UPDATE 4-Jefferies third-quarter profit misses expectations as M&A sputters

(Changes dateline, adds detail on expansion plans in paragraph 10) By Niket Nishant and Lananh Nguyen Sept 28 (Reuters) - Jefferies Financial Group reported a smaller-than-expected third-quarter profit on Wednesday as lingering economic uncertainty kept dealmaking in check, but the firm said it was hiring more managing directors for next year. It forecast a more "normal" investment banking environment in 2024. The biggest hit to earnings came from the asset management unit, where revenue plummeted 97% from last year, which had included results from units Jefferies has since shed. But market conditions are beginning to improve, the bank said, bolstering the view that deals are starting to pick up pace after the Federal Reserve signaled it is nearing the end of its tightening cycle. Investment banking revenue was $644.6 million, about 2% lower than last year but nearly 28% higher than the prior quarter. "The markets are thawing out and beginning to warm a bit," Jefferies President Brian Friedman said in an interview. "The market for the services we provide has pretty good demand across the board - it needs to be translated into transactions," he said, citing recent initial public offerings and a pickup in merger discussions. Jefferies said it expects around 360 managing directors in its investment banking franchise at the beginning of 2024, up from the 299 that it started this year with. "As long as I've been involved in running investment banking firms, the opportunity to hire and grow is best in downturns," Friedman said. "One needs to have the fortitude and the commitment to make the moves that are available in more challenging moments." The company has opened offices in Israel and Brazil and beefed up investment banking presence in Dubai and India, Friedman said. It also plans to expand into Canada before the end of the year. The bank's results are often viewed as a prelude to earnings at Wall Street titans such as JPMorgan Chase, Goldman Sachs Group and Morgan Stanley. Jefferies' profit slumped 74% to $51.4 million, or 22 cents per share, for the three months ended Aug. 31, compared to analysts' average estimate of 33 cents per share, according to LSEG data. Here is a look at the new investment banking MDs in financial year 2023: Role Executive Previous organizati on Executive John Miller Barclays Co-Chair of Global Investment Banking and capital markets Chairman of Ron Eliasek Bank of TMT Banking America MD, tech Jon Credit team Gegenheimer Suisse Global Head Stas JPMorgan of Byhovsky Healthcare IT Banking Vice Rich Siegel Barclays Chairman, Industrials MD, Sam Jackson Barclays Industrials Vice Mark Hudson Barclays Chairman, overseeing Industrials M&A EMEA Head of Gavriel Barclays Consumer Lambert Retail and Global Co-Head of Retail Energy David Guggenheim Transition Dolezal, Banking team Kyle Baker and Jeff Tang Financial Evan Barclays Services Rothenberg, Group Kurt banking Kohlmeyer capabilities and Mike Guinge International expansion: Role Previous Region Executive organization Europe & Head of Igor De UBS UK France Limur Investment Banking Coverage Europe & Vice Sam Dean Barclays UK Chairman of Investment Banking Europe & Co-Heads, Glenn Rothschild UK EMEA Cronin and Lazard, Restructuri and David respectively ng group Burlison Europe & Country Andrea Credit Suisse UK Head, Italy Donzelli APAC Head of SEA Amrit Credit Suisse M&A Kolluru APAC Vice Rizal Credit Suisse Chairman, Gozali SEA and Head of Indonesia APAC Co-Head of Rehan Credit Suisse Asia IB Anwer APAC Head of Felicity Credit Suisse Asia ECM Chan Syndicate and SEA ECM Origination APAC Private Dennis HI capital Kwan Transformatio advisory nal Fund Australi Vice Dominic Macquarie a Chairman Meagher Industrials Australi Vice Mark Morgan a Chairman of Burmeiste Stanley Australia r Capital Markets Australi Head of Julian Gresham a Infrastruct Babich ure Banking Australi Lead, ECM Mike Macquarie a Syndicate Johnson LATAM Lead, Alejandro JPMorgan Brazil Guevara Investment Banking (Reporting by Niket Nishant in Bengaluru, Lananh Nguyen and Nupur Anand in New York; Additional reporting by Pritam Biswas; Editing by Pooja Desai)