Related Party Transactions

6 Months Ended

May 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Note 25. 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, 2013 (Successor period) and November 30, 2012 (Predecessor period), loans to and/or equity investments in Private Equity Related Funds were $85.2 million and $104.2 million, respectively. Interest income earned on loans to Private Equity Related Funds was $0.1 million and $0.5 million for the three months ended May 31, 2013 (Successor period) and February 28, 2013 (Predecessor period), respectively and $0.9 million and $1.7 million for the three and six months ended May 31, 2012 (Predecessor period), respectively. Other revenues and investment income related to net gains and losses on our investment in Private Equity Related Funds was a $1.0 million loss and a $0.9 million gain for the three months ended May 31, 2013 (Successor period) and February 28, 2013 (Predecessor period), respectively and $4.5 million loss and $9.3 million loss for the three and six months ended May 31, 2012 (Predecessor period), respectively. For further information regarding our commitments and funded amounts to Private Equity Related Funds, see Note 22, Commitments, Contingencies and Guarantees.

Berkadia Commercial Mortgage, LLC. At May 31, 2013 (Successor period) and November 30, 2012 (Predecessor period), we have commitments to purchase $136.9 million and $411.6 million, respectively, in agency commercial mortgage-backed securities from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

Officers, Directors and Employees. At May 31, 2013 (Successor period) and November 30, 2012 (Predecessor period), we had $38.1 million and $46.5 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.

Leucadia. During the three months ended February 28, 2013 (Predecessor period), we received commissions and commission equivalents for providing brokerage services to Leucadia and its affiliates of $5,000, which is recorded in Commission income on the Consolidated Statements of Earnings, and received $1,500 and $8.3 million in commissions and commission equivalents for the three and six months ended May 31, 2012, respectively. During the three months ended May 31, 2013 (Successor period) and February 28, 2013 (Predecessor period), we distributed to Leucadia approximately $65,000 and $61,000, respectively, and $5.3 million for the three and six months ended May 31, 2012, (Predecessor period) related to earnings associated with their investment in our high yield joint venture. Further during the three months ended May 31, 2013, Leucadia invested $25.0 million in an asset management entity that is consolidated by us. See Note 17, Noncontrolling Interests and Mandatorily Redeemable Preferred Interests of Consolidated Subsidiaries. In addition, see Note 4, Leucadia Merger and Related Transactions for information regarding the merger on March 1, 2013.

For information on transactions with our equity method investees, see Note 12, Investments.