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Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
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 March 31, 2016
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
Alternative
Investment
 
Broker-Dealer
 
Total Economic Income/(Loss)
 
Funds
Consolidation
 
Other
Adjustments
 
 
 
US GAAP
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking
$
—

 
$
26,147

 
$
26,147

 
$
—

 
$
—

 
 
 
$
26,147

Brokerage
—

 
52,867

 
52,867

 
—

 
(1,932
)
 

 
50,935

Management fees
16,128

 
775

 
16,903

 
(370
)
 
(5,503
)
 
(a)
 
11,030

Incentive income
6,920

 
—

 
6,920

 
(157
)
 
(5,652
)
 
(a)
 
1,111

Investment Income
1,395

 
455

 
1,850

 
—

 
(1,850
)
 
(c)
 
—

Interest and dividends
—

 
—

 
—

 
—

 
3,653

 
(c)
 
3,653

Reimbursement from affiliates
—

 
—

 
—

 
(14
)
 
3,901

 
(e)
 
3,887

Other revenue
682

 
271

 
953

 
—

 
1,772

 
(c)
 
2,725

Consolidated Funds revenues
—

 
—

 
—

 
1,551

 
—

 
 
 
1,551

Total revenues
25,125

 
80,515

 
105,640

 
1,010

 
(5,611
)
 
 
 
101,039

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Non interest expense
20,261

 
83,761

 
104,022

 
—

 
2,791

 
(c)(d)(b)
 
106,813

Interest and dividends
3,183

 
1,090

 
4,273

 
—

 
3,037

 
(c)
 
7,310

Consolidated Funds expenses
—

 
—

 
—

 
1,816

 
—

 
 
 
1,816

Total expenses
23,444

 
84,851

 
108,295

 
1,816

 
5,828

 
 
 
115,939

Total other income (loss)
—

 
—

 
—

 
(3,413
)
 
6,998

 
(c)
 
3,585

Income taxes expense / (benefit)
—

 
—

 
—

 
—

 
(3,320
)
 
(b)
 
(3,320
)
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds
(2,227
)
 
—

 
(2,227
)
 
4,219

 
2,305

 
 
 
4,297

Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc.
$
(546
)
 
$
(4,336
)
 
$
(4,882
)
 
$
—

 
$
1,184

 
 
 
$
(3,698
)


 
Three Months March 31, 2015
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
Alternative
Investment
 
Broker-Dealer
 
Total Economic Income/(Loss)
 
Funds
Consolidation
 
Other
Adjustments
 
 
 
US GAAP
 
(dollars in thousands)
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment banking
$
—

 
$
65,233

 
$
65,233

 
$
—

 
$
—

 
 
 
$
65,233

Brokerage
18

 
35,505

 
35,523

 
—

 
(69
)
 

 
35,454

Management fees
16,607

 
—

 
16,607

 
(238
)
 
(5,985
)
 
(a)
 
10,384

Incentive income
15,363

 
—

 
15,363

 
(183
)
 
(12,808
)
 
(a)
 
2,372

Investment Income
21,830

 
7,050

 
28,880

 
—

 
(28,880
)
 
(c)
 
—

Interest and dividends
—

 
—

 
—

 
—

 
3,083

 
(c)
 
3,083

Reimbursement from affiliates
—

 
—

 
—

 
(85
)
 
3,727

 
(e)
 
3,642

Other revenue
21

 
48

 
69

 
—

 
599

 
(c)
 
668

Consolidated Funds revenues
—

 
—

 
—

 
258

 
—

 
 
 
258

Total revenues
53,839

 
107,836

 
161,675

 
(248
)
 
(40,333
)
 
 
 
121,094

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Non interest expense
34,834

 
96,329

 
131,163

 
—

 
1,506

 
(c)(d)
 
132,669

Interest and dividends
3,044

 
978

 
4,022

 
—

 
1,757

 
(c)
 
5,779

Consolidated Funds expenses
—

 
—

 
—

 
358

 
—

 
 
 
358

Total expenses
37,878

 
97,307

 
135,185

 
358

 
3,263

 
 
 
138,806

Total other income (loss)
—

 
—

 
—

 
2,407

 
41,670

 
(c)
 
44,077

Income taxes expense / (benefit)
—

 
—

 
—

 
—

 
6,947

 
(b)
 
6,947

(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds
(2,845
)
 
—

 
(2,845
)
 
(1,801
)
 
1,926

 
 
 
(2,720
)
Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc.
$
13,116

 
$
10,529

 
$
23,645

 
$
—

 
$
(6,947
)
 
 
 
$
16,698


 
 
 
 
 
 
 
 
 
 
 
 
 
 

The following is a summary of the adjustments made to US GAAP net income (loss) for the segment to arrive at
Economic Income (Loss):
Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) include elimination of incentive income and management fees earned from the Consolidated Funds and addition of fund expenses excluding management fees paid, fund revenues and investment income (loss).
Other Adjustments:
(a)     Economic Income (Loss) recognizes revenues (i) net of distribution fees paid to agents and (ii) our proportionate share
of management and incentive fees of certain real estate operating entities and the activist business.
(b)    Economic Income (Loss) excludes income taxes and acquisition related adjustments as management does not consider
these items when evaluating the performance of the segment.
(c)     Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) and
underwriting income from the Company's insurance related activities net of expenses.
(d)     Economic Income (Loss) recognizes the Company's proportionate share of expenses for certain real estate and other
operating entities for which the investments are recorded under the equity method of accounting for investments.
(e)    Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of
revenues under US GAAP