- Brady has been an ‘integral part’ of lender, Handler says
- Joint venture with MassMutual posted losses earlier this year
Jefferies Group, the investment bank owned by Leucadia National Corp., promoted Tom Brady to president of the company’s leveraged-finance venture with Massachusetts Mutual Life Insurance Co., replacing Carl Toriello.
Toriello will retire from Jefferies Finance at the end of this fiscal year on Nov. 30 and continue to help the operation as a member of its credit committee, the New York-based company said Wednesday in a statement. Brady has been part of the leadership group at Jefferies Finance since it was established in 2004.
Jefferies Chief Executive Officer Richard Handler has been seeking to improve results at the venture after it posted a loss for the first half of this fiscal year. The company reorganized the business in March, naming investment banker Jim Walsh to oversee leveraged-finance origination, people familiar with the matter said at the time.
“Tom joined Jefferies Finance at inception and has been an integral part of its leadership team for the past 12 years,” Handler and Brian Friedman, chairman of Jefferies’s executive committee, said in the statement. “We look forward to working together to continue to provide great service to our borrower clients and investors.”
The finance operation, which originates and syndicates senior secured debt to middle-market companies, reported a net loss of $77.8 million for the six months through May, its worst first half in at least five years, according to a regulatory filing. Jefferies Group hasn’t yet released its quarterly filing to the U.S. Securities and Exchange Commission for the period ended Aug. 31.
MassMutual, founded in 1851, has a AA+ score from S&P Global Ratings and can hold funds for years before paying claims to policyholders. The company seeks an edge by betting on assets that offer higher yields to investors willing to take on holdings with less liquidity.