Japan’s SMBC Increases Stake in Jefferies Financial to Nearly 11%

Jefferies Financial Group Expands Alliance with Sumitomo Mitsui Banking Corp

NEW YORK (Reuters) – Jefferies Financial Group announced on Monday that Japan’s Sumitomo Mitsui Banking Corp (SMBC) has significantly increased its stake in the U.S. investment bank to 10.9%, strengthening a partnership that began in 2021.

As part of this expanded relationship, Toru Nakashima, the CEO of Sumitomo Mitsui Financial Group, the parent company of SMBC, has joined Jefferies’ board of directors.

SMBC has plans to increase its ownership of Jefferies to as much as 15%, a goal outlined in previous announcements.

In this collaboration, Jefferies’ dealmakers lead initiatives in mergers and acquisitions (M&A) and equity capital markets (ECM), while SMBC bankers concentrate on corporate lending and investment-grade debt issuance.

"There’s a robust pipeline of activities in M&A, ECM, and leveraged financing involving both SMBC and Jefferies," remarked Jefferies President Brian Friedman. "We have seen several completed deals, with more on the way."

SMBC’s strong balance sheet and global client base have enhanced Jefferies’ presence in international transactions.

"In the short time our strategic alliance has been in place, it has already led to significant opportunities," Nakashima stated.