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 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 May 31, 2015 and November 30, 2014, loans to and/or equity investments in Private Equity Related Funds were in aggregate $36.7 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 May 31,					Six Months Ended May 31,
	2015		2014			2015		2014
Other revenues and investment income (loss)	$	947	$	(9,036	)	(24,212	)	(11,459	)

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 May 31, 2015 and November 30, 2014, we have commitments to purchase $336.5 million and $344.8 million, respectively, in agency commercial mortgage-backed securities from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

HRG 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 HRG of $266.6 million and $232.0 million at May 31, 2015 and November 30, 2014, respectively. Additionally, we recognized investment banking and advisory revenues of $0.9 million and $1.3 million during the three and six months ended May 31, 2015, respectively.

National Beef Packaging Company, LLC (“National Beef”). We act as an FCM for National Beef, which is partially owned by Leucadia. At May 31, 2015 and November 30, 2014, we had a customer payable to National Beef of $0.0 million and $4.1 million, respectively. During the three and six months ended May 31, 2015, we recognized commissions of $0.0 million and $0.2 million, respectively.

Officers, Directors and Employees. At May 31, 2015 and November 30, 2014, we had $24.3 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 May 31, 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, which are settled on a quarterly basis:

•

Under a service agreement, we charge Leucadia for certain services, which amounted to $6.1 million and $11.2 million, for the three and six months ended May 31, 2015, respectively, and amounted to $9.2 million and $17.2 million for the three and six months ended May 31, 2014, respectively. At May 31, 2015 and November 30, 2014, we had a receivable from Leucadia of $3.0 million and $10.9 million, respectively, which is included within Other assets on the Consolidated Statements of Financial Condition. At May 31, 2015 and November 30, 2014, we had a payable to Leucadia of $7.3 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 on the Consolidated Statements of Financial Condition.


•	At May 31, 2015 and November 30, 2014, $26.1 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 May 31, 2015		Six Months Ended May 31, 2015
Investment banking and advisory	$	200	$	21,200
Asset management	119		303
Commissions	1		37


•	On March 18, 2014, we sold our investment in HRG Group Inc., consisting of approximately 18.6 million shares, to Leucadia at the closing price on that date.


•	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.