Jefferies Financial Group Welcomes Yoshihiro Hyakutome as New Board Member Amid Strategic Alliance with SMBC Group

In a significant move signaling deepening collaboration, Jefferies Financial Group Inc. has announced the nomination of Yoshihiro Hyakutome to its Board of Directors. This decision comes amidst a strengthening partnership with Sumitomo Mitsui Financial Group, Inc. (SMBC Group), as both firms prepare to launch a joint venture focused on Japan equities in January 2027.

Yoshihiro Hyakutome, who currently holds the position of Deputy President, Executive Officer, and Co-Head of the Global Business Unit at SMBC Group, will replace Toru Nakashima, CEO of SMBC Group, on the Jefferies Board. Nakashima has served as a board member since August 2024, following SMBC Group's investment in Jefferies, which surpassed 10%. He will continue to serve until the end of his term.

The decision to nominate Mr. Hyakutome comes as the Global Strategic Alliance between Jefferies and SMBC Group transitions from planning to operational execution. The Jefferies Board has unanimously approved Hyakutome’s nomination, and he will stand for election at the upcoming Jefferies Annual Meeting of Shareholders.

In line with this strategic collaboration, SMBC Group has announced plans to increase its economic ownership of Jefferies to up to 20%. This will involve the purchase of approximately 13 million additional common shares of Jefferies in the open market, subject to regulatory approvals. However, it is noteworthy that SMBC will maintain a voting interest of less than 5% in Jefferies.

Toru Nakashima expressed his confidence in the partnership, stating, “My time on the Jefferies board has confirmed that our Global Strategic Alliance with Jefferies was and is the smart strategic step forward for SMBC Group.” He emphasized the importance of enhancing collaboration and investment to achieve mutual goals in serving their combined client base.

Yoshihiro Hyakutome expressed his enthusiasm for joining the board, stating, “I am truly delighted to have been nominated as a candidate to join the Jefferies Board of Directors.” He highlighted his commitment to advancing the strategic vision laid out by Nakashima and the Jefferies team, aiming to deepen the collaboration and deliver increased value for clients and stakeholders worldwide.

Rich Handler, CEO of Jefferies, and Brian Friedman, President, also expressed their appreciation for Nakashima’s contributions over the past 18 months and conveyed their excitement about Hyakutome’s nomination, underscoring their optimism about the future of the partnership.

As both firms look towards the future, the upcoming joint venture in Japan is set to be a pivotal step in solidifying their strategic alliance. With Hyakutome’s experience since the inception of the partnership in 2021, Jefferies is poised to leverage his insights and expertise to navigate this new chapter effectively.

This move not only strengthens the board's governance but also signals Jefferies' commitment to enhancing its global reach and capabilities in the financial services sector. The annual meeting of shareholders will be a crucial event, with stakeholder interests in alignment as the firm prepares for significant growth and operational milestones in the coming years.

With the investment landscape continuously evolving, Jefferies' proactive approach in fostering strategic partnerships is a testament to its commitment to innovation and excellence in serving its diverse clientele.