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Investments
 6 Months Ended
May 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Investments InvestmentsAt May 31, 2021, we had investments in Jefferies Finance LLC (“Jefferies Finance”) and Berkadia. Our investments in Jefferies Finance and Berkadia have been accounted for under the equity method and have been included in Loans to and investments in related parties in our Consolidated Statements of Financial Condition with our share of the investees’ earnings recognized in Other revenues in our Consolidated Statements of Earnings. We have limited partnership interests of 11% and 50% in Jefferies Capital Partners V L.P. and the Jefferies SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by one of our directors and our Chairman of the Executive Committee.
Jefferies Finance
Jefferies Finance, a joint venture entity pursuant to an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”), is a commercial finance company that structures, underwrites and syndicates primarily senior secured loans to corporate borrowers. Jefferies Finance conducts its operations primarily through two business lines, Leveraged Finance Arrangement and Portfolio & Asset Management. The Leveraged Finance Arrangement business line participates in transactions typically ranging from $250.0 million to $1.5 billion for borrowers. Loans are originated primarily through the investment banking efforts of Jefferies LLC. The Portfolio & Asset Management business line, collectively referred to as Jefferies Credit Partners, is a private credit platform that manages more than $10.0 billion of proprietary and third party capital invested across commingled funds, separately managed accounts and CLOs.
At May 31, 2021, we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million, for a combined total commitment of $1.5 billion. At May 31, 2021, we had funded $676.8 million of our $750.0 million commitment, leaving $73.2 million unfunded. The investment commitment is scheduled to expire on March 1, 2022 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 May 31, 2021. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2022 with automatic one year extensions absent a 60 days termination notice by either party. At May 31, 2021, we had funded $0.0 million of our $250.0 million commitment. The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions):
Three Months Ended 
May 31,		Six Months Ended 
May 31,
2021202020212020
Interest income$1.1 $1.4 $1.4 $2.2 
Unfunded commitment fees0.2 0.1 0.5 0.4 
The following is a summary of selected financial information for Jefferies Finance (in millions):
May 31, 2021November 30, 2020
Our total equity balance$676.8 $604.6 
Three Months Ended 
May 31,		Six Months Ended 
May 31,
2021202020212020
Net earnings (loss)$83.3 $(99.2)$144.6 $(78.5)
The following summarizes activity related to our other transactions with Jefferies Finance (in millions):
Three Months Ended 
May 31,		Six Months Ended 
May 31,
2021202020212020
Origination and syndication fee revenues (1)$145.4 $43.8 $215.7 $81.5 
Origination fee expenses (1)20.5 3.0 32.8 8.6 
CLO placement fee revenues (2)1.3 — 3.7 0.4 
Underwriting fees (3)— — 0.5 0.3 
Service fees (4)14.0 10.7 45.5 35.9 
(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 our Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses in our Consolidated Statements of Earnings.
(2)We act as a placement agent for CLOs managed by Jefferies Finance, for which we recognized fees, which are included in Investment banking revenues in our Consolidated Statements of Earnings. At May 31, 2021 and November 30, 2020, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value.
(3)We acted as underwriter in connection with term loans issued by Jefferies Finance.
(4)Under a service agreement, we charge Jefferies Finance for 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 in our Consolidated Statements of Financial Condition, were $31.6 million and $24.2 million at May 31, 2021 and November 30, 2020, respectively. At May 31, 2021, Payables to Jefferies Finance, related to cash deposited with us and included in Payables to customers in our Consolidated Statements of Financial Condition, was $1.8 million. At November 30, 2020, payables to Jefferies Finance, related to cash deposited with us and included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition, was $13.7 million.
Berkadia
Berkadia is a commercial mortgage banking and servicing joint venture that was formed in 2009 by Jefferies and Berkshire Hathaway Inc. On October 1, 2018, Jefferies transferred its 50% voting equity interest in Berkadia and related arrangements to us. As a result, we are entitled to receive 45% 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 is an investment sales advisor focused on the multifamily industry. 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.
The following is a summary of selected financial information for Berkadia (in millions):
May 31, 2021November 30, 2020
Our total equity balance$361.3 $301.2 
Three Months Ended 
May 31,		Six Months Ended 
May 31,
2021202020212020
Net earnings$68.1 $— $134.8 $48.7 
We received distributions from Berkadia on our equity interest as follows (in millions):
Three Months Ended 
May 31,		Six Months Ended 
May 31,
2021202020212020
Distributions$0.2 $0.4 $0.5 $36.6 
At May 31, 2021 and November 30, 2020, we had commitments to purchase $544.1 million and $401.0 million, respectively, of agency CMBS from Berkadia.
JCP Fund V
The amount of our investments in JCP Fund V included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition was $22.1 million and $17.4 million at May 31, 2021 and November 30, 2020, respectively. We account for these investments at fair value based on the NAV of the funds provided by the fund managers (see Note 2, Summary of Significant Accounting Policies, in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2020). The following summarizes the results from these investments which are included in Principal transactions revenues in our Consolidated Statements of Earnings (in millions):
Three Months Ended 
May 31,		Six Months Ended 
May 31,
2021202020212020
Net gains (losses) from our investments in JCP Fund V$5.0 $(7.0)$4.5 $(5.5)
At both May 31, 2021 and November 30, 2020, we were committed to invest equity of up to $85.0 million in JCP Fund V. At May 31, 2021 and November 30, 2020, our unfunded commitment relating to JCP Fund V was $8.9 million and $9.1 million, respectively.
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, 2021 of the combined equity interests (in thousands):
Three Months Ended
March 31, 2021December 31, 2020March 31, 2020December 31, 2019
Net increase (decrease) in net assets resulting from operations (1)$14,315 $(1,024)$(19,893)$(1,397)
(1)Financial information for JCP Fund V within our results of operations for the three and six months ended May 31, 2021 and 2020 is included based on the presented periods.