Jefferies' record equities haul offsets asset management slump

Sept 28 (Reuters) - Jefferies Financial ‌beat third-quarter profit ​estimates ​on Monday, as higher fees from advising on deals and underwriting stock sales were complemented by a record haul in ‌equities trading business.

Its asset management business, however, took a hit, ⁠with fees and investment return revenue shrinking to $34 million from $84 million a year earlier. ‌That reflects weaker performance ‌across several fund strategies, including Point Bonita, which had exposure to bankrupt auto-parts supplier First Brands.

• Global dealmaking has crossed $4 trillion this year ​as corporate boardrooms look past market volatility, taking advantage of an easier regulatory backdrop to scale their businesses.

• Jefferies' investment banking revenue ⁠jumped 17% to $1.33 billion, underpinned by record advisory business performance and strong equity underwriting.

• The New ​York-based investment bank's results are closely watched on Wall Street for an early glimpse into quarterly investment banking trends, ​before large US banks report earnings ‌in the coming weeks.

• Revenue from capital markets business, which houses Jefferies' trading desks, jumped 11% to $802 million, driven ⁠by record equities trading performance.

• "We are very optimistic about the balance of 2026 and our momentum heading into 2027, supported by the breadth and strength of ⁠our current backlog and new business activity," CEO Richard Handler and President Brian Friedman ​said.

• Handler and Friedman said they remain confident in the long-term outlook for the asset management business as Jefferies continues to reposition the platform.

• Profit attributable to ‌Jefferies shareholders was $260.6 million, or $1.08 per share, in the three months ended August 31. Analysts, on average, estimated ‌a profit of $1 per share, according to data compiled by LSEG.

• Its ⁠shares were down 1.5% in ‌extended trading, and have ​fallen roughly 24% this year.

(Reporting by Arasu Kannagi Basil in Bengaluru and Saeed Azhar in New York; Editing by ‌Shilpi Majumdar)

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