Jefferies and SMBC Expand Global Alliance, Plan Joint Venture for Wholesale Japanese Equity Research and Trading.

Jefferies Financial Group and Sumitomo Mitsui Financial Group have expanded their global strategic alliance, merging their wholesale Japanese equity research, sales, trading, and equity capital markets units. The joint venture aims to create a top-tier platform for institutional clients in Japan and abroad. The two firms will also widen their joint coverage of large sponsor clients in Europe, the Middle East, and Africa, and SMBC will increase its stake in Jefferies from 15% to up to 20%.

Jefferies Financial Group and Sumitomo Mitsui Financial Group (SMFG) have significantly expanded their global strategic alliance, marking a substantial step in their partnership. The two firms have announced a joint venture in Japan, set to commence in January 2027, which will combine their wholesale Japanese equities and equity capital markets operations. This venture aims to create a top-tier platform for institutional clients in Japan and abroad.

The joint venture will merge SMBC Nikko’s domestic strength and balance sheet with Jefferies’ global investor network and advanced trading technology. The partners aim to become the leading provider in Japanese wholesale equities, leveraging their combined expertise to offer exceptional services to clients.

Beyond Japan, the alliance will extend to Europe, the Middle East, and Africa (EMEA), where the firms will jointly originate, underwrite, and execute syndicated leveraged loans for large sponsors. This expansion will provide clients with a comprehensive range of investment and corporate banking services.

As part of the deal, SMBC intends to increase its economic stake in Jefferies from 15% to up to 20% through open market purchases. However, SMBC will continue to own less than 5% of a voting interest in Jefferies. Additionally, SMBC will provide Jefferies with approximately $2.5 billion in new credit facilities to bolster collaboration in areas including EMEA leveraged lending, U.S. pre-IPO financing, and securitization.

The expanded alliance aligns both groups to offer their clients the best financing and advisory solutions to meet their needs around the world, creating exceptional value for clients globally Jefferies Financial Group, Inc. and Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation, and SMBC Nikko Securities Inc. Expand Their Global Strategic Alliance^[1].