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Jefferies Fund Holds $715 Million in First Brands’ Trade Debt: Report
Jefferies’ Point Bonita Capital holds $715 million in First Brands receivables, nearly 25% of its $3 billion portfolio, amid ongoing investigation into possible double factoring.
- On October 8, Jefferies Financial Group Inc. disclosed Point Bonita Capital holds about $715 million in receivables tied to First Brands Group Inc., roughly a quarter of the fund’s $3 billion portfolio.
- First Brands Group LLC stopped directing payments on September 15, 2025 and filed Chapter 11 on September 29, 2025 after investor scrutiny derailed refinancing.
- An independent probe into First Brands’ factoring practices is under way, examining if receivables were factored multiple times; filings show Point Bonita’s $715 million holdings are mostly due from Walmart Inc. and AutoZone Inc., with other creditors including Raistone, Evolution Credit Partners and Katsumi Global.
- Jefferies disclosed its total exposure is $161 million, including its own investment and loans, while Apex-managed CLOs hold about $48 million of First Brands’ term loans, and Jefferies owns no other securities.
- The episode underscores broader risks in trade finance, as court documents earlier this month show UBS Group AG funds face more than half a billion dollars of exposure.
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Jefferies Reveals Fund's $715 Million Exposure to Failed First Brands Amid Relationship Scrutiny
Auto parts supplier First Brands’ bankruptcy is proving a first-class pain in the camshaft for Wall Street. On Wednesday, Jefferies became the latest high-profile firm to disclose exposure to the smoke billowing from the company’s engine failure, in its case via one of its credit funds. The investment bank is also getting side-eyed by other lenders after reports that Jefferies made undisclosed fees from financing First Brands, which may have vio…
Jefferies fund holds $715 million in First Brands’ trade debt: Report
An asset manager controlled by a unit of Jefferies Financial Group Inc. sank nearly a quarter of its $3 billion trade finance portfolio into receivables tied to auto parts supplier First Brands Group Inc., the bank disclosed on Wednesday.
The billions of pounds of US car spare parts manufacturer First Brands is a clear warning to return hunters and fair weather investors.
Nasreen Kasenally and supporter Marie-Christine Crewe blamed for risk failures in Big US broke? Many CS Indians instead of UBS cracks in Zurich. Not only the UBS sits deep in the First Brands mess. The US bank Jefferies is involved with the crashed car supplier with over 700 million dollars, according to the FT today. This surpasses the 500 million Swiss. It makes the situation better for [...]
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