Group 1 - Sumitomo Mitsui Banking Corp (SMBC) will invest an additional 135 billion yen ($912.84 million) in U.S. investment bank Jefferies, increasing its stake from 14.5% to up to 20% [1][2] - The two firms will establish a joint venture in Japan to consolidate their wholesale Japanese equities businesses, targeting a launch date of January 2027 [2] - The alliance is expected to enhance SMBC Nikko's ability to meet issuer and investor demand amid a booming Japanese stock market with larger deal sizes and increased capital flows [3] Group 2 - The investment in Jefferies is projected to contribute 50 billion yen to SMBC's profit by the fifth year, with 10 billion yen expected from the equity joint venture [4] - SMBC will provide Jefferies with $2.5 billion in new credit facilities for leveraged lending in EMEA and pre-listing lending in the U.S. [5] - Other Japanese banks, such as Mitsubishi UFJ Financial Group and Mizuho Financial Group, have also made significant investments in U.S. financial institutions [6]