Jefferies Financial Group

Jefferies Financial Group Inc. is an American financial services company based in New York City and listed on the Fortune 1000.[3][4][5]

Jefferies Financial Group Inc.
FormerlyLeucadia National Corporation[1]
TypePublic
IndustryConglomerate
FounderIan M. Cumming
Joseph S. Steinberg
HeadquartersNew York City
Key people
Richard B. Handler, CEO
Brian P. Friedman, President
Joseph S. Steinberg, Chairman[2]
Revenue US$11.436 billion (2017)[2]
US$167.4 million (2017)[2]
Total assets US$47.2 billion (2017)[2]
Total equity US$10.1 billion (2017)[2]
Number of employees
12,700, including consolidated subsidiaries (2017)[2]
Websitejefferies.com

Investments

The company's major holdings are as follows:[2]

Financial Services
  • Jefferies Group (100%) - investment banking & capital markets
  • Berkadia Commercial Mortgage (50/50 joint venture with Berkshire Hathaway) - commercial mortgage banking, investment sales and servicing
  • HomeFed (65% ownership) - Builder of Master Planned Communities, Income Properties, Land Holdings
  • FXCM (49.9%) - online foreign exchange trading
  • Foursight Capital (100%) - vehicle finance

Others
  • National Beef Packing Company (79%) - beef processing
  • HRG Group (23%) - insurance and consumer products
  • Vitesse Energy (96%) - oil and gas exploration and development
  • Juneau Energy (98%) - oil and gas exploration and development
  • Garcadia Holdings (75%, Joint venture with Ken Garff Automotive Group) - automobile dealerships
  • Linkem (57%) - fixed wireless broadband services
  • Golden Queen (35%) - a gold and silver mining project
  • Idaho Timber (100%) - manufacturing

History

In 1970, Ian Cumming and Joseph S. Steinberg both graduated in from Harvard Business School and went to work for Carl Marks & Company, an investment bank.[6]

In 1979, they gained control of Talcott National Corporation, sold the James Talcott Factors division, and, in 1980, they renamed the company Leucadia.[6]

In 1984, the company made a $61 million profit on its $77 million investment in Avco Corporation by forcing the sale of the company to Textron.[6]

In 1991, the company acquired insurer Colonial Penn from Florida Power & Light for $150 million.[7]

In 1997, the company sold the life insurance division of Colonial Penn to Conseco for $460 million[8] and sold the auto insurance division of Colonial Penn to GE Capital for $950 million.[9]

In 1998, the company sold Charter National Life Insurance and Intramerica Life Insurance to Allstate.[10]

In 2002, the company received a 44% stake in WilTel Communications Group as a result of a bankruptcy reorganization.[11]

In May 2003, the company made an offer to acquire the remaining shares of WilTel Communications Group that it did not already own.[12]

In August 2003, after increasing its offer, the company acquired the remaining shares of WilTel Communications Group.[13]

In September 2003, the company acquired RehabWorks.[14]

In January 2004, the company financed Pershing Square Capital Management, a hedge fund managed by Bill Ackman.[15]

In July 2004, the company sought, but failed, to buy a controlling stake in MCI Communications.[16][17] In September 2004, the company sold its stake in MCI for a $20 million profit.[18]

In 2005, the company sold WilTel Communications Group to Level 3 Communications for a $180 million profit.[19]

In 2007, the company acquired ResortQuest International from Gaylord Hotels for $35 million.[20]

In 2009, the company entered into a 50/50 joint venture with Berkshire Hathaway called Berkadia, which acquired the North American loan origination and servicing business of Capmark Financial Group.[21]

In 2010, the company sold ResortQuest International to Wyndham Worldwide for $56 million in cash.[22]

In 2011, the company acquired a 79% interest in National Beef Packing Company for $867.9 million.[23][24]

In 2012, the company proposed building a $3 billion syngas facility in south Chicago to convert coal and petroleum waste into natural gas; however, the plant never received legislative approval.[25]

In 2013, the company merged with Jefferies Group and Richard Handler became chief executive officer of the company.[26]

In 2015, the company made an investment in FXCM after FXCM suffered losses due to the appreciation of the Swiss Franc.[27]

In 2016, the company restructured its investment in FXCM.[28]

In May 2018, the company was renamed Jefferies Financial Group.[3][4]

References
  1. "Leucadia National Corporation Changes Name to Jefferies Financial Group Inc". www.businesswire.com. May 23, 2018. Retrieved August 8, 2020.
  2. Leucadia National Corporation 2017 Form 10-K Annual Report
  3. Prang, Allison (April 9, 2018). "Leucadia to Focus More on Financial Business". Wall Street Journal. ISSN 0099-9660. Retrieved July 2, 2018.
  4. "BRIEF-Leucadia National Corp Changes Name To Jefferies Financial Group Inc". Reuters. May 23, 2018. Retrieved May 28, 2018.
  5. "Fortune 500 Companies 2019: Who Made the List". Fortune. Retrieved September 25, 2019.
  6. CRUDELE, JOHN (May 25, 1985). "LEUCADIA: SUCCESSFUL LONER". The New York Times.
  7. KOLODY, TRACY (April 6, 1991). "Fpl Group Finds Buyer For Insurer Colonial Penn Brings In $150 Million". Sun-Sentinel.
  8. "Conseco Planning to Acquire Colonial Penn". The New York Times. Bloomberg News. May 1, 1997.
  9. "GE Capital to Buy Colonial Penn". Los Angeles Times. Reuters. July 1, 1997.
  10. "Allstate to buy 2 Leucadia companies". Deseret News. Bloomberg News. December 22, 1998.
  11. "Williams Communications emerges from bankruptcy as WilTel". American City Business Journals. October 16, 2002.
  12. "Leucadia National Corporation Proposes to Acquire WilTel Communications Group, Inc. Common Stock" (Press release). Business Wire. May 15, 2003.
  13. "Hardware: Leucadia To Acquire Remainder Of Wiltel". The New York Times. Bloomberg News. August 13, 2003.
  14. George, John (September 29, 2003). "Leucadia National buys RehabWorks". American City Business Journals.
  15. Swarts, Will (January 12, 2004). "Gotham Partners' Ackman Back in Hedge Fund Game". TheStreet.com.
  16. BELSON, KEN (July 13, 2004). "Leucadia Seeks to Buy Controlling Stake in MCI". The New York Times.
  17. Tharp, Paul (July 13, 2004). "LEUCADIA EYES MCI TAKEOVER". The New York Post.
  18. Stern, Christopher (September 28, 2004). "Declared Suitor Sells Its Stake In MCI". The Washington Post.
  19. "Leucadia National Corporation Completes Sale of WilTel Communications Group, LLC to Level 3 Communications, Inc" (Press release). Business Wire. December 23, 2005.
  20. "Gaylord Sells Mainland ResortQuest Business". Hotel Business Review. June 5, 2007.
  21. "Berkadia Commercial Mortgage LLC Completes Acquisition of Capmark's North American Loan Origination and Servicing Business" (Press release). Business Wire. December 11, 2009.
  22. "Wyndham to buy ResortQuest for $56 million". Bloomberg News. NJ.com. September 22, 2010.
  23. "Leucadia National Corporation Announces Agreement to Acquire Control of National Beef and Declares $0.25 Per Share Cash Dividend" (Press release). Business Wire. December 5, 2011.
  24. Hawleyt, Brenna (December 6, 2011). "National Beef owners reach $867.9M deal to sell majority stake to Leucadia". American City Business Journals.
  25. Murtaugh, Dan (January 12, 2012). "Illinois ruling hurts Leucadia synthetic gas proposal". The Birmingham News.
  26. "Leucadia National Corporation and Jefferies Group, Inc. Merger to Be Effective March 1, 2013" (Press release). Business Wire. February 28, 2013.
  27. Stone, Mike; Chavez-Dreyfuss, Gertrude; Toonkel, Jessica (January 16, 2015). "FX broker FXCM gets rescue from Jefferies parent Leucadia". Reuters.
  28. "Leucadia and FXCM Complete Long-Term Partnership Agreement" (Press release). GlobeNewswire. September 1, 2016.

Official website

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