GlobeNewswire Inc | Oct 29, 2021 07:01AM EDT

October 29, 2021

-- Reports 3Q21 GAAP Net Income to common stockholders of $36.1 million, or $1.10 per diluted share -- Economic Operating Income of $43.3 million, or $1.32 per diluted share (Non-GAAP) -- Record quarter for Capital Markets Advisory and M&A Advisory -- Record share repurchases of $52.4 million, maintained $0.10 per share quarterly cash dividend -- Earnings call today at 9am ET. Dial-in: 855-760-0961 or 631-485-4850 Passcode: 1874925

NEW YORK, Oct. 29, 2021 (GLOBE NEWSWIRE) -- CowenInc. (NASDAQ: COWN) (Cowen or the Company) today announced its operating results for the third quarter ended September30, 2021.

Jeffrey M. Solomon, Chair and Chief Executive Officer of Cowen, said, "Our record M&A advisory and capital markets advisory revenues, along with the resilience of our markets business, are clear demonstrations of the sustainability of our core earnings power. The increased breadth and depth of our capabilities across the firm and the strategic steps that we have taken to build out our business are delivering results. We remain as committed as ever to achieving better outcomes for our clients every day."

Third Quarter 2021 Financial Summary

Operating Results (GAAP) Economic Operating Income (Non-GAAP) Three Months Ended September Three Months Ended September 30, 30,($ in millions,except per share 2021 2020 ? % 2021 2020 ? %information) Revenue/Economic $ 412.2 $ 321.3 28 % $ 359.1 $ 274.3 31 %Proceeds (Non-GAAP)Net income (loss)attributable tocommon stockholders $ 36.1 $ 18.6 94 % $ 43.3 $ 37.4 16 %/Economic OperatingIncome (Non-GAAP)Earnings (loss) percommon share $ 1.10 $ 0.62 77 % $ 1.32 $ 1.25 6 %(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." 3Q21 EconomicOperating Income (Loss) is calculated net of associated taxes. The Company hasutilized all available federal net operating losses not subject to limitationduring 2020.

Third Quarter 2021 Operating Financial Highlights

? Economic Operating Income (Non-GAAP): ? $43.3 million, or $1.32 per diluted share, which is after income tax expense of $13.9 million ? Strong Investment Banking performance: ? Record advisory: 67% of total Investment Banking revenues, including record quarterly M&A revenues Robust performance from the broader healthcare sector, industrials and ? technology were meaningful contributors. Overall backlog remains strong, up 20% versus 3Q20 ? Resilient Markets operations: ? Brokerage Economic Proceeds (Non-GAAP) of $160.5 million ($2.54 million/ trading day) in 3Q21 ? Strong momentum continued in non-US trading, prime services, securities finance, and special situations ? Growth in Assets Under Management: As of September30, 2021, the Company had assets under management of $14.8 ? billion, an increase of $0.4 billion from June 30, 2021 and up $3.0 billion from September 30, 2020, respectively. Most of the AUM increase from June 30, 2021 was in the healthcare strategy Management fees economic proceeds (non-GAAP) were $15.0 million, up 3% year-over-year. Management fee economic proceeds would have been $18.8 ? million excluding the impact of $3.8 million in one-time fund placement fees associated with 3Q21 fundraising activity that were expensed in full in 3Q21 ? Invested capital: ? As of September30, 2021, the Company had invested capital in Op Co totaling $677.7 million, down from $831.6 million as of June 30, 2021 ? As of September30, 2021, the Company had invested capital in Asset Co totaling $120.2 million, down from $126.2 million as of June 30, 2021 The largest Asset Co investments are the investment in Italian wireless ? broadband provider Linkem S.p.A ($79.7 million), private equity funds Formation8/Eclipse ($33.4 million) and other private investments ($7.1 million)

Capital Optimization Update

In the third quarter of 2021, the Company repurchased a record $52.4 million of its common stock, or 1,455,863 shares, at an average price of $36.00 per share under the Company's existing share repurchase program. Outside the share repurchase program, in the third quarter of 2021 the Company acquired approximately $4.8 million of stock as a result of net share settlements relating to the vesting of equity awards, or 132,985 shares, at an average price of $36.44 per share. As of September 30, 2021, $43.3 million was available for purchase under the share repurchase program.

Quarterly Cash Dividend

On October 27, 2021, the Board of Directors declared a cash dividend of $0.10 per common share. The dividend is payable on December 15, 2021, to stockholders of record on December 1, 2021.

Select Balance Sheet Data



(Amounts in millions, except per share information) September December 31, 30, 2021 2020Cowen Inc. stockholders' equity $ 1,083.1 $ 969.5Common equity (CE) $ 981.8 $ 868.2Tangible common equity (TCE) $ 808.9 $ 696.7 Book value per share (CE/CSO) $ 35.40 $ 32.34Tangible book value per share (TCE/CSO) $ 29.17 $ 25.95 Common shares outstanding (CSO) 27.7 26.8 Note: Common Equity (CE) is calculated as Cowen Inc, stockholders? equity lessour preferred stock issuance.Tangible common equity (TCE) is calculated as common equity (CE) less goodwilland 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 Nine Months Ended September 30 September 30 2021 2020 2021 2020Revenue Investment banking $ 273,532 $ 194,341 $ 803,347 $ 503,351 Brokerage 131,371 119,804 444,168 391,390 Investment income (loss) Securities principal 7,291 (50,446 ) 111,828 76,097 transactions, netPortfolio fund principal (11,121 ) (435 ) 2,400 8,841 transactions, netCarried interest (60,471 ) (4,014 ) 768 22,199 allocationsTotal investment income (64,301 ) (54,895 ) 114,996 107,137 (loss)Management fees 15,334 11,954 56,071 35,211 Incentive income 6 127 2,433 127 Interest and dividends 45,978 37,552 167,539 127,547 Insurance and reinsurance 12,586 2,505 31,196 18,943 premiumsOther revenues, net (1,078 ) 2,388 2,612 5,257 Consolidated Funds (1,191 ) 7,520 (3,843 ) (24,760 )revenuesTotal revenue 412,237 321,296 1,618,519 1,164,203 Interest and dividends 43,035 37,754 163,749 125,850 expenseTotal net revenue 369,202 283,542 1,454,770 1,038,353 Expenses Employee compensation and 201,686 153,427 809,068 583,137 benefitsInsurance and reinsuranceclaims, commissions and 13,172 4,852 24,843 21,716 amortization of deferredacquisition costsOperating, general,administrative and other 108,633 84,784 308,710 264,950 expensesDepreciation and 4,796 5,682 13,715 17,324 amortization expenseConsolidated Funds 124 494 519 4,793 expensesTotal expenses 328,411 249,239 1,156,855 891,920 Other income (loss) Net (losses) gains on 4,266 4,043 23,641 10,509 other investmentsBargain purchase gain, ? ? 3,855 ? net of taxGain/(loss) on debt ? ? (4,538 ) ? extinguishmentTotal other income (loss) 4,266 4,043 22,958 10,509 Income (loss) before 45,057 38,346 320,873 156,942 income taxesIncome tax expense/ 12,192 8,830 76,864 52,589 (benefit)Net income (loss) 32,865 29,516 244,009 104,353 Net income (loss)attributable tonon-controlling interests (4,938 ) 9,232 13,379 (19,843 )in consolidatedsubsidiaries and fundsNet income (loss)attributable to Cowen 37,803 20,284 230,630 124,196 Inc.Less: Preferred stock 1,698 1,698 5,094 5,094 dividendsNet income (loss)attributable to Cowen $ 36,105 $ 18,586 $ 225,536 $ 119,102 Inc. common stockholders Earnings (loss) per share:Basic $ 1.25 $ 0.67 $ 8.14 $ 4.24 Diluted $ 1.10 $ 0.62 $ 6.78 $ 4.02 Weighted average shares used in per share data:Basic 28,864 27,663 27,718 28,078 Diluted 32,724 29,970 33,264 29,646

U.S. GAAP Financial Measures

During the first quarter of 2021, the Company changed the presentation of certain income streams on its U.S. GAAP preliminary Unaudited Condensed Consolidated Statements of Operations by moving the income streams from Other income - net gains (losses) on securities, derivatives and other investments to Revenues. Additionally, the Company moved proprietary trading gains and losses generated by the Companys broker dealer entities from Brokerage revenue to Investment income (loss) securities principal transactions, net. The Company believes that these presentation changes provide a better representation of the Companys operating results as it is used by management to monitor the Companys financial performance and is consistent with industry practice. The changes in presentation have no impact on net income and prior period amounts have been recast to reflect such changes in presentation.

Third quarter 2021 revenue was $412.2 million versus $321.3 million in the third quarter of 2020. The year-over-year increase was due primarily to increased investment banking and brokerage income and securities principal transactions, partly offset by increased losses in carried interest allocations and portfolio fund principal transactions.

Third quarter 2021 investment banking revenues increased $79.2 million to $273.5 million. During the third quarter of 2021 the Company completed 46 underwriting transactions, 51 strategic advisory transactions and 5 debt capital markets transactions.

Third quarter 2021 brokerage revenues increased $11.6 million to $131.4 million. The revenue growth was attributable to an increase in institutional brokerage, including special situations trading and non-U.S. execution, as well as an increase in institutional services, primarily securities finance and prime brokerage.

Third quarter 2021 investment income decreased $9.4 million. The decrease was due to the reversal of previously recognized unrealized carried interest and portfolio fund principal transactions partly offset by a $57.7 million increase in securities principal transactions. The increase in securities principal transactions was primarily attributable to the increase in performance in our merchant banking investments as the third quarter of 2020 included significant losses from the mark to market of our Nikola investment.

Third quarter 2021 employee compensation and benefits expenses were $201.7 million, an increase of $48.3 million from the prior-year period. The year-over-year increase was due primarily to higher total revenues, primarily from increased investment banking revenues, resulting in higher compensation and benefits accrual.

Third quarter 2021 income tax expense was $12.2 million compared to a $8.8 million income tax expense in the prior-year quarter. This change is primarily attributable to the increase in the Companys income before income taxes for the respective periods.

Third quarter 2021 total expenses totaled $328.4 million, an increase of $79.2 million from the prior-year period. The year-over-year increase was primarily due to higher compensation expenses associated with higher revenues as well as higher operating, general and administrating and other expenses, including an increase in marketing and business development expenses.

Third quarter 2021 net income attributable to common stockholders was $36.1 million compared to $18.6 million in the third quarter of 2020. The increase was primarily due to higher investment banking revenues and increases in securities principal transactions.

Non-GAAP Financial Measures

Throughout this press release, the Company presents supplemental financial measures that are not prepared in accordance with US GAAP. These non-GAAP financial measures include (i) Pre-tax Economic Income (Loss), (ii) Economic Income (Loss), (iii) Economic Operating Income (Loss), (iv) Economic Proceeds and related components, (v) Net Economic Proceeds and related components, (vi) Economic Expenses and related components and (vii) 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 Pre-tax Economic Income (Loss), Economic Income (Loss) and Economic Operating Income (Loss). Pre-tax Economic Income (Loss) is a pre-tax measure which (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, as well as (v) certain costs associated with debt. Economic Income (Loss) is a similar measure, but after tax, which includes the Companys income tax expense or benefit calculated on Pre-tax Economic Income (Loss) once all currently available net operating losses have been utilized (this occurred during tax year 2020) and is presented after preferred dividends. Economic Operating Income (Loss) is a similar measure to Economic Income (Loss), 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. The Company presents Pre-tax Economic Income (Loss) in addition to Economic Income (Loss) and Economic Operating Income (Loss) to provide insight to investors and analysts on how the Company manages its tax position over time.

In addition to Pre-tax Economic Income (Loss), 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 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, income (loss) before income taxes, 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 these Non-GAAP measures described below, these Non-GAAP measures have limitations in that they do not take into account certain items included or excluded under US GAAP, including its consolidated funds.

Economic Proceeds

Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020(Dollar amounts in Op Co Asset Co Total Op Co Asset Total Op Co Asset Total Op Co Asset Co Totalthousands) Co CoEconomic Proceeds Investment banking $ 262,618 $ ? $ 262,618 $ 185,151 $ ? $ 185,151 $ 770,533 $ ? $ 770,533 $ 474,778 $ ? $ 474,778 Brokerage 160,486 ? 160,486 167,084 ? 167,084 558,178 ? 558,178 466,823 ? 466,823 Management fees 14,739 295 15,034 14,374 262 14,636 59,448 911 60,359 41,724 634 42,358 Incentive income (57,288 ) (447 ) (57,735 ) (2,621 ) 1,319 (1,302 ) 21,071 (1,148 ) 19,923 40,829 158 40,987 Investment income (20,418 ) 391 (20,027 ) (90,364 ) (124 ) (90,488 ) 17,095 3,364 20,459 32,566 (13,671 ) 18,895 (loss)Other economic proceeds (1,320 ) (1 ) (1,321 ) (796 ) 2 (794 ) 7,150 (1 ) 7,149 (298 ) 4 (294 )Total: Economic 358,817 238 359,055 272,828 1,459 274,287 1,433,475 3,126 1,436,601 1,056,422 (12,875 ) 1,043,547 ProceedsEconomic Interest 5,669 820 6,489 6,026 1,109 7,135 19,035 3,082 22,117 18,471 4,014 22,485 ExpenseNet Economic Proceeds $ 353,148 $ (582 ) $ 352,566 $ 266,802 $ 350 $ 267,152 $ 1,414,440 $ 44 $ 1,414,484 $ 1,037,951 $ (16,889 ) $ 1,021,062

Economic Proceeds were $359.1 million versus $274.3 million in the third quarter of 2020, an increase of 31%.

Investment Banking Economic Proceeds were $262.6 million, up 42% versus the prior-year period, driven by higher-fee M&A transactions and record capital markets advisory revenues.

Brokerage Economic Proceeds of $160.5 million were 4% lower versus the prior-year period, driven by lower clearing revenues as a result of managements decision in 2020 to significantly reduce certain client clearing activities in order to reduce capital usage. U.S. equity trading volumes were also lower versus the prior-year period, but 3Q21 revenues included year-over-year increases for revenues in cash and electronic trading, ADR trading and non-U.S. execution.

Management Fees Economic Proceeds rose 3% year-over-year to $15.0 million in the third quarter, driven primarily by higher AUM in the sustainability, activist and healthcare strategies. Management fees economic proceeds would have been $18.8 million in the third quarter excluding the impact of $3.8 million in fund placement fees associated with 3Q21 fundraising activity that were expensed in full in 3Q21.

Incentive Income Economic Proceeds were a loss of $57.7 million in the third quarter of 2021, down from a loss of $1.3 million in the prior-year period, due to a reversal of performance fees recognized in prior quarters. The reversal was the result of negative quarterly mark-to-market adjustments on certain portfolio investments in the sustainability and healthcare investment strategies.

Investment Income Economic Proceeds were a loss of $20.0 million, up from a loss of $90.5 million in the prior-year period. Third quarter 2021 investment income included negative quarterly mark-to-market adjustments in investments primarily in the healthcare and sustainability strategies as well as the merchant banking portfolio. Third quarter 2020 investment income included a $96.6 million unrealized loss on the Company's investment in Nikola.

Economic Expenses

Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020(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 $ 198,702 $ 4,186 $ 202,888 $ 152,829 $ 957 $ 153,786 $ 800,560 $ 11,137 $ 811,697 $ 582,480 $ 2,093 $ 584,573 Non-Compensation Expenses 88,356 38 88,394 71,986 133 72,119 265,582 13 265,595 228,191 396 228,587 Depreciation & 4,790 6 4,796 5,677 5 5,682 13,700 15 13,715 16,762 17 16,779 AmortizationNon-Controlling Interest 1,216 ? 1,216 2,105 ? 2,105 4,171 ? 4,171 5,584 ? 5,584 Total: Economic Expenses $ 293,064 $ 4,230 $ 297,294 $ 232,597 $ 1,095 $ 233,692 $ 1,084,013 $ 11,165 $ 1,095,178 $ 833,017 $ 2,506 $ 835,523

Economic Compensation Expenses were $202.9 million compared to $153.8 million in the third quarter of 2020. The increase was due to higher revenues. The third quarter 2021 economic compensation-to-proceeds ratio was 56.5%, unchanged from 2Q21 and up from 56.1% in 3Q20.

Economic Non-compensation ExpensesThird quarter 2021 fixed non-compensation expenses were up $7.3 million from the prior-year period at $40.3 million. Variable non-compensation expenses were $48.1 million, up from $39.0 million in the third quarter of 2020. The increase is related in part to higher professional fees and increased travel, entertainment and business development expenses. The fixed non-compensation-to-proceeds ratio declined from 12.1% in 3Q20 to 11.2% in 3Q21 and the variable non-compensation-to-proceeds ratio declined from 14.2% in 3Q20 to 13.4% in 3Q21.

Economic Depreciation and Amortization Expenses were $4.8 million compared to $5.7 million in the third quarter of 2020. The decrease was due to certain intangibles which were fully amortized during 2020.

Economic Income and Economic Operating Income

Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020(Dollar amounts in Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Totalthousands)Pre-tax Economic Income $ 60,084 $ (4,812 ) $ 55,272 $ 34,205 $ (745 ) $ 33,460 $ 330,427 $ (11,121 ) $ 319,306 $ 204,934 $ (19,395 ) $ 185,539 (Loss)Economic income tax 15,111 (1,256 ) 13,855 ? ? ? 87,563 (2,947 ) 84,616 ? ? ? expense *Preferred dividends 1,477 221 1,698 1,415 283 1,698 4,364 730 5,094 4,160 934 5,094 Economic Income (Loss) * $ 43,496 $ (3,777 ) $ 39,719 $ 32,790 $ (1,028 ) $ 31,762 238,500 (8,904 ) 229,596 200,774 (20,329 ) 180,445 Add back: Depreciationand amortization expense, 3,548 5 3,553 5,677 5 5,682 10,070 15 10,085 16,762 17 16,779 net of taxesEconomic Operating Income $ 47,044 $ (3,772 ) $ 43,272 $ 38,467 $ (1,023 ) $ 37,444 $ 248,570 $ (8,889 ) $ 239,681 $ 217,536 $ (20,312 ) $ 197,224 (Loss) Economic Income per $ 1.33 $ (0.12 ) $ 1.21 $ 1.09 $ (0.03 ) $ 1.06 $ 7.17 $ (0.27 ) $ 6.90 $ 6.77 $ (0.69 ) $ 6.09 common shareEconomic Operating Income $ 1.44 $ (0.12 ) $ 1.32 $ 1.28 $ (0.03 ) $ 1.25 $ 7.47 $ (0.27 ) $ 7.21 $ 7.34 $ (0.69 ) $ 6.66 per common share

* Economic Income (Loss) is presented net of associated taxes starting in the first quarter of 2021. The Company has utilized all available federal net operating losses not subject to limitation during 2020.

The following tables reconcile total US GAAP Revenues and Other Income (Loss) to total Economic Proceeds for the three and nine months ended September 30, 2021 and 2020:

For the threemonths ended Investment Investment Management Incentive Interest Reinsurance Other Consolidated OtherSeptember 30, 2021 Banking Brokerage Income Fees Income and premiums revenues, Funds Income Total(Dollar amounts in Dividends net Revenues (Loss)thousands)Total US GAAPRevenues and Other $ 273,532 $ 131,371 $ (64,301 ) $ 15,334 $ 6 $ 45,978 $ 12,586 $ (1,078 ) $ (1,191 ) $ 4,266 $ 416,503 Income (Loss)ManagementPresentation Reclassifications:Underwriting a (7,208 ) ? ? ? ? ? ? ? ? ? (7,208 )expensesReimbursable b (3,706 ) ? ? ? ? ? ? (389 ) ? ? (4,095 )client expensesSecuritiesfinancing interest c ? 1,565 ? ? ? (30,417 ) ? ? ? ? (28,852 )expenseFund start-upcosts, d ? (94 ) ? (4,328 ) ? ? ? (610 ) ? ? (5,032 )distribution andother feesCertain equity e ? ? ? 3,974 2,592 ? ? ? ? (4,575 ) 1,991 method investmentsCarried interest f ? ? 60,471 ? (60,263 ) ? ? ? ? ? 208 Proprietarytrading, interest g ? 8,523 (14,436 ) ? (157 ) (5,658 ) ? 1,341 ? 12,381 1,994 and dividendsInsurance relatedactivities h ? ? ? ? ? ? (12,586 ) (586 ) ? ? (13,172 )expensesFacilitationtrading gains and i ? 19,121 (535 ) ? ? (9,903 ) ? 1 ? (12,072 ) (3,388 )lossesTotal ManagementPresentation (10,914 ) 29,115 45,500 (354 ) (57,828 ) (45,978 ) (12,586 ) (243 ) ? (4,266 ) (57,554 )Reclassifications:Fund Consolidated l ? ? (1,226 ) 54 87 ? ? ? 1,191 ? 106 ReclassificationsTotal Economic $ 262,618 $ 160,486 $ (20,027 ) $ 15,034 $ (57,735 ) $ ? $ ? $ (1,321 ) $ ? $ ? $ 359,055 Proceeds

For the threemonths ended Investment Investment Management Incentive Interest Reinsurance Other Consolidated OtherSeptember 30, 2020 Banking Brokerage Income Fees Income and premiums revenues, Funds Income Total(Dollar amounts in Dividends net Revenues (Loss)thousands)Total US GAAPRevenues and Other $ 194,341 $ 119,804 $ (54,895 ) $ 11,954 $ 127 $ 37,552 $ 2,505 $ 2,388 $ 7,520 $ 4,043 $ 325,339 Income (Loss)ManagementPresentation Reclassifications:Underwriting a (4,013 ) ? ? ? ? ? ? ? ? ? (4,013 )expensesReimbursable b (5,177 ) ? ? ? ? ? ? (269 ) ? ? (5,446 )client expensesSecuritiesfinancing interest c ? 3,318 ? ? ? (28,378 ) ? ? ? ? (25,060 )expenseFund start-upcosts, d ? ? ? (617 ) ? ? ? (239 ) ? ? (856 )distribution andother feesCertain equity e ? ? ? 3,136 2,275 3 ? ? ? (3,681 ) 1,733 method investmentsCarried interest f ? ? 4,277 ? (4,660 ) ? ? ? ? ? (383 )Proprietarytrading, interest g ? 28,142 (33,699 ) ? 956 (1,830 ) ? (327 ) ? (361 ) (7,119 )and dividendsInsurance relatedactivities h ? ? ? ? ? ? (2,505 ) (2,345 ) ? (2 ) (4,852 )expensesFacilitationtrading gains and i ? 15,820 (10,088 ) ? ? (7,347 ) ? ? ? 1 (1,614 )lossesTotal ManagementPresentation (9,190 ) 47,280 (39,510 ) 2,519 (1,429 ) (37,552 ) (2,505 ) (3,180 ) ? (4,043 ) (47,610 )Reclassifications:Fund Consolidated l ? ? 3,917 163 ? ? ? (2 ) (7,520 ) ? (3,442 )ReclassificationsTotal Economic $ 185,151 $ 167,084 $ (90,488 ) $ 14,636 $ (1,302 ) $ ? $ ? $ (794 ) $ ? $ ? $ 274,287 Proceeds

For the nine monthsended September 30, Investment Investment Management Incentive Interest and Reinsurance Other Consolidated Other2021 Banking Brokerage Income Fees Income Dividends premiums revenues, Funds Revenues Income Total(Dollar amounts in net (Loss)thousands)Total US GAAP Revenues $ 803,347 $ 444,168 $ 114,996 $ 56,071 $ 2,433 $ 167,539 $ 31,196 $ 2,612 $ (3,843 ) $ 22,958 $ 1,641,477 and Other Income (Loss)Management Presentation Reclassifications:Underwriting expenses a (20,275 ) ? ? ? ? ? ? ? ? ? (20,275 )Reimbursable client b (12,539 ) ? ? ? ? ? ? (972 ) ? ? (13,511 )expensesSecurities financing c ? 9,132 ? ? ? (121,073 ) ? ? ? ? (111,941 )interest expenseFund start-up costs,distribution and other d ? (360 ) ? (8,850 ) ? ? ? (1,914 ) ? ? (11,124 )feesCertain equity method e ? ? ? 10,976 16,590 ? ? ? ? (21,298 ) 6,268 investmentsCarried interest f ? ? (768 ) ? 1,090 ? ? ? ? ? 322 Proprietary trading g ? 34,870 (79,871 ) ? (207 ) (12,016 ) ? 1,070 ? 34,148 (22,006 )gains and lossesInsurance related h ? ? ? ? ? ? (31,196 ) 6,353 ? ? (24,843 )activities expensesFacilitation trading i ? 70,368 (11,055 ) ? ? (34,450 ) ? ? ? (36,491 ) (11,628 )gains and lossesTotal ManagementPresentation (32,814 ) 114,010 (91,694 ) 2,126 17,473 (167,539 ) (31,196 ) 4,537 ? (23,641 ) (208,738 )Reclassifications:Fund Consolidated l ? ? (2,843 ) 2,162 17 ? ? ? 3,843 ? 3,179 ReclassificationsIncome Statement AdjustmentsBargain purchase gain n ? ? ? ? ? ? ? ? ? (3,855 ) (3,855 )Debt extinguishment p ? ? ? ? ? ? ? ? ? 4,538 4,538 Total Income Statement ? ? ? ? ? ? ? ? ? 683 $ 683 Adjustments:Total Economic Proceeds $ 770,533 $ 558,178 $ 20,459 $ 60,359 $ 19,923 $ ? $ ? $ 7,149 $ ? $ ? $ 1,436,601

For the nine monthsended September 30, Investment Investment Management Incentive Interest and Reinsurance Other Consolidated Other2020 Banking Brokerage Income Fees Income Dividends premiums revenues, Funds Revenues Income Total(Dollar amounts in net (Loss)thousands)Total US GAAP Revenues $ 503,351 $ 391,390 $ 107,137 $ 35,211 $ 127 $ 127,547 $ 18,943 $ 5,257 $ (24,760 ) $ 10,509 $ 1,174,712 and Other Income (Loss)Management Presentation Reclassifications:Underwriting expenses a (16,524 ) ? ? ? ? ? ? ? ? ? (16,524 )Reimbursable client b (12,049 ) ? ? ? ? ? ? (828 ) ? ? (12,877 )expensesSecurities financing c ? 13,541 ? ? ? (96,085 ) ? ? ? ? (82,544 )interest expenseFund start-up costs,distribution and other d ? ? ? (3,430 ) ? ? ? (756 ) ? ? (4,186 )feesCertain equity method e ? ? ? 9,102 17,243 ? ? ? ? (20,985 ) 5,360 investmentsCarried interest f ? ? (22,917 ) ? 22,665 ? ? ? ? ? (252 )Proprietary trading g ? 53,637 (69,901 ) ? 952 (12,656 ) ? (1,222 ) ? 10,476 (18,714 )gains and lossesInsurance related h ? ? ? ? ? ? (18,943 ) (2,773 ) ? ? (21,716 )activities expensesFacilitation trading i ? 8,255 6,274 ? ? (18,806 ) ? ? ? ? (4,277 )gains and lossesTotal ManagementPresentation (28,573 ) 75,433 (86,544 ) 5,672 40,860 (127,547 ) (18,943 ) (5,579 ) ? (10,509 ) (155,730 )Reclassifications:Fund Consolidated l ? ? (1,698 ) 1,475 ? ? ? 28 24,760 ? 24,565 ReclassificationsTotal Economic Proceeds $ 474,778 $ 466,823 $ 18,895 $ 42,358 $ 40,987 $ ? $ ? $ (294 ) $ ? $ ? $ 1,043,547

The following table reconciles total US GAAP interest and dividends expense to total Economic Interest Expense for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended Nine Months Ended September 30, September 30,(Dollar amounts in thousands) 2021 2020 2021 2020Total US GAAP Interest & $ 43,035 $ 37,754 $ 163,749 $ 125,850 Dividend ExpenseManagement Presentation Reclassifications:Securities financing c (28,852 ) (25,060 ) (111,941 ) (82,544 )interest expenseFund start-up costs, d (1,088 ) ? (2,257 ) ? distribution and other feesProprietary trading gains g (3,192 ) (2,793 ) (8,678 ) (13,150 )and lossesFacilitation trading gains i (3,388 ) (1,614 ) (11,628 ) (4,277 )and lossesTotal ManagementPresentation (36,520 ) (29,467 ) (134,504 ) (99,971 )Reclassifications:Income Statement Adjustments: Accelerated debt costs p ? ? (5,557 ) ? Amortization of discount/ m (26 ) (1,152 ) (1,571 ) (3,394 )(premium) on debtTotal Income Statement (26 ) (1,152 ) (7,128 ) (3,394 )Adjustments:Total Economic Interest $ 6,489 $ 7,135 $ 22,117 $ 22,485 Expense

The following tables reconcile total US GAAP Expenses and non-controlling interests to total Economic Expenses for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 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 $ 201,686 $ 126,725 $ (4,938 ) $ 323,473 $ 153,427 $ 95,812 $ 9,232 $ 258,471 ManagementPresentation ? Reclassifications:Underwriting a ? (7,208 ) ? (7,208 ) ? (4,013 ) ? (4,013 )expensesReimbursable b ? (4,095 ) ? (4,095 ) ? (5,446 ) ? (5,446 )client expensesFund start-upcosts, d ? (3,944 ) ? (3,944 ) ? (856 ) ? (856 )distribution andother feesCertain equity e ? 1,991 ? 1,991 ? 1,733 ? 1,733 method investmentsCarried interest f ? 208 ? 208 ? (383 ) ? (383 )Proprietarytrading gains and g ? 478 4,708 5,186 ? 1,958 (6,284 ) (4,326 )lossesInsurance relatedactivities h ? (13,172 ) ? (13,172 ) ? (4,852 ) ? (4,852 )expensesAssociated partner/banker j 1,550 (1,550 ) ? ? 706 (706 ) ? ? compensationManagement companynon-Controlling k (348 ) (868 ) 1,216 ? (347 ) (1,758 ) 2,105 ? interestTotal ManagementPresentation 1,202 (28,160 ) 5,924 (21,034 ) 359 (14,323 ) (4,179 ) (18,143 )Reclassifications:Fund Consolidated l ? (124 ) 230 106 ? (494 ) (2,948 ) (3,442 )ReclassificationsIncome Statement Adjustments:Acquisitionrelated n ? (1,007 ) ? (1,007 ) ? (171 ) ? (171 )adjustmentsContingentliability n ? (4,244 ) ? (4,244 ) ? (3,023 ) ? (3,023 )adjustmentsTotal IncomeStatement ? (5,251 ) ? (5,251 ) ? (3,194 ) ? (3,194 )Adjustments:Total Economic $ 202,888 $ 93,190 $ 1,216 $ 297,294 $ 153,786 $ 77,801 $ 2,105 $ 233,692 Expenses

Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 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 $ 809,068 $ 347,787 $ 13,379 $ 1,170,234 $ 583,137 $ 308,783 $ (19,843 ) $ 872,077 ManagementPresentation Reclassifications:Underwriting a ? (20,275 ) ? (20,275 ) ? (16,524 ) ? (16,524 )expensesReimbursable b ? (13,511 ) ? (13,511 ) ? (12,877 ) ? (12,877 )client expensesFund start-upcosts, d ? (8,867 ) ? (8,867 ) ? (4,186 ) ? (4,186 )distribution andother feesCertain equity e ? 6,268 ? 6,268 ? 5,360 ? 5,360 method investmentsCarried interest f ? 322 ? 322 ? (252 ) ? (252 )Proprietarytrading gains and g ? 3,749 (17,077 ) (13,328 ) ? 3,951 (9,515 ) (5,564 )lossesInsurance relatedactivities h ? (24,843 ) ? (24,843 ) ? (21,716 ) ? (21,716 )expensesAssociated partner/banker j 3,672 (3,672 ) ? ? 2,469 (2,469 ) ? ? compensationManagement companynon-Controlling k (1,043 ) (3,128 ) 4,171 ? (1,033 ) (4,551 ) 5,584 ? interestTotal ManagementPresentation 2,629 (63,957 ) (12,906 ) (74,234 ) 1,436 (53,264 ) (3,931 ) (55,759 )Reclassifications:Fund Consolidated l ? (519 ) 3,698 3,179 ? (4,793 ) 29,358 24,565 ReclassificationsIncome Statement Adjustments:Acquisition n ? (1,324 ) ? (1,324 ) ? (34 ) ? (34 )related amountsContingentliability n ? (2,677 ) ? (2,677 ) ? (4,781 ) ? (4,781 )adjustmentsGoodwill and/or r ? ? ? ? ? (545 ) ? (545 )other impairmentTotal IncomeStatement ? (4,001 ) ? (4,001 ) ? (5,360 ) ? (5,360 )Adjustments:Total Economic $ 811,697 $ 279,310 $ 4,171 $ 1,095,178 $ 584,573 $ 245,366 $ 5,584 $ 835,523 Expenses

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

Three Months Ended Nine Months Ended September 30, September 30,(Dollar amounts in 2021 2020 2021 2020thousands) US GAAP Net income (loss)attributable to Cowen $ 36,105 $ 18,586 $ 225,536 $ 119,102 Inc. common stockholdersIncome Statement Adjustments:US GAAP Income tax o 12,192 8,830 76,864 52,589 expense (benefit)Amortization of discount m 26 1,152 1,571 3,394 (premium) on debtGoodwill and/or other r ? ? ? 545 impairmentDebt extinguishment gain(loss) and/or accelerated p ? ? 10,095 ? debt costsBargain purchase gain n ? ? (3,855 ) ? Contingent liability n 4,244 3,023 2,677 4,781 adjustmentsAcquisition related n 1,007 171 1,324 34 amountsPreferred dividends q 1,698 1,698 5,094 5,094 Pre-tax Economic Income 55,272 33,460 319,306 185,539 (Loss)Economic income tax (13,855 ) ? (84,616 ) ? expensePreferred dividends (1,698 ) (1,698 ) (5,094 ) (5,094 )Economic Income (Loss) 39,719 31,762 229,596 180,445 Add back: Depreciationand amortization expense, 3,553 5,682 10,085 16,779 net of taxesEconomic Operating Income $ 43,272 $ 37,444 $ 239,681 $ 197,224 (Loss)

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

Three Months Ended Nine Months Ended September 30, September 30,(Dollars per share) 2021 2020 2021 2020 US GAAP Net income (loss)attributable to Cowen Inc. common $ 1.10 $ 0.62 $ 6.78 $ 4.02 stockholdersIncome Statement Adjustments: US GAAP Income tax expense (benefit) o 0.37 0.29 2.31 1.77 Amortization of discount (premium) m ? 0.04 0.05 0.11 on debtGoodwill and/or other impairment r ? ? ? 0.02 Debt extinguishment gain (loss) and p ? ? 0.30 ? accelerated debt costsBargain purchase gain n ? ? (0.12 ) ? Contingent liability adjustments n 0.13 0.10 0.08 0.15 Acquisition related amounts n 0.03 0.01 0.04 ? Preferred dividends q 0.05 0.06 0.15 0.17 Pre-tax Economic Income (Loss) per 1.69 1.12 9.60 6.25 common share (diluted)Economic income tax expense (0.42 ) ? (2.54 ) ? Preferred dividends (0.05 ) (0.06 ) (0.15 ) (0.17 )Economic income (Loss) per common 1.21 1.06 6.90 6.08 share (diluted)Add back: Depreciation and 0.11 0.19 0.31 0.58 amortization expense, net of taxesEconomic Operating Income (Loss) per $ 1.32 $ 1.25 $ 7.22 $ 6.66 common share (diluted)

Note: Amounts may not add due to rounding.

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 Operating Income (Loss). These adjustments are reclassifications to change the location of certain line items.a Underwriting expenses: Economic Proceeds presents investment banking revenues net of underwriting expenses. Reimbursable client expenses: Economic Proceeds presents expenses reimbursedb from clients and affiliates within their respective expense category but is included as a part of revenues under US GAAP. Securities financing interest expense: Brokerage Economic Proceeds includedc net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP. Fund start-up costs, distribution and other fees: Economic Proceeds andd Economic Interest Expense are net of fund start-up costs and distribution fees paid to agents and other debt service costs. Certain equity method investments: Economic Proceeds and Economic Expenses recognize the Company's proportionate share of management and incentive fees and associated share of expenses on a gross basis for equity methode investments 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 Investment income - Carried interest allocation for US GAAP. The Company presents carried interest as Incentive Income Economic Proceeds. Proprietary trading, interest and dividends: Economic Proceeds presentsg interest and dividends from the Company's proprietary trading in investment income. Insurance related activities expenses: Economic Proceeds presentsh 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 Brokerage Proceeds presents gains and losses on investments held as part of the Company's facilitationi and trading business within brokerage revenues as these investments are directly related to the markets business activities while these are presented in Investment income - Securities principal transactions, net for US GAAP reporting. Associated partner/banker compensation reclassification: Economicj Compensation Expense presents certain payments to associated banking partners as compensation rather than non-compensation expenses. Management company non-controlling interest: Economic Expensesk 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 Pre-tax Economic Income (Loss) excludes the amortization of discount (premium) on debt.n Pre-tax Economic Income (Loss) excludes acquisition related adjustments (including bargain purchase gain and contingent liability adjustments).o Pre-tax Economic Income (Loss) excludes US GAAP income taxes.p Pre-tax Economic Income (Loss) excludes gain/(loss) on debt extinguishment and accelerated debt costs.q Pre-tax Economic income (Loss) excludes preferred dividends.r Economic Income (Loss) excludes goodwill and other impairments.

Earnings Conference Call

Management will hold a conference call today, October 29, 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: 1874925

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/pav6n9i6

A replay of the call will be available for one week beginning at 12:00 pm ET on October 29, 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: 1874925

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 atCowen.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.