Related Party Transactions

3 Months Ended

Feb. 28, 2015

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 of 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, 2015 and November 30, 2014, loans to and/or equity investments in Private Equity Related Funds were in aggregate $35.9 million and $60.7 million, respectively. The following table presents other revenues and investment income (loss) related to net gains and losses on our investment in Private Equity Related Funds (in thousands):



	Three Months Ended February 28, 2015			Three Months Ended February 28, 2014
Other revenues and investment income (loss)	$	(25,159	)	$	(2,491	)

For further information regarding our commitments and funded amounts to Private Equity Related Funds, see Note 17, Commitments, Contingencies and Guarantees.

Berkadia Commercial Mortgage, LLC. At February 28, 2015 and November 30, 2014, we have commitments to purchase $356.4 million and $344.8 million, respectively, in agency commercial mortgage-backed securities from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

Harbinger Group Inc. As part of our loan secondary trading activities we have unsettled purchases and sales of loans pertaining to portfolio companies within funds managed by Harbinger of $248.1 million and $232.0 million at February 28, 2015 and November 30, 2014, respectively. Additionally, we recognized revenue of $0.4 million during the three months ended February 28, 2015 in connection with a stock purchase transaction.

National Beef Packaging Company, LLC (“National Beef”). We act as an FCM for National Beef, which is partially owned by Leucadia. At February 28, 2015 and November 30, 2014, we had a customer payable to National Beef of $5.7 million and $4.1 million, respectively. During the three months ended February 28, 2015, we recognized commissions of $0.2 million.

Officers, Directors and Employees. At February 28, 2015 and November 30, 2014, we had $23.3 million and $20.1 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. Receivables from and payables to customers include balances arising from officers, directors and employees individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms. At February 28, 2015 and November 30, 2014, we have provided a guarantee of a credit agreement for a private equity fund owned by our employees.

Leucadia. The following is a description of related party transactions with Leucadia:

•

Under a service agreement, we charge Leucadia for certain services which, for the three months ended February 28, 2015 and 2014 amounted to $5.1 million and $8.0 million, respectively. At February 28, 2015 and November 30, 2014, we had a receivable from Leucadia of $14.2 million and $10.9 million, respectively, which is included within Other assets on the Consolidated Statements of Financial Condition. At February 28, 2015 and November 30, 2014, we had a payable to Leucadia of $1.2 million and $41.5 million, respectively, related to stock compensation arrangements and senior executive benefits provided by Leucadia, which is included within Other liabilities on the Consolidated Statements of Financial Condition.


•	We have a tax sharing agreement with Leucadia, for which any amounts outstanding are included in Other assets in the Consolidated Statements of Financial Condition.


•	At February 28, 2015 and November 30, 2014, $26.0 million and $25.4 million, respectively, of the total noncontrolling interests in asset management entities that are consolidated by us are attributed to Leucadia.


•	We provide capital markets and asset management services to Leucadia and its affiliates. The following table presents the revenues earned by type of services provided (in thousands):



	Three Months Ended February 28, 2015		Three Months Ended February 28, 2014
Investment banking and advisory	$	21,000	$	—
Asset management	184		—
Commissions	36		—


•	On February 28, 2014, we sold our ownership interest in CoreCommodity Capital, LLC (formerly CoreCommodity Management, LLC, our commodity asset management business) to Leucadia at a fair value.

For information on transactions with our equity method investees, see Note 9, Investments.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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