Note 10. 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 millions	May 31, 2026		November 30, 2025
Total Investments in and loans to related parties	$	1,555.1	$	1,496.1


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Total equity method pickup earnings recognized in Other revenues	$	21.8	$	8.1	$	46.3	$	15.2

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 May 31, 2026.

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 May 31, 2026, 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 May 31, 2026, our unfunded commitment to Jefferies Finance was $15.4 million. The investment commitment is scheduled to expire on March 1, 2027 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 facility is a committed amount of $500.0 million at May 31, 2026. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2027 with automatic one year extensions absent a 60 day termination notice by either party. At May 31, 2026, our $250.0 million commitment was undrawn.

Activity related to the facility:


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Interest income	$	0.2	$	—	$	0.4	$	—
Unfunded commitment fees	$	0.3	$	0.3	$	0.6	$	0.6

Selected financial information for Jefferies Finance:


$ in millions	May 31, 2026		November 30, 2025
Total assets	$	6,837.6	$	7,356.1
Total liabilities	5,364.9		5,959.2
Total mezzanine equity	15.9		14.8


$ in millions	May 31, 2026		November 30, 2025
Our total investment balance	$	728.5	$	691.0


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Net earnings (losses) attributable to members	$	35.4	$	0.1	$	68.5	$	(1.6)

Activity related to our other transactions with Jefferies Finance:


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Origination and syndication fee revenues (1)	$	41.7	$	58.4	$	94.8	$	118.6
Origination fee expenses (1)	11.0		13.9		29.6		32.4
CLO placement and structuring fee revenues (2)	1.9		1.3		2.9		1.5
Placement and referral fees (3)	7.5		9.4		13.8		10.0
Asset management fee revenues (4)	—		7.5		—		7.5
Underwriting revenues (expenses) (5)	(0.2)		—		(1.1)		—
Service fees (6)	25.8		22.7		91.4		77.1

(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, which are recognized as fees and included in Investment banking revenues.

(3)We act as a placement agent for investment funds managed by Jefferies Finance, which are recognized as fees and included in Commissions and other fees.

(4)Under a fee and revenue sharing agreement with Jefferies Finance, we receive fees, which are included in Asset management fees and revenues.

(5)We act as an underwriter in connection with term loans issued by Jefferies Finance.

(6)Under a service agreement, we charge Jefferies Finance for various administrative services provided.

Additional balances with Jefferies Finance as reported in our Consolidated Statements of Financial Condition.


$ in millions	May 31, 2026		November 30, 2025
Assets
Financial instruments owned, at fair value (1)	$	4.1	$	10.9


Other assets (2)	6.2		7.0
Liabilities
Financial instruments sold, not yet purchased, at fair value (1)	$	1.6	$	0.4
Payables:
Brokers, dealers and clearing organizations (3)	17.7		17.2
Customers (4)	5.0		3.3

(1)In connection with our capital markets activities, from time to time we make a market in long-term debt securities and term loans of Jefferies Finance (i.e., we buy and sell debt securities and tern loans of Jefferies Finance).

(2)Receivable for services and certain fees from Jefferies Finance.

(3)Cash collateral received from Jefferies Finance on OTC foreign currency derivatives.

(4)Payable to Jefferies Finance in connection with loans originated by Jefferies Finance to borrowers who are investment banking clients of ours. We have also entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure on these loans.

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, for which we receive a surety fee, and a corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. At May 31, 2026, the aggregate amount of commercial paper outstanding was $1.47 billion.

Selected financial information for Berkadia:


$ in millions	May 31, 2026		November 30, 2025
Total assets	$	5,360.5	$	5,269.8
Total liabilities	3,868.1		3,953.1
Total noncontrolling interest	540.1		369.0


$ in millions	May 31, 2026		November 30, 2025
Our total investment balance	$	432.6	$	429.7


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Net earnings attributable to members	$	26.5	$	44.2	$	66.9	$	82.0


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Distributions	$	5.4	$	10.9	$	26.6	$	27.0

At May 31, 2026 and November 30, 2025, we had commitments to purchase $9.0 million and $13.6 million, respectively, of agency CMBS from Berkadia.

Revenues from other transactions with Berkadia for the six months ended May 31, 2025 were $0.1 million.

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 the real estate investments:


$ in millions	May 31, 2026		November 30, 2025
Total assets	$	310.0	$	312.6
Total liabilities	463.6		470.7

	May 31, 2026		November 30, 2025
Our total investment balance	$	100.0	$	98.7


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Net earnings (losses)	$	1.0	$	(3.3)	$	4.8	$	1.3



	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025

Distributions we received from Brooklyn Renaissance Hotel	$	—	$	1.2	$	—	$	1.2

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 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 $3.1 million and $2.8 million at May 31, 2026 and November 30, 2025, 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 May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Net gains (losses) from our investments in JCP Fund V	$	0.4	$	—	$	0.3	$	(0.2)

At both May 31, 2026 and November 30, 2025, we were committed to invest equity of up to $85.0 million in JCP Fund V. At both May 31, 2026 and November 30, 2025, 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.

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% at May 31, 2026 of the combined equity interests:


	Three Months Ended (1)
$ in millions	March 31, 2026		December 31, 2025		March 31, 2025		December 31, 2024
Net increase (decrease) in net assets resulting from operations	$	1.0	$	—	$	0.1	$	(0.6)

(1)Financial information for JCP Fund V within our results of operations for the three and six months ended May 31, 2026 and 2025 is included based on the periods presented.

Hildene

In July 2024, we invested $25.0 million in the Class A Common Equity Units of Hildene Insurance Holdings, LLC (“Hildene Insurance”), an investment fund with insurance exposures. On March 1, 2025, we made an additional investment of $75.0 million in Hildene Insurance, which resulted in an increase of our effective ownership from 8.83% to 23.5%. The investment is accounted for under the equity method with a carrying amount of $120.0 million and $113.8 million at May 31, 2026 and November 30, 2025, respectively.

Selected financial information for Hildene Insurance:


$ in millions	March 31, 2026 (1)		September 30, 2025 (1)
Total assets	$	560.7	$	498.4
Total liabilities	0.4		0.7
Total members’ equity	560.3		497.7


	Three Months Ended (1)
$ in millions	March 31, 2026		March 31, 2025		December 31, 2025		December 31, 2024
Net increase in members’ equity resulting from operations	$	15.8	$	27.5	$	16.6	$	8.4

(1)Financial information for Hildene Insurance Holdings, LLC included in our financial position at May 31, 2026 and November 30, 2025 is based on the dates presented, and in our results of operations for the three and six months ended May 31, 2026 and 2025 is based on the periods presented.

On December 9, 2025, we entered into an agreement to acquire a 50% interest in Hildene Holding Company, LLC, parent of Hildene Capital Management, LLC, a credit-focused asset manager and the parent of Hildene Insurance. We will contribute our existing revenue share, a portion of our interest in a Hildene-managed fund, and $340.0 million in cash. Hildene’s principals will contribute their ownership interests and approximately $250.0 million of the fund and related equity interests. Closing is targeted to occur in the third quarter of 2026, subject to customary approvals.

We own shares that represent a 37.9% and 33.6% economic interest in ApiJect at May 31, 2026 and November 30, 2025, respectively, which are accounted for at fair value by electing the fair value option available under U.S. GAAP, and are included within corporate equity securities in Financial instruments owned, at fair value. At both May 31, 2026 and November 30, 2025, the total fair value of our total equity investment in common shares of ApiJect was $97.9 million 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 July 31, 2026. The loan is accounted for at amortized cost and is reported within Other assets. The loan has a fair value of $23.3 million at both May 31, 2026 and November 30, 2025, which would be classified as Level 3 in the fair value hierarchy.

We have purchased secured convertible promissory notes totaling $3.9 million in the second quarter of 2026, and $9.8 million in December 2025, 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.

In December 2023, Aircadia Leasing II LLC (“Aircadia”), a wholly owned subsidiary, purchased airplanes from one of our clients 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 recorded within Premises and equipment at $57.7 million. During the second quarter of 2025, we agreed to sell the airplanes and we recognized a loss of $12.8 million. The sale closed in the third quarter of 2025.


	Three Months Ended May 31,				Six Months Ended May 31,
$ in millions	2026		2025		2026		2025
Operating lease income (1)	$	—	$	1.3	$	—	$	6.9

Also in December 2023, we provided a loan to the seller for $30.0 million, which was paid off on April 1, 2025. The loan was accounted for at amortized cost and included within Investments in and loans to related parties. We recognized interest income of $0.2 million and $1.0 million on the loan during the three and six months ended May 31, 2025, 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 $43.2 million at both May 31, 2026 and November 30, 2025, and are classified within Level 3 of the fair value hierarchy.