The following tables set forth operating results for the Company's alternative investment and broker dealer segments and related adjustments necessary to reconcile the Company's Economic Income (Loss) measure to arrive at the Company's consolidated US GAAP net income (loss):



	Three Months Ended June 30, 2012
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	16,254		$	16,254		$	—		$	—			$	16,254
Brokerage	—			24,568			24,568			—			—				24,568
Management fees	14,586			—			14,586			(394		)	(4,260		)	(a)	9,932
Incentive income	2,583			—			2,583			—			(2,003		)	(a)	580
Investment Income	6,694			1,592			8,286			—			(8,286		)	(c)	—
Interest and dividends	—			—			—			—			5,868			(c)	5,868
Reimbursement from affiliates	—			—			—			(54		)	1,435			(b)	1,381
Other revenue	216			(287		)	(71		)	—			902			(c)	831
Consolidated Funds revenues	—			—			—			56			—				56
Total revenues	24,079			42,127			66,206			(392		)	(6,344		)		59,470
Expenses
Employee compensation and benefits	13,500			28,145			41,645			—			1,452				43,097
Interest and dividends	12			47			59			—			3,148			(c)	3,207
Non-compensation expenses—Fixed	8,560			15,929			24,489			—			(24,489		)	(c)(d)	—
Non-compensation expenses—Variable	1,138			6,000			7,138			—			(7,138		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			30,486			(c)(d)	30,486
Reimbursement from affiliates	(1,435		)	—			(1,435		)	—			1,435			(b)	—
Consolidated Funds expenses	—			—			—			635			—				635
Total expenses	21,775			50,121			71,896			635			4,894				77,425
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	—			—			—			—			9,787			(c)	9,787
Consolidated Funds net gains (losses)	—			—			—			(1,707		)	(314		)		(2,021		)
Total other income (loss)	—			—			—			(1,707		)	9,473				7,766
Income (loss) before income taxes and non-controlling interests	2,304			(7,994		)	(5,690		)	(2,734		)	(1,765		)		(10,189		)
Income taxes expense / (benefit)	—			—			—			—			191			(b)	191
Economic Income (Loss) / Net income (loss) before non-controlling interests	2,304			(7,994		)	(5,690		)	(2,734		)	(1,956		)		(10,380		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(300		)	—			(300		)	2,734			—				2,434
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. stockholders	$	2,004		$	(7,994	)	$	(5,990	)	$	—		$	(1,956	)		$	(7,946	)

(1) For the three months ended June 30, 2012 the Company has reflected $1.7 million of investment income and related compensation expense of $0.6 million within the broker-dealer segment in proportion to its capital.



	Three Months Ended June 30, 2011
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	14,343		$	14,343		$	—		$	—			$	14,343
Brokerage	11			24,596			24,607			—			—				24,607
Management fees	15,539			—			15,539			(466		)	(3,216		)	(a)	11,857
Incentive income	5,697			—			5,697			—			(5,022		)	(a)	675
Investment Income	22,789			(89		)	22,700			—			(22,700		)	(c)	—
Interest and dividends	—			—			—			—			5,840			(c)	5,840
Reimbursement from affiliates	—			—			—			(8		)	989			(b)	981
Other revenue	(278		)	(203		)	(481		)	—			713			(c)	232
Consolidated Funds revenues	—			—			—			144			—				144
Total revenues	43,758			38,647			82,405			(330		)	(23,396		)		58,679
Expenses
Employee compensation and benefits	15,037			27,330			42,367			—			1,208				43,575
Interest and dividends	49			169			218			—			2,897			(c)	3,115
Non-compensation expenses—Fixed	8,724			17,552			26,276			—			(26,276		)	(c)(d)	—
Non-compensation expenses—Variable	6,591			5,915			12,506			—			(12,506		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			33,666			(c)(d)	33,666
Reimbursement from affiliates	(989		)	—			(989		)	—			989			(b)	—
Consolidated Funds expenses	—			—			—			872			—				872
Total expenses	29,412			50,966			80,378			872			(22		)		81,228
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	—			—			—			—			76			(c)	76
Bargain purchase gain	—			—			—			—			22,244			(e)	22,244
Consolidated Funds net gains (losses)	—			—			—			2,195			2,575				4,770
Total other income (loss)	—			—			—			2,195			24,895				27,090
Income (loss) before income taxes and non-controlling interests	14,346			(12,319		)	2,027			993			1,521				4,541
Income taxes expense / (benefit)	—			—			—			—			(17,954		)	(b)	(17,954		)
Economic Income (Loss) / Net income (loss) before non-controlling interests	14,346			(12,319		)	2,027			993			19,475				22,495
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(1,465		)	—			(1,465		)	(993		)	—				(2,458		)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. stockholders	$	12,881		$	(12,319	)	$	562		$	—		$	19,475			$	20,037

(1) For the three months ended June 30, 2011, the Company has reflected $6.4 million of investment income and related compensation expense of $1.9 million within the broker-dealer segment in proportion to its capital.



	Six Months Ended June 30, 2012
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	31,884		$	31,884		$	—		$	—			$	31,884
Brokerage	—			48,581			48,581			—			—				48,581
Management fees	28,606			—			28,606			(787		)	(8,170		)	(a)	19,649
Incentive income	6,605			—			6,605			—			(5,334		)	(a)	1,271
Investment Income	23,496			5,895			29,391			—			(29,391		)	(c)	—
Interest and dividends	—			—			—			—			11,240			(c)	11,240
Reimbursement from affiliates	—			—			—			(125		)	2,551			(b)	2,426
Other revenue	340			(27		)	313			—			1,385			(c)	1,698
Consolidated Funds revenues	—			—			—			200			—				200
Total revenues	59,047			86,333			145,380			(712		)	(27,719		)		116,949
Expenses
Employee compensation and benefits	30,946			56,608			87,554			—			2,226				89,780
Interest and dividends	30			117			147			—			4,784			(c)	4,931
Non-compensation expenses—Fixed	15,529			30,203			45,732			—			(45,732		)	(c)(d)	—
Non-compensation expenses—Variable	2,447			11,566			14,013			—			(14,013		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			58,444			(c)(d)	58,444
Reimbursement from affiliates	(2,551		)	—			(2,551		)	—			2,551			(b)	—
Consolidated Funds expenses	—			—			—			1,009			—				1,009
Total expenses	46,401			98,494			144,895			1,009			8,260				154,164
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	—			—			—			—			29,458			(c)	29,458
Consolidated Funds net gains (losses)	—			—			—			934			3,012				3,946
Total other income (loss)	—			—			—			934			32,470				33,404
Income (loss) before income taxes and non-controlling interests	12,646			(12,161		)	485			(787		)	(3,509		)		(3,811		)
Income taxes expense / (benefit)	—			—			—			—			333			(b)	333
Economic Income (Loss) / Net income (loss) before non-controlling interests	12,646			(12,161		)	485			(787		)	(3,842		)		(4,144		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(600		)	—			(600		)	787			6				193
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders	$	12,046		$	(12,161	)	$	(115	)	$	—		$	(3,836	)		$	(3,951	)

(1) For the six months ended June 30, 2012, the Company has reflected $5.9 million of investment income and related compensation expense of $1.9 million within the broker-dealer segment in proportion to its capital.



	Six Months Ended June 30, 2011
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	29,025		$	29,025		$	—		$	—			$	29,025
Brokerage	74			52,124			52,198			—			—				52,198
Management fees	29,586			—			29,586			(979		)	(5,586		)	(a)	23,021
Incentive income	10,860			—			10,860			—			(5,804		)	(a)	5,056
Investment Income	33,822			6,087			39,909			—			(39,909		)	(c)	—
Interest and dividends	—			—			—			—			10,399			(c)	10,399
Reimbursement from affiliates	—			—			—			(168		)	2,158			(b)	1,990
Other revenue	974			(401		)	573			—			349			(c)	922
Consolidated Funds revenues	—			—			—			313			—				313
Total revenues	75,316			86,835			162,151			(834		)	(38,393		)		122,924
Expenses
Employee compensation and benefits	30,871			54,233			85,104			—			3,558				88,662
Interest and dividends	105			330			435			—			5,289			(c)	5,724
Non-compensation expenses—Fixed	15,718			32,145			47,863			—			(47,863		)	(c)(d)	—
Non-compensation expenses—Variable	8,687			12,767			21,454			—			(21,454		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			67,571			(c)(d)	67,571
Reimbursement from affiliates	(2,158		)	—			(2,158		)	—			2,158			(b)	—
Consolidated Funds expenses	—			—			—			1,501			—				1,501
Total expenses	53,223			99,475			152,698			1,501			9,259				163,458
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	—			—			—			—			17,358			(c)	17,358
Bargain purchase gain	—			—			—			—			22,244			(e)	22,244
Consolidated Funds net gains (losses)	—			—			—			3,651			2,865				6,516
Total other income (loss)	—			—			—			3,651			42,467				46,118
Income (loss) before income taxes and non-controlling interests	22,093			(12,640		)	9,453			1,316			(5,185		)		5,584
Income taxes expense / (benefit)	—			—			—			—			(17,791		)	(b)	(17,791		)
Economic Income (Loss) / Net income (loss) before non-controlling interests	22,093			(12,640		)	9,453			1,316			12,606				23,375
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(1,940		)	—			(1,940		)	(1,316		)	—				(3,256		)
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders	$	20,153		$	(12,640	)	$	7,513		$	—		$	12,606			$	20,119

(1) For the six months ended June 30, 2011, the Company has reflected $6.4 million of investment income and related compensation expense of $1.9 million within the broker-dealer segment in proportion to its capital.