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 September 30, 2012
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	18,666		$	18,666		$	—		$	—			$	18,666
Brokerage	—			22,701			22,701			—			—				22,701
Management fees	13,426			—			13,426			(362		)	(4,198		)	(a)	8,866
Incentive income	1,699			—			1,699			—			(283		)	(a)	1,416
Investment Income	6,864			2,288			9,152			—			(9,152		)	(c)	—
Interest and dividends	—			—			—			—			3,605			(c)	3,605
Reimbursement from affiliates	—			—			—			(97		)	1,467			(b)	1,370
Other revenue	168			213			381			—			320			(c)	701
Consolidated Funds revenues	—			—			—			273			—				273
Total revenues	22,157			43,868			66,025			(186		)	(8,241		)		57,598
Expenses
Employee compensation and benefits	11,759			34,490			46,249			—			1,073				47,322
Interest and dividends	93			38			131			—			1,826			(c)	1,957
Non-compensation expenses—Fixed	8,564			15,452			24,016			—			(24,016		)	(c)(d)	—
Non-compensation expenses—Variable	1,433			4,287			5,720			—			(5,720		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			29,445			(c)(d)	29,445
Reimbursement from affiliates	(1,467		)	—			(1,467		)	—			1,467			(b)	—
Consolidated Funds expenses	—			—			—			330			—				330
Total expenses	20,382			54,267			74,649			330			4,075				79,054
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	—			—			—			—			12,510			(c)	12,510
Consolidated Funds net gains (losses)	—			—			—			(815		)	(1,694		)		(2,509		)
Total other income (loss)	—			—			—			(815		)	10,816				10,001
Income (loss) before income taxes and non-controlling interests	1,775			(10,399		)	(8,624		)	(1,331		)	(1,500		)		(11,455		)
Income taxes expense / (benefit)	—			—			—			—			163			(b)	163
Economic Income (Loss) / Net income (loss) before non-controlling interests	1,775			(10,399		)	(8,624		)	(1,331		)	(1,663		)		(11,618		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(301		)	—			(301		)	1,331			3				1,033
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. stockholders	$	1,474		$	(10,399	)	$	(8,925	)	$	—		$	(1,660	)		$	(10,585	)

(1) For the three months ended September 30, 2012 the Company has reflected $2.3 million of investment income and related compensation expense of $0.8 million within the broker-dealer segment in proportion to its capital.



	Three Months Ended September 30, 2011
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	10,816		$	10,816		$	—		$	—			$	10,816
Brokerage	306			25,364			25,670			—			—				25,670
Management fees	18,476			—			18,476			(428		)	(3,270		)	(a)	14,778
Incentive income	(643		)	—			(643		)	—			(1,180		)	(a)	(1,823		)
Investment Income	(13,795		)	(3,233		)	(17,028		)	—			17,028			(c)	—
Interest and dividends	—			—			—			—			10,930			(c)	10,930
Reimbursement from affiliates	—			—			—			(49		)	1,027			(b)	978
Other revenue	41			(128		)	(87		)	—			396			(c)	309
Consolidated Funds revenues	—			—			—			301			—				301
Total revenues	4,385			32,819			37,204			(176		)	24,931				61,959
Expenses
Employee compensation and benefits	10,724			31,474			42,198			—			1,453				43,651
Interest and dividends	52			130			182			—			1,722			(c)	1,904
Non-compensation expenses—Fixed	7,445			18,367			25,812			—			(25,812		)	(c)(d)	—
Non-compensation expenses—Variable	4,315			5,610			9,925			—			(9,925		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			34,340			(c)(d)	34,340
Reimbursement from affiliates	(1,028		)	—			(1,028		)	—			1,028			(b)	—
Consolidated Funds expenses	—			—			—			1,135			—				1,135
Total expenses	21,508			55,581			77,089			1,135			2,806				81,030
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	—			—			—			—			(21,989		)	(c)	(21,989		)
Consolidated Funds net gains (losses)	—			—			—			(619		)	(2,179		)		(2,798		)
Total other income (loss)	—			—			—			(619		)	(24,168		)		(24,787		)
Income (loss) before income taxes and non-controlling interests	(17,123		)	(22,762		)	(39,885		)	(1,930		)	(2,043		)		(43,858		)
Income taxes expense / (benefit)	—			—			—			—			72			(b)	72
Economic Income (Loss) / Net income (loss) before non-controlling interests	(17,123		)	(22,762		)	(39,885		)	(1,930		)	(2,115		)		(43,930		)
Net income (loss) from discontinued operations, net of tax	—			—			—			—			(5,087		)	(f)	(5,087		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(810		)	—			(810		)	1,930			(337		)		783
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. stockholders	$	(17,933	)	$	(22,762	)	$	(40,695	)	$	—		$	(7,539	)		$	(48,234	)

(1) For the three months ended September 30, 2011, the Company has reflected an adjustment of $5.1 million of investment income and related compensation expense of $1.7 million out of the broker-dealer segment in proportion to its capital.



	Nine Months Ended September 30, 2012
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	50,550		$	50,550		$	—		$	—			$	50,550
Brokerage	—			71,282			71,282			—			—				71,282
Management fees	42,032			—			42,032			(1,150		)	(12,367		)	(a)	28,515
Incentive income	8,303			—			8,303			—			(5,616		)	(a)	2,687
Investment Income	30,361			8,182			38,543			—			(38,543		)	(c)	—
Interest and dividends	—			—			—			—			14,845			(c)	14,845
Reimbursement from affiliates	—			—			—			(222		)	4,018			(b)	3,796
Other revenue	508			186			694			—			1,704			(c)	2,398
Consolidated Funds revenues	—			—			—			474			—				474
Total revenues	81,204			130,200			211,404			(898		)	(35,959		)		174,547
Expenses
Employee compensation and benefits	42,705			91,098			133,803			—			3,299				137,102
Interest and dividends	123			155			278			—			6,610			(c)	6,888
Non-compensation expenses—Fixed	24,093			45,655			69,748			—			(69,748		)	(c)(d)	—
Non-compensation expenses—Variable	3,881			15,852			19,733			—			(19,733		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			87,889			(c)(d)	87,889
Reimbursement from affiliates	(4,018		)	—			(4,018		)	—			4,018			(b)	—
Consolidated Funds expenses	—			—			—			1,339			—				1,339
Total expenses	66,784			152,760			219,544			1,339			12,335				233,218
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	—			—			—			—			41,969			(c)	41,969
Consolidated Funds net gains (losses)	—			—			—			119			1,318				1,437
Total other income (loss)	—			—			—			119			43,287				43,406
Income (loss) before income taxes and non-controlling interests	14,420			(22,560		)	(8,140		)	(2,118		)	(5,007		)		(15,265		)
Income taxes expense / (benefit)	—			—			—			—			496			(b)	496
Economic Income (Loss) / Net income (loss) before non-controlling interests	14,420			(22,560		)	(8,140		)	(2,118		)	(5,503		)		(15,761		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(900		)	—			(900		)	2,118			7				1,225
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders	$	13,520		$	(22,560	)	$	(9,040	)	$	—		$	(5,496	)		$	(14,536	)

(1) For the nine months ended September 30, 2012, the Company has reflected $8.2 million of investment income and related compensation expense of $2.7 million within the broker-dealer segment in proportion to its capital.



	Nine Months Ended September 30, 2011
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	39,841		$	39,841		$	—		$	—			$	39,841
Brokerage	380			77,488			77,868			—			—				77,868
Management fees	48,062			—			48,062			(1,407		)	(8,856		)	(a)	37,799
Incentive income	10,217			—			10,217			—			(6,984		)	(a)	3,233
Investment Income	20,027			2,854			22,881			—			(22,881		)	(c)	—
Interest and dividends	—			—			—			—			21,330			(c)	21,330
Reimbursement from affiliates	—			—			—			(217		)	3,185			(b)	2,968
Other revenue	1,015			(529		)	486			—			744			(c)	1,230
Consolidated Funds revenues	—			—			—			614			—				614
Total revenues	79,701			119,654			199,355			(1,010		)	(13,462		)		184,883
Expenses
Employee compensation and benefits	41,595			85,707			127,302			—			5,011				132,313
Interest and dividends	157			460			617			—			7,010			(c)	7,627
Non-compensation expenses—Fixed	23,163			50,512			73,675			—			(73,675		)	(c)(d)	—
Non-compensation expenses—Variable	13,002			18,377			31,379			—			(31,379		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			101,911			(c)(d)	101,911
Reimbursement from affiliates	(3,186		)	—			(3,186		)	—			3,186			(b)	—
Consolidated Funds expenses	—			—			—			2,635			—				2,635
Total expenses	74,731			155,056			229,787			2,635			12,064				244,486
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	—			—			—			—			(4,631		)	(c)	(4,631		)
Bargain purchase gain	—			—			—			—			22,244			(e)	22,244
Consolidated Funds net gains (losses)	—			—			—			3,031			686				3,717
Total other income (loss)	—			—			—			3,031			18,299				21,330
Income (loss) before income taxes and non-controlling interests	4,970			(35,402		)	(30,432		)	(614		)	(7,227		)		(38,273		)
Income taxes expense / (benefit)	—			—			—			—			(17,720		)	(b)	(17,720		)
Economic Income (Loss) / Net income (loss) before non-controlling interests	4,970			(35,402		)	(30,432		)	(614		)	10,493				(20,553		)
Net income (loss) from discontinued operations, net of tax	—			—			—			—			(5,087		)	(f)	(5,087		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(2,750		)	—			(2,750		)	614			(337		)		(2,473		)
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders	$	2,220		$	(35,402	)	$	(33,182	)	$	—		$	5,069			$	(28,113	)

(1) For the nine months ended September 30, 2011, the Company has reflected $1.3 million of investment income and related compensation expense of $0.2 million within the broker-dealer segment in proportion to its capital.