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===1988-1999===
===1988-1999===
Frank Baxter took over as CEO and under his leadership, the company focused on diversification, delving beyond its third market niche. In 1990, Jefferies derived approximately 80 percent of its revenues from equity [[block trade]]s. In that year, Los Angeles-based [[Drexel Burnham Lambert]], the fifth largest investment bank at the time, collapsed following the conviction of its leading investment banker, [[Michael Milken]]. Following the collapse of Drexel, Jefferies hired 60 bankers and traders from the defunct bank, most notably Jefferies' current chairman and CEO, [[Richard B. Handler]], marking its entry into the high yield markets and investment banking. Three years later, Jefferies launched its first sector-focused investment banking effort, 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), which traded portfolios and matched buyers and sellers automatically. The company created a wholly owned subsidiary, [[Investment Technology Group]] in 1987 to run POSIT. [[Investment Technology Group]] was eventually spun off as a separate public company in 1999.<ref>[http://www.nytimes.com/1998/03/19/business/company-news-jefferies-group-to-split-itself-into-2-parts.html Jefferies Group to split itself into 2 parts]. New York Times, March 19, 1998</ref>
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), which traded portfolios and matched buyers and sellers automatically. The company created a wholly owned subsidiary, [[Investment Technology Group]] in 1987 to run POSIT. [[Investment Technology Group]] was eventually spun off as a separate public company in 1999.<ref>[http://www.nytimes.com/1998/03/19/business/company-news-jefferies-group-to-split-itself-into-2-parts.html Jefferies Group to split itself into 2 parts]. New York Times, March 19, 1998</ref>


Revision as of 10:35, 29 April 2013

Jefferies LLC
Company typeSubsidiary
IndustryInvestment services
Founded1962
Headquarters520 Madison Avenue
New York City, New York, United States
Area served
Worldwide
Key people
Richard B. Handler, Chairman,CEO and President
ProductsFinancial Services
Investment Banking
RevenueIncrease US$ 3.871 billion (FY 2012)
Increase US$ 492 million (FY 2012)
Increase US$ 282 million (FY 2012)
Total assetsIncrease US$ 36.294 billion (FY 2012)
Total equityIncrease US$ 3.436 billion (FY 2012)
Number of employees
3,804
ParentLeucadia National
Websitewww.jefferies.com

Jefferies LLC, is an American global investment bank and institutional securities firm. It is the largest independent bank in the U.S. The firm provides clients with capital markets and financial advisory services, institutional brokerage, securities research, and asset management.

Jefferies offers mergers and acquisitions, restructuring, and other financial advisory services. 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.

Headquartered in New York City, Jefferies has over 30 offices worldwide including Boston, Houston, Los Angeles, San Francisco, Silicon Valley area as well as in leading financial centers around the world that include London, Frankfurt, Zürich, Hong Kong, Singapore, Shanghai, Tokyo, and Mumbai.[1]

Jefferies was named one of the World’s Most Admired Companies by Fortune magazine in 2011,[2] Best Place to Work in the Financial Industry by Here Is The City News in 2010, 2011 and 2012,[3] and one of the best companies to work for in the UK by The Sunday Times.[4]

On November 12, 2012, Jefferies announced its merger with Leucadia, its largest shareholder. Jefferies was valued at $3.8 billion and at the time of the acquisition. Jefferies remains independent and is the largest operating company within Leucadia. On March 1, 2013, along with the closing of the merger, Jefferies & Company, Inc. was converted to a limited liability company and rebranded Jefferies LLC.

History

1962 - 1987

Jefferies was founded by Boyd Jefferies in 1962. The firm started with $30,000 in borrowed capital, which Boyd Jefferies used to purchase a seat on the Pacific Coast Stock Exchange.[5] In the early years, the firm was a successful trader and pioneer in the what would be called the "third market", which allowed for the trading of listed stocks directly between institutional investors in an over-the-counter style, providing liquidity and anonymity to buyers. In addition to its third market niche, Jefferies pioneered use of the split commissions in 1964.

In 1987, Boyd Jefferies was charged by the government and the Securities and Exchange Commission with two securities violations: "parking" stock for 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.[6]

1988-1999

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), which traded portfolios and matched buyers and sellers automatically. The company created a wholly owned subsidiary, Investment Technology Group in 1987 to run POSIT. Investment Technology Group was eventually spun off as a separate public company in 1999.[7]

Since 2000

In January 2000, Frank Baxter stepped down as president of Jefferies and relinquished the CEO title later that year. In January 2001, Handler became 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 Los Angeles to New York. During this period, Jefferies built its investment banking division primarily by acquiring boutique advisory firms with specific sector expertise, most notably Randall & Dewey (energy) and Broadview (technology). Significant acquisitions during this period included:

  • FS Private Investments, renamed Jefferies Capital Partners, 2001
  • Lawrence Helfant, an institutional trading specialist, August 2001[8]
  • Quarterdeck Investment Partners, an aerospace and defense advisory firm, December 2002
  • Broadview International, a technology-focused advisory firm, December 2003
  • Randall & Dewey, an energy-focused advisory firm, February 2005
  • Helix, a private equity fund placement firm, May 2005
  • LongAcre Partners, a media advisory firm, May 2007
  • Putnam Lovell, a financial services advisory firm, July 2007[9]
  • Depfa First Albany Securities, municipal securities, March 2009
  • Bache, FX, commodities and options trading, July 2011
  • Hoare Govett, corporate broking, February 2012

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.[10][11]

References

  1. ^ "From Boyd to men". The Economist. 30 June 2012. Retrieved 30 August 2012.
  2. ^ Jefferies named one of the World's most admired companies by Fortune Magazine. Jefferies Press Releases, March 14, 2011
  3. ^ Jefferies Best Place to Work 2011. Here is The City, March 28, 2011
  4. ^ Goldman and Jefferies stand out in employment polls. Financial News, March 02, 2012
  5. ^ Boyd L. Jefferies Dies at 70; Headed Institutional Broker. New York Times, August 25, 2001
  6. ^ The Trials And Errors Of Boyd Jefferies. New York Times, January 15, 1989
  7. ^ Jefferies Group to split itself into 2 parts. New York Times, March 19, 1998
  8. ^ Jefferies Group to acquire Lawrence Helfant. New York Times, August 21, 2001
  9. ^ Canada: Jefferies Acquires An Advisory Unit. Reuters, June 22, 2007
  10. ^ UBS Accuses Jefferies of Raiding Health Care Group. The New York Times, June 25, 2009
  11. ^ Jefferies Healthcare. Jefferies Website, March 26, 2013
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