia:
Year Ended November 30,
$ in millions
2024
2023
2022
Transaction referral fee revenue (1) ..
$0.4
$—
$—
Loan origination fees paid (2) .............
0.8
—
—
(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 and realty sales. Loan origination
fees are capitalized as debt issuance costs and amortized over the life of the
loan. Realty sales commissions are included in Cost of sales.
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:
November 30,
$ in millions
2024
2023
Total assets ..................................................................
$326.0
$329.5
Total liabilities ..............................................................
484.7
500.0
November 30,
$ in millions
2024
2023
Our total equity balance ..............................................
$97.8
$90.0
Year Ended November 30,
$ in millions
2024
2023
2022
Net earnings ......................................
$5.1
$2.2
$17.7
Year Ended November 30,
$ in millions
2024
2023
2022
Distributions we received from
Brooklyn Renaissance Hotel ...........
$0.4
$—
$—
Distributions we received from 54
Madison .............................................
—
19.4
18.4
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 and which are in the
process of being fully liquidated. The amount of our investments
in JCP Fund V included in Financial instruments owned, at fair
value was $2.9 million and $2.2 million at November 30, 2024
and 2023, respectively. We account for these investments at fair
value based on the NAV of the funds provided by the fund
managers (refer to Note 2, Summary of Significant Accounting
Policies). The following summarizes the results from these
investments which are included in Principal transactions
revenues:
Year Ended November 30,
$ in millions
2024
2023
2022
Net gains (losses) from our
investments in JCP Fund V .............
$0.7
$(9.0)
$0.1
At both November 30, 2024 and 2023, we were committed to
invest equity of up to $85.0 million in JCP Fund V. At both
November 30, 2024 and 2023, our unfunded commitment relating
to JCP Fund V was $8.7 million. We do not expect any further
capital to be called by JCP Fund V.
Selected financial information for 100.0% of JCP Fund V, in which
we owned effectively 35.1% of the combined equity interests:
September 30,
$ in millions
2024 (1)
2023 (1)
Total assets ..................................................................
$8.2
$6.4
Total liabilities ..............................................................
0.1
0.1
Total partners’ capital ..................................................
8.1
6.3
Twelve Months Ended
September 30,
$ in millions
2024 (1)
2023 (1)
2022 (1)
Net increase (decrease) in net
assets resulting from operations ..
$1.8
$61.4
$(4.5)
(1)Financial information for JCP Fund V included in our financial position at
November 30, 2024 and 2023 and included in our results of operations for the
years ended November 30, 2024, 2023 and 2022 is based on the periods
presented.
Asset Management Investments
In July 2024, we invested $25.0 million in the Class A Common
Equity Units of Hildene Insurance Holdings, LLC, an investment
fund with insurance exposures. The investment is accounted for
under the equity method with a carrying amount of $27.5 million
at November 30, 2024.
Selected financial information for 100.0% of Hildene Insurance
Holdings, LLC, in which we own effectively 9.26% of the
combined equity interests:
$ in millions
September 30,
2024 (1)
Total assets.......................................................................................
$304.2
Total liabilities ...................................................................................
0.2
Total members’ equity .....................................................................
304.0
$ in millions
Three Months
Ended
September 30,
2024 (1)
Net increase (decrease) in members’ equity resulting from
operations .........................................................................................
$34.1
(1)Financial information for Hildene Insurance Holdings, LLC included in our
financial position at November 30, 2024 and included in our results of
operations for the year ended November 30, 2024, is based on the period
presented.
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:
Year Ended November 30,
$ in millions
2023
2022
Investment losses (1) ..................................................
$(0.1)
$(3.2)
Management fees (2) ..................................................
0.8
0.7
(1)Included in Principal transactions revenues.
(2)Included in Floor brokerage and clearing fees.
ApiJect     
We own shares which represent a 33.6% economic interest in
ApiJect at November 30, 2024, which is accounted for at fair
value by electing the fair value option available under U.S. GAAP
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 are
accounted for at fair value in Financial instruments owned and
classified within Level 3 of the fair value hierarchy.
We recognized interest income of $0.2 million on the two notes
during the year ended 2024. 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 year ended
2024, we recognized a gain of $1.2 million, relating to the
conversion of the convertible promissory notes.
At November 30, 2024 and 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 matures on January 31, 2025. The loan
was accounted for at amortized cost and reported within Other
assets. The loan had a fair value of $23.3 million and
$30.4 million at November 30, 2024 and 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 into our consolidated
financial statements. During 2023, prior to the acquisition, we
contributed additional capital of $20.0 million.
Selected financial information for Stratos:
Year Ended November 30,
$ in millions
2023 (1)
2022
Net earnings (losses) ...................................................
$(36.4)
$39.0
(1) Represents the period prior to the step-acquisition.
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 were recognized within Premises
and equipment at $57.7 million. During the year ended
November 30, 2024, we recognized $20.7 million of operating
lease income.
During 2024, we classified the airplanes related to the sale
leaseback transaction as held for sale. The airplanes are included
within Assets held for sale on our Consolidated Statements of
Financial Condition and have a carrying amount of $51.9 million
at November 30, 2024. We are actively pursuing avenues to
dispose of the airplanes through a sale process. Effective with
the designation of the airplanes as held for sale, we suspended
recording depreciation on these assets.
In December 2023, we provided a loan to the seller for
$30.0 million, which matures on February 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
$3.1 million during the year ended 2024. 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 at
both November 30, 2024 and 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. We
recognized interest income of $0.4 million during the year ended
November 30, 2024.
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.
We recognized equity method pickup losses of $254.1 million
and $59.0 million for the years ended November 30, 2023 and
2022, respectively, in Other revenues.
During the year ended November 30, 2023, we contributed
$167.2 million to OpNet through direct subscription, settlement
of subscription advances, and conversion of a shareholder loan.
Selected financial information for OpNet:
Year Ended November 30,
$ in millions
2023
2022
Net losses ......................................................................
$(278.3)
$(88.6)
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 year ended 2023, we recognized impairment charges of
$57.2 million on our investment within Other revenues. We sold
our interest in Golden Queen in November 2023 and recognized a
gain of $1.7 million.
Selected financial information for Golden Queen:
Year Ended November 30,
$ in millions
2023
2022
Net losses ......................................................................
$(0.3)
$(15.2)