Jefferies Financial : Merchant Banking Fair Value Perspective
June 29, 2020 at 10:55 pm
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Merchant Banking Net Asset Value Overview
As of May 31, 2020 ($ Millions)
(Unaudited) Book ValueBasis for Fair Value Estimate
Linkem
$
214 $
630 Income approach and market comparable method
Real estate assets(1)
541
557 Various
Oil and Gas (Vitesse and JETX) Idaho Timber
576
547 Income approach, market comparable and market transaction method
85
155 Income approach, market comparable and market transaction method
FXCM
130
144 Income approach and market comparable method
Investments in Public Companies Other
127
127 Mark-to-market (same for GAAP book value)
266
323 Various
Total Portfolio
$
1,939
$
2,483
(1) Primarily HomeFed
Estimated Fair Value(2)
(2) The following table reconciles financial results reported in accordance with U.S. GAAP to non‐GAAP financial results. The table above contains non‐GAAP financial information to aid investors in viewing our businesses and investments through the eyes of management while facilitating a comparison across historical periods. However, these non‐GAAP financial measures should be viewed in addition to, and not as a substitute for, reported results prepared in accordance with U.S. GAAP.
Reconciliation of Book Value of Merchant Banking Investments to Estimated Fair Value ($ Millions)
(Unaudited) Book Value May 31, 2020
Fair Value AdjustmentsEstimated Fair Value May 31, 2020
(GAAP)
(Non-GAAP)Linkem
$
214 $
416 $ 630
Real estate assets
541
16 557
Oil and Gas (Vitesse and JETX) Idaho Timber
576
(29) 547
85
70 155
FXCM
130
14 144
Investments in Public Companies Other
127
- 127
266
57 323
Total Portfolio
$
1,939
$
544
$
2,483
Jefferies Financial Group
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Jefferies Financial Group Inc. published this content on 29 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2020 21:53:02 UTC
Jefferies Financial Group Inc. is a global, full-service investment banking and capital markets company. The Company provides advisory, sales and trading, research and wealth and asset management services. Its business segments include Investment Banking and Capital Markets and Asset Management. The Investment Banking and Capital Markets segment includes its securities, commodities, futures and foreign exchange capital markets activities and its investment banking business, which provides underwriting and financial advisory services to clients across various industry sectors in the Americas, Europe and the Middle East, and Asia-Pacific. The Asset Management segment provides alternative investment management services to investors in the United States and overseas and generates investment income from capital invested in and managed by the Company or its affiliated asset managers. It provides mergers and acquisition, debt advisory and restructuring and private capital advisory services.