GlobeNewswire Inc | Feb 11, 2021 07:00AM EST

February 11, 2021

-- Reports Record 4Q20 US GAAP Net Income of $90.5 million, or $2.98 per diluted share -- Economic Operating Income in 4Q20 of $138.7 million, or $4.58 per diluted share (Non-GAAP) -- Record FY20 US GAAP Net Income attributable to Cowen Inc. stockholders of $209.6 million and record FY20 Economic Operating income of $335.9 million (Non-GAAP) -- Record quarter and year for Investment Banking and Brokerage -- Maintained quarterly cash dividend of $0.08 per common share

NEW YORK, Feb. 11, 2021 (GLOBE NEWSWIRE) -- CowenInc. (NASDAQ: COWN) (Cowen or the Company) today announced its operating results for the fourth quarter and full year ended December31, 2020.

Jeffrey M. Solomon, Chair and Chief Executive Officer of Cowen, said, "I am proud of the dedication and hard work the Cowen team exhibited to achieve the strongest results in the firm's history. Because 2020 was a year of tremendous challenge, uncertainty and hardship for many, I am equally proud of our efforts to help our clients, our communities, and each other. We are grateful every day to be in a position to help our clients help others by solving their problems and enabling them to realize their visions. We are thankful that they put their trust in us. As we look ahead to 2021, we strive to live by our core values of vision, empathy, sustainability and tenacious teamwork."

Fourth Quarter 2020 Financial Summary

US GAAP Economic Operating Income (Non-GAAP) Three Months Ended Three Months Ended December 31, December 31,($ in millions, except 2020 2019 ? % 2020 2019 ? %per share information) Revenue/Economic $ 502.9 $ 281.1 79 % $ 512.7 $ 248.3 106 %Proceeds (Non-GAAP)Net income (loss)attributable to commonstockholders/Economic $ 90.5 $ 3.5 2,486 % $ 138.7 $ 16.3 751 %Operating Income(Non-GAAP)Earnings (loss) per $ 2.98 $ 0.11 2,609 % $ 4.58 $ 0.53 764 %common share (diluted) Note: Throughout this press release the Company presents non-GAAP financialmeasures that are not prepared in accordance with accounting principlesgenerally accepted in the United States of America ("US GAAP"). Areconciliation of these non-GAAP measures appears under the section,"Reconciliation of US GAAP (Unaudited) to Non-GAAP Measures."

Fourth Quarter and Full Year 2020 Operating Financial Highlights

? Record Investment Banking performance: ? Record quarter and year for overall revenues, capital markets issuance and advisory and M&A revenues ? Broad strength across products. Biotech, tools & diagnostics and sustainability all key earnings drivers ? Record M&A proceeds driven by several high-fee engagements. Deal pipeline now at record high level ? Record Brokerage performance with continuing share gains: Markets Economic Proceeds (Non-GAAP) of $657.3 million ($2.60 million/ ? trading day) in FY20, with a 4Q20 record high of $188.3 million ($2.94 million/day) (Non-GAAP).^1 ? Strong growth in electronic trading, non-US execution, prime services, outsourced trading, securities finance, and special situations ? Strong momentum in investment management: ? Management fees at highest annual level since 2016, four investment strategies grew AUM year-over-year ? Invested capital: Full-year 2020 investment income economic proceeds (Non-GAAP) of $29.2 ? million from gains in balance sheet investments including Cowen Healthcare Investments and the Merchant Banking portfolio, including the sale of the Company's common shares of Nikola Corporation. As of December 31, 2020, the Company had invested capital in Op Co ? totaling $722.8 million, down from $784.2 million as of September 30, 2020. As of December 31, 2020, the Company had invested capital in Asset Co ? totaling $131.0 million, an increase of $2.3 million from the invested capital invested as of September 30, 2020. The largest Asset Co investments were the investment in Italian wireless ? broadband provider Linkem S.p.A ($82.7 million), private equity funds Formation8/Eclipse ($39.2 million) and other private investments ($9.1 million). ? Assets under Management As of December31, 2020, the Company had assets under management of $12.5 ? billion, up $0.7 billion from September 30, 2020 and an increase of $1.1 billion from December 31, 2019, respectively.



Capital Optimization Update

As of December31, 2020, Cowen had book value of $32.34 per common share and tangible book value per common share of $25.95, up from book value of $30.48 and tangible book value of $24.32 at September 30, 2020, and up from book value of $24.77 and tangible book value of $18.72 at December31, 2019.

In the fourth quarter of 2020, the Company repurchased $3.9 million of its common stock, or 165,040 shares, at an average price of $23.46 under the Company's existing share repurchase program. Outside the share repurchase program, in the fourth quarter of 2020 the Company acquired approximately $8.9 million of stock as a result of net share settlements relating to the vesting of equity awards, or 361,082 shares, at an average price of $24.51.

For full-year 2020, the Company repurchased 3,139,751 shares for $47.3 million, or an average price of $15.07 under the Company's existing share repurchase program. Outside the share repurchase program, in 2020 the Company acquired approximately $15.1 million of shares as a result of net share settlements relating to the vesting of equity awards, or 866,784 shares at an average price of $17.48.

Maintained Quarterly Cash Dividend

The Company maintained its quarterly cash dividend payable on its common stock. On February 10, 2021, the Board of Directors declared a cash dividend of $0.08 per common share. The dividend will be payable on March 15, 2021, to stockholders of record on March 1, 2021.

Select Balance Sheet Data

(Amounts in millions, except per share information) December 31, December 31, 2020 2019Cowen Inc. stockholders' equity $ 969.5 $ 809.9Common equity (CE) $ 868.2 $ 708.5Tangible common equity (TCE) $ 696.7 $ 535.6 Book value per share (CE/CSO) $ 32.34 $ 24.77Tangible book value per share (TCE/CSO) $ 25.95 $ 18.72 Common shares outstanding (CSO) 26.8 28.6

Note: Common Equity (CE) is calculated as Cowen Inc, stockholders equity less our preferred stock issuance.Tangible common equity (TCE) is calculated as common equity (CE) less goodwill and net intangible assets.

Cowen Inc.US GAAP Preliminary Unaudited Condensed Consolidated Statements of Operations(Dollar and share amounts in thousands, except per share data) Three Months Ended Twelve Months Ended December 31 December 31 2020 2019 2020 2019Revenue Investment banking $ 266,135 $ 102,922 $ 769,486 $ 375,025 Brokerage 147,479 99,907 572,548 402,747 Management fees 12,304 11,128 47,515 32,608 Incentive income 465 823 592 1,547 Interest and dividends 59,912 45,067 187,459 174,913 Reimbursement from 271 246 1,048 1,026 affiliatesReinsurance premiums 11,204 17,267 30,147 46,335 Other 3,912 2,205 8,621 5,433 Consolidated Funds 1,238 1,570 5,888 9,809 revenuesTotal revenue 502,920 281,135 1,623,304 1,049,443 Interest and dividends 61,875 43,539 187,725 168,628 expenseTotal net revenue 441,045 237,596 1,435,579 880,815 Expenses Employee compensation and 277,394 147,161 860,531 535,772 benefitsReinsurance claims,commissions and 12,189 18,931 33,905 44,070 amortization of deferredacquisition costsOperating, general,administrative and other 104,890 84,584 369,840 335,499 expensesDepreciation and 5,353 5,470 22,677 20,460 amortization expenseGoodwill impairment ? ? ? 4,100 Consolidated Funds 616 2,734 5,409 8,963 expensesTotal expenses 400,442 258,880 1,292,362 948,864 Other income (loss) Net (losses) gains onsecurities, derivatives 92,139 18,969 175,877 80,409 and other investmentsGain/(loss) on debt 2,719 ? 2,719 ? extinguishmentConsolidated Funds net 5,034 36,827 (24,376 ) 58,363 (losses) gainsTotal other income (loss) 99,892 55,796 154,220 138,772 Income (loss) before 140,495 34,512 297,437 70,723 income taxesIncome tax expense/ 37,784 5,238 90,373 14,853 (benefit)Net income (loss) 102,711 29,274 207,064 55,870 Net income (loss)attributable tonon-controlling interests 10,544 24,051 (9,299 ) 31,239 in consolidatedsubsidiaries and fundsNet income (loss)attributable to Cowen 92,167 5,223 216,363 24,631 Inc.Less: Preferred stock 1,698 1,698 6,792 6,792 dividendsNet income (loss)attributable to Cowen $ 90,469 $ 3,525 $ 209,571 $ 17,839 Inc. common stockholders Earnings (loss) per share:Basic $ 3.36 $ 0.12 $ 7.54 $ 0.60 Diluted $ 2.98 $ 0.11 $ 7.10 $ 0.57 Weighted average shares used in per share data:Basic 26,934 29,046 27,790 29,525 Diluted 30,316 30,722 29,519 31,286

U.S. GAAP Financial Measures

Fourth quarter 2020 revenue was $502.9 million versus $281.1 million in the fourth quarter of 2019. Full year 2020 revenue was $1.6 billion compared to $1.0 billion in the prior year. The year-over-year increase was due primarily to increased investment banking and brokerage activity.

Fourth quarter 2020 investment banking revenues increased $163.2 million to $266.1 million. Full year 2020 investment banking revenue increased $394.5 million to $769.5 million. During full-year 2020 the Company completed 165 underwriting transactions, 74 strategic advisory transactions and 12 debt capital markets transactions.

Fourth quarter 2020 brokerage revenues increased $47.6 million to $147.5 million. Full year 2020 brokerage revenues increased $169.8 million to $572.5 million. The revenue growth was attributable to an increase in institutional brokerage, including special situations trading and electronic trading commissions, as well as an increase in institutional services, primarily prime brokerage.

Fourth quarter 2020 employee compensation and benefits expenses was $277.4 million, an increase of $130.2 million from the prior-year period. Full year 2020 employee compensation and benefits expenses was $860.5 million compared to $535.8 million in the prior year. The year-over-year increase was due primarily to higher total revenues resulting in a higher compensation and benefits accrual.

Fourth quarter 2020 income tax expense was $37.8 million compared to $5.2 million in the prior-year quarter. Full year 2020 income tax expense was $90.4 million compared to $14.9 million in the prior year. The year-over-year change was primarily attributable to the increase in the Company's income before income taxes.

Fourth quarter 2020 total expenses totaled $400.4 million, an increase of $141.6 million from the prior-year period. Full year 2020 total expenses totaled $1.3 billion, compared to $948.9 million in the prior year. The year-over-year increase was due to higher compensation expenses and higher non-compensation expenses associated with increased investment banking and brokerage activity, partially offset by a reduction in marketing and business development expenses.

Fourth quarter 2020 net income attributable to common stockholders was $90.5 million compared to $3.5 million in the fourth quarter of 2019. Full-year 2020 net income attributable to common stockholders was $209.6 million compared to net income of $17.8 million in the prior year.

Non-GAAP Financial Measures

Throughout this press release, the Company presents supplemental financial measures that are not prepared in accordance with U.S. GAAP. These non-GAAP financial measures include (i) Economic Income (Loss), (ii) Economic Operating Income (Loss), (iii) Economic Proceeds and related components, (iv) Net Economic Proceeds and related components (v) Economic Expenses and related components and (vi) related per share measures. The Company believes that these non-GAAP financial measures, viewed in addition to, and not in lieu of, the Companys reported US GAAP results, provide useful information to investors and analysts regarding its performance and overall results of operations as it presents investors and analysts with a supplemental operating view of the Companys financials to help better inform their analysis of the Companys performance.

These Non-GAAP financial measures are an integral part of the Companys internal reporting to measure the performance of its business segments, allocate capital and other strategic decisions as well as assess the overall effectiveness of senior management. The Company believes that presenting these non-GAAP measures may provide expanded transparency into the Companys business operations, growth opportunities and expense allocation decisions.

The Companys primary non-GAAP financial measures of profit or loss are Economic Income (Loss) and Economic Operating Income (Loss). Economic Income (Loss) is a pre-tax measure that (i) includes management reclassifications which the Company believes provides additional insight on the performance of the Companys core businesses and divisions (ii) eliminates the impact of consolidation for Consolidated Funds and excludes (iii) goodwill and intangible impairment (iv) certain other transaction-related adjustments and/or reorganization expenses and (v) certain costs associated with debt. Economic Operating Income (Loss) is a similar measure but before depreciation and amortization expenses. The Company believes that these non-GAAP financial measures provide analysts and investors transparency into the measures of profit and loss management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Additionally, the measures provide investors and analysts with additional insight into the activities of the Companys core businesses, taking into account, among other things, the impact of minority investment stakes, securities borrowing and lending activities and expenses from investment banking activities on US GAAP reported results.

In addition to Economic Income (Loss) and Economic Operating Income (Loss), the Company also presents Economic Proceeds, Net Economic Proceeds, Economic Expenses, as well as their related components. These measures include management reclassifications and the elimination of the impact of the consolidation for Consolidated funds as described for Economic Income (Loss) and Economic Operating Income (Loss) described above. These adjustments are meant to provide comparability to our peers as well as to provide investors and analysts with transparency into how the Company manages its operating businesses and how analysts and investors review and analyze the Companys and its peers similar lines of businesses. For example, among others, within the Companys Op Co business segment, investors and analysts typically review and analyze the performance of investment banking revenues net of underwriting expenses and excluding the impact of reimbursable expenses. Additionally, the performance of the Companys Markets business is typically analyzed as a unit incorporating commissions, interest from securities financing transactions and gains and losses from proprietary and facilitation trading. The Companys investment management business performance is analyzed and reviewed by investors and analysts through investment income, incentive income and management fees. The presentation of Economic Proceeds, Net Economic Proceeds, Economic Expenses as well as their related components align with these and other examples of how the Companys business activities and performance are reviewed by analysts and investors in addition to providing simplification related to legacy businesses and investments for which the Company maintains long-term monetization strategies . Additionally, the Company manages its operating businesses to an Economic Compensation-to-Proceeds ratio. Presentation of Economic Compensation Expense and Economic Proceeds provides transparency in addition to the Companys US GAAP Compensation Expense.

Reconciliations to comparable US GAAP measures are presented along with the Companys Non-GAAP financial measures. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other public companies and are not identical to corresponding measures used in our various agreements or public filings.

These Non-GAAP measures should not be considered in isolation or as a substitute for revenue, expenses, net income, operating cash flows, investing and financing activities, or other income or cash flow statement data prepared in accordance with US GAAP. As a result of the adjustments made to arrive at Economic Income (Loss) described below, Economic Income (Loss) has limitations in that it does not take into account certain items included or excluded under US GAAP, including its consolidated funds.

Economic Proceeds

Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019(Dollar amounts in Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Totalthousands) CoEconomic Proceeds Investment banking $ 254,402 $ ? $ 254,402 $ 96,711 $ ? $ 96,711 $ 729,180 $ ? $ 729,180 $ 351,085 $ ? $ 351,085 Brokerage 185,824 ? 185,824 113,047 ? 113,047 652,647 ? 652,647 459,143 ? 459,143 Management fees 16,430 312 16,742 10,305 187 10,492 58,154 946 59,100 40,321 1,976 42,297 Incentive income 42,606 1,769 44,375 10,603 370 10,973 83,435 1,927 85,362 44,600 1,132 45,732 Investment income (loss) 5,220 5,108 10,328 18,788 (2,178 ) 16,610 37,786 (8,564 ) 29,222 32,614 3,111 35,725 Other economic proceeds 1,073 1 1,074 490 1 491 775 5 780 5,785 58 5,843 Total: Economic Proceeds 505,555 7,190 512,745 249,944 (1,620 ) 248,324 1,561,977 (5,686 ) 1,556,291 933,548 6,277 939,825 Economic Interest Expense 6,048 1,109 7,157 6,205 1,402 7,607 24,519 5,123 29,642 22,576 5,449 28,025 Net Economic Proceeds $ 499,507 $ 6,081 $ 505,588 $ 243,739 $ (3,022 ) $ 240,717 $ 1,537,458 $ (10,809 ) $ 1,526,649 $ 910,972 $ 828 $ 911,800

Economic Proceeds were $512.7 million versus $248.3 million in the fourth quarter of 2019, an increase of 106%. Full-year 2020 economic proceeds rose 67%.

Investment Banking Economic Proceeds were $254.4 million, up 163% versus the prior-year period, driven by stronger equity capital markets activity as well as higher-fee M&A transactions. Full-year 2020 banking proceeds rose 108%.

Brokerage Economic Proceeds of $185.8 million were up 64% versus the prior-year period, driven by strength in non-US trading, electronic trading, prime services and securities finance. Full-year 2020 brokerage proceeds rose 42%.

Management Fees Economic Proceeds rose 60% year-over-year to $16.7 million in the fourth quarter, driven by higher AUM in the sustainability strategy, private healthcare strategy and the healthcare royalties strategy. Full-year 2020 management fees rose 40%.

Incentive Income Economic Proceeds were $44.4 million in the fourth quarter of 2020, up from income of $11.0 million in the prior-year period. Fourth quarter 2020 incentive income reflects higher performance fees in the private healthcare strategy and the activist strategy. Full-year 2020 incentive income rose 87%.

Investment Income Economic Proceeds posted income of $10.3 million, versus income of $16.6 million in the prior-year period. Fourth quarter 2020 proceeds include increases in the value of investments in the private healthcare strategy, activist strategy and merchant banking portfolio, partially offset by a negative-mark-to market adjustment on Cowen's Nikola holdings, which were substantially reduced during the quarter. Full-year 2020 investment income economic proceeds declined 18%.

Economic Expenses

Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019(Dollar amounts in Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Totalthousands)Economic Expenses Compensation & Benefits $ 278,273 $ 1,674 $ 279,947 $ 145,875 $ 687 $ 146,562 $ 860,753 $ 3,767 $ 864,520 $ 532,468 $ 5,070 $ 537,538 Non-Compensation Expenses 83,976 (46 ) 83,930 72,997 1,311 74,308 312,173 350 312,523 294,614 3,924 298,538 Depreciation & 5,900 5 5,905 5,447 6 5,453 22,655 22 22,677 20,403 36 20,439 AmortizationNon-Controlling Interest 1,308 ? 1,308 1,852 ? 1,852 6,892 ? 6,892 4,796 ? 4,796 Total: Economic Expenses $ 369,457 $ 1,633 $ 371,090 $ 226,171 $ 2,004 $ 228,175 $ 1,202,473 $ 4,139 $ 1,206,612 $ 852,281 $ 9,030 $ 861,311

Economic Compensation Expenses expense was $279.9 million compared to $146.6 million in the fourth quarter of 2019. The increase was due to higher revenues offset only partially by a lower economic compensation-to-proceeds ratio. The fourth quarter 2020 economic compensation-to-proceeds ratio was 54.6%, down from 56.1% in 3Q20 and down from 59.0% in 4Q19. Full-year 2020 compensation-to-proceeds ratio was 55.6%, down from 57.2% in full-year 2019.

Economic Non-compensation ExpensesFourth quarter 2020 fixed non-compensation expenses increased $3.5 million from the prior-year period to $39.8 million. The increase was due in part to higher service fees offset only partially by reduced office service expenses. Variable non-compensation expenses were $44.1 million, up from $38.0 million in the fourth quarter of 2019. The increase is related in part to higher brokerage and trade execution costs due to increased volumes, partially offset by lower travel, entertainment and business development expenses. Full-year 2020 non-compensation-to-proceeds ratio was 20.1%, down from 31.8% in full-year 2019.

Economic Income and Economic Operating Income

Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019(Dollar amounts in thousands) Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co TotalEconomic Income (loss) * $ 128,607 $ 4,193 $ 132,800 $ 16,193 $ (5,349 ) $ 10,844 $ 329,381 $ (16,136 ) $ 313,245 $ 53,257 $ (9,560 ) $ 43,697 Add: Depreciation & amortization 5,900 5 5,905 5,447 6 5,453 22,655 22 22,677 20,403 36 20,439 Economic Operating Income (Loss) $ 134,507 $ 4,198 $ 138,705 $ 21,640 $ (5,343 ) $ 16,297 $ 352,036 $ (16,114 ) $ 335,922 $ 73,660 $ (9,524 ) $ 64,136 Economic Income per common share $ 4.24 $ 0.14 $ 4.38 $ 0.53 $ (0.17 ) $ 0.35 $ 11.16 $ (0.55 ) $ 10.60 $ 1.69 $ (0.31 ) $ 1.40 Economic Operating Income per $ 4.44 $ 0.14 $ 4.58 $ 0.70 $ (0.17 ) $ 0.53 $ 11.93 $ (0.55 ) $ 11.38 $ 2.35 $ (0.30 ) $ 2.06 common share

* Economic Income (loss) is net of preferred dividends

The following tables reconciles total US GAAP Revenues and Other Income (Loss) to total Economic Proceeds for the three and twelve months ended December 31, 2020 and 2019:

For the threemonths ended Investment Management Incentive Investment Interest Reimbursement Reinsurance Other Consolidated OtherDecember 31, 2020 Banking Brokerage Fees Income Income and from premiums revenues Funds Income Total(Dollar amounts in Dividends Affiliates Revenues (Loss)thousands)Total US GAAPRevenues and Other $ 266,135 $ 147,479 $ 12,304 $ 465 $ ? $ 59,912 $ 271 $ 11,204 $ 3,912 $ 1,238 $ 99,892 $ 602,812 Income (Loss)ManagementPresentation Reclassifications:Underwriting a (6,041 ) ? ? ? ? ? ? ? ? ? ? (6,041 )expensesReimbursable b (5,692 ) ? ? ? ? ? (271 ) ? ? ? ? (5,963 )client expensesSecuritiesfinancing interest c ? 958 ? ? ? (46,911 ) ? ? ? ? ? (45,953 )expenseFund start-upcosts and d ? (293 ) (540 ) (467 ) ? ? ? ? (1,773 ) ? ? (3,073 )distribution feesCertain equity e ? ? 3,439 6,879 ? ? ? ? ? ? (7,362 ) 2,956 method investmentsCarried interest f ? ? ? 37,498 ? ? ? ? ? ? (37,498 ) ? Proprietarytrading gains and g ? ? ? ? 29,944 (4,786 ) ? ? (64 ) ? (39,125 ) (14,031 )lossesInsurance relatedactivities h ? ? ? ? ? ? ? (11,204 ) (987 ) ? ? (12,191 )expensesFacilitationtrading gains and i ? 37,680 ? ? (19,616 ) (8,215 ) ? ? ? ? (11,809 ) (1,960 )lossesTotal ManagementPresentation (11,733 ) 38,345 2,899 43,910 10,328 (59,912 ) (271 ) (11,204 ) (2,824 ) ? (95,794 ) (86,256 )Reclassifications:Fund Consolidated l ? ? 1,539 ? ? ? ? ? (14 ) (1,238 ) (1,379 ) (1,092 )ReclassificationsIncome Statement AdjustmentsDebt q ? ? ? ? ? ? ? ? ? ? (2,719 ) (2,719 )extinguishmentTotal Economic $ 254,402 $ 185,824 $ 16,742 $ 44,375 $ 10,328 $ ? $ ? $ ? $ 1,074 $ ? $ ? $ 512,745 Proceeds

For the threemonths ended Investment Management Incentive Investment Interest Reimbursement Reinsurance Other Consolidated OtherDecember 31, 2019 Banking Brokerage Fees Income Income and from premiums revenues Funds Income Total(Dollar amounts in Dividends Affiliates Revenues (Loss)thousands)Total US GAAPRevenues and Other $ 102,922 $ 99,907 $ 11,128 $ 823 $ ? $ 45,067 $ 246 $ 17,267 $ 2,205 $ 1,570 $ 55,796 $ 336,931 Income (Loss)ManagementPresentation Reclassifications:Underwriting a (2,684 ) ? ? ? ? ? ? ? ? ? ? (2,684 )expensesReimbursable b (10,139 ) ? ? ? ? ? (274 ) ? ? ? ? (10,413 )client expensesSecuritiesfinancing interest c ? 6,791 ? ? ? (34,984 ) ? ? ? ? ? (28,193 )expenseFund start-upcosts and d ? ? (4,314 ) ? ? ? ? ? (1,120 ) ? ? (5,434 )distribution feesCertain equity e ? ? 3,049 4,240 ? ? ? ? ? ? (5,169 ) 2,120 method investmentsCarried interest f ? ? ? 5,867 ? ? ? ? ? ? (5,867 ) ? Proprietarytrading gains and g ? ? ? ? 20,934 (4,667 ) ? ? (728 ) ? (12,076 ) 3,463 lossesInsurance relatedactivities h ? ? ? ? ? ? ? (17,267 ) 134 ? ? (17,133 )expensesFacilitationtrading gains and i 6,612 6,349 ? ? (4,324 ) (5,416 ) ? ? ? ? (5,090 ) (1,869 )lossesTotal ManagementPresentation (6,211 ) 13,140 (1,265 ) 10,107 16,610 (45,067 ) (274 ) (17,267 ) (1,714 ) ? (28,202 ) (60,143 )Reclassifications:Fund Consolidated l ? ? 629 43 ? ? 28 ? ? (1,570 ) (27,594 ) (28,464 )ReclassificationsTotal Economic $ 96,711 $ 113,047 $ 10,492 $ 10,973 $ 16,610 $ ? $ ? $ ? $ 491 $ ? $ ? $ 248,324 Proceeds

For the twelvemonths ended Investment Management Incentive Investment Interest Reimbursement Reinsurance Other Consolidated OtherDecember 31, 2020 Banking Brokerage Fees Income Income and from premiums revenues Funds Income Total(Dollar amounts in Dividends Affiliates Revenues (Loss)thousands)Total US GAAPRevenues and Other $ 769,486 $ 572,548 $ 47,515 $ 592 $ ? $ 187,459 $ 1,048 $ 30,147 $ 8,621 $ 5,888 $ 154,220 $ 1,777,524 Income (Loss)ManagementPresentation Reclassifications:Underwriting a (22,565 ) ? ? ? ? ? ? ? ? ? ? (22,565 )expensesReimbursable b (17,741 ) ? ? ? ? ? (1,098 ) ? ? ? ? (18,839 )client expensesSecuritiesfinancing interest c ? 14,499 ? ? ? (142,998 ) ? ? ? ? ? (128,499 )expenseFund start-upcosts and d ? (293 ) (3,970 ) (719 ) ? ? ? ? (2,529 ) ? ? (7,511 )distribution feesCertain equity e ? ? 12,540 24,121 ? ? ? ? ? ? (28,346 ) 8,315 method investmentsCarried interest f ? ? ? 61,335 ? ? ? ? ? ? (61,335 ) ? Proprietarytrading gains and g ? ? ? ? 42,564 (17,442 ) ? ? (1,518 ) ? (56,351 ) (32,747 )lossesInsurance relatedactivities h ? ? ? ? ? ? ? (30,147 ) (3,759 ) ? ? (33,906 )expensesFacilitationtrading gains and i ? 65,893 ? ? (13,342 ) (27,019 ) ? ? ? ? (31,768 ) (6,236 )lossesTotal ManagementPresentation (40,306 ) 80,099 8,570 84,737 29,222 (187,459 ) (1,098 ) (30,147 ) (7,806 ) ? (177,800 ) (241,988 )Reclassifications:Fund Consolidated l ? ? 3,015 33 ? ? 50 ? (35 ) (5,888 ) 26,299 23,474 ReclassificationsIncome Statement AdjustmentsDebt q ? ? ? ? ? ? ? ? ? ? (2,719 ) (2,719 )extinguishmentTotal Economic $ 729,180 $ 652,647 $ 59,100 $ 85,362 $ 29,222 $ ? $ ? $ ? $ 780 $ ? $ ? $ 1,556,291 Proceeds

For the twelvemonths ended Investment Management Incentive Investment Interest Reimbursement Reinsurance Other Consolidated OtherDecember 31, 2019 Banking Brokerage Fees Income Income and from premiums revenues Funds Income Total(Dollar amounts in Dividends Affiliates Revenues (Loss)thousands)Total US GAAPRevenues and Other $ 375,025 $ 402,747 $ 32,608 $ 1,547 $ ? $ 174,913 $ 1,026 $ 46,335 $ 5,433 $ 9,809 $ 138,772 $ 1,188,215 Income (Loss)ManagementPresentation Reclassifications:Underwriting a (15,067 ) ? ? ? ? ? ? ? ? ? ? (15,067 )expensesReimbursable b (15,485 ) ? ? ? ? ? (1,148 ) ? ? ? ? (16,633 )client expensesSecuritiesfinancing interest c ? 22,198 ? ? ? (132,000 ) ? ? ? ? ? (109,802 )expenseFund start-upcosts and d ? ? (5,500 ) ? ? ? ? ? (1,123 ) ? ? (6,623 )distribution feesCertain equity e ? ? 12,919 19,975 ? ? ? ? ? ? (25,204 ) 7,690 method investmentsCarried interest f ? ? ? 23,610 ? ? ? ? ? ? (23,610 ) ? Proprietarytrading gains and g ? ? ? ? 54,455 (24,067 ) ? ? (725 ) ? (44,631 ) (14,968 )lossesInsurance relatedactivities h ? ? ? ? ? ? ? (46,335 ) 2,243 ? ? (44,092 )expensesFacilitationtrading gains and i 6,612 34,198 ? ? (18,730 ) (18,846 ) ? ? ? ? (8,662 ) (5,428 )lossesTotal ManagementPresentation (23,940 ) 56,396 7,419 43,585 35,725 (174,913 ) (1,148 ) (46,335 ) 395 ? (102,107 ) (204,923 )Reclassifications:Fund Consolidated l ? ? 2,270 600 ? ? 122 ? 15 (9,809 ) (36,665 ) (43,467 )ReclassificationsTotal Economic $ 351,085 $ 459,143 $ 42,297 $ 45,732 $ 35,725 $ ? $ ? $ ? $ 5,843 $ ? $ ? $ 939,825 Proceeds

The following table reconciles total US GAAP interest and dividends expense to total Economic Interest Expense for the three and twelve months ended December 31, 2020 and 2019:

Three Months Ended Twelve Months Ended December December 31, 31,(Dollar amounts in 2020 2019 2020 2019thousands)Total US GAAPInterest & $ 61,875 $ 43,539 $ 187,725 $ 168,628 Dividend ExpenseManagementPresentation Reclassifications:Securitiesfinancing interest c (45,953 ) (28,193 ) (128,499 ) (109,802 )expenseProprietarytrading gains and g (5,700 ) (4,781 ) (18,849 ) (21,076 )lossesFacilitationtrading gains and i (1,960 ) (1,869 ) (6,236 ) (5,428 )lossesTotal ManagementPresentation (53,613 ) (34,843 ) (153,584 ) (136,306 )Reclassifications:Income Statement Adjustments:Amortization ofdiscount/(premium) m (1,105 ) (1,089 ) (4,499 ) (4,297 )on debtTotal Economic $ 7,157 $ 7,607 $ 29,642 $ 28,025 Interest Expense

The following tables reconcile total US GAAP Expenses and non-controlling interests to total Economic Expenses for the three and twelve months ended December 31, 2020 and 2019:

Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Net income Net income (loss) (loss) Non-compensation attributable to Non-compensation attributable to(Dollar amounts in Employee US GAAP Expenses non-controlling Employee US GAAP Expenses non-controllingthousands) Compensation (including interests in Total Compensation (including interests in Total and Benefits Depreciation and consolidated and Benefits Depreciation and consolidated Amortization) subsidiaries Amortization) subsidiaries and investment and investment funds fundsTotal US GAAP $ 277,394 $ 123,048 $ 10,544 $ 410,986 $ 147,161 $ 111,719 $ 24,051 $ 282,931 ManagementPresentation ? Reclassifications:Underwriting a ? (6,041 ) ? (6,041 ) ? (2,684 ) ? (2,684 )expensesReimbursable b ? (5,963 ) ? (5,963 ) ? (10,413 ) ? (10,413 )client expensesFund start-upcosts and d ? (3,073 ) ? (3,073 ) ? (5,434 ) ? (5,434 )distribution feesCertain equity e ? 2,956 ? 2,956 ? 2,120 ? 2,120 method investmentsProprietarytrading gains and g ? 1,737 (10,068 ) (8,331 ) ? 6,565 1,679 8,244 lossesInsurance relatedactivities h ? (12,191 ) ? (12,191 ) ? (17,133 ) ? (17,133 )expensesAssociated partner/banker j 2,908 (2,908 ) ? ? 1,054 (1,054 ) ? ? compensationManagement companynon-Controlling k (355 ) (953 ) 1,308 ? (1,653 ) (199 ) 1,852 ? interestTotal ManagementPresentation 2,553 (26,436 ) (8,760 ) (32,643 ) (599 ) (28,232 ) 3,531 (25,300 )Reclassifications:Fund Consolidated l ? (616 ) (476 ) (1,092 ) ? (2,734 ) (25,730 ) (28,464 )ReclassificationsIncome Statement Adjustments:Acquisition n ? (4,282 ) ? (4,282 ) ? (992 ) ? (992 )adjustmentsGoodwill and/or o ? (1,879 ) ? (1,879 ) ? ? ? ? other impairmentTotal IncomeStatement ? (6,161 ) ? (6,161 ) ? (992 ) ? (992 )Adjustments:Total Economic $ 279,947 $ 89,835 $ 1,308 $ 371,090 $ 146,562 $ 79,761 $ 1,852 $ 228,175 Expenses

Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Net income Net income (loss) (loss) Non-compensation attributable to Non-compensation attributable to(Dollar amounts in Employee US GAAP Expenses non-controlling Employee US GAAP Expenses non-controllingthousands) Compensation (including interests in Total Compensation (including interests in Total and Benefits Depreciation and consolidated and Benefits Depreciation and consolidated Amortization) subsidiaries Amortization) subsidiaries and investment and investment funds fundsTotal US GAAP $ 860,531 $ 431,831 $ (9,299 ) $ 1,283,063 $ 535,772 $ 413,092 $ 31,239 $ 980,103 ManagementPresentation Reclassifications:Underwriting a ? (22,565 ) ? (22,565 ) ? (15,067 ) ? (15,067 )expensesReimbursable b ? (18,839 ) ? (18,839 ) ? (16,633 ) ? (16,633 )client expensesFund start-upcosts and d ? (7,511 ) ? (7,511 ) ? (6,623 ) ? (6,623 )distribution feesCertain equity e ? 8,315 ? 8,315 ? 7,690 ? 7,690 method investmentsProprietarytrading gains and g ? 5,686 (19,584 ) (13,898 ) ? 2,843 3,265 6,108 lossesInsurance relatedactivities h ? (33,906 ) ? (33,906 ) ? (44,092 ) ? (44,092 )expensesAssociated partner/banker j 5,377 (5,377 ) ? ? 3,419 (3,419 ) ? ? compensationManagement companynon-Controlling k (1,388 ) (5,504 ) 6,892 ? (1,653 ) (3,143 ) 4,796 ? interestTotal ManagementPresentation 3,989 (79,701 ) (12,692 ) (88,404 ) 1,766 (78,444 ) 8,061 (68,617 )Reclassifications:Fund Consolidated l ? (5,409 ) 28,883 23,474 ? (8,963 ) (34,504 ) (43,467 )ReclassificationsIncome Statement Adjustments:Acquisition n ? (9,098 ) ? (9,098 ) ? (2,608 ) ? (2,608 )adjustmentsGoodwill and/or o ? (2,423 ) ? (2,423 ) ? (4,100 ) ? (4,100 )other impairmentTotal IncomeStatement ? (11,521 ) ? (11,521 ) ? (6,708 ) ? (6,708 )Adjustments:Total Economic $ 864,520 $ 335,200 $ 6,892 $ 1,206,612 $ 537,538 $ 318,977 $ 4,796 $ 861,311 Expenses

The following table reconciles US GAAP Net Income (loss) Attributable to Cowen Inc. Common Stockholders to Economic Income (loss) and Economic Operating Income (loss):

Three Months Ended Twelve Months Ended December 31 December 31(Dollar amounts in 2020 2019 2020 2019thousands) US GAAP Net income (loss)attributable to Cowen $ 90,469 $ 3,525 $ 209,571 $ 17,839 Inc. common stockholders Income Statement Adjustments: Income tax expense p 37,784 5,238 90,373 14,853 (benefit) Amortization of discount (premium) on m 1,105 1,089 4,499 4,297 debt Debt extinguishment q (2,719 ) ? (2,719 ) ? Goodwill and other o 1,879 ? 2,423 4,100 impairment Transaction-related and n 4,282 992 9,098 2,608 other costs Economic Income (Loss) $ 132,800 $ 10,844 $ 313,245 $ 43,697 Add back: Depreciation and amortization 5,905 5,453 22,677 20,439 expense Economic Operating $ 138,705 $ 16,297 $ 335,922 $ 64,136 Income (Loss)

The following table reconciles US GAAP Net Income (loss) Attributable to Cowen Inc. Common Stockholders Earnings Per Common Share (Diluted) to Economic Income (loss) Per Common Share (Diluted) and Economic Operating Income (loss) Per Common Share (Diluted):

Three Months Ended Twelve Months Ended December 31 December 31(Dollars per share) 2020 2019 2020 2019 US GAAP Net income (loss)attributable to Cowen Inc. common $ 2.98 $ 0.11 $ 7.10 $ 0.57 stockholders Income Statement Adjustments: Income tax expense (benefit) p 1.25 0.17 3.06 0.47 Amortization of discount m 0.04 0.04 0.15 0.14 (premium) on debt Debt extinguishment q (0.09 ) ? (0.09 ) ? Goodwill and other impairment o 0.06 ? 0.08 0.13 Transaction-related and other n 0.15 0.03 0.30 0.08 costs Economic income (Loss) per $ 4.39 $ 0.35 $ 10.60 $ 1.39 common share (diluted) Add back: Depreciation and 0.19 0.18 0.77 0.66 amortization expense Economic Operating Income (Loss) $ 4.58 $ 0.53 $ 11.37 $ 2.05 per common share (diluted)

Adjustments made to US GAAP Net Income (Loss) to arrive at Economic Operating Income (Loss)

Management Reclassifications Management reclassification adjustments and fund consolidation reclassification adjustments have no effect on economic income. These adjustments are reclassifications to change the location of certain line items.a Underwriting expenses: Economic Income (Loss) presents investment banking revenues net of underwriting expenses. Reimbursable client expenses: Economic Income (Loss) presents expensesb reimbursed from clients and affiliates within their respective expense category but is included as a part of revenues under US GAAP. Securities financing interest expense: Economic Income (Loss) brokeragec revenues included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP.d Fund start-up costs and distribution fees: Economic Income (Loss) presents revenues net of fund start-up costs and distribution fees paid to agents. Certain equity method investments: Economic Income (Loss) recognizes the Company's proportionate share of management and incentive fees and associated share of expenses on a gross basis for equity method investmentse within the activist business, real estate operating entities and the healthcare royalty business. The Company applies the equity method of accounting to these entities and accordingly the results from these businesses are recorded within Other Income (Loss) for US GAAP. Carried interest: The Company applies an equity ownership model to carriedf interest which is recorded in Other Income (Loss) for US GAAP. The Company presents carried interest as incentive income for Economic Income (Loss). Proprietary trading gains and losses: Economic Income (Loss) recognizesg Company income from proprietary trading (including interest and dividends) for which the majority of this activity is shown in other income (loss) for US GAAP reporting. Insurance related activities expenses: Economic Income (Loss) recognizesh underwriting income from the Company's insurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting. Facilitation trading gains and losses: Economic Income (Loss) recognizesi gains and losses on investments held as part of the Company's facilitation and trading business within brokerage revenues as these investments are directly related to the markets business activities. Associated partner/banker compensation reclassification: Economic Incomej (Loss) presents certain payments to associated banking partners as compensation rather than non-compensation expenses. Management company non-controlling interest: Economic income (Loss)k non-controlling interest represents only operating entities that are not wholly owned by the Company. The Company also presents non-controlling interests within total expenses for Economic Income (Loss).Fund Consolidation Reclassifications The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustmentsl to reconcile to US GAAP Net Income (Loss) included elimination of incentive income and management fees earned from the Consolidated Funds and addition of investment fund expenses excluding management fees paid, investment fund revenues and investment income (loss).Income Statement Adjustmentsm Economic Income (Loss) excludes the amortization of discount (premium) on debt.n Economic Income (Loss) excludes acquisition related adjustments.o Economic Income (Loss) excludes goodwill and other impairments.p Economic Income (Loss) excludes income taxes.q Economic Income (Loss) excludes gain/(loss) on debt extinguishment.

Earnings Conference Call

Management will hold a conference call today, February 11, 2021 at 9:00 am ET to discuss these results and provide an update on business conditions.

Chair and Chief Executive Officer Jeffrey M. Solomon and Chief Financial Officer Stephen A. Lasota will host the presentation, followed by a question and answer period.

U.S. dial in: (855) 760-0961International dial-in: (631) 485-4850Passcode: 9894979

Please call the conference telephone number at least 15 minutes prior to the start time.

The call can also be accessed through live audio webcast via this direct link: https://edge.media-server.com/mmc/p/qyu9qc6t

A replay of the call will be available for one week beginning at 12:00 pm ET on February 11, 2021 on the Companys website at investor.cowen.com/investor-calls or via the following numbers:

U.S. replay dial-in: (855) 859-2056International replay dial-in (404) 537-3406Replay ID: 9894979

About Cowen Inc. Cowen Inc.(Cowen or the Company) is a diversified financial services firm offering investment banking services, research, sales and trading, prime brokerage, global clearing, commission management services and investment management. Cowen focuses on delivering value-added capabilities to our clients in order to help them outperform. Founded in 1918, the Company is headquartered inNew Yorkand has offices worldwide. Learn more at Cowen.com

Investor Relations Contact:JT Farley(646) 562-1056james.farley@cowen.comSource: Cowen Inc.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements provide the Companys current expectations or forecasts of future events. Forward-looking statements include statements about the Companys expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. As a result of the spread of COVID-19, economic uncertainties have arisen that have the potential in future periods to negatively impact the Companys business, financial condition, results of operation, cash flows, strategies and prospects. The extent of the impact of COVID-19 on the Companys operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and impact on our clients, employees, vendors and the markets in which we operate our businesses, all of which are uncertain and cannot be reasonably estimated at this time. The Companys actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the sections entitled Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations in the Companys Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The Annual Report on Form 10-K and Quarterly Reports on Form 10-Q are available at our website at www.cowen.com and at the Securities and Exchange Commission website at www.sec.gov. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this press release.

1Markets Economic Proceeds is comprised of Brokerage Economic Proceeds (Non-GAAP) of $652.6 million as well as $3.1 million of management fees for Prime Services and $1.7 million of miscellaneous fees presented in Management Fees Economic Proceeds (Non-GAAP) and Other Economic Proceeds (Non-GAAP) respectively.