Leucadia Buys 14% of Jefferies

I noticed that Leucadia (LUK) just bought a 14% stake in Jefferies (JEF). I think we’re going to see more of this in the near future. Jefferies is not in good shape and they need the cash. For our purposes, I think we can consider Leucadia to be private equity firm.
Of course, there’s the question of why so many banks and brokerages are turning to private equity and SWFs instead of the public market. The easy answer is that they’ve been completely shut out of the public markets. The other sources are, to borrow from Willie Sutton, where the money is.
Felix Salmon has more.

Posted by on April 21st, 2008 at 10:33 am


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