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):



	Year Ended December 31, 2012
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	71,762		$	71,762		$	—		$	—			$	71,762
Brokerage	—			93,903			93,903			—			(2,736		)	(g)	91,167
Management fees	56,381			—			56,381			(1,474		)	(16,791		)	(a)	38,116
Incentive income	15,205			—			15,205			—			(9,794		)	(a)	5,411
Investment Income	40,374			9,742			50,116			—			(50,116		)	(c)	—
Interest and dividends	—			—			—			—			24,608			(c)	24,608
Reimbursement from affiliates	—			—			—			(288		)	5,527			(b)	5,239
Other revenue	844			404			1,248			—			2,420			(c)	3,668
Consolidated Funds revenues	—			—			—			509			—				509
Total revenues	112,804			175,811			288,615			(1,253		)	(46,882		)		240,480
Expenses
Employee compensation and benefits	61,897			128,508			190,405			—			3,629				194,034
Interest and dividends	151			188			339			—			11,421			(c)	11,760
Non-compensation expenses—Fixed	32,575			62,887			95,462			—			(95,462		)	(c)(d)	—
Non-compensation expenses—Variable	4,941			20,334			25,275			—			(25,275		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			119,430			(c)(d)	119,430
Reimbursement from affiliates	(5,527		)	—			(5,527		)	—			5,527			(b)	—
Consolidated Funds expenses	—			—			—			1,676			—				1,676
Total expenses	94,037			211,917			305,954			1,676			19,270				326,900
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	—			—			—			—			55,665			(c)	55,665
Consolidated Funds net gains (losses)	—			—			—			2,556			4,690				7,246
Total other income (loss)	—			—			—			2,556			60,355				62,911
Income (loss) before income taxes and non-controlling interests	18,767			(36,106		)	(17,339		)	(373		)	(5,797		)		(23,509		)
Income taxes expense / (benefit)	—			—			—			—			448			(b)	448
Economic Income (Loss) / Net income (loss) before non-controlling interests	18,767			(36,106		)	(17,339		)	(373		)	(6,245		)		(23,957		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(230		)	—			(230		)	373			(71		)		72
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders	$	18,537		$	(36,106	)	$	(17,569	)	$	—		$	(6,316	)		$	(23,885	)

(1) For the year ended December 31, 2012, the Company has reflected $10.2 million of investment income and related compensation expense of $3.4 million within the broker-dealer segment in proportion to its capital.



	Year Ended December 31, 2011
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	50,976		$	50,976		$	—		$	—			$	50,976
Brokerage	—			99,611			99,611			—			—				99,611
Management fees	67,309			—			67,309			(1,809		)	(13,034		)	(a)	52,466
Incentive income	10,366			—			10,366			—			(7,101		)	(a)	3,265
Investment Income	33,599			7,748			41,347			—			(41,347		)	(c)	—
Interest and dividends	—			—			—			—			22,306			(c)	22,306
Reimbursement from affiliates	—			—			—			(280		)	4,602			(b)	4,322
Other revenue	622			(7		)	615			—			968			(c)	1,583
Consolidated Funds revenues	—			—			—			749			—				749
Total revenues	111,896			158,328			270,224			(1,340		)	(33,606		)		235,278
Expenses
Employee compensation and benefits	49,007			145,801			194,808			—			8,959				203,767
Interest and dividends	184			551			735			—			8,104			(c)	8,839
Non-compensation expenses—Fixed	33,954			69,227			103,181			—			(103,181		)	(c)(d)	—
Non-compensation expenses—Variable	17,085			24,412			41,497			—			(41,497		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			153,116			(c)(d)	153,116
Goodwill impairment	—			—			—			—			7,151			(h)	7,151
Reimbursement from affiliates	(4,602		)	—			(4,602		)	—			4,602			(b)	—
Consolidated Funds expenses	—			—			—			2,782			—				2,782
Total expenses	95,628			239,991			335,619			2,782			37,254				375,655
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	—			—			—			—			15,128			(c)	15,128
Bargain purchase gain	—			—			—			—			22,244			(e)	22,244
Consolidated Funds net gains (losses)	—			—			—			2,947			1,448				4,395
Total other income (loss)	—			—			—			2,947			38,820				41,767
Income (loss) before income taxes and non-controlling interests	16,268			(81,663		)	(65,395		)	(1,175		)	(32,040		)		(98,610		)
Income taxes expense / (benefit)	—			—			—			—			(20,073		)	(b)	(20,073		)
Economic Income (Loss) / Net income (loss) before non-controlling interests	16,268			(81,663		)	(65,395		)	(1,175		)	(11,967		)		(78,537		)
Net income (loss) from discontinued operations, net of tax	—			—			—			—			(23,646		)	(f)	(23,646		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(6,042		)	—			(6,042		)	1,175			(960		)		(5,827		)
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders	$	10,226		$	(81,663	)	$	(71,437	)	$	—		$	(36,573	)		$	(108,010	)

(1) For the year ended December 31, 2011, the Company has reflected $5.6 million of investment income and related compensation expense of $1.8 million within the broker-dealer segment in proportion to its capital.



	Year Ended December 31, 2010
										Adjustments
	Alternative Investment			Broker-Dealer (1)			Total Economic Income/(Loss)			Funds Consolidation			Other Adjustments				US GAAP
	(dollars in thousands)
Revenues
Investment banking	$	—		$	38,965		$	38,965		$	—		$	—			$	38,965
Brokerage	—			112,217			112,217			—			—				112,217
Management fees	51,440			—			51,440			(2,877		)	(9,716		)	(a)	38,847
Incentive income	9,615			—			9,615			—			1,748			(a)	11,363
Investment Income	50,958			8,459			59,417			—			(59,417		)	(c)	—
Interest and dividends	—			—			—			—			11,547			(c)	11,547
Reimbursement from affiliates	—			—			—			(499		)	7,315			(b)	6,816
Other revenue	932			7			939			—			997			(c)	1,936
Consolidated Funds revenues	—			—			—			12,119			—				12,119
Total revenues	112,945			159,648			272,593			8,743			(47,526		)		233,810
Expenses
Employee compensation and benefits	55,966			129,927			185,893			—			9,026				194,919
Interest and dividends	265			761			1,026			—			7,945			(c)	8,971
Non-compensation expenses—Fixed	28,963			63,494			92,457			—			(92,457		)	(c)(d)	—
Non-compensation expenses—Variable	7,338			27,022			34,360			—			(34,360		)	(c)(d)	—
Non-compensation expenses	—			—			—			—			127,931			(c)(d)	127,931
Reimbursement from affiliates	(7,315		)	—			(7,315		)	—			7,315			(b)	—
Consolidated Funds expenses	—			—			—			8,121			—				8,121
Total expenses	85,217			221,204			306,421			8,121			25,400				339,942
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	—			—			—			—			21,980			(c)	21,980
Consolidated Funds net gains (losses)	—			—			—			11,346			19,716				31,062
Total other income (loss)	—			—			—			11,346			41,696				53,042
Income (loss) before income taxes and non-controlling interests	27,728			(61,556		)	(33,828		)	11,968			(31,230		)		(53,090		)
Income taxes expense / (benefit)	—			—			—			—			(21,400		)	(b)	(21,400		)
Economic Income (Loss) / Net income (loss) before non-controlling interests	27,728			(61,556		)	(33,828		)	11,968			(9,830		)		(31,690		)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries	(1,759		)	—			(1,759		)	(11,968		)	—				(13,727		)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. stockholders	$	25,969		$	(61,556	)	$	(35,587	)	$	—		$	(9,830	)		$	(45,417	)

(1) For the year ended December 31, 2010, the Company has reflected $8.7 million of investment income and related compensation expense of $2.9 million within the broker-dealer segment in proportion to its capital.