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# Jefferies Says Hiring Peak Has Passed, Hildene Deal Targets First-Quarter Close, Japan Venture Starts In January
- URL: https://www.bullished.co/jefferies-says-hiring-peak-has-passed-hildene-deal-targets-first-quarter-close-japan-59423610/
- Published: 2026-10-20T21:35:58.000Z
- Updated: 2026-10-28T19:24:23.000Z
- Description: Management at its investor meeting pointed to trailing 12-month net revenues of $8.5 billion and a 13.1% return on tangible equity.
- Author: Matteo Parrino
- Tags: Earnings, JEF, Industry: Financials

[Jefferies Financial Group](https://www.bullished.co/tag/jef/)'s trailing 12-month net revenues reached [$8.5 billion](https://www.sec.gov/Archives/edgar/data/0000096223/000114036126040269/ef20084130%5Fex99-1.htm?ref=bullished.co), with net earnings above $935 million and a 13.1% return on tangible equity, CFO Matt Larson told its investor meeting on Monday. An [8-K filed Tuesday](https://www.sec.gov/Archives/edgar/data/0000096223/000114036126040269/ef20084130%5F8k.htm?ref=bullished.co) attached the transcript, in which executives said the heaviest hiring is behind them.

## The numbers management put up

Larson said investment banking and capital markets now make up over 90% of revenues. Since 2023, he said, that segment's revenues rose 74%, from $4.5 billion to $7.8 billion.

Pre-tax profit in the segment rose over 150%, from $500 million to about $1.3 billion, lifting its pre-tax margin from 11% to over 16%. Larson said profit growth outpaced revenue growth by two times.

The adjusted non-compensation expense ratio, which excludes brokerage and clearing costs because they vary with revenue, fell from 30% to 24%. Adjusted non-compensation expenses rose 37%, from $1.3 billion to $1.7 billion, against a 75% rise in adjusted net revenues from $4.2 billion to $7.3 billion.

President Brian Friedman said investment banking managing directors moved only from 364 to 376 over about two years.

## Hiring, Hildene and Japan

CEO Rich Handler said the heavy investment in people was made when the market was tough, and "I think that point has passed." Targeted hiring will continue. He said he expects compensation and operating leverage to "move in the right direction."

Larson said 2026 is the peak of the amortization from the hiring push. With identical revenues next year, he said, the firm would get compensation leverage, though he could not predict revenues.

On returns, Handler said the firm is at 13% and, "with no promises," heading toward mid-teens return on tangible equity.

Jefferies will invest a further $340 million in the Hildene and SILAC deal, which Nicholas Daraviras, Co-President of Leucadia Asset Management, said was funded by reductions in the asset-management portfolio. Handler said the close looks like the first quarter of next year, given the regulatory process. Management expects more consistent and predictable earnings from it.

The Japanese equities joint venture with SMBC Nikko will start in early January, Handler said. Bejarano referred to its launch in January 2027.

## Questions on asset management

Analyst Kurt Feuerman of AllianceBernstein noted the stock was down 3% that day and asked about market focus on asset management. Handler pointed to the firm's purchase of about 2.7 million shares in the prior two and a half weeks.

Handler also said the firm's strength and scale are "perhaps not fully understood." Asked about Radiant World exposure, Friedman said total exposure approaches $500 million, a relatively modest portion is for Jefferies' account, and the firm has not reserved for it.

Handler said the Hildene close looks like the first quarter, and the Japan venture is set to start in early January.

Learn

- [Item 7.01: Regulation FD disclosure →](https://www.bullished.co/learn/8-k-items-explained/#item-701-regulation-fd-disclosure)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Jefferies Financial Group Inc. (JEF)](https://www.sec.gov/Archives/edgar/data/0000096223/000114036126040269/ef20084130%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ef20084130\_ex99-1.htm — Jefferies Financial Group Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000096223/000114036126040269/ef20084130%5Fex99-1.htm?ref=bullished.co) — SEC EDGAR

### More on Jefferies Financial Group

- [Jefferies Puts Record $4.7 Billion Investment Banking Revenue Atop Its Investor Deck, With Leverage At 9.1x](https://www.bullished.co/jefferies-puts-record-4-7-billion-investment-banking-revenue-atop-its-investor-deck-with-2366d41c/)
- [Jefferies' 10-Q Shows A $23.3 Million Higher Quarterly Profit Than Its September 28 Release](https://www.bullished.co/jefferies-10-q-shows-a-23-3-million-higher-quarterly-profit-than-its-september-28-release-b19d3076/)
- [Jefferies LLC Pays $650,000 To Settle SEC Case Over At Least 7,700 Flawed Trading-Data Submissions](https://www.bullished.co/jefferies-llc-pays-650-000-to-settle-sec-case-over-at-least-7-700-flawed-trading-data-0df3517d/)

[All Jefferies Financial Group (JEF) coverage →](https://www.bullished.co/tag/jef/)