Jefferies Financial : Merchant Banking Fair Value Perspective

Merchant Banking Net Asset Value Overview

The table below presents estimated fair values of our largest Merchant Banking investments. We anticipate discontinuing this disclosure going forward as we believe the wind down of the portfolio diminishes the value of this information, which requires meaningful management time and expenditure to produce. We will continue to discuss developments at the portfolio companies as they arise.

As of November 30, 2020

($ Millions)

	(Unaudited)		Estimated
	Book Value		Fair Value(2)	Basis for Fair Value Estimate
Linkem	$	199	$	685	Income approach and market comparable method
Real Estate Assets(1)		532			542	Various
Oil and Gas (Vitesse and JETX)		527			529	Income approach, market comparable and market transaction method
Idaho Timber		86			165	Income approach and market comparable method
FXCM		133			164	Income approach and market comparable method
Investments in Public Companies		192			192	Mark-to-market (same for GAAP book value)
Other		271			382	Various
Total Portfolio
$	1,940	$	2,659

1. Primarily HomeFed
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)					Estimated
	Book Value					Fair Value
	November 30,		Fair Value		November 30.
		2020		Adjustments			2020
		(GAAP)					(Non-GAAP)
Linkem	$	199	$	486	$	685
Real Estate Assets		532			10			542
Oil and Gas (Vitesse and JETX)		527			2			529
Idaho Timber		86			79			165
FXCM		133			31			164
Investments in Public Companies		192			-			192
Other		271			111			382
Total Portfolio
$	1,940	$	719	$	2,659

Jefferies Financial Group Inc.