Jefferies Financial Group

Jefferies Financial Group Inc. is a New York-based diversified financial-services and investment company listed on the New York Stock Exchange under the symbol JEF. The group is best known for its wholly owned Jefferies business, an investment bank providing advisory, underwriting, equities, fixed-income, foreign-exchange, research and related capital-markets services to corporations, governments, institutional investors and other financial clients. Through Jefferies, the group operates across major international financial centers and competes with large independent and universal investment banks. The present company is the result of the transformation of Leucadia National Corporation, a diversified holding company created by Ian Cumming and Joseph S. Steinberg. The founders built Leucadia through acquisitions, restructurings and investments spanning insurance, telecommunications, real estate, food production, energy, automotive retail and other sectors. This history gave the group a conglomerate structure rather than the profile of a conventional single-industry bank. Its portfolio has included Berkadia Commercial Mortgage, operated in a joint venture with Berkshire Hathaway; National Beef Packing Company; HomeFed; FXCM; Foursight Capital; Vitesse Energy; Juneau Energy; Garcadia Holdings; Linkem; Idaho Timber; and other operating or investment businesses. A decisive strategic turning point came in 2012–2013, when Leucadia combined with Jefferies Group. The transaction brought the investment bank into the center of the holding company's identity and placed Richard Handler, Jefferies' chief executive, in charge of the combined company. In May 2018, Leucadia National Corporation adopted the name Jefferies Financial Group, aligning the public-company brand more closely with its principal financial-services franchise while retaining selected operating-company and investment interests. The group therefore has two related identities. Jefferies is the client-facing global investment-bank brand, while Jefferies Financial Group is the listed parent and diversified holding company. The parent has historically pursued opportunistic investments and maintained exposure to businesses outside securities underwriting and trading. Its operating scope has included commercial mortgage banking and servicing, vehicle finance, food manufacturing, residential and master-planned-community development, energy, broadband, automotive dealerships, timber manufacturing and natural-resources projects. Holdings and ownership percentages can change over time, so individual portfolio positions should be checked against the company's latest filings. Jefferies Financial Group's positioning combines the capital-markets capabilities and international reach of a full-service investment bank with the flexibility of a diversified holding company. Its principal economic and reputational center is now the Jefferies investment bank, while the broader group structure provides additional exposure to operating businesses and strategic investments. The company remains active and publicly traded, with its financial condition and portfolio composition reported through regulatory filings and investor-relations materials.

Jefferies Financial Group traces its corporate history to the development of Leucadia National Corporation by Ian Cumming and Joseph S. Steinberg. The two men met after graduating from Harvard Business School and worked at Carl Marks & Company, an investment bank. In 1979 they obtained control of Talcott National Corporation. After selling the James Talcott Factors division, they renamed the company Leucadia in 1980 and pursued an acquisition-led, value-oriented holding-company strategy. Leucadia's early history was marked by transactions in which the company bought, restructured or sold businesses across different industries. In 1984, it reported a substantial gain on its investment in Avco Corporation after pressing for the company's sale to Textron. During the 1990s, Leucadia expanded into insurance through the purchase of Colonial Penn from Florida Power & Light. It subsequently sold Colonial Penn's life and automobile insurance operations to Conseco and GE Capital, and later divested other insurance subsidiaries to Allstate. These transactions established the pattern of rotating capital among unrelated businesses rather than building a single operating franchise. During the 2000s, Leucadia acquired or invested in communications, healthcare, finance, hospitality and real estate. It received a stake in WilTel Communications Group through a bankruptcy reorganization, later acquired the remaining shares and eventually sold WilTel to Level 3 Communications. It acquired RehabWorks and provided financing to Pershing Square Capital Management. Leucadia also pursued, but did not complete, an attempt to obtain control of MCI Communications. In hospitality, it bought ResortQuest International and later sold the business to Wyndham Worldwide. The company broadened its operating portfolio during the following decade. In 2009, it formed Berkadia Commercial Mortgage with Berkshire Hathaway. The joint venture acquired the North American loan-origination and servicing operations of Capmark Financial Group, creating a significant commercial-mortgage platform. Leucadia also acquired a large interest in National Beef Packing Company and held investments in real estate, energy, automotive retail, broadband, timber manufacturing, mining and other sectors. A proposed South Chicago syngas project announced in 2012 did not receive the legislative approval needed to proceed. The most important structural change occurred in 2013, when Leucadia merged with Jefferies Group. Jefferies had developed into an independent investment bank with capabilities in advisory work, securities underwriting, sales and trading, research and asset management. Richard Handler became chief executive of the combined company. The merger shifted Leucadia's public identity toward financial services while preserving its diversified investment model. Leucadia continued to adjust its portfolio after the merger. It invested in FXCM following the broker's Swiss-franc-related losses in 2015 and restructured that investment in 2016. Other significant holdings included HomeFed, Foursight Capital, National Beef, Berkadia, energy companies and various operating businesses. In May 2018, Leucadia National Corporation changed its name to Jefferies Financial Group. The renaming recognized Jefferies as the group's principal franchise, although the listed parent continued to own or invest in businesses beyond investment banking. Today, Jefferies Financial Group is the listed parent company and Jefferies is its principal global investment-bank brand. The group combines institutional capital-markets activities with a portfolio of operating companies and investments. Because ownership interests and business composition can change through acquisitions, disposals and restructurings, current holdings should be confirmed through the latest annual report and securities filings.

• 2018

  Corporate name changed to Jefferies Financial Group

  [1]Jefferies Financial Groupen.wikipedia.org

  Leucadia National Corporation adopted the Jefferies Financial Group name.

• 2013

  Combination with Jefferies Group

  [1]Jefferies Financial Groupen.wikipedia.org

  Leucadia merged with Jefferies Group, bringing the investment bank into the center of the corporate group.

• 2011

  National Beef investment

  [1]Jefferies Financial Groupen.wikipedia.org

  Leucadia acquired a substantial interest in National Beef Packing Company.

• 2009

  Berkadia joint venture formed

  [1]Jefferies Financial Groupen.wikipedia.org

  Leucadia and Berkshire Hathaway formed Berkadia Commercial Mortgage, which acquired Capmark's North American loan-origination and servicing business.

• 1991

  Colonial Penn acquired

  [1]Jefferies Financial Groupen.wikipedia.org

  Leucadia acquired insurer Colonial Penn from Florida Power & Light.

• 1980

  Leucadia name adopted

  [1]Jefferies Financial Groupen.wikipedia.org

  After selling the James Talcott Factors division, the company adopted the Leucadia name.

• 1979

  Control of Talcott National Corporation

  [1]Jefferies Financial Groupen.wikipedia.org

  Ian Cumming and Joseph S. Steinberg gained control of Talcott National Corporation, the corporate predecessor developed into Leucadia.

A global investment-bank platform housed within a diversified, opportunistic financial-services holding company.

• Investment banking

  Jefferies investment banking

  The group's principal client-facing franchise provides mergers and acquisitions advice, restructuring and strategic advice, equity and debt underwriting, leveraged finance, private-capital solutions and related corporate-finance services. It serves companies, financial sponsors, governments and other institutions across multiple sectors and regions.

• Securities

  Jefferies equities

  Jefferies' equities platform includes institutional sales, trading, research and equity-capital-markets activities. The business connects institutional investors with listed-company markets and supports issuers seeking public-equity financing.

• Securities

  Jefferies fixed income

  The fixed-income business covers sales, trading, research and financing across credit, rates and related markets. It is designed for institutional clients and complements the firm's advisory and underwriting activities.

• Commercial mortgage banking · 2009

  Berkadia Commercial Mortgage

  Berkadia is a commercial-mortgage banking and servicing joint venture between Jefferies Financial Group and Berkshire Hathaway. Its activities include commercial real-estate loan origination, investment sales and servicing.

• Holding-company investments

  Diversified operating investments

  The parent has held interests in businesses such as National Beef, HomeFed, Foursight Capital, energy companies, automotive dealerships, broadband, timber manufacturing and natural-resources projects. These holdings are investments or operating businesses rather than a single standardized consumer product line.

• 2018

  Adopt the Jefferies Financial Group nameStrategy

  Background

  Following the 2013 combination, Jefferies had become the best-known financial-services franchise within the former Leucadia group.

  Action taken

  Leucadia National Corporation changed its corporate name to Jefferies Financial Group.

  Aftermath

  The listed parent became more closely associated with the Jefferies investment-bank brand while retaining a diversified portfolio.

  Source

• 2015

  Investment in FXCMStrategy

  Background

  FXCM experienced losses after the sharp appreciation of the Swiss franc created stress in the online foreign-exchange market.

  Action taken

  Jefferies Financial Group invested in FXCM and later restructured that investment in 2016.

  Aftermath

  FXCM became a significant group investment, subject to subsequent restructuring.

  Source

• 2013

  Merge with Jefferies GroupM&A

  Background

  Leucadia sought to combine its diversified holding-company structure with Jefferies' established investment-banking and capital-markets platform.

  Action taken

  The companies completed their combination, with Richard Handler becoming chief executive of the combined company.

  Aftermath

  The investment bank became the group's central franchise and eventually supplied the basis for the parent company's 2018 name change.

  Source

1. 1Jefferies Financial Groupen.wikipedia.org
2. 2Jefferies official websitejefferies.com