JEFFERIES LLC is an American global investment bank and institutional securities firm headquartered in New York. The firm provides clients with capital markets and financial advisory services, institutional brokerage, securities research, and asset management . This includes mergers and acquisitions , restructuring , and other financial advisory services.
Jefferies was named one of the World's Most Admired Companies by Fortune magazine in 2011, Best Place to Work in the Financial Industry by Here Is The City News in 2010, 2011, 2012 and 2013, and one of the best companies to work for in the UK by The Sunday Times .
On November 12, 2012, Jefferies announced its merger with Leucadia , its largest shareholder. At that time, Leucadia common shares were trading at $21.14 per share. As of December 31, 2015, Leucadia shares were trading at $17.39 per share. Jefferies remains independent and is the largest operating company within Leucadia. On March 1, 2013, along with the closing of the merger, Jefferies "> International expansion led the company to develop a new overseas office in London, headed by Frank Baxter. In 1986, Baxter became president and chief operating officer, returning to New York to manage the company.
In 1987, Boyd Jefferies was charged by the government and the Securities and Exchange Commission with two securities violations: "parking" stock for a customer Ivan Boesky and a customer margin violation. Jefferies, who had also earlier testified against Boesky, pleaded guilty; receiving a fine and a probation barring him from the securities industry for five years. The company itself was not charged but its brokerage unit was censured by the SEC. Boyd Jefferies resigned from the company in 1987.
Frank Baxter took over as CEO in 1987 and under his leadership the company focused on diversification, moving beyond its third market niche. In 1990, Jefferies derived approximately 80 percent of its revenues from equity block trades . In that year, following the collapse of Los Angeles-based Drexel Burnham Lambert , the fifth largest investment bank at the time, Jefferies hired 60 of its bankers and traders, including Jefferies' current chairman and CEO, Richard B. Handler . The hires marked the firm's entry into the high yield markets and investment banking. Three years later Jefferies launched its first sector-focused investment banking effort by hiring a group of bankers from Howard Weil, an oil and gas specialty boutique. In March 1994, Jefferies acquired a 25% stake in BBY Ltd , an Australian stockbroking and corporate advisory firm.
Baxter's expansion plans also included global expansion in electronic
trading, corporate finance, international convertible sales and
derivative sales. Jefferies also moved quickly into the fourth market:
off-exchange, computer-based (electronic) trading. In the fourth
market the broker's position was eliminated by the Portfolio System
for Institutional Trading (POSIT) that traded portfolios and matched
buyers and sellers automatically. The company created a wholly owned
In January 2000 Frank Baxter stepped down as president of Jefferies
and relinquished the CEO title later that year. In January 2001,
Chairman and CEO; and John Shaw became sole president
and COO. Handler and Shaw set out to build a fully integrated
investment bank and to develop a merchant bank . The new leadership
proposed to give equity to every employee and diversify the firm's
revenue with asset management , a more aggressive buildup of
investment banking and merchant banking . In September 2001, the firm
moved its headquarters from
* FS Private Investments, renamed Jefferies Capital Partners, 2001
* Lawrence Helfant, a NYSE Floor Broker Unit, August 2001
Beginning in 2009 the firm expanded its European businesses. Its new
European Rates unit, based in London, became an official member of the
Federal Republic of Germany's bidding group in October 2009, a
Gilt-Edged Market Maker (GEMM) appointed jointly by the UK Debt
Management Office and
In June 2009 the firm hired more than 35 healthcare-focused investment banking professionals from UBS . UBS’s health care group, then led by Benjamin Lorello, was a major moneymaker for the firm. The group had closed more than $567 billion in transactions since 2005, generating in excess of $1 billion in revenues for UBS. Since moving to Jefferies, the healthcare group has been ranked the #1 bookrunner in number of healthcare follow-on equity transactions and the #1 ranked financial advisor in number of healthcare M&A transactions.
In November 2011, Jefferies was accused by Egan-Jones of having 77% of its shareholder's equity tied up in the same illiquid sovereign debt securities that just toppled MF Global . This was accompanied by a concurrent large-scale short seller attack and a campaign of what turned out to be misinformation. Handler and the management team responded with unprecedented immediacy and transparency, collapsed 75% of the position to prove the bonds were hedged and highly liquid, sharply reduced the rest of Jefferies balance sheet and publicly addressed every false accusation. This aggressive and unconventional response resulted in an evenutual 100% increase in Jefferies share price from the November lows. Leucadia, a 29% shareholder, later called this event Jefferies' "finest hour."
On April 16, 2012 Jefferies CEO
Richard Handler and
Chairman of the
Executive Committee Brian Friedman formed the Jefferies Global Senior
Advisory Board which includes
James D Robinson III ,
Lord Hollick ,
Michael Goldstein, Bernard Bourigeaud,
On August 1, 2012, Knight Capital took a pre-tax loss of $440m due to a trading glitch. On Sunday Aug 5 the company managed to raise around $400 million from six investors led by Jefferies in an attempt to stay in business after the trading error. Jefferies CEO Richard Handler and Executive Committee Chair Brian Friedman structured and led the rescue and Jefferies purchased $125 million of the $400 million investment and became Knight's largest shareholder.
On November 12, 2012, Jefferies announced its merger with Leucadia,
its largest (28%) shareholder. Leucadia is often referred to as a Baby
Berkshire because of its similarities to
In September 2014, Jefferies announced a $500 million deal with CircleBack Lending, which was the largest of its kind at the time. They aimed to leverage their experience with securitization markets to structure securities upheld by CircleBack Lending assets, which could then be rated and sold to an array of investors. In June 2015, the first securitization from this deal took place, totaling $106 million.
Jefferies has coverage groups spanning across all industries including Aerospace & Defense, Business Services, CleanTech, Consumer & Retail, Energy, Financial Institutions Group, Financial Sponsors, Gaming & Leisure, Healthcare, Industrials, Maritime, Media, Public Finance, Real Estate & Lodging, Technology, and Telecommunications.
The firm also provides investors fundamental research and trade execution in equity, equity-linked , and fixed income securities, including corporate bonds , United States government and agency securities, repo finance, mortgage- and asset-backed securities , municipal bonds , whole loans, and emerging market debt , as well as commodities and derivatives . In addition, Jefferies provides asset management services and products to institutions and other investors.
Jefferies Group LLC 10-K for the 12 months ended 11/30/2013
filed 1/28/2014 (page 156)
Jefferies Group LLC Form 10-Q for the quarterly period ended
August 31, 2014
* ^ "World\'s Most Admired Companies, Securities". Fortune. March
21, 2011. Retrieved July 22, 2013.
* ^ Jefferies Best Place to Work 2011. Here is The City, March 28,
* ^ Goldman and Jefferies stand out in employment polls. Financial
News, March 2, 2012
* ^ "Merger Between Jefferies And Leucadia Secures The Investment
Bank\'s Future". SeekingAlpha. November 13, 2012. Retrieved January
* ^ "