10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number: 001-34516

Cowen Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or Other Jurisdiction of Incorporation or Organization)	27-0423711 (I.R.S. Employer Identification No.)
599 Lexington Avenue New York, New York (Address of Principal Executive Offices)	10022 (Zip Code)

(646) 562-1010

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Class A Common Stock, par value $0.01 per share	COWN	The Nasdaq Global Market
7.75% Senior Notes due 2033	COWNL	The Nasdaq Global Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒  No ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐
Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐    No ☒

As of April 29, 2022, there were 27,494,230 shares of the registrant's common stock outstanding.

Item No.			Page No.
PART I. FINANCIAL INFORMATION			4
	1. Unaudited Condensed Consolidated Financial Statements		4
		Condensed Consolidated Statements of Financial Condition	4
		Condensed Consolidated Statements of Operations	6
		Condensed Consolidated Statements of Comprehensive Income (Loss)	7
		Condensed Consolidated Statements of Changes in Equity	8
		Condensed Consolidated Statements of Cash Flows	10
		Notes to Condensed Consolidated Financial Statements	12
	2. Management's Discussion and Analysis of Financial Condition and Results of Operations		60
	3. Quantitative and Qualitative Disclosures About Market Risk		91
	4. Controls and Procedures		91
PART II. OTHER INFORMATION			91
	1. Legal Proceedings		91
	1A. Risk Factors		92
	2. Unregistered Sales of Equity Securities and Use of Proceeds		92
	3. Defaults Upon Senior Securities		93
	4. Mine Safety Disclosures		93
	5. Other Information		93
	6. Exhibits		94
SIGNATURES			95

2

Special Note Regarding Forward-Looking Statements

We have made statements in this Quarterly Report on Form 10-Q (including in "Management's Discussion and Analysis of Financial Condition and Results of Operations") that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking terms such as "may," "might," "will," "would," "could," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "project," "possible," "potential," "intend," "seek" or "continue," the negative of these terms and other comparable terminology or similar expressions. In addition, our management may make forward-looking statements to analysts, representatives of the media and others. These forward-looking statements represent only the Company's beliefs regarding future events (many of which, by their nature, are inherently uncertain and beyond our control) and are predictions only, based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In particular, you should consider the risks contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021 and the risks contained in Item 1A of this periodic report on Form 10-Q for the three months ended March 31, 2022.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We undertake no obligation to update any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations.

Unaudited Condensed Consolidated Financial Statements are presented for the three months ended March 31, 2022 and 2021. The Consolidated Financial Statements as of December 31, 2021 were audited.

3

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements

Cowen Inc. Condensed Consolidated Statements of Financial Condition (dollars in thousands, except share and per share data) (unaudited)
	As of March 31, 2022		As of December 31, 2021
Assets
Cash and cash equivalents	$	512,978	$	914,343
Cash collateral pledged	52,865		47,494
Segregated cash	220,882		194,701
Securities owned, at fair value ($1,704,831 and $1,764,853 were pledged to various parties)	2,763,514		2,660,742
Securities purchased under agreements to resell	19,621		—
Receivable on derivative contracts, at fair value	342,712		286,135
Securities borrowed	1,761,146		1,704,603
Other investments ($131,766 and $137,986 at fair value, respectively)	237,628		274,111
Deposits with clearing organizations, brokers and banks	105,854		111,857
Receivable from brokers, dealers and clearing organizations, net of allowance of $616 and $636, respectively	1,487,911		1,614,347
Receivable from customers, net of allowance of $587 and $687, respectively	159,625		159,418
Fees receivable, net of allowance of $828 and $886, respectively	128,136		145,809
Due from related parties	21,666		31,449
Fixed assets, net of accumulated depreciation and amortization of $52,254 and $50,017, respectively	25,037		25,976
Operating lease right-of-use assets	95,430		93,655
Goodwill	234,005		234,005
Intangible assets, net of accumulated amortization of $37,470 and $33,219, respectively	40,731		44,167
Deferred tax asset, net	19,608		21,765
Other assets, net of allowance of $834 and $0 respectively	99,427		84,828
Consolidated Funds
Cash and cash equivalents	23		296
Other investments	97,182		99,067
Other assets	46		46
Total Assets	$	8,426,027	$	8,748,814
Liabilities, Temporary Equity and Permanent Equity
Liabilities
Securities sold, not yet purchased, at fair value	$	974,867	$	1,201,448
Securities sold under agreements to repurchase	229,192		63,469
Payable for derivative contracts, at fair value	46,814		60,163
Securities loaned	1,735,852		1,586,572
Payable to brokers, dealers and clearing organizations	587,540		586,553
Payable to customers	2,243,654		2,432,612
Commission management payable	126,968		102,990
Compensation payable	176,210		443,580
Operating lease liabilities	99,800		98,883
Notes payable and other debt	625,766		623,371
Fees payable	6,580		16,483
Due to related parties	27		—
Accounts payable, accrued expenses and other liabilities	241,110		236,088
Consolidated Funds
Due to related parties	—		23
Accounts payable, accrued expenses and other liabilities	174		225
Total Liabilities	$	7,094,554	$	7,452,460

4

Cowen Inc. Condensed Consolidated Statements of Financial Condition (dollars in thousands, except share and per share data) (unaudited)
	As of March 31, 2022		As of December 31, 2021
(continued)
Commitments and Contingencies (Note 22)
Redeemable Series A Convertible Preferred stock, par value $0.01 per share: 10,000,000 shares authorized, 120,750 shares issued and outstanding as of March 31, 2022 (aggregate liquidation preference of $120,750) and 10,000,000 shares authorized, 120,750 shares issued and outstanding as of December 31, 2021 (aggregate liquidation preference of $120,750)	$	120,750	$	120,750
Permanent Equity
Class A common stock, par value $0.01 per share: 62,500,000 shares authorized, 56,835,283 shares issued and 27,614,903 outstanding as of March 31, 2022 and 62,500,000 shares authorized, 55,826,893 shares issued and 27,778,964 outstanding as of December 31, 2021, respectively (including 901,374 and 901,374 restricted shares, respectively)	334		334
Class B common stock, par value $0.01 per share: 62,500,000 authorized, no shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	—		—
Additional paid-in capital	1,127,160		1,100,667
Retained earnings	491,189		461,982
Accumulated other comprehensive income (loss)	—		(2)
Less: Class A common stock held in treasury, at cost, 29,220,380 and 28,047,929 shares as of March 31, 2022 and December 31, 2021, respectively	(583,535)		(547,112)
Total Cowen Inc. Stockholders' Equity	1,035,148		1,015,869
Nonredeemable non-controlling interests	175,575		159,735
Total Permanent Equity	$	1,210,723	$	1,175,604
Total Liabilities, Redeemable Preferred Stock and Permanent Equity	$	8,426,027	$	8,748,814

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

Cowen Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
	Three Months Ended March 31,
	2022		2021
Revenues
Investment banking	$	101,542	$	304,834
Brokerage	168,738		173,737
Investment income (loss)
Securities principal transactions, net	91,252		63,965
Portfolio fund principal transactions, net	(6,098)		15,403
Carried interest allocations	(17,067)		96,769
Total investment income (loss)	68,087		176,137
Management fees	16,769		25,742
Incentive income	633		2,258
Interest and dividends	46,335		59,388
Insurance and reinsurance premiums	11,321		7,117
Other revenues, net	(949)		1,660
Consolidated Funds
Principal transactions, net	(1,886)		(3,349)
Interest and dividends	2		2
Total revenues	410,592		747,526
Interest and dividends expense	46,524		57,641
Total net revenues	364,068		689,885
Expenses
Employee compensation and benefits	187,178		388,196
Brokerage and trade execution costs	40,591		45,656
Underwriting expenses	259		6,915
Professional, advisory and other fees	13,682		15,460
Service fees	7,150		5,731
Communications	9,471		9,267
Occupancy and equipment	10,316		9,540
Depreciation and amortization	7,185		4,354
Client services and business development	6,569		6,848
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs	7,343		6,455
Other expenses	12,763		(3,340)
Consolidated Funds
Professional, advisory and other fees	42		110
Other expenses	63		161
Total expenses	302,612		495,353
Other income (loss)
Net gains (losses) on other investments	5,580		12,645
Bargain purchase gain, net of tax	—		3,855
Gain/(loss) on debt extinguishment	—		(4,538)
Total other income (loss)	5,580		11,962
Income (loss) before income taxes	67,036		206,494
Income tax expense (benefit)	11,889		54,428
Net income (loss)	55,147		152,066
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131		4,562
Net income (loss) attributable to Cowen Inc.	35,016		147,504
Preferred stock dividends	1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders	$	33,318	$	145,806
Weighted average common shares outstanding:
Basic	28,386		27,359
Diluted (See Note 21)	31,772		33,565
Earnings (loss) per share:
Basic	$	1.17	$	5.33
Diluted (See Note 21)	$	1.05	$	4.34

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

Cowen Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(dollars in thousands)

(unaudited)

	Three Months Ended March 31,
	2022			2021
Net income (loss)		$	55,147		$	152,066
Other comprehensive income (loss), net of tax:
Foreign currency translation	2			4
Total other comprehensive income (loss), net of tax		2			4
Comprehensive income (loss)		$	55,149		$	152,070
Less: Comprehensive income (loss) attributable to non-controlling interests		20,131			4,562
Comprehensive income (loss) attributable to Cowen Inc.		$	35,018		$	147,508

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

Cowen Inc.

Condensed Consolidated Statements of Changes in Equity

(dollars in thousands, except share data)

(unaudited)

		Three Months Ended March 31,
		2022		2021
Permanent Equity Shares		(in shares)
	Common Shares Outstanding
	Beginning balance	27,778,964		26,845,628
	Restricted stock awards issued	949,803		705,512
	Common stock issuance for partial settlement of contingent liability from prior acquisition	58,587		56,801
	Purchase of treasury stock, at cost	(1,172,451)		(755,610)
	Ending balance	27,614,903		26,852,331
	Series A Convertible Preferred Shares Outstanding
	Beginning balance	—		120,750
	Ending balance	—		120,750
Permanent Equity		(in dollars)
	Total Cowen Inc. Stockholders' Equity (beginning of period)	$	1,015,869	$	969,497
	Class A Common stock
	Beginning balance	334		334
	Ending balance	334		334
	Series A Convertible Preferred stock
	Beginning balance	—		1
	Ending balance	—		1
	Treasury stock
	Beginning balance	(547,112)		(346,870)
	Purchase of treasury stock, at cost	(36,423)		(26,904)
	Ending balance	(583,535)		(373,774)
	Additional Paid-in Capital
	Beginning balance	1,100,667		1,130,138
	Common stock issuance for partial settlement of contingent liability from prior acquisition	1,881		2,202
	Amortization of share based awards	24,612		19,037
	Ending balance	$	1,127,160	$	1,151,377
	Accumulated Other Comprehensive Income (Loss)
	Beginning balance	$	(2)	$	(7)
	Foreign currency translation	2		4
	Ending balance	—		(3)

8

		Three Months Ended March 31,
		2022		2021
		(in dollars)
	Retained Earnings/ (Accumulated deficit)
	Beginning balance	461,982		185,901
	Net income (loss) attributable to Cowen Inc.	35,016		147,504
	Preferred stock dividends (See Note 13)	(1,698)		(1,698)
	Cash dividends to common stockholders (See Note 14)	(4,111)		(2,777)
	Ending balance	491,189		328,930
	Total Cowen Inc. Stockholders' Equity (end of period)	$	1,035,148	$	1,106,865
	Nonredeemable Non-controlling Interests
	Beginning balance	$	159,735	$	199,624
	Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131		4,562
	Capital contributions	1,610		22,515
	Capital distributions	(5,901)		(18,773)
	Deconsolidation of entity	—		(74,813)
	Ending balance	175,575		133,115
Total Permanent Equity		$	1,210,723	$	1,239,980

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

9

Cowen Inc. Condensed Consolidated Statements of Cash Flows (dollars in thousands) (unaudited)
	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	55,147	$	152,066
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Bargain purchase gain, net of tax	—		(3,855)
Depreciation and amortization	7,185		4,354
Amortization of debt issuance costs	604		480
Amortization of debt discount (premium)	77		776
Noncash lease expense	(858)		(362)
(Gain) / loss on extinguishment of debt	—		3,890
Share-based awards	24,612		19,037
Change in deferred taxes	2,157		5,913
Net loss (gain) on disposal of fixed assets	101		—
Contingent liability adjustment	—		(614)
Purchases of securities owned, at fair value	(269,037)		(269,073)
Proceeds from sales of securities owned, at fair value	243,634		271,314
Proceeds from sales of securities sold, not yet purchased, at fair value	131,199		63,511
Payments to cover securities sold, not yet purchased, at fair value	(141,186)		(58,346)
Proceeds from sales of other investments	16,780		16,995
Investment Income (loss) principal transactions, net	(22,115)		(158,833)
Consolidated Funds
Proceeds from sales of securities owned, at fair value	—		2,687
Proceeds from other investments	—		14,130
Investment Income (loss) principal transactions, net	1,886		3,143
(Increase) decrease in operating assets:
Securities owned, at fair value, held at broker-dealer	(46,185)		(1,112,154)
Receivable on derivative contracts, at fair value	(56,577)		(44,054)
Securities borrowed	(56,543)		(88,570)
Deposits with clearing organizations, brokers and banks	6,003		22,874
Receivable from brokers, dealers and clearing organizations	126,436		(191,009)
Receivable from customers, net of allowance	(207)		(95,705)
Fees receivable, net of allowance	17,673		(46,170)
Due from related parties	9,783		440
Other assets	(14,597)		(9,344)
Consolidated Funds
Receivable on derivative contracts, at fair value	—		(2,917)
Other assets	—		13
Increase (decrease) in operating liabilities:
Securities sold, not yet purchased, at fair value, held at broker-dealer	(208,080)		187,749
Securities sold under agreement to repurchase	165,723		(2,490)
Payable for derivative contracts, at fair value	(13,348)		(24,035)
Securities loaned	149,280		607,531
Payable to brokers, dealers and clearing organizations	987		73,328
Payable to customers	(188,958)		977,274
Commission management payable	23,978		22,634
Compensation payable	(279,653)		(17,809)
Fees payable	(9,903)		(918)
Due to related parties	27		48
Accounts payable, accrued expenses and other liabilities	14,907		39,591
Consolidated Funds
Due to related parties	(23)		—
Accounts payable, accrued expenses and other liabilities	(51)		(359)
Net cash provided by / (used in) operating activities	(309,142)		363,161

10

Cowen Inc. Condensed Consolidated Statements of Cash Flows (dollars in thousands) (unaudited)
	Three Months Ended March 31,
	2022		2021
(continued)
Cash flows from investing activities:
Securities purchased under agreement to resell	(19,621)		191
Purchases of other investments	(7,662)		(29,117)
Purchase of business	—		2,109
Cash at deconsolidated entity	—		(5,620)
Proceeds from sales of other investments	9,780		31,267
Purchase of fixed assets and intangibles	(2,914)		(1,643)
Net cash provided by / (used in) investing activities	(20,417)		(2,813)
Cash flows from financing activities:
Deferred debt issuance cost	(112)		(6,467)
Borrowings on notes and other debt	4,019		301,490
Repayments on notes and other debt	(2,193)		(139,737)
Purchase of treasury stock	(24,140)		(20,629)
Cash dividends paid	(3,917)		(2,313)
Preferred stock dividends paid	(1,698)		(1,698)
Contingent liability payment	(8,195)		(8,496)
Capital contributions by non-controlling interests in operating entities	1,610		3,498
Capital distributions to non-controlling interests in operating entities	(5,901)		(2,348)
Consolidated Funds
Capital contributions by non-controlling interests in Consolidated Funds	—		19,017
Capital distributions to non-controlling interests in Consolidated Funds	—		(16,424)
Net cash provided by / (used in) financing activities	(40,527)		125,893
Change in cash and cash equivalents	(370,086)		486,241
Cash and cash equivalents, including cash collateral pledged and segregated cash, beginning of period	1,156,834		941,470
Cash and equivalents at end of period:
Cash and cash equivalents	512,978		1,147,531
Cash collateral pledged	52,865		110,303
Segregated cash	220,882		168,942
Cash and cash equivalents, Consolidated Funds	23		935
Cash and cash equivalents, including cash collateral pledged and segregated cash, end of period	$	786,748	$	1,427,711
Supplemental information
Cash paid during the year for interest	$	40,538	$	65,259
Cash paid during the year for taxes	$	12,980	$	8,087
Supplemental non-cash information
Purchase of treasury stock, at cost, through net settlement (See Note 14)	$	12,283	$	6,245
Preferred stock dividends declared (See Note 14)	1,698		1,698
Cash dividends declared (See Note 14)	4,111		2,777
Net assets (liabilities) acquired upon acquisition (net of cash)	—		3,107
Net decrease in non-controlling interests in Consolidated Fund due to deconsolidation of Consolidated Fund (See Note 2)	—		74,813
Common stock issuance in relation to acquisitions	1,881		2,202

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

11

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Index

Notes to Unaudited Condensed Consolidated Financial Statements		Page
	Note 1—Organization and Business	13
	Note 2—Significant Accounting Policies	13
	Note 3—Acquisition	24
	Note 4—Cash Collateral Pledged	25
	Note 5—Segregated Cash	26
	Note 6—Investments of Operating Entities and Consolidated Funds	26
	Note 7—Fair Value Measurements for Operating Entities and Consolidated Funds	33
	Note 8—Deposits with Clearing Organizations, Brokers and Banks	39
	Note 9—Receivable From and Payable to Brokers, Dealers and Clearing Organizations	39
	Note 10—Receivable From and Payable to Customers	39
	Note 11—Commission Management Payable	39
	Note 12—Convertible Debt and Notes Payable	40
	Note 13—Redeemable Preferred Stock	43
	Note 14—Stockholder's Equity	44
	Note 15—Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds	46
	Note 16—Accumulated Other Comprehensive Income (Loss)	46
	Note 17—Revenue from Contracts with Customers	47
	Note 18—Insurance and Reinsurance	47
	Note 19—Share-Based Payments, Deferred Compensation and Employee Ownership Plans	48
	Note 20—Income Taxes	50
	Note 21—Earnings Per Share	50
	Note 22—Commitments and Contingencies	51
	Note 23—Segment Reporting	54
	Note 24—Regulatory Requirements	55
	Note 25—Related Party Transactions	57
	Note 26—Guarantees and Off-Balance Sheet Arrangements	58
	Note 27—Subsequent Events	59

12

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

1. Organization and Business

Cowen Inc., a Delaware corporation formed in 2009, is a diversified financial services firm that, together with its consolidated subsidiaries (collectively, "Cowen" or the "Company"), provides investment banking, research, sales and trading, prime brokerage, global clearing, securities financing, commission management services and investment management through its two business segments: the Operating Company ("Op Co") and the Asset Company ("Asset Co").

The Op Co segment consists of four divisions: the Investment Banking division, the Markets division, the Research division and the Cowen Investment Management ("CIM") division. The Company refers to the Investment Banking division, the Markets division and the Research division combined as its investment banking businesses. Op Co's investment banking businesses offer advisory and global capital markets origination, domain knowledge-driven research, sales and trading platforms for institutional investors, global clearing, commission management services and also a comprehensive suite of prime brokerage service. Sectors covered by Op Co's investment banking business include healthcare, technology, media and telecommunications, consumer, industrials, tech-enabled and business services, and energy. Op Co’s CIM division includes advisers to investment funds (including private equity structures and privately placed hedge funds) and registered funds. The Company has also invested capital in its insurance and reinsurance businesses.

The Asset Co segment consists of certain of the Company's private investments, private real estate investments and other legacy investment strategies. The focus of Asset Co is to drive future monetization of the invested capital of the segment.

2. Significant Accounting Policies

a.    Basis of presentation

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") as promulgated by the Financial Accounting Standards Board ("FASB") through the Accounting Standards Codification (the "Accounting Standards" or "ASC") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying condensed consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to specialized industry accounting.

The accompanying condensed financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Certain footnote disclosures included in the 2021 Form 10-K have been condensed or omitted from the accompanying condensed financial statements as they are not required for interim reporting under US GAAP or are insignificant to the interim reporting period.

b.    Principles of consolidation

The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a Voting Operating Entity ("VOE") or a Variable Interest Entity ("VIE") under US GAAP.

Voting Operating Entities—VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns.

Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units.

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Variable Interest Entities—VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it.

The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE.

The VIEs the Company has invested in act as investment managers and/or investment companies that may be managed by the Company. The VIEs are financed through their operations and/or loan agreements with the Company.

In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company consolidates these investment funds when its variable interest is potentially significant to the entity. (see Note 6 for additional disclosures on VIEs).

Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. As of March 31, 2022 and December 31, 2021, the total assets of the consolidated VIEs were $332.4 million and $304.1 million, respectively, and total liabilities of the consolidated VIEs were $6.6 million and $9.8 million, respectively.

The Company consolidates investment funds for which it acts as the managing member/general partner and investment manager. At March 31, 2022, the Company consolidated Ramius Enterprise LP (“Enterprise LP”), an investment fund. At December 31, 2021, the Company consolidated the following investment funds: Enterprise LP and Cowen Private Investments LP ("Cowen Private").

During the first quarter of 2022, the Company deconsolidated Cowen Private as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP ("CSI I LP") due to the Company's ownership being diluted through a capital equalization event.

Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary.

Other—If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for its investment in such entity (primarily consisting of securities of such entity which are purchased and held principally for the purpose of selling them in the near term and classified as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within Investment income (loss) - Securities principal transactions, net or Investment income (loss) - portfolio fund investment income (loss) in the accompanying condensed consolidated statements of operations.

Retention of Specialized Accounting— The Consolidated Funds and certain other consolidated companies are investment companies and apply specialized industry accounting. The Company reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations. Accordingly, the accompanying condensed consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

Certain portfolio fund investments qualify as equity method investments and are investment companies that apply specialized industry accounting. In applying equity method accounting guidance, the Company retains the specialized accounting of the investees and reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Investment Income - portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

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In addition, the Company's broker-dealer subsidiaries, Cowen and Company, LLC ("Cowen and Company"), Westminster Research Associates LLC ("Westminster"), Cowen Execution Services Limited ("Cowen Execution Ltd"), ATM Execution LLC ("ATM Execution"), Cowen and Company (Asia) Limited ("Cowen Asia"), and Cowen International Limited ("Cowen International Ltd"), apply the specialized industry accounting for brokers and dealers in securities, which the Company retains upon consolidation.

c.    Use of estimates

The preparation of the accompanying condensed consolidated financial statements in conformity with US GAAP requires the management of the Company to make estimates and assumptions that affect the fair value of securities and other investments, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the accompanying condensed consolidated financial statements, as well as the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

d.    Allowance for credit losses

ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”) prescribed the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update guidance, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer).

The Company applies the guidance in ASC 326 to securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, underwriting fees, strategic/financial advisory fees and placement and sales agent fees, management fees and incentive fees receivable).

The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company’s expectation of the collectability in determining the allowance for credit losses. The Company’s expectation is that the credit risk associated with fees and other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards.

For securities borrowed, the Company applies a practical expedient to measure the allowance for credit losses based on the fair value of the collateral. If the fair value of the collateral held exceeds the amortized cost of the borrowing and the borrower is expected to continue to replenish the collateral as needed, the Company will not recognize an allowance. If the fair value of collateral is less than amortized cost and the borrower is expected to continue to replenish the collateral as needed, the Company applies the CECL model, utilizing a probability and loss given default methodology, only to the extent of the shortfall between the fair value of the collateral and amortized cost.

The credit loss expense related to the allowance for credit losses as well as any recoveries of amounts previously charged is reflected in other expenses in the accompanying condensed consolidated statements of operations.

e.    Valuation of investments and derivative contracts and other investments

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics,

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is based on their proportional rights of the underlying portfolio company, and is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation impact the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the condensed consolidated financial statements. Certain of the Company's investments are relatively illiquid or thinly traded and may not be immediately liquidated on demand if needed. Fair values assigned to these investments may differ significantly from the fair values that would have been used had a ready market for the investments existed and such differences could be material.

The Company primarily uses the market approach to value its financial instruments measured at fair value. In determining an instrument's level within the hierarchy, the Company categorizes the Company's financial instruments into three categories: securities, derivative contracts and other investments. To the extent applicable, each of these categories can further be divided between those held long or sold short.

The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The election is made on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument.  The Company has elected the fair value option for certain of its investments held by its operating companies.  This option has been elected because the Company believes that it is consistent with the manner in which the business is managed, as well as the way that financial instruments in other parts of the business are recorded. 

Securities—Securities with values based on quoted market prices in active markets for identical assets are classified within level 1 of the fair value hierarchy. These securities primarily include active listed equities, certain U.S. government and sovereign obligations, Exchange Traded Funds ("ETFs"), mutual funds and certain money market securities.

Certain positions for which trading activity may not be readily visible, consisting primarily of convertible debt, corporate debt and loans and restricted equities, are stated at fair value and classified within level 2 of the fair value hierarchy. The estimated fair values assigned by management are determined in good faith and are based on available information considering trading activity, broker quotes, quotations provided by published pricing services, counterparties and other market participants, and pricing models using quoted inputs, and do not necessarily represent the amounts which might ultimately be realized. As level 2 investments include positions that are not always traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability.

Derivative Contracts—Derivative contracts can be exchange-traded or privately negotiated over-the-counter (“OTC”). Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within level 1 or level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. OTC derivatives, such as generic forwards, swaps and options, are classified as level 2 when their inputs can be corroborated by market data. OTC derivatives, such as swaps and options, with significant inputs that cannot be corroborated by readily available or observable market data are classified as level 3.

Other Investments—Other investments consist primarily of portfolio funds, carried interest and equity method investments, which are valued as follows:

i.    Portfolio Funds—Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy.

ii. Carried Interest—For the private equity and debt fund products the Company offers, the Company is allocated incentive income by the investment funds based on the extent by which the investment funds performance exceeds predetermined thresholds. Carried interest allocations are generally structured from a legal standpoint as an allocation of capital in the Company’s capital account. The Company accounts for carried interest allocations by applying an equity ownership model. Accordingly, the Company accrues performance allocations quarterly based on the fair value of the underlying investments assuming hypothetical liquidation at book value.

iii. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company applies the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

See Notes 6 and 7 for further information regarding the Company's investments, including equity method investments and fair value measurements.

f.    Offsetting of derivative contracts

To reduce credit exposures on derivatives, the Company may enter into master netting agreements with counterparties that permit the Company the right, in the event of a default by a counterparty, to offset the counterparty’s rights and obligations under the agreement and to liquidate and offset any collateral against any net amount owed by the counterparty. Derivatives are reported on a net-by-counterparty basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) in the condensed consolidated statements of financial condition when a legal right of offset exists under an enforceable netting agreement. Additionally, derivatives are reported net of cash collateral received and posted under enforceable credit support agreements in the condensed consolidated statements of financial position, provided a legal right of offset exists. See Note 6 for further information about offsetting of derivative financial instruments.

g.    Receivable from and payable to brokers

Receivable from brokers, dealers, and clearing organizations includes amounts receivable for securities failed to deliver by the Company to a purchaser by the settlement date, amounts receivable from broker-dealers and clearing organizations, commissions receivable from broker-dealers, and interest receivable from securities financing arrangements and are reported net of an allowance for credit losses.

Payable to brokers, dealers and clearing organizations includes amounts payable for securities failed to receive by the Company from a seller by the settlement date, amounts payable to broker-dealers and clearing organizations for unsettled trades, interest payable for securities financing arrangements, and payables of deposits held in proprietary accounts of brokers and dealers.

Receivables and payables with brokers, dealers and clearing organizations arising from unsettled regular-way transactions are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held with multiple financial institutions.

h.    Receivable from and payable to customers

Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settlement-date basis and prepaid research, net of allowance for credit losses. For prepaid research, a prepaid research asset is established for research and related services disbursed in advance of anticipated client commission volumes.

Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settlement-date basis on the statement of financial condition, and other miscellaneous customer payables.

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Securities owned by customers, including those that collateralize margin, are not reflected as assets of the Company on the statement of financial condition. The Company holds these securities with the intention of settlement against customer orders and are held as collateral for customer receivables.

i.    Fees receivable

Fees receivable primarily relate to securities transactions and are reported net of an allowance for credit losses.  Fees receivable also include amounts due to the Company for underwriting fees, strategic/financial advisory fees and placement and sales agent fees. Additionally, management and incentive fees due to the Company are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 2o for further reference).

j.    Securities financing arrangements

Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received on a gross basis. The related rebates are recorded in the accompanying condensed consolidated statements of operations as interest and dividends income and interest and dividends expense. Securities borrowed transactions require the Company to deposit cash collateral with the lender. With respect to securities loaned, the Company receives cash or securities as collateral from the borrower. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced or received approximates or is greater than the market value of securities borrowed or loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or returned, as necessary. Securities borrowed and loaned may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. See Note 2d for further information.

Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying condensed consolidated statements of operations. Accrued interest income and expense are recorded in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations, respectively, on an accrual basis in the accompanying condensed consolidated statements of financial condition.

k.     Securities sold under agreements to repurchase

Securities purchased under agreement to resell and securities sold under agreements to repurchase ("repurchase agreements") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. A repo is a transaction in which a firm buys or sells financial instruments from/to a counterparty, typically in exchange for cash, and simultaneously enters into an agreement to resell or repurchase the same or substantially the same financial instruments to/from such counterparty at a stated price plus accrued interest at a future date. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced approximates or is greater than the market value of securities purchased or sold in the transaction. The Company typically enters into repurchase transactions with counterparties that prefer repurchase transactions to securities borrowed and securities loaned transactions. The Company has executed master repurchase agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repurchase for matched book purposes. The Company monitors the market value of repurchases on a daily basis, with additional collateral obtained or returned, as necessary. Repurchases may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company mitigates its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional collateral or returning excess collateral in accordance with the netting provisions available in the master repurchase contracts in place with the counterparties.

Interest paid is recorded in interest and dividends expense in accordance with US GAAP on repurchase agreement transactions on an accrual basis in the accompanying condensed consolidated statements of operations.

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

l.    Goodwill and intangible assets

Goodwill

Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit.

In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying condensed consolidated statements of operations if the sum of the estimated undiscounted cash flows from the use or disposition of the asset or asset group is less than the corresponding carrying value. The Company continually monitors the estimated average useful lives of existing intangible assets.

m.    Temporary Equity

Temporary equity consists of Redeemable 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock"). The Company has irrevocably elected to cash settle $1,000.00 of each conversion of any share of the Series A Convertible Preferred Stock. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company has classified the Series A Convertible Preferred Stock preferred stock in temporary equity.

n.    Non-controlling interests in consolidated subsidiaries

Non-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities. When non-controlling interest holders do not have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as a component of permanent equity. Ownership which has been classified in permanent equity are non-controlling interests for which the holder does not have the unilateral right to redeem its ownership interests.

o.    Revenue recognition

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company follows a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, the Company includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgments are required in the application of the five-step model including: when determining whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events.

The Company's principal sources of revenue are generated within two segments. The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, investment income (loss) and incentive income. Investment income is excluded from ASC Topic 606. The Asset Co segment generates revenue through investment income (loss), management fees and incentive income. Revenue from contracts with customers includes management fees, incentive income, investment banking revenue and brokerage services revenue excluding principal transactions. ASC Topic 606 does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The following is a description of principal activities, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 23.

Investment banking

The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from public and private small- and mid-capitalization companies within the Company's sectors.     

Investment banking revenue consists of underwriting fees, strategic/financial advisory fees, expenses reimbursed from clients and placement and sales agent fees.    

•Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible securities offerings. Fee revenue relating to underwriting commitments is recorded at the point in time when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; (iii) the Company has been informed of the number of securities that it has been allotted; and (iv) the issuer obtains control and benefits of the offering; which generally occurs on trade date.

Underwriting fees are recognized gross of transaction-related expenses, and such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction.

•Strategic/financial advisory fees. The Company's strategic advisory revenue includes success fees earned in connection with advising companies, principally in mergers, acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. A significant portion of the Company's advisory revenue (i.e., success-related advisory fees) is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is constrained until satisfaction of the performance obligation. The Company records strategic advisory revenues at the point in time, gross of related expenses, when the services for the transactions are completed or the contract is canceled under the terms of each assignment or engagement.

•Placement and sales agent fees. The Company earns placement agency fees and sales agent commissions in non-underwritten transactions, such as private placements of loans and debt and equity securities, including private investment in public equity transactions ("PIPEs"), and as sales agent in at-the-market offerings of equity securities. The Company records placement revenues (which may be in cash and/or securities) at the point in time when the services for the transactions are completed under the terms of each assignment or engagement. The Company records sales agent commissions on a trade-date basis.

•Expense reimbursements from clients.  Investment banking revenue includes expense reimbursements for transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction.  Expense reimbursements associated with investment banking engagements are recognized in revenue at the point in time when the Company is contractually entitled to reimbursement. The related expenses are presented gross within their respective expense category in the accompanying condensed consolidated statements of operations.

Brokerage

Brokerage revenue consists of commissions, principal transactions, equity research fees and trade conversion revenue.

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Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

•Commissions. Commission revenue includes fees from executing and clearing client transactions and commission sharing arrangements. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services on a standalone basis, are recognized at a point in time on trade-date. Commission revenues are generally paid on settlement date and the Company records a receivable between trade-date and payment on settlement date. The Company permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as "soft dollar arrangements". The Company also offers institutional clients the ability to allocate a portion of their gross commissions incurred on trades executed with various brokers to pay for research products and other services provided by third parties by entering into commission sharing arrangements. The Company acts as an agent in the soft dollar and commission sharing arrangements as the customer controls the use of the soft dollars and directs payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues and recorded on trade date. Commissions on soft dollar brokerage are recorded net of the related expenditures. The costs of commission sharing arrangements are recorded for each eligible trade and shown net of commission revenue.

•Equity research fees. Equity research fees are paid to the Company for providing access to equity research. In the US, revenue is recognized once an arrangement exists, access to research has been provided and the customer has benefited from the research. As part of MiFID II, the international customers of the Company's broker-dealers have executed equity research contracts with its clients. The contracts either contain a fixed price for providing access to research or a price at the discretion of the customer with a contract minimum. Fixed equity research fees are recognized over the contract period as the customer is benefiting from the research throughout the contract term. When the equity research fees are based on the customer’s discretion with a contract minimum, the Company recognizes the contract minimum over the life of the contract as the customer benefits from the research provided and adjusts the revenue when the Company can estimate the amount of equity research fees over the contract minimum. Additionally, the Company earns variable consideration for attending client conferences and events. Revenue is recognized when the Company attends a client conference or event.

•Trade conversion revenue. Trade conversion revenue includes fees earned from converting foreign securities into an American Depository Receipt ("ADR") and fees earned from converting an ADR into foreign securities on behalf of customers, and margins earned from facilitating customer foreign exchange transactions. Trade conversion revenue is recognized on a trade-date basis.

Investment Income

Investment income (loss) consists of securities principal transactions, net, portfolio fund principal transactions, net and carried interest allocations. Investment income is excluded from ASC Topic 606.

• Securities principal transactions, net. Principal transactions, net includes realized gains and losses from transactions in financial instruments and unrealized gains and losses from ongoing changes in the fair value of the Company’s positions.

Principal transactions, net generated by the Company's broker-dealers include net trading gains and losses from the Company's market-making activities in over-the-counter equity and fixed income securities, trading of convertible securities, and trading gains and losses on inventory and other Company positions, which include securities previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a short duration.

With respects to the Company's proprietary trading strategies, purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Investment income - Securities principal transactions, net, in the accompanying condensed consolidated statements of operations.

•Portfolio Fund principal transactions, net. Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding certain investments that calculates NAV per share or its equivalent for which the fair value is not readily determinable and is considered an investment company under ASC 946 to measure the

21

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Investment income – portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

•Carried interest allocations. The Company is allocated carried interest based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's private equity investment funds. For the private equity fund products the Company offers, the carried interest earned is typically up to 30% of the distributions made to investors after return of their contributed capital and generally a preferred return. The Company recognizes carried interest allocated to the Company under an equity ownership model as investment income - carried interest allocations in the accompanying condensed consolidated statements of operations accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures. Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within Investment Income - Carried interest allocations in the accompanying condensed consolidated statements of operations along with the allocations proportionate to the Company's ownership interests in the investment funds. Generally, carried interest is recognized after the investor has received a full return of its invested capital, plus a preferred return. However, for certain private equity structures, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These private equity structures are generally subject to a potential clawback of these incentive fees upon the liquidation of the private equity structure if the investor has not received a full return of its invested capital plus the preferred return thereon.

Management fees

The Company earns management fees from investment funds and certain managed accounts for which it serves as the investment manager; such fees earned are typically based on committed and invested capital. The Company has determined that the primary drivers of management fees are committed and invested capital relating to private equity funds. The management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company.

Management fees are generally paid on a quarterly basis and are prorated for capital inflows (or commitments) and redemptions (or distributions) and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. While some investors may have separately negotiated fees, in general the management fees are as follows:

•Private equity funds. Management fees for the Company's private equity funds are generally charged at an annual rate of 1% to 2% of committed capital during the investment period (as defined in the relevant partnership agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 1% to 2% of the net asset value or the aggregate cost basis of the unrealized investments held by the private equity funds.  For certain other private equity funds (and managed accounts), the management fees range from 0.2% to 1% and there is no adjustment based on the investment period.  Management fees for the Company's private equity funds are generally paid on a quarterly basis.

•Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of net asset value. Management fees are generally calculated monthly at the end of each month.

Incentive income

The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's investment funds and managed accounts.  The incentive income is charged to the investment funds in accordance with their corresponding investment management or partnership agreement. For the hedge funds the Company offers, incentive income earned is typically up to 20% (in certain cases on performance in excess of a benchmark) of the net profits earned for the full year that are attributable to each fee-paying investor. 

The Company recognizes incentive income charged to the Company's hedge funds based on the net profits of the hedge funds. The Company recognizes such incentive income when the fees are no longer subject to reversal or are crystallized. For certain  hedge funds, the incentive fee crystallizes annually when the high-water mark for such hedge funds is reset, which delays recognition of the incentive fee until year end. In periods following a period of a net loss attributable to an investor, the Company generally does not earn incentive income on any future profits attributable to such investor until the accumulated net loss from prior periods is recovered, an arrangement commonly referred to as a "high-water mark." Generally, incentive income is earned after the investor has received a full return of its invested capital, plus a preferred return.

22

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Consolidated Funds – principal transaction, net

Purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations.

Certain of the Companies Consolidated Funds invest in other investment funds for which the Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Consolidated Funds – Principal transaction, net.

Interest and dividends

Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from securities finance activities and securities held by the Company for purposes of investing capital, investments held by its Consolidated Funds and its brokerage balances. Interest is recognized in accordance with US GAAP and market convention for the imputation of interest of the host financial instrument. Interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date.

Insurance and reinsurance

Premiums for insurance and reinsurance contracts are earned over the coverage period. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly basis. For each of its contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with US GAAP. If the Company determines that a contract does not expose it to a reasonable possibility of a significant loss from insurance risk, the Company records the contract under the deposit method of accounting with any net amount receivable reflected as an asset in other assets, and any net amount payable reflected as a liability within accounts payable, accrued expenses and other liabilities on the condensed consolidated statements of financial condition.

The liabilities for losses and loss adjustment expenses are recorded at the estimated ultimate payment amounts, including reported losses.  Estimated ultimate payment amounts are based upon (1) reports of losses from policyholders, (2) individual case estimates and (3) estimates of incurred but unreported losses.

Provisions for losses and loss adjustment expenses are charged to earnings after deducting amounts recovered and estimates of recoverable amounts and are included in other expenses on the condensed consolidated statements of operations.

Costs of acquiring new policies, which vary with and are directly related to the production of new policies, have been deferred to the extent that such costs are deemed recoverable from future premiums or gross profits. Such costs include commissions and allowances as well as certain costs of policy issuance and underwriting and are included within other assets in the condensed consolidated statements of financial condition.

All of the items above are reported net of any Outward Reinsurance (see Note 18), which is determined as the portion of the Company’s premiums, liabilities for losses and loss adjustment expenses, provisions for losses and loss adjustment expenses, and costs of acquiring new policies that are ceded to providers of such Outward Reinsurance pursuant to their terms and conditions. These ceded amounts are calculated based on the same principles outlined above.

Interest and dividends expense

Interest and dividends expense relates primarily to securities finance activities, trading activity with respect to the Company's investments and interest expense on debt.

p.    Income taxes

The Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely

23

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

than not to be realized. The Company evaluates its deferred tax assets for recoverability considering negative and positive evidence, including its historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. The Company records a valuation allowance against its deferred tax assets to bring them to a level that it is more likely than not to be utilized.

US GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements, requiring the Company to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company recognizes accrued interest and penalties related to its uncertain tax positions as a component of income tax expense.

In accordance with federal and state tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand-alone state and local tax returns. The Company also has subsidiaries that are residents in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These subsidiaries are subject to taxes in their respective countries and the Company is responsible for and therefore reports all taxes incurred by these subsidiaries in the condensed consolidated statements of operations. The foreign jurisdictions where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Malta, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong.

q.    Recent pronouncements

In August 2020, the FASB issued guidance simplifying an issuer’s accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features; separate accounting is still required in certain cases. The guidance also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The guidance requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of a public business entity’s convertible debt at the instrument level. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2021 and interim periods within those fiscal years with early adoption permitted. The Company adopted the guidance as of January 1, 2022 under the modified retrospective method. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. See Note 21 for the calculation of diluted earnings per share.

In August 2018, the FASB issued guidance prescribing targeted improvements to financial services – insurance industry accounting guidance for long-duration contracts. The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred acquisition costs for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. For all entities, the guidance is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance.

3. Acquisition

Malta

On February 26, 2021 (the "Malta Acquisition Date"), the Company, through its indirect wholly owned subsidiary, Cowen Malta Holdings Ltd. (“Malta Holdings”), completed the acquisition of all of the outstanding equity interest of Axeria Insurance Limited (the “Malta Acquisition”), an insurance company organized under the laws of Malta whose principal business activity is to provide insurance coverage to third parties (see Note 18). Axeria Insurance Limited was renamed Cowen Insurance Company Ltd (“Cowen Insurance Co”) upon acquisition. The Malta Acquisition was completed for a combination of cash and deferred consideration. In the aggregate, the purchase price, assets acquired, and liabilities assumed were not significant and near-term impact to the Company and its consolidated results of operations and cash flows is not expected to be significant.

24

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The aggregate estimated purchase price of the Malta Acquisition was $12.7 million. On the Malta Acquisition Date, the Company paid upfront consideration of $12.5 million, with additional deferred consideration of $0.2 million which was paid during the second quarter of 2021.

The Malta Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, the results of operations of the business acquired is included in the accompanying condensed consolidated statements of operations since the date of the Malta Acquisition and the assets acquired, liabilities assumed recorded at their fair values within their respective line items on the accompanying condensed consolidated statement of financial condition. The Company has recognized a bargain purchase gain of $5.2 million related to the Malta Acquisition and is shown net of associated tax of $1.3 million in the condensed consolidated statement of operations. The bargain purchase gain is primarily driven by the recognition of the customer relationships intangible asset and a contractual discount on the closing equity balance at the Malta Acquisition Date. Additionally, following the Malta Acquisition, the business acquired is included in the Cowen Investment Management reporting unit within the Operating Company segment.

The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of February 26, 2021:

	(dollars in thousands)
Cash	$	14,844
Securities owned, at fair value	1,571
Fixed assets	30
Intangible assets	4,794
Other assets	12,828
Compensation payable	(17)
Other liabilities	(16,099)
Total net identifiable assets acquired and liabilities assumed	17,951
Bargain purchase gain	(5,216)
Total estimated purchase price	$	12,735

As of the Malta Acquisition Date, the estimated fair value of the Company's intangible assets, which are primarily broker relationships, was $4.6 million and had a weighted average useful life of 10 years. The licenses of $0.2 million has indefinite life. Amortization expense for the three months ended March 31, 2022 was $0.1 million and for the three months ended March 31, 2021 was insignificant.

As of March 31, 2022, the estimated amortization expense related to these intangible assets in future periods is as follows:

	(dollars in thousands)
2022	343
2023	458
2024	458
2025	458
2026	458
Thereafter	2,124
	$	4,299

In addition to the purchase price consideration, for the three months ended March 31, 2021, the Company had incurred acquisition-related expenses of $0.2 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying condensed consolidated statements of operations.

4. Cash Collateral Pledged    

As of March 31, 2022 and December 31, 2021, the Company pledged cash collateral in the amount of $3.4 million and $3.4 million respectively, which relates to letters of credit issued to the landlords of the Company's premises in New York City, Boston and San Francisco. The Company also has pledged cash collateral for reinsurance agreements which amounted to $49.5 million, as of March 31, 2022, and $44.1 million, as of December 31, 2021, which are expected to be released periodically as per the terms of the reinsurance policy between March 31, 2022 and March 31, 2024 (see Notes 12 and 18).

As of March 31, 2022, the Company has the following irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit.

25

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Location	Amount		Maturity
	(dollars in thousands)
New York	$	209	April 2023
New York	$	1,325	October 2022
New York	$	1,226	August 2022
Boston	$	188	March 2023
San Francisco	$	454	October 2025
	$	3,402

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of March 31, 2022 and December 31, 2021 there were no amounts due related to these letters of credit.

5. Segregated Cash

As of March 31, 2022 and December 31, 2021, cash segregated under federal regulations and other restricted deposits of $220.9 million and $194.7 million, respectively, consisted of cash deposited in Special Reserve Bank Accounts for the exclusive benefit of customers under SEC Rule 15c3-3 and cash deposited in Special Reserve Bank Accounts for the exclusive benefit of Proprietary Accounts of Broker-Dealers ("PAB") under SEC Rule 15c3-3 (see Note 24).

6. Investments of Operating Entities and Consolidated Funds

a.    Operating entities

Securities owned, at fair value

Securities owned, at fair value are held by the Company and are considered held for trading. Substantially all equity securities, which are not part of the Company's self-clearing securities finance activities, are pledged to external clearing brokers under terms which permit the external clearing broker to sell or re-pledge the securities to others subject to certain limitations.

As of March 31, 2022 and December 31, 2021, securities owned, at fair value consisted of the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Common stock	$	2,348,243	$	2,428,820
Preferred stock	190,184		134,930
Warrants and rights	53,082		46,459
Government bonds	11,992		16,002
Corporate bonds	146,998		21,468
Convertible bonds	5,250		5,250
Term loan	2,375		3,907
Trade claims (*)	4,840		3,496
Private investments	550		410
	$	2,763,514	$	2,660,742

(*)The Company has elected the fair value option for securities owned, at fair value with a fair value of $4.8 million and $3.5 million of trade claims respectively, at March 31, 2022 and December 31, 2021.

Receivable on and Payable for derivative contracts, at fair value

The Company predominantly enters into derivative transactions to satisfy client needs and to manage its own exposure to market and credit risks resulting from its trading activities. The Company’s direct exposure to derivative financial instruments includes futures, currency forwards, equity swaps, interest rate swaps and options. The Company's derivatives trading activities

26

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

expose the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets.

The Company's long and short exposure to derivatives is as follows:

Receivable on derivative contracts	As of March 31, 2022				As of December 31, 2021
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Currency forwards	$	11,482	$	109	$	10,727	$	80
Equity swaps	$	2,077,076	388,875		$	1,950,181	305,370
Options (a)	120,847		49,801		217,393		61,219
Interest rate swap (c)	$	427,000	19,839		$	285,000	1,208
Netting - swaps (b)			(115,912)				(81,742)
			$	342,712			$	286,135

Payable for derivative contracts	As of March 31, 2022				As of December 31, 2021
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	2,567	$	53	$	9,378	$	266
Currency forwards	$	138,530	1,084		$	149,575	1,346
Equity swaps	$	825,229	152,265		$	988,329	114,689
Options (a)	117,871		25,214		182,440		36,192
Netting - swap (b)			(131,802)				(92,330)
			$	46,814			$	60,163

(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.

(b) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

(c) Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 12

The following tables present the gross and net derivative positions and the related offsetting amount, as of March 31, 2022 and December 31, 2021. This table does not include the impact of over-collateralization.

			Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Gross amounts not offset in the Condensed Consolidated Statements of Financial Condition
	Gross amounts recognized						Financial instruments (a)		Cash Collateral pledged (a)		Net amounts
	(dollars in thousands)
As of March 31, 2022
Receivable on derivative contracts, at fair value	$	458,624	$	115,912	$	342,712	$	1,431	$	256,061	$	85,220
Payable for derivative contracts, at fair value	178,616		131,802		46,814		2,840		—		43,974
As of December 31, 2021
Receivable on derivative contracts, at fair value	$	367,877	$	81,742	$	286,135	$	1,421	$	211,442	$	73,272
Payable for derivative contracts, at fair value	152,493		92,330		60,163		2,839		—		57,324

(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

The realized and unrealized gains/(losses) related to derivatives trading activities were $(37.8) million and $35.5 million for the three months ended March 31, 2022 and 2021, respectively, and are included in Investment income- Securities principal

27

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

transactions, net in the accompanying condensed consolidated statements of operations. The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising the Company's business activities and are calculated before consideration of economic hedging transactions, which generally offset the net gains (losses) included above.

Pursuant to the various derivatives transactions discussed above, except for exchange traded derivatives and certain options, the Company is required to post/receive collateral. These amounts are recognized in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations respectively. As of March 31, 2022 and December 31, 2021, all derivative contracts were with major financial institutions.

Other investments

As of March 31, 2022 and December 31, 2021, other investments included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Portfolio funds, at fair value (1)	$	131,766	$	137,986
Carried interest (2)	70,281		88,925
Equity method investments (3)	35,581		47,200
	$	237,628	$	274,111

(1) Portfolio funds, at fair value

The portfolio funds, at fair value as of March 31, 2022 and December 31, 2021, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
HealthCare Royalty Partners LP (a)(*)	$	791	$	832
HealthCare Royalty Partners II LP (a)(*)	1,241		1,259
Eclipse Ventures Fund I, L.P. (b)	6,348		5,829
Eclipse Ventures Fund II, L.P. (b)	2,359		2,354
Eclipse Continuity Fund I, L.P. (b)	1,827		1,641
Starboard Value and Opportunity Fund LP (c)(*)	48,246		49,252
Starboard Value and Opportunity Fund Ltd (c) (*)	2,675		2,732
Lagunita Biosciences, LLC (d)	5,227		5,671
Starboard Leaders Fund LP (e)(*)	2,826		2,823
Formation8 Partners Fund I, L.P. (f)	19,949		20,992
BDC Fund I Coinvest 1, L.P. (g)	1,250		1,250
Difesa Partners, LP (h)	971		1,017
Cowen Sustainable Investments I LP (i)(*)	12,879		13,102
Cowen Healthcare Investments II LP (i) (*)	9,524		13,055
Cowen Healthcare Investments III LP (i)(*)	6,847		8,426
Cowen Healthcare Investments IV LP (i)(*)	1,987		1,071
Eclipse SPV I, LP (j)(*)	1,445		1,445
TriArtisan ES Partners LLC (k)(*)	1,805		1,805
TriArtisan PFC Partners LLC (l)(*)	1,177		1,112
Ramius Merger Fund LLC (m)(*)	1,760		1,692
Other private investment (n)(*)	294		303
Other affiliated funds (o)(*)	338		323
	$	131,766	$	137,986

* These portfolio funds are affiliates of the Company.

The Company has no unfunded commitments regarding the portfolio funds held by the Company except as noted in Note 22.

(a)HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(b)Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated.

(c)Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice.

(d)Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

(e)Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution.

(f)Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.

(g)BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated.

(h)Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.

(i)Cowen Sustainable Investments I LP, Cowen Healthcare Investments II LP, Cowen Healthcare Investments III LP and Cowen Healthcare Investments IV LP are private equity funds.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights.

(j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects.  Distributions will be made when the underlying investments are liquidated.

(k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated.

(l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated.

(m)Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice.

(n)Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy.

(o)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.

(2)Carried interest

The Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model in other investments in the accompanying condensed consolidated statements of financial condition (see Note 2o). Carried interest allocated to the Company from certain portfolio funds represents Cowen's general partner capital accounts from those funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds. All carried interest balances are earned from affiliates of the Company.

A portion of the Company's carried interest is granted to employees through profit sharing awards designed to more closely align compensation with the overall realized performance of the Company. These arrangements enable certain employees to earn compensation based on performance revenue earned by the Company and are recorded within compensation payable in the accompanying condensed consolidated statements of financial condition and employee compensation and benefits expense in the accompanying condensed consolidated statements of operation based on the probable and estimable payments under the terms of the awards. 

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The carried interest as of March 31, 2022 and December 31, 2021, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Cowen Healthcare Investments II LP	$	13,886	$	23,327
Cowen Healthcare Investments III LP	11,510		18,523
Cowen Sustainable Investments I LP	6,725		7,436
Cowen Sustainable Investments Offshore I LP	8,114		9,196
CSI I Prodigy Co-Investment LP	2,241		2,436
CSI PRTA Co- Investment LP	8,682		9,535
TriArtisan TGIF Partners LLC	4,279		4,047
TriArtisan ES Partners LLC	3,389		3,401
TriArtisan PFC Partners LLC	10,408		9,394
Ramius Multi-Strategy Fund LP	555		587
Ramius Merger Fund LLC	368		861
RCG IO Renergys Sarl	124		136
Other affiliated funds	—		46
	$	70,281	$	88,925

(3) Equity method investments

Equity method investments include investments held by the Company in several operating companies. The operating agreement that governs the management of day-to-day operations and affairs of these entities stipulates that certain decisions require support and approval from other members in addition to the support and approval of the Company. As a result, all operating decisions made in these entities requires the support of both the Company and an affirmative vote of a majority of the other managing members who are not affiliates of the Company. As the Company does not possess control over any of these entities, the presumption of consolidation has been overcome pursuant to current Accounting Standards and the Company accounts for these investments under the equity method of accounting. Included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners (b) Starboard Value (and certain related parties) which serves as an operating company whose operations primarily include the day-to-day management (including portfolio management) of several activist investment funds and related managed accounts and (c) operating companies whose operations primarily include the day-to-day management of real estate entities. The Company recorded no impairment charges in relation to its equity method investments for the three months ended March 31, 2022 and 2021.

The Company elected to use the cumulative earnings approach for the distributions it receives from its equity method investments. Under the cumulative earnings approach, any distributions received up to the amount of cumulative earnings are treated as return on investment and classified in operating activities within the cash flows. Any excess distributions would be considered as return of investments and classified in investing activities.

The following table summarizes equity method investments held by the Company:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Starboard Value LP	$	25,741	$	36,889
HealthCare Royalty GP III, LLC	1,830		1,957
HealthCare Royalty GP, LLC	1,595		1,451
HealthCare Royalty GP II, LLC	210		213
HealthCare Royalty GP IV, LLC	1,618		1,716
RCG Longview Debt Fund IV Management, LLC	331		331
HCR Overflow Fund GP, LLC	774		839
HCRP MGS Account Management, LLC	114		598
HCR Stafford Fund GP, LLC	3,119		2,955
Other	249		251
	$	35,581	$	47,200

The Company's income from equity method investments was $5.6 million and $12.6 million and for the three months ended March 31, 2022 and 2021, respectively, and is included in net gains (losses) on other investments on the accompanying condensed consolidated statements of operations.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Securities sold, not yet purchased, at fair value

Securities sold, not yet purchased, at fair value represent obligations of the Company to deliver a specified security at a contracted price and, thereby, create a liability to purchase that security at prevailing prices. The Company's liability for securities to be delivered is measured at their fair value as of the date of the condensed consolidated financial statements. However, these transactions result in off-balance sheet risk, as the Company's ultimate cost to satisfy the delivery of securities sold, not yet purchased, at fair value may exceed the amount reflected in the accompanying condensed consolidated statements of financial condition. As of March 31, 2022 and December 31, 2021, securities sold, not yet purchased, at fair value consisted of the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Common stock	$	956,228	$	1,192,396
Corporate bonds	1,349		37
Preferred stock	17,278		9,009
Warrants and rights	12		6
	$	974,867	$	1,201,448

Securities purchased under agreements to resell/securities sold under agreements to repurchase and securities lending and borrowing transactions

The following tables present the contractual gross and net securities borrowing and lending agreements and securities sold under agreements to repurchase and the related offsetting amount as of March 31, 2022 and December 31, 2021.

							Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
	Gross amounts recognized, net of allowance		Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Additional Amounts Available		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of March 31, 2022
Securities borrowed	$	1,761,146	$	—	$	1,761,146	$	—	$	1,661,310	$	—	$	99,836
Securities loaned	1,735,852		—		1,735,852		—		1,706,171		—		29,681
Securities purchased under agreements to resell	19,621		—		19,621		—		21,035		—		(1,414)
Securities sold under agreements to repurchase	229,192		—		229,192		—		249,116		—		(19,924)
As of December 31, 2021
Securities borrowed	1,704,603		—		1,704,603		—		1,652,007		—		52,596
Securities loaned	1,586,572		—		1,586,572		—		1,592,140		—		(5,568)
Securities sold under agreements to repurchase	$	63,469	$	—	$	63,469	$	—	$	74,443	$	—	$	(10,974)

(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(b)Includes the amount of cash collateral held/posted.

The following tables present gross obligations for securities loaned and securities sold under agreements to repurchase by remaining contractual maturity and class of collateral pledged as of March 31, 2022 and December 31, 2021:

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

	Open and Overnight		Up to 30 days		31 - 90 days		Greater than 90 days		Total
	(dollars in thousands)
As of March 31, 2022
Securities loaned
Common stock	$	1,728,578	$	—	$	—	$	—	$	1,728,578
Corporate bonds	7,274		—		—		—		7,274
Securities purchased under agreements to resell
Corporate bonds	19,621		—		—		—		19,621
Securities sold under agreements to repurchase
Common stock	—		43,073		—		—		43,073
Corporate bonds	186,119		—		—		—		186,119
As of December 31, 2021
Securities loaned
Common stock	$	1,570,835	$	—	$	—	$	—	1,570,835
Corporate bonds	15,737		—		—		—		15,737
Securities sold under agreements to repurchase
Common stock	—		20,906		42,563		—		63,469

Variable Interest Entities

The total assets and liabilities of the variable interest entities for which the Company has concluded that it holds a variable interest, but for which it is not the primary beneficiary, are $9.1 billion and $692.4 million as of March 31, 2022 and $9.7 billion and $744.5 million as of December 31, 2021, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of March 31, 2022 was $155.1 million, and as of December 31, 2021 was $165.5 million, all of which is included in other investments, at fair value in the accompanying condensed consolidated statements of financial condition. Additionally, the Company's maximum exposure to loss for the variable interest entities noted above as of March 31, 2022 and December 31, 2021, was $224.7 million and $233.6 million, respectively.  The maximum exposure to loss often differs from the carrying value of exposure to loss of the variable interests. The maximum exposure to loss is dependent on the nature of the variable interests in the VIEs and is limited to the notional amounts of certain commitments and guarantees.

b.    Consolidated Funds

Other investments, at fair value

Investments in portfolio funds, at fair value

As of March 31, 2022 and December 31, 2021, investments in portfolio funds, at fair value, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Investments of Enterprise LP	$	97,182	$	99,067
	$	97,182	$	99,067

Consolidated portfolio fund investments of Enterprise LP    

On May 12, 2010, the Company announced its intention to close its master fund, Ramius Enterprise Master Fund Ltd ("Enterprise Master"). Enterprise LP operated under a "master-feeder" structure up until January 1, 2019, when Enterprise Master distributed its capital to each feeder and was liquidated. As of March 31, 2022 and December 31, 2021, the consolidated investments in portfolio funds include Enterprise LP's investment in RCG Special Opportunities Fund, Ltd which is a portfolio fund that invests in a limited number of private equity investments directly as well as through affiliated portfolio funds.

Indirect Concentration of the Underlying Investments Held by Consolidated Funds

From time to time, either directly held by the Company, indirectly through the Company's consolidated entities or indirectly through its investments in the Consolidated Funds, the Company may maintain exposure to a particular issue or issuer (both long and/or short) which may account for 5% or more of the Company's equity. Based on information that is available to the Company as of March 31, 2022 and December 31, 2021, the Company assessed whether or not its interests in an issuer for which the

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Company's pro-rata share exceeds 5% of the Company's equity. There was one indirect concentration that exceeded 5% of the Company's equity as of March 31, 2022 and December 31, 2021, respectively.

Through its investments in a Consolidated Fund and combined with direct Company investments, the Company maintained exposure to a particular investment which accounted for 5% or more of the Company's equity.

	Investment's percentage of the Company's stockholders' equity
	Issuer	Security Type	Country	Industry	Percentage of Stockholders' Equity		Market Value
							(dollars in thousands)
As of March 31, 2022	Linkem S.p.A.	Equity and warrants	Italy	Wireless Broadband	7.87	%	$	81,498
As of December 31, 2021	Linkem S.p.A.	Equity and warrants	Italy	Wireless Broadband	8.22	%	$	83,537

7. Fair Value Measurements for Operating Entities and Consolidated Funds

The following table presents the assets and liabilities that are measured at fair value on a recurring basis on the accompanying condensed consolidated statements of financial condition by caption and by level within the valuation hierarchy as of March 31, 2022 and December 31, 2021:

	Assets at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	11,992	$	—	$	—	$	—	$	11,992
Preferred stock	20,483		—		169,701		—		190,184
Common stock	2,304,895		3,517		39,831		—		2,348,243
Convertible bonds	—		—		5,250		—		5,250
Corporate bonds	28,892		115,680		2,426		—		146,998
Trade claims	—		—		4,840		—		4,840
Term loan	—		2,375		—		—		2,375
Warrants and rights	34,525		—		18,557		—		53,082
Private investments	—		—		550		—		550
Receivable on derivative contracts, at fair value
Currency forwards	—		109		—		—		109
Equity swaps	—		388,875		—		(115,912)		272,963
Options	49,573		—		228		—		49,801
Interest rate swap	—		19,839		—		—		19,839
	$	2,450,360	$	530,395	$	241,383	$	(115,912)	$	3,106,226
Portfolio funds measured at net asset value (a)									131,766
Consolidated Funds' portfolio funds measured at net asset value (a)									97,182
Carried interest (a)									70,281
Equity method investments (a)									35,581
Total investments									$	3,441,036

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

	Liabilities at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	858,685	$	97,543	$	—	$	—	$	956,228
Corporate bonds	—		1,349		—		—		1,349
Preferred stock	17,278		—		—		—		17,278
Warrants and rights	12		—		—		—		12
Payable for derivative contracts, at fair value
Futures	53		—		—				53
Currency forwards	—		1,084		—		—		1,084
Equity swaps	—		152,265		—		(131,802)		20,463
Options	22,135		—		3,079		—		25,214
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		57,339		—		57,339
	$	898,163	$	252,241	$	60,418	$	(131,802)	$	1,079,020

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the acquisition of Quarton International AG "Quarton"), the fourth quarter of 2020 (the acquisition of MHT Partners, LP "MHT") and the fourth quarter of 2021 (the acquisition of Portico Capital Advisors "Portico"), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $12.5 million to $14.9 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million.

(c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

	Assets at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	16,002	$	—	$	—	$	—	$	16,002
Preferred stock	12,299		—		122,631		—		134,930
Common stock	2,396,041		121		32,658		—		2,428,820
Convertible bonds	—		—		5,250		—		5,250
Corporate bonds	—		19,049		2,419		—		21,468
Trade claims	—		—		3,496		—		3,496
Term loan	—		3,907		—		—		3,907
Private investments	—		—		410		—		410
Warrants and rights	31,056		—		15,403		—		46,459
Receivable on derivative contracts, at fair value
Currency forwards	—		80		—		—		80
Equity swaps	—		305,370		—		(81,742)		223,628
Options	60,985		—		234		—		61,219
Interest rate swap	—		1,208		—				1,208
	$	2,516,383	$	329,735	$	182,501	$	(81,742)	$	2,946,877
Portfolio funds measured at net asset value (a)									137,986
Consolidated Funds' portfolio funds measured at net asset value (a)									99,067
Carried interest (a)									88,925
Equity method investments (a)									47,200
Total investments									$	3,320,055

	Liabilities at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	1,192,396	$	—	$	—	$	—	$	1,192,396
Corporate bonds	—		37		—		—		37
Preferred stock	9,009		—		—		—		9,009
Warrants and rights	6		—		—		—		6
Payable for derivative contracts, at fair value
Futures	266		—		—		—		266
Currency forwards	—		1,346		—		—		1,346
Equity swaps	—		114,689		—		(92,330)		22,359
Options	32,773		—		3,419		—		36,192
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		62,223		—		62,223
	$	1,234,450	$	116,072	$	65,642	$	(92,330)	$	1,323,834

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the Quarton acquisition), the fourth quarter of 2020 (the MHT acquisition) and the fourth quarter of 2021 (the Portico acquisition), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the

35

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $10.1 million to $25.0 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero  to $58.0 million.

(c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

The following table includes a roll forward of the amounts for the three months ended March 31, 2022 and 2021 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.

	Three Months Ended March 31, 2022
	Balance at December 31, 2021		Transfers in		Transfers out		Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2022		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	122,631	$	—	$	—	$	3,441	$	(1,100)	$	44,729	$	169,701	$	44,729
Common stock	32,658		—		—		2,018		(33)		5,188		39,831		5,188
Convertible bonds	5,250		—		—		—		—		—		5,250		—
Corporate bond	2,419		—		—		—		—		7		2,426		7
Options, asset	234		—		—		—		—		(6)		228		(6)
Options, liability	3,419		—		—		—		—		(340)		3,079		(340)
Warrants and rights	15,403		—		—		414		—		2,740		18,557		2,740
Trade claims	3,496		—		—		1,666		(615)		293		4,840		293
Private investments	410		—		—		353		(250)		37		550		37
Contingent consideration liability	62,223		—		—		—		(10,076)		5,192		57,339		5,192

	Three Months Ended March 31, 2021
	Balance at December 31, 2020		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2021		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	59,967	$	—	$	—		$	1,859	$	(4,651)	$	(698)	$	56,477	$	(698)
Common stock	23,786		—		(5,353)		(a)	3,226		(1,387)		2,434		22,706		1,679
Convertible bonds	6,040		—		—			1,050		(3,930)		(23)		3,137		(23)
Corporate Bond, asset	135		—		—			70		(49)		(20)		136		(49)
Options, asset	251		—		—			—		—		(10)		241		(10)
Options, liability	3,915		—		—			—		—		(618)		3,297		(618)
Warrants and rights	6,547		—		—			3,406		(1,206)		(823)		7,924		(895)
Term Loan	12,623		—		—			322		—		(521)		12,424		(521)
Trade claim	8,713		—		—			1,378		(4,216)		30		5,905		(1,021)
Private investments	642		—		—			443		—		—		1,085		—
Corporate bond, liability	704		—		—			—		(289)		—		415		—
Government bonds, liability	1,500		—		—			—		(1,278)		300		522		87
Contingent consideration liability	37,952		—		—			(11,312)		—		(7,061)		19,579		(7,061)
Consolidated Funds
Common stock	2,951		—		—			—		—		—		2,951		—
Warrants and rights	5,806		—		—			—		(670)		193		5,329		(477)

(1) Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying condensed consolidated statements of operations.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(a) The entity in which the Company is invested completed an initial public offering.

Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above.

The Company recognizes all transfers and the related unrealized gain (loss) at the beginning of the reporting period.

Transfers between level 2 and 3 generally relate to whether significant relevant observable inputs are available for the fair value measurements or due to change in liquidity restrictions for the investments.

The following table includes quantitative information as of March 31, 2022 and December 31, 2021 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments.

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value March 31, 2022		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	75,253	Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 20% 6.25x - 6.75x	13% 6.5x
Options	228		Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 13.5% 6.25x - 6.75x	13% 6.5x
Trade claims	2,138		Discounted cash flows	Discount rate	50%	50%
Warrants and rights	5,986		Discounted cash flows Guideline companies Option pricing model	Discount rate EBITDA Market Multiples Volatility	12.5% - 13.5% 6.25x - 6.75x 73% - 103%	13.0% 6.5x 97.2%
Other level 3 assets (a)	157,778
Total level 3 assets	$	241,383
Level 3 Liabilities
Options	3,079		Discounted cash flows Option pricing model	Discount rate Volatility	2.29% 35%	2.29% 35%
Contingent consideration liability	57,339		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	8.6% - 16% 20% - 22%	12.3% 20.9%
Total level 3 liabilities	$	60,418

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2021		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	76,491	Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 20% 6.25x - 6.75x	13% 6.5x
Trade claims	2,376		Discounted cash flows	Discount rate	40%	40%
Warrants and rights	4,483		Discounted cash flows Guideline companies Option pricing model	Discount rate EBITDA Market Multiples Volatility	12.5% - 13.5% 6.25x - 6.75x 90% - 100%	13% 6.5x 95%
Options	234		Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 13.5% 6.25x - 6.75x	13% 6.5x
Other level 3 assets (a)	98,917
Total level 3 assets	$	182,501
Level 3 Liabilities
Options	3,419		Option pricing model	Volatility	35%	35%
Contingent consideration liability	62,223		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	7% - 15% 20% - 24%	12% 22%
Total level 3 liabilities	$	65,642

(a)The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions.

37

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The Company has established valuation policies, procedures and internal control infrastructure over the fair value measurement of financial instruments. In the event that observable inputs are not available, the control processes are designed to ensure that the valuation approach utilized is applicable, reasonable and consistently applied. Where a pricing model is used to determine fair value, these control processes include reviews of the methodology and inputs for both reasonableness and applicability. Consistent with best practices, recently executed comparable transactions and other observable market data are used for the purposes of validating both the model and the assumptions used to calculate fair value. Independent of trading and valuation functions, the Company’s Valuation Committee in conjunction with its Price Verification team, plays an important role in determining that financial instruments are appropriately valued and that fair value measurements are both reasonable and reliable. This is particularly important where prices or valuations that require inputs are less observable. The Valuation Committee is comprised of senior management, including non-investment professionals, who are responsible for overseeing and monitoring the pricing of the Company's investments.

The US GAAP fair value leveling hierarchy is designated and monitored on an ongoing basis. In determining the designation, the Company takes into consideration a number of factors including the observability of inputs, liquidity of the investment and the significance of a particular input to the fair value measurement. Designations, models, pricing vendors, third party valuation providers and inputs used to derive fair market value are subject to review by the valuation committee and the internal audit group. The Company reviews its valuation policy guidelines on an ongoing basis and may adjust them in light of improved valuation metrics and models, the availability of reliable inputs and information, and prevailing market conditions. The Company regularly reviews a profit and loss report, as well as other periodic reports, and analyzes material changes from period to period in the valuation of its investments as part of its control procedures. The Company also performs back testing on a regular basis by comparing prices observed in executed transactions to previous valuations.

The fair market value for level 3 securities may be highly sensitive to the use of industry-standard models, unobservable inputs and subjective assumptions. The degree of fair market value sensitivity is also contingent upon the subjective weight given to specific inputs and valuation metrics. The Company holds various equity and debt instruments where different weight may be applied to industry-standard models representing standard valuation metrics such as: discounted cash flows, market multiples, comparative transactions, capital rates, recovery rates and timing, and bid levels. Generally, changes in the weights ascribed to the various valuation metrics and the significant unobservable inputs in isolation may result in significantly lower or higher fair value measurements. Volatility levels for warrants and options are not readily observable and subject to interpretation. The interrelationship between unobservable inputs may vary significantly amongst level 3 securities as they are generally highly idiosyncratic. Significant increases (decreases) in any of those inputs in isolation can result in a significantly lower (higher) fair value measurement.

Other financial assets and liabilities

The following table presents the carrying values and fair values, at March 31, 2022 and December 31, 2021, of financial assets and liabilities and information on their classification within the fair value hierarchy which are not measured at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value (see Note 2e).

	March 31, 2022						December 31, 2021						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	512,978		$	512,978		$	914,343		$	914,343		Level 1
Cash collateral pledged	52,865			52,865			47,494			47,494			Level 2
Segregated cash	220,882			220,882			194,701			194,701			Level 1
Securities purchased under agreements to resell	19,621			19,621			—			—			Level 2
Securities borrowed	1,761,146			1,761,146			1,704,603			1,704,603			Level 2
Loans receivable	5,041			5,041		(b)	4,858			4,858		(b)	Level 3
Consolidated Funds
Cash and cash equivalents	23			23			296			296			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	229,192			229,192			63,469			63,469			Level 2
Securities loaned	1,735,852			1,735,852			1,586,572			1,586,572			Level 2
Notes payable and other debt	625,766		(c)	644,238		(a)	623,371		(c)	655,229		(a)	Level 2

(a)Notes payable and other debt are based on the last broker quote available.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(b)The fair market value of level 3 loans is calculated using discounted cash flows where applicable.

(c)The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.7 million and $0.2 million as of March 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.

8. Deposits with Clearing Organizations, Brokers and Banks

Under the terms of agreements between the Company and some of its clearing organizations, brokers and banks, balances owed are collateralized by certain of the Company's cash and securities balances. As of March 31, 2022 and December 31, 2021, the Company had a total of $105.9 million and $111.9 million, respectively, in deposit accounts with clearing organizations, brokers and banks that could be used as collateral to offset losses incurred by the clearing organizations, brokers and banks, on behalf of the Company's activities, if such losses were to occur.

9. Receivable From and Payable To Brokers, Dealers and Clearing Organizations

Receivable from and payable to brokers, dealers and clearing organizations includes cash held at the clearing brokers, amounts receivable or payable for unsettled transactions, monies borrowed and proceeds from short sales equal to the fair value of securities sold, not yet purchased, at fair value, which are restricted until the Company purchases the securities sold short. Pursuant to the master netting agreements the Company entered into with its brokers, dealers and clearing organizations, these balances are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held at multiple financial institutions.

As of March 31, 2022 and December 31, 2021, amounts receivable from brokers, dealers and clearing organizations include:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Broker-dealers	$	1,342,242	$	1,533,713
Securities failed to deliver	91,561		17,851
Clearing organizations	44,450		56,075
Securities borrowed/loaned interest receivable	9,658		6,708
	$	1,487,911	$	1,614,347

As of March 31, 2022 and December 31, 2021, amounts payable to brokers, dealers and clearing organizations include:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Broker-dealers	$	419,423	$	483,112
Securities failed to receive	95,201		57,894
Clearing organizations	62,804		37,925
Securities borrowed/loaned interest payable	10,112		7,622
	$	587,540	$	586,553

10. Receivable From and Payable To Customers

As of March 31, 2022 and December 31, 2021, receivable from customers of $159.6 million and $159.4 million, respectively, consist of amounts owed by customers relating to securities transactions not completed on settlement date and receivables arising from prepaid research.

As of March 31, 2022 and December 31, 2021, payable to customers of $2.2 billion and $2.4 billion, respectively, include amounts due on cash and margin transactions to the Company's clients, some of which have their assets held by a Company omnibus account, which are included within receivables from brokers, dealers and clearing organizations in the accompanying condensed consolidated statements of financial condition. In the omnibus structure, positions that are owned by Cowen International Ltd are fully cross collateralized by client funds, meaning that the Company does not have market risk. Additionally, Cowen International Ltd has no obligation to settle any trade that it deems inappropriate from a risk perspective, adding an important market and counterparty risk mitigating factor.

11. Commission Management Payable

The Company receives a gross commission from various brokers, which is then used to fund commission sharing and recapture arrangements, less the portion retained as income to the Company. Accrued commission sharing and commission

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

recapture payable of $127.0 million and $103.0 million, as of March 31, 2022 and December 31, 2021, respectively, are classified as commission management payable in the accompanying condensed consolidated statements of financial condition.

12. Convertible Debt and Notes Payable

As of March 31, 2022 and December 31, 2021, the Company's outstanding debt was as follows:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Notes payable	$	174,139	$	174,015
Term loan	434,319		435,147
Other notes payable	15,857		12,537
Finance lease obligations	1,451		1,672
	$	625,766	$	623,371

Convertible Debt

December 2022 Convertible Notes

The Company, on December 14, 2017, issued $135.0 million aggregate principal amount of 3.00% convertible senior notes due December 2022 (the “December 2022 Convertible Notes”). The December 2022 Convertible Notes have a final maturity date of December 15, 2022 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such date. The interest on the December 2022 Convertible Notes is payable semi-annually on December 15 and June 15 of each year. The December 2022 Convertible Notes are senior unsecured obligations of Cowen. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock. Pursuant to the indenture governing the December 2022 Convertible Notes, conversions of the December 2022 Convertible Notes will be settled by the delivery and/or payment, as the case may be, of Cowen’s Class A Common Stock, cash, or a combination thereof, at the Company's election.

The Company recognized the embedded cash conversion option at issuance date fair value, which also represents the initial unamortized discount on the December 2022 Convertible Notes of $23.4 million and is shown net in convertible debt in the accompanying condensed consolidated statements of financial condition. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity.

During December 2020, the Company repurchased and extinguished $46.9 million of the outstanding principal amount of the December 2022 Convertible Notes for cash consideration of $70.5 million. In conjunction with the partial extinguishment of the December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $3.6 million and capitalized debt issuance costs of $0.4 million. The Company allocated $29.6 million of the cash consideration paid to the extinguishment of the equity component of the December 2022 Convertible Notes. The Company recognized $2.7 million of gain on debt extinguishment.

On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes, and provided holders the option to elect to settle the as-converted value of the December 2022 Convertible Notes as allowed under the terms of the December 2022 Convertible Notes. As a result of the Company’s call for redemption of the December 2022 Convertible Notes, the December 2022 Convertible Notes were convertible, at the option of the holder at any time prior to June 22, 2021, the second business day prior to the December 2022 Convertible Notes' Redemption Date. On June 24, 2021 (the "Redemption Date") the Company redeemed all of the outstanding principal amount of the December 2022 Convertible Notes. The redemption amount was determined based on the holders election to convert, which allowed for either 100.00% of the principal amount thereof plus accrued and unpaid interest on such principal amount up to June 15, 2021, to, but not including the Redemption Date of the December 2022 Convertible Notes, or the value of the Company's Class A common stock to be issued on conversion. The settlement method for the December 2022 Convertible Notes was $88.1 million in cash, (the outstanding principal amount of the December 2022 Convertible Notes) and 2,938,841 shares of the Company’s Class A common stock, (the remainder of the conversion obligation in excess of the principal amount). The conversion rate on the December 2022 Convertible Notes on the Redemption Date was 33.35 shares of the Company’s Class A common stock per $1,000.00 principal amount of December 2022 Convertible Notes converted. In conjunction with the redemption of the remaining December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $5.1 million and capitalized debt issuance costs of $0.5 million.

Amortization on the discount, included within interest and dividends expense in the accompanying condensed consolidated statements of operations is $0.8 million for the three months ended March 31, 2021, based on an effective interest rate of 7.13%.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The Company capitalized the debt issuance costs in the amount of $2.2 million, which is a direct deduction from the carrying value of the debt and was amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations. The Company recorded interest expense of $0.7 million for the three months ended March 31, 2021.

Notes Payable

May 2024 Notes

On May 7, 2019, the Company completed its private placement of $53.0 million aggregate principal amount of 7.25% senior notes due May 2024 (the "May 2024 Notes") with certain institutional investors. On September 30, 2019, the Company issued an additional $25.0 million of the same series of notes. The additional May 2024 Notes were purchased at a premium of $0.5 million, which is shown net in notes payable in the accompanying condensed consolidated statement of financial condition. To date the May 2024 Notes have maintained their initial private rating. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $1.4 million and $1.4 million for the three months ended March 31, 2022 and 2021, respectively. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in September 2019, which is a direct deduction from the carrying value of the debt and will be amortized over the life of the May 2024 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations.

June 2033 Notes

On June 11, 2018, the Company completed its public offering of $90.0 million of 7.75% senior notes due June 2033 (the "June 2033 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $10.0 million principal amount of the June 2033 Notes. Interest on the June 2033 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $1.9 million for the three months ended March 31, 2022 and 2021, respectively. The Company capitalized debt issuance costs of approximately $3.6 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the June 2033 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations.

December 2027 Notes

On December 8, 2017, the Company completed its public offering of $120.0 million of 7.35% senior notes due December 2027 (the "December 2027 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $18.0 million principal amount of the December 2027 Notes. Interest on the December 2027 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $2.5 million for three months ended March 31, 2021. The Company capitalized debt issuance costs of approximately $5.0 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the December 2027 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses payable by the Company were used to redeem all of its 8.25% senior notes due October 2021 and for general corporate purposes.

On March 24, 2021, the Company delivered payment of and discharged all $138.0 million outstanding aggregate principal of the December 2027 Notes plus accrued and unpaid interest through the effective redemption date of April 23, 2021. In conjunction with the extinguishment of the December 2027 Notes , the Company accelerated the pro-rata capitalized debt issuance costs. During the three months ended March 31, 2021, the Company recognized $4.4 million of loss on debt extinguishment.

Term Loan

March 2028 Term Loan

On March 24, 2021, the Company borrowed $300 million of first lien term loan due March 24, 2028. On December 15, 2021, the Company borrowed an additional $150 million first lien term loan under the same terms and conditions as, and fungible with, the initial first lien term loan (collectively, the “March 2028 Term Loan”). The aggregate amount borrowed under the March 2028 Term Loan is $450 million. The March 2028 Term Loan bears interest at an annual rate equal to, at the option of the Company, either the (a) London Inter-bank Offered Rate ("LIBOR") (adjusted for reserves and subject to a floor of 0.75%) plus a margin of 3.25% or (b) an alternate base rate plus a margin of 2.25%. The Company is required to pay amortization of approximately 1.00% per annum of the original principal amount of the March 2028 Term Loan. Additionally, the Company has entered into an interest rate swap to offset the floating interest rate of the March 2028 Term Loan (See Note 6). The obligations of the Company for the March 2028 Term Loan are guaranteed by certain of the Company’s wholly-owned domestic subsidiaries (excluding its broker-dealer subsidiaries) (the “Guarantors”) and secured by substantially all of the assets of the Company and the

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Guarantors, subject in each case to certain customary exceptions. The terms of the March 2028 Term Loan contain customary affirmative and negative covenants, subject to certain customary exceptions, thresholds, qualifications and “baskets”. Proceeds from the March 2028 Term Loan were used to (i) satisfy and discharge and redeem the Company’s 2027 Senior Notes, (ii) redeem the Company’s December 2022 Convertible Notes that remained outstanding as of March 31, 2021 and pay the cash settlement amount in connection with the conversion of December 2022 Convertible Notes prior to that redemption date, and (iii) for the payment of fees, commissions, premiums, expenses and other transaction costs (including original issue discount or upfront fees) payable in connection with the transactions related thereto. As of March 31, 2022, the outstanding principal amount of the March 2028 Term Loan was $445.5 million.

Interest expense for the March 2028 Term Loan was $4.5 million and $0.2 million for the three months ended March 31, 2022 and 2021, based on an effective interest rate of 4.46%. In March 2021, the Company capitalized debt issuance costs of approximately $6.6 million and initial unamortized discount of $1.5 million related to the March 2028 Term Loan which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying condensed consolidated statements of operations. In December 2021, the Company capitalized debt issuance costs of approximately $2.7 million and unamortized discount of $1.5 million related to the additional borrowing of $150 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying condensed consolidated statements of operations.

The U.K. Financial Conduct Authority, which regulates LIBOR, has announced that all US Dollar LIBOR settings will either cease to be provided by any administrator or no longer be representative as of June 30, 2023. As the March 2028 Term Loan represents the Company’s only significant exposure to LIBOR as of March 31, 2022, the transition to an alternative Inter-bank Offer Rate is not expected to have a material impact on Company's consolidated financial statements.

Other Notes Payable

During January 2022, the Company borrowed $4.0 million to fund insurance premium payments. This note had an effective interest rate of 2.01% and was due in December 2022, with monthly payment requirements of $0.4 million. As of March 31, 2022, the outstanding balance note was $3.2 million. Interest expense for the three months ended March 31, 2022 was insignificant.

On September 30, 2020, the Company borrowed $72.0 million from Purple Protected Asset S-81 ("PPA S-81"), a Luxembourg entity unrelated to Cowen. The Company repaid $60.0 million of the PPA S-81 loan in June 2021. The loan is payable on September 30, 2023, had an initial interest rate of 1.4 times the Secured Overnight Financing Rate ("SOFR") plus 6.07% until December 31, 2020 and 1.4 times the SOFR plus 5.8% until June 30, 2021 and 3.65 times the SOFR plus 4.0% thereafter with quarterly interest payments. The loan obligation, as well as a loan issued by The Military Mutual Ltd (a United Kingdom company unrelated to Cowen) with principal of $28.4 million that was sold by Cowen Re to PPA S-81 at fair value for no gain or loss on September 30, 2020, are fully cash collateralized through a reinsurance policy provided by Cowen Re which is reflected in cash collateral pledged in the condensed consolidated statements of financial condition as of December 31, 2020 (see Notes 4 and 18). The Company capitalized debt issuance costs of approximately $1.7 million which is a direct deduction from the carrying value of the loan and will be amortized over the life of the loan in interest and dividends expense shown in the accompanying condensed consolidated statements of operations. The Company recorded interest expense of $0.5 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively, related to its loan payable to PPA S-81.

During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note had an effective interest rate of 6% and is due in November 2024, with monthly payment requirements of $0.1 million. As of March 31, 2022, the outstanding balance on this note was $1.5 million. Interest expense for the three months ended March 31, 2022 and 2021 was insignificant.

Finance Lease Obligations

The Company has entered into various finance leases for computer equipment. These finance lease obligations are included in notes payable and other debt in the accompanying condensed consolidated statements of financial condition.

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's finance lease obligations reflected in the accompanying condensed consolidated statements of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	324		$	309
Interest on lease liabilities	$	20		$	34
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	20		$	34
Financing cash flows from finance leases	$	274		$	332
Weighted average remaining lease term - operating leases (in years)	1.63			2.01
Weighted average discount rate - operating leases	4.66		%	4.89		%

Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of March 31, 2022, are as follows:

	Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2022	$	11,468	$	16,733	$	3,752	$	849
2023	13,405		22,351		12,593		500
2024	88,578		22,168		543		100
2025	7,750		21,986		—		49
2026	7,750		21,803		—		12
Thereafter	150,375		445,631		—		—
Subtotal	279,326		550,672		16,888		1,510
Less (a)	(105,187)		(116,353)		(1,031)		(59)
Total	$	174,139	$	434,319	$	15,857	$	1,451

(a)Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt.

Letters of Credit

As of March 31, 2022, the Company has six irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. The Company also has pledged cash collateral for reinsurance agreements (See Note 4).

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of March 31, 2022 and December 31, 2021, there were no amounts due related to these letters of credit.

13. Redeemable Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of preferred stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding. The Company's amended and restated certificate of incorporation permits the Company to issue up to 10,000,000 shares of preferred stock in one or more series with such designations, titles, voting powers, preferences and rights and such qualifications, limitations and restrictions as may be fixed by the board of directors of the Company without any further action by the Company's stockholders. The Company's board of directors may increase or decrease the number of shares of any series of preferred stock following the issuance of that series of preferred stock, but in no instance can the number of shares of a series of preferred stock be reduced below the number of shares of the series then outstanding.

On May 19, 2015, the Company completed its offering of 120,750 shares of Series A Convertible Preferred Stock that provided $117.2 million of proceeds, net of underwriting fees and issuance costs of $3.6 million. Each share of the Series A

43

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum, which will be payable, when and if declared by the board of directors of the Company, quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Company may, at its option, pay dividends in cash, common stock or a combination thereof. The Company declared and paid a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million for the three months ended March 31, 2022. The Company declared and accrued a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million for the three months ended March 31, 2021. Each share of Series A Convertible Preferred Stock is non-voting and has a liquidity preference over the Company's Class A common stock and ranks senior to all classes or series of the Company's Class A common stock, but junior to all of the Company's existing and future indebtedness with respect to dividend rights and rights upon the Company's involuntary liquidation, dissolution or winding down.

Upon issuance, each share of Series A Convertible Preferred Stock was convertible, at the option of the holder, into a number of shares of the Company's Class A common stock equal to the liquidation preference of $1,000.00 divided by the conversion rate. The initial conversion rate (subsequent to the December 5, 2016 reverse stock split) is 38.0619 shares (which equates to $26.27 per share) of the Company's Class A common stock for each share of the Series A Convertible Preferred Stock. At any time on or after May 20, 2020, when the Company's capped call option expired, the Company was able to elect to convert all outstanding shares of the Series A Convertible Preferred Stock into shares of the Company's Class A common stock, cash or a combination thereof, at the Company's election, in each case, based on the then-applicable conversion rate, if the last reported sale price of the Company's Class A common stock equals or exceeds 150% of the then-current conversion price on at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days (including on the last trading day of such period) immediately prior to such election. At the time of conversion, the conversion rate may be adjusted based on certain events, including but not limited to the issuance of cash dividends or Class A common stock as dividends to the Company's Class A common shareholders or a share split or combination.

On December 31, 2021, the Company irrevocably elected that, upon the conversion of any share of the outstanding Series A Convertible Preferred Stock, the Company will settle $1,000.00 of its conversion obligation in cash. With respect to each conversion, to the extent the conversion obligation per share of Series A Convertible Preferred Stock is greater than $1,000.00, the Company may satisfy its conversion obligation in respect of such excess using any settlement method permitted under the Certificate of Designations. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company reclassified the Series A Convertible Preferred Stock to temporary equity at December 31, 2021.

14. Stockholder's Equity

The Company is authorized to issue 125,000,000 shares of common stock, which shall consist of 62,500,000 shares of Class A common stock, par value $0.01 per share, and 62,500,000 shares of Class B common stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of common stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding.

The certificate of incorporation of the Company provides for two classes of common stock, and for the conversion of each class into the other, to provide a mechanism by which holders of Class A common stock of the Company who may be limited in the amount of voting common stock of the Company they can hold pursuant to federal, state or foreign bank laws, to convert their shares into non-voting Class B common stock to prevent being in violation of such laws. Each holder of Class A common stock is entitled to one vote per share in connection with the election of directors and on all other matters submitted to a stockholder vote, provided, however, that, except as otherwise required by law, holders of Class A common stock are not entitled to vote on any amendment to the Company's amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of the Company's preferred stock, if holders of the preferred stock series are entitled to vote on the amendment under the Company's certificate of incorporation or Delaware law. No holder of Class A common stock may accumulate votes in voting for directors of the Company.

No holder of Class B common stock is entitled to vote except as otherwise provided by law, provided however that the Company must obtain the consent of a majority of the holders of Class B common stock to effect any amendment, alteration or repeal of any provision of the Company's amended and restated certificate of incorporation or amended and restated by-laws that would adversely affect the voting powers, preferences or rights of holders of Class B common stock. Except as otherwise provided by law, Class B common stock shares will not be counted as shares held by stockholders for purposes of determining whether a vote or consent has been approved or given by the requisite percentage of shares.

Each share of Class A common stock is convertible at the option of the holder and at no cost into one share of Class B common stock, and each share of Class B common stock is convertible at the option of the holder and at no cost into one share of Class A common stock. The conversion ratios will be adjusted proportionally to reflect any stock split, stock dividend, merger,

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

reorganization, recapitalization or other change in the Class A common stock and Class B common stock. Upon conversion, converted shares resume the status of authorized and unissued shares.

Subject to the preferences of the holders of any of the Company's preferred stock that may be outstanding from time to time, each share of Class A common stock and Class B common stock will have an equal and ratable right to receive dividends and other distributions in cash, property or shares of stock as may be declared by the Company's board of directors out of assets or funds legally available for the payment of dividends and other distributions.

In the event of the liquidation, dissolution or winding up of the Company, subject to the preferences of the holders of any preferred stock of the Company that may be outstanding from time to time, holders of Class A common stock and Class B common stock will be entitled to share equally and ratably in the assets available for distribution to the Company's stockholders. There are no redemption or sinking fund provisions applicable to the Class A or the Class B common stock.

Embedded Cash Conversion Option on the December 2022 Convertible Notes

Upon issuance of the December 2022 Convertible Notes (see Note 12), the Company recognized the embedded cash conversion option at fair value of $23.4 million which was valued as of June 26, 2018 at $29.0 million. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity. The Company allocated $29.6 million of the cash consideration paid on the December 2020 partial extinguishment of the Convertible Notes (see Note 12) to this equity component. The Company redeemed all of the remaining December 2022 Convertible Notes on June 24, 2021.

Cash Dividends to Common Stockholders

During the first quarter of 2020, the Company began the declaration of a quarterly cash dividend payable on its common stock. During March 2021, the Company's Board of Directors declared a cash dividend of $0.08 per share of Class A common stock. During June 2021, September 2021 and December 2021, the Company's Board of Directors declared a cash dividend of $0.10 per share of Class A common stock. During March 2022, the Company's Board of Directors declared a cash dividend of $0.12 per share of Class A common stock. Dividends are payable on all outstanding shares of Class A common stock and on granted but unvested shares of Class A common stock under the Equity Plans on the date of record (See Note 19). During the three months ended March 31, 2022, the Company paid $3.9 million of cash dividends to its holders of Class A common stock.

Treasury Stock

Treasury stock of $583.5 million as of March 31, 2022, compared to $547.1 million as of December 31, 2021, resulted from $12.3 million acquired through repurchases of shares to cover employee minimum tax withholding obligations related to stock compensation vesting events under the Equity Plans or other similar transactions and $24.1 million purchased in connection with a share repurchase program.

The following represents the activity relating to the treasury stock held by the Company during the three months ended March 31, 2022:

	Treasury Stock Shares	Cost (dollars in thousands)		Average Cost per Share
Balance outstanding at December 31, 2021	28,047,929	$	547,112	$	19.51
Shares purchased for minimum tax withholding under the 2010 and 2020 Equity Plans or other similar transactions	374,149	12,283		32.83
Purchase of treasury stock	798,302	24,140		30.24
Balance outstanding at March 31, 2022	29,220,380	$	583,535	$	19.97

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

15. Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds

Redeemable and nonredeemable non-controlling interests in consolidated subsidiaries and investment funds and the related net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds are comprised as follows:

	As of March 31, 2022		As of March 31, 2021
	(dollars in thousands)
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds
Operating companies
Beginning balance	126,105		83,818
Capital contributions	1,610		3,498
Capital distributions	(5,901)		(2,348)
Income (loss) attributable to non-controlling interests	20,858		7,661
Ending balance	142,672		92,629
Consolidated Funds
Beginning balance	33,630		115,806
Capital contributions	—		19,017
Capital distributions	—		(16,425)
Deconsolidation of entity	—		(74,813)
Income (loss) attributable to non-controlling interests	(727)		(3,099)
Ending balance	32,903		40,486
Total Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds	$	175,575	$	133,115

16. Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income includes the after tax change in Other revenues in the accompanying condensed consolidated statement of operations. During the periods presented, the Company did not have material reclassifications out of other comprehensive income.

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Beginning balance	$	(2)	$	(7)
Foreign currency translation	2		4
Ending balance	$	—	$	(3)

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

17. Revenue from Contracts with Customers

For the three months ended March 31, 2022 and 2021, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Three Months Ended March 31,
		2022		2021
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	17,583	$	154,304
Strategic/financial advisory fees		58,789		73,555
Placement and sales agent fees		22,584		72,544
Expense reimbursements from clients		2,586		4,431
	Total investment banking revenue	101,542		304,834
Brokerage
Commissions		152,483		159,681
Trade conversion revenue		7,410		6,241
Equity research fees		6,203		4,593
	Total brokerage revenue from customers	166,096		170,515
Management fees		16,555		25,499
Incentive income		633		2,258
Total revenue from contracts with customers - Op Co		$	284,826	$	503,106
		Asset Company
Management fees		214		243
Incentive income		—		—
Total revenue from contracts with customers - Asset Co		214		243
Total revenue from contracts with customers		$	285,040	$	503,349

18. Insurance and reinsurance

Cowen Insurance Co is a Malta based insurance company that reinsures a significant proportion of its portfolio (“Outward Reinsurance”). The Company's wholly owned Luxembourg subsidiary, Cowen Reinsurance S.A. (formerly Hollenfels Re S.A.) (“Cowen Re”) provides reinsurance to third party insurance and reinsurance companies (“Inward Reinsurance”). Cowen Insurance Co’s and Cowen Re's share of claims incurred and paid during the periods below, as well as the change in claims outstanding and claims incurred but not reported ("IBNR") during these periods, net of reinsurance, were as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Incurred and paid claims
Insurance (net of Outward Reinsurance)	$	1,067	$	744
Inward Reinsurance	3,011		3,904
Total	$	4,078	$	4,648
Change in claims outstanding and claims IBNR
Insurance (net of Outward Reinsurance)	$	54	$	(136)
Inward Reinsurance	(589)		(559)
Total	$	(535)	$	(695)

Cowen Insurance Co and Cowen Re utilize several methods to determine their claims IBNR. Cowen Insurance Co and Cowen Re generally employ an estimation methodology whereby historical average claims ratios over a period of up to 10 years are utilized, based on availability of data. In cases where current claims development contradicts historical results, Cowen Insurance Co and Cowen Re employ a method to average claims ratios derived through different actuarial calculation methods. If an event occurs that may give rise to significant future claims in excess of the amount calculated using the above-mentioned

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

methodologies, the impact of such an event is calculated using existing claims data and actuarial estimation methods to adjust Cowen Insurance Co's and Cowen Re's IBNR provision. During the three months ended March 31, 2022, claims liability and claim adjustment expenses were calculated using the above-mentioned methods consistent with prior years.

While Cowen Insurance Co and Cowen Re typically settle their premiums and claim payments on a quarterly basis, the frequency of claims in the underlying policies is impractical for Cowen Insurance Co and Cowen Re to obtain. Cowen Insurance Co and Cowen Re write contracts on both a proportional and non-proportional basis. The contracts contain inspection rights to allow the companies to inspect the policy documents that provide the source for the underlying data provided by the cedant. This negates the need for them to collect and hold the documents themselves which would be impracticable. Cowen Insurance Co and Cowen Re did not discount any of its reserves and did not cede any portion of its exposures during the three months ended March 31, 2022 and 2021.

From time to time, Cowen Insurance Co and Cowen Re may enter into insurance and reinsurance agreements that require it to post collateral of cash or U.S. government bonds to cover certain exposures as defined in the respective insurance and reinsurance agreements. As of March 31, 2022, Cowen Re had pledged $61.4 million of collateral towards such reinsurance obligations, of which $49.4 million was in cash and $12.0 million was in U.S. government bonds. As of March 31, 2021, total collateral pledged was $120.5 million, of which $106.8 million was cash and $13.7 million was U.S. government bonds. The collateral pledged as of March 31, 2022 was $1.4 million higher than the amounts pledged at December 31, 2021. This is due to cash movements required to maintain contracted minimum balances with cedants. Cowen Re expects $40.5 million of the cash collateral pledged to be released on September 30, 2023. The remaining collateral of $20.9 million is expected to be released periodically between March 31, 2022 and March 31, 2024 in accordance with the terms of the underlying insurance and reinsurance agreements. As of December 31, 2021, Cowen Insurance Co had no pledged collateral.

19. Share-Based Payments, Deferred Compensation and Employee Ownership Plans

The Company has issued share-based compensation under the 2010 and 2020 Equity Incentive Plan (the "Equity Plans"). The Equity Plans permit the grant of options, restricted shares, restricted stock units, and other equity-based awards to the Company's employees and directors. Stock options granted generally vest over two to five-year periods and expire seven years from the date of grant. Restricted shares and restricted share units issued, both of which are eligible to accrue dividend equivalents, may be immediately vested or may generally vest over a two-to five-year period. Awards are subject to the risk of forfeiture, inclusive of accrued dividend equivalents. As of March 31, 2022, there were 0.6 million shares available for future issuance under only the 2020 Equity Incentive Plan.

Under the Equity Plans, the Company awarded $49.1 million of deferred cash awards to its employees during the three months ended March 31, 2022. These awards vest over a four-year period and accrue interest at 0.70% per year. As of March 31, 2022, the Company had unrecognized compensation expense related to the Equity Plans' deferred cash awards of $89.8 million.

The Company measures compensation cost for equity classified share-based awards on grant date and amortizes the unearned compensation associated with such awards on a straight-line basis over the vesting period of the option or award, net of estimated forfeitures. In relation to awards under the Equity Plan, the Company recognized compensation expense of $21.6 million and $28.2 million for the three months ended March 31, 2022 and 2021, respectively. The income tax effect recognized for the Equity Plans was a benefit of $7.0 million and $10.8 million for the three months ended March 31, 2022 and 2021, respectively.

Restricted Stock Units Granted to Employees

Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units	Weighted-Average Grant Date Fair Value		Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units	Weighted-Average Grant Date Fair Value
Beginning balance outstanding	4,595,342	$	24.33	5,450,191	$	17.56
Granted	1,919,504	31.98		1,593,941	34.85
Vested	(224,073)	19.32		(291,062)	16.11
Canceled	—	—		—	—
Forfeited	(16,526)	20.51		(8,134)	20.22
Ending balance outstanding	6,274,247	$	26.86	6,744,936	$	21.71

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Included in the restricted share and restricted stock unit activity are performance-linked restricted stock units of 1,974,217 which were awarded from March 2016 through March 2022. Certain of the awards granted have the ability to be cash settled when the attained award exceeds a certain percentage of granted amount. The cash portion of the award has been bifurcated from the equity component and recorded as a compensation payable in the accompanying condensed consolidated statement of financial condition. Of the awards granted, 712,652 have vested and 320,681 have been canceled, as they did not meet the performance criteria, through March 31, 2022. Included in vested units are 233,333 units that had an attainable share value of 420,000, and were delivered in March 2021. Of this attainable share value 350,000 shares were settled in the issuance of the Company's Class A common stock and were delivered in March 2021 with the remaining 70,000 shares being settled in cash at the volume weighted average price on settlement date. Also included in vested units are 333,333 units that had an attainable share value of 666,666, due to reaching certain performance goals. Of this attainable value 528,800 shares were settled in the Company's Class A common stock and were delivered in March 2022 with the remaining 137,866 shares being settled in cash at the volume weighted average price of the Company's Class A common stock on settlement date. The remaining awards, included in the outstanding balance as of March 31, 2022, vest on December 2022, December 2023 and December 2024 and will be earned only to the extent that the Company attains specified market conditions relating to its volume-weighted average share price and total shareholder return in relation to certain benchmark indices and performance goals relating to aggregate net income and average return on shareholder equity. The actual number of attained shares ultimately earned could vary from zero, if performance goals are not met, to as much as 240% of the targeted award. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. The fair value of restricted stock is determined based on the number of shares granted and the quoted price of the Company's common stock on the date of grant.

As of March 31, 2022, there was $116.0 million of unrecognized compensation expense related to the Company's grant of nonvested restricted shares and restricted stock units to employees. Unrecognized compensation expense related to nonvested restricted shares and restricted stock units granted to employees is expected to be recognized over a weighted-average period of 2.14 years.

Restricted Shares and Restricted Stock Units Granted to Non-Employee Board Members

There were no restricted stock units awarded to non-employee board members during the three months ended March 31, 2022 and 2021. The Company delivered no units to non-employee board members during the three months ended March 31, 2022 and 2021. As of March 31, 2022 and 2021, there were 246,333 and 259,536 restricted stock units outstanding for non-employee board members, respectively.

Other Share Based Payments and Awards

In certain circumstances, the Company grants carried interest in consolidated managing member/general partner subsidiaries to third parties through the grant of equity awards in exchange for professional, advisory and other services. The equity awards are recorded within additional paid in capital in the accompanying condensed consolidated statements of financial condition and professional, advisory and other fees expense in the accompanying condensed consolidated statements of operations based on the fair value of the award granted and expensed over the terms of the award. In addition, the equity awards provide the third parties profit points aligned to the allocated carried interest distributions. Upon vesting of the awards, the third parties' allocation of carried interest is determined by applying an equity ownership model. Accordingly, the Company accrues carried interest allocations based on the fair value of the underlying investments assuming hypothetical liquidation at book value upon vesting as nonredeemable non-controlling interest.

On March 1, 2022, Cowen Digital Holdings LLC (“CDIG”) authorized 2,000,000 Class B Units, of which 1,487,500 Class B Units were issued to an affiliate, for which a subsidiary of the Company is the Managing Member, on behalf of the Company’s employees as incentive awards (the "Digital Awards") under the 2022 Equity Unit Incentive Plan. The Class B Units will, upon vesting, represent a 20% ownership of CDIG, a consolidated subsidiary of the Company upon vesting. Once the vesting conditions of the Digital Awards have been met, such awards will be presented as nonredeemable non-controlling interest in the accompanying condensed consolidated statements of financial condition. Half of the Digital Awards vest over a period of time and are tied to service (time based) and the other half vest when a qualifying event as stipulated in the Digital Award documents occurs (performance based). Once vested, Class B units will not be entitled to distributions unless and until a profit distribution hurdle has been met. The Company recognized compensation expense of $0.3 million related to the time based Digital Awards for the three months ended March 31, 2022. At March 31, 2022, there was $1.3 million of unrecognized compensation expense related to the time based Digital Awards which will be recognized over their five year vesting period. The fair value of time based Digital Awards is determined based on the fair market value of CDIG and its consolidated subsidiaries. The fair market value of CDIG and its consolidated subsidiaries is calculated utilizing recent transactions, discounted cash flows, and market multiples. The Digital Awards are then using a standard Black Scholes options pricing model. The primary input in determining the fair market value as of March 1, 2022 was recent/pending transactions in CDIG’s underlying investments. The expense related

49

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

to the performance based component of the Digital Awards will be recognized when the qualifying event is considered to be probable. The income tax effect recognized for the Digital Awards was a benefit of $0.1 million for the three months ended March 31, 2022.

20. Income Taxes

The taxable results of the Company’s U.S. operations are included in the consolidated income tax returns of Cowen, Inc. as well as stand-alone state and local tax returns. The Company has subsidiaries that are resident in foreign countries where tax filings are submitted on a stand-alone basis. These subsidiaries are subject to tax in their respective countries and the Company is responsible for and, thus, reports all taxes incurred by these subsidiaries. The countries where the Company owns subsidiaries that file tax returns are United Kingdom, Luxembourg, Malta, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong.

The Company calculates its U.S. tax provision using the estimated annual effective tax rate methodology. The tax expense or benefit caused by an unusual or infrequent item is recorded in the quarter in which it occurs. To the extent that information is not available for the Company to fully determine the full year estimated impact of an item of income or tax adjustment, the Company calculates the tax impact of such item discretely. Accordingly, the Company uses the discrete methodology to calculate the tax impact of income attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds. Based on these methodologies, the Company’s effective income tax rate was 17.74% and 26.36% for the three months ended March 31, 2022 and 2021, respectively. During the three months ended March 31, 2022, the item whose tax impact was recorded discretely related primarily to stock compensation.

For the three months ended March 31, 2022, the effective tax rate differs from the statutory rate of 21% primarily due to income attributable to non-controlling interests in consolidated subsidiaries and investment funds, global intangible low-taxes income, foreign taxes, as well as other nondeductible expenses. For the three months ended March 31, 2021, the effective tax rate differs from the statutory rate of 21% primarily due to income attributable to noncontrolling interests in consolidated subsidiaries and investment funds, global intangible low-taxes income, stock compensation, as well as other nondeductible expenses.

The Company has no uncertain tax position liability as of March 31, 2022 and December 31, 2021.

The Company records deferred tax assets and liabilities for the future tax benefit or expense that will result from differences between the carrying value of its assets for income tax purposes and for financial reporting purposes, as well as for operating or capital loss and tax credit carryovers. A valuation allowance is recorded to bring the net deferred tax assets to a level that, in management's view, is more likely than not to be realized in the foreseeable future. This level will be estimated based on a number of factors, especially the amount of net deferred tax assets of the Company that are actually expected to be realized, for tax purposes, in the foreseeable future. As of March 31, 2022, the Company recorded a valuation allowance against deferred tax assets related to its foreign tax credits and foreign net operating losses.

The Company is subject to examination by the United States Internal Revenue Service as well as state, local and foreign tax authorities in jurisdictions where the Company has significant business operations, such as New York, United Kingdom, Luxembourg, Malta, and Germany.

The Company continues to permanently reinvest the capital and accumulated earnings of its subsidiaries in the United Kingdom, Malta, Germany, Switzerland, Israel, Canada, and Hong Kong.

21. Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company's common stockholders by the weighted average number of shares of Class A common stock outstanding for the period. As of March 31, 2022, there were 27,614,903 shares of Class A common stock outstanding. As of March 31, 2022, the Company has included 246,803 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share. As of December 31, 2021, there were 27,778,964 shares of Class A common stock outstanding. As of December 31, 2021, the Company has included 972,732 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share.

Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares and restricted stock units. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized.

50

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The Company previously concluded that it had the intent and ability to settle the December 2022 Convertible Notes in cash and, as a result, the convertible notes did not have an impact on the Company's diluted earnings per share calculation. On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes (See Note 12). On June 24, 2021, the Company cash settled the December 2022 Convertible Notes up to the principal amount of the December 2022 Convertible Notes and share settled through the delivery of shares of the Company’s Class A common stock for the remainder of the conversion obligation in excess of the principal amount. The shares of the Company’s Class A common stock issued are within basic earnings per share subsequent to June 24, 2021. Prior to that date, the Company has applied the if-converted method to the portion of the December 2022 notes above the principal amount that settled in shares upon a conversion in dilutive earnings per share.

On December 31, 2021, the Company irrevocably elected to cash settle $1,000.00 of its obligation in respect of each conversion of any share of the Series A Convertible Preferred Stock. Prior to this date, the Company could elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. Effective January 1, 2022, Company adopted ASC 470-20, which requires the Company to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. As a result, the Series A Convertible Preferred Stock impacts the Company’s diluted earnings per share calculation for the March 31, 2022 (See Note 2).

The computation of earnings per share is as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars and share data in thousands, except per share data)
Net income (loss)	$	55,147	$	152,066
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131		4,562
Net income (loss) attributable to Cowen Inc.	35,016		147,504
Preferred stock dividends	1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders for basic earnings per share	33,318		145,806
Change in fair value of contingently issuable shares	41		—
Net income (loss) attributable to Cowen Inc. common stockholders for diluted earnings per share	$	33,359	$	145,806
Shares for basic and diluted calculations:
Weighted average shares used in basic computation	28,386		27,359
Performance based restricted stock	374		445
Contingently issuable common stock in connection with acquisitions	82		—
December 2022 Convertible Notes	—		2,659
Series A Convertible Preferred Stock	708		—
Restricted stock	2,222		3,102
Weighted average shares used in diluted computation	31,772		33,565
Earnings (loss) per share:
Basic	$	1.17	$	5.33
Diluted	$	1.05	$	4.34

22. Commitments and Contingencies

Operating Lease Obligations

The Company has entered into leases for real estate and other facilities. These leases contain rent escalation clauses and options to extend the applicable lease term. The Company does not include renewal options in the lease term for calculating the Company's lease liability as the renewal options allow the Company operational flexibility and the Company is not reasonably certain to exercise these renewal options at this time. The Company records the expenses related to occupancy and equipment on

51

Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

a straight-line basis over the lease term and these expenses are included in occupancy and equipment expense and client services and business development expense in the accompanying condensed consolidated statements of operations.

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's operating lease obligations reflected in the accompanying condensed consolidated statements of operations were as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Lease cost
Operating lease cost	$	6,614	$	5,770
Short-term lease cost	141		33
Variable lease cost	837		906
Sublease income	(155)		(160)
Total lease costs	$	7,437	$	6,549

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,814		$	6,748
Weighted average remaining lease term - operating leases (in years)	5.54			4.56
Weighted average discount rate - operating leases	4.13		%	4.10		%

As of March 31, 2022, maturities of the outstanding operating lease liabilities for the Company were as follows:

	Equipment Leases (operating)		Real Estate and Other Facility Rental (a) (b)
	(dollars in thousands)
2022	$	366	$	16,813
2023	381		25,476
2024	370		22,965
2025	370		12,312
2026	278		8,881
Thereafter	—		24,969
Total operating leases	1,765		111,416
Less discount	105		13,218
Less short-term leases	—		58
Total lease liability	$	1,660	$	98,140

(a)The Company has entered into various agreements to sublease certain of its premises.

(b)During the three months ended March 31, 2022, the Company recognized an increase of $8.3 million of operating right-of-use assets and leases liabilities related to facility leases.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Other Commitments

As of March 31, 2022, future minimum annual service payments for the Company were as follows:

	Service Payments
	(dollars in thousands)
2022	$	22,196
2023	17,544
2024	8,214
2025	3,889
2026	3,253
Thereafter	7,357
Total service payment commitments	$	62,453

Unfunded Commitments

The following table summarizes unfunded commitments as of March 31, 2022:

Entity	Unfunded Commitments		Commitment Term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	6,451	2.8 years
Eclipse Ventures Fund I, L.P.	$	28	2.8 years
Eclipse Fund II, L.P.	$	18	3.8 years
Eclipse Continuity Fund I, L.P.	$	16	4.8 years
Cowen Healthcare Investments III LP	$	2,165	4.8 years
Cowen Healthcare Investments IV LP	$	5,784	5.8 years
Cowen Sustainable Investments I LP	$	14,643	7.8 years

(a) The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners.

Litigation

In the ordinary course of business, the Company and its affiliates, subsidiaries and current and former officers, directors and employees (the "Company and Related Parties") are named as defendants in, or as parties to, various legal actions and proceedings. Certain of these actions and proceedings assert claims or seek relief in connection with alleged violations of securities, banking, anti-fraud, anti-money laundering, employment and other statutory and common laws. Certain of these actual or threatened legal actions and proceedings include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief.

In the ordinary course of business, the Company and Related Parties are also subject to governmental and regulatory examinations, information gathering requests (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Certain of the Company's affiliates and subsidiaries are registered broker-dealers, futures commission merchants, investment advisers or other regulated entities and, in those capacities, are subject to regulation by various U.S., state and foreign securities, commodity futures and other regulators. In connection with formal and informal inquiries by these regulators, the Company receives requests and orders seeking documents and other information in connection with various aspects of the Company's regulated activities.

Due to the global scope of the Company's operations, and its presence in countries around the world, the Company and Related Parties may be subject to litigation, governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), in multiple jurisdictions with legal and regulatory regimes that may differ substantially, and present substantially different risks, from those to which the Company and Related Parties are subject in the United States.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

In accordance with US GAAP, the Company establishes reserves for contingencies when the Company believes that it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. The Company discloses a contingency if there is at least a reasonable possibility that a loss may have been incurred and there is no reserve for the loss because the

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

conditions above are not met. The Company's disclosure includes an estimate of the reasonably possible loss or range of loss for those matters, for which an estimate can be made. Neither a reserve nor disclosure is required for losses that are deemed remote.

The Company appropriately reserves for certain matters where, in the opinion of management, the likelihood of liability is probable and the extent of such liability is reasonably estimable. Such amounts are included within accounts payable, accrued expenses and other liabilities in the accompanying condensed consolidated statements of financial condition. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Company's defenses and its experience in similar cases or proceedings as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. The Company may increase or decrease its legal reserves in the future, on a matter-by-matter basis, to account for developments in such matters. The Company accrues legal fees as incurred.

23. Segment Reporting

The Company has two reportable business segments: Op Co and Asset Co. The Op Co segment consists of Cowen Investment Management ("CIM"), Investment Banking, Markets and Research. The Asset Co segment consists of the Company's private investments, private real estate investments and other legacy investment strategies.

Segment Measures

The measure of profit or loss for these segments is Economic Income (Loss), which management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

In general, Economic Income (Loss) is an after tax measure (which represents the Company’s income tax expense or benefit calculated on Pre-tax Economic Income (Loss) once all currently available net operating losses have been utilized and is presented after preferred stock dividends. Economic Income (Loss) (i) includes management reclassifications which the Company believes provides additional insight into the performance of the Company’s core businesses and divisions (ii) eliminates the impact of consolidation for Consolidated Funds and (iii) excludes goodwill and certain other impairments, certain other transaction-related adjustments and/or reorganization expenses and certain costs associated with debt.

The Company does not disclose total asset information for its business segments as the information is not reviewed by the Chief Operating Decision Maker ("CODM"). The Op Co and Asset Co segments do not conduct inter-segment transactions.

The following table sets forth operating results for the Company's consolidated US GAAP net income (loss) and related reclassifications and adjustments necessary to reconcile to the Company's Economic Income (Loss) measure which represents the Company's Op Co and Asset Co segments' results:

		Three Months Ended March 31,
		2022		2021
	(dollars in thousands)
Economic Income
Op Co		$	36,297	$	143,858
Asset Co		1,150		(1,476)
Adjustments applied to arrive at Net Income (loss)
Income attributable to non-controlling interest		20,131		4,562
Preferred stock dividends		1,698		1,698
Amortization of (discount)/premium on convertible debt		(75)		(776)
Acquisition related amounts		(80)		(238)
Contingent liability adjustments		(5,133)		6,798
Debt extinguishment gain (loss) and accelerated debt costs		—		(4,538)
Bargain purchase gain		—		3,855
US GAAP Income tax expense		(11,889)		(54,428)
Economic income tax expense		13,048		52,751
Net income (loss)		$	55,147	$	152,066

Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense, (iv) depreciation and amortization expense and (v) income taxes presented on an Economic Income (Loss) basis by Segment. The following table sets forth the included segment information on a US GAAP basis with reconciliations to consolidated amounts.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Op Co
Non-Interest Revenue	$	367,652	$	697,885
Interest Revenue	40,331		51,104
Total Revenues	407,983		748,989
Interest Expense	43,300		53,803
Depreciation and Amortization	7,179		4,349
Income Taxes	11,832		55,085
Asset Co
Non-Interest Revenue	2,599		(1,668)
Interest Revenue	8		203
Interest Revenue, Consolidated funds	2		2
Total Revenues	2,609		(1,463)
Interest Expense	1,236		1,275
Depreciation and Amortization	6		5
Income Taxes	57		(657)
Total Segment
Non-Interest Revenue *	370,251		696,217
Interest Revenue	40,339		51,307
Interest Revenue, Consolidated funds	2		2
Total Revenues	$	410,592	$	747,526
Interest and Dividend Expense (includes dividend expense of $2.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively)	46,524		57,641
Depreciation and Amortization	7,185		4,354
Income Taxes	11,889		54,428

* Includes dividend revenue of $6.0 million and $8.1 million for the three months ended March 31, 2022 and 2021, respectively. In addition, includes dividend revenue, consolidated funds, of $0.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively.

24. Regulatory Requirements

Regulatory Capital

As registered broker-dealers with the United States Securities and Exchange Commission ("SEC"), Cowen and Company, ATM Execution and Westminster are subject to the Uniform Net Capital Rule 15c3-1, "SEA Rule 15c3-1," under the Securities Exchange Act ("SEA") of 1934, which requires the maintenance of minimum net capital. Each registered broker-dealer has elected to compute net capital under the alternative method permitted by that rule.

The Company acquired Portico, a registered broker-dealer on December 16, 2021. As a result of the acquisition, Portico's net assets were transferred into Cowen and Company. The Company applied to withdraw Portico's status as a FINRA registered broker-dealer on December 20, 2021 which was approved by the SEC on February 18, 2022.

Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEA Rule 15c3-1, is equal to the greater of $1.5 million or 2% of aggregate debits arising from customer transactions. ATM Execution, and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEA Rule 15c3-1, equal to the greater of $250,000 or 2% of aggregate debits arising from customer transactions. Advances to affiliates, repayment of borrowings, distributions, dividend payments, and other equity withdrawals are subject to certain notification and other provisions of SEA Rule 15c3-1 and other regulatory bodies.

Cowen and Company is also subject to certain net capital rule requirements under the Regulation 1.17 of the Commodity Futures Trading Commission ("CFTC") under Commodities Exchange Act (“CEA”) as an introducing broker. Under Regulation 1.17, Cowen and Company is required to maintain net capital equal to or in excess of $45,000 or the amount of net capital required by SEA Rule 15c3-1, whichever is greater. Additionally, as an options clearing member of the Options Clearing Corporation ("OCC") under OCC Rule 302, Cowen and Company is required to maintain net capital equal to the greater of $2.0

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

million or 2% of aggregate debit items. At March 31, 2022, Cowen and Company had $397.2 million of net capital in excess of its minimum requirements under SEA Rule 15c3-1.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010. The Dodd-Frank Act contains provisions that require the registration of all swap dealers, major swap participants, security-based swap dealers, and/or major security-based swap participants. Cowen Financial Products, Ltd ("Cowen Financial Products") registered only with the SEC with an effective date of November 1, 2021 as a securities-based swap dealer and is not using models to compute its net capital. Under the rules there is a minimum net capital requirement for, among others, an entity that acts as a dealer in security-based swaps, which is the greater of $20 million or 2% of risk margin amount The risk margin amount means the sum of (i) the total initial margin required to be maintained by the SEC securities-based swaps dealer at each clearing agency with respect to securities-based swaps transactions cleared for securities-based swap customers and (ii) the total initial margin amount calculated by the SEC securities-based swaps dealer swaps dealer with respect to non-cleared securities-based swaps under SEC rules. At March 31, 2022, Cowen Financial Products had $16.7 million of net capital in excess of its minimum requirements under SEA Rule 18a-1.

Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the U.K. Financial Conduct Authority ("FCA"), as defined, and must exceed the minimum capital requirement set forth by the FCA. On 1 January 2022, the FCA adopted the Investment Firms Prudential Regime ("IFPR"). This is a new prudential regime which applies to MiFID investment firms authorized and regulated by the FCA in the UK. The IFPR refocuses prudential requirements and expectations away from the risks firms face, to also consider and look to manage the potential harm firms can pose to consumers and markets. Cowen International Ltd and Cowen Execution Ltd will both be designated as Class 2 firms under the new regime and will have a minimum capital requirement equal to the higher of; the Permanent minimum capital requirement, their respective Fixed Overhead requirement, and their Risk Responsive Computation ("K-factors").

Cowen Asia, a previously established entity, was re-registered with regulatory approval on May 17, 2019. Cowen Asia is subject to the financial resources requirements of the Securities and Futures Commission ("SFC") of Hong Kong. Financial Resources must exceed the Total Financial Resources requirement of the SFC.

As of March 31, 2022, the regulatory net capital, minimum net capital requirement and excess net capital of U.S. regulated broker dealers and swap dealer together with the equivalent of capital requirements and compliance information for foreign broker dealers registered with the FCA and the SFC are presented as follows:

Subsidiary	Net Capital		Minimum Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	406,557	$	9,343	$	397,214
ATM Execution	$	7,880	$	250	$	7,630
Westminster	$	19,521	$	250	$	19,271
Cowen Financial Products	$	36,658	$	20,000	$	16,658
Cowen International Ltd (a)	$	51,109	$	25,735	$	25,374
Cowen Execution Ltd (a)	$	17,900	$	5,075	$	12,825
Cowen Asia (a)	$	2,045	$	383	$	1,662

(a)The equivalent of Net Capital under FCA rules is referred as “capital resources” and under SFC rules is referred as “net liquid capital.” The equivalent of Minimum Net Capital Requirement under FCA rules is referred as “minimum capital resources requirement and under SFC rules is referred as “net liquid capital requirement."

Customer Protection

The Company's U.S. broker-dealers must also comply with the customer protection provisions under SEA Rule 15c3-3 which requires a computation of a reserve requirement for customer and maintenance of a deposit of cash or securities into a special reserve bank account for the exclusive benefit of customers; or claim an exemption pursuant to subparagraphs (k)(2)(i) or (k)(2)(ii) of that rule. Firms can rely on more than one exemption.

ATM Execution claims the (k)(2)(ii) exemption with regard to all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Westminster claims the (k)(2)(i) exemption with regard to customer transactions and balances that are cleared, settled and custodied in bank accounts designated as Special Accounts for the Exclusive Benefit of Customers ("Special Bank Accounts"). Westminster also claims exemption for other business activities that are not covered under (k)(2)(i) contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 for receiving transaction-based compensation in return for providing commission management services.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

In accordance with the requirements of SEA Rule 15c3-3, Cowen and Company may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of March 31, 2022, Cowen and Company had segregated approximately $51.8 million of cash to satisfy the customer reserve provision of SEA Rule 15c3-3.

As a clearing and carrying broker-dealer, Cowen and Company is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEA Rule 15c3-3. Cowen and Company conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEA Rule 15c3-3. This allows each correspondent firm that uses Cowen and Company as its clearing broker-dealer to classify its PAB account assets held at Cowen and Company as allowable assets in the correspondent's net capital calculation. At March 31, 2022, Cowen and Company had $71.7 million of cash on deposit in PAB Reserve Bank Accounts. Cowen and Company and ATM Execution also maintain certain assets in PAB accounts held at their respective clearing brokers. Each treats its assets held in those PAB accounts at the respective clearing brokers as allowable assets for net capital purposes.

Cowen Financial Products, as a registered securities based swap dealer, claims Rule 18a-4(f) exemption under the Securities Exchange Act of 1934 (the “Act”) with regard to its swap counterparties on the basis that it has provided sufficient notice to its swap counterparties of their respective rights to require segregation of funds or other property used to secure uncleared security based swaps pursuant to section 3E(f)(1)(A)-(B) of the Act (15 U.S.C. 78c-5(f)(1)(A)). Any margin collateral received and held by the security based swap dealer with respect to uncleared security based swaps will not be subject to a segregation requirement. The notice outlines how a claim of those swap counterparties for the collateral would be treated in a bankruptcy or other formal liquidation proceeding of the security-based swap dealer.

Other Regulatory Requirements

Cowen Insurance Co and Cowen Re are individually required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Malta and Luxembourg, respectively. Each company's individual solvency capital ratio calculated at the end of each quarter must exceed a minimum requirement. As of December 31, 2021, the last testing date for Cowen Re and Cowen Insurance Co, the solvency capital ratios of both Cowen Insurance Co and Cowen Re were in excess of the minimum requirements.

Based on minimum capital and surplus requirements pursuant to the laws of the state of New York that apply to captive insurance companies, RCG Insurance Company, Cowen's captive insurance company incorporated and licensed in the state of New York, was required to maintain capital and surplus of approximately $0.3 million as of March 31, 2022. RCG Insurance Company’s capital and surplus as of March 31, 2022 totaled $6.0 million.

25. Related Party Transactions

The Company and its affiliated entities are the managing member, general partner and/or investment manager to the Company's investment funds and certain managed accounts. Management fees and incentive income are primarily earned from affiliated entities. As of March 31, 2022 and December 31, 2021, $21.9 million and $16.6 million, respectively, included in fees receivable, are earned from related parties. The Company may, at its discretion, reimburse certain fees charged to the investment funds that it manages to avoid duplication of fees when such funds have an underlying investment in another affiliated investment fund. For the three months ended March 31, 2022 and 2021, the amounts which the Company reimbursed the investment funds it manages were immaterial. Fees receivable and fees payable are recorded at carrying value, which approximates fair value.

The Company may also make loans to employees or other affiliates, excluding executive officers of the Company. These loans are interest bearing and settle pursuant to the agreed-upon terms with such employees or affiliates, and are included in due from related parties in the accompanying condensed consolidated statements of financial condition. As of March 31, 2022 and December 31, 2021, loans to employees of $9.2 million and $8.8 million, respectively, were included in due from related parties on the accompanying condensed consolidated statements of financial condition. Of these amounts $3.8 million and $3.8 million, respectively, are related to forgivable loans. These forgivable loans provide for a cash payment up-front to employees, with the amount due back to the Company forgiven over a vesting period.  An employee that voluntarily ceases employment, or is terminated with cause, is generally required to pay back to the Company any unvested forgivable loans granted to them.  The forgivable loans are recorded as an asset to the Company on the date of grant and payment, and then amortized to compensation expense on a straight-line basis over the vesting period.  The vesting period on forgivable loans is generally one to three years. The Company recorded compensation expense of $0.8 million and $1.2 million for the three months ended March 31, 2022 and 2021, respectively. This expense is included in employee compensation and benefits in the accompanying condensed consolidated statements of operations. For the three months ended March 31, 2022 and 2021, the interest income was $0.1 million, for these related party loans and advances, and are included in interest and dividends in the accompanying condensed consolidated statements of operations.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The remaining balance included in due from related parties of $12.4 million and $22.6 million as of March 31, 2022 and December 31, 2021, respectively, relates to amounts due to the Company from affiliated investment funds and real estate entities due to expenses paid on their behalf.

Employees and certain other related parties invest on a discretionary basis within consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of March 31, 2022 and December 31, 2021, such investments aggregated $58.3 million and $53.9 million, respectively, were included in non-controlling interests on the accompanying condensed consolidated statements of financial condition. Their share of the net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds aggregated $10.3 million and $10.1 million for the three months ended March 31, 2022 and 2021, respectively.

The Company may, at times, have unfunded commitment amounts pertaining to related parties. See Note 22 for amounts committed as of March 31, 2022.

26. Guarantees and Off-Balance Sheet Arrangements

Guarantees

US GAAP requires the Company to disclose information about its obligations under certain guarantee arrangements. Those standards define guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying security (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Those standards also define guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others.

In the normal course of its operations, the Company enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Company's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote.

The Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including sub-custodians and third-party brokers, improperly execute transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make significant payments under these arrangements and has not recorded any contingent liability in the condensed consolidated financial statements for these indemnifications.

The Company also provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the accompanying condensed consolidated financial statements for these indemnifications.

The Company may maintain cash and cash equivalents at financial institutions in excess of federally insured limits. The Company has not experienced any material losses in such accounts and does not believe it is exposed to significant credit risks in relation to such accounts.

Off-Balance Sheet Arrangements

The Company has no material off-balance sheet arrangements, which have not been disclosed, as of March 31, 2022 and December 31, 2021. Through indemnification provisions in clearing agreements with clients, customer activities may expose the Company to off-balance-sheet credit risk. Pursuant to the clearing agreement, the Company is required to reimburse the Company's clearing broker, without limit, for any losses incurred due to a counterparty's failure to satisfy its contractual obligations. However, these transactions are collateralized by the underlying security, thereby reducing the associated risk to changes in the market value of the security through the settlement date.

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Cowen Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The Company's customer securities activities are transacted on a delivery versus payment, cash or margin basis. In delivery versus payment transactions, the Company is exposed to risk of loss in the event of the customers' or brokers' inability to meet the terms of their contracts.

In margin transactions, the Company extends credit to clients collateralized by cash and securities in their account. In the event the customers or brokers fail to satisfy their obligations, the Company may be required to purchase or sell securities at prevailing market prices in order to fulfill the obligations.

The Company's exposure to credit risk can be directly impacted by volatile securities markets, which may impair the ability of counterparties to satisfy their contractual obligations. The Company seeks to control its credit risk through a variety of reporting and control procedures, including establishing credit limits based upon a review of the customers' financial condition and credit ratings. The Company seeks to control the risk associated with its customer margin transactions by requiring customers to maintain margin collateral in compliance with various regulatory and internal guidelines. The Company also monitors required margin levels daily and, pursuant to its guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary.

In addition, during the normal course of business, the Company has exposure to a number of risks including market risk, currency risk, credit risk, operational risk, liquidity risk and legal risk. As part of the Company's risk management process, these risks are monitored on a regular basis throughout the course of the year.

The Company enters into secured and unsecured borrowing agreements to obtain funding necessary to cover daily securities settlements with clearing corporations. At times, funding is required for unsettled customer delivery versus payment and riskless principal transactions, as well as to meet deposit requirements with clearing organizations. Secured arrangements are collateralized by the securities. The Company maintains uncommitted financing arrangements with large financial institutions, the details of which are summarized below as of March 31, 2022.

Lender	Contractual Amount		Available Amount		Maturity Date	Description
Pledge Lines	(dollars in thousands)
BMO Harris Bank	$	75,000	$	75,000	None	Secured Tri-Party Pledge Facility
BMO Harris Bank	150,000		150,000		None	Secured Depository Trust Company Pledge Line
Total	225,000		225,000
Spike Line
BMO Harris Bank      Canadian Imperial Bank      of Commerce, in syndication	70,000		70,000		August 19, 2022	Unsecured committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements
Revolving Credit Facility
Morgan Stanley	25,000		25,000		March 24, 2026	Unsecured Corporate Revolver
Total Credit Lines	$	320,000	$	320,000

27. Subsequent Events

On April 21, 2022 the Board of Directors declared a quarterly cash dividend payable on its common stock of $0.12 per common share, payable on June 15, 2022, to stockholders of record on June 1, 2022.

The Company has evaluated events that have occurred after the balance sheet date but before the financial statements are issued and has determined that there were no other subsequent events requiring adjustment or disclosure in the condensed consolidated financial statements.

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Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

         The discussion contains forward-looking statements, which involve numerous risks and uncertainties, including, but not limited to, those described in the sections titled “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K") and in Item 1A of this Quarterly Report on Form 10-Q, many of which risks are currently elevated by, and may or will continue to be elevated by, the COVID-19 pandemic. This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the condensed consolidated financial statements and related notes of Cowen Inc. included elsewhere in this quarterly report. Actual results may differ materially from those contained in any forward-looking statements.

Overview

Cowen Inc., a Delaware corporation formed in 2009, is a diversified financial services firm that, together with its consolidated subsidiaries (collectively, "Cowen" or the "Company"), provides investment banking, research, sales and trading, prime brokerage, global clearing, securities financing, commission management services and investment management through its two business segments: the Operating Company ("Op Co") and the Asset Company ("Asset Co").

Operating Company

The Op Co segment consists of four divisions: the Cowen Investment Management ("CIM") division, the Investment Banking division, the Markets division (which includes sales and trading, prime brokerage, global clearing, securities financing and commission management services) and the Research division. The Company refers to the Investment Banking division, the Markets division and the Research division collectively as its investment banking businesses. Op Co's CIM division includes advisers to investment funds (including private equity structures and privately placed hedge funds), and registered funds. Op Co's investment banking businesses offer industry focused investment banking for growth-oriented companies including advisory and global capital markets origination, domain knowledge-driven research, sales and trading platforms for institutional investors, global clearing, commission management services and also a comprehensive suite of prime brokerage services.

The CIM division is the Company's investment management business, which operates primarily under the Cowen Investment Management name. CIM offers innovative investment products and solutions across the liquidity spectrum to institutional and private clients. The predecessor to this business was founded in 1994 and, through one of its subsidiaries, has been registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act") since 1997. The Company's investment management business offers investors access to a number of strategies to meet their specific needs including healthcare investing, sustainable investing, healthcare royalties, merger arbitrage and activism. A portion of the Company’s capital is invested alongside the Company's investment management clients. The Company has also invested capital in its insurance and reinsurance businesses.

Op Co's investment banking businesses include investment banking, research, sales and trading, prime brokerage, global clearing, securities financing and commission management services provided primarily to companies and institutional investor clients. Sectors covered by Op Co's investment banking business include healthcare, technology, media and telecommunications, consumer, industrials, tech-enabled and business services, and energy. We provide research and brokerage services to over 6,000 domestic and international clients seeking to trade securities and other financial instruments, principally in our sectors. The investment banking businesses also offer a full-service suite of introduced prime brokerage services targeting emerging private fund managers. Historically, we have focused our investment banking efforts on small to mid-capitalization public companies as well as private companies. From time to time, the Company invests in private capital raising transactions of its investment banking clients.

Asset Company

The Asset Co segment consists of the Company's private investments, private real estate investments and other legacy investment strategies. The focus of Asset Co is to drive future monetization of the invested capital of the segment.

Certain Factors Impacting Our Business

Our Company's businesses and results of operations are impacted by the following factors:

•Underwriting, private placement and strategic/financial advisory fees.  Our revenues from investment banking are directly linked to the underwriting fees we earn in equity and debt securities offerings in which the Company acts as an underwriter, private placement fees earned in non-underwritten transactions, sales commissions earned in at-the-market offerings and success fees earned in connection with advising both buyers and sellers, principally in mergers and acquisitions. As a result, the future performance of our investment banking business will depend on, among other things, our ability to secure lead manager and co-manager roles in clients' capital raising transactions as well as our ability to secure mandates as a client's strategic financial advisor.

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•Liquidity.  As a clearing broker-dealer in the U.S., we are subject to cash deposit requirements with clearing organizations, brokers and banks that may be large in relation to our total liquid assets.

•Equity research fees.  Equity research fees are paid to the Company for providing access to equity research. The Company also permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. Our ability to generate revenues relating to our equity research depends on the quality of our research and its relevance to our institutional customers and other clients.

•Principal transactions. Principal transactions revenue includes net trading gains and losses from the Company's market-making activities and net trading gains and losses on inventory and other Company positions. In certain cases, the Company provides liquidity to clients buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk.

•Commissions.  Our commission revenues depend for the most part on our customers' trading volumes and on the notional value of the non-U.S. securities traded by our customers.

•Investment performance.  Our revenues from incentive income and carried interest allocations are linked to the performance of the investment funds and accounts that we manage. Performance also affects assets under management because it influences investors' decisions to invest assets in, or withdraw assets from, the investment funds and accounts managed by us.

•Fee and allocation rates.  Our management fee revenues are linked to the management fee rates we charge as a percentage of contributed and invested capital. Our incentive income revenues are linked to the rates we charge as a percentage of performance-driven asset growth. Our incentive allocations are generally subject to "high-water marks," whereby incentive income is generally earned by us only to the extent that the net asset value of an investment fund at the end of a measurement period exceeds the highest net asset value as of the end of the earlier measurement period for which we earned incentive income. Our incentive allocations, in some cases, are subject to performance hurdles. Additionally, our revenues from management fees are directly linked to assets under management. Positive performance in our legacy funds increases assets under management which results in higher management fees.

•Investment performance of our own capital.  We invest our own capital and the performance of such invested capital affects our revenues.  Investment income in the investment bank business includes gains and losses generated by the capital the Company invests in private capital raising transactions of its investment banking clients.  Our revenues from investment income are linked to the performance of the underlying investments.

External Factors Impacting Our Business

Our financial performance is highly dependent on the environment in which our businesses operate. We believe a favorable business environment is characterized by many factors, including a stable geopolitical climate, transparent financial markets, low inflation, low interest rates, low unemployment, strong business profitability and high business and investor confidence. Unfavorable or uncertain economic or market conditions can be caused by declines in economic growth, business activity or investor or business confidence, limitations on the availability (or increases in the cost of) credit and capital, increases in inflation or interest rates, exchange rate volatility, unfavorable global asset allocation trends, outbreaks of hostilities or other geopolitical instability, such as the ongoing war in Ukraine, corporate, political or other scandals that reduce investor confidence in the capital markets, global health crisis, such as the ongoing COVID-19 pandemic, or a combination of these or other factors. Until the COVID-19 pandemic subsides, we could experience reduced levels in certain of our investment banking activities, reduced revenues from incentive income in our investment management business and reduced investment income. Our businesses and profitability have been and may continue to be adversely affected by market conditions in many ways, including the following:

•Our investment bank business has been, and may continue to be, adversely affected by market conditions. Increased competition continues to affect our investment banking and capital markets businesses. The same factors also affect trading volumes in secondary financial markets, which affect our brokerage business. Commission rates, market volatility, increased competition from larger financial firms and other factors also affect our brokerage revenues and may cause these revenues to vary from period to period.

•Our investment management business can be adversely affected by unanticipated levels of requested redemptions. We experienced significant levels of requested redemptions during the 2008 financial crisis and, while the environment for investing in investment management products has since improved, it is possible that we could intermittently experience redemptions above historical levels, regardless of investment fund performance.

•Our investment bank business focuses primarily on small to mid-capitalization and private companies in specific industry sectors. These sectors may experience growth or downturns independent of general economic and market conditions, or may face market conditions that are disproportionately better or worse than those impacting the economy and markets generally. In addition, increased government regulation has had, and may continue to have, a disproportionate effect on

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capital formation by smaller companies. Therefore, our investment bank business could be affected differently than overall market trends.

Our businesses, by their nature, do not produce predictable earnings. Our results in any period can be materially affected by conditions in global financial markets and economic conditions generally. We are also subject to various legal and regulatory actions that impact our business and financial results.

Recent Developments

On March 23, 2022, Cowen announced the public launch of the Company's digital asset division, Cowen Digital LLC. Based in Stamford, Connecticut, the new division offers full-service trade execution and custody solutions on a platform that provides institutional clients with secure and compliant access to the digital asset ecosystem. Custody solutions are provided through Cowen’s strategic partnership with Standard Custody & Trust, a subsidiary of PolySign Inc.

Basis of Presentation

The unaudited condensed consolidated financial statements of the Company in this Form 10-Q are prepared in accordance with US GAAP as promulgated by the Financial Accounting Standards Board ("FASB") through Accounting Standards Codification (the "Accounting Standards") as the source of authoritative accounting principles in the preparation of financial statements and include the accounts of the Company, its subsidiaries, and entities in which the Company has a controlling financial interest or a substantive, controlling general partner interest. All material intercompany transactions and balances have been eliminated in consolidation. Certain fund entities that are consolidated in the condensed consolidated financial statements, are not subject to these consolidation provisions with respect to their own investments pursuant to their specialized accounting.

The Company serves as the managing member/general partner and/or investment manager to affiliated fund entities which it sponsors and manages. Certain of these funds in which the Company has a substantive, controlling general partner interest are consolidated with the Company pursuant to US GAAP as described below (the "Consolidated Funds"). Consequently, the Company's condensed consolidated financial statements reflect the assets, liabilities, income and expenses of these funds on a gross basis. The ownership interests in these funds which are not owned by the Company are reflected as redeemable and non-redeemable non-controlling interests in consolidated subsidiaries in the condensed consolidated financial statements appearing elsewhere in this Form 10-Q. The management fees and incentive income earned by the Company from these funds are eliminated in consolidation.

Expenses

The Company's expenses consist of compensation and benefits, insurance and reinsurance costs, general, administrative and other, and Consolidated Funds expenses.

•Compensation and Benefits.  Compensation and benefits is comprised of salaries, benefits, discretionary cash bonuses and equity-based compensation. Annual incentive compensation is variable, and the amount paid is generally based on a combination of employees' performance, their contribution to their business segment, and the Company's performance. Generally, compensation and benefits comprise a significant portion of total expenses, with annual incentive compensation comprising a significant portion of total compensation and benefits expenses.

•Insurance and Reinsurance claims, commissions and amortization of deferred acquisition costs. Insurance and reinsurance-related expenses reflect loss and claim reserves, acquisition costs and other expenses incurred with respect to our insurance and reinsurance operations.

•Operating, General and Administrative.  General, administrative and other expenses are primarily related to professional services, occupancy and equipment, business development expenses, communications, expenses associated with our reinsurance business and other miscellaneous expenses. These expenses may also include certain one-time charges and non-cash expenses.

•Depreciation and Amortization.  Depreciation and amortization is comprised of depreciation expense for tangible assets and the amortization of intangible assets. The depreciation of assets capitalized under finance leases is included in depreciation and amortization expenses as well.

•Consolidated Funds Expenses.  The Company's condensed consolidated financial statements reflect the expenses of the Consolidated Funds and the portion attributable to other investors is allocated to a non-controlling interest.

Income Taxes

The taxable results of the Company’s U.S. operations are subject to U.S. federal, state and local taxation as a corporation. The Company is also subject to foreign taxation on income it generates in certain countries.

The Company records deferred tax assets and liabilities for the future tax benefit or expense that will result from differences between the carrying value of its assets for income tax purposes and for financial reporting purposes, as well as for operating or

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capital loss and tax credit carryovers. A valuation allowance is recorded to bring the net deferred tax assets to a level that, in management’s view, is more likely than not to be realized in the foreseeable future. This level will be estimated based on a number of factors, especially the amount of net deferred tax assets of the Company that are actually expected to be realized, for tax purposes, in the foreseeable future. Deferred tax liabilities that cannot be realized in a similar future time period and thus that cannot offset the Company’s deferred tax assets are not taken into account when calculating the Company’s net deferred tax assets.

Temporary Equity

Temporary equity consists of Redeemable 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock"). The Company has irrevocably elected to cash settle $1,000.00 of each conversion of any share of the Series A Convertible Preferred Stock. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company has classified the Series A Convertible Preferred Stock preferred stock in temporary equity.

Non-Redeemable Non-Controlling Interests

Non-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities. When non-controlling interest holders do not have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as a component of permanent equity. Ownership which has been classified in permanent equity are non-controlling interests for which the holder does not have the unilateral right to redeem its ownership interests.

Investment Fund Performance and Assets Under Management

For the three months ended March 31, 2022, the Company's activist strategy had marginally negative results but outperformed its benchmark while its merger arbitrage strategies had positive results. The Company's healthcare royalty strategy is now making allocations from the strategy's fourth fund. The Company’s healthcare investments strategy is now deploying capital from its fourth fund. Finally, our sustainable investing strategy is now deploying capital, with three investments made as of March 31, 2022. The liquidation of certain multi-strategy hedge funds advised by the Company also continues.

As of March 31, 2022, the Company had assets under management of $15.6 billion.

Strategy	Healthcare Investments	Healthcare Royalties	Activism	Merger Arbitrage	Sustainable Investments	Other (a)
	(dollars in millions)
AUM	$1,074	$3,556	$8,387	$311	$1,367	$884
Team
Private Equity	ü	ü			ü
Hedge Fund			ü	ü
Managed Account		ü	ü	ü	ü
UCITS				ü
Other						ü

(a) Other strategies include legacy funds and other private investment strategies.

The Company's Invested Capital

The Company invests a significant portion of its capital base to help drive results and facilitate the growth of the Op Co and Asset Co business segments. Within Op Co, management allocates capital to three primary investment categories: (i) broker-dealer capital and related trading strategies; (ii) liquid alternative trading strategies; and (iii) public and private healthcare strategies. Broker-dealer capital and related trading strategies include capital investments in the Company's broker-dealers as well as securities finance and special purpose acquisition company trading strategies to grow liquidity and returns within operating businesses.  Much of the Company's public and private healthcare strategies and liquid alternative trading strategies portfolios are invested alongside the Company's investment management clients. The Company's liquid alternative trading strategies include merger arbitrage and activist fund strategies. In addition, from time to time, the Company makes investments in private capital raising transactions of its investment banking clients.

The Company allocates capital to Asset Co's private investments. Asset Co's private investments include the Company's investment in Italian wireless broadband provider Linkem, private equity funds Formation8 and Eclipse and legacy real estate investments.

As of March 31, 2022, the Company's invested capital amounted to a net value of $842.8 million (supporting a long market value of $760.9 million), representing approximately 81% of Cowen's stockholders' equity presented in accordance with

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US GAAP. The table below presents the Company's invested equity capital by strategy and as a percentage of Cowen's stockholders' equity as of March 31, 2022. The total net values presented in the table below do not tie to Cowen's condensed consolidated statement of financial condition as of March 31, 2022 because they represent only some of the line items in the accompanying condensed consolidated statement of financial condition.

Strategy	Net Value		% of Stockholders' Equity
	(dollars in millions)
Op Co
Broker-dealer capital and related trading	$	613.5	59%
Public and Private Healthcare	28.1		3%
Liquid Alternative Trading	68.7		7%
Other	12.9		1%
Asset Co
Private Investments	119.6		12%
Total	842.8		81%
Cowen Inc. Stockholders' Equity	$	1,035.1

The allocations shown in the table above will change over time.

Results of Operations

To provide comparative information of the Company's operating results for the periods presented, a discussion of Economic Income (Loss) (which is a non-GAAP measure) of our Op Co and Asset Co segments follows the discussion of our total consolidated US GAAP results.

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Three Months Ended March 31, 2022 Compared with Three Months Ended March 31, 2021

	Condensed Consolidated Statements of Operations
	(unaudited)
	Three Months Ended March 31,				Period to Period
	2022		2021		$ Change		% Change
	(dollars in thousands)
Revenues
Investment banking	$	101,542	$	304,834	$	(203,292)	(67)	%
Brokerage	168,738		173,737		(4,999)		(3)	%
Investment income (loss)
Securities principal transactions, net	91,252		63,965		27,287		43	%
Portfolio fund principal transactions, net	(6,098)		15,403		(21,501)		(140)	%
Carried interest allocations	(17,067)		96,769		(113,836)		(118)	%
Total investment income (loss)	68,087		176,137		(108,050)		(61)	%
Management fees	16,769		25,742		(8,973)		(35)	%
Incentive income	633		2,258		(1,625)		(72)	%
Interest and dividends	46,335		59,388		(13,053)		(22)	%
Insurance and reinsurance premiums	11,321		7,117		4,204		59	%
Other revenues, net	(949)		1,660		(2,609)		(157)	%
Consolidated Funds revenues	(1,884)		(3,347)		1,463		44	%
Total revenues	410,592		747,526		(336,934)		(45)	%
Interest and dividends expense	46,524		57,641		(11,117)		(19)	%
Total net revenues	364,068		689,885		(325,817)		(47)	%
Expenses
Employee compensation and benefits	187,178		388,196		(201,018)		(52)	%
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs	7,343		6,455		888		14	%
Operating, general, administrative and other expenses	100,801		96,077		4,724		5	%
Depreciation and amortization expense	7,185		4,354		2,831		65	%
Consolidated Funds expenses	105		271		(166)		(61)	%
Total expenses	302,612		495,353		(192,741)		(39)	%
Other income (loss)
Net gains (losses) on other investments	5,580		12,645		(7,065)		(56)	%
Bargain purchase gain, net of tax	—		3,855		(3,855)		NM
Gain/(loss) on debt extinguishment	—		(4,538)		4,538		NM
Total other income (loss)	5,580		11,962		(6,382)		(53)	%
Income (loss) before income taxes	67,036		206,494		(139,458)		(68)	%
Income tax expense (benefit)	11,889		54,428		(42,539)		(78)	%
Net income (loss)	55,147		152,066		(96,919)		(64)	%
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131		4,562		15,569		341	%
Net income (loss) attributable to Cowen Inc.	35,016		147,504		(112,488)		(76)	%
Preferred stock dividends	1,698		1,698		—		—	%
Net income (loss) attributable to Cowen Inc. common stockholders	$	33,318	$	145,806	$	(112,488)	(77)	%

Revenues

Investment Banking

Investment banking revenues decreased $203.3 million to $101.5 million for the three months ended March 31, 2022 compared with $304.8 million in the prior year period. During the three months ended March 31, 2022, the Company completed six underwriting transactions, 19 strategic advisory transactions and eight debt capital markets transactions. During the three months ended March 31, 2021, the Company completed 62 underwriting transactions, 21 strategic advisory transactions and five debt capital markets transactions.

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Brokerage

Brokerage revenues decreased $5.0 million to $168.7 million for the three months ended March 31, 2022 compared with $173.7 million in the prior year period. This was attributable to a decrease in institutional brokerage, primarily special situations and electronic commissions. Customer trading volumes across the industry (according to Bloomberg) decreased 12% for the quarter ended March 31, 2022 compared to the prior year period.

Investment Income (loss)

Securities principal transactions, net

Securities principal transactions, net increased $27.3 million to $91.3 million for the three months ended March 31, 2022 compared with $64.0 million in the prior year period. The increase in securities principal transactions, net was primarily attributable to an increase in the value of our digital investments offset partially by a decrease in our healthcare and merchant banking investments. Additionally, first quarter 2022 also included $18 million from a mark-to-market unrealized gain on an interest rate swap used to offset interest on floating-rate debt. We subsequently realized this gain in early April.

Portfolio fund principal transactions, net

Portfolio fund investment income (loss) decreased $21.5 million to a loss of $6.1 million for the three months ended March 31, 2022 compared with an income of $15.4 million in the prior year period. The decrease is primarily related to public positions in our healthcare and sustainable fund investments and a decrease in our activist fund investments.

Carried interest allocations

Carried interest allocations decreased $113.9 million to a loss of $17.1 million for the three months ended March 31, 2022 compared with an income of $96.8 million in the prior year period. The primary driver of the decrease was a decrease in allocations from our healthcare and sustainable funds.

Management Fees

Management fees decreased $8.9 million to $16.8 million for the three months ended March 31, 2022 compared with $25.7 million in the prior year period. This decrease in management fees was primarily related to management fees earned from new investors entering the Cowen Sustainable funds in the first quarter of 2021 when, during the quarter, the fund had multiple capital raises offset partially by an increase in the Cowen Healthcare investments funds.

Incentive Income

Incentive income decreased $1.6 million to $0.6 million for the three months ended March 31, 2022. This decrease was primarily related to a decrease in performance fees from our Cowen Sustainable and Cowen Healthcare investment funds. Due to revenue recognition standards, effective January 1, 2018, the Company recognizes the majority of incentive income allocated to the Company as carried interest allocations, included in investment income (loss).

Interest and Dividends

Interest and dividends decreased $13.1 million to $46.3 million for the three months ended March 31, 2022 compared with $59.4 million in the prior year period. Interest and dividends amounts are primarily attributable to securities finance activity. The decrease in the securities finance activity is due to lower customer demand which has created less matched book opportunities for international securities.

Insurance and Reinsurance Premiums

Insurance and reinsurance premiums increased $4.2 million to $11.3 million for the three months ended March 31, 2022 compared with $7.1 million in the prior year period. This increase is driven by an increase in premiums (net of reinsurance) in both our insurance and reinsurance entities.

Other Revenues, net

Other revenues decreased $2.6 million to a loss of $0.9 million for the three months ended March 31, 2022 compared with an income of $1.7 million in the prior year period. This primarily related to foreign currency exchange rate fluctuations from our non-USD transactions.

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Consolidated Funds Revenues

Consolidated Funds revenues increased $1.4 million to a loss of $1.9 million for the three months ended March 31, 2022 compared with a loss of $3.3 million in the prior year period. The increase is due to the losses in the prior period related the Enterprise LP fund primarily driven by foreign revaluation of our Linkem investment. The amounts shown under Consolidated Funds reflect the consolidated total performance for such investment funds, and the portion of those gains or losses that are attributable to other investors is allocated to non-controlling interests.

Interest and Dividends Expense

Interest and dividends expense decreased $11.1 million to $46.5 million for the three months ended March 31, 2022 compared with $57.6 million in the prior year period. Interest and dividends amounts are primarily attributable to securities finance activities. There was a decrease in the securities finance activity due to lower customer demand which has created less matched book opportunities for international securities.

Expenses

Employee Compensation and Benefits

Employee compensation and benefits expenses decreased $201.0 million to $187.2 million for the three months ended March 31, 2022 compared with $388.2 million in the prior year period. The decrease is primarily due to $336.9 million lower total revenues as well as a decrease of $6.4 million in other income (loss) during 2022 as compared to 2021 and thus resulting in a lower compensation and benefits accrual. The compensation to revenue ratio, including other income (loss), was 45% for the three months ended March 31, 2022, compared with 51% in the prior year period.

Insurance and Reinsurance Claims and Commissions

Insurance and reinsurance-related expenses increased $0.8 million to $7.3 million for the three months ended March 31, 2022 compared with $6.5 million the prior year period. The net increase derives from the insurance entity.

Operating, General, Administrative and Other Expenses

Operating, general, administrative and other expenses increased $4.7 million to $100.8 million for the three months ended March 31, 2022 compared with $96.1 million in the prior year period. The increase is primarily related to fair market value adjustments to the contingent consideration liabilities for previous acquisitions offset only partially by lower floor brokerage and trade execution costs and underwriting fees due to lower brokerage and investment banking revenues.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased $2.8 million to $7.2 million for the three months ended March 31, 2022 compared with $4.4 million in the prior year period. The increase is primarily related to two acquisitions which closed during 2021.

Consolidated Funds Expenses

Consolidated Funds expenses decreased $0.2 million to $0.1 million for the three months ended March 31, 2022 compared with $0.3 million in the prior year period. During the first quarter of 2022, the Company deconsolidated Cowen Private Investments LP as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP due to the Company's ownership being diluted through a capital equalization event.The amounts shown under Consolidated Funds reflect the consolidated total performance for such investment funds, and the portion of those gains or losses that are attributable to other investors is allocated to non-controlling interests.

Other Income (Loss)

Other income (loss) decreased $6.4 million to $5.6 million for the three months ended March 31, 2022 compared with $12.0 million in the prior year period. The decrease in other income (loss), which primarily represents our equity method investments, was primarily attributable to a decrease in performance in our activist investments and also the bargain purchase gain on an acquisition from the first quarter of 2021, offset partially by a loss on debt extinguishment.

Income Taxes

Income tax expense decreased $42.5 million to $11.9 million for the three months ended March 31, 2022 compared with $54.4 million in the prior year period. This change is primarily attributable to the change in the Company’s income before income taxes for the respective periods.

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Net Income (Loss) Attributable to Non-controlling Interests

Net income (loss) attributable to non-controlling interests increased $15.5 million to $20.1 million for the three months ended March 31, 2022 compared with income of $4.6 million in the prior year period. The increase was primarily the result of gains in first quarter of 2022 related to higher valuation in the Company's digital investment. Non-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities.

Preferred Stock Dividends

On May 19, 2015, the Company completed its offering of 120,750 shares of the Company's 5.625% Series A cumulative perpetual convertible preferred stock. Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum. The Company may, at its option, pay dividends in cash, common stock or a combination thereof. The Company accrued $1.7 million preferred stock dividends for the periods ended March 31, 2022 and 2021, respectively.

Segment Analysis, Economic Income (Loss) and related components

Economic Income (Loss) and related components

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 Company’s 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 Company’s financials to help better inform their analysis of the Company’s performance.

These Non-GAAP financial measures are an integral part of the Company’s 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 Company’s business operations, growth opportunities and expense allocation decisions.

The Company’s 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 Company’s 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 Company’s 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 stock 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 Company’s 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 Company’s and its peers’ similar lines of businesses. For example, among others, within the Company’s 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 Company’s 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 Company’s investment management business performance is analyzed and reviewed by investors and analysts through investment income, incentive income and management fees. The

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presentation of Economic Proceeds, Net Economic Proceeds, Economic Expenses as well as their related components align with these and other examples of how the Company’s 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 Company’s US GAAP Compensation Expense.

Reconciliations to comparable US GAAP measures are presented along with the Company’s 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.

For a reconciliation of US GAAP net income (loss) to Pre-tax Economic Income (Loss), Economic Income (Loss) and Economic Operating Income (Loss) for the periods presented and additional information regarding the reconciling adjustments discussed above, see the following section "Reconciliation of US GAAP (Unaudited) to Non-GAAP Measures".

The Company conducts its operations through two segments: Op Co and Asset Co. The Company's principle sources of revenues included in Economic Income (Loss) are derived from activities in the following business segments. The Op Co and Asset Co segments do not conduct inter-segment transactions.

The Op Co segment generates revenue through several principal sources: investment banking revenue, brokerage revenue, management fees, incentive income, and investment income earned from the Company's own capital.

The Asset Co segment generates revenue through management fees, incentive income and investment income from the Company’s own capital.

Three Months Ended March 31, 2022 Compared with Three Months Ended March 31, 2021

Total Economic Operating Income (Loss) was $42.8 million for the three months ended March 31, 2022, a decrease of $102.7 million compared to Economic Operating Income (Loss) of $145.6 million in the prior year period. Total Economic Income (Loss) was $37.4 million for the three months ended March 31, 2022 compared to Economic Income (Loss) of $142.4 million in the prior year period. Total Pre-tax Economic Income (Loss) was $52.2 million for the three months ended March 31, 2022, a decrease of $144.6 million compared to Pre-tax Economic Income (Loss) of $196.8 million in the prior year period.

Economic Proceeds included in total Economic Income (Loss) were $331.6 million for the three months ended March 31, 2022, a decrease of $355.8 million compared to $687.4 million in the prior year period. This was primarily related to a decrease in investment banking, incentive fees and brokerage revenues.

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Operating Company Segment

Economic Proceeds

	Three Months Ended March 31,				Total Period-to-Period
	2022		2021		$ Change		% Change
	(dollars in thousands)
Economic Proceeds
Investment banking	$	98,697	$	293,488	$	(194,791)	(66)	%
Brokerage	197,856		221,848		(23,992)		(11)	%
Management fees	20,440		26,884		(6,444)		(24)	%
Incentive income (loss)	(12,797)		109,925		(122,722)		(112)	%
Investment income (loss)	22,226		31,918		(9,692)		(30)	%
Other income (loss) economic proceeds	3,819		1,164		2,655		228	%
Total: Economic Proceeds	330,241		685,227		(354,986)		(52)	%
Economic Interest Expense / (Income)	(8,509)		5,943		(14,452)		(243)	%
Net Economic Proceeds	$	338,750	$	679,284	$	(340,534)	(50)	%

Economic Proceeds The Op Co segment economic proceeds included in Economic Income (Loss) were $330.2 million for the three months ended March 31, 2022, a decrease of $355.0 million compared to $685.2 million in the prior year period.

Investment Banking Economic Proceeds decreased $194.8 million to $98.7 million for the three months ended March 31, 2022 compared with $293.5 million in the prior year period. During the three months ended March 31, 2022, the Company completed six underwriting transactions, 19 strategic advisory transactions and eight debt capital markets transactions. During the three months ended March 31, 2021, the Company completed 62 underwriting transactions, 21 strategic advisory transactions and five debt capital markets transactions.

Brokerage Economic Proceeds decreased $23.9 million to $197.9 million for the three months ended March 31, 2022, compared with $221.8 million in the prior year period. This was attributable to a decrease in institutional brokerage, primarily special situations and electronic commissions. Customer trading volumes across the industry (according to Bloomberg) decreased 12% for the quarter ended March 31, 2022 compared to the prior year period.

Management Fees Economic Proceeds for the segment decreased $6.5 million to $20.4 million for the three months ended March 31, 2022 compared with $26.9 million in the prior year period. This decrease in management fees was primarily related to management fees earned from new investors entering the Cowen Sustainable funds in the first quarter of 2021 when, during the quarter, the fund had multiple capital raises offset partially by an increase in the Cowen Healthcare investments funds.

Incentive Income (Loss) Economic Proceeds for the segment decreased $122.7 million to a loss of $12.8 million for the three months ended March 31, 2022 compared with income of $109.9 million in the prior year period. This decrease was primarily related to a decrease in performance fees from our Cowen Sustainable and Cowen Healthcare investment funds.

Investment Income (Loss) Economic Proceeds for the segment decreased $9.7 million to $22.2 million for the three months ended March 31, 2022 compared with $31.9 million in the prior year period. The decrease primarily relates to a decrease in performance investments across most of our strategies including healthcare, merchant banking and portfolio hedge offset partially with gains from our digital investments.

Other Income (Loss) Economic Proceeds for the segment increased $2.6 million to $3.8 million for the three months ended March 31, 2022 compared with income of $1.2 million in the prior year period. The change is driven by a $3.3 million increase in the insurance result and a $1.8 million gain on derivatives offset by a $2.5 million loss on foreign exchange.

Economic Interest Expenses / (Income) were $(8.5) million for the three months ended March 31, 2022, a decrease of $14.4 million compared with $5.9 million in the prior year period. First quarter 2022 interest expense / (income) included an $18 million unrealized gain from a mark-to-market adjustment on an interest rate swap used to offset interest on floating-rate debt.

Net Economic Proceeds were $338.8 million for the three months ended March 31, 2022, a decrease of $340.5 million compared with $679.3 million in the prior year period.

70

Economic Expenses

	Three Months Ended March 31,				Total Period-to-Period
	2022		2021		$ Change		% Change
Economic Expenses	(dollars in thousands)
Employee compensation and benefits	$	186,424	$	385,578	$	(199,154)	(52)	%
Non-Compensation Expense	93,792		89,415		4,377		5	%
Depreciation & Amortization	7,179		4,349		2,830		65	%
Non-Controlling Interest	1,013		1,467		(454)		(31)	%
Total: Economic Expenses	$	288,408	$	480,809	$	(192,401)	(40)	%

Economic Expenses were $288.4 million for the three months ended March 31, 2022, a decrease of $192.4 million compared with $480.8 million in the prior year period.

Economic Compensation Expenses were $186.4 million compared to $385.6 million in the prior year period. The decrease was due to lower revenues. The economic compensation-to-proceeds ratio increased to 56.5% compared to 56.3% in the prior year period.

Economic Non-compensation Expenses Fixed non-compensation expense increased $5.2 million to $40.9 million for the three months ended March 31, 2022 compared with $35.7 million in the prior year period. The increase primarily related to an increase in professional and advisory fees and communication costs. Variable non-compensation expenses which primarily are comprised of expenses that are incurred as a direct result of the processing and soliciting of revenue generating activities, decreased $0.8 million to $52.9 million for the three months ended March 31, 2022 compared with $53.7 million in the prior year period. The decrease is related to decreased brokerage and trade execution costs and decreased variable professional and advisory fees, which includes employment agency fees and legal fees directly related to revenues.

Economic Depreciation and Amortization Expenses increased to $7.2 million for the three months ended March 31, 2022 compared with $4.3 million in the prior year period. The increase is primarily related to two acquisitions which closed during 2021.

Economic Non-controlling interests decreased by $0.5 million to $1.0 million for the three months ended March 31, 2022 compared with $1.5 million in the prior year period. Non-controlling interest represents the portion of the net income or loss attributable to certain non-wholly owned subsidiaries that is allocated to our partners in those subsidiaries.

Economic Income and Economic Operating Income

	Three Months Ended March 31,				Total Period-to-Period
	2022		2021		$ Change		% Change
	(dollars in thousands)
Pre-tax Economic Income (Loss)	$	50,342	$	198,475	$	(148,133)	(75)	%
Economic income tax expense	12,585		53,191		(40,606)		(76)	%
Preferred stock dividends	1,460		1,426		34		2	%
Economic Income (Loss)	36,297		143,858		(107,561)		(75)	%
Add back: Depreciation and amortization expense, net of taxes	5,385		3,183		2,202		69	%
Economic Operating Income (Loss)	$	41,682	$	147,041	$	(105,359)	(72)	%

Preferred Stock Dividends. On May 19, 2015, the Company completed its offering of 120,750 shares of Series A Convertible Preferred Stock. Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum. The Company may, at its option, pay dividends in cash, common stock or a combination thereof.

71

Asset Co Segment

	Three Months Ended March 31,				Total Period-to-Period
	2022		2021		$ Change		% Change
Economic Proceeds	(dollars in thousands)
Brokerage	(62)		—		(62)		NM
Management fees	$	266	$	316	$	(50)	(16)	%
Incentive income (loss)	(215)		(1,214)		999		(82)	%
Investment income (loss)	1,407		3,090		(1,683)		54	%
Other income (loss) economic proceeds	1		(1)		2		(200)	%
Total: Economic Proceeds	1,397		2,191		(794)		(36)	%
Economic Interest Expense / (Income)	(1,417)		1,090		(2,507)		(230)	%
Net Economic Proceeds	$	2,814	$	1,101	$	1,713	156	%

Economic Proceeds The Asset Co segment proceeds included in Economic Income (Loss) were $1.4 million for the three months ended March 31, 2022, a decrease of $0.8 million compared with negative proceeds (due to losses) of $2.2 million in the prior year period.

Management Fees Economic Proceeds for the segment remained fairly flat at $0.3 million for the three months ended March 31, 2022 compared with the prior year period.

Incentive Income (Loss) Economic Proceeds for the segment increased $1.0 million to a loss of $0.2 million for the three months ended March 31, 2022 compared with a loss of $1.2 million in the prior year period. This increase was related to an increase in performance fees from the Company's multi-strategy business.

Investment Income (Loss) Economic Proceeds for the segment decreased $1.7 million to $1.4 million for the three months ended March 31, 2022, compared with income of $3.1 million in the prior year period. The decrease primarily to decreased performance of our multi-strategy funds.

Economic Interest Expenses / (Income) were $(1.4) million for the three months ended March 31, 2022, a decrease of $2.5 million compared with $1.1 million in the prior year period. First quarter 2022 interest expense included an allocation of a gain from a mark-to-market adjustment on an interest rate swap used to offset interest on floating-rate debt.

Net Economic Proceeds for the segment were proceeds of $2.8 million for the three months ended March 31, 2022, an increase of $1.7 million compared with $1.1 million in the prior year period.

Economic Expenses

	Three Months Ended March 31,				Total Period-to-Period
	2022		2021		$ Change		% Change
	(dollars in thousands)
Economic Expenses
Employee compensation and benefits	$	951	$	2,819	$	(1,868)	(66)	%
Non-Compensation Expense	6		(79)		85		(108)	%
Depreciation & Amortization	6		5		1		20	%
Total: Economic Expenses	$	963	$	2,745	$	(1,782)	(65)	%

Economic Expenses were $1.0 million for the three months ended March 31, 2022, a decrease of $1.7 million compared to $2.7 million in the prior year period.

Economic Compensation Expenses were $1.0 million for the three months ended March 31, 2022, a decrease of $1.8 million compared to $2.8 million in the prior year period. The decrease was due to lower total economic proceeds related to investment income (loss).

Economic Non-compensation Expenses Fixed non-compensation expense increased $0.1 million for the three months ended March 31, 2022 compared with the prior year period. The increase is primarily related to professional, advisory and other fees. Variable non-compensation expenses, which remained consistent for the three months ended March 31, 2022 compared with the prior year period, are comprised of expenses that are incurred as a direct result of the processing and soliciting of revenue generating activities.

72

Economic Depreciation and Amortization Expenses remained consistent for the three months ended March 31, 2022 compared to the prior year period and relates to costs allocated from general company assets.

Economic Income and Economic Operating Income

	Three Months Ended March 31,				Total Period-to-Period
	2022		2021		$ Change		% Change
	(dollars in thousands)
Pre-tax Economic Income (Loss)	$	1,851	$	(1,644)	$	3,495	(213)	%
Economic income tax expense	463		(440)		903		(205)	%
Preferred stock dividends	238		272		(34)		(13)	%
Economic Income (Loss)	1,150		(1,476)		2,626		(178)	%
Add back: Depreciation and amortization expense, net of taxes	5		3		2		67	%
Economic Operating Income (Loss)	$	1,155	$	(1,473)	$	2,628	(178)	%

Preferred Stock Dividends. On May 19, 2015, the Company completed its offering of 120,750 shares of Series A Convertible Preferred Stock. Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum. The Company may, at its option, pay dividends in cash, common stock or a combination thereof.

73

Reconciliation of US GAAP to Non-GAAP Measures for the three months ended March 31, 2022 and 2021

The following tables reconciles total US GAAP Revenues to total Economic Proceeds for the three months ended March 31, 2022 and 2021:

		(unaudited)
		Year Ended March 31, 2022
(Dollar amounts in thousands)		Investment Banking		Brokerage		Investment Income		Management Fees		Incentive Income		Interest and Dividends		Reinsurance Premiums		Other Revenues, net		Consolidated Funds Revenues		Other Income (Loss)		Total
Total US GAAP Revenues and Other Income (Loss)		$	101,542	$	168,738	$	68,087	$	16,769	$	633	$	46,335	$	11,321	$	(949)	$	(1,884)	$	5,580	$	416,172
Management Presentation Reclassifications:
Underwriting expenses	a	(259)		—		—		—		—		—		—		—		—		—		(259)
Reimbursable client expenses	b	(2,586)		—		—		—		—		—		—		(311)		—		—		(2,897)
Securities financing interest expense	c	—		(1,247)		—		—		—		(29,805)		—		—		—		—		(31,052)
Fund start-up costs, distribution and other fees	d	—		—		—		(371)		—		—		—		(678)		—		—		(1,049)
Certain equity method investments	e	—		—		—		4,256		3,592		—		—		—		—		(5,756)		2,092
Carried interest	f	—		—		17,067		—		(16,900)		—		—		—		—		—		167
Proprietary trading, interest and dividends	g	—		8,818		(62,084)		—		(337)		(5,882)		—		1,780		—		16,157		(41,548)
Insurance related activities expenses	h	—		—		—		—		—		—		(11,321)		3,978		—		—		(7,343)
Facilitation trading gains and losses	i	—		21,485		1,877		—		—		(10,648)		—		—		—		(15,981)		(3,267)
Total Management Presentation Reclassifications:		(2,845)		29,056		(43,140)		3,885		(13,645)		(46,335)		(11,321)		4,769		—		(5,580)		(85,156)
Fund Consolidated Reclassifications	l	—		—		(1,314)		52		—		—		—		—		1,884		—		622
Total Economic Proceeds		$	98,697	$	197,794	$	23,633	$	20,706	$	(13,012)	$	—	$	—	$	3,820	$	—	$	—	$	331,638

74

		(unaudited)
		Year Ended March 31, 2021
(Dollar amounts in thousands)		Investment Banking		Brokerage		Investment Income		Management Fees		Incentive Income		Interest and Dividends		Reinsurance Premiums		Other Revenues, net		Consolidated Funds Revenues		Other Income (Loss)		Total
Total US GAAP Revenues and Other Income (Loss)		$	304,834	$	173,737	$	176,137	$	25,742	$	2,258	$	59,388	$	7,117	$	1,660	$	(3,347)	$	11,962	$	759,488
Management Presentation Reclassifications:
Underwriting expenses	a	(6,915)		—		—		—		—		—		—		—		—		—		(6,915)
Reimbursable client expenses	b	(4,431)		—		—		—		—		—		—		(288)		—		—		(4,719)
Securities financing interest expense	c	—		1,435		—		—		—		(41,801)		—		—		—		—		(40,366)
Fund start-up costs, distribution and other fees	d	—		(157)		—		(4,074)		—		—		—		(637)		—		—		(4,868)
Certain equity method investments	e	—		—		—		3,480		9,643		—		—		—		—		(10,830)		2,293
Carried interest	f	—		—		(96,769)		—		97,039		—		—		—		—		—		270
Proprietary trading, interest and dividends	g	—		16,100		(32,726)		—		(326)		(4,096)		—		(234)		—		11,153		(10,129)
Insurance related activities expenses	h	—		—		—		—		—		—		(7,117)		662		—		—		(6,455)
Facilitation trading gains and losses	i	—		30,733		(8,967)		—		—		(13,491)		—		—		—		(12,968)		(4,693)
Total Management Presentation Reclassifications:		(11,346)		48,111		(138,462)		(594)		106,356		(59,388)		(7,117)		(497)		—		(12,645)		(75,582)
Fund Consolidated Reclassifications	l	—		—		(2,667)		2,052		97		—		—		—		3,347		—		2,829
Income Statement Adjustments:
Acquisition related amounts	n	—		—		—		—		—		—		—		—		—		(3,855)		(3,855)
Debt extinguishment loss	p	—		—		—		—		—		—		—		—		—		4,538		4,538
Total Income Statement Adjustments:		—		—		—		—		—		—		—		—		—		683		683
Total Economic Proceeds		$	293,488	$	221,848	$	35,008	$	27,200	$	108,711	$	—	$	—	$	1,163	$	—	$	—	$	687,418

75

The following table reconciles total US GAAP interest and dividends expense to total Economic Interest Expense for the three months ended March 31, 2022 and 2021:

		(unaudited)
			Year Ended March 31,
(Dollar amounts in thousands)			2022		2021
Total US GAAP Interest & Dividend Expense			$	46,524	$	57,641
Management Presentation Reclassifications:
Securities financing interest expense	c		(31,052)		(40,366)
Fund start-up costs, distribution and other fees	d		(895)		(538)
Proprietary trading gains and losses	g		(21,161)		(4,235)
Facilitation trading gains and losses	i		(3,267)		(4,693)
Total Management Presentation Reclassifications:			(56,375)		(49,832)
Income Statement Adjustments:
Amortization of discount/(premium) on debt	m		(75)		(776)
Total Income Statement Adjustments:			(75)		(776)
Total Economic Interest Expense			$	(9,926)	$	7,033

The following tables reconcile total US GAAP Expenses and non-controlling interests to total Economic Expenses for the three months ended March 31, 2022 and 2021:

		(unaudited)
		Year Ended March 31, 2022								Year Ended March 31, 2021
(Dollar amounts in thousands)		Employee Compensation and Benefits		Non-compensation US GAAP Expenses		Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds		Total		Employee Compensation and Benefits		Non-compensation US GAAP Expenses		Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds		Total
Total US GAAP		$	187,178	$	115,434	$	20,131	$	322,743	$	388,196	$	107,157	$	4,562	$	499,915
Management Presentation Reclassifications:
Underwriting expenses	a	—		(259)		—		(259)		—		(6,915)		—		(6,915)
Reimbursable client expenses	b	—		(2,897)		—		(2,897)		—		(4,719)		—		(4,719)
Fund start-up costs, distribution and other fees	d	—		(154)		—		(154)		—		(4,330)		—		(4,330)
Certain equity method investments	e	—		2,092		—		2,092		—		2,293		—		2,293
Carried interest	f	—		167		—		167		—		270		—		270
Proprietary trading, interest and dividends	g	—		471		(20,858)		(20,387)		—		1,768		(7,662)		(5,894)
Insurance related activities expenses	h	—		(7,343)		—		(7,343)		—		(6,455)		—		(6,455)
Associated partner/banker compensation	j	546		(546)		—		—		548		(548)		—		—
Management company non-Controlling interest	k	(349)		(664)		1,013		—		(347)		(1,120)		1,467		—
Total Management Presentation Reclassifications:		197		(9,133)		(19,845)		(28,781)		201		(19,756)		(6,195)		(25,750)
Fund Consolidated Reclassifications	l	—		(105)		727		622		—		(271)		3,100		2,829
Income Statement Adjustments:
Acquisition related amounts	n	—		(80)		—		(80)		—		(238)		—		(238)
Contingent liability adjustments	n	—		(5,133)		—		(5,133)		—		6,798		—		6,798
Total Income Statement Adjustments:		—		(5,213)		—		(5,213)		—		6,560		—		6,560
Total Economic Expenses		$	187,375	$	100,983	$	1,013	$	289,371	$	388,397	$	93,690	$	1,467	$	483,554

76

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) for the three months ended March 31, 2022 and 2021:

			(unaudited)
			Year Ended March 31,
(Dollar amounts in thousands)			2022		2021
US GAAP Net income (loss) attributable to Cowen Inc. common stockholders			$	33,318	$	145,806
	Income Statement Adjustments:
	US GAAP Income tax expense (benefit)	o	11,889		54,428
	Amortization of discount (premium) on debt	m	75		776
	Debt extinguishment gain (loss) and/or accelerated debt costs	p	—		4,538
	Bargain purchase gain	n	—		(3,855)
	Contingent liability adjustments	n	5,133		(6,798)
	Acquisition related amounts	n	80		238
	Preferred stock dividends	q	1,698		1,698
	Pre-tax Economic Income (Loss)		52,193		196,831
	Economic income tax expense		(13,048)		(52,751)
	Preferred stock dividends		(1,698)		(1,698)
	Economic Income (Loss)		$	37,447	$	142,382
	Add back: Depreciation and amortization expense, net of taxes		5,390		3,186
	Economic Operating Income (Loss)		$	42,837	$	145,568

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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.
b	Reimbursable client expenses: Economic Proceeds presents expenses reimbursed from clients and affiliates within their respective expense category but is included as a part of revenues under US GAAP.
c	Securities financing interest expense: Brokerage within Economic Proceeds included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP.
d	Fund start-up costs, distribution and other fees: Economic Proceeds and Economic Interest Expense are net of fund start-up costs and distribution fees paid to agents and other debt service costs.
e	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 method 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.
f	Carried interest: The Company applies an equity ownership model to carried interest which is recorded in Investment income - Carried interest allocation for US GAAP. The Company presents carried interest as Incentive Income Economic Proceeds.
g	Proprietary trading, interest and dividends: Economic Proceeds presents interest and dividends from the Company's proprietary trading in investment income.
h	Insurance related activities expenses: Economic Proceeds presents underwriting income from the Company's insurance and reinsurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting.
i	Facilitation trading gains and losses: Economic Brokerage Proceeds presents gains and losses on investments held as part of the Company's facilitation 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.
j	Associated partner/banker compensation reclassification: Economic Compensation Expense presents certain payments to associated banking partners as compensation rather than non-compensation expenses.
k	Management company non-controlling interest: Economic Expenses 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
l	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) 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 Adjustments
m	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 stock dividends.

78

Liquidity and Capital Resources

We continually monitor our liquidity position. The working capital needs of the Company's business have been met through current levels of equity capital, current cash and cash equivalents, and anticipated cash generated from our operating activities, including management fees, incentive income, returns on the Company's own capital, investment banking fees and brokerage commissions. The Company expects that its primary working capital liquidity needs over the next twelve months will be:

•to pay our operating expenses, primarily consisting of compensation and benefits, interest on debt and other general and administrative expenses; and

•to provide capital to facilitate the growth of our existing business.

Based on our historical results, management's experience, our current business strategy and current assets under management, the Company believes that its existing cash resources will be sufficient to meet its anticipated working capital and capital expenditure requirements for at least the next twelve months. However, the Company’s assessment could be affected by various risks and uncertainties, including but not limited to, the effects of the COVID-19 pandemic. Our cash reserves include cash, cash equivalents and assets readily convertible into cash such as our securities held in inventory. Securities inventories are stated at fair value and are generally readily marketable. As of March 31, 2022, we had cash and cash equivalents of $513.0 million and net liquid investment assets of $1.1 billion, which includes cash and cash equivalents and short-term investments held by foreign subsidiaries as of March 31, 2022 of $114.2 million. The Company continues to permanently reinvest the capital and accumulated earnings of its subsidiaries in the United Kingdom, Malta, Germany, Switzerland, Israel, Canada, and Hong Kong.

The timing of cash bonus payments to our employees may significantly affect our cash position and liquidity from period to period. While our employees are generally paid salaries semi-monthly during the year, cash bonus payments, which can make up a significant portion of total compensation, are generally paid by March 15th.

As a clearing member firm providing services to certain of our brokerage customers, we are subject to cash deposit requirements with clearing organizations, brokers and banks that may be large in relation to total liquid assets and may fluctuate significantly based upon the nature and size of customers' trading activity and market volatility. At March 31, 2022, the Company had security deposits totaling $105.9 million with clearing organizations in the U.S. for the settlement of equity trades. In the normal course of our U.S. settlement activities, we may also need to temporarily finance customer securities positions from short settlements or delivery failures.

The Company may incur additional indebtedness or raise additional capital under certain circumstances to respond to market opportunities and challenges. Current market conditions may make it more difficult or costly to borrow additional funds or raise additional capital.

Unfunded commitments

The following table summarizes unfunded commitments as of March 31, 2022:

Entity	Unfunded Commitments		Commitment term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	6,451	2.8 years
Eclipse Ventures Fund I, L.P.	$	28	2.8 years
Eclipse Fund II, L.P.	$	18	3.8 years
Eclipse Continuity Fund I, L.P.	$	16	4.8 years
Cowen Healthcare Investments III LP	$	2,165	4.8 years
Cowen Healthcare Investments IV LP	$	5,784	5.8 years
Cowen Sustainable Investments I LP	$	14,643	7.8 years

(a) The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners.

Due to the nature of the securities business and our role as a market-maker and execution agent, the amount of our cash and short-term investments, as well as operating cash flow, may vary considerably due to a number of factors, including the dollar value of our positions as principal, whether we are net buyers or sellers of securities, the dollar volume of executions by our customers and clearinghouse requirements, among others. Certain regulatory requirements constrain the use of a portion of our liquid assets for financing, investing or operating activities. Similarly, due to the nature of our business lines, the capital necessary to maintain current operations and our current funding needs subject our cash and cash equivalents to different requirements and uses.

79

Preferred Stock and Purchase of Capped Call Option

On May 19, 2015, the Company completed its offering of 120,750 shares of Series A Convertible Preferred Stock that provided $117.2 million of proceeds, net of underwriting fees and issuance costs of $3.6 million. Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum, which will be payable, when and if declared by the board of directors of the Company, quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Company may, at its option, pay dividends in cash, common stock or a combination thereof. The Company declared and paid a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million for the three months ended March 31, 2022. The Company declared and accrued a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million for the three months ended March 31, 2021

Each share of Series A Convertible Preferred Stock is non-voting and has a liquidity preference over the Company's Class A common stock and ranks senior to all classes or series of the Company's Class A common stock, but junior to all of the Company's existing and future indebtedness with respect to dividend rights and rights upon the Company's involuntary liquidation, dissolution or winding down.

Upon issuance, each share of Series A Convertible Preferred Stock was convertible, at the option of the holder, into a number of shares of the Company's Class A common stock equal to the liquidation preference of $1,000 divided by the conversion rate. The initial conversion rate (subsequent to the December 5, 2016 reverse stock split) is 38.0619 shares (which equates to $26.27 per share) of the Company's Class A common stock for each share of the Series A Convertible Preferred Stock. At any time on or after May 20, 2020, when the Company's capped call option expired, the Company was able to elect to convert all outstanding shares of the Series A Convertible Preferred Stock into shares of the Company's Class A common stock, cash or a combination thereof, at the Company's election, in each case, based on the then-applicable conversion rate, if the last reported sale price of the Company's Class A common stock equals or exceeds 150% of the then-current conversion price on at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days (including on the last trading day of such period) immediately prior to such election. At the time of conversion, the conversion rate may be adjusted based on certain events, including but not limited to the issuance of cash dividends or Class A common stock as dividends to the Company's Class A common shareholders or a share split or combination.

On December 31, 2021, the Company irrevocably elected that, upon the conversion of any share of the outstanding Series A Convertible Preferred Stock, the Company will settle $1,000.00 of its conversion obligation in cash. With respect to each conversion, to the extent the conversion obligation per share of Series A Convertible Preferred Stock is greater than $1,000.00, the Company may satisfy its conversion obligation in respect of such excess using any settlement method permitted under the Certificate of Designations. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company reclassified the Series A Convertible Preferred Stock to temporary equity at December 31, 2021.

Regulation

Regulatory Capital

As registered broker-dealers with the United States Securities and Exchange Commission ("SEC"), Cowen and Company, ATM Execution and Westminster are subject to the Uniform Net Capital Rule 15c3-1, "SEA Rule 15c3-1," under the Securities Exchange Act ("SEA") of 1934, which requires the maintenance of minimum net capital. Each registered broker-dealer has elected to compute net capital under the alternative method permitted by that rule.

The Company acquired Portico, a registered broker-dealer on December 16, 2021. As a result of the acquisition, Portico's net assets were transferred into Cowen and Company. The Company applied to withdraw Portico's status as a FINRA registered broker-dealer on December 20, 2021 which was approved by the SEC on February 18, 2022.

Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEA Rule 15c3-1, is equal to the greater of $1.5 million or 2% of aggregate debits arising from customer transactions. ATM Execution, and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEA Rule 15c3-1, equal to the greater of $250,000 or 2% of aggregate debits arising from customer transactions. Advances to affiliates, repayment of borrowings, distributions, dividend payments, and other equity withdrawals are subject to certain notification and other provisions of SEA Rule 15c3-1 and other regulatory bodies.

Cowen and Company is also subject to certain net capital rule requirements under the Regulation 1.17 of the Commodity Futures Trading Commission ("CFTC") under Commodities Exchange Act (“CEA”) as an introducing broker. Under Regulation 1.17, Cowen and Company is required to maintain net capital equal to or in excess of $45,000 or the amount of net capital required by SEA Rule 15c3-1, whichever is greater. Additionally, as an options clearing member of the Options Clearing Corporation ("OCC") under OCC Rule 302, Cowen and Company is required to maintain net capital equal to the greater of $2.0

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million or 2% of aggregate debit items. At March 31, 2022, Cowen and Company had $397.2 million of net capital in excess of its minimum requirements under SEA Rule 15c3-1.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010. The Dodd-Frank Act contains provisions that require the registration of all swap dealers, major swap participants, security-based swap dealers, and/or major security-based swap participants. Cowen Financial Products, Ltd ("Cowen Financial Products") registered only with the SEC with an effective date of November 1, 2021 as a securities-based swap dealer and is not using models to compute its net capital. Under the rules there is a minimum net capital requirement for, among others, an entity that acts as a dealer in security-based swaps, which is the greater of $20 million or 2% of risk margin amount The risk margin amount means the sum of (i) the total initial margin required to be maintained by the SEC securities-based swaps dealer at each clearing agency with respect to securities-based swaps transactions cleared for securities-based swap customers and (ii) the total initial margin amount calculated by the SEC securities-based swaps dealer swaps dealer with respect to non-cleared securities-based swaps under SEC rules. At March 31, 2022, Cowen Financial Products had $16.7 million of net capital in excess of its minimum requirements under SEA Rule 18a-1.

Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the U.K. Financial Conduct Authority ("FCA"), as defined, and must exceed the minimum capital requirement set forth by the FCA. On 1 January 2022, the FCA adopted the Investment Firms Prudential Regime ("IFPR"). This is a new prudential regime which applies to MiFID investment firms authorized and regulated by the FCA in the UK. The IFPR refocuses prudential requirements and expectations away from the risks firms face, to also consider and look to manage the potential harm firms can pose to consumers and markets. Cowen International Ltd and Cowen Execution Ltd will both be designated as Class 2 firms under the new regime and will have a minimum capital requirement equal to the higher of; the Permanent minimum capital requirement, their respective Fixed Overhead requirement, and their Risk Responsive Computation ("K-factors").

Cowen Asia, a previously established entity, was re-registered with regulatory approval on May 17, 2019. Cowen Asia is subject to the financial resources requirements of the Securities and Futures Commission ("SFC") of Hong Kong. Financial Resources must exceed the Total Financial Resources requirement of the SFC.

As of March 31, 2022, the regulatory net capital, minimum net capital requirement and excess net capital of U.S. regulated broker dealers and swap dealer together with the equivalent of capital requirements and compliance information for foreign broker dealers registered with the FCA and the SFC are presented as follows:

Subsidiary	Net Capital (a)		Net Capital Requirement (b)		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	406,557	$	9,343	$	397,214
ATM Execution	$	7,880	$	250	$	7,630
Westminster	$	19,521	$	250	$	19,271
Cowen Financial Products	$	36,658	$	20,000	$	16,658
Cowen International Ltd (a)	$	51,109	$	25,735	$	25,374
Cowen Execution Ltd (a)	$	17,900	$	5,075	$	12,825
Cowen Asia (a)	$	2,045	$	383	$	1,662

(a)The equivalent of Net Capital under FCA rules is referred as “capital resources” and under SFC rules is referred as “net liquid capital.” The equivalent of Minimum Net Capital Requirement under FCA rules is referred as “minimum capital resources requirement and under SFC rules is referred as “net liquid capital requirement."

Customer Protection

The Company's U.S. broker-dealers must also comply with the customer protection provisions under SEA Rule 15c3-3 which requires a computation of a reserve requirement for customer and maintenance of a deposit of cash or securities into a special reserve bank account for the exclusive benefit of customers; or claim an exemption pursuant to subparagraphs (k)(2)(i) or (k)(2)(ii) of that rule. Firms can rely on more than one exemption.

ATM Execution claims the (k)(2)(ii) exemption with regard to all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Westminster claims the (k)(2)(i) exemption with regard to customer transactions and balances that are cleared, settled and custodied in bank accounts designated as Special Accounts for the Exclusive Benefit of Customers ("Special Bank Accounts"). Westminster also claims exemption for other business activities that are not covered under (k)(2)(i) contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 for receiving transaction-based compensation in return for providing commission management services.

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In accordance with the requirements of SEA Rule 15c3-3, Cowen and Company may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of March 31, 2022, Cowen and Company had segregated approximately $51.8 million of cash to satisfy the customer reserve provision of SEA Rule 15c3-3.

As a clearing and carrying broker-dealer, Cowen and Company is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEA Rule 15c3-3. Cowen and Company conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEA Rule 15c3-3. This allows each correspondent firm that uses Cowen and Company as its clearing broker-dealer to classify its PAB account assets held at Cowen and Company as allowable assets in the correspondent's net capital calculation. At March 31, 2022, Cowen and Company had $71.7 million of cash on deposit in PAB Reserve Bank Accounts. Cowen and Company and ATM Execution also maintain certain assets in PAB accounts held at their respective clearing brokers. Each treats its assets held in those PAB accounts at the respective clearing brokers as allowable assets for net capital purposes.

Cowen Financial Products, as a registered securities based swap dealer, claims Rule 18a-4(f) exemption under the Securities Exchange Act of 1934 (the “Act”) with regard to its swap counterparties on the basis that it has provided sufficient notice to its swap counterparties of their respective rights to require segregation of funds or other property used to secure uncleared security based swaps pursuant to section 3E(f)(1)(A)-(B) of the Act (15 U.S.C. 78c-5(f)(1)(A)). Any margin collateral received and held by the security based swap dealer with respect to uncleared security based swaps will not be subject to a segregation requirement. The notice outlines how a claim of those swap counterparties for the collateral would be treated in a bankruptcy or other formal liquidation proceeding of the security-based swap dealer.

Other Regulatory Requirements

Cowen Insurance Co and Cowen Re are individually required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Malta and Luxembourg, respectively. Each company's individual solvency capital ratio calculated at the end of each quarter must exceed a minimum requirement. As of December 31, 2021, the last testing date for Cowen Re and Cowen Insurance Co, the solvency capital ratios of both Cowen Insurance Co and Cowen Re were in excess of the minimum requirements.

Based on minimum capital and surplus requirements pursuant to the laws of the state of New York that apply to captive insurance companies, RCG Insurance Company, Cowen's captive insurance company incorporated and licensed in the state of New York, was required to maintain capital and surplus of approximately $0.3 million as of March 31, 2022. RCG Insurance Company’s capital and surplus as of March 31, 2022 totaled $6.0 million.

Cash Flows Analysis

The Company's primary sources of cash are derived from its operating activities, realized returns on its own invested capital and borrowings on debt. The Company's primary uses of cash include compensation and general and administrative expenses.

Operating Activities.    Net cash used in operating activities of $309.1 million for the three months ended March 31, 2022 was primarily related to (i) a decrease in compensation payable, (ii) a decrease in purchases of securities owned, at fair value only partially offset by an increase in proceeds from sales of securities owned, at fair value, (iii) a decrease in securities sold, but not yet purchased, at fair value, held at broker dealer only partially offset by an increase in securities loaned and securities sold under agreement to repurchase and (iv) decrease in payable to customers. Net cash provided by operating activities of $363.1 million for the three months ended March 31, 2021 was primarily related to (i) an increase in stock loan, (ii) an increase in payable to customers and (iii) net income only partially offset by a decrease in securities owned, at fair value, held at broker dealer.

Investing Activities.    Net cash used in investing activities of $20.4 million for the three months ended March 31, 2022 was primarily related to securities purchased under agreement to resell. Net cash provided by investing activities of $2.8 million for the three months ended March 31, 2021 was primarily related to the proceeds from sales of other investments offset only partially by purchases of other investments.

Financing Activities.    Net cash used in financing activities for the three months ended March 31, 2022 of $40.5 million was primarily related to (i) purchase of treasury stock (net of re-issue), (ii) decrease in contingent liability and (iii) decrease in capital distributions to non-controlling interests. Net cash provided by financing activities for the three months ended March 31, 2021 of $125.9 million was primarily related to an (i) increase in borrowings on notes and other debt offset by decrease in repayments on notes and other debt.

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Debt

Convertible Debt

December 2022 Convertible Notes

The Company, on December 14, 2017, issued $135.0 million aggregate principal amount of 3.00% convertible senior notes due December 2022 (the “December 2022 Convertible Notes”). The December 2022 Convertible Notes have a final maturity date of December 15, 2022 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such date. The interest on the December 2022 Convertible Notes is payable semi-annually on December 15 and June 15 of each year. The December 2022 Convertible Notes are senior unsecured obligations of Cowen. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock. Pursuant to the indenture governing the December 2022 Convertible Notes, conversions of the December 2022 Convertible Notes will be settled by the delivery and/or payment, as the case may be, of Cowen’s Class A Common Stock, cash, or a combination thereof, at the Company's election.

The Company recognized the embedded cash conversion option at issuance date fair value, which also represents the initial unamortized discount on the December 2022 Convertible Notes of $23.4 million and is shown net in convertible debt in the accompanying condensed consolidated statements of financial condition. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity.

During December 2020, the Company repurchased and extinguished $46.9 million of the outstanding principal amount of the December 2022 Convertible Notes for cash consideration of $70.5 million. In conjunction with the partial extinguishment of the December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $3.6 million and capitalized debt issuance costs of $0.4 million. The Company allocated $29.6 million of the cash consideration paid to the extinguishment of the equity component of the December 2022 Convertible Notes. The Company recognized $2.7 million of gain on debt extinguishment.

On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes, and provided holders the option to elect to settle the as-converted value of the December 2022 Convertible Notes as allowed under the terms of the December 2022 Convertible Notes. As a result of the Company’s call for redemption of the December 2022 Convertible Notes, the December 2022 Convertible Notes were convertible, at the option of the holder at any time prior to June 22, 2021, the second business day prior to the December 2022 Convertible Notes' Redemption Date. On June 24, 2021 (the "Redemption Date") the Company redeemed all of the outstanding principal amount of the December 2022 Convertible Notes. The redemption amount was determined based on the holders election to convert, which allowed for either 100.00% of the principal amount thereof plus accrued and unpaid interest on such principal amount up to June 15, 2021, to, but not including the Redemption Date of the December 2022 Convertible Notes, or the value of the Company's Class A common stock to be issued on conversion. The settlement method for the December 2022 Convertible Notes was $88.1 million in cash, (the outstanding principal amount of the December 2022 Convertible Notes) and 2,938,841 shares of the Company’s Class A common stock, (the remainder of the conversion obligation in excess of the principal amount). The conversion rate on the December 2022 Convertible Notes on the Redemption Date was 33.35 shares of the Company’s Class A common stock per $1,000.00 principal amount of December 2022 Convertible Notes converted. In conjunction with the redemption of the remaining December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $5.1 million and capitalized debt issuance costs of $0.5 million.

Amortization on the discount, included within interest and dividends expense in the accompanying condensed consolidated statements of operations is $0.8 million for the three months ended March 31, 2021, based on an effective interest rate of 7.13%. The Company capitalized the debt issuance costs in the amount of $2.2 million, which is a direct deduction from the carrying value of the debt and was amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations. The Company recorded interest expense of $0.7 million for the three months ended March 31, 2021.

Notes Payable

May 2024 Notes

On May 7, 2019, the Company completed its private placement of $53.0 million aggregate principal amount of 7.25% senior notes due May 2024 (the "May 2024 Notes") with certain institutional investors. On September 30, 2019, the Company issued an additional $25.0 million of the same series of notes. The additional May 2024 Notes were purchased at a premium of $0.5 million, which is shown net in notes payable in the accompanying condensed consolidated statement of financial condition. To date the May 2024 Notes have maintained their initial private rating. Interest on the May 2024 Notes is payable semi-annually in arrears

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on May 6 and November 6. The Company recorded interest expense of $1.4 million and $1.4 million for the three months ended March 31, 2022 and 2021, respectively. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in September 2019, which is a direct deduction from the carrying value of the debt and will be amortized over the life of the May 2024 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations.

June 2033 Notes

On June 11, 2018, the Company completed its public offering of $90.0 million of 7.75% senior notes due June 2033 (the "June 2033 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $10.0 million principal amount of the June 2033 Notes. Interest on the June 2033 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $1.9 million and $1.9 million for the three months ended March 31, 2022 and 2021, respectively. The Company capitalized debt issuance costs of approximately $3.6 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the June 2033 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations.

December 2027 Notes

On December 8, 2017, the Company completed its public offering of $120.0 million of 7.35% senior notes due December 2027 (the "December 2027 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $18.0 million principal amount of the December 2027 Notes. Interest on the December 2027 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $2.5 million for three months ended March 31 2021. The Company capitalized debt issuance costs of approximately $5.0 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the December 2027 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses payable by the Company were used to redeem all of its 8.25% senior notes due October 2021 and for general corporate purposes.

On March 24, 2021, the Company delivered payment of and discharged all $138.0 million outstanding aggregate principal of the December 2027 Notes plus accrued and unpaid interest through the effective redemption date of April 23, 2021. In conjunction with the extinguishment of the December 2027 Notes , the Company accelerated the pro-rata capitalized debt issuance costs. During the three months ended March 31, 2021, the Company recognized $4.4 million of loss on debt extinguishment.

Term Loan

March 2028 Term Loan

On March 24, 2021, the Company borrowed $300 million of first lien term loan due March 24, 2028. On December 15, 2021, the Company borrowed an additional $150 million first lien term loan under the same terms and conditions as, and fungible with, the initial first lien term loan (collectively, the “March 2028 Term Loan”). The aggregate amount borrowed under the March 2028 Term Loan is $450 million. The March 2028 Term Loan bears interest at an annual rate equal to, at the option of the Company, either the (a) London Inter-bank Offered Rate ("LIBOR") (adjusted for reserves and subject to a floor of 0.75%) plus a margin of 3.25% or (b) an alternate base rate plus a margin of 2.25%. The Company is required to pay amortization of approximately 1.00% per annum of the original principal amount of the March 2028 Term Loan. Additionally, the Company has entered into an interest rate swap to offset the floating interest rate of the March 2028 Term Loan (See Note 6). The obligations of the Company for the March 2028 Term Loan are guaranteed by certain of the Company’s wholly-owned domestic subsidiaries (excluding its broker-dealer subsidiaries) (the “Guarantors”) and secured by substantially all of the assets of the Company and the Guarantors, subject in each case to certain customary exceptions. The terms of the March 2028 Term Loan contain customary affirmative and negative covenants, subject to certain customary exceptions, thresholds, qualifications and “baskets”. Proceeds from the March 2028 Term Loan were used to (i) satisfy and discharge and redeem the Company’s 2027 Senior Notes, (ii) redeem the Company’s December 2022 Convertible Notes that remained outstanding as of March 31, 2021 and pay the cash settlement amount in connection with the conversion of December 2022 Convertible Notes prior to that redemption date, and (iii) for the payment of fees, commissions, premiums, expenses and other transaction costs (including original issue discount or upfront fees) payable in connection with the transactions related thereto. As of March 31, 2022, the outstanding principal amount of the March 2028 Term Loan was $445.5 million.

Interest expense for the March 2028 Term Loan was $4.5 million and $0.2 million for the three months ended March 31, 2022 and 2021, based on an effective interest rate of 4.46%. In March 2021, the Company capitalized debt issuance costs of approximately $6.6 million and initial unamortized discount of $1.5 million related to the March 2028 Term Loan which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying condensed consolidated statements of operations. In December 2021, the Company

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capitalized debt issuance costs of approximately $2.7 million and unamortized discount of $1.5 million related to the additional borrowing of $150 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying condensed consolidated statements of operations.

The U.K. Financial Conduct Authority, which regulates LIBOR, has announced that all US Dollar LIBOR settings will either cease to be provided by any administrator or no longer be representative as of June 30, 2023. As the March 2028 Term Loan represents the Company’s only significant exposure to LIBOR as of March 31, 2022, the transition to an alternative Inter-bank Offer Rate is not expected to have a material impact on Company's consolidated financial statements.

Other Notes Payable

During January 2022, the Company borrowed $4.0 million to fund insurance premium payments. This note had an effective interest rate of 2.01% and was due in December 2022, with monthly payment requirements of $0.4 million. As of March 31, 2022, the outstanding balance note was $3.2 million. Interest expense for the three months ended March 31, 2022 was insignificant.

On September 30, 2020, the Company borrowed $72.0 million from Purple Protected Asset S-81 ("PPA S-81"), a Luxembourg entity unrelated to Cowen. The Company repaid $60.0 million of the PPA S-81 loan in June 2021. The loan is payable on September 30, 2023, had an initial interest rate of 1.4 times the Secured Overnight Financing Rate ("SOFR") plus 6.07% until December 31, 2020 and 1.4 times the SOFR plus 5.8% until June 30, 2021 and 3.65 times the SOFR plus 4.0% thereafter with quarterly interest payments. The loan obligation, as well as a loan issued by The Military Mutual Ltd (a United Kingdom company unrelated to Cowen) with principal of $28.4 million that was sold by Cowen Re to PPA S-81 at fair value for no gain or loss on September 30, 2020, are fully cash collateralized through a reinsurance policy provided by Cowen Re which is reflected in cash collateral pledged in the condensed consolidated statements of financial condition as of December 31, 2020 (see Notes 4 and 18). The Company capitalized debt issuance costs of approximately $1.7 million which is a direct deduction from the carrying value of the loan and will be amortized over the life of the loan in interest and dividends expense shown in the accompanying condensed consolidated statements of operations. The Company recorded interest expense of $0.5 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively, related to its loan payable to PPA S-81.

During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note had an effective interest rate of 6% and is due in November 2024, with monthly payment requirements of $0.1 million. As of March 31, 2022, the outstanding balance on this note was $1.5 million. Interest expense for the three months ended March 31, 2022 and 2021 was insignificant.

Finance Lease Obligations

The Company has entered into various finance leases for computer equipment. These finance lease obligations are included in notes payable and other debt in the accompanying condensed consolidated statements of financial condition.

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's finance lease obligations reflected in the accompanying condensed consolidated statements of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	324		$	309
Interest on lease liabilities	20			34
Weighted average remaining lease term - operating leases (in years)	1.63			2.01
Weighted average discount rate - operating leases	4.66		%	4.89		%

Letters of Credit

As of March 31, 2022, the Company has the following irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. The Company also has pledged cash collateral for reinsurance agreements which amounted to $49.5 million, as of March 31, 2022, and $44.1 million, as

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of December 31, 2021, which are expected to be released periodically as per the terms of the reinsurance policy between March 31, 2022 and March 31, 2024.

.

Location	Amount		Maturity
	(dollars in thousands)
New York	$	209	April 2023
New York	$	1,325	October 2022
New York	$	1,226	August 2022
Boston	$	188	March 2023
San Francisco	$	454	October 2025
	$	3,402

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of March 31, 2022 and December 31, 2021 there were no amounts due related to these letters of credit.

Contractual Obligations

The following tables summarize the Company's contractual cash obligations as of March 31, 2022:

	Total		< 1 Year		1-3 Years		3-5 Years		More Than 5 Years
	(dollars in thousands)
Equipment, Service and Facility Leases
Real Estate and Other Facility Rental	$	111,416	$	16,813	$	48,441	$	21,193	$	24,969
Service Payments	62,453		22,196		25,758		7,142		7,357
Operating Equipment Leases	1,765		366		751		648		—
Total	175,634		39,375		74,950		28,983		32,326
Debt
Notes Payable	279,326		11,468		101,983		15,500		150,375
Term Loan	550,672		16,733		44,519		43,789		445,631
Finance Lease Obligation	1,510		849		600		61		—
Other Notes Payable	16,888		3,752		13,136		—		—
Total	$	848,396	$	32,802	$	160,238	$	59,350	$	596,006

Minimum payments for all debt outstanding

Annual scheduled maturities of debt and minimum payments for all debt outstanding as of March 31, 2022, are as follows:

	Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2022	$	11,468	$	16,733	$	3,752	$	849
2023	13,405		22,351		12,593		500
2024	88,578		22,168		543		100
2025	7,750		21,986		—		49
2026	7,750		21,803		—		12
Thereafter	150,375		445,631		—		—
Subtotal	279,326		550,672		16,888		1,510
Less (a)	(105,187)		(116,353)		(1,031)		(59)
Total	$	174,139	$	434,319	$	15,857	$	1,451

(a)Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements as of March 31, 2022. However, through indemnification provisions in our clearing agreements, customer activities may expose us to off-balance-sheet credit risk. Pursuant to the clearing agreements,

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we are required to reimburse our clearing broker, without limit, for any losses incurred due to a counterparty's failure to satisfy its contractual obligations. However, these transactions are collateralized by the underlying security, thereby reducing the associated risk to changes in the market value of the security through the settlement date.

Cowen and Company and ATM Execution are members of various securities exchanges and clearing organizations. Under the standard membership agreement, members are required to guarantee the performance of other members and, accordingly, if another member becomes unable to satisfy its obligations to the various securities exchanges and clearing organizations, all other members would be required to meet the shortfall. The Company's liability under these arrangements is not quantifiable. Accordingly, no contingent liability is carried in the accompanying condensed consolidated statements of financial condition for these arrangements.

Cowen and Company temporarily loans securities to other brokers in connection with its securities lending activities. Cowen and Company receives cash as collateral for the securities loaned. Increases in securities prices may cause the market value of the securities loaned to exceed the amount of cash received as collateral. In the event that counterparty to these transactions does not return the loaned securities, Cowen and Company may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its client obligations. Cowen and Company controls this risk by requiring credit approvals for counterparties, by monitoring the market value of securities loaned on a daily basis, and by requiring additional cash as collateral or returning collateral when necessary.

Cowen and Company temporarily borrows securities from other brokers in connection with its securities borrowing activities. Cowen and Company deposits cash as collateral for the securities borrowed. Decreases in securities prices may cause the market value of the securities borrowed to fall below the amount of cash deposited as collateral. In the event that counterparty to these transactions does not return collateral, Cowen and Company may be exposed to the risk of selling the securities at prevailing market prices. Cowen and Company controls this risk by requiring credit approvals for counterparties, by monitoring the collateral values on a daily basis, and by depositing additional collateral with counterparties or receiving cash when deemed necessary.

Critical Accounting Policies and Estimates

Critical accounting policies are those that require the Company to make significant judgments, estimates or assumptions that affect amounts reported in its condensed consolidated financial statements or the notes thereto. The Company bases its judgments, estimates and assumptions on current facts, historical experience and various other factors that the Company believes to be reasonable and prudent. Actual results may differ materially from these estimates.

The following is a summary of what the Company believes to be its most critical accounting policies and estimates.

Consolidation

The Company's condensed consolidated financial statements include the accounts of the Company, its subsidiaries, and entities in which the Company has a controlling financial interest, including the Consolidated Funds, in which the Company has a controlling general partner interest. All material intercompany transactions and balances have been eliminated in consolidation. The Company's investment funds are not subject to these consolidation provisions with respect to their investments pursuant to their specialized accounting.

The Company's condensed consolidated financial statements reflect the assets, liabilities, revenues, expenses and cash flows of the Consolidated Funds on a gross basis. The management fees and incentive income earned by the Company from the Consolidated Funds were eliminated in consolidation; however, the Company's allocated share of net income from these investment funds was increased by the amount of this eliminated income. Hence, the consolidation of these investment funds had no net effect on the Company's net earnings. The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a Voting Operating Entity ("VOE") or a Variable Interest Entity ("VIE") under US GAAP.

Voting Operating Entities—VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns.

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Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units.

Variable Interest Entities—VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE.

The VIEs the Company has invested in act as investment managers and/or investment companies that may be managed by the Company. The VIEs are financed through their operations and/or loan agreements with the Company.

In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company consolidates these investment funds when its variable interest is potentially significant to the entity (see Note 6 for additional disclosures on VIEs).

The Company consolidates investment funds for which it acts as the managing member/general partner and investment manager. At March 31, 2022, the Company consolidated Ramius Enterprise LP (“Enterprise LP”), an investment fund. At December 31, 2021, the Company consolidated the following investment funds: Enterprise LP and Cowen Private Investments LP ("Cowen Private").

During the first quarter of 2022, the Company deconsolidated Cowen Private as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP ("CSI I LP") due to the Company's ownership being diluted through a capital equalization event.

Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary.

Other—If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for its investment in such entity (primarily consisting of securities of such entity which are purchased and held principally for the purpose of selling them in the near term and classified as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within Investment income (loss) - Securities principal transactions, net or Investment income (loss) - portfolio fund investment income (loss) in the accompanying condensed consolidated statements of operations.

Retention of Specialized Accounting— The Consolidated Funds and certain other consolidated companies are investment companies and apply specialized industry accounting. The Company reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations. Accordingly, the accompanying condensed consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

Certain portfolio fund investments qualify as equity method investments and are investment companies that apply specialized industry accounting. In applying equity method accounting guidance, the Company retains the specialized accounting of the investees and reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Investment Income - portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

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In addition, the Company's broker-dealer subsidiaries and security-based swap dealer apply the specialized industry accounting for brokers and dealers in securities, which the Company retains upon consolidation.

Valuation of investments and derivative contracts

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is based on their proportional rights of the underlying portfolio company, and is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation impact the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the condensed consolidated financial statements. Certain of the Company's investments are relatively illiquid or thinly traded and may not be immediately liquidated on demand if needed. Fair values assigned to these investments may differ significantly from the fair values that would have been used had a ready market for the investments existed and such differences could be material.

The Company primarily uses the market approach to value its financial instruments measured at fair value. In determining an instrument's level within the hierarchy, the Company categorizes the Company's financial instruments into three categories: securities, derivative contracts and other investments. To the extent applicable, each of these categories can further be divided between those held long or sold short.

The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The election is made on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument.  The Company has elected the fair value option for certain of its investments held by its operating companies.  This option has been elected because the Company believes that it is consistent with the manner in which the business is managed, as well as the way that financial instruments in other parts of the business are recorded. 

Securities—Securities with values based on quoted market prices in active markets for identical assets are classified within level 1 of the fair value hierarchy. These securities primarily include active listed equities, certain U.S. government and sovereign obligations, Exchange Traded Funds ("ETFs"), mutual funds and certain money market securities.

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Certain positions for which trading activity may not be readily visible, consisting primarily of convertible debt, corporate debt and loans and restricted equities, are stated at fair value and classified within level 2 of the fair value hierarchy. The estimated fair values assigned by management are determined in good faith and are based on available information considering trading activity, broker quotes, quotations provided by published pricing services, counterparties and other market participants, and pricing models using quoted inputs, and do not necessarily represent the amounts which might ultimately be realized. As level 2 investments include positions that are not always traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability.

Derivative contracts—Derivative contracts can be exchange-traded or privately negotiated over-the-counter (“OTC”). Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within level 1 or level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. OTC derivatives, such as generic forwards, swaps and options, are classified as level 2 when their inputs can be corroborated by market data. OTC derivatives, such as swaps and options, with significant inputs that cannot be corroborated by readily available or observable market data are classified as level 3.

Other investments—Other investments consist primarily of portfolio funds, carried interest and equity method investments, which are valued as follows:

i.    Portfolio funds—Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy.

ii. Carried Interest—For the private equity and debt fund products the Company offers, the Company is allocated incentive income by the investment funds based on the extent by which the investment funds performance exceeds predetermined thresholds. Carried interest allocations are generally structured from a legal standpoint as an allocation of capital in the Company’s capital account. The Company accounts for carried interest allocations by applying an equity ownership model. Accordingly, the Company accrues performance allocations quarterly based on the fair value of the underlying investments assuming hypothetical liquidation at book value.

iii. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company applies the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition, but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit.

In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the

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carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying condensed consolidated statements of operations if the sum of the estimated undiscounted cash flows from the use or disposition of the asset or asset group is less than the corresponding carrying value. The Company continually monitors the estimated average useful lives of existing intangible assets.

Legal Reserves

The Company estimates potential losses that may arise out of legal and regulatory proceedings and records a reserve and takes a charge to income when losses with respect to such matters are deemed probable and can be reasonably estimated, in accordance with US GAAP. These amounts are reported in other expenses, net of recoveries, in the condensed consolidated statements of operations. See Note 22 in our accompanying condensed consolidated financial statements for the quarter ended March 31, 2022 for further discussion.

Recently adopted and future adoption of accounting pronouncements

        For a detailed discussion, see Note 2q "Recent pronouncements" in our accompanying condensed consolidated financial statements for the three months ended March 31, 2022.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

During the three months ended March 31, 2022, there were no material changes in our quantitative and qualitative disclosures about market risks from those disclosed in our 2021 Form 10-K. For a more detailed discussion concerning our market risk, see Item 7A "Quantitative and Qualitative Disclosures about Market Risk" in our 2021 Form 10-K.

Item 4.    Controls and Procedures

Our management, with the participation of the Chief Executive Officer and the Chief Financial Officer (the principal executive officer and principal financial officer, respectively), evaluated our disclosure controls and procedures as of March 31, 2022.

Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that, as of March 31, 2022, our disclosure controls and procedures are effective to provide a reasonable assurance that information required to be disclosed by the Company in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer of the Company, as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in our internal controls over financial reporting that occurred during the three months ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting for such period.

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings    

In the ordinary course of business, the Company and its affiliates, subsidiaries and current and former officers, directors and employees (the "Company and Related Parties") are named as defendants in, or as parties to, various legal actions and proceedings. Certain of these actions and proceedings assert claims or seek relief in connection with alleged violations of securities, banking, anti-fraud, anti-money laundering, employment and other statutory and common laws. Certain of these actual or threatened legal actions and proceedings include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief.

In the ordinary course of business, the Company and Related Parties are also subject to governmental and regulatory examinations, information gathering requests (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Certain of our affiliates and subsidiaries are registered broker-dealers, futures commission merchants, investment advisers or other regulated entities and, in those capacities, are subject to regulation by

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various U.S., state and foreign securities, commodity futures and other regulators. In connection with formal and informal inquiries by these regulators, we receive requests and orders seeking documents and other information in connection with various aspects of our regulated activities.

Due to the global scope of our operations, and presence in countries around the world, the Company and Related Parties may be subject to litigation, governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), in multiple jurisdictions with legal and regulatory regimes that may differ substantially, and present substantially different risks, from those to which the Company and Related Parties are subject in the United States.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

In accordance with US GAAP, the Company establishes reserves for contingencies when the Company believes that it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. The Company discloses a contingency if there is at least a reasonable possibility that a loss may have been incurred and there is no reserve for the loss because the conditions above are not met. The Company's disclosure includes an estimate of the reasonably possible loss or range of loss for those matters, for which an estimate can be made. Neither a reserve nor disclosure is required for losses that are deemed remote.

The Company appropriately reserves for certain matters where, in the opinion of management, the likelihood of liability is probable and the extent of such liability is reasonably estimable. Such amounts are included within accounts payable, accrued expenses and other liabilities in the accompanying condensed consolidated statements of financial condition. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Company's defenses and its experience in similar cases or proceedings as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. The Company may increase or decrease its legal reserves in the future, on a matter-by-matter basis, to account for developments in such matters. The Company accrues legal fees as incurred.

Item 1A.    Risk Factors

The discussion of our business and operations should be read together with the risk factors contained in Item 1A of our 2021 Form 10-K for the fiscal year ended December 31, 2021.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

As of March 31, 2022, the Company's Board of Directors has a share repurchase program that, since its inception, has authorized the Company to purchase up to $466.4 million of Cowen Class A common stock from time to time through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. The specific timing and amount of repurchases will vary depending on various factors, including, among others, market conditions and competing needs for the use of our capital.  We may elect to conduct future share repurchases through open market purchases, private transactions or automatic share repurchase programs under SEC Rule 10b5-1. During the three months ended March 31, 2022, the Company repurchased 798,302 shares, at an average price of $30.24 per share, of Cowen Class A common stock through the share repurchase program.

The table below sets forth the information with respect to purchases made by or on the behalf of the Company or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Exchange Act, as amended), of our common stock during the three months ended March 31, 2022. Board approval of repurchases is based on dollar amount. As a result, the Company cannot estimate the number of shares that may yet be purchased.

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Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
Month 1 (January 1, 2022 – January 31, 2022)
Common stock repurchases(1)	379,002	$	33.23	379,002	$	43,526,497
Employee transactions(2)	—	—		—	—
Other (3)	—	—		—	—
Total	379,002	$	33.23	379,002
Month 2 (February 1, 2022 – February 28, 2022)
Common stock repurchases(1)	30,000	$	29.55	30,000	$	42,639,886
Employee transactions(2)	—	—		—	—
Other (3)	—	—		—	—
Total	30,000	$	29.55	30,000
Month 3 (March 1, 2022 – March 31, 2022)
Common stock repurchases(1)	389,300	$	27.38	389,300	$	31,979,581
Employee transactions(2)	374,149	32.83		—	—
Other (3)	—	—		—	—
Total	763,449	$	30.05	389,300
Total (January 1, 2022 – March 31, 2022)
Common stock repurchases(1)	798,302	$	30.24	798,302	$	—
Employee transactions(2)	374,149	32.83		—	—
Other (3)	—	—		—	—
Total	1,172,451	$	31.07	798,302

(1)    The Company's Board of Directors have authorized the repurchase, subject to market conditions, of up to $466.4 million of the Company's outstanding Class A common stock.

(2)    Represents shares of the Company's Class A common stock withheld in satisfaction of tax withholding obligations upon the vesting of equity awards or other similar transactions.

(3)    Represents shares of common stock distributed to the Company from an escrow account established to satisfy the Company's indemnification claims arising under the terms of the purchase agreement entered into in connection with the Company's acquisition of Convergex Group, LLC.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

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Item 6.    Exhibits

Exhibit No.	Description
3.1	Amended and Restated Certificate of Incorporation of Cowen Inc. (previously filed as Exhibit 3.1 to the Form 10-Q filed November 25, 2009).
3.2	Second Amended and Restated By-Laws of Cowen Inc. (previously filed as Exhibit 3.1 to the Form 8-K filed on February 18, 2020).
3.3	Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Cowen Inc. (previously filed as Exhibit 3.3 to the Form 10-Q filed November 25, 2009).
3.4	Certificate of Designations of the Company for its Series A Cumulative Perpetual Preferred Stock (previously filed as Exhibit 3.1 to Form 8-K filed May 20, 2015).
3.5	Amendment to the Amended and Restated Certificate of Incorporation of Cowen Inc. (previously filed as Exhibit 3.1 to the Form 8-K filed December 5, 2016).
3.6	Certificate of Amendment of Amended and Restated Certificate of Incorporation of Cowen Inc. (previously filed as Exhibit 3.1 to the Form 8-K filed on May 16, 2017)
10.1	Form of Restricted Stock Unit and Deferred Cash Award Agreement (filed herewith).*
10.2	Form of Performance Shares Award Agreement (filed herewith).*
10.3	Cowen Digital Holdings 2022 Equity Unit Incentive Plan (filed herewith).*
10.4	Form of Award Agreement Cowen Digital Holdings 2022 Equity Unit Incentive Plan (filed herewith).*
31.1	Certification of CEO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of CFO Pursuant to Section 302 of Sarbanes-Oxley Act of 2002 (filed herewith).
32	Certification of CEO and CFO Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS	XBRL INSTANCE DOCUMENT
101.SCH	XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
101.CAL	XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT
101.DEF	XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT
101.LAB	XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT
101.PRE	XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT
104	Cover Page Interactive Data File - (formatted as inline XBRL and contained in Exhibit 101)

* Signifies management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		COWEN INC.
		By:	/s/ JEFFREY M. SOLOMON
		Name:	Jeffrey M. Solomon
		Title:	Chair and Chief Executive Officer (Principal Executive Officer)
		By:	/s/ STEPHEN A. LASOTA
		Name:	Stephen A. Lasota
Date:	May 2, 2022	Title:	Chief Financial Officer (principal financial officer and principal accounting officer)

EX-10.1

Exhibit 10.1

RESTRICTED STOCK UNIT AND DEFERRED CASH AWARD AGREEMENT

THIS RESTRICTED STOCK UNIT AND DEFERRED CASH AWARD AGREEMENT (this “Agreement”) is made by and between Cowen Inc. (the “Company”), and [insert name], (the “Grantee”), as of February 1, 2022 (the “Grant Date”).

RECITALS

WHEREAS, the Company desires to grant to the Grantee the restricted stock units award (the “RSU Award”) and deferred cash award (the “Deferred Cash Award”) described herein (collectively, the “Awards”), subject to the terms of the Cowen Inc. 2020 Equity and Incentive Plan, as amended in 2021 (the “Plan”);

WHEREAS, the RSU Award shall consist of a grant of restricted stock units of Cowen Inc. in accordance with the terms and subject to the conditions set forth in this Agreement and the Plan;

WHEREAS, the Deferred Cash Award shall consist of a grant of deferred cash in accordance with the terms and subject to the conditions set forth in this Agreement and the Plan;

WHEREAS, the Grantee has accepted the grant of the Awards and hereby agrees to the terms and conditions hereinafter stated; and

WHEREAS, the capitalized terms used but not defined herein shall have the respective meanings given to them in the Plan;

NOW, THEREFORE, in consideration of the foregoing recitals and of the promises and conditions herein contained, it is agreed as follows:

ARTICLE I

Section 1.1 -Grant of Restricted Stock Units.

The RSU Award granted to the Grantee by the Company as of the Grant Date consists of [insert] restricted stock units (“RSUs”) pursuant to the terms and subject to the conditions and restrictions of this Agreement and the Plan. Each RSU constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be delivered) to the Grantee upon settlement, subject to the terms of this Agreement, one share of Stock. Until such settlement and delivery, the Grantee has only the rights of a general unsecured creditor, and no rights as a shareholder of the Company, provided that, whenever a normal cash dividend is paid on shares of Stock, the Company shall credit to the Grantee an amount of cash equal to the product of the per-share amount of the dividend paid times the number of then unsettled RSUs. Such credited amounts shall be paid to the Grantee when and only to the extent the Stock underlying the RSU is transferred to the Grantee in accordance with this Agreement.

Section 1.2 -Grant of Deferred Cash.

The Deferred Cash Award granted to the Grantee by the Company as of the Grant Date consists of the right to receive [insert] dollars ($[insert]) in deferred cash, less applicable taxes and payroll deductions and subject to the conditions and restrictions of this Agreement and the Plan (“Deferred Cash”). Until the Company pays the Grantee Deferred Cash under this Agreement, all funds shall continue to be part of the general funds of the Company, and title to and beneficial ownership of any assets, whether cash or investments, which the Company may, in its sole discretion, set aside or earmark to meet its obligations hereunder shall at all times

1

Exhibit 10.1

remain in the Company until paid to the Grantee. The Grantee shall not under any circumstances acquire any property interest in any specific assets of the Company.

Section 1.3 -Vesting and Settlement of Awards.

(a)Normal Vesting and Settlement Schedule. The RSU Award shall vest and be settled as follows: (i) twelve and one half percent (12.5%) on September 1, 2022; (ii) twelve and one half percent (12.5%) on June 1, 2023; (iii) twenty-five percent (25%) on June 1, 2024; (iv) twenty-five percent (25%) on June 1, 2025; and (v) twenty-five percent (25%) on June 1, 2026; and the Deferred Cash will vest as follows: (vi) twelve and one half percent (12.5%) on August 15, 2022; (vii) twelve and one half percent (12.5%) on May 15, 2023; (viii) twenty-five percent (25%) on May 15, 2024; (ix) twenty-five percent (25%) on May 15, 2025; and (x) twenty-five percent (25%) on May 15, 2026 (each a “Vesting Date”, and collectively, the “Vesting Dates”), provided that (A) as of each Vesting Date the Grantee is employed in Good Standing by the Employer; and (B) with respect to the settlement of RSUs, the Grantee satisfies the Tax Withholding Amount (defined below). Vested Deferred Cash will be settled and paid via payroll by the first regularly schedule payroll after the Vesting Date.

(b)Interest on Deferred Cash. For each period of time in which a portion of the Deferred Cash Award remains unvested, and has not been forfeited, the Grantee shall be entitled to interest on the unvested amount at a rate equal to 70 basis points per annum. Any interest accrued with respect to the Deferred Cash Award as of a given Vesting Date shall be paid in full when the vested Deferred Cash is settled. In the event that the Grantee forfeits the right to receive any unvested Deferred Cash, the Grantee also forfeits any then-accrued and unpaid interest.

(c)Vesting and Settlement in the Event of a Qualifying Termination. Any unvested Awards shall vest and be settled in full due to a Qualifying Termination, provided that (i) the Grantee (or Grantee’s executor or estate as applicable) satisfies the Tax Withholding Amount related the settlement of the RSU Award; and (ii) the Grantee (or Grantee’s executor or estate as applicable) executes, delivers, and does not revoke a general release of claims in favor of the Company and its Affiliates, in a form requested by the Company, within seven (7) days (or such longer period as required by law for the release to become effective, but in no event longer than fifty-two (52) days). For purposes of vesting and settlement under this Section, the vesting date shall be the date Grantee’s employment terminates, and the settlement date will be within sixty (60) days thereafter. If the settlement under this Section could occur in more than one taxable year depending on the date Grantee executes and returns the general release, then, regardless of the year in which Grantee executes and returns the general release, the settlement date will be the later of (y) January 1 of the next calendar year; or (z) the next payroll date that is at least ten (10) business days after the general release becomes irrevocable. If the Grantee (or Grantee’s executor or estate as applicable) does not execute and deliver the general release within the time permitted (or if the Grantee (or Grantee’s executor or estate as applicable) revokes the general release if permitted by law), all unvested Awards will be forfeited as of the date of termination of employment.

(d)Vesting and Settlement in the Event of a Qualifying Retirement. Any unvested Awards shall vest on the date of the Grantee’s Qualifying Retirement and shall be settled at such times set forth in Section 1.3(a) above, provided that (i) the Grantee satisfies the Tax Withholding Amount related the settlement of the RSU Award; (ii) the Grantee executes, delivers, and does not revoke a general release of claims in favor of the Company and its Affiliates, in a form requested by the Company, within seven (7) days (or such longer period as required by law for the release to become effective, but in no event longer than fifty (50) days); and (iii) prior to each settlement date after Grantee’s Retirement Date, Grantee has provided the Company with a notarized affidavit in a form requested by the Company, which will include, but

2

Exhibit 10.1

not be limited to, affirming whether Grantee is in compliance with this Agreement, whether the Grantee is engaged in a Competitive Activity, and disclosing Grantee’s then current employer, if any. In the event that the Grantee engages in any Competitive Activity prior to an applicable settlement date, the Grantee shall forfeit for no consideration all unsettled Awards that vested pursuant to this Section. Notwithstanding anything herein to the contrary, for purposes of vesting and settlement under this Section, the vesting date shall be the date Grantee’s employment terminates, and the settlement date will be the later of the date the general release becomes irrevocable and the settlement date set forth in Section 1.3(a) above. If the Grantee does not execute and deliver the general release within the time permitted (or if the Grantee) revokes the general release if permitted by law), all unvested Awards will be forfeited as of the date of termination of employment.

(e)Vesting and Settlement Provision in Employment Agreement. In the event that the Grantee is a party to an employment agreement with compensation terms in effect as of the Grant Date (“Employment Agreement”) that provides for accelerated vesting of any equity-based or deferred cash awards upon any event not specified in this Section, the vesting terms of such Employment Agreement shall control and the Awards will vest in accordance with the terms of such Employment Agreement upon the occurrence of such event and shall be settled within sixty (60) days of vesting, provided the Grantee has satisfied any Tax Withholding Amount related to such vesting.

Section 1.4 -Forfeiture.

Except as set forth above, if the Grantee’s employment with the Employer is terminated, then any unvested Awards shall immediately be forfeited to the Company (and in the case of a voluntary resignation, such forfeiture shall occur as of the commencement of the Notice Period, as defined below), and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such then-unvested Awards. Additionally, if the Company reasonably determines, in its sole discretion, that the Grantee has violated the Notice of Termination Section of this Agreement, the Restrictive Covenants Section of this Agreement, or other notice obligations or restrictive covenants to which Grantee is otherwise subject, or commits an act or omission which would qualify as Cause (defined below) (any of these violations, a “Breach”), then any unvested Awards shall immediately be forfeited to the Company as of the date of the Company’s determination, and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such unvested Awards.

Section 1.5 -Taxes.

The Grantee agrees to pay promptly, at the time the Grantee recognizes taxable income or wages in respect of the Awards, the minimum amount equal to the federal, state, and local taxes and withholdings the Company determines are required to be withheld under applicable tax laws with respect to the Awards (the “Tax Withholding Amount”), and subject to the conditions and restrictions of this Agreement and the Plan. In the case of a Qualifying Retirement, FICA taxes (e.g., social security and Medicare) are due on all vested but unsettled RSUs. With respect to the Deferred Cash, the Deferred Cash paid to the Grantee will be reduced by the Tax Withholding Amount. With respect to RSUs, payment of the Tax Withholding Amount may be effected through (a) payment by the Grantee to the Company in cash or cash equivalents; (b) at the discretion of the Company, and in accordance with Company policy, either (x) the Company withholding the number of shares of Stock with an aggregate fair market value on the date of vesting equal to the Tax Withholding Amount; or (y) selling shares to cover the Tax Withholding Amount on the open market; or (c) at the discretion of the Company, any combination of these methods. If the Grantee does not pay the Tax Withholding Amount in accordance with the terms of this Section within forty-five (45) days after the Vesting Date, at the election of the Company,

3

Exhibit 10.1

any then-vested, but unsettled, RSUs having an aggregate value equal to the Tax Withholding Amount (as determined by the Company in its sole discretion) shall immediately be forfeited to the Company and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such RSUs.

ARTICLE II

Section 2.1 - Definitions. Notwithstanding the definitions set forth in this Section, if the Grantee is subject to an Employment Agreement that defines “Cause,” “Disability,” or “Good Standing,” such term will have the meaning set forth in the Employment Agreement, as amended by any subsequent deferred compensation award agreements.

(a)“Affiliate” means, with respect to any entity, any other entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity.

(b)“Cause” means when the Employer, in its sole discretion in good faith, determines that: (i) the Grantee has breached any material provision of the Plan; this Agreement; Grantee’s Employment Agreement, offer letter, Terms and Conditions of Employment, or any deferred compensation award agreement including, but not limited to, the Notice of Termination Section or Restrictive Covenants Section below or in Grantee’s Employment Agreement or Terms and Conditions of Employment; (ii) the Grantee has been indicted for, convicted of, pled guilty or nolo contendere to, or committed any felony, or has been convicted of or pled guilty or nolo contendere to any other crime (whether or not related to the Grantee’s duties for the Employer or any Affiliate) with the exception of minor traffic offenses; (iii) the Grantee has committed an act of fraud, dishonesty, gross negligence, or substantial misconduct in his performance of his duties or responsibilities; (iv) the Grantee has violated or has failed to comply with the internal policies of the Employer or any Affiliate, including its policies against discrimination, harassment or retaliation, or the rules and regulations of any regulatory or self-regulatory organization with jurisdiction over the Employer or any Affiliate; (v) the Grantee has failed to perform a material duty of Grantee’s position including, by way of example and not of limitation, Grantee’s insubordination, or failure or refusal to follow an instruction reasonably given by Grantee’s superiors in the course of employment; and (vi) the Grantee has committed an act which results in negative publicity to the Company, regardless of whether such act occurred within the performance of his or her duties or responsibilities.

(c)“Competitive Activity” means, directly or indirectly, on behalf of a Competitor engaging in any activity which is the same as or reasonably similar to: (1) the positions Grantee has held with the any Cowen Inc. Company, (2) the activities Grantee has performed for any Cowen Inc. Company, (3) the activities Grantee gained knowledge of by virtue of his or her work for a Cowen Inc. Company; or (4) any activity engaged in by any department, division, or other group Grantee has managed on behalf of a Cowen Inc. Company. Competitive Activity includes being involved in any manner as an employee, stockholder, owner, officer, director, partner, agent, consultant, independent contractor, registered representative or in any other corporate or representative capacity. Competitive activity applies within the United States; provided, however, that if Grantee’s activities or position are located in, involve contact with or Grantee conducts business with countries other than the United States, it includes those countries, as permitted by law.

(d)“Competitor” includes any company, partnership, entity or person which is currently competitive with, or is preparing to be competitive with, a Cowen Inc. Company.

(e)“Cowen Inc. Company” includes Cowen Inc. and its subsidies, affiliates and joint ventures including, but not limited to, Cowen Investment Management LLC, Cowen and

4

Exhibit 10.1

Company, LLC, Kyber Data Science LLC, Cowen Digital LLC, ATM Execution LLC, Westminster Research Associates, Cowen Execution Services Limited, Cowen International Limited, and each of their subsidiaries, affiliates and joint ventures.

(f)“Disability” means that the Grantee (i) is unable to engage in any substantial gainful activity, with or without reasonable accommodation, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Employer or any Affiliate.

(g)“Employer” means the Company or the Affiliate of the Company that employs the Grantee.

(h)“Good Standing” means that Grantee remains actively employed and (i) has not been given notice of the termination of Grantee’s employment; (ii) has not given notice of resignation or resigned, other than notice of a Qualifying Retirement; and (iii) is not currently suspended or under investigation for conduct that could, in the Company’s good faith determination, result in a termination for Cause.

(i)“Length of Service” means Grantee’s completed years of service with any Cowen Inc. Company as reflected in Cowen’s human resources management system (currently Workday);

(j) “Qualifying Retirement” means the Grantee’s voluntary resignation that satisfies each of the following conditions: (i) as of the date Grantee provides resignation notice: (A) Grantee is at least fifty-eight (58) years of age, (B) Grantee’s Length of Service is at least five (5) years; and (C) Grantee’s age plus Length of Service equals at least sixty-eight (68) years; (ii) Grantee has provided the Employer with at least six (6) months prior written notice of the Grantee’s intention to voluntarily resign in order to retire (such notice to specify, among other things as may be required by the Employer, the intended Retirement Date); (iii) the Grantee continues to use his or her best efforts in the performance of his or her duties and responsibilities, including hiring Grantee’s replacement if requested by the Company, through Grantee’s Retirement Date; (vi) Grantee remains in Good Standing with the Employer through Grantee’s Retirement Date, and (v) Cause does not exist from the time the resignation notice is provided by the Grantee through the Grantee’s Retirement Date.

(k)“Qualifying Termination”means termination of the Grantee’s employment due to (i) termination by the Employer without Cause; or (ii) Grantee’s death or Disability.

(l)“Retirement Date” means the date Grantee’s employment terminates due to a voluntary resignation due to a Qualifying Retirement.

Section 2.2 - Notice of Termination.

Other than for a Qualifying Retirement, Grantee shall not voluntarily resign without first giving advanced written notice of the effective date of Grantee’s resignation. The length of Grantee’s notice period (“Notice Period”) and the amount of advanced written resignation notice is based on Grantee’s corporate title and business division on the date Grantee provides resignation notice as follows:

5

Exhibit 10.1

Corporate Title	Length of Notice Period
Managing Director	4 months
Director	3 months
Investment Banking - Vice President, Associate and Analyst	2 months
Markets - Vice President, Associate and Analyst	2 months
Research – Vice President and Associate	2 months
All other titles (less senior than Director) not otherwise listed on this chart	2 months

This Notice of Termination Section expressly supersedes any shorter Notice Periods set forth in any offer letter, Terms and Conditions of Employment, or deferred compensation award agreement; provided, however, that if Grantee has agreed to a longer Notice Period pursuant to an offer letter, Terms and Conditions of Employment, or deferred compensation award agreement, the longer length of time governs. If the Grantee has an Employment Agreement in effect as of the Grant Date that contains a Notice Obligation, then that provision governs.

Grantee must deliver written notice of resignation pursuant to this Section to Grantee’s manager with a copy to the Head of Human Resources by hand, e-mail, or mail with proof of delivery (such as certified mail, UPS, or FedEx). If Grantee is resigning to take another position, Grantee agrees to identify the new employer in the written resignation notice. Unless Grantee receives prior written consent from the head of Grantee’s Division, Grantee agrees not to send out a “goodbye” e-mail or other written communication, either internally to employees or externally, announcing Grantee’s resignation or departure. The obligations in this Section are Grantee’s “Notice Obligations”.

During the Notice Period, Grantee continues to be an employee. Grantee will continue to receive Grantee’s base salary or draw on a normal payroll cycle and remain eligible for benefits through the last day of employment. Grantee will not be eligible to receive any bonus, incentive compensation or paid time off. Grantee will forfeit any deferred compensation as of the date Grantee provides resignation notice. As an employee, Grantee may not perform services for another employer during the Notice Period, and Grantee continues to be bound by all fiduciary duties and policies and procedures. During the Notice Period, the Employer or the Company may (i) require Grantee to transition duties and responsibilities; or (ii) withdraw any powers vested in, or duties assigned to, Grantee. The Employer and the Company also retain the right, in their sole discretion, to waive the Notice Period in whole or in part or to place Grantee on paid leave for all or part of the Notice Period. If the Employer or the Company waives or shortens the Notice Period, Grantee will only receive base salary/draw and benefits through Grantee’s termination date.

6

Exhibit 10.1

Section 2.3 - Restrictive Covenants.

(a)Employee Non-Solicitation. Grantee agrees that during employment (including any Notice Period) and for a period of one (1) year after the date of the termination of Grantee’s employment for any reason, Grantee will not, without the Company's prior written consent, directly or indirectly: (a) solicit or induce, or cause others to solicit or induce, any employees of a Cowen Inc. Company (defined below) to leave the Company or in any way modify their relationship with the Company; (b) hire or cause others to hire any employees of a Cowen Inc. Company; or (c) encourage or assist in the hiring process of any Cowen Inc. Company employee or in the modification of any such employee's relationship the Cowen Inc. Company, or cause others to participate, encourage or assist in the hiring process of any employees of a Cowen Inc. Company.

(b)Non-Competition Obligation. In order to safeguard the Employer’s and the Company’s Protectable Interests (as defined below), Grantee agrees that if he or she has a Front Office position, during Grantee’s employment and Post-employment Period after Grantee’s employment terminates, Grantee will not, without prior written consent of the Company’s Head of Human Resources, directly or indirectly, on behalf of a Competitor, engage in Competitive Activity (the restriction under this Paragraph, the “Non-competition Obligation”). The length of the post-employment Non-Competition Obligation will be equal to the length of Grantee’s Notice Obligation as of the date of Grantee’s termination of employment (the “Post-employment Period”). For example, if Grantee has a 3-month Notice Obligation, the length of Grantee’s Post-employment Period is three (3) months. The post-employment Non-competition Obligation does not apply if Grantee’s employment is terminated by the Company without Cause. If Grantee fully complies with Grantee’s Notice Obligations, the length of Grantee’s Post-employment Period will be reduced by the number of days Grantee remains on payroll during the Notice Period (for example, if Grantee’s Employer holds Grantee to Grantee’s full Notice Period, Grantee will not have any further Post-employment Period if Grantee fully complies with the Notice Obligations). Grantee acknowledges that this Non-Competition Obligation is in addition to any client non-solicitation obligation set forth in any offer letter, Terms and Conditions of Employment, or deferred compensation award agreement, and that such agreements are amended to add this Non-Competition Obligation; provided, however, that if Grantee has agreed to a longer post-employment non-competition period in an offer letter or Terms and Conditions of Employment, the longer length of time governs. If the Grantee has an Employment Agreement in effect as of the Grant Date, then that Employment Agreement governs.

(c)Non-Disclosure of Confidential or Proprietary Information. The Grantee shall not at any time, whether during Grantee’s employment or following the termination of Grantee’s employment, directly or indirectly, publish, disclose or furnish to any entity, firm, corporation or person, except as otherwise required by law or as required as part of Grantee’s position with the Company, any Confidential or Proprietary Information with respect to any aspect of its operations, business or clients. "Confidential or Proprietary Information" shall mean any secret, confidential or proprietary information of a Cowen Inc. Company that is not generally known to the public to which you gain access by reason of your employment and includes, but is not limited to, information relating to all principals, officers, and employees, all present or potential clients and investors; work product developed by and research conducted by a Cowen Inc. Company; research reports, models, and notes; business and marketing plans; sales, trading and financial data and strategies; legal and/or regulatory matters; operational costs; pitch books and presentation materials; client and investor lists; client contact and account information; pipelines; investor information; budgets; engagement letters; all current and prospective client confidential information; financial models; and internal procedures, manuals and guidebooks. This Paragraph does not prohibit any disclosure: (i) made for the purpose of reporting a suspected violation of law or claiming retaliation for reporting a violation of law in confidence to (A) the Equal Employment Opportunity Commission, the National Labor Relations Board, the

7

Exhibit 10.1

Occupational Safety and Health Administration, the Securities and Exchange Commission, FINRA, or any other federal, state or local government, agency or commission (“Government Agency”), (B) your attorney, or (C) in a sealed court document; (ii) made in cooperation with an investigation by a Government Agency; or (iii) required pursuant to a subpoena or other legal process; provided, however, with respect to a disclosure under (iii), other than to a Government Agency, that Grantee agrees to give the Company prompt written notice of the disclosure so that the Company may seek a protective order or waive Grantee’s compliance with this paragraph. Upon termination of Grantee’s employment for any reason, or at any other time requested by the Employer or the Company, Grantee agrees to immediately return all Confidential or Proprietary Information in Grantee’s possession, custody or control, and upon request of the Employer or the Company, agrees to execute an affidavit confirming Grantee’s compliance with this obligation.

(d)Non-Disparagement. The Grantee shall not at any time, whether during the Grantee’s employment or following any termination thereof, and shall not cause or induce others to, defame or disparage the Company or any Affiliate, or the directors, officers or employees of the Company or any Affiliate. Grantee agrees not to take any action which is intended, or would reasonably be expected, to harm the reputation of a Cowen Inc. Company, or which would reasonably be expected to lead to negative publicity to a Cowen Inc. Company.

(e)Company Property. All records, files, memoranda, reports, customer information, client and investor lists, documents, Work Made for Hire (defined below) and equipment relating to the business of the Company or any Affiliate that the Grantee prepares or possesses, or with which the Grantee comes into contact, in either case while the Grantee is an employee of the Company or any Affiliate, shall remain the property of the Company or such Affiliate. The Grantee agrees that upon the Grantee’s termination of employment for any reason, the Grantee shall provide to the Company and any Affiliate, as applicable, all documents, papers, files, and other material in the Grantee’s possession and under the Grantee’s control that are connected with or derived from the Grantee’s services to the Company or any Affiliate.

(f)Intellectual Property. Grantee agrees that the following, without limitation, belongs to and shall be the sole intellectual property of the Company: all inventions, improvements, products, designs, specifications, original works of authorship, trademarks, service marks, trade dress, discoveries, formulas, algorithms, processes, models, software or computer programs (including any modifications), data processing systems, analyses, data, techniques, trade secrets, know-how, ideas, creations, or work product (regardless of whether it contains Confidential or Proprietary Information or trade secrets), and any applications and registrations thereto, conceived, developed, made or improved on by Grantee: (i) in the course of employment with or work for a Cowen Inc. Company; or (ii) with the use of a Cowen Inc. Company’s time, material or facilities in any way related to or pertaining to or connected with the present or anticipated business, development, work or research of a Cowen Inc. Company (“Work Made for Hire”). The Company shall exclusively own all rights, title and interest in any Work Made for Hire, and shall be the author for all purposes under copyright law. Grantee hereby assigns such Work Made for Hire to the Company and agrees, without further compensation or consideration, to immediately take such actions to effect such assignment as may be requested by the Cowen Inc. Company. If any intellectual property is not deemed a Work Made for Hire, or if Grantee, by operation of law, is deemed to obtain any rights to the Work Made for Hire, Grantee shall irrevocably assign to the Company, without further compensation or consideration, your entire right, title, and interest in and to the intellectual property. Grantee further agrees not to impermissibly reproduce, copy, display, distribute, forward, plagiarize, or use (whether in hardcopy or electronically, including via e-mail) any Third Party Copyrighted Materials in violation of any license, subscription agreement, or law. “Third Party Copyrighted Materials” are copyrighted works, other than those of a Cowen Inc. Company including, but are not limited to, printed articles from publications; electronic articles and reports in online publications; database content; websites; streaming media; musical compositions, mobile apps;

8

Exhibit 10.1

online videos; movies; sound recordings, including in digital form such as downloads and streams; images; presentations; training materials; manuals; documentation; computer programs, software programs, and blogs.

(g)Compliance with Company Policies. The Grantee agrees to comply fully with the applicable internal policies of the Company and the Employer including, but not limited to, those contained in the Company’s and the Employer’s Employee Handbook, Code of Business Conduct and Ethics, and compliance policies and procedures. The Company’s right to modify these policies does not affect Grantee’s duty to comply with these policies at all times.

(h)Cooperation. The Grantee agrees to cooperate fully with the Company and the Employer at any time, whether during the Grantee’s employment or following any termination thereof, taking into account the requirements of any subsequent employment by the Grantee, on all matters relating to the Grantee’s employment, which cooperation shall be provided without additional consideration or compensation and shall include, without limitation, being available to serve as a witness and be interviewed and making available any books, records, and other documents within the Grantee’s control, provided, however, that the Grantee need not take any action hereunder that would constitute a violation of law or obligation to any third party (except to the extent such obligation arises due to any action taken by the Grantee with the intention to circumvent the operation of this Section or cause a waiver of attorney-client privilege). Without limiting the generality of the foregoing, the Grantee shall cooperate fully and truthfully in connection with any (1) past, present, or future suit, action, claim, or other proceeding; (2) inquiry, proceeding, or investigation by or before any governmental authority; (3) arbitration, mediation, or other alternative dispute resolution process, in each case involving the Company, the Employer, or any Affiliates; and (4) internal investigation. In connection with the Grantee’s providing such cooperation, the Company or the Employer, as applicable, shall reimburse the Grantee for reasonable, pre-approved expenses in connection with such cooperation.

(i)Publicity Consent. In connection with Grantee’s employment, Grantee grants the Cowen Inc. Companies the right to use his or her name, likeness, image, portrait, voice, and appearance for business purposes including, but not limited to, videos, audio recordings, photographs, publications, advertisements, news releases, websites, and any promotional materials (the “Materials”). Grantee acknowledges that he or she has no right, title, or interest in and to the Materials, and voluntarily waives the right to inspect or approve the use of the Materials. Grantee releases the Cowen Inc. Companies from all claims under federal, state and local law arising out of the Cowen Inc. Companies’ use of the Materials.

(j)Grantee Representations Supporting Restrictive Covenants. Grantee acknowledges and recognizes the highly competitive nature of the Employer’s and the Company’s business, that the Employer will invest time and resources into Grantee’s training and education in furtherance of Grantee’s position, and that by virtue of Grantee’s position, Grantee will have access to the Employer’s and the Company’s Confidential and Proprietary Information and trade secrets (collectively, “Protectable Interests”). Grantee understands that the restrictive covenants contained in this Agreement may limit Grantee’s ability to earn a livelihood in a position similar to or involving the same activities Grantee perform for the Employer, but Grantee acknowledges that Grantee will receive compensation and other benefits, including training and access to Confidential and Proprietary Information, sufficient to justify these restrictions. Grantee further acknowledges that given Grantee’s education, skills, and abilities, Grantee does not believe that the restrictive covenants in this Agreement will prevent Grantee from earning a livelihood. Grantee recognizes that the Company would not award the RSUs and Deferred Cash pursuant to this Agreement if Grantee was not willing to agree to the restrictive covenants contained in this Agreement.

9

Exhibit 10.1

Section 2.4 - Breach/Injunctive Relief.

In the event of a Breach, in addition to being entitled to exercise all rights granted by law, including recovery of damages, the Company and the Employer will be entitled to specific performance of its rights under this Agreement. The Grantee acknowledges that the Company shall suffer irreparable harm in the event of a Breach or prospective Breach, and that monetary damages would not be adequate relief. Accordingly, the Company shall be entitled to seek injunctive relief in any federal or state court of competent jurisdiction located in New York County, or in any state in which the Grantee resides. The Grantee further agrees that the Company and the Employer shall be entitled to recover all costs and expenses (including attorneys’ fees and expenses) incurred in connection with the enforcement of the Company’s rights hereunder including, but not limited to, with respect to a Breach.

Section 2.5 - Offset.

In the event that the Grantee voluntarily terminates employment or if the Grantee’s employment is terminated, for any reason or no reason, the Company may offset, to the fullest extent permitted by law, any amounts of money or other property due to the Company from the Grantee, or advanced or loaned to the Grantee by the Company, from any money or property owed to the Grantee or the Grantee’s estate by the Company as a result of such termination of employment, except to the extent such withholding or offset is not permitted under Section 409A of the Code (“Section 409A”), without the imposition of additional taxes or penalties on the Grantee.

Section 2.6 - Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of New York other than its laws regarding conflicts of law (to the extent that the application of the laws of another jurisdiction would be required thereby), other than the agreement to arbitrate set forth in Section 2.14, which is governed by and construed in accordance with the Federal Arbitration Act (“FAA”). Grantee consents that any arbitration with respect to this Agreement or Grantee’s employment will be brought in the New York County. To the extent that Grantee or the Company is permitted to commence a court action, Grantee consents to venue and personal jurisdiction in the state and federal courts in New York County, and Grantee waives any right to a jury trial in any such action.

Section 2.7 - Interpretation of Agreement.

Subject to the Plan, the Company shall have final authority to interpret and construe this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee’s legal representative in respect of any questions arising under this Agreement.

Section 2.8 - Notices.

Any notice, other than notice by the Company relating to the Tax Withholding Amount and a resignation notice by Grantee, to be given under the terms of this Agreement shall be in writing and addressed to the Company at 599 Lexington Avenue, New York, New York 10022, Attention: General Counsel, and to the Grantee at the Grantee’s last known home address provided by Grantee to the Company as of the date of notice or at such other address as either party may hereafter designate in writing to the other by like notice. Notice by the Company relating to the Tax Withholding Amount may be sent to the Grantee via e-mail.

10

Exhibit 10.1

Section 2.9 - Effect of Agreement/Acknowledgment/Brokerage Account Requirement

Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company. This Agreement shall only become effective and binding on the Company in the event that Grantee shall within forty-five (45) days after the Grant Date: (i) return this signed Agreement to the Company’s Human Resources Department; and (ii) open and activate a brokerage account with the Company’s stock plan administrator.

Section 2.10 - Complete Agreement/Severability.

This Agreement may not be amended or modified in any manner (including by waiver) except by an instrument in writing signed by both parties hereto. The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of such party of a provision of this Agreement. Any provision of this Agreement held legally invalid or unenforceable shall not affect the enforceability of the remaining provisions. If any court or arbitrator determines that the Notice Period or restrictive covenants, or any part thereof, are invalid or unenforceable, it is the intention of the parties that these Sections shall not be terminated but shall be deemed to be amended to the extent required to make them valid and enforceable.

Section 2.11 - No Right to Continued Employment.

Nothing in this Agreement shall be deemed to confer on the Grantee any right to continued employment with the Company, Employer or any Affiliate.

Section 2.12 - Section 409A.

The intent of the parties is that payments under this Agreement comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, the Grantee shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Grantee has incurred a “separation from service” from the Company within the meaning of Section 409A of the Code. Each amount to be paid under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable pursuant to this Agreement or any other arrangement between the Grantee and the Company during the six (6) month period immediately following the Grantee’s separation from service shall instead be paid on the first business day after the date that is six (6) months following the Grantee’s separation from service (or, if earlier, the Grantee’s date of death). The Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment. In the event that any provision of this Agreement would cause this Agreement fail to comply with Section 409A, to the extent subject thereto, such provision may be deemed null and void, and the Company and the Grantee agree to amend or restructure this Agreement to the extent necessary and appropriate to avoid adverse tax consequences under Section 409A.

11

Exhibit 10.1

Section 2.13 - Entire Agreement.

Except as otherwise specified herein, this Agreement constitutes the entire agreement of the parties with respect to the Awards and supersedes in its entirety all prior undertakings, agreements, correspondence, and term sheets of or between the Company and the Grantee with respect to the Awards.

Section 2.14 - Arbitration.

(a)Any and all disputes with the Company, the Employer, or any Affiliate arising out of or relating to this Agreement or to the Grantee’s employment will be submitted to and resolved exclusively by the Financial Industry Regulatory Association (“FINRA”) in accordance with its rules, unless Grantee is not registered or is not subject to FINRA’s jurisdiction, then by the American Arbitration Association (“AAA”) pursuant to the AAA’s Employment Arbitration Rules and Mediation Procedures. In the event of arbitration before the AAA, the arbitrator’s fees and the administrative costs associated with holding the arbitration hearing (e.g., set-up and calendaring, room costs, etc.) will be paid by the Company; however, Grantee will be responsible for paying Grantee’s attorney’s fees, witness fees, and all other personal legal expenses related to Grantee’s legal representation. In agreeing to arbitrate Grantee’s claims, Grantee recognizes that Grantee is waiving Grantee’s right to a trial in court and by a jury. The arbitration award shall be binding upon Grantee, the Company, the Employer, and any Affiliate and judgment upon the award may be entered in a court of competent jurisdiction. This arbitration provision applies to, but is not limited to, statutory discrimination, harassment, and retaliation claims under federal, state and local law.

(b)Grantee agrees to waive any right to bring, participate in, or recover any relief from a class, collective or other representative action against the Company or its Affiliates to the maximum extent permitted by law. If Grantee is included in a class, collective or other representative action, Grantee will take all steps necessary to opt-out of the action or refrain from opting-in. A court must decide any issue concerning the validity of this waiver, and an arbitrator does not have the authority to consider it or to allow Grantee to serve as a representative of others in arbitration pursuant to this Section. If for any reason a court finds this waiver unenforceable, the class, collective or representative claim may only be heard in court and not arbitrated, and to the fullest extent permitted by law, Grantee waives the right to a jury for any such claims. Grantee retains the right to challenge the validity of this waiver.

(c)This arbitration provision does not apply to: (i) a claim for injunctive relief permitted under this Agreement, any Employment Agreement, offer letter, Terms and Conditions of Employment, or deferred compensation award agreement, for which jurisdiction shall be reserved in the federal and/or state courts in New York County, with the parties consenting to personal jurisdiction; (ii) any claim arising under Sarbanes-Oxley; and (iii) claims prohibited by law from being arbitrated.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer, and the Grantee has hereunto set the Grantee’s hand on the date indicated below.

COWEN INC.

Signed:

    [insert name]             Date

12

EX-10.2

Exhibit 10.2

PERFORMANCE SHARES AWARD AGREEMENT

This PERFORMANCE SHARES AWARD AGREEMENT (this “Agreement”) is made by and between Cowen Inc. (the “Company”), and (insert name) (the “Grantee”), effective March 1, 2022 (the “Grant Date”).

RECITALS

WHEREAS, the Company desires to grant to the Grantee an award of restricted stock units tied to certain performance measures described herein (the “Award”), subject to the terms of the Cowen Inc. 2020 Equity and Incentive Plan, as amended in 2021 (the “Plan”);

WHEREAS, the Award shall consist of a grant of restricted stock units (the “RSUs”) in accordance with the terms and subject to the vesting conditions set forth in this Agreement and the Plan; and

WHEREAS, the capitalized terms used but not defined herein shall have the respective meanings given to them in the Plan.

NOW, THEREFORE, it is agreed as follows:

ARTICLE I

GRANT OF RESTRICTED STOCK UNITS

Section 1.1 -Grant of Restricted Stock Units.

Pursuant to the terms and conditions and restrictions of this Agreement and the Plan, the Award granted to the Grantee by the Company as of the Grant Date consists of a target award of (insert amount) (insert amount) RSUs (the “Target RSUs”).

The actual number of RSUs that become vested and settled (each, an “Attained RSU”) shall be based on the attainment of the performance metrics (the “Performance Metrics”) provided in, and calculated under, Section 1.2.

Each RSU constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be delivered) to the Grantee upon settlement, subject to the terms of this Agreement, one share of Stock. Until such settlement and delivery, the Grantee has only the rights of a general unsecured creditor, and no rights as a shareholder of the Company, provided that, whenever a normal cash dividend is paid on shares of Stock, the Company shall credit to the Grantee an amount of cash equal to the product of the per-share amount of the dividend paid multiplied by the number of Attained RSUs as of the applicable Vesting Date (the “Dividend Equivalent Amount”). Such credited amounts shall be paid to the Grantee when and only to the extent the Stock underlying an Attained RSU is transferred to the Grantee in accordance with Section 1.2 below.

Section 1.2 -Vesting and Settlement of Awards.

(a)Normal Vesting and Settlement Schedule. The Grantee shall become vested in the Target RSUs upon December 31, 2024 (the “Vesting Date”), subject to the calculation of the Performance Metrics with respect to the three-year performance period of calendar years 2022, 2023, and 2024 (the “Performance Period”).

Exhibit 10.2

Vesting on the Vesting Date shall be conditioned on the following: (1) the Grantee remains actively employed by the Company as of the Vesting Date; or (2) as otherwise provided in Section 1.2(c), 1.2(d) and 1.2(e). The Attained RSUs will be settled as follows: (i) any Attained RSUs up to a Payout Rate (defined below) of one hundred and twenty percent (120%) will be settled in Cowen Inc. stock on March 10, 2025 (the “Settlement Date”); and (ii) any Attained RSUs above a Payout Rate of one hundred and twenty percent (120%) will be settled in undeferred cash via payroll on March 31, 2025, with the value of an Attained RSU calculated based on the volume weighted average price of Cowen Inc. stock on the Settlement Date. For the avoidance of doubt, the calculation of the Attained RSUs will be performed after the Vesting Date, but no later than the Settlement Date, once data necessary to analyze the Performance Metrics becomes available for the full Performance Period.

(b)Performance Metrics Calculation. With respect to the Target RSUs, the number of Attained RSUs shall be determined in accordance with this Section 1.2(b).

With respect to the Performance Period, as of the Vesting Date, the number of Preliminary RSUs shall be equal to the product of the Target RSUs and the applicable percentage in the table below (the “Payout Rate”) based on the Company’s AROCE (as defined in Section 2.1) with respect to the Performance Period.

AROCE Performance/Payout Scale (“ROCE Payout Scale”)

Performance Level*	AROCE	Payout Rate
Below Threshold	Below 8%	0% payout
Threshold	8%	50% payout
Above Threshold / Below Target	10%	75% payout
Target	12.5%	100% payout
Above Target	15%	125% payout
Above Target / Below Maximum	17.5%	150% payout
Maximum (capped)	Greater than 20%	200% payout

* Performance between the Threshold and the Maximum will be interpolated

The number of Attained RSUs shall be equal to the product of (A) the Preliminary RSUs and (B) the applicable Modifier indicated in the table below determined based on the Company’s TSR (as defined in Section 2.1) during such Performance Period versus the TSR of the companies comprising the S&P SmallCap 600 Financial Sector Index (the “Index”) as of the first day of each Performance Period for the same period:

TSR Modifier

Relative TSR Position	Modifier*
25th percentile and below	0.8
50th percentile	1.0
75th percentile and above	1.2

* The relative TSR will be interpolated between the 25th percentile and below and the 75th percentile. The relative TSR position will be calculated using the following formula where N is the total number of companies in the Index including Cowen and R is Cowen’s ranking compared to the Index: N-R / N-1

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Exhibit 10.2

(i)The companies comprising the Index may be changed with respect to any Performance Period as follows:

(1)In the event of a merger, acquisition or business combination transaction of a company included in the Index (an “Index Company”) with or by another Index Company, the surviving entity shall remain a company included in the Index and the company that did not survive will be excluded from the Index.

(2)In the event of a merger of an Index Company with an entity that is not a company included in the Index (a “Non-Index Company”), or the acquisition or business combination transaction by or with an Index Company, or with a Non-Index Company, in each case where the Index Company is the surviving entity and remains publicly traded, the surviving entity shall remain a company included in the Index.

(3)In the event of a merger or acquisition or business combination transaction of an Index Company, by or with a Non-Index Company, a “going private” transaction involving an Index Company or the liquidation of an Index Company, where the Index Company is not the surviving entity or is otherwise no longer publicly traded, the company will be excluded from the Index.

(4)In the event of a bankruptcy of an Index Company, such company shall remain included in the Index and will have an assigned TSR of -100%.

(5)In the event of a stock distribution from an Index Company consisting of the shares of a new publicly-traded company (a “spin-off”), if, following such stock distribution, the company making the distribution remains in the Index, then such company shall remain included in the Index and the stock distribution shall be treated as a dividend from the Index Company based on the closing price of the shares of the spun-off company on its first day of trading. The performance of the shares of the spun-off company shall not thereafter be tracked for purposes of calculating TSR. If, following such stock distribution, the company making the distribution is no longer included in the Index, then such company and the related stock distribution shall not thereafter be tracked for purposes of calculating TSR.

(6)Companies that are added to the Index after the beginning of the applicable Performance Period will not be tracked for purposes of calculating TSR for the Index. Companies that are removed from the Index after the beginning of the applicable Performance Period will nonetheless continue to be considered companies included in the Index for purposes of calculating TSR.

(c)Vesting and Settlement in the Event of a Qualifying Termination. If, prior to the Vesting Date, the Grantee experiences a Qualifying Termination, then provided that the Grantee executes, delivers and does not revoke a Release of Claims, the Attained RSUs shall be determined in accordance with Section 1.2(b) as if the Grantee had continued to be actively

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Exhibit 10.2

employed by the Company through the Vesting Date. Such Attained RSUs will be settled on the Settlement Date.

(d)Vesting and Settlement in the Event of a Termination of Employment Due to Death or Disability. Notwithstanding any provision in this Agreement to the contrary, if, prior to the Vesting Date, the Grantee’s employment terminates due to his death or Disability, the Target RSUs shall vest and be settled in full within sixty (60) days after the Grantee’s employment terminates, provided, that the Grantee or his executor or estate, as applicable, executes, delivers and does not revoke a Release of Claims. For purposes of vesting under this Section, the Vesting Date shall be the date Grantee’s employment terminates.

(e)Vesting and Settlement in the Event of a Change in Control. Notwithstanding any provision of this Agreement to the contrary, if, prior to the Vesting Date, the Company experiences a Change in Control, the Performance Metrics set forth in subsection (b) will no longer apply to any unvested Target RSUs. Instead, after a Change in Control, the Target RSUs shall vest on the Vesting Date, without regard to the Performance Metrics, as long as the Grantee remains actively employed by the Company on the Vesting Date, or in the event of a Qualifying Termination, Death or Disability, any unvested Target RSUs shall vest as of the date Grantee’s employment terminates and shall be settled in full within sixty (60) days after the Grantee’s employment terminates; provided, that the Grantee or his executor or estate, as applicable, executes, delivers and does not revoke a Release of Claims.

Section 1.3 -Forfeiture.

Except as provided in Section 1.2, upon the Grantee’s Termination of Employment, any unvested RSUs shall immediately be forfeited to the Company, and neither the Grantee nor any of the Grantee’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such then forfeited RSUs.

Section 1.4 -Taxes.

The Company agrees to withhold from the settlement of any portion of the Award, the minimum amount required by the federal, state, and local taxes and withholdings the Company determines are required to be withheld under applicable tax laws with respect to the Award (the “Tax Withholding Amount”), and subject to the conditions and restrictions of this Agreement and the Plan. Payment of the Tax Withholding Amount shall be effected by the Company as follows: (i) with respect to Attained RSUs settled in Stock: (x) withholding the number of shares of Stock with an aggregate Fair Market Value equal to the Tax Withholding Amount, (y) selling shares to cover the Tax Withholding Amount on the open market or (z) any combination of these methods; and (ii) with respect to Attained RSUs settled in undeferred cash, the amount paid to the Grantee will be reduced by the Tax Withholding Amount. “Fair Market Value” of an Attained RSU will be calculated based on the closing price of Cowen Inc. stock on March 10, 2025.

ARTICLE II

MISCELLANEOUS

Section 2.1 -Definitions. Notwithstanding the definitions set forth in this Section, if Grantee is subject to an employment agreement, effective as of the Grant Date, that defines

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Exhibit 10.2

“Cause,” “Disability,” “Good Reason,” and “Release of Claims”, or that contains criteria for retirement, such terms shall have the meaning set forth in that employment agreement.

(a)“Accumulated Shares” means, for a given trading day, the sum of (i) one (1) share and (ii) the cumulative number of shares of the company’s common stock purchasable with dividends declared on the company’s common stock to that point during the Performance Period, assuming same day reinvestment of such dividends at the closing price on the ex-dividend date.

(b) “Adjusted Economic Operating Income” means, with respect to each fiscal year during a Performance Period, the Company’s Economic Operating Income, as adjusted for the following: (i) expenses greater than one million dollars ($1,000,000) associated with strategic initiatives undertaken by the Company shall be amortized over a five (5) year period as opposed to being expensed in the period in which they are incurred, (ii) adjustments resulting from changes in an existing, or application of a new, accounting principle that is not applied on a fully retrospective basis shall be excluded; (iii) a change in the Company’s statutory corporate tax rate to a rate other than those in effect as of the date of this Award Agreement; and (iv) other extraordinary items of income or loss may be excluded at the discretion of the Compensation Committee of the Board of Directors of the Company.

(c)“Affiliate” means, with respect to any entity, any other entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity.

(d)“AROCE” means the Company’s average return on common equity on an after-tax basis for the Performance Period which will be determined by (i) taking the sum of the Company’s Adjusted Economic Operating Income less the payment of dividends on the Company’s outstanding preferred stock during each of the fiscal years during the Performance Period divided by the average Common Equity of the Company during each such fiscal year (with the average Common Equity for each fiscal year calculated by adding the Common Equity at the beginning of such fiscal year and the Common Equity at the end of such fiscal year and dividing by two) and (ii) dividing such sum by three.

(e)“Cause” means when Cowen or its Affiliate employing Grantee, in its sole discretion in good faith, determines that: (i) the Grantee has breached any material provision of the Plan; Grantee’s employment agreement, offer letter, terms and conditions of employment, or any deferred compensation award agreement; (ii) the Grantee has been indicted for, convicted of, pled guilty or nolo contendere to, or committed any felony, or has been convicted of or pled guilty or nolo contendere to any other crime (whether or not related to the Grantee’s duties for Cowen or any Affiliate) with the exception of minor traffic offenses; (iii) the Grantee has committed an act of fraud, dishonesty, gross negligence, or substantial misconduct in his performance of his duties or responsibilities; (iv) the Grantee has violated or has failed to comply with the internal policies of Cowen or any Affiliate, including its policies against discrimination, harassment or retaliation, or the rules and regulations of any regulatory or self-regulatory organization with jurisdiction over the Employer or any Affiliate, as applicable to Grantee; (v) the Grantee has failed to perform a material duty of Grantee’s position including, by way of example and not of limitation, Grantee’s insubordination, or failure or refusal to follow an instruction reasonably given by Grantee’s superiors in the course of employment; and (vi) the Grantee has committed an act which results in negative publicity to the Company, regardless of whether such act occurred within the performance of his or her duties or responsibilities.

(f)“Closing Average Period” means the 20 trading days immediately preceding the end of the applicable Performance Period.

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Exhibit 10.2

(g)“Closing Average Share Value” means the average Share Value over the trading days in the Closing Average Period.

(h)“CommonEquity” is common equity of the Company.

(i)“Disability” means that the Grantee (i) is unable to engage in any substantial gainful activity, with or without reasonable accommodation, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of Cowen or any Affiliate.

(j)“Economic Operating Income” means, with respect to a fiscal year, the total of the Company’s “Economic Operating Income” as reported in the Company’s Annual Report, filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended.

(k)“Good Standing” means that Grantee remains actively employed and (i) has not been given notice of the termination of Grantee’s employment; (ii) has not given notice of resignation or resigned, other than notice of a Qualifying Retirement; and (iii) is not currently suspended or under investigation for conduct that could, in the Company’s good faith determination, result in a termination for Cause.

(l)“Opening Average Period” means the 20 trading days preceding the applicable Performance Period.

(m)“Opening Average Share Value” means the average Share Value over the trading days in the Opening Average Period.

(n)“Qualifying Retirement” means the Grantee’s voluntary resignation that satisfies each of the following conditions: (i) as of the date Grantee provides resignation notice: (A) Grantee is at least fifty-eight (58) years of age, (B) Grantee’s Length of Service is at least five (5) years; and (C) Grantee’s age plus Length of Service equals at least sixty-eight (68) years; (ii) Grantee has provided the Employer with at least six (6) months prior written notice of the Grantee’s intention to voluntarily resign in order to retire (such notice to specify, among other things as may be required by the Employer, the intended Retirement Date); (iii) the Grantee continues to use his or her best efforts in the performance of his or her duties and responsibilities, including hiring Grantee’s replacement if requested by the Company, through Grantee’s Retirement Date; (vi) Grantee remains in Good Standing with the Employer through Grantee’s Retirement Date, and (v) Cause does not exist from the time the resignation notice is provided by the Grantee through the Grantee’s Retirement Date.

(o)“Qualifying Termination”means the Grantee’s Termination of Employment due to (i) termination by the Company without “Cause”; (ii) termination of the Grantee’s employment due to a resignation for “Good Reason” if applicable to Grantee pursuant to an employment agreement effective as of the Grant Date; or (iii) a Qualifying Retirement.

(p)“Release of Claims” meansa general release of claims in favor of the Company and its Affiliates, in a form requested by the Company, returnable within twenty-one (21) days (or such longer period as required by law for the release to become effective, but in no event longer than fifty (50) days).

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Exhibit 10.2

(q)“Share Value” means, with respect to a given trading day, the closing price of the company’s common stock multiplied by the Accumulated Shares for such trading day. Each Index Company’s “common stock” shall mean that series of common stock that is publicly traded on a registered U.S. exchange or, in the case of a non-U.S. company, an equivalent non-U.S. exchange. For purposes of calculating TSR, the value on any given trading day of any Index Company shares traded on a foreign exchange will be converted to U.S. dollars.

(r) “Termination of Employment” means a “separation from service,” as defined under Section 409A of the Code.

(s)“TSR” means, for the Company and each Index Company, the company’s total shareholder return, expressed as a percentage, which will be calculated by dividing (i) the Closing Average Share Value by (ii) the Opening Average Share Value and subtracting one from the quotient.

Section 2.2 - Award Subject to Plan Provisions

This Award is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. The Award is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan including, but not limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the registration, qualification or listing of the shares issued under the Plan, (c) changes in capitalization of the Company and (d) other requirements of applicable law.

Section 2.3 - Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of New York other than its laws regarding conflicts of law (to the extent that the application of the laws of another jurisdiction would be required thereby).

Section 2.4 - Interpretation of Agreement.

Subject to the Plan, the Board shall have the final authority to interpret and construe in good faith this Agreement pursuant to the terms of the Plan and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Grantee and the Grantee’s legal representative in respect of any questions arising under this Agreement.

Section 2.5 - Notices.

Any notice, other than notice by the Company relating to the Tax Withholding Amount pursuant to Section 1.4 above, to be given under the terms of this Agreement shall be in writing and addressed to the Company at 599 Lexington Avenue, New York, New York 10022, Attention: Head of Human Resources, and to the Grantee at the Grantee’s last known home address provided by the Grantee to the Company as of the date of notice or at such other address as either party may hereafter designate in writing to the other by like notice. Notice by the Company relating to the Tax Withholding Amount pursuant to Section 1.4 may be sent to the Grantee via e-mail.

Section 2.6 - Effect of Agreement.

Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company. This Agreement shall become effective and binding on the Company when signed by a duly authorized signatory of the

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Exhibit 10.2

Company. The Grantee agrees to acknowledge receipt of the Agreement by signing and delivering this Agreement to the Company’s Human Resources Department within fifteen (15) days of the Grant Date.

Section 2.7 - Complete Agreement/Severability.

This Agreement may not be amended or modified in any manner (including by waiver) except by an instrument in writing signed by both parties hereto. The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of such party of a provision of this Agreement. Any provision of this Agreement held legally invalid or unenforceable shall not affect the enforceability of the remaining provisions.

Section 2.8 - No Right to Continued Employment.

Nothing in this Agreement shall be deemed to confer on the Grantee any right to continued employment with the Company or any Affiliate.

Section 2.9 - Section 409A.

This Agreement is intended to comply with the requirements of Section 409A of the Code, and shall be interpreted accordingly. Any settlement or payment otherwise required to be made hereunder to the Grantee at any date as a result of the Grantee’s Termination of Employment shall be delayed for such period of time to the extent necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the “Delay Period”).In the event that any provision of this Agreement would cause this Agreement to fail to comply with Section 409A of the Code, such provision may be deemed null and void, and the Company and the Grantee agree to amend or restructure this Agreement to the extent necessary and appropriate to avoid adverse tax consequences under Section 409A.

Section 2.10 - Entire Agreement.

Except as otherwise specified herein, this Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes in its entirety all prior undertakings, agreements, correspondence, and term sheets of or between the Company and the Grantee with respect to the subject matter hereof.

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Exhibit 10.2

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer.

COWEN INC.

Signed:

Acknowledged:

Signed:     [insert name]            Date

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EX-10.3

Exhibit 10.3

COWEN DIGITAL HOLDINGS
2022 EQUITY UNIT INCENTIVE PLAN

Article I
PURPOSE OF PLAN

The Cowen Digital Holdings 2022 Equity Unit Incentive Plan (this “Plan”) is designed to (a) promote the long-term financial interests and growth of Cowen Digital Holdings LLC (the “Company”) and its Affiliates by attracting and retaining management and other personnel with the training, experience and ability to enable them to make a substantial contribution to the success of the Company; (b) motivate management personnel by means of growth-related incentives to achieve long-range goals; and (c) further the alignment of interests of Participants with those of the members of the Company through opportunities for equity and cash incentives in the Company.

Article IIDEFINITIONS

Terms that are capitalized but not defined herein shall have the meanings prescribed by the ManagementCo LLC Agreement (as defined below); and any term that is capitalized and not defined herein or in the ManagementCo LLC Agreement shall have the meaning prescribed by the Company LLC Agreement (as defined below). As used in this Plan, the following words shall have the following meanings:

“Award” means Upstairs Class B Units, Phantom Units, or a Cash Award granted to a Participant pursuant to this Plan.

“Award Agreement” means a written document, in a form approved by the Committee that is executed by the Company or MangementCo and a Participant and sets forth the terms, conditions, and limitations applicable to an Award.

“Board” means the Board of Managers of the Company.

“Cash Award” means an award granted under the Plan (other than Upstairs Class B Units or Phantom Units) that provides an opportunity to receive one or more cash payments subject to satisfying performance objectives and vesting and other conditions as determined by the Committee and set forth in the applicable Award Agreement.

“Cause” means, with respect to a Participant and in the absence of an Award Agreement or an individual employment, consulting, or similar written agreement between the Participant and the Company or any of its Affiliates in effect as of the grant date for an applicable Award Agreement (a “Participant Agreement”) otherwise defining Cause, (a) the Participant’s breach of any material provision of the Plan, an Award Agreement, or any other agreement involving the Company or an Affiliate; (b) the Participant’s indictment for, conviction of, plea of guilty or nolo contendere to, or commission of a felony, or conviction of, or plea of guilty or nolo contendere to any other crime (whether or not related to the Participant’s duties for the Service Recipient or any Affiliate); (c) the Participant’s commission of any act of fraud, dishonesty, gross negligence, or substantial misconduct in his or her performance of his or her duties or responsibilities; (d) the Participant’s violation of or failure to comply with the internal policies of the Service Recipient or any Affiliate, including its policies against discrimination, harassment or retaliation, or the rules and regulations of any regulatory or self-regulatory organization with jurisdiction over the Service Recipient or any Affiliate; (e) the Participant’s failure to perform a material duty of the Participant’s position including the Participant’s insubordination, or failure or refusal to follow any instruction reasonably given by the Participant’s superiors in the course of employment; or

Exhibit 10.3

(f) the Participant’s commission of any act which results in negative publicity to the Company, regardless of whether such act occurred within the performance of his or her duties or responsibilities. If, subsequent to a Participant’s Termination for any reason other than by the Service Recipient for Cause, it is discovered that the Participant’s employment or service could have been terminated for Cause, such Participant’s employment or service shall, at the discretion of the Committee, be deemed to have been terminated by the Service Recipient for Cause for all purposes under the Plan, and the Participant shall be required to repay to the Company all amounts received by him or her in respect of any Award to the extent exceeding the amount the Participant would have been entitled to receive had had such Termination been by the Service Recipient for Cause. If an Award Agreement or Participant Agreement defines Cause, “Cause” shall have the meaning provided in such agreement.

“Committee” means the committee described in Article III. If such a committee has not been appointed by the Board, the Board shall be deemed to be the Committee for purposes of this Plan.

“Company” means Cowen Digital Holdings LLC.

“Company LLC Agreement” means the limited liability company agreement of the Company as in effect and amended from time to time.

“Fair Market Value” means (a) with respect to the Company or ManagementCo, the fair market value of the Company or ManagementCo (as applicable), as determined by the Board using the reasonable application of a reasonable valuation method, and (b) with respect to any Upstairs Class B Unit, the value per unit, as determined by the Board and subject to the terms of the applicable Award Agreement. Except as otherwise set forth in any Award Agreement, Fair Market Value shall be determined in good faith by the Board and such determination shall be final and binding.

“ManagementCo” means CDIG Management Co. LLC, a Delaware limited liability company.

“ManagementCo LLC Agreement” means the limited liability company agreement of ManagementCoas in effect and amended from time to time.

“Participant” means an employee, director, member, consultant, or other service provider of the Company or any of its Affiliates who is selected by the Board or the Committee to participate in this Plan.

“Phantom Unit” means a right to receive payments in an amount that is determined by reference to the value of a Class B Unit or an Upstairs Class B Units. Each Phantom Unit shall be subject to vesting, payment, and other terms and conditions that are determined by the Committee and set forth in the applicable Award Agreement. Without limiting the generality of the foregoing, the payment terms for each Phantom Unit shall be structured to qualify for an exemption from Section 409A of the Code (e.g., the “short-term deferral” rule) or to comply with the requirements to avoid tax under Section 409A of the Code.

“Service Recipient” means, with respect to a Participant, the Company or Affiliate of the Company that employs the Participant or, for a Participant who is not an employee, is the principal recipient of the Participant’s services. Following a Termination, the Service Recipient means the Company or Affiliate that most recently employed the Participant or was most recently the principal recipient of the Participant’s services.

2

Exhibit 10.3

“Termination” means the termination of a Participant’s employment or service, as applicable, with the Service Recipient and its Affiliates. Unless otherwise determined by the Committee, if the Service Recipient ceases to be an Affiliate of the Company (by reason of sale, divestiture, spin-off, or other similar transaction), and the Participant’s employment or service is not transferred to an Affiliate of the Company, such Participant shall be deemed to have had a Termination hereunder as of the date of the consummation of such transaction. To the extent used in connection with the time of payment or settlement of any Award that is subject to Section 409A of the Code, Termination shall mean the Participant’s “separation from service” within the meaning of Section 409A.

“Upstairs Class B Unit” means an Upstairs Class B Unit of ManagementCoas defined in the ManagementCo LLC Agreement.

Article IIIADMINISTRATION

3.1Generally. This Plan shall be administered by the Board or a committee consisting of one or more members of the Board. The members of the Committee shall be selected by the Board. During any period of time in which this Plan is administered by the Board, all references in this Plan or any Award Agreement to the Committee shall be deemed to refer to the Board.

3.2Power of the Committee. Except as otherwise provided in an Award Agreement, the Committee shall have full power and authority to administer and interpret this Plan, Awards granted under this Plan, and each Award Agreement, including the powers to (a) exercise all of the powers granted to it under this Plan; (b) construe, interpret, and implement this Plan and any Award Agreement; (c) prescribe, amend, and rescind rules and regulations relating to this Plan, including rules governing its own operations; (d) make all determinations necessary or advisable in administering this Plan, Awards, and any Award Agreements; (e) resolve any ambiguity, correct any defect, exercise discretion, supply any omission, and reconcile any inconsistency in this Plan, each Award, and each Award Agreement; (f) amend this Plan, each Award, and each Award Agreement (to the extent permitted by Article IX or the Award Agreement, as applicable); (g) determine the Service Providers who will be Participants; (h) grant Awards under this Plan and determine the terms and conditions of such Awards, consistent with the this Plan; (i) delegate such powers and authority to such Persons as it deems appropriate, provided that any such delegation is consistent with applicable law and any guidelines as may be established by the Board from time to time; and (j) waive any forfeiture, vesting, or other conditions under any Awards. The reasonable, good faith determination of the Committee on all matters relating to this Plan, each Award Agreement, and each Award shall be final, binding, and conclusive upon all Persons.

3.3Professional Assistance; Committee Actions. The Committee may employ counsel, consultants, accountants, appraisers, brokers, and other Persons at the expense of the Company. The Board, Committee, Company, and the officers of the Company shall be entitled to rely upon the advice, opinions, and valuations, as applicable, of any such Persons. Except as otherwise provided in an Award Agreement, all actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon all Participants, the Company, and all other interested Persons.

3

Exhibit 10.3

Article IVAWARDS

4.1Grant of Awards. The Committee has sole discretion to grant Awards under the Plan and to determine the amounts, terms, conditions, and limitations of such Awards, consistent with the terms of this Plan. The amount, terms, conditions, and limitations of each Award under this Plan shall be set forth in an Award Agreement. Without limiting the generality of the foregoing, such terms and conditions may include restrictive covenants and a requirement that the Participant execute a release of claims as a condition of vesting, settlement, and/or payment of all or any portion of the Award.

4.2LLC Agreement. As a condition to the grant of Upstairs Class B Units, the applicable Participant will be required to become a party to the ManagementCo LLC Agreement (and, if applicable, his or her spouse shall execute a spousal joinder agreement in the form provided by the Companyor ManagementCo), and any other grant of equity shall be conditioned on the Participant becoming a party to the applicable entity’s governing documents. In addition, each Award is conditioned on the Participant executing such documents and instruments as are reasonably and customarily required by the Company to evidence compliance with applicable federal and state securities and “blue sky” laws, or as otherwise reasonably requested by the Company. All Upstairs Class B Units acquired under this Plan will be held subject to, and in compliance with, the terms and conditions of the ManagementCo LLC Agreement.

Article VUPSTAIRS CLASS B UNITS SUBJECT TO THIS PLAN; LIMITATIONS AND CONDITIONS

5.1Units Available for Awards. Subject to Article VII, the ManagementCo LLC Agreement allows the issuance of Upstairs Class B Units under this Plan, subject to not exceeding a number of units permitted by the ManagementCo LLC Agreement (“Plan Unit Reserve”). Phantom Units and Cash-Based Awards shall not count toward the Plan Unit Reserve; provided that if a Phantom Unit or Cash-Based Award is paid or settled in the form of Upstairs Class B Units, such Upstairs Class B Units shall count toward the Plan Unit Reserve. Unless restricted by applicable law, to the extent that an Award is forfeited, expired, repurchased, terminated, and/or canceled, the Upstairs Class B Units underlying such Award shall immediately become available for new Awards.

5.2Terms of Awards. At the time an Award is made or amended or the terms or conditions of an Award are changed, the Committee may provide for limitations or conditions (including vesting terms and conditions) on such Award in accordance with this Plan.

5.3Transfer Restrictions. Other than as specifically provided in the ManagementCo LLC Agreement or the applicable Award Agreement, no Award or benefit under this Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void. Unless otherwise determined by the Committee and permitted by the ManagementCo LLC Agreement or applicable Award Agreement, no Award shall be transferable or assignable by the Participant other than by will or by the laws of descent and distribution.

5.4Rights as Members. Other than as specifically provided in the ManagementCo LLC Agreement, the Company LLC Agreement, or the Award Agreement, Participants shall not be, and shall not have any of the rights or privileges of, members of ManagementCoor the Company in respect of any Awards settled, convertible or exchangeable into Upstairs Class B Units, unless and until book entry representing such Upstairs Class B Units has been made and

4

Exhibit 10.3

the Participant has been admitted as a member pursuant to the ManagementCo LLC Agreement or Company LLC Agreement, as applicable.

5.5Coordination with Other Benefit Plans. Absent express provisions to the contrary in an applicable retirement, severance, or other benefit plan or arrangement, no Award under this Plan, and no amount payable in respect of any Award, (a) shall be deemed compensation for purposes of computing benefits or contributions under any retirement, severance, or other benefit plan of the Company or its Affiliates or (b) shall affect any benefits under any other benefit plan of any kind now or subsequently in effect under which the availability or amount of benefits is related to level of compensation.

Article VITRANSFERS AND LEAVES OF ABSENCE

For purposes of this Plan, unless the Committee determines otherwise: (1) a transfer of a Participant’s service to another Affiliate of the Company, without an intervening period of separation, shall not be deemed a Termination, and (2) a Participant who is on an approved leave of absence shall be deemed to have remained in the service of the Service Recipient during such leave of absence.

Article VIIADJUSTMENTS FOR CHANGES IN CAPITALIZATION AND REORGANIZATION EVENTS

7.1Unit Change. In the event of an equity dividend, equity split, reverse equity split, separation, spinoff, reorganization, extraordinary dividend of cash or other property, equity combination, or recapitalization, reclassification, reorganization, merger, consolidation, conversion, split-up, spin-off, combination or exchange, or similar event affecting the capital structure of ManagementCo or the Company (each, a “Unit Change”), the Committee may, in all cases subject to the ManagementCo LLC Agreement and Company LLC Agreement, as applicable, adjust any or all of (a) the number and kind of Upstairs Class B Units subject to this Plan, as set forth in Section 5.1, and available for or covered by Awards; (b) the performance goals (if any) affecting the vesting or payment of such Awards; (c) the Repurchase Price per Repurchase Unit, to the extent not tied to Fair Market Value of the Repurchase Unit (each as defined in Article VIII hereof); and (d) any other provisions of Awards affected by such Unit Change as it deems, in good faith, to be required, equitable, or otherwise appropriate to effect the intent of the Awards.

7.2Reorganization Event. In the event of a merger, consolidation, acquisition of property or shares, Unit rights offering, liquidation, disaffiliation (including a Sale of the Company), spinoff, exchange, or similar transaction or event (each, a “Reorganization Event”), the Committee shall in its discretion and in such manner and on such terms and conditions as it, in good faith, deems appropriate, and in all cases subject to the ManagementCo LLC Agreement and Company LLC Agreement, as applicable, make such substitutions or adjustments as it deems appropriate and equitable to the outstanding Awards. Without limiting the generality of the foregoing, in the event of a Reorganization Event the Committee may take any one or more of the following actions:

(a)the Committee may provide, either by the terms of the agreement governing such transaction or by action taken prior to the occurrence of such transaction or event, for either (i) the cancellation of all or any portion of the outstanding Awards for an amount of cash or other property or a combination thereof having an aggregate value equal to the amount, if any, that could have been realized and/or attained in respect of such Awards (or portions thereof) as a result of a Reorganization Event had such Awards (or portion thereof) been

5

Exhibit 10.3

fully vested, as determined by the Committee in its sole discretion; provided,that, if the Committee determines in good faith that a Participant would not realize and/or attain any amounts in respect of such Awards (or portions thereof) as a result of the Reorganization Event had such Awards (or portion thereof) been fully vested at the time of the Reorganization Event, then the Committee may, in its sole discretion, cancel such Award for no consideration effective as of the effective date of the Reorganization Event, or (ii) the replacement of an Award, whether vested or unvested, with other rights or property, including cash or a new equity award such as an option, stock appreciation right, or full-value equity award, selected by the Committee in its sole discretion, which replacement award may be subject to vesting or the lapsing of restrictions, as applicable, on terms not substantially less favorable in the aggregate to the affected Participant than the terms of the Award for which such replacement award is substituted;

(b)the Committee may provide, either by the terms of such Award or by action taken prior to the occurrence of such transaction or event, that upon such event, such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or shall be substituted for by similar awards covering the securities of the successor or survivor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of securities subject to such Award, any Profits Interest Hurdle and/or any performance goals governing the vesting and/or payment of such Awards; and

(c)the Committee may make adjustments in the number and type of Upstairs Class B Units and Phantom Units subject to outstanding Awards, or in the terms and conditions of any Awards (including the Profits Interest Hurdle, repurchase price, vesting, payment schedule, and/or the performance goals, if any, governing the vesting or value of such Awards), and the criteria included in, outstanding Awards and the related agreements and Awards which may be granted in the future.

7.3Fractional Units. Any adjustment provided under this Article VII may, in the Committee’s discretion, provide for the cash payment of any fractional Upstairs Class B Unit and/or Phantom Unit that might otherwise become subject to an Award.

7.4Other Distributions. The Committee may in its discretion also make adjustments of the type described in this Article VII to take into account distributions to Members or any other event if the Committee determines that adjustments are appropriate to avoid distortions in the operation of this Plan and to preserve the value of Awards made hereunder.

7.5Other Units. References in this Plan to Upstairs Class B Units shall be construed to include any securities resulting from any adjustment described in this Article VII.

Article VIIICOMPANY REPURCHASE OPTION

8.1General.Unless otherwise expressly provided in a Participant’s Award Agreement and without limitation of any repurchase or other transfer terms set forth in the ManagementCo LLC Agreement and Company LLC Agreement, as applicable, the provisions of this Article VIII shall apply to all Awards granted under the Plan.

8.2Right of Repurchase. If a Participant (i) experiences a Termination that results in cessation of vesting (as determined by the applicable Award Agreement) or (ii) breaches any non-competition, non-solicitation, no-hire, non-disparagement, intellectual property, confidential or proprietary information, or similar restrictive covenant or obligation in favor of the Company or any of its Affiliates (a “Triggering Event”), then in each case the Participant will no longer be eligible for further vesting of any Award, and the Company shall have the right to cause the ManagementCo to acquire from the Participant (or the Participant’s estate), in accordance with

6

Exhibit 10.3

this Section, any or all of the Units previously issued to the Participant under any Award under the Plan, to the extent not forfeited (the “Repurchase Right”). For each Upstairs Class B Unit that is repurchased by the ManagementCo, a Class B Unit of the Company shall be sold to the Company for the same price.

8.3Exercise of Repurchase Right. The Company may cause the ManagementCo to exercise the Repurchase Right by delivering a written notice to the Participant indicating the number of Units to be repurchased (the “Repurchase Units”) and the aggregate purchase price therefor (the “Repurchase Notice”). The Repurchase Right may be exercised for a period of twelve (12) months following the occurrence of any Triggering Event (as applicable, the “Repurchase Right Exercise Period”).

8.4Repurchase Price. The amount payable by the ManagementCo for each Repurchase Unit to be repurchased shall be as follows:

(a)In the event of Termination for Cause (including a determination that Cause existed before the Termination) or breach by the Participant, before the first anniversary of the Termination, of a restrictive covenant under the Award Agreement, the amount payable shall be $0.01 per Repurchase Unit (subject to adjustment in the event of a Unit Change or Reorganization Event).

(b)In the absence of an event described in subsection (a), above, the amount payable shall be the Fair Market Value of the Repurchase Units to be repurchased, unless otherwise expressly provided in the applicable Award Agreement.

The aggregate amounts payable under this Section 8.4 shall be the “Repurchase Price”.

8.5Closing of Repurchase. Subject to Section 8.7 hereof, the closing of the Repurchase Right shall take place at the offices of the Company, or at such other location (including a virtual location) designated by the Company, within thirty (30) days after the delivery of the Repurchase Notice. At the closing, the Participant shall execute and deliver to the Company instruments of transfer, in form and substance satisfactory to the Company (which may be electronic), sufficient to transfer the purchased Units to the ManagementCo free and clear of all liens, restrictions, security interests and encumbrances. In the event of any continued failure and/or refusal by a Participant to execute and deliver any instruments of transfer described above in this Section 8.5 within one hundred eighty (180) days following delivery of the Repurchase Notice, the Participant will be deemed to be in material breach of the Plan and the Award Agreement and deemed to waive and release all claims and rights in respect of the Repurchase Units or the Repurchase Price, and the Repurchase Units shall be forfeited, terminated, and canceled for no consideration. Thereafter, the underlying Upstairs Class B Units shall immediately become available for new Awards under the Plan in accordance with Section 5.1 of the Plan.

8.6Payment of Repurchase Price. Except as provided by the Committee in an Award Agreement, if the Repurchase Right is exercised, the Repurchase Price shall be paid in cash at the time of repurchase or by issuance of a promissory note equal to the Repurchase Price (less any portion of such Repurchase Price paid in cash); provided that such promissory note shall have a maturity date no more than three (3) years from the closing date of such repurchase, shall bear simple interest at a fixed rate equal to the applicable federal rate of interest then in effect (compounded annually), and shall be payable as to interest and principal on the maturity date.

8.7Delay of Repurchase. Notwithstanding anything contained in this Article VIII to the contrary, in the event that any repurchase described herein would result in a default under any applicable financing documents of any member of the Company or any of its Affiliates or would

7

Exhibit 10.3

otherwise be prohibited by applicable law or would result in adverse accounting results for the Company or its Affiliates (as applicable, a “Prohibition Event”), commencement of the applicable Repurchase Right Exercise Period shall be delayed until the Prohibition Event ceases to exist. Without limiting the foregoing, the Company shall be permitted to assign the Repurchase Right.

8.8    Participant Representations; Release of Claims. In connection with any repurchase of Repurchase Units pursuant to this Article VIII, the Company and the ManagementCo will be entitled to receive customary representations and warranties from the Participant regarding the repurchase of such Units as may be reasonably requested by the Company or the ManagementCo including the representation that the Participant has good and marketable title to such Units to be transferred and is free and clear of all liens, claims and other encumbrances. Without limiting the generality of the foregoing, subject to the terms of the applicable Award Agreement, the Committee may condition the Participant’s right to receive payment of the Repurchase Price on the Participant timely executing, delivering, and not revoking a general release of claims in favor of the Company and its Affiliates, in such form as may be requested by the Company. In the event of any failure and/or refusal by a Participant to timely execute and deliver any release described above in this Section 8.8, the Participant will be deemed to be in material breach of the Plan and Award Agreement and to waive and release all claims and rights in respect of the Repurchase Units and the Repurchase Price, and the Repurchase Units shall be forfeited, terminated, and canceled for no consideration. Thereafter, the underlying Upstairs Class B Units shall immediately become available for new Awards under the Plan in accordance with Section 5.1 of the Plan.

Article IXAMENDMENT AND TERMINATION

9.1Awards. The Committee may amend outstanding Awards at any time and for any reason; provided that no such action shall modify an Award in a manner adverse to the applicable Participant without the Participant’s consent, except to the extent such modification is provided for or contemplated in the terms of the Award or this Plan (including, for the avoidance of doubt, pursuant to Article VII) or for the purpose of complying with applicable law or ensuring that the Upstairs Class B Units constitute “profits interests” within the meaning of Revenue Procedure 93-27, 1993-2 C.B. 343 and Revenue Procedure 2001-43, 2001-2 C.B. 191.

9.2Plan. The Board may amend, suspend, or terminate this Plan at any time and for any reason; provided that no such action shall affect an outstanding Award in a manner adverse to the applicable Participant without the Participant’s consent, except to the extent such action is provided for or contemplated in the terms of the Award, this Plan (including, for the avoidance of doubt, pursuant to Article VII), the Management Co LLC Agreement or Company LLC Agreement, as applicable, or for the purpose of complying with applicable law.

Article XGOVERNING LAW

10.1Generally. This Plan, the legal relations between the parties, and the adjudication and the enforcement thereof shall be governed by and interpreted and construed in accordance with the laws of the State of Delaware applicable to agreements made and to be performed entirely within the State of Delaware, without regard to the conflict of law provisions thereof that could otherwise result in the application of the laws of any other jurisdiction.

10.2Non-U.S. Participants. If an Award is granted to a Person who is subject to the laws of jurisdictions other than those of the United States, such Award may have special terms

8

Exhibit 10.3

and conditions for the purpose of complying with non-U.S. laws or otherwise as deemed to be necessary or desirable by the Committee.

Article XITAXES

11.1Section 409A of the Code. It is intended that all Awards under this Plan and any Award Agreement be exempt from, or comply with the requirements to avoid tax under, Section 409A of the Code. This Plan and each Award Agreement shall be interpreted accordingly. In the case of an Award that constitutes a “nonqualified deferred compensation plan” subject to Section 409A of the Code, with respect to any provision providing for payment in connection with a Participant’s Termination, no termination of employment shall be deemed a Termination for purposes of such Award unless it is a “separation from service” under Section 409A of the Code. To the extent applicable, as determined in the sole discretion of the Committee with and upon advice of counsel, each amount or benefit payable pursuant to this Plan and any Award Agreement shall be deemed a separate payment for purposes of Section 409A of the Code, and in no event may a Participant, directly or indirectly, designate the calendar year of any payment to be made under this Plan or any Award Agreement. If a Participant is a “specified employee” (as determined under the Company’s administrative procedure for such determinations, in accordance with Section 409A of the Code) at the time of the Participant’s termination of employment, any payments under this Plan or any Award Agreement that are deemed to be non-qualified deferred compensation subject to Section 409A of the Code and that are payable (whether in cash, Units, or other property) in connection with the Participant’s separation from service shall not be paid or begin payment until the earlier of the Participant’s death and the first day following the six-month anniversary of the Participant’s separation from service.

11.2Tax Withholding. The ManagementCo, Company or any Affiliate or designee thereof shall be entitled to withhold any amounts that it determines to be required under federal, state, local and/or foreign tax rules in respect of any Award, and may take such action as it deems appropriate to ensure compliance with such withholding requirements. Without limiting the generality of the foregoing withholding may be collected by (a) requiring the Participant to pay or provide for payment of the applicable withholding amount, (b) deducting the applicable withholding amount from any amount otherwise payable to the Participant in cash (whether related to the Award or otherwise), or (c) if approved by the Committee, withholding Upstairs Class B Units having a Fair Market Value of the withholding amount. Regardless of the amount withheld or reported in respect of any Award or payment, each Participant is solely responsible for all taxes in respect of his or her Award(s) (including taxes on imputed income) except to the extent applicable law directly imposes a tax on the employer (i.e., in respect of an employee, the employer’s share of employment taxes). If any amounts are withheld and paid over to the appropriate taxing authority pursuant to this Section 11.2, such amounts shall be treated as having been paid to the Participant.

Article XIIMISCELLANEOUS

12.1ERISA. This Plan is not subject to the Employee Retirement Income Security Act of 1974, as amended.

12.2No Right of Employment or Service. Nothing contained herein, in any Award Agreement, or in any Award shall confer on any employee, director, or consultant any right to be continued in the employ or service of the Company or any Affiliates or affect any employee’s status as an at-will employee; nor shall anything contained herein, in any Award Agreement or an Award affect any rights which the Company or its Affiliates may have to change a person’s

9

Exhibit 10.3

compensation or other benefits or terminate such person’s employment or association with the Company or its Affiliates for any reason (with or without Cause, with or without compensation) at any time.

12.3Unfunded Plan. Unless the Committee determines otherwise, no benefit or promise under this Plan shall be secured by any specific assets of the Company or any of its Affiliates, nor shall any assets of the Company or any of its Affiliates be designated as attributable or allocated to the satisfaction of the Company’s obligations under this Plan.

12.4Non-Uniform Determinations. The Committee’s determinations under this Plan need not be uniform and may be made by it selectively among Persons who receive or are eligible to receive Awards (whether or not such Persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to the Persons to receive Awards under this Plan and the terms and provisions of Awards under this Plan.

12.5Electronic Delivery. Any reference herein to a “written” agreement or document or “writing” will include any agreement or document delivered electronically or posted on the Company’s intranet (or other shared electronic medium controlled or authorized by the Company to which the Participant has access) to the extent permitted by applicable law.

12.6Clawback/Recoupment Policy. Notwithstanding anything contained herein to the contrary, all Awards granted under this Plan shall be and remain subject to the Company’s and Affiliates’ incentive compensation clawback and recoupment policies as may be adopted, in effect, or amended from time to time. No such policy adoption or amendment shall in any event require the prior consent of any Participant. If an Award is subject to more than one such policy, the policy with the most restrictive clawback or recoupment provisions shall govern such Award, subject to applicable law.

12.7Section Headings; Construction. The section headings contained herein are for the purpose of convenience only and are not intended to define or limit the contents of the sections. All words used in this Plan shall be construed to be of such gender or number, as the circumstances require. Unless otherwise expressly provided, the words “include” and “including” shall not limit the preceding words or terms, and the word “or” is not exclusive.

12.8Severability. In the event any provision of this Plan or any Award Agreement shall be held by a court of competent jurisdiction to be illegal, invalid or unenforceable for any reason, the illegality, invalidity or unenforceability shall not affect the remaining provisions of this Plan and such Award Agreement and such illegal, invalid or unenforceable provision shall be deemed modified as if such provision had not been included.

12.9Survival of Terms; Conflicts. The provisions of this Plan shall survive the termination of this Plan to the extent consistent with, or necessary to carry out, the purposes thereof. Each Award Agreement remains subject to the terms of this Plan; provided, however, in the event of any conflict between specific provisions of this Plan and an Award Agreement, the Award Agreement shall control.

*    *    *    *    *

10

EX-10.4

Exhibit 10.4

Form of Award Agreement

THE INTERESTS IN CDIG MANAGEMENT CO. LLC AWARDED PURSUANT TO THIS AGREEMENT HAVE NOT BEEN REGISTERED WITH, OR APPROVED OR DISAPPROVED BY, ANY FEDERAL OR STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY. SUCH INTERESTS ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND MAY NOT BE TRANSFERRED EXCEPT AS PERMITTED UNDER FEDERAL AND STATE SECURITIES LAWS, AND THE MANAGEMENTCO LLC AGREEMENT.

COWEN DIGITAL HOLDINGS

2022 EQUITY UNIT INCENTIVE PLAN
UPSTAIRS CLASS B UNIT AWARD AGREEMENT

This UPSTAIRS CLASS B UNIT AWARD AGREEMENT (this “Agreement”), by and between CDIG Management Co. LLC(the “Company”) and the individual named on the signature page hereto (“Participant”) is made as of the date set forth on such signature page hereto (the “Grant Date”) under the Cowen Digital Holdings 2022 Equity Unit Incentive Plan (the “Plan”).

WHEREAS, the Committee has determined that it would be in the best interest of the Company to grant Participant a number of Upstairs Class B Units on the terms and subject to the conditions set forth in this Agreement, the Plan, and the ManagementCo LLC Agreement.

NOW, THEREFORE, to implement the foregoing and in consideration of the mutual representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows:

1.Definitions. Capitalized terms not defined in this Agreement shall have the meanings ascribed to such terms in the Plan or in the Limited Liability Company Agreement of the Company, dated as of ___________, as amended or supplemented from time to time (the “ManagementCo LLC Agreement”).

1.1“Board” means the Board of Managers of Holdings.

1.2“Competitive Activity” means, directly or indirectly, on behalf of a Competitor engaging in any activity which is the same as or reasonably similar to: (a) the positions Participant has held or the activities Participant has performed in relation to the business of Cowen Digital Holdings LLC, including its direct and indirect investments (collectively the “CDIG Business”); (b) the activities Participant gained knowledge of by virtue of his or her work for the CDIG Business; or (c) any activity engaged in by any department, division, or other group Participant has managed on behalf of, or in connection with, the CDIG Business. Competitive Activity includes being involved in any manner as an employee, stockholder, owner, officer, director, partner, agent, consultant, independent contractor, registered representative or in any other corporate or representative capacity. Competitive activity applies within the United States; provided, however, that if Participant’s activities or position are located in, involve contact with or Participant conducts business with countries other than the United States, it includes such countries, as permitted by applicable law.

1.3“Competitor” includes any limited liability company, corporation, partnership, entity or person which is currently competitive with, or is preparing to be competitive with, the CDIG Business.

Exhibit 10.4

1.4“Good Standing” means Participant remains actively employed and (i) has not been given notice of the termination of Participant’s employment, (ii) has not given notice or resignation or resigned, and (iii) is not currently suspended or under investigation for conduct that could, in the Company’s good faith determination, result in a termination for Cause; provided that if Participant is party to an employment agreement in effect as of the Grant Date that includes a definition of “Good Standing,” the definitions set forth in such other agreement shall control for purposes of this Agreement.

1.5“Group Company” means any of the Company and each of its Affiliates.

1.6“Qualifying Retirement” means Participant’s voluntary resignation that satisfies each of the following conditions: (i) as of the date Participant provides resignation notice: (A) Participant is at least fifty-eight (58) years of age, (B) Participant has at least five (5) years of service; and (C) Participant’s age plus length of service equals at least sixty-eight (68) years; (ii) Participant has provided the Service Recipient with at least six (6) months’ prior written notice of Participant’s intention to voluntarily resign in order to retire (such notice to specify, among other things as may be required by the Service Recipient, the intended Retirement Date); (iii) Participant continues to use his or her best efforts in the performance of his or her duties and responsibilities, including hiring Participant’s replacement if requested by the Service Recipient, through Participant’s Retirement Date; (vi) Participant remains in Good Standing with the Service Recipient through Participant’s Retirement Date, and (v) Cause does not exist from the time the resignation notice is provided by Participant through Participant’s Retirement Date.

1.7“Retirement Date” means the date of Participant’s Termination due to a Qualifying Retirement.

2.Issuance of Award.

2.1Grant. Participant is hereby granted, effective as of the Grant Date, the number of Upstairs Class B Units set forth on the signature page hereto (the “Award”). Each Upstairs Class B Unit granted hereunder shall have the Profits Interest Hurdle set forth on the signature page hereto; provided that the Profits Interest Hurdle is subject to adjustment in accordance with the Plan and the ManagementCo LLC Agreement. The Upstairs Class B Units granted hereunder shall be treated as a separate “Profits Interest” in the Company within the meaning of Revenue Procedure 93-27, 1993-2 C.B. 343 and Revenue Procedure 2001-43, 2001-2 C.B. 191, issued by the Internal Revenue Service and the Company shall takes such actions as are necessary or advisable to effect such intent.

2.2Admission as a Member. If Participant is not a Member of the Company as of the Grant Date, concurrent with the execution of this Agreement and as a condition to the grant of the Award, Participant shall be admitted as a Member of the Company by (a) executing and delivering to the Company the Joinder in the form attached hereto as Exhibit A and (b) if applicable, delivering a Spousal Consent in the form attached hereto as Exhibit B executed by Participant’s spouse. Thereupon, Participant shall have all of the rights of a Member of the Company holding Upstairs Class B Units, subject to the terms and conditions of the ManagementCo LLC Agreement, the Plan and this Agreement. The Company and Participant acknowledge and agree that the Upstairs Class B Units are hereby issued to Participant for the performance of services to or for the benefit of the Company and its Affiliates. The Award is made pursuant to all of the provisions of the Plan and the ManagementCo LLC Agreement, which are incorporated herein by this reference, and is intended, and shall be interpreted in a manner, to comply therewith. Participant acknowledges that the Upstairs Class B Units granted hereunder serve in satisfaction of any commitments or expectations in respect of any such interests.

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Exhibit 10.4

2.3Section 83(b) Election. Exhibit C hereto sets forth a form of election under Section 83(b) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury regulations thereunder (the “Section 83(b) Election”), and within 20 days after the Grant Date, Participant shall provide the Company with a copy of a completed Section 83(b) Election. Participant shall timely (within 30 days of the Grant Date) file such election with the Internal Revenue Service and shall thereafter notify the Company that Participant has made such timely filing. The Company makes no representations to Participant in respect of the tax consequences of the Section 83(b) Election (including in respect of the adequacy of the form of Section 83(b) Election) and Participant should consult his or her tax advisor regarding the consequences of the Section 83(b) Election, as well as the receipt, vesting, holding and sale of Upstairs Class B Units.

2.4Closing Conditions. Notwithstanding anything in this Agreement to the contrary, Participant shall have no rights under this Award (and this Award Agreement shall be null and void) unless: (a) Participant is an employee in Good Standing of the Company or one of its Affiliates on the Grant Date; (b) the representations under Section 4 of this Agreement are true and correct as of the Grant Date; (c) Participant is not in material breach of any agreement, obligation or covenant under this Agreement; and (d) Participant has executed and delivered to the Company, no later than 30 days after the Grant Date, this Agreement together with such other documents as may be required under the ManagementCo LLC Agreement, the Plan, and/or this Agreement, or as otherwise may reasonably be required or requested by the Company.

3.Vesting and Forfeiture.

3.1Units.

(a)Ten percent (10%) of the Upstairs Class B Units granted hereunder shall become vested on each of the first five (5) annual anniversaries of the Vesting Start Date set forth on the signature page hereto, in all cases, subject to Participant’s continued employment in Good Standing with the Company or an Affiliate through the applicable vesting date.

(b)Fifty percent (50%) of the Upstairs Class B Units granted hereunder shall become vested upon the first to occur of (i) a Sale of Holdings, (ii) an IPO, or (iii) a distribution to the holders of publicly traded stock of Cowen Inc. (COWN) of a majority of the voting common units of the Company, in each case subject to Participant’s continued employment in Good Standing with the Company or an Affiliate through the date of such event.

3.2Acceleration Upon Certain Events. All unvested Upstairs Class B Units shall immediately vest in full upon an event described in Section 3.1(b), above, subject to Participant’s continued employment in Good Standing with the Company or an Affiliate through the date of such event.

3.3Termination; Forfeiture; Company Repurchase Option.

(a)All unvested Upstairs Class B Units that do not become vested before Participant’s Termination shall be forfeited immediately upon such Termination, without consideration therefor; provided that if Participant has experienced a Qualified Retirement, the unvested Upstairs Class B Units shall continue to vest as of Participant’s Retirement Date, subject to Participant’s compliance with the covenants Section 5 hereof (Restrictive Covenants) for 12 months after Participant’s Qualified Retirement and (ii) Participant executing no later than 52 days after receipt, and not revoking, a release of claims in favor of the Company and its Affiliates, in a form that is acceptable to the Company.

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Exhibit 10.4

(b)Following Termination, Participant shall retain all vested Upstairs Class B Units (if any), subject to (i) Participant’s compliance with the covenants Section 5 hereof (Restrictive Covenants) for 12 months after the Termination, (ii) Participant executing no later than 52 days after receipt, and not revoking, a release of claims in favor of the Company and its Affiliates, in a form that is acceptable to the Company, and (iii) the Company’s repurchase rights under Section 8 of the Plan.

(c)The provisions of Section 8 of the Plan (Company Repurchase Option, which includes a right to repurchase at less than fair market value under certain circumstances, including termination for Cause or non-compliance with restrictive covenants) shall apply with respect to all vested Upstairs Class B Units.

4.Investment Representations and Covenants of Participant.

4.1Upstairs Class B Units Unregistered. Participant acknowledges and represents that Participant has been advised by the Company that:

(a)Neither this Agreement nor the Upstairs Class B Units have been or will be registered with the Securities and Exchange Commission or under any state securities law. The Upstairs Class B Units must be held indefinitely and Participant must continue to bear the economic risk of the investment in the Upstairs Class B Units unless the offer and sale of such Upstairs Class B Units are subsequently registered under the U.S. Securities Act of 1933, as amended from time to time, including the rules and regulations thereunder, and all applicable state securities laws or an exemption from such registration is available (or as otherwise provided in the ManagementCo LLC Agreement);

(b)There is no established market for the Upstairs Class B Units, and it is not anticipated that there will be any public market for the Upstairs Class B Units in the foreseeable future;

(c)A restrictive legend in the form set forth below and the legends set forth in the ManagementCo LLC Agreement shall be placed on the certificates, if any, representing the Upstairs Class B Units:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN REPURCHASE OPTIONS AND OTHER PROVISIONS SET FORTH IN THE AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF CDIG MANAGEMENT CO. LLC AS AMENDED AND MODIFIED FROM TIME TO TIME, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE ISSUER’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE; and

(d)A notation shall be made in the appropriate records of the Company indicating that the Upstairs Class B Units are subject to restrictions on transfer and, if the Company should at some time in the future engage the services of a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Upstairs Class B Units.

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Exhibit 10.4

4.2Additional Investment Representations. Participant represents and warrants that:

(a)Participant’s financial situation is such that Participant can afford to bear the economic risk of holding the Upstairs Class B Units for an indefinite period of time, Participant has adequate means for providing for Participant’s current needs and personal contingencies, and Participant can afford to suffer a complete loss of Participant’s investment in the Upstairs Class B Units;

(b)Participant’s knowledge and experience in financial and business matters are such that Participant is capable of evaluating the merits and risks of the investment in the Upstairs Class B Units;

(c)Participant understands that the Upstairs Class B Units are a speculative investment that involves a high degree of risk of loss of Participant’s investment therein, there are substantial restrictions on the transferability of the Upstairs Class B Units and, on the Grant Date and for an indefinite period thereafter, there will be no public market for the Upstairs Class B Units and, accordingly, it may not be possible for Participant to liquidate Participant’s investment in case of emergency, if at all;

(d)Participant understands that the terms of this Agreement, the Plan, and the ManagementCo LLC Agreement provide that, if Participant ceases to be an employee of the Company or any of its Affiliates, or violates the applicable Restrictive Covenants, the Company has the right to repurchase the Upstairs Class B Units at a price that may, under certain circumstances, be less than the Fair Market Value thereof or Participant may forfeit the Upstairs Class B Units;

(e)Participant understands and has taken cognizance of all of the risk factors related to the acquisition of the Upstairs Class B Units and, other than as set forth in this Agreement, no representations or warranties have been made to Participant or Participant’s representatives concerning the Upstairs Class B Units or the Company or their prospects or other matters;

(f)Participant has been advised to consult Participant’s own legal, tax and financial advisors concerning this transaction and Participant has consulted with such advisors, if any, as Participant has seen fit in connection with this transaction;

(g)Participant has been given the opportunity to examine all documents and to ask questions of, and to receive answers from, the Company and its representatives concerning the Company and its Affiliates, the ManagementCo LLC Agreement, the Company’s organizational documents, and the terms and conditions of the acquisition of the Upstairs Class B Units, and to seek to obtain any additional information that Participant deems necessary;

(h)Participant understands the federal, state and local income and, to the extent applicable to Participant, non-U.S. tax consequences of the granting of the Upstairs Class B Units to Participant, the issuance of the Upstairs Class B Units to Participant, and the subsequent receipt of distributions, if any, in respect of the Upstairs Class B Units; and

(i)All information that Participant has provided to the Company and the Company’s representatives concerning Participant and Participant’s financial position is complete and correct as of the date of this Agreement.

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Exhibit 10.4

5.Restrictive Covenants.

5.1Non-Competition Obligation. To safeguard Participant’s and the Company’s Protectable Interests (as defined below), Participant agrees that during Participant’s employment and Post-Employment Period (as defined below) after Participant’s employment terminates, Participant will not, without the prior written consent of the Company, directly or indirectly, on behalf of a Competitor, engage in Competitive Activity (the restriction under this Paragraph, the “Non-Competition Obligation”). The duration of the post-employment Non-Competition Obligation will be twelve (12) months following Participant’s Termination (the “Post-Employment Period”). Participant acknowledges that this Non-Competition Obligation is in addition to any Restrictive Covenants set forth in any agreement between Participant and a Group Company, and that such agreements are amended to add this Non-Competition Obligation; provided, however, that (i) if Participant’s work location immediately before Termination is a California office, Participant is not bound by the Non-Competition Obligation for the Post-Employment Period, and (ii) if Participant has agreed to a longer post-employment non-competition period in any agreement between Participant and a Group Company, the longer length of time governs.

5.2Employee Non-Solicitation. Participant agrees that during employment and the Post-Employment Period, Participant will not, without the Company's prior written consent, directly or indirectly: (a) solicit or induce, or cause others to solicit or induce, any employees of a Group Company to leave the applicable Group Company or in any way modify their relationship with the applicable Group Company; (b) hire or cause others to hire any employees of a Group Company; or (c) encourage or assist in the hiring process of any Group Company employee or in the modification of any such employee's relationship the Group Company, or cause others to participate, encourage or assist in the hiring process of any employees of a Group Company.

5.3Non-Disclosure of Confidential or Proprietary Information. Participant shall not at any time, whether during Participant’s employment or following the termination of Participant’s employment, directly or indirectly, publish, disclose or furnish to any entity, firm, corporation or person, except as otherwise required by law or as required as part of Participant’s position with the Company, any Confidential or Proprietary Information with respect to any aspect of its operations, business or clients. “Confidential or Proprietary Information” shall mean any secret, confidential or proprietary information of a Group Company that is not generally known to the public to which Participant gains access by reason of Participant’s employment and includes information relating to all principals, officers, and employees, all present or potential clients and investors; work product developed by and research conducted by a Group Company; research reports, models, and notes; business and marketing plans; sales, trading and financial data and strategies; legal and/or regulatory matters; operational costs; pitch books and presentation materials; client and investor lists; client contact and account information; pipelines; investor information; budgets; engagement letters; all current and prospective client confidential information; financial models; and internal procedures, manuals and guidebooks. This Section 5.3 does not prohibit any disclosure: (i) made for the purpose of reporting a suspected violation of law or claiming retaliation for reporting a violation of law in confidence to (A) the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, FINRA, or any other federal, state or local government, agency or commission (“Government Agency”), (B) Participant’s attorney, or (C) in a sealed court document; (ii) made in cooperation with an investigation by a Government Agency; or (iii) required pursuant to a subpoena or other legal process; provided, however, with respect to a disclosure under (iii), other than to a Government Agency, that Participant agrees to give the Company prompt written notice of the disclosure so that the Company may seek a protective order or waive Participant’s compliance with this paragraph. Upon Participant’s Termination for any reason, or at any other time requested by the

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Exhibit 10.4

Service Recipient or the Company, Participant agrees to immediately return all Confidential or Proprietary Information in Participant’s possession, custody or control, and upon request of the Service Recipient or the Company, agrees to execute an affidavit confirming Participant’s compliance with this obligation.

5.4Non-Disparagement. Participant shall not at any time, whether during Participant’s employment or following any Termination, and shall not cause or induce others to, defame or disparage the Company or any Affiliate, or the directors, officers or employees of the Company or any Affiliate. Participant agrees not to take any action which is intended, or would reasonably be expected, to harm the reputation of a Group Company, or which would reasonably be expected to lead to negative publicity to a Group Company.

5.5Company Property. All records, files, memoranda, reports, customer information, client and investor lists, documents, Work Made for Hire (defined below) and equipment relating to the business of the Company or any Affiliate that Participant prepares or possesses, or with which Participant comes into contact, in either case while Participant is an employee of the Company or any Affiliate, shall remain the property of the Company or such Affiliate. Participant agrees that upon Participant’s Termination for any reason, Participant shall provide to the Company and any Affiliate, as applicable, all documents, papers, files, and other material in Participant’s possession and under Participant’s control that are connected with or derived from Participant’s services to the Company or any Affiliate.

5.6Intellectual Property. Participant agrees that the following, without limitation, belongs to and shall be the sole intellectual property of the Company: all inventions, improvements, products, designs, specifications, original works of authorship, trademarks, service marks, trade dress, discoveries, formulas, algorithms, processes, models, software or computer programs (including any modifications), data processing systems, analyses, data, techniques, trade secrets, know-how, ideas, creations, or work product (regardless of whether it contains Confidential or Proprietary Information or trade secrets), and any applications and registrations thereto, conceived, developed, made or improved on by Participant: (i) in the course of employment with or work for a Group Company; or (ii) with the use of a Group Company’s time, material or facilities in any way related to or pertaining to or connected with the present or anticipated business, development, work or research of a Group Company (“Work Made for Hire”). The Company shall exclusively own all rights, title and interest in any Work Made for Hire, and shall be the author for all purposes under copyright law. Participant hereby assigns such Work Made for Hire to the Company and agrees, without further compensation or consideration, to immediately take such actions to effect such assignment as may be requested by a Group Company. If any intellectual property is not deemed a Work Made for Hire, or if Participant, by operation of law, is deemed to obtain any rights to the Work Made for Hire, Participant shall irrevocably assign to the Company, without further compensation or consideration, Participant’s entire right, title, and interest in and to the intellectual property. Participant further agrees not to impermissibly reproduce, copy, display, distribute, forward, plagiarize, or use (whether in hardcopy or electronically, including via e-mail) any Third Party Copyrighted Materials in violation of any license, subscription agreement, or law. “Third Party Copyrighted Materials” are copyrighted works, other than those of a Group Company including printed articles from publications; electronic articles and reports in online publications; database content; websites; streaming media; musical compositions, mobile apps; online videos; movies; sound recordings, including in digital form such as downloads and streams; images; presentations; training materials; manuals; documentation; computer programs, software programs, and blogs.

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Exhibit 10.4

5.7Compliance with Company Policies. Participant agrees to comply fully with the applicable internal policies of the Company and the Service Recipient. The Company’s right to modify these policies does not affect Participant’s duty to comply with these policies at all times.

5.8Participant Representations Supporting Restrictive Covenants. Participant acknowledges and recognizes the highly competitive nature of the Service Recipient’s and the Company’s businesses, that the Service Recipient will invest time and resources into Participant’s training and education in furtherance of Participant’s position, and that by virtue of Participant’s position, Participant will have access to the Service Recipient’s and the Company’s Confidential and Proprietary Information and trade secrets (collectively, “Protectable Interests”). Participant understands that the restrictive covenants contained in this Agreement may limit Participant’s ability to earn a livelihood in a position similar to or involving the same activities Participant perform for the Service Recipient, but Participant acknowledges that Participant will receive compensation and other benefits, including training and access to Confidential and Proprietary Information, sufficient to justify these restrictions. Participant further acknowledges that given Participant’s education, skills, and abilities, Participant does not believe that the restrictive covenants in this Agreement will prevent Participant from earning a livelihood; and Participant acknowledges that he or she has the right, and has had an opportunity, to consult an attorney with respect to these provisions. Participant recognizes that the Company would not award the Upstairs Class B Units pursuant to this Agreement if Participant was not willing to agree to the restrictive covenants contained in this Agreement. Participant agrees and acknowledges that nothing in this Section 5 shall in any way affect, limit or modify Participant’s liabilities or obligations under any employment agreement, consulting agreement, management services agreement, confidentiality agreement, noncompetition agreement, non-solicitation agreement or any similar agreement with the Company or any of its Subsidiaries.

5.9Breach/Injunctive Relief. In the event of a breach of this Section 5, in addition to being entitled to exercise all rights granted by law, including recovery of damages, the Company and the Service Recipient will be entitled to specific performance of its rights under this Agreement. Participant acknowledges that the Company shall suffer irreparable harm in the event of a Breach or prospective Breach, and that monetary damages would not be adequate relief. Accordingly, the Company shall be entitled to seek injunctive relief in any federal or state court of competent jurisdiction located in New York, or in any state in which Participant resides. Participant further agrees that the Company and the Service Recipient shall be entitled to recover all costs and expenses (including attorneys’ fees and expenses) incurred in connection with the enforcement of the Company’s rights hereunder including with respect to a Breach. For the avoidance of doubt, although a breach occurring more than 12 months after Participant’s Termination shall not result in forfeiture of vested Upstairs Class B Units, the Company and its Affiliates retain all rights under law and in equity to enforce their rights (including to recover damages for breach) under this Section 5 even after the 12-month period has elapsed.

6.Cooperation. Participant agrees to cooperate fully with the Company and the Service Recipient at any time, whether during Participant’s employment or following any termination thereof, taking into account the requirements of any subsequent employment by Participant, on all matters relating to Participant’s employment, which cooperation shall be provided without additional consideration or compensation and shall include being available to serve as a witness and be interviewed and making available any books, records, and other documents within Participant’s control, provided, however, that Participant need not take any action hereunder that would constitute a violation of law or obligation to any third party (except to the extent such obligation arises due to any action taken by Participant with the intention to circumvent the operation of this Section 6 or cause a waiver of attorney-client privilege). Without limiting the generality of the foregoing, Participant shall cooperate fully and truthfully in connection with any (a) past, present, or future suit, action, claim, or other proceeding; (b)

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Exhibit 10.4

inquiry, proceeding, or investigation by or before any governmental authority; (c) arbitration, mediation, or other alternative dispute resolution process, in each case involving the Company, the Service Recipient, or any Affiliates; and (d) internal investigation.

7.Miscellaneous.

7.1Notices. Unless otherwise provided herein, all notices and other communications hereunder shall be in writing and shall be deemed given and received (a) if delivered in person, on the date delivered, (b) if transmitted by facsimile (provided that receipt is confirmed by telephone), on the date sent, or (c) if delivered by an express courier, on the second Business Day after mailing, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

If to the Company:

Cowen Digital Holdings LLC
c/o Cowen Inc.
599 Lexington Avenue, 20th Floor
New York, NY 10022
Attention:    General Counsel

If to Participant:

To the most recent address of Participant set forth in the personnel records of the Company.

7.2Amendments and Waivers.

(a)Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective; provided that, the foregoing notwithstanding, this Agreement may be amended by the Company unilaterally to cure any ambiguity or correct or supplement any provision herein which may be inconsistent with any other provision herein, the Plan or the ManagementCo LLC Agreement or to correct any errors or omissions so that this Agreement shall accurately reflect the agreement between the Company and the Participant, and to make any updates of a ministerial or non-material nature. No unilateral amendment may adversely affect Participant, except to the extent provided for or contemplated in the terms of this Agreement or the Plan (including, for the avoidance of doubt, pursuant to Article VII or IX thereof).

(b)No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

7.3Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

7.4Governing Law. Other than Section 5 (Restrictive Covenants) and Section 7.5 (Arbitration), this Agreement, the legal relations between the parties and the adjudication and the enforcement thereof, shall be governed by and interpreted and construed in accordance with the

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Exhibit 10.4

laws of the State of Delaware applicable to agreements made and to be performed entirely within the State of Delaware, without regard to the conflict of law provisions thereof that could result in the application of the laws of any other jurisdiction. Section 7.5 (Arbitration) shall be governed by and construed in accordance with the Federal Arbitration Act. Section 5 (Restrictive Covenants) shall be governed by and interpreted and construed in accordance with the laws of the State of New York, without regard to the conflict of law provisions thereof that could result in the application of the laws of any other jurisdiction; provided that to the extent Participant’s work location is a California office, California law and jurisdiction shall replace New York under this Agreement during such period to the extent required by law.

7.5Arbitration.

(a)Any and all disputes with the Company or any Affiliate arising out of or relating to this Agreement or Participant’s employment will be submitted to and resolved exclusively by the Financial Industry Regulatory Association (“FINRA”) in accordance with its rules, unless Participant is not registered or is not subject to FINRA’s jurisdiction, in which case such disputes will be submitted to and exclusively resolved by American Arbitration Association (“AAA”) pursuant to the AAA’s employment Arbitration Rules and Mediation Procedures. In the event of arbitration before the AAA, the arbitrator’s fees and the administrative costs associated with holding the arbitration hearing (e.g., set-up and calendaring, room costs, etc.) will be paid by the Company; provided, however, that Participant will be responsible for paying Participant’s attorney’s fees, witness fees, and all other personal legal expenses related to Participant’s legal representation. In agreeing to arbitrate Participant’s claims, Participant recognizes that Participant is waiving Participant’s right to a trial in court and by a jury. The arbitration award shall be binding upon Participant, the Company, and any Affiliate and judgment upon the award may be entered in a court of competent jurisdiction. This arbitration provision applies to, but is not limited to, statutory discrimination, harassment, and retaliation claims under federal, state, and local law.

(b)Participant agrees to waive any and all rights to bring, participate, or recover any relief from a class, collective or other representative action against the Company and/or its Affiliates to the maximum extern permitted by law. If Participant is included in a class, collective or other representative action, Participant will take all steps necessary to opt-out of the action or refrain from opting-in. A court must decide any issue concerning the validity of this waiver, and an arbitrator does not have the authority to consider it or to allow Participant to serve as a representative of others in arbitration pursuant to this Section 7.5. If for any reason a court finds this waiver unenforceable, the class, collective or representative claim may only be heard in court and not arbitrated, and to the fullest extent permitted by law, Participant waives the right to a jury for any such claims. Participant retains the right to challenge the validity of this waiver.

(c)This arbitration provision does not apply to: (i) a claim for injunctive relief permitted under the ManagementCo LLC Agreement, the Plan, this Agreement or any agreement between Participant and the Company, for which jurisdiction shall be reserved in the federal and/or state courts in New York, with the parties consenting to personal jurisdiction; (ii) any claim arising under Sarbanes-Oxley; and (iii) claims prohibit by law from being arbitrated.

7.6Counterparts; Third-Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures hereto were upon the same instrument. This Agreement shall become effective as to a particular Participant when such Participant shall have received a counterpart hereof signed by the Company. No provision of this Agreement shall confer upon any person other than the parties hereto any rights or remedies hereunder.

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Exhibit 10.4

7.7Entire Agreement. This Agreement, together with the Plan and the ManagementCoLLC Agreement, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter of this Agreement.

7.8Section Headings; Construction. The section headings contained herein are for the purpose of convenience only and are not intended to define or limit the contents of the sections. All words used in this Agreement shall be construed to be of such gender or number, as the circumstances require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms and the word “or” is not exclusive.

7.9Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be deemed to be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforced in accordance with its terms to the maximum extent permitted by law. If for any reason one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, then to the maximum extent permitted by law, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement or any other such instrument. Furthermore, a determination in any jurisdiction that this Agreement, in whole or in part, is invalid, illegal, or unenforceable shall not in any way affect or impair the validity, legality, or enforceability of this Agreement in any other jurisdiction.

7.10Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

7.11Offset. In the event that Participant experiences a Termination, for any reason or no reason, the Company may offset, to the fullest extent permitted by law (and without triggering tax under Section 409A of the Code), any amounts of money or other property due to the Company from Participant, or advanced or loaned to Participant by the Company, from any money or property owed to Participant or Participant’s estate by the Company as a result of such Termination.

7.12Participant’s Employment . Nothing contained in this Agreement shall be deemed to obligate the Company or any of its Affiliates to employ Participant in any capacity whatsoever or to prohibit or restrict the Company or any of its Affiliates from terminating the employment of Participant at any time or for any reason whatsoever, with or without Cause.

7.13Tax Withholding. All compensation in respect of this Award is subject to withholding for taxes in such amounts and at such times as the Company determines to be required by law. Without limiting the generality of the foregoing, the Company shall be entitled to withhold (based on the Fair Market Value) a number of Units having an aggregate Fair Market Value equal to the applicable withholding amount. All amounts (if any) that are withheld and paid over to the appropriate taxing authority pursuant to this Section 7.13 shall be treated as having been paid to Participant. Regardless of the amount withheld or reported, Participant is solely responsible for all taxes in respect of this Award except the employer’s share of employment taxes (if any). If a taxing authority subsequently determines that withholding should have been made with respect to this Award (or any amount payable with respect thereto) and the Company or any of its Affiliates is required to pay any portion of Participant’s taxes that were not withheld, Participant shall reimburse the Company or Affiliate (as applicable) for the full amount paid by the Company or Affiliate in respect of such withholding, and the Company and ManagementCo shall be entitled to deduct and withhold the full amount of such required

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Exhibit 10.4

reimbursement (to the extent not paid by Participant) from subsequent distributions and payments to Participant. Participant’s obligations under this Section 7.13 will survive the transfer, forfeiture, withdrawal, or other disposition by Participant of the whole or any portion of its interest in the Company, the death or legal disability of Participant and the termination, dissolution, liquidation and winding up of the Company, and the Company will be treated as continuing in existence for purposes of this Section 7.13.

7.14Incorporation, Recapitalization and/or Reorganization. If, in connection with a Reorganization Event, Participant receives securities or other consideration in respect of Participant’s Upstairs Class B Units, the rights and obligations set forth in this Agreement, and the Plan shall continue to apply to such securities or other consideration, mutatis mutandis. Participant agrees to take such actions and execute such documents (in Participant’s capacity as a member of the Company) as may be requested by the Company to give effect to any such event, including executing operating agreements, unitholder agreements or similar agreements, or joinders thereto.

* * * * *

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

CDIG MANAGEMENT CO. LLC

By:    
Name:
Title:

PARTICIPANT

Name:    __________________________

Date:    __________________________

Address:    

NUMBER OF UPSTAIRS CLASS B UNITS GRANTED:        [●]

PROFITS INTEREST HURDLE:                    [●]

GRANT DATE:                            [●]

VESTING START DATE:                        [●]

Signature:     ______________________

EX-31.1

Exhibit 31.1

Certification

I, Jeffrey M. Solomon, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Cowen Inc:

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 2, 2022	/s/ JEFFREY M. SOLOMON
		Name: Jeffrey M. Solomon Title:    Chief Executive Officer              (principal executive officer)

EX-31.2

Exhibit 31.2

Certification

I, Stephen A. Lasota, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of Cowen Inc:

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 2, 2022	/s/ STEPHEN A. LASOTA
		Name:  Stephen A. Lasota Title:    Chief Financial Officer (principal financial officer and principal accounting officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cowen Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:

1.    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 2, 2022	/s/ JEFFREY M. SOLOMON
		Name:  Jeffrey M. Solomon Title:    Chief Executive Officer                     (principal executive officer)
		/s/ STEPHEN A. LASOTA
		Name:  Stephen A. Lasota Title:    Chief Financial Officer (principal financial              officer and principal accounting officer)

*  The foregoing certification is being furnished solely pursuant to 18 U.S.C Section 1350 and is not being filed as part of the Report or as a separate disclosure document

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-34516
Entity Registrant Name	Cowen Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0423711
Entity Address, Address Line One	599 Lexington Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	646
Local Phone Number	562-1010
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,494,230
Entity Central Index Key	0001466538
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock Class A | The Nasdaq Global Market
Entity Information [Line Items]
Title of 12(b) Security	Class A Common Stock, par value $0.01 per share
Trading Symbol	COWN
Security Exchange Name	NASDAQ
2033 Notes | The Nasdaq Global Market
Entity Information [Line Items]
Title of 12(b) Security	7.75% Senior Notes due 2033
Trading Symbol	COWNL
Security Exchange Name	NASDAQ

XML

Consolidated Statements of Financial Condition - USD ($)		Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents		$ 512,978,000	$ 914,343,000
Cash collateral pledged		52,865,000	47,494,000
Segregated Cash		220,882,000	194,701,000
Securities owned, at fair value ($1,704,831 and $1,764,853 were pledged to various parties)		2,763,514,000	2,660,742,000
Securities Purchased under Agreements to Resell		19,621,000	0
Receivable on derivative contracts, at fair value		342,712,000	286,135,000
Securities borrowed		1,761,146,000	1,704,603,000
Other investments ($131,766 and $137,986 at fair value, respectively)		237,628,000	274,111,000
Deposits with clearing organizations, brokers and banks		105,854,000	111,857,000
Receivable from brokers, dealers and clearing organizations, net of allowance of $616 and $636, respectively		1,487,911,000	1,614,347,000
Receivable from customers, net of allowance of $587 and $687, respectively		159,625,000	159,418,000
Fees receivable, net of allowance of $828 and $886, respectively		128,136,000	145,809,000
Due from Related Parties		21,666,000	31,449,000
Fixed assets, net of accumulated depreciation and amortization of $52,254 and $50,017, respectively		25,037,000	25,976,000
Operating lease right-of-use assets		95,430,000	93,655,000
Goodwill		234,005,000	234,005,000
Intangible assets, net of accumulated amortization of $37,470 and $33,219, respectively		40,731,000	44,167,000
Deferred tax asset, net		19,608,000	21,765,000
Other assets, net of allowance of $834 and $0 respectively		99,427,000	84,828,000
Consolidated Funds
Cash and cash equivalents, Consolidated Funds		23,000	296,000
Other Investments, Consolidated Funds		97,182,000	99,067,000
Other assets, Consolidated Funds		46,000	46,000
Total Assets		8,426,027,000	8,748,814,000
Liabilities
Securities sold, not yet purchased, at fair value		974,867,000	1,201,448,000
Securities Sold under Agreements to Repurchase		229,192,000	63,469,000
Payable for derivative contracts, at fair value		46,814,000	60,163,000
Securities Loaned		1,735,852,000	1,586,572,000
Payables to brokers, dealers and clearing organizations		587,540,000	586,553,000
Payable to customers		2,243,654,000	2,432,612,000
Commission management payable		126,968,000	102,990,000
Compensation payable		176,210,000	443,580,000
Operating lease liabilities		99,800,000	98,883,000
Notes payable and other debt	[1]	625,766,000	623,371,000
Fees payable		6,580,000	16,483,000
Due to related parties		27,000	0
Accounts payable, accrued expenses and other liabilities		241,110,000	236,088,000
Consolidated Funds
Due to related parties		0	23,000
Accounts payable, accrued expenses and other liabilities		174,000	225,000
Total Liabilities		7,094,554,000	7,452,460,000
Commitments and Contingencies
Stockholders' equity
Additional paid-in capital		1,127,160,000	1,100,667,000
(Accumulated deficit) retained earnings		491,189,000	461,982,000
Accumulated other comprehensive income (loss)		0	(2,000)
Less: Class A common stock held in treasury, at cost, 29,220,380 and 28,047,929 shares as of March 31, 2022 and December 31, 2021, respectively		(583,500,000)	(547,100,000)
Cowen Inc. Stockholders' Equity		1,035,148,000	1,015,869,000
Nonredeemable non-controlling interests		175,575,000	159,735,000
Permanent Equity		1,210,723,000	1,175,604,000
Total Liabilities and Stockholders' Equity		8,426,027,000	8,748,814,000
Convertible Preferred Stock
Consolidated Funds
Redeemable Series A Convertible Preferred stock, par value $0.01 per share: 10,000,000 shares authorized, 120,750 shares issued and outstanding as of March 31, 2022 (aggregate liquidation preference of $120,750) and 10,000,000 shares authorized, 120,750 shares issued and outstanding as of December 31, 2021 (aggregate liquidation preference of $120,750)		120,750,000	120,750,000
Common Stock Class A
Stockholders' equity
Common stock		334,000	334,000
Less: Class A common stock held in treasury, at cost, 29,220,380 and 28,047,929 shares as of March 31, 2022 and December 31, 2021, respectively		(583,535,000)	(547,112,000)
Common Stock Class B
Stockholders' equity
Common stock		$ 0	$ 0

[1] The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.7 million and $0.2 million as of March 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.

XML

Consolidated Statements of Financial Condition (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Assets
Security Owned and Pledged as Collateral, Fair Value	$ 1,704,831,000	$ 1,764,853,000
Allowance for receivable from brokers	616,000	636,000
Allowance for receivable from customers	587,000	687,000
Allowance for fees receivable	828,000	886,000
Fixed assets, accumulated depreciation and amortization (in dollars)	52,254,000	50,017,000
Intangible assets, accumulated amortization (in dollars)	$ 37,470,000	$ 33,219,000
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	120,750	120,750
Preferred Stock, Liquidation Preference, Value	$ 120,750,000	$ 120,750,000
Common stock, shares authorized	125,000,000
Additional paid-in capital	$ 1,127,160,000	1,100,667,000
(Accumulated deficit) retained earnings	491,189,000	461,982,000
Accumulated other comprehensive income (loss)	0	(2,000)
Less: Class A common stock held in treasury, at cost, 29,220,380 and 28,047,929 shares as of March 31, 2022 and December 31, 2021, respectively	(583,500,000)	(547,100,000)
Loans and Leases Receivable, Allowance	834,000	0
Portfolio Funds
Assets
Investment Owned, at Fair Value	$ 131,766,000	$ 137,986,000
Common Stock Class A
Stockholders' equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	62,500,000	62,500,000
Common stock, shares issued	56,835,283	55,826,893
Common stock, shares outstanding	27,614,903	27,778,964
Treasury Stock, Shares	29,220,380	28,047,929
Less: Class A common stock held in treasury, at cost, 29,220,380 and 28,047,929 shares as of March 31, 2022 and December 31, 2021, respectively	$ (583,535,000)	$ (547,112,000)
Common Stock Class A | Restricted Stock
Stockholders' equity
Common stock, shares outstanding	901,374	901,374
Common Stock Class B
Stockholders' equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	62,500,000	62,500,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Investment banking	$ 101,542	$ 304,834
Brokerage	168,738	173,737
Securities principal transactions, net	91,252	63,965
Portfolio fund principal transactions, net	(6,098)	15,403
Carried interest allocations	(17,067)	96,769
Gross Investment Income, Operating	68,087	176,137
Management fees	16,769	25,742
Incentive income	633	2,258
Interest and dividends	46,335	59,388
Insurance and reinsurance premiums	11,321	7,117
Other revenues	(949)	1,660
Consolidated Funds
Principal transactions, net, Consolidated Funds	(1,886)	(3,349)
Interest and dividends	2	2
Total revenues	410,592	747,526
Interest and dividends expense	46,524	57,641
Total net revenues	364,068	689,885
Expenses
Employee compensation and benefits	187,178	388,196
Brokerage and trade execution costs	40,591	45,656
Underwriting expenses	259	6,915
Professional, advisory and other fees	13,682	15,460
Service fees	7,150	5,731
Communications	9,471	9,267
Occupancy and equipment	10,316	9,540
Depreciation and amortization	7,185	4,354
Client services and business development	6,569	6,848
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs	7,343	6,455
Other expenses	12,763	(3,340)
Consolidated Funds
Professional, advisory and other fees	42	110
Other expenses	63	161
Total expenses	302,612	495,353
Other income (loss)
Net gain (losses) on other investments	5,580	12,645
Bargain Purchase Gain, net of tax	0	3,855
Gain/(loss) on debt extinguishment	0	(4,538)
Total other income (loss)	5,580	11,962
Income (loss) before income taxes	67,036	206,494
Income tax expense (benefit)	11,889	54,428
Net income (loss)	55,147	152,066
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131	4,562
Net income (loss) attributable to Cowen Inc.	35,016	147,504
Preferred stock dividends	1,698	1,698
Net income (loss) attributable to Cowen Inc. common stockholders	$ 33,318	$ 145,806
Weighted average common shares outstanding:
Basic (in shares)	28,386	27,359
Diluted (in shares)	31,772	33,565
Earnings (loss) per share:
Earnings Per Share, Basic (in dollars per share)	$ 1.17	$ 5.33
Earnings Per Share, Diluted (in dollars per share)	$ 1.05	$ 4.34

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 55,147	$ 152,066
Other comprehensive income (loss), net of tax:
Foreign currency translation	2	4
Total other comprehensive income (loss), net of tax	2	4
Comprehensive income (loss)	55,149	152,070
Net Income (Loss) Attributable to Noncontrolling Interest	20,131	4,562
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 35,018	$ 147,508

XML

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Shares	Preferred Shares	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings/(Accumulated deficit)	Cowen Inc Equity	Nonredeemable Noncontrolling Interests
Common stock outstanding, beginning balance (in shares) at Dec. 31, 2020		26,845,628
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock awards issued (in shares)		705,512
Common stock issuance upon acquisition (in shares)		56,801
Purchase of treasury stock, at cost (in shares)		(755,610)
Common stock outstanding, ending balance (in shares) at Mar. 31, 2021		26,852,331
Preferred stock outstanding, beginning balance (in shares) at Dec. 31, 2020			120,750
Preferred stock outstanding, ending balance (in shares) at Mar. 31, 2021			120,750
Balance, start at Dec. 31, 2020		$ 334	$ 1	$ (346,870)	$ 1,130,138	$ (7)	$ 185,901	$ 969,497	$ 199,624
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury stock, at cost				(26,904)
Common stock issuance upon acquisition	$ 2,202				2,202
Amortization of share based awards					19,037
Foreign currency translation						4
Net income (loss) attributable to Cowen Inc.	147,504						147,504
Preferred dividends paid							(1,698)
Cash dividends declared	(2,777)						(2,777)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds									4,562
Capital contributions									22,515
Capital withdrawals									(18,773)
Deconsolidation of entity									(74,813)
Balance, end at Mar. 31, 2021	1,239,980	$ 334	$ 1	(373,774)	1,151,377	(3)	328,930	1,106,865	133,115
Common stock outstanding, beginning balance (in shares) at Dec. 31, 2021		27,778,964
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock awards issued (in shares)		949,803
Common stock issuance upon acquisition (in shares)		58,587
Purchase of treasury stock, at cost (in shares)		(1,172,451)
Common stock outstanding, ending balance (in shares) at Mar. 31, 2022		27,614,903
Preferred stock outstanding, beginning balance (in shares) at Dec. 31, 2021			0
Preferred stock outstanding, ending balance (in shares) at Mar. 31, 2022			0
Balance, start at Dec. 31, 2021	1,175,604	$ 334	$ 0	(547,112)	1,100,667	(2)	461,982	1,015,869	159,735
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury stock, at cost				(36,423)
Common stock issuance upon acquisition	1,881				1,881
Amortization of share based awards					24,612
Foreign currency translation						2
Net income (loss) attributable to Cowen Inc.	35,016						35,016
Preferred dividends paid							(1,698)
Cash dividends declared	(4,111)						(4,111)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds									20,131
Capital contributions									1,610
Capital withdrawals									(5,901)
Deconsolidation of entity									0
Balance, end at Mar. 31, 2022	$ 1,210,723	$ 334	$ 0	$ (583,535)	$ 1,127,160	$ 0	$ 491,189	$ 1,035,148	$ 175,575

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ 55,147	$ 152,066
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Bargain purchase gain, net of tax	0	(3,855)
Depreciation and amortization	7,185	4,354
Amortization of debt issuance costs	604	480
Amortization of debt discount (premium)	77	776
Noncash lease expense	(858)	(362)
(Gain) / loss on extinguishment of debt	0	3,890
Share-based awards	24,612	19,037
Change in deferred taxes	2,157	5,913
Gain (Loss) on Disposition of Property Plant Equipment	101	0
Contingent liability adjustment	0	(614)
Payments to Acquire Marketable Securities	(269,037)	(269,073)
Proceeds from sales of securities owned, at fair value	243,634	271,314
Proceeds from sales of securities sold, not yet purchased, at fair value	131,199	63,511
Payments to cover securities sold, not yet purchased, at fair value	(141,186)	(58,346)
Proceeds from sales of other investments	16,780	16,995
Investment income (loss) principal transactions, net	(22,115)	(158,833)
Consolidated Funds
Proceeds from sales of securities owned, at fair value	0	2,687
Proceeds from other investments	0	14,130
Investment Income (loss) principal transactions, net	1,886	3,143
(Increase) decrease in operating assets:
Securities owned, at fair value, held at broker-dealer	(46,185)	(1,112,154)
Receivable on derivative contracts, at fair value	(56,577)	(44,054)
Securities borrowed	(56,543)	(88,570)
Deposits with clearing organizations, brokers and banks	6,003	22,874
Receivable from brokers, dealers and clearing organizations	126,436	(191,009)
Receivable from customers, net of allowance	(207)	(95,705)
Fees receivable, net of allowance	17,673	(46,170)
Due from related parties	9,783	440
Other assets	(14,597)	(9,344)
Consolidated Funds
Receivable on derivative contracts, at fair value	0	(2,917)
Other assets	0	13
Increase (decrease) in operating liabilities:
Securities sold, not yet purchased, at fair value, held at broker dealer	(208,080)	187,749
Securities sold under agreement to repurchase	165,723	(2,490)
Payable for derivative contracts, at fair value	(13,348)	(24,035)
Securities loaned	149,280	607,531
Payable to brokers, dealers and clearing organizations	987	73,328
Payable to customers	(188,958)	977,274
Commission management payable	23,978	22,634
Compensation payable	(279,653)	(17,809)
Fees payable	(9,903)	(918)
Due to related parties	27	48
Accounts payable, accrued expenses and other liabilities	14,907	39,591
Consolidated Funds
Due To Related Parties, Consolidated Funds	(23)	0
Accounts payable, accrued expenses and other liabilities	(51)	(359)
Net Cash Provided by (Used in) Operating Activities	(309,142)	363,161
Cash flows from investing activities:
Securities purchased under agreements to resell	19,621	(191)
Purchases of other investments	(7,662)	(29,117)
Purchase of business (see note 3)	0	2,109
Cash Divested from Deconsolidation	0	(5,620)
Proceeds from sales of other investments	9,780	31,267
Purchase of fixed assets and intangibles	(2,914)	(1,643)
Net Cash Provided by (Used in) Investing Activities	(20,417)	(2,813)
Cash flows from financing activities:
Deferred Debt Issuance Costs	(112)	(6,467)
Borrowings on notes and other debt	4,019	301,490
Repayments on notes and other debt	(2,193)	(139,737)
Purchase of treasury stock	(24,140)	(20,629)
Cash dividends paid	(3,917)	(2,313)
Preferred stock dividends paid	(1,698)	(1,698)
Contingent liability payment	(8,195)	(8,496)
Capital contributions by non-controlling interests in operating entities	1,610	3,498
Capital withdrawals to non-controlling interests in operating entities	(5,901)	(2,348)
Consolidated Funds
Capital contributions by non-controlling interests in Consolidated Funds	0	19,017
Capital withdrawals to non-controlling interests in Consolidated Funds	0	(16,424)
Net cash provided by / (used in) financing activities	(40,527)	125,893
Change in cash and cash equivalents	(370,086)	486,241
Total cash beginning of period	1,156,834	941,470
Cash and cash equivalents	512,978	1,147,531
Cash collateral pledged	52,865	110,303
Segregated Cash	220,882	168,942
Cash and cash equivalents, Consolidated Funds	23	935
Total cash at end of period	786,748	1,427,711
Supplemental information
Cash paid during the year for interest	40,538	65,259
Cash paid during the year for taxes	12,980	8,087
Purchase of treasury stock, at cost, through net settlement	12,283	6,245
Preferred stock dividends declared	1,698	1,698
Dividends, Cash	4,111	2,777
Net assets (liabilities) acquired upon acquisition (net of cash)	0	3,107
Net decrease in non-controlling interests in Consolidated Fund due to deconsolidation of Consolidated Fund	0	74,813
Common stock issuance upon close of acquisition	$ 1,881	$ 2,202

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Organization and Business

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business

Organization and Business

Cowen Inc., a Delaware corporation formed in 2009, is a diversified financial services firm that, together with its consolidated subsidiaries (collectively, "Cowen" or the "Company"), provides investment banking, research, sales and trading, prime brokerage, global clearing, securities financing, commission management services and investment management through its two business segments: the Operating Company ("Op Co") and the Asset Company ("Asset Co").

The Op Co segment consists of four divisions: the Investment Banking division, the Markets division, the Research division and the Cowen Investment Management ("CIM") division. The Company refers to the Investment Banking division, the Markets division and the Research division combined as its investment banking businesses. Op Co's investment banking businesses offer advisory and global capital markets origination, domain knowledge-driven research, sales and trading platforms for institutional investors, global clearing, commission management services and also a comprehensive suite of prime brokerage service. Sectors covered by Op Co's investment banking business include healthcare, technology, media and telecommunications, consumer, industrials, tech-enabled and business services, and energy. Op Co’s CIM division includes advisers to investment funds (including private equity structures and privately placed hedge funds) and registered funds. The Company has also invested capital in its insurance and reinsurance businesses.

The Asset Co segment consists of certain of the Company's private investments, private real estate investments and other legacy investment strategies. The focus of Asset Co is to drive future monetization of the invested capital of the segment.

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

a.    Basis of presentation

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") as promulgated by the Financial Accounting Standards Board ("FASB") through the Accounting Standards Codification (the "Accounting Standards" or "ASC") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying condensed consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to specialized industry accounting.

The accompanying condensed financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Certain footnote disclosures included in the 2021 Form 10-K have been condensed or omitted from the accompanying condensed financial statements as they are not required for interim reporting under US GAAP or are insignificant to the interim reporting period.

b.    Principles of consolidation

The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a Voting Operating Entity ("VOE") or a Variable Interest Entity ("VIE") under US GAAP.

Voting Operating Entities—VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns.

Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units.

Variable Interest Entities—VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it.

The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE.

The VIEs the Company has invested in act as investment managers and/or investment companies that may be managed by the Company. The VIEs are financed through their operations and/or loan agreements with the Company.

In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company consolidates these investment funds when its variable interest is potentially significant to the entity. (see Note 6 for additional disclosures on VIEs).

Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. As of March 31, 2022 and December 31, 2021, the total assets of the consolidated VIEs were $332.4 million and $304.1 million, respectively, and total liabilities of the consolidated VIEs were $6.6 million and $9.8 million, respectively.

The Company consolidates investment funds for which it acts as the managing member/general partner and investment manager. At March 31, 2022, the Company consolidated Ramius Enterprise LP (“Enterprise LP”), an investment fund. At December 31, 2021, the Company consolidated the following investment funds: Enterprise LP and Cowen Private Investments LP ("Cowen Private").

During the first quarter of 2022, the Company deconsolidated Cowen Private as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP ("CSI I LP") due to the Company's ownership being diluted through a capital equalization event.

Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary.

Other—If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for its investment in such entity (primarily consisting of securities of such entity which are purchased and held principally for the purpose of selling them in the near term and classified as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within Investment income (loss) - Securities principal transactions, net or Investment income (loss) - portfolio fund investment income (loss) in the accompanying condensed consolidated statements of operations.

Retention of Specialized Accounting— The Consolidated Funds and certain other consolidated companies are investment companies and apply specialized industry accounting. The Company reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations. Accordingly, the accompanying condensed consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

Certain portfolio fund investments qualify as equity method investments and are investment companies that apply specialized industry accounting. In applying equity method accounting guidance, the Company retains the specialized accounting of the investees and reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Investment Income - portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

In addition, the Company's broker-dealer subsidiaries, Cowen and Company, LLC ("Cowen and Company"), Westminster Research Associates LLC ("Westminster"), Cowen Execution Services Limited ("Cowen Execution Ltd"), ATM Execution LLC ("ATM Execution"), Cowen and Company (Asia) Limited ("Cowen Asia"), and Cowen International Limited ("Cowen International Ltd"), apply the specialized industry accounting for brokers and dealers in securities, which the Company retains upon consolidation.

c.    Use of estimates

The preparation of the accompanying condensed consolidated financial statements in conformity with US GAAP requires the management of the Company to make estimates and assumptions that affect the fair value of securities and other investments, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the accompanying condensed consolidated financial statements, as well as the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

d.    Allowance for credit losses

ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”) prescribed the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update guidance, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer).

The Company applies the guidance in ASC 326 to securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, underwriting fees, strategic/financial advisory fees and placement and sales agent fees, management fees and incentive fees receivable).

The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company’s expectation of the collectability in determining the allowance for credit losses. The Company’s expectation is that the credit risk associated with fees and other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards.

For securities borrowed, the Company applies a practical expedient to measure the allowance for credit losses based on the fair value of the collateral. If the fair value of the collateral held exceeds the amortized cost of the borrowing and the borrower is expected to continue to replenish the collateral as needed, the Company will not recognize an allowance. If the fair value of collateral is less than amortized cost and the borrower is expected to continue to replenish the collateral as needed, the Company applies the CECL model, utilizing a probability and loss given default methodology, only to the extent of the shortfall between the fair value of the collateral and amortized cost.

The credit loss expense related to the allowance for credit losses as well as any recoveries of amounts previously charged is reflected in other expenses in the accompanying condensed consolidated statements of operations.

e.    Valuation of investments and derivative contracts and other investments

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics,

specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is based on their proportional rights of the underlying portfolio company, and is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation impact the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the condensed consolidated financial statements. Certain of the Company's investments are relatively illiquid or thinly traded and may not be immediately liquidated on demand if needed. Fair values assigned to these investments may differ significantly from the fair values that would have been used had a ready market for the investments existed and such differences could be material.

The Company primarily uses the market approach to value its financial instruments measured at fair value. In determining an instrument's level within the hierarchy, the Company categorizes the Company's financial instruments into three categories: securities, derivative contracts and other investments. To the extent applicable, each of these categories can further be divided between those held long or sold short.

The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The election is made on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument.  The Company has elected the fair value option for certain of its investments held by its operating companies.  This option has been elected because the Company believes that it is consistent with the manner in which the business is managed, as well as the way that financial instruments in other parts of the business are recorded. 

Securities—Securities with values based on quoted market prices in active markets for identical assets are classified within level 1 of the fair value hierarchy. These securities primarily include active listed equities, certain U.S. government and sovereign obligations, Exchange Traded Funds ("ETFs"), mutual funds and certain money market securities.

Certain positions for which trading activity may not be readily visible, consisting primarily of convertible debt, corporate debt and loans and restricted equities, are stated at fair value and classified within level 2 of the fair value hierarchy. The estimated fair values assigned by management are determined in good faith and are based on available information considering trading activity, broker quotes, quotations provided by published pricing services, counterparties and other market participants, and pricing models using quoted inputs, and do not necessarily represent the amounts which might ultimately be realized. As level 2 investments include positions that are not always traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability.

Derivative Contracts—Derivative contracts can be exchange-traded or privately negotiated over-the-counter (“OTC”). Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within level 1 or level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. OTC derivatives, such as generic forwards, swaps and options, are classified as level 2 when their inputs can be corroborated by market data. OTC derivatives, such as swaps and options, with significant inputs that cannot be corroborated by readily available or observable market data are classified as level 3.

Other Investments—Other investments consist primarily of portfolio funds, carried interest and equity method investments, which are valued as follows:

i.    Portfolio Funds—Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments

in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy.

ii. Carried Interest—For the private equity and debt fund products the Company offers, the Company is allocated incentive income by the investment funds based on the extent by which the investment funds performance exceeds predetermined thresholds. Carried interest allocations are generally structured from a legal standpoint as an allocation of capital in the Company’s capital account. The Company accounts for carried interest allocations by applying an equity ownership model. Accordingly, the Company accrues performance allocations quarterly based on the fair value of the underlying investments assuming hypothetical liquidation at book value.

iii. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company applies the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

See Notes 6 and 7 for further information regarding the Company's investments, including equity method investments and fair value measurements.

f.    Offsetting of derivative contracts

To reduce credit exposures on derivatives, the Company may enter into master netting agreements with counterparties that permit the Company the right, in the event of a default by a counterparty, to offset the counterparty’s rights and obligations under the agreement and to liquidate and offset any collateral against any net amount owed by the counterparty. Derivatives are reported on a net-by-counterparty basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) in the condensed consolidated statements of financial condition when a legal right of offset exists under an enforceable netting agreement. Additionally, derivatives are reported net of cash collateral received and posted under enforceable credit support agreements in the condensed consolidated statements of financial position, provided a legal right of offset exists. See Note 6 for further information about offsetting of derivative financial instruments.

g.    Receivable from and payable to brokers

Receivable from brokers, dealers, and clearing organizations includes amounts receivable for securities failed to deliver by the Company to a purchaser by the settlement date, amounts receivable from broker-dealers and clearing organizations, commissions receivable from broker-dealers, and interest receivable from securities financing arrangements and are reported net of an allowance for credit losses.

Payable to brokers, dealers and clearing organizations includes amounts payable for securities failed to receive by the Company from a seller by the settlement date, amounts payable to broker-dealers and clearing organizations for unsettled trades, interest payable for securities financing arrangements, and payables of deposits held in proprietary accounts of brokers and dealers.

Receivables and payables with brokers, dealers and clearing organizations arising from unsettled regular-way transactions are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held with multiple financial institutions.

h.    Receivable from and payable to customers

Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settlement-date basis and prepaid research, net of allowance for credit losses. For prepaid research, a prepaid research asset is established for research and related services disbursed in advance of anticipated client commission volumes.

Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settlement-date basis on the statement of financial condition, and other miscellaneous customer payables.

Securities owned by customers, including those that collateralize margin, are not reflected as assets of the Company on the statement of financial condition. The Company holds these securities with the intention of settlement against customer orders and are held as collateral for customer receivables.

i.    Fees receivable

Fees receivable primarily relate to securities transactions and are reported net of an allowance for credit losses.  Fees receivable also include amounts due to the Company for underwriting fees, strategic/financial advisory fees and placement and sales agent fees. Additionally, management and incentive fees due to the Company are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 2o for further reference).

j.    Securities financing arrangements

Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received on a gross basis. The related rebates are recorded in the accompanying condensed consolidated statements of operations as interest and dividends income and interest and dividends expense. Securities borrowed transactions require the Company to deposit cash collateral with the lender. With respect to securities loaned, the Company receives cash or securities as collateral from the borrower. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced or received approximates or is greater than the market value of securities borrowed or loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or returned, as necessary. Securities borrowed and loaned may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. See Note 2d for further information.

Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying condensed consolidated statements of operations. Accrued interest income and expense are recorded in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations, respectively, on an accrual basis in the accompanying condensed consolidated statements of financial condition.

k.     Securities sold under agreements to repurchase

Securities purchased under agreement to resell and securities sold under agreements to repurchase ("repurchase agreements") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. A repo is a transaction in which a firm buys or sells financial instruments from/to a counterparty, typically in exchange for cash, and simultaneously enters into an agreement to resell or repurchase the same or substantially the same financial instruments to/from such counterparty at a stated price plus accrued interest at a future date. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced approximates or is greater than the market value of securities purchased or sold in the transaction. The Company typically enters into repurchase transactions with counterparties that prefer repurchase transactions to securities borrowed and securities loaned transactions. The Company has executed master repurchase agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repurchase for matched book purposes. The Company monitors the market value of repurchases on a daily basis, with additional collateral obtained or returned, as necessary. Repurchases may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company mitigates its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional collateral or returning excess collateral in accordance with the netting provisions available in the master repurchase contracts in place with the counterparties.

Interest paid is recorded in interest and dividends expense in accordance with US GAAP on repurchase agreement transactions on an accrual basis in the accompanying condensed consolidated statements of operations.

l.    Goodwill and intangible assets

Goodwill

Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit.

In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying condensed consolidated statements of operations if the sum of the estimated undiscounted cash flows from the use or disposition of the asset or asset group is less than the corresponding carrying value. The Company continually monitors the estimated average useful lives of existing intangible assets.

m.    Temporary Equity

Temporary equity consists of Redeemable 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock"). The Company has irrevocably elected to cash settle $1,000.00 of each conversion of any share of the Series A Convertible Preferred Stock. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company has classified the Series A Convertible Preferred Stock preferred stock in temporary equity.

n.    Non-controlling interests in consolidated subsidiaries

Non-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities. When non-controlling interest holders do not have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as a component of permanent equity. Ownership which has been classified in permanent equity are non-controlling interests for which the holder does not have the unilateral right to redeem its ownership interests.

o.    Revenue recognition

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company follows a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, the Company includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgments are required in the application of the five-step model including: when determining whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations

are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events.

The Company's principal sources of revenue are generated within two segments. The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, investment income (loss) and incentive income. Investment income is excluded from ASC Topic 606. The Asset Co segment generates revenue through investment income (loss), management fees and incentive income. Revenue from contracts with customers includes management fees, incentive income, investment banking revenue and brokerage services revenue excluding principal transactions. ASC Topic 606 does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The following is a description of principal activities, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 23.

Investment banking

The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from public and private small- and mid-capitalization companies within the Company's sectors.     

Investment banking revenue consists of underwriting fees, strategic/financial advisory fees, expenses reimbursed from clients and placement and sales agent fees.    

•Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible securities offerings. Fee revenue relating to underwriting commitments is recorded at the point in time when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; (iii) the Company has been informed of the number of securities that it has been allotted; and (iv) the issuer obtains control and benefits of the offering; which generally occurs on trade date.

Underwriting fees are recognized gross of transaction-related expenses, and such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction.

•Strategic/financial advisory fees. The Company's strategic advisory revenue includes success fees earned in connection with advising companies, principally in mergers, acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. A significant portion of the Company's advisory revenue (i.e., success-related advisory fees) is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is constrained until satisfaction of the performance obligation. The Company records strategic advisory revenues at the point in time, gross of related expenses, when the services for the transactions are completed or the contract is canceled under the terms of each assignment or engagement.

•Placement and sales agent fees. The Company earns placement agency fees and sales agent commissions in non-underwritten transactions, such as private placements of loans and debt and equity securities, including private investment in public equity transactions ("PIPEs"), and as sales agent in at-the-market offerings of equity securities. The Company records placement revenues (which may be in cash and/or securities) at the point in time when the services for the transactions are completed under the terms of each assignment or engagement. The Company records sales agent commissions on a trade-date basis.

•Expense reimbursements from clients.  Investment banking revenue includes expense reimbursements for transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction.  Expense reimbursements associated with investment banking engagements are recognized in revenue at the point in time when the Company is contractually entitled to reimbursement. The related expenses are presented gross within their respective expense category in the accompanying condensed consolidated statements of operations.

Brokerage

Brokerage revenue consists of commissions, principal transactions, equity research fees and trade conversion revenue.

•Commissions. Commission revenue includes fees from executing and clearing client transactions and commission sharing arrangements. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services on a standalone basis, are recognized at a point in time on trade-date. Commission revenues are generally paid on settlement date and the Company records a receivable between trade-date and payment on settlement date. The Company permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as "soft dollar arrangements". The Company also offers institutional clients the ability to allocate a portion of their gross commissions incurred on trades executed with various brokers to pay for research products and other services provided by third parties by entering into commission sharing arrangements. The Company acts as an agent in the soft dollar and commission sharing arrangements as the customer controls the use of the soft dollars and directs payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues and recorded on trade date. Commissions on soft dollar brokerage are recorded net of the related expenditures. The costs of commission sharing arrangements are recorded for each eligible trade and shown net of commission revenue.

•Equity research fees. Equity research fees are paid to the Company for providing access to equity research. In the US, revenue is recognized once an arrangement exists, access to research has been provided and the customer has benefited from the research. As part of MiFID II, the international customers of the Company's broker-dealers have executed equity research contracts with its clients. The contracts either contain a fixed price for providing access to research or a price at the discretion of the customer with a contract minimum. Fixed equity research fees are recognized over the contract period as the customer is benefiting from the research throughout the contract term. When the equity research fees are based on the customer’s discretion with a contract minimum, the Company recognizes the contract minimum over the life of the contract as the customer benefits from the research provided and adjusts the revenue when the Company can estimate the amount of equity research fees over the contract minimum. Additionally, the Company earns variable consideration for attending client conferences and events. Revenue is recognized when the Company attends a client conference or event.

•Trade conversion revenue. Trade conversion revenue includes fees earned from converting foreign securities into an American Depository Receipt ("ADR") and fees earned from converting an ADR into foreign securities on behalf of customers, and margins earned from facilitating customer foreign exchange transactions. Trade conversion revenue is recognized on a trade-date basis.

Investment Income

Investment income (loss) consists of securities principal transactions, net, portfolio fund principal transactions, net and carried interest allocations. Investment income is excluded from ASC Topic 606.

• Securities principal transactions, net. Principal transactions, net includes realized gains and losses from transactions in financial instruments and unrealized gains and losses from ongoing changes in the fair value of the Company’s positions.

Principal transactions, net generated by the Company's broker-dealers include net trading gains and losses from the Company's market-making activities in over-the-counter equity and fixed income securities, trading of convertible securities, and trading gains and losses on inventory and other Company positions, which include securities previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a short duration.

With respects to the Company's proprietary trading strategies, purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Investment income - Securities principal transactions, net, in the accompanying condensed consolidated statements of operations.

•Portfolio Fund principal transactions, net. Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding certain investments that calculates NAV per share or its equivalent for which the fair value is not readily determinable and is considered an investment company under ASC 946 to measure the

fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Investment income – portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

•Carried interest allocations. The Company is allocated carried interest based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's private equity investment funds. For the private equity fund products the Company offers, the carried interest earned is typically up to 30% of the distributions made to investors after return of their contributed capital and generally a preferred return. The Company recognizes carried interest allocated to the Company under an equity ownership model as investment income - carried interest allocations in the accompanying condensed consolidated statements of operations accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures. Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within Investment Income - Carried interest allocations in the accompanying condensed consolidated statements of operations along with the allocations proportionate to the Company's ownership interests in the investment funds. Generally, carried interest is recognized after the investor has received a full return of its invested capital, plus a preferred return. However, for certain private equity structures, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These private equity structures are generally subject to a potential clawback of these incentive fees upon the liquidation of the private equity structure if the investor has not received a full return of its invested capital plus the preferred return thereon.

Management fees

The Company earns management fees from investment funds and certain managed accounts for which it serves as the investment manager; such fees earned are typically based on committed and invested capital. The Company has determined that the primary drivers of management fees are committed and invested capital relating to private equity funds. The management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company.

Management fees are generally paid on a quarterly basis and are prorated for capital inflows (or commitments) and redemptions (or distributions) and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. While some investors may have separately negotiated fees, in general the management fees are as follows:

•Private equity funds. Management fees for the Company's private equity funds are generally charged at an annual rate of 1% to 2% of committed capital during the investment period (as defined in the relevant partnership agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 1% to 2% of the net asset value or the aggregate cost basis of the unrealized investments held by the private equity funds.  For certain other private equity funds (and managed accounts), the management fees range from 0.2% to 1% and there is no adjustment based on the investment period.  Management fees for the Company's private equity funds are generally paid on a quarterly basis.

•Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of net asset value. Management fees are generally calculated monthly at the end of each month.

Incentive income

The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's investment funds and managed accounts.  The incentive income is charged to the investment funds in accordance with their corresponding investment management or partnership agreement. For the hedge funds the Company offers, incentive income earned is typically up to 20% (in certain cases on performance in excess of a benchmark) of the net profits earned for the full year that are attributable to each fee-paying investor. 

The Company recognizes incentive income charged to the Company's hedge funds based on the net profits of the hedge funds. The Company recognizes such incentive income when the fees are no longer subject to reversal or are crystallized. For certain  hedge funds, the incentive fee crystallizes annually when the high-water mark for such hedge funds is reset, which delays recognition of the incentive fee until year end. In periods following a period of a net loss attributable to an investor, the Company generally does not earn incentive income on any future profits attributable to such investor until the accumulated net loss from prior periods is recovered, an arrangement commonly referred to as a "high-water mark." Generally, incentive income is earned after the investor has received a full return of its invested capital, plus a preferred return.

Consolidated Funds – principal transaction, net

Purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations.

Certain of the Companies Consolidated Funds invest in other investment funds for which the Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Consolidated Funds – Principal transaction, net.

Interest and dividends

Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from securities finance activities and securities held by the Company for purposes of investing capital, investments held by its Consolidated Funds and its brokerage balances. Interest is recognized in accordance with US GAAP and market convention for the imputation of interest of the host financial instrument. Interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date.

Insurance and reinsurance

Premiums for insurance and reinsurance contracts are earned over the coverage period. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly basis. For each of its contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with US GAAP. If the Company determines that a contract does not expose it to a reasonable possibility of a significant loss from insurance risk, the Company records the contract under the deposit method of accounting with any net amount receivable reflected as an asset in other assets, and any net amount payable reflected as a liability within accounts payable, accrued expenses and other liabilities on the condensed consolidated statements of financial condition.

The liabilities for losses and loss adjustment expenses are recorded at the estimated ultimate payment amounts, including reported losses.  Estimated ultimate payment amounts are based upon (1) reports of losses from policyholders, (2) individual case estimates and (3) estimates of incurred but unreported losses.

Provisions for losses and loss adjustment expenses are charged to earnings after deducting amounts recovered and estimates of recoverable amounts and are included in other expenses on the condensed consolidated statements of operations.

Costs of acquiring new policies, which vary with and are directly related to the production of new policies, have been deferred to the extent that such costs are deemed recoverable from future premiums or gross profits. Such costs include commissions and allowances as well as certain costs of policy issuance and underwriting and are included within other assets in the condensed consolidated statements of financial condition.

All of the items above are reported net of any Outward Reinsurance (see Note 18), which is determined as the portion of the Company’s premiums, liabilities for losses and loss adjustment expenses, provisions for losses and loss adjustment expenses, and costs of acquiring new policies that are ceded to providers of such Outward Reinsurance pursuant to their terms and conditions. These ceded amounts are calculated based on the same principles outlined above.

Interest and dividends expense

Interest and dividends expense relates primarily to securities finance activities, trading activity with respect to the Company's investments and interest expense on debt.

p.    Income taxes

The Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely

than not to be realized. The Company evaluates its deferred tax assets for recoverability considering negative and positive evidence, including its historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. The Company records a valuation allowance against its deferred tax assets to bring them to a level that it is more likely than not to be utilized.

US GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements, requiring the Company to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company recognizes accrued interest and penalties related to its uncertain tax positions as a component of income tax expense.

In accordance with federal and state tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand-alone state and local tax returns. The Company also has subsidiaries that are residents in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These subsidiaries are subject to taxes in their respective countries and the Company is responsible for and therefore reports all taxes incurred by these subsidiaries in the condensed consolidated statements of operations. The foreign jurisdictions where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Malta, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong.

q.    Recent pronouncements

In August 2020, the FASB issued guidance simplifying an issuer’s accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features; separate accounting is still required in certain cases. The guidance also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The guidance requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of a public business entity’s convertible debt at the instrument level. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2021 and interim periods within those fiscal years with early adoption permitted. The Company adopted the guidance as of January 1, 2022 under the modified retrospective method. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. See Note 21 for the calculation of diluted earnings per share.

In August 2018, the FASB issued guidance prescribing targeted improvements to financial services – insurance industry accounting guidance for long-duration contracts. The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred acquisition costs for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. For all entities, the guidance is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance.

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Acquisition

3 Months Ended

Mar. 31, 2022

Business Combinations [Abstract]

Acquisitions

Acquisition

Malta

On February 26, 2021 (the "Malta Acquisition Date"), the Company, through its indirect wholly owned subsidiary, Cowen Malta Holdings Ltd. (“Malta Holdings”), completed the acquisition of all of the outstanding equity interest of Axeria Insurance Limited (the “Malta Acquisition”), an insurance company organized under the laws of Malta whose principal business activity is to provide insurance coverage to third parties (see Note 18). Axeria Insurance Limited was renamed Cowen Insurance Company Ltd (“Cowen Insurance Co”) upon acquisition. The Malta Acquisition was completed for a combination of cash and deferred consideration. In the aggregate, the purchase price, assets acquired, and liabilities assumed were not significant and near-term impact to the Company and its consolidated results of operations and cash flows is not expected to be significant.

The aggregate estimated purchase price of the Malta Acquisition was $12.7 million. On the Malta Acquisition Date, the Company paid upfront consideration of $12.5 million, with additional deferred consideration of $0.2 million which was paid during the second quarter of 2021.

The Malta Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, the results of operations of the business acquired is included in the accompanying condensed consolidated statements of operations since the date of the Malta Acquisition and the assets acquired, liabilities assumed recorded at their fair values within their respective line items on the accompanying condensed consolidated statement of financial condition. The Company has recognized a bargain purchase gain of $5.2 million related to the Malta Acquisition and is shown net of associated tax of $1.3 million in the condensed consolidated statement of operations. The bargain purchase gain is primarily driven by the recognition of the customer relationships intangible asset and a contractual discount on the closing equity balance at the Malta Acquisition Date. Additionally, following the Malta Acquisition, the business acquired is included in the Cowen Investment Management reporting unit within the Operating Company segment.

The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of February 26, 2021:

	(dollars in thousands)
Cash	$	14,844
Securities owned, at fair value	1,571
Fixed assets	30
Intangible assets	4,794
Other assets	12,828
Compensation payable	(17)
Other liabilities	(16,099)
Total net identifiable assets acquired and liabilities assumed	17,951
Bargain purchase gain	(5,216)
Total estimated purchase price	$	12,735

As of the Malta Acquisition Date, the estimated fair value of the Company's intangible assets, which are primarily broker relationships, was $4.6 million and had a weighted average useful life of 10 years. The licenses of $0.2 million has indefinite life. Amortization expense for the three months ended March 31, 2022 was $0.1 million and for the three months ended March 31, 2021 was insignificant.

As of March 31, 2022, the estimated amortization expense related to these intangible assets in future periods is as follows:

	(dollars in thousands)
2022	343
2023	458
2024	458
2025	458
2026	458
Thereafter	2,124
	$	4,299

In addition to the purchase price consideration, for the three months ended March 31, 2021, the Company had incurred acquisition-related expenses of $0.2 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying condensed consolidated statements of operations.

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Cash Collateral Pledged

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash Collateral Pledged

Cash Collateral Pledged    

As of March 31, 2022 and December 31, 2021, the Company pledged cash collateral in the amount of $3.4 million and $3.4 million respectively, which relates to letters of credit issued to the landlords of the Company's premises in New York City, Boston and San Francisco. The Company also has pledged cash collateral for reinsurance agreements which amounted to $49.5 million, as of March 31, 2022, and $44.1 million, as of December 31, 2021, which are expected to be released periodically as per the terms of the reinsurance policy between March 31, 2022 and March 31, 2024 (see Notes 12 and 18).

As of March 31, 2022, the Company has the following irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit.

Location	Amount		Maturity
	(dollars in thousands)
New York	$	209	April 2023
New York	$	1,325	October 2022
New York	$	1,226	August 2022
Boston	$	188	March 2023
San Francisco	$	454	October 2025
	$	3,402

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of March 31, 2022 and December 31, 2021 there were no amounts due related to these letters of credit.

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Segregated Cash	3 Months Ended
	Mar. 31, 2022
Segregated Cash [Abstract]
Segregated Cash	Segregated CashAs of March 31, 2022 and December 31, 2021, cash segregated under federal regulations and other restricted deposits of $220.9 million and $194.7 million, respectively, consisted of cash deposited in Special Reserve Bank Accounts for the exclusive benefit of customers under SEC Rule 15c3-3 and cash deposited in Special Reserve Bank Accounts for the exclusive benefit of Proprietary Accounts of Broker-Dealers ("PAB") under SEC Rule 15c3-3 (see Note 24).

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Investments of Operating Entities and Consolidated Funds

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments of Operating Entities and Consolidated Funds

Investments of Operating Entities and Consolidated Funds

a.    Operating entities

Securities owned, at fair value

Securities owned, at fair value are held by the Company and are considered held for trading. Substantially all equity securities, which are not part of the Company's self-clearing securities finance activities, are pledged to external clearing brokers under terms which permit the external clearing broker to sell or re-pledge the securities to others subject to certain limitations.

As of March 31, 2022 and December 31, 2021, securities owned, at fair value consisted of the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Common stock	$	2,348,243	$	2,428,820
Preferred stock	190,184		134,930
Warrants and rights	53,082		46,459
Government bonds	11,992		16,002
Corporate bonds	146,998		21,468
Convertible bonds	5,250		5,250
Term loan	2,375		3,907
Trade claims (*)	4,840		3,496
Private investments	550		410
	$	2,763,514	$	2,660,742

(*)The Company has elected the fair value option for securities owned, at fair value with a fair value of $4.8 million and $3.5 million of trade claims respectively, at March 31, 2022 and December 31, 2021.

Receivable on and Payable for derivative contracts, at fair value

The Company predominantly enters into derivative transactions to satisfy client needs and to manage its own exposure to market and credit risks resulting from its trading activities. The Company’s direct exposure to derivative financial instruments includes futures, currency forwards, equity swaps, interest rate swaps and options. The Company's derivatives trading activities

expose the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets.

The Company's long and short exposure to derivatives is as follows:

Receivable on derivative contracts	As of March 31, 2022				As of December 31, 2021
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Currency forwards	$	11,482	$	109	$	10,727	$	80
Equity swaps	$	2,077,076	388,875		$	1,950,181	305,370
Options (a)	120,847		49,801		217,393		61,219
Interest rate swap (c)	$	427,000	19,839		$	285,000	1,208
Netting - swaps (b)			(115,912)				(81,742)
			$	342,712			$	286,135

Payable for derivative contracts	As of March 31, 2022				As of December 31, 2021
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	2,567	$	53	$	9,378	$	266
Currency forwards	$	138,530	1,084		$	149,575	1,346
Equity swaps	$	825,229	152,265		$	988,329	114,689
Options (a)	117,871		25,214		182,440		36,192
Netting - swap (b)			(131,802)				(92,330)
			$	46,814			$	60,163

(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.

(b) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

(c) Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 12

The following tables present the gross and net derivative positions and the related offsetting amount, as of March 31, 2022 and December 31, 2021. This table does not include the impact of over-collateralization.

			Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Gross amounts not offset in the Condensed Consolidated Statements of Financial Condition
	Gross amounts recognized						Financial instruments (a)		Cash Collateral pledged (a)		Net amounts
	(dollars in thousands)
As of March 31, 2022
Receivable on derivative contracts, at fair value	$	458,624	$	115,912	$	342,712	$	1,431	$	256,061	$	85,220
Payable for derivative contracts, at fair value	178,616		131,802		46,814		2,840		—		43,974
As of December 31, 2021
Receivable on derivative contracts, at fair value	$	367,877	$	81,742	$	286,135	$	1,421	$	211,442	$	73,272
Payable for derivative contracts, at fair value	152,493		92,330		60,163		2,839		—		57,324

(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

The realized and unrealized gains/(losses) related to derivatives trading activities were $(37.8) million and $35.5 million for the three months ended March 31, 2022 and 2021, respectively, and are included in Investment income- Securities principal

transactions, net in the accompanying condensed consolidated statements of operations. The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising the Company's business activities and are calculated before consideration of economic hedging transactions, which generally offset the net gains (losses) included above.

Pursuant to the various derivatives transactions discussed above, except for exchange traded derivatives and certain options, the Company is required to post/receive collateral. These amounts are recognized in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations respectively. As of March 31, 2022 and December 31, 2021, all derivative contracts were with major financial institutions.

Other investments

As of March 31, 2022 and December 31, 2021, other investments included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Portfolio funds, at fair value (1)	$	131,766	$	137,986
Carried interest (2)	70,281		88,925
Equity method investments (3)	35,581		47,200
	$	237,628	$	274,111

(1) Portfolio funds, at fair value

The portfolio funds, at fair value as of March 31, 2022 and December 31, 2021, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
HealthCare Royalty Partners LP (a)(*)	$	791	$	832
HealthCare Royalty Partners II LP (a)(*)	1,241		1,259
Eclipse Ventures Fund I, L.P. (b)	6,348		5,829
Eclipse Ventures Fund II, L.P. (b)	2,359		2,354
Eclipse Continuity Fund I, L.P. (b)	1,827		1,641
Starboard Value and Opportunity Fund LP (c)(*)	48,246		49,252
Starboard Value and Opportunity Fund Ltd (c) (*)	2,675		2,732
Lagunita Biosciences, LLC (d)	5,227		5,671
Starboard Leaders Fund LP (e)(*)	2,826		2,823
Formation8 Partners Fund I, L.P. (f)	19,949		20,992
BDC Fund I Coinvest 1, L.P. (g)	1,250		1,250
Difesa Partners, LP (h)	971		1,017
Cowen Sustainable Investments I LP (i)(*)	12,879		13,102
Cowen Healthcare Investments II LP (i) (*)	9,524		13,055
Cowen Healthcare Investments III LP (i)(*)	6,847		8,426
Cowen Healthcare Investments IV LP (i)(*)	1,987		1,071
Eclipse SPV I, LP (j)(*)	1,445		1,445
TriArtisan ES Partners LLC (k)(*)	1,805		1,805
TriArtisan PFC Partners LLC (l)(*)	1,177		1,112
Ramius Merger Fund LLC (m)(*)	1,760		1,692
Other private investment (n)(*)	294		303
Other affiliated funds (o)(*)	338		323
	$	131,766	$	137,986

* These portfolio funds are affiliates of the Company.

The Company has no unfunded commitments regarding the portfolio funds held by the Company except as noted in Note 22.

(a)HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis.

(b)Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated.

(c)Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice.

(d)Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

(e)Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution.

(f)Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.

(g)BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated.

(h)Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.

(i)Cowen Sustainable Investments I LP, Cowen Healthcare Investments II LP, Cowen Healthcare Investments III LP and Cowen Healthcare Investments IV LP are private equity funds.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights.

(j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects.  Distributions will be made when the underlying investments are liquidated.

(k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated.

(l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated.

(m)Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice.

(n)Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy.

(o)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.

(2)Carried interest

The Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model in other investments in the accompanying condensed consolidated statements of financial condition (see Note 2o). Carried interest allocated to the Company from certain portfolio funds represents Cowen's general partner capital accounts from those funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds. All carried interest balances are earned from affiliates of the Company.

A portion of the Company's carried interest is granted to employees through profit sharing awards designed to more closely align compensation with the overall realized performance of the Company. These arrangements enable certain employees to earn compensation based on performance revenue earned by the Company and are recorded within compensation payable in the accompanying condensed consolidated statements of financial condition and employee compensation and benefits expense in the accompanying condensed consolidated statements of operation based on the probable and estimable payments under the terms of the awards. 

The carried interest as of March 31, 2022 and December 31, 2021, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Cowen Healthcare Investments II LP	$	13,886	$	23,327
Cowen Healthcare Investments III LP	11,510		18,523
Cowen Sustainable Investments I LP	6,725		7,436
Cowen Sustainable Investments Offshore I LP	8,114		9,196
CSI I Prodigy Co-Investment LP	2,241		2,436
CSI PRTA Co- Investment LP	8,682		9,535
TriArtisan TGIF Partners LLC	4,279		4,047
TriArtisan ES Partners LLC	3,389		3,401
TriArtisan PFC Partners LLC	10,408		9,394
Ramius Multi-Strategy Fund LP	555		587
Ramius Merger Fund LLC	368		861
RCG IO Renergys Sarl	124		136
Other affiliated funds	—		46
	$	70,281	$	88,925

(3) Equity method investments

Equity method investments include investments held by the Company in several operating companies. The operating agreement that governs the management of day-to-day operations and affairs of these entities stipulates that certain decisions require support and approval from other members in addition to the support and approval of the Company. As a result, all operating decisions made in these entities requires the support of both the Company and an affirmative vote of a majority of the other managing members who are not affiliates of the Company. As the Company does not possess control over any of these entities, the presumption of consolidation has been overcome pursuant to current Accounting Standards and the Company accounts for these investments under the equity method of accounting. Included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners (b) Starboard Value (and certain related parties) which serves as an operating company whose operations primarily include the day-to-day management (including portfolio management) of several activist investment funds and related managed accounts and (c) operating companies whose operations primarily include the day-to-day management of real estate entities. The Company recorded no impairment charges in relation to its equity method investments for the three months ended March 31, 2022 and 2021.

The Company elected to use the cumulative earnings approach for the distributions it receives from its equity method investments. Under the cumulative earnings approach, any distributions received up to the amount of cumulative earnings are treated as return on investment and classified in operating activities within the cash flows. Any excess distributions would be considered as return of investments and classified in investing activities.

The following table summarizes equity method investments held by the Company:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Starboard Value LP	$	25,741	$	36,889
HealthCare Royalty GP III, LLC	1,830		1,957
HealthCare Royalty GP, LLC	1,595		1,451
HealthCare Royalty GP II, LLC	210		213
HealthCare Royalty GP IV, LLC	1,618		1,716
RCG Longview Debt Fund IV Management, LLC	331		331
HCR Overflow Fund GP, LLC	774		839
HCRP MGS Account Management, LLC	114		598
HCR Stafford Fund GP, LLC	3,119		2,955
Other	249		251
	$	35,581	$	47,200

The Company's income from equity method investments was $5.6 million and $12.6 million and for the three months ended March 31, 2022 and 2021, respectively, and is included in net gains (losses) on other investments on the accompanying condensed consolidated statements of operations.

Securities sold, not yet purchased, at fair value

Securities sold, not yet purchased, at fair value represent obligations of the Company to deliver a specified security at a contracted price and, thereby, create a liability to purchase that security at prevailing prices. The Company's liability for securities to be delivered is measured at their fair value as of the date of the condensed consolidated financial statements. However, these transactions result in off-balance sheet risk, as the Company's ultimate cost to satisfy the delivery of securities sold, not yet purchased, at fair value may exceed the amount reflected in the accompanying condensed consolidated statements of financial condition. As of March 31, 2022 and December 31, 2021, securities sold, not yet purchased, at fair value consisted of the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Common stock	$	956,228	$	1,192,396
Corporate bonds	1,349		37
Preferred stock	17,278		9,009
Warrants and rights	12		6
	$	974,867	$	1,201,448

Securities purchased under agreements to resell/securities sold under agreements to repurchase and securities lending and borrowing transactions

The following tables present the contractual gross and net securities borrowing and lending agreements and securities sold under agreements to repurchase and the related offsetting amount as of March 31, 2022 and December 31, 2021.

							Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
	Gross amounts recognized, net of allowance		Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Additional Amounts Available		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of March 31, 2022
Securities borrowed	$	1,761,146	$	—	$	1,761,146	$	—	$	1,661,310	$	—	$	99,836
Securities loaned	1,735,852		—		1,735,852		—		1,706,171		—		29,681
Securities purchased under agreements to resell	19,621		—		19,621		—		21,035		—		(1,414)
Securities sold under agreements to repurchase	229,192		—		229,192		—		249,116		—		(19,924)
As of December 31, 2021
Securities borrowed	1,704,603		—		1,704,603		—		1,652,007		—		52,596
Securities loaned	1,586,572		—		1,586,572		—		1,592,140		—		(5,568)
Securities sold under agreements to repurchase	$	63,469	$	—	$	63,469	$	—	$	74,443	$	—	$	(10,974)

(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(b)Includes the amount of cash collateral held/posted.

The following tables present gross obligations for securities loaned and securities sold under agreements to repurchase by remaining contractual maturity and class of collateral pledged as of March 31, 2022 and December 31, 2021:

	Open and Overnight		Up to 30 days		31 - 90 days		Greater than 90 days		Total
	(dollars in thousands)
As of March 31, 2022
Securities loaned
Common stock	$	1,728,578	$	—	$	—	$	—	$	1,728,578
Corporate bonds	7,274		—		—		—		7,274
Securities purchased under agreements to resell
Corporate bonds	19,621		—		—		—		19,621
Securities sold under agreements to repurchase
Common stock	—		43,073		—		—		43,073
Corporate bonds	186,119		—		—		—		186,119
As of December 31, 2021
Securities loaned
Common stock	$	1,570,835	$	—	$	—	$	—	1,570,835
Corporate bonds	15,737		—		—		—		15,737
Securities sold under agreements to repurchase
Common stock	—		20,906		42,563		—		63,469

Variable Interest Entities

The total assets and liabilities of the variable interest entities for which the Company has concluded that it holds a variable interest, but for which it is not the primary beneficiary, are $9.1 billion and $692.4 million as of March 31, 2022 and $9.7 billion and $744.5 million as of December 31, 2021, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of March 31, 2022 was $155.1 million, and as of December 31, 2021 was $165.5 million, all of which is included in other investments, at fair value in the accompanying condensed consolidated statements of financial condition. Additionally, the Company's maximum exposure to loss for the variable interest entities noted above as of March 31, 2022 and December 31, 2021, was $224.7 million and $233.6 million, respectively.  The maximum exposure to loss often differs from the carrying value of exposure to loss of the variable interests. The maximum exposure to loss is dependent on the nature of the variable interests in the VIEs and is limited to the notional amounts of certain commitments and guarantees.

b.    Consolidated Funds

Other investments, at fair value

Investments in portfolio funds, at fair value

As of March 31, 2022 and December 31, 2021, investments in portfolio funds, at fair value, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Investments of Enterprise LP	$	97,182	$	99,067
	$	97,182	$	99,067

Consolidated portfolio fund investments of Enterprise LP    

On May 12, 2010, the Company announced its intention to close its master fund, Ramius Enterprise Master Fund Ltd ("Enterprise Master"). Enterprise LP operated under a "master-feeder" structure up until January 1, 2019, when Enterprise Master distributed its capital to each feeder and was liquidated. As of March 31, 2022 and December 31, 2021, the consolidated investments in portfolio funds include Enterprise LP's investment in RCG Special Opportunities Fund, Ltd which is a portfolio fund that invests in a limited number of private equity investments directly as well as through affiliated portfolio funds.

Indirect Concentration of the Underlying Investments Held by Consolidated Funds

From time to time, either directly held by the Company, indirectly through the Company's consolidated entities or indirectly through its investments in the Consolidated Funds, the Company may maintain exposure to a particular issue or issuer (both long and/or short) which may account for 5% or more of the Company's equity. Based on information that is available to the Company as of March 31, 2022 and December 31, 2021, the Company assessed whether or not its interests in an issuer for which the

Company's pro-rata share exceeds 5% of the Company's equity. There was one indirect concentration that exceeded 5% of the Company's equity as of March 31, 2022 and December 31, 2021, respectively.

Through its investments in a Consolidated Fund and combined with direct Company investments, the Company maintained exposure to a particular investment which accounted for 5% or more of the Company's equity.

	Investment's percentage of the Company's stockholders' equity
	Issuer	Security Type	Country	Industry	Percentage of Stockholders' Equity		Market Value
							(dollars in thousands)
As of March 31, 2022	Linkem S.p.A.	Equity and warrants	Italy	Wireless Broadband	7.87	%	$	81,498
As of December 31, 2021	Linkem S.p.A.	Equity and warrants	Italy	Wireless Broadband	8.22	%	$	83,537

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Fair Value Measurements for Operating Entities and Consolidated Funds

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements for Operating Entities and Consolidated Funds

Fair Value Measurements for Operating Entities and Consolidated Funds

The following table presents the assets and liabilities that are measured at fair value on a recurring basis on the accompanying condensed consolidated statements of financial condition by caption and by level within the valuation hierarchy as of March 31, 2022 and December 31, 2021:

	Assets at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	11,992	$	—	$	—	$	—	$	11,992
Preferred stock	20,483		—		169,701		—		190,184
Common stock	2,304,895		3,517		39,831		—		2,348,243
Convertible bonds	—		—		5,250		—		5,250
Corporate bonds	28,892		115,680		2,426		—		146,998
Trade claims	—		—		4,840		—		4,840
Term loan	—		2,375		—		—		2,375
Warrants and rights	34,525		—		18,557		—		53,082
Private investments	—		—		550		—		550
Receivable on derivative contracts, at fair value
Currency forwards	—		109		—		—		109
Equity swaps	—		388,875		—		(115,912)		272,963
Options	49,573		—		228		—		49,801
Interest rate swap	—		19,839		—		—		19,839
	$	2,450,360	$	530,395	$	241,383	$	(115,912)	$	3,106,226
Portfolio funds measured at net asset value (a)									131,766
Consolidated Funds' portfolio funds measured at net asset value (a)									97,182
Carried interest (a)									70,281
Equity method investments (a)									35,581
Total investments									$	3,441,036

	Liabilities at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	858,685	$	97,543	$	—	$	—	$	956,228
Corporate bonds	—		1,349		—		—		1,349
Preferred stock	17,278		—		—		—		17,278
Warrants and rights	12		—		—		—		12
Payable for derivative contracts, at fair value
Futures	53		—		—				53
Currency forwards	—		1,084		—		—		1,084
Equity swaps	—		152,265		—		(131,802)		20,463
Options	22,135		—		3,079		—		25,214
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		57,339		—		57,339
	$	898,163	$	252,241	$	60,418	$	(131,802)	$	1,079,020

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the acquisition of Quarton International AG "Quarton"), the fourth quarter of 2020 (the acquisition of MHT Partners, LP "MHT") and the fourth quarter of 2021 (the acquisition of Portico Capital Advisors "Portico"), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $12.5 million to $14.9 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million.

(c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

	Assets at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	16,002	$	—	$	—	$	—	$	16,002
Preferred stock	12,299		—		122,631		—		134,930
Common stock	2,396,041		121		32,658		—		2,428,820
Convertible bonds	—		—		5,250		—		5,250
Corporate bonds	—		19,049		2,419		—		21,468
Trade claims	—		—		3,496		—		3,496
Term loan	—		3,907		—		—		3,907
Private investments	—		—		410		—		410
Warrants and rights	31,056		—		15,403		—		46,459
Receivable on derivative contracts, at fair value
Currency forwards	—		80		—		—		80
Equity swaps	—		305,370		—		(81,742)		223,628
Options	60,985		—		234		—		61,219
Interest rate swap	—		1,208		—				1,208
	$	2,516,383	$	329,735	$	182,501	$	(81,742)	$	2,946,877
Portfolio funds measured at net asset value (a)									137,986
Consolidated Funds' portfolio funds measured at net asset value (a)									99,067
Carried interest (a)									88,925
Equity method investments (a)									47,200
Total investments									$	3,320,055

	Liabilities at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	1,192,396	$	—	$	—	$	—	$	1,192,396
Corporate bonds	—		37		—		—		37
Preferred stock	9,009		—		—		—		9,009
Warrants and rights	6		—		—		—		6
Payable for derivative contracts, at fair value
Futures	266		—		—		—		266
Currency forwards	—		1,346		—		—		1,346
Equity swaps	—		114,689		—		(92,330)		22,359
Options	32,773		—		3,419		—		36,192
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		62,223		—		62,223
	$	1,234,450	$	116,072	$	65,642	$	(92,330)	$	1,323,834

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the Quarton acquisition), the fourth quarter of 2020 (the MHT acquisition) and the fourth quarter of 2021 (the Portico acquisition), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the

Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $10.1 million to $25.0 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero  to $58.0 million.

(c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

The following table includes a roll forward of the amounts for the three months ended March 31, 2022 and 2021 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.

	Three Months Ended March 31, 2022
	Balance at December 31, 2021		Transfers in		Transfers out		Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2022		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	122,631	$	—	$	—	$	3,441	$	(1,100)	$	44,729	$	169,701	$	44,729
Common stock	32,658		—		—		2,018		(33)		5,188		39,831		5,188
Convertible bonds	5,250		—		—		—		—		—		5,250		—
Corporate bond	2,419		—		—		—		—		7		2,426		7
Options, asset	234		—		—		—		—		(6)		228		(6)
Options, liability	3,419		—		—		—		—		(340)		3,079		(340)
Warrants and rights	15,403		—		—		414		—		2,740		18,557		2,740
Trade claims	3,496		—		—		1,666		(615)		293		4,840		293
Private investments	410		—		—		353		(250)		37		550		37
Contingent consideration liability	62,223		—		—		—		(10,076)		5,192		57,339		5,192

	Three Months Ended March 31, 2021
	Balance at December 31, 2020		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2021		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	59,967	$	—	$	—		$	1,859	$	(4,651)	$	(698)	$	56,477	$	(698)
Common stock	23,786		—		(5,353)		(a)	3,226		(1,387)		2,434		22,706		1,679
Convertible bonds	6,040		—		—			1,050		(3,930)		(23)		3,137		(23)
Corporate Bond, asset	135		—		—			70		(49)		(20)		136		(49)
Options, asset	251		—		—			—		—		(10)		241		(10)
Options, liability	3,915		—		—			—		—		(618)		3,297		(618)
Warrants and rights	6,547		—		—			3,406		(1,206)		(823)		7,924		(895)
Term Loan	12,623		—		—			322		—		(521)		12,424		(521)
Trade claim	8,713		—		—			1,378		(4,216)		30		5,905		(1,021)
Private investments	642		—		—			443		—		—		1,085		—
Corporate bond, liability	704		—		—			—		(289)		—		415		—
Government bonds, liability	1,500		—		—			—		(1,278)		300		522		87
Contingent consideration liability	37,952		—		—			(11,312)		—		(7,061)		19,579		(7,061)
Consolidated Funds
Common stock	2,951		—		—			—		—		—		2,951		—
Warrants and rights	5,806		—		—			—		(670)		193		5,329		(477)

(1) Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying condensed consolidated statements of operations.

(a) The entity in which the Company is invested completed an initial public offering.

Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above.

The Company recognizes all transfers and the related unrealized gain (loss) at the beginning of the reporting period.

Transfers between level 2 and 3 generally relate to whether significant relevant observable inputs are available for the fair value measurements or due to change in liquidity restrictions for the investments.

The following table includes quantitative information as of March 31, 2022 and December 31, 2021 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments.

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value March 31, 2022		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	75,253	Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 20% 6.25x - 6.75x	13% 6.5x
Options	228		Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 13.5% 6.25x - 6.75x	13% 6.5x
Trade claims	2,138		Discounted cash flows	Discount rate	50%	50%
Warrants and rights	5,986		Discounted cash flows Guideline companies Option pricing model	Discount rate EBITDA Market Multiples Volatility	12.5% - 13.5% 6.25x - 6.75x 73% - 103%	13.0% 6.5x 97.2%
Other level 3 assets (a)	157,778
Total level 3 assets	$	241,383
Level 3 Liabilities
Options	3,079		Discounted cash flows Option pricing model	Discount rate Volatility	2.29% 35%	2.29% 35%
Contingent consideration liability	57,339		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	8.6% - 16% 20% - 22%	12.3% 20.9%
Total level 3 liabilities	$	60,418

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2021		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	76,491	Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 20% 6.25x - 6.75x	13% 6.5x
Trade claims	2,376		Discounted cash flows	Discount rate	40%	40%
Warrants and rights	4,483		Discounted cash flows Guideline companies Option pricing model	Discount rate EBITDA Market Multiples Volatility	12.5% - 13.5% 6.25x - 6.75x 90% - 100%	13% 6.5x 95%
Options	234		Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 13.5% 6.25x - 6.75x	13% 6.5x
Other level 3 assets (a)	98,917
Total level 3 assets	$	182,501
Level 3 Liabilities
Options	3,419		Option pricing model	Volatility	35%	35%
Contingent consideration liability	62,223		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	7% - 15% 20% - 24%	12% 22%
Total level 3 liabilities	$	65,642

(a)The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions.

The Company has established valuation policies, procedures and internal control infrastructure over the fair value measurement of financial instruments. In the event that observable inputs are not available, the control processes are designed to ensure that the valuation approach utilized is applicable, reasonable and consistently applied. Where a pricing model is used to determine fair value, these control processes include reviews of the methodology and inputs for both reasonableness and applicability. Consistent with best practices, recently executed comparable transactions and other observable market data are used for the purposes of validating both the model and the assumptions used to calculate fair value. Independent of trading and valuation functions, the Company’s Valuation Committee in conjunction with its Price Verification team, plays an important role in determining that financial instruments are appropriately valued and that fair value measurements are both reasonable and reliable. This is particularly important where prices or valuations that require inputs are less observable. The Valuation Committee is comprised of senior management, including non-investment professionals, who are responsible for overseeing and monitoring the pricing of the Company's investments.

The US GAAP fair value leveling hierarchy is designated and monitored on an ongoing basis. In determining the designation, the Company takes into consideration a number of factors including the observability of inputs, liquidity of the investment and the significance of a particular input to the fair value measurement. Designations, models, pricing vendors, third party valuation providers and inputs used to derive fair market value are subject to review by the valuation committee and the internal audit group. The Company reviews its valuation policy guidelines on an ongoing basis and may adjust them in light of improved valuation metrics and models, the availability of reliable inputs and information, and prevailing market conditions. The Company regularly reviews a profit and loss report, as well as other periodic reports, and analyzes material changes from period to period in the valuation of its investments as part of its control procedures. The Company also performs back testing on a regular basis by comparing prices observed in executed transactions to previous valuations.

The fair market value for level 3 securities may be highly sensitive to the use of industry-standard models, unobservable inputs and subjective assumptions. The degree of fair market value sensitivity is also contingent upon the subjective weight given to specific inputs and valuation metrics. The Company holds various equity and debt instruments where different weight may be applied to industry-standard models representing standard valuation metrics such as: discounted cash flows, market multiples, comparative transactions, capital rates, recovery rates and timing, and bid levels. Generally, changes in the weights ascribed to the various valuation metrics and the significant unobservable inputs in isolation may result in significantly lower or higher fair value measurements. Volatility levels for warrants and options are not readily observable and subject to interpretation. The interrelationship between unobservable inputs may vary significantly amongst level 3 securities as they are generally highly idiosyncratic. Significant increases (decreases) in any of those inputs in isolation can result in a significantly lower (higher) fair value measurement.

Other financial assets and liabilities

The following table presents the carrying values and fair values, at March 31, 2022 and December 31, 2021, of financial assets and liabilities and information on their classification within the fair value hierarchy which are not measured at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value (see Note 2e).

	March 31, 2022						December 31, 2021						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	512,978		$	512,978		$	914,343		$	914,343		Level 1
Cash collateral pledged	52,865			52,865			47,494			47,494			Level 2
Segregated cash	220,882			220,882			194,701			194,701			Level 1
Securities purchased under agreements to resell	19,621			19,621			—			—			Level 2
Securities borrowed	1,761,146			1,761,146			1,704,603			1,704,603			Level 2
Loans receivable	5,041			5,041		(b)	4,858			4,858		(b)	Level 3
Consolidated Funds
Cash and cash equivalents	23			23			296			296			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	229,192			229,192			63,469			63,469			Level 2
Securities loaned	1,735,852			1,735,852			1,586,572			1,586,572			Level 2
Notes payable and other debt	625,766		(c)	644,238		(a)	623,371		(c)	655,229		(a)	Level 2

(a)Notes payable and other debt are based on the last broker quote available.

(b)The fair market value of level 3 loans is calculated using discounted cash flows where applicable. (c)The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.7 million and $0.2 million as of March 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.

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Deposits with Clearing Organizations, Brokers and Banks	3 Months Ended
	Mar. 31, 2022
Deposits with Clearing Organizations, Brokers and Banks [Abstract]
Deposits with Clearing Organizations, Brokers and Banks	Deposits with Clearing Organizations, Brokers and BanksUnder the terms of agreements between the Company and some of its clearing organizations, brokers and banks, balances owed are collateralized by certain of the Company's cash and securities balances. As of March 31, 2022 and December 31, 2021, the Company had a total of $105.9 million and $111.9 million, respectively, in deposit accounts with clearing organizations, brokers and banks that could be used as collateral to offset losses incurred by the clearing organizations, brokers and banks, on behalf of the Company's activities, if such losses were to occur.

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Receivables from and payables to brokers, dealers and clearing organizations

3 Months Ended

Mar. 31, 2022

Brokers and Dealers [Abstract]

Receivables From and Payables to Brokers, Dealers and Clearing Organizations

Receivable From and Payable To Brokers, Dealers and Clearing Organizations

Receivable from and payable to brokers, dealers and clearing organizations includes cash held at the clearing brokers, amounts receivable or payable for unsettled transactions, monies borrowed and proceeds from short sales equal to the fair value of securities sold, not yet purchased, at fair value, which are restricted until the Company purchases the securities sold short. Pursuant to the master netting agreements the Company entered into with its brokers, dealers and clearing organizations, these balances are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held at multiple financial institutions.

As of March 31, 2022 and December 31, 2021, amounts receivable from brokers, dealers and clearing organizations include:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Broker-dealers	$	1,342,242	$	1,533,713
Securities failed to deliver	91,561		17,851
Clearing organizations	44,450		56,075
Securities borrowed/loaned interest receivable	9,658		6,708
	$	1,487,911	$	1,614,347

As of March 31, 2022 and December 31, 2021, amounts payable to brokers, dealers and clearing organizations include:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Broker-dealers	$	419,423	$	483,112
Securities failed to receive	95,201		57,894
Clearing organizations	62,804		37,925
Securities borrowed/loaned interest payable	10,112		7,622
	$	587,540	$	586,553

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Receivable from and Payable to Customers	3 Months Ended
	Mar. 31, 2022
Receivables and Payable to Customers [Abstract]
Receivable from and Payables to Customers [Text Block]	Receivable From and Payable To CustomersAs of March 31, 2022 and December 31, 2021, receivable from customers of $159.6 million and $159.4 million, respectively, consist of amounts owed by customers relating to securities transactions not completed on settlement date and receivables arising from prepaid research. As of March 31, 2022 and December 31, 2021, payable to customers of $2.2 billion and $2.4 billion, respectively, include amounts due on cash and margin transactions to the Company's clients, some of which have their assets held by a Company omnibus account, which are included within receivables from brokers, dealers and clearing organizations in the accompanying condensed consolidated statements of financial condition. In the omnibus structure, positions that are owned by Cowen International Ltd are fully cross collateralized by client funds, meaning that the Company does not have market risk. Additionally, Cowen International Ltd has no obligation to settle any trade that it deems inappropriate from a risk perspective, adding an important market and counterparty risk mitigating factor.

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Commission Management Payable	3 Months Ended
	Mar. 31, 2022
Commission Management Payable [Abstract]
Commission Management Payable	Commission Management PayableThe Company receives a gross commission from various brokers, which is then used to fund commission sharing and recapture arrangements, less the portion retained as income to the Company. Accrued commission sharing and commission recapture payable of $127.0 million and $103.0 million, as of March 31, 2022 and December 31, 2021, respectively, are classified as commission management payable in the accompanying condensed consolidated statements of financial condition.

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Convertible Debt and Notes Payable

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Convertible Debt and Notes Payable

Convertible Debt and Notes Payable

As of March 31, 2022 and December 31, 2021, the Company's outstanding debt was as follows:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Notes payable	$	174,139	$	174,015
Term loan	434,319		435,147
Other notes payable	15,857		12,537
Finance lease obligations	1,451		1,672
	$	625,766	$	623,371

Convertible Debt

December 2022 Convertible Notes

The Company, on December 14, 2017, issued $135.0 million aggregate principal amount of 3.00% convertible senior notes due December 2022 (the “December 2022 Convertible Notes”). The December 2022 Convertible Notes have a final maturity date of December 15, 2022 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such date. The interest on the December 2022 Convertible Notes is payable semi-annually on December 15 and June 15 of each year. The December 2022 Convertible Notes are senior unsecured obligations of Cowen. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock. Pursuant to the indenture governing the December 2022 Convertible Notes, conversions of the December 2022 Convertible Notes will be settled by the delivery and/or payment, as the case may be, of Cowen’s Class A Common Stock, cash, or a combination thereof, at the Company's election.

The Company recognized the embedded cash conversion option at issuance date fair value, which also represents the initial unamortized discount on the December 2022 Convertible Notes of $23.4 million and is shown net in convertible debt in the accompanying condensed consolidated statements of financial condition. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity.

During December 2020, the Company repurchased and extinguished $46.9 million of the outstanding principal amount of the December 2022 Convertible Notes for cash consideration of $70.5 million. In conjunction with the partial extinguishment of the December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $3.6 million and capitalized debt issuance costs of $0.4 million. The Company allocated $29.6 million of the cash consideration paid to the extinguishment of the equity component of the December 2022 Convertible Notes. The Company recognized $2.7 million of gain on debt extinguishment.

On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes, and provided holders the option to elect to settle the as-converted value of the December 2022 Convertible Notes as allowed under the terms of the December 2022 Convertible Notes. As a result of the Company’s call for redemption of the December 2022 Convertible Notes, the December 2022 Convertible Notes were convertible, at the option of the holder at any time prior to June 22, 2021, the second business day prior to the December 2022 Convertible Notes' Redemption Date. On June 24, 2021 (the "Redemption Date") the Company redeemed all of the outstanding principal amount of the December 2022 Convertible Notes. The redemption amount was determined based on the holders election to convert, which allowed for either 100.00% of the principal amount thereof plus accrued and unpaid interest on such principal amount up to June 15, 2021, to, but not including the Redemption Date of the December 2022 Convertible Notes, or the value of the Company's Class A common stock to be issued on conversion. The settlement method for the December 2022 Convertible Notes was $88.1 million in cash, (the outstanding principal amount of the December 2022 Convertible Notes) and 2,938,841 shares of the Company’s Class A common stock, (the remainder of the conversion obligation in excess of the principal amount). The conversion rate on the December 2022 Convertible Notes on the Redemption Date was 33.35 shares of the Company’s Class A common stock per $1,000.00 principal amount of December 2022 Convertible Notes converted. In conjunction with the redemption of the remaining December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $5.1 million and capitalized debt issuance costs of $0.5 million.

Amortization on the discount, included within interest and dividends expense in the accompanying condensed consolidated statements of operations is $0.8 million for the three months ended March 31, 2021, based on an effective interest rate of 7.13%.

The Company capitalized the debt issuance costs in the amount of $2.2 million, which is a direct deduction from the carrying value of the debt and was amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations. The Company recorded interest expense of $0.7 million for the three months ended March 31, 2021.

Notes Payable

May 2024 Notes

On May 7, 2019, the Company completed its private placement of $53.0 million aggregate principal amount of 7.25% senior notes due May 2024 (the "May 2024 Notes") with certain institutional investors. On September 30, 2019, the Company issued an additional $25.0 million of the same series of notes. The additional May 2024 Notes were purchased at a premium of $0.5 million, which is shown net in notes payable in the accompanying condensed consolidated statement of financial condition. To date the May 2024 Notes have maintained their initial private rating. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $1.4 million and $1.4 million for the three months ended March 31, 2022 and 2021, respectively. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in September 2019, which is a direct deduction from the carrying value of the debt and will be amortized over the life of the May 2024 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations.

June 2033 Notes

On June 11, 2018, the Company completed its public offering of $90.0 million of 7.75% senior notes due June 2033 (the "June 2033 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $10.0 million principal amount of the June 2033 Notes. Interest on the June 2033 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $1.9 million for the three months ended March 31, 2022 and 2021, respectively. The Company capitalized debt issuance costs of approximately $3.6 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the June 2033 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations.

December 2027 Notes

On December 8, 2017, the Company completed its public offering of $120.0 million of 7.35% senior notes due December 2027 (the "December 2027 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $18.0 million principal amount of the December 2027 Notes. Interest on the December 2027 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $2.5 million for three months ended March 31, 2021. The Company capitalized debt issuance costs of approximately $5.0 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the December 2027 Notes in interest and dividends expense in the accompanying condensed consolidated statements of operations. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses payable by the Company were used to redeem all of its 8.25% senior notes due October 2021 and for general corporate purposes.

On March 24, 2021, the Company delivered payment of and discharged all $138.0 million outstanding aggregate principal of the December 2027 Notes plus accrued and unpaid interest through the effective redemption date of April 23, 2021. In conjunction with the extinguishment of the December 2027 Notes , the Company accelerated the pro-rata capitalized debt issuance costs. During the three months ended March 31, 2021, the Company recognized $4.4 million of loss on debt extinguishment.

Term Loan

March 2028 Term Loan

On March 24, 2021, the Company borrowed $300 million of first lien term loan due March 24, 2028. On December 15, 2021, the Company borrowed an additional $150 million first lien term loan under the same terms and conditions as, and fungible with, the initial first lien term loan (collectively, the “March 2028 Term Loan”). The aggregate amount borrowed under the March 2028 Term Loan is $450 million. The March 2028 Term Loan bears interest at an annual rate equal to, at the option of the Company, either the (a) London Inter-bank Offered Rate ("LIBOR") (adjusted for reserves and subject to a floor of 0.75%) plus a margin of 3.25% or (b) an alternate base rate plus a margin of 2.25%. The Company is required to pay amortization of approximately 1.00% per annum of the original principal amount of the March 2028 Term Loan. Additionally, the Company has entered into an interest rate swap to offset the floating interest rate of the March 2028 Term Loan (See Note 6). The obligations of the Company for the March 2028 Term Loan are guaranteed by certain of the Company’s wholly-owned domestic subsidiaries (excluding its broker-dealer subsidiaries) (the “Guarantors”) and secured by substantially all of the assets of the Company and the

Guarantors, subject in each case to certain customary exceptions. The terms of the March 2028 Term Loan contain customary affirmative and negative covenants, subject to certain customary exceptions, thresholds, qualifications and “baskets”. Proceeds from the March 2028 Term Loan were used to (i) satisfy and discharge and redeem the Company’s 2027 Senior Notes, (ii) redeem the Company’s December 2022 Convertible Notes that remained outstanding as of March 31, 2021 and pay the cash settlement amount in connection with the conversion of December 2022 Convertible Notes prior to that redemption date, and (iii) for the payment of fees, commissions, premiums, expenses and other transaction costs (including original issue discount or upfront fees) payable in connection with the transactions related thereto. As of March 31, 2022, the outstanding principal amount of the March 2028 Term Loan was $445.5 million.

Interest expense for the March 2028 Term Loan was $4.5 million and $0.2 million for the three months ended March 31, 2022 and 2021, based on an effective interest rate of 4.46%. In March 2021, the Company capitalized debt issuance costs of approximately $6.6 million and initial unamortized discount of $1.5 million related to the March 2028 Term Loan which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying condensed consolidated statements of operations. In December 2021, the Company capitalized debt issuance costs of approximately $2.7 million and unamortized discount of $1.5 million related to the additional borrowing of $150 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying condensed consolidated statements of operations.

The U.K. Financial Conduct Authority, which regulates LIBOR, has announced that all US Dollar LIBOR settings will either cease to be provided by any administrator or no longer be representative as of June 30, 2023. As the March 2028 Term Loan represents the Company’s only significant exposure to LIBOR as of March 31, 2022, the transition to an alternative Inter-bank Offer Rate is not expected to have a material impact on Company's consolidated financial statements.

Other Notes Payable

During January 2022, the Company borrowed $4.0 million to fund insurance premium payments. This note had an effective interest rate of 2.01% and was due in December 2022, with monthly payment requirements of $0.4 million. As of March 31, 2022, the outstanding balance note was $3.2 million. Interest expense for the three months ended March 31, 2022 was insignificant.

On September 30, 2020, the Company borrowed $72.0 million from Purple Protected Asset S-81 ("PPA S-81"), a Luxembourg entity unrelated to Cowen. The Company repaid $60.0 million of the PPA S-81 loan in June 2021. The loan is payable on September 30, 2023, had an initial interest rate of 1.4 times the Secured Overnight Financing Rate ("SOFR") plus 6.07% until December 31, 2020 and 1.4 times the SOFR plus 5.8% until June 30, 2021 and 3.65 times the SOFR plus 4.0% thereafter with quarterly interest payments. The loan obligation, as well as a loan issued by The Military Mutual Ltd (a United Kingdom company unrelated to Cowen) with principal of $28.4 million that was sold by Cowen Re to PPA S-81 at fair value for no gain or loss on September 30, 2020, are fully cash collateralized through a reinsurance policy provided by Cowen Re which is reflected in cash collateral pledged in the condensed consolidated statements of financial condition as of December 31, 2020 (see Notes 4 and 18). The Company capitalized debt issuance costs of approximately $1.7 million which is a direct deduction from the carrying value of the loan and will be amortized over the life of the loan in interest and dividends expense shown in the accompanying condensed consolidated statements of operations. The Company recorded interest expense of $0.5 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively, related to its loan payable to PPA S-81.

During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note had an effective interest rate of 6% and is due in November 2024, with monthly payment requirements of $0.1 million. As of March 31, 2022, the outstanding balance on this note was $1.5 million. Interest expense for the three months ended March 31, 2022 and 2021 was insignificant.

Finance Lease Obligations

The Company has entered into various finance leases for computer equipment. These finance lease obligations are included in notes payable and other debt in the accompanying condensed consolidated statements of financial condition.

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's finance lease obligations reflected in the accompanying condensed consolidated statements of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	324		$	309
Interest on lease liabilities	$	20		$	34
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	20		$	34
Financing cash flows from finance leases	$	274		$	332
Weighted average remaining lease term - operating leases (in years)	1.63			2.01
Weighted average discount rate - operating leases	4.66		%	4.89		%

Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of March 31, 2022, are as follows:

	Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2022	$	11,468	$	16,733	$	3,752	$	849
2023	13,405		22,351		12,593		500
2024	88,578		22,168		543		100
2025	7,750		21,986		—		49
2026	7,750		21,803		—		12
Thereafter	150,375		445,631		—		—
Subtotal	279,326		550,672		16,888		1,510
Less (a)	(105,187)		(116,353)		(1,031)		(59)
Total	$	174,139	$	434,319	$	15,857	$	1,451

(a)Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt.

Letters of Credit

As of March 31, 2022, the Company has six irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. The Company also has pledged cash collateral for reinsurance agreements (See Note 4).

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of March 31, 2022 and December 31, 2021, there were no amounts due related to these letters of credit.

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Redeemable Preferred Stock

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Redeemable Preferred Stock

Redeemable Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of preferred stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding. The Company's amended and restated certificate of incorporation permits the Company to issue up to 10,000,000 shares of preferred stock in one or more series with such designations, titles, voting powers, preferences and rights and such qualifications, limitations and restrictions as may be fixed by the board of directors of the Company without any further action by the Company's stockholders. The Company's board of directors may increase or decrease the number of shares of any series of preferred stock following the issuance of that series of preferred stock, but in no instance can the number of shares of a series of preferred stock be reduced below the number of shares of the series then outstanding.

On May 19, 2015, the Company completed its offering of 120,750 shares of Series A Convertible Preferred Stock that provided $117.2 million of proceeds, net of underwriting fees and issuance costs of $3.6 million. Each share of the Series A

Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum, which will be payable, when and if declared by the board of directors of the Company, quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Company may, at its option, pay dividends in cash, common stock or a combination thereof. The Company declared and paid a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million for the three months ended March 31, 2022. The Company declared and accrued a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million for the three months ended March 31, 2021. Each share of Series A Convertible Preferred Stock is non-voting and has a liquidity preference over the Company's Class A common stock and ranks senior to all classes or series of the Company's Class A common stock, but junior to all of the Company's existing and future indebtedness with respect to dividend rights and rights upon the Company's involuntary liquidation, dissolution or winding down.

Upon issuance, each share of Series A Convertible Preferred Stock was convertible, at the option of the holder, into a number of shares of the Company's Class A common stock equal to the liquidation preference of $1,000.00 divided by the conversion rate. The initial conversion rate (subsequent to the December 5, 2016 reverse stock split) is 38.0619 shares (which equates to $26.27 per share) of the Company's Class A common stock for each share of the Series A Convertible Preferred Stock. At any time on or after May 20, 2020, when the Company's capped call option expired, the Company was able to elect to convert all outstanding shares of the Series A Convertible Preferred Stock into shares of the Company's Class A common stock, cash or a combination thereof, at the Company's election, in each case, based on the then-applicable conversion rate, if the last reported sale price of the Company's Class A common stock equals or exceeds 150% of the then-current conversion price on at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days (including on the last trading day of such period) immediately prior to such election. At the time of conversion, the conversion rate may be adjusted based on certain events, including but not limited to the issuance of cash dividends or Class A common stock as dividends to the Company's Class A common shareholders or a share split or combination.

On December 31, 2021, the Company irrevocably elected that, upon the conversion of any share of the outstanding Series A Convertible Preferred Stock, the Company will settle $1,000.00 of its conversion obligation in cash. With respect to each conversion, to the extent the conversion obligation per share of Series A Convertible Preferred Stock is greater than $1,000.00, the Company may satisfy its conversion obligation in respect of such excess using any settlement method permitted under the Certificate of Designations. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company reclassified the Series A Convertible Preferred Stock to temporary equity at December 31, 2021.

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Stockholder's Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholder's Equity

Stockholder's Equity

The Company is authorized to issue 125,000,000 shares of common stock, which shall consist of 62,500,000 shares of Class A common stock, par value $0.01 per share, and 62,500,000 shares of Class B common stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of common stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding.

The certificate of incorporation of the Company provides for two classes of common stock, and for the conversion of each class into the other, to provide a mechanism by which holders of Class A common stock of the Company who may be limited in the amount of voting common stock of the Company they can hold pursuant to federal, state or foreign bank laws, to convert their shares into non-voting Class B common stock to prevent being in violation of such laws. Each holder of Class A common stock is entitled to one vote per share in connection with the election of directors and on all other matters submitted to a stockholder vote, provided, however, that, except as otherwise required by law, holders of Class A common stock are not entitled to vote on any amendment to the Company's amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of the Company's preferred stock, if holders of the preferred stock series are entitled to vote on the amendment under the Company's certificate of incorporation or Delaware law. No holder of Class A common stock may accumulate votes in voting for directors of the Company.

No holder of Class B common stock is entitled to vote except as otherwise provided by law, provided however that the Company must obtain the consent of a majority of the holders of Class B common stock to effect any amendment, alteration or repeal of any provision of the Company's amended and restated certificate of incorporation or amended and restated by-laws that would adversely affect the voting powers, preferences or rights of holders of Class B common stock. Except as otherwise provided by law, Class B common stock shares will not be counted as shares held by stockholders for purposes of determining whether a vote or consent has been approved or given by the requisite percentage of shares.

Each share of Class A common stock is convertible at the option of the holder and at no cost into one share of Class B common stock, and each share of Class B common stock is convertible at the option of the holder and at no cost into one share of Class A common stock. The conversion ratios will be adjusted proportionally to reflect any stock split, stock dividend, merger,

reorganization, recapitalization or other change in the Class A common stock and Class B common stock. Upon conversion, converted shares resume the status of authorized and unissued shares.

Subject to the preferences of the holders of any of the Company's preferred stock that may be outstanding from time to time, each share of Class A common stock and Class B common stock will have an equal and ratable right to receive dividends and other distributions in cash, property or shares of stock as may be declared by the Company's board of directors out of assets or funds legally available for the payment of dividends and other distributions.

In the event of the liquidation, dissolution or winding up of the Company, subject to the preferences of the holders of any preferred stock of the Company that may be outstanding from time to time, holders of Class A common stock and Class B common stock will be entitled to share equally and ratably in the assets available for distribution to the Company's stockholders. There are no redemption or sinking fund provisions applicable to the Class A or the Class B common stock.

Embedded Cash Conversion Option on the December 2022 Convertible Notes

Upon issuance of the December 2022 Convertible Notes (see Note 12), the Company recognized the embedded cash conversion option at fair value of $23.4 million which was valued as of June 26, 2018 at $29.0 million. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity. The Company allocated $29.6 million of the cash consideration paid on the December 2020 partial extinguishment of the Convertible Notes (see Note 12) to this equity component. The Company redeemed all of the remaining December 2022 Convertible Notes on June 24, 2021.

Cash Dividends to Common Stockholders

During the first quarter of 2020, the Company began the declaration of a quarterly cash dividend payable on its common stock. During March 2021, the Company's Board of Directors declared a cash dividend of $0.08 per share of Class A common stock. During June 2021, September 2021 and December 2021, the Company's Board of Directors declared a cash dividend of $0.10 per share of Class A common stock. During March 2022, the Company's Board of Directors declared a cash dividend of $0.12 per share of Class A common stock. Dividends are payable on all outstanding shares of Class A common stock and on granted but unvested shares of Class A common stock under the Equity Plans on the date of record (See Note 19). During the three months ended March 31, 2022, the Company paid $3.9 million of cash dividends to its holders of Class A common stock.

Treasury Stock

Treasury stock of $583.5 million as of March 31, 2022, compared to $547.1 million as of December 31, 2021, resulted from $12.3 million acquired through repurchases of shares to cover employee minimum tax withholding obligations related to stock compensation vesting events under the Equity Plans or other similar transactions and $24.1 million purchased in connection with a share repurchase program.

The following represents the activity relating to the treasury stock held by the Company during the three months ended March 31, 2022:

	Treasury Stock Shares	Cost (dollars in thousands)		Average Cost per Share
Balance outstanding at December 31, 2021	28,047,929	$	547,112	$	19.51
Shares purchased for minimum tax withholding under the 2010 and 2020 Equity Plans or other similar transactions	374,149	12,283		32.83
Purchase of treasury stock	798,302	24,140		30.24
Balance outstanding at March 31, 2022	29,220,380	$	583,535	$	19.97

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Non-Controlling Interests in Consolidated Subsidiaries and Funds

3 Months Ended

Mar. 31, 2022

Noncontrolling Interest [Abstract]

Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds

Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds

Redeemable and nonredeemable non-controlling interests in consolidated subsidiaries and investment funds and the related net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds are comprised as follows:

	As of March 31, 2022		As of March 31, 2021
	(dollars in thousands)
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds
Operating companies
Beginning balance	126,105		83,818
Capital contributions	1,610		3,498
Capital distributions	(5,901)		(2,348)
Income (loss) attributable to non-controlling interests	20,858		7,661
Ending balance	142,672		92,629
Consolidated Funds
Beginning balance	33,630		115,806
Capital contributions	—		19,017
Capital distributions	—		(16,425)
Deconsolidation of entity	—		(74,813)
Income (loss) attributable to non-controlling interests	(727)		(3,099)
Ending balance	32,903		40,486
Total Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds	$	175,575	$	133,115

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income / (Loss) [Abstract]

Accumulated other comprehensive income (loss)

Accumulated Other Comprehensive Income (Loss)Accumulated other comprehensive income includes the after tax change in Other revenues in the accompanying condensed consolidated statement of operations. During the periods presented, the Company did not have material reclassifications out of other comprehensive income.

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Beginning balance	$	(2)	$	(7)
Foreign currency translation	2		4
Ending balance	$	—	$	(3)

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Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer

Revenue from Contracts with Customers For the three months ended March 31, 2022 and 2021, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Three Months Ended March 31,
		2022		2021
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	17,583	$	154,304
Strategic/financial advisory fees		58,789		73,555
Placement and sales agent fees		22,584		72,544
Expense reimbursements from clients		2,586		4,431
	Total investment banking revenue	101,542		304,834
Brokerage
Commissions		152,483		159,681
Trade conversion revenue		7,410		6,241
Equity research fees		6,203		4,593
	Total brokerage revenue from customers	166,096		170,515
Management fees		16,555		25,499
Incentive income		633		2,258
Total revenue from contracts with customers - Op Co		$	284,826	$	503,106
		Asset Company
Management fees		214		243
Incentive income		—		—
Total revenue from contracts with customers - Asset Co		214		243
Total revenue from contracts with customers		$	285,040	$	503,349

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Insurance and reinsurance

3 Months Ended

Mar. 31, 2022

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

Reinsurance

Insurance and reinsurance

Cowen Insurance Co is a Malta based insurance company that reinsures a significant proportion of its portfolio (“Outward Reinsurance”). The Company's wholly owned Luxembourg subsidiary, Cowen Reinsurance S.A. (formerly Hollenfels Re S.A.) (“Cowen Re”) provides reinsurance to third party insurance and reinsurance companies (“Inward Reinsurance”). Cowen Insurance Co’s and Cowen Re's share of claims incurred and paid during the periods below, as well as the change in claims outstanding and claims incurred but not reported ("IBNR") during these periods, net of reinsurance, were as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Incurred and paid claims
Insurance (net of Outward Reinsurance)	$	1,067	$	744
Inward Reinsurance	3,011		3,904
Total	$	4,078	$	4,648
Change in claims outstanding and claims IBNR
Insurance (net of Outward Reinsurance)	$	54	$	(136)
Inward Reinsurance	(589)		(559)
Total	$	(535)	$	(695)

Cowen Insurance Co and Cowen Re utilize several methods to determine their claims IBNR. Cowen Insurance Co and Cowen Re generally employ an estimation methodology whereby historical average claims ratios over a period of up to 10 years are utilized, based on availability of data. In cases where current claims development contradicts historical results, Cowen Insurance Co and Cowen Re employ a method to average claims ratios derived through different actuarial calculation methods. If an event occurs that may give rise to significant future claims in excess of the amount calculated using the above-mentioned

methodologies, the impact of such an event is calculated using existing claims data and actuarial estimation methods to adjust Cowen Insurance Co's and Cowen Re's IBNR provision. During the three months ended March 31, 2022, claims liability and claim adjustment expenses were calculated using the above-mentioned methods consistent with prior years.

While Cowen Insurance Co and Cowen Re typically settle their premiums and claim payments on a quarterly basis, the frequency of claims in the underlying policies is impractical for Cowen Insurance Co and Cowen Re to obtain. Cowen Insurance Co and Cowen Re write contracts on both a proportional and non-proportional basis. The contracts contain inspection rights to allow the companies to inspect the policy documents that provide the source for the underlying data provided by the cedant. This negates the need for them to collect and hold the documents themselves which would be impracticable. Cowen Insurance Co and Cowen Re did not discount any of its reserves and did not cede any portion of its exposures during the three months ended March 31, 2022 and 2021.

From time to time, Cowen Insurance Co and Cowen Re may enter into insurance and reinsurance agreements that require it to post collateral of cash or U.S. government bonds to cover certain exposures as defined in the respective insurance and reinsurance agreements. As of March 31, 2022, Cowen Re had pledged $61.4 million of collateral towards such reinsurance obligations, of which $49.4 million was in cash and $12.0 million was in U.S. government bonds. As of March 31, 2021, total collateral pledged was $120.5 million, of which $106.8 million was cash and $13.7 million was U.S. government bonds. The collateral pledged as of March 31, 2022 was $1.4 million higher than the amounts pledged at December 31, 2021. This is due to cash movements required to maintain contracted minimum balances with cedants. Cowen Re expects $40.5 million of the cash collateral pledged to be released on September 30, 2023. The remaining collateral of $20.9 million is expected to be released periodically between March 31, 2022 and March 31, 2024 in accordance with the terms of the underlying insurance and reinsurance agreements. As of December 31, 2021, Cowen Insurance Co had no pledged collateral.

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Share-Based Payments, Deferred Compensation and Employee Ownership Plans

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Payments, Deferred Compensation and Employee Ownership Plans

Share-Based Payments, Deferred Compensation and Employee Ownership Plans

The Company has issued share-based compensation under the 2010 and 2020 Equity Incentive Plan (the "Equity Plans"). The Equity Plans permit the grant of options, restricted shares, restricted stock units, and other equity-based awards to the Company's employees and directors. Stock options granted generally vest over two to five-year periods and expire seven years from the date of grant. Restricted shares and restricted share units issued, both of which are eligible to accrue dividend equivalents, may be immediately vested or may generally vest over a two-to five-year period. Awards are subject to the risk of forfeiture, inclusive of accrued dividend equivalents. As of March 31, 2022, there were 0.6 million shares available for future issuance under only the 2020 Equity Incentive Plan.

Under the Equity Plans, the Company awarded $49.1 million of deferred cash awards to its employees during the three months ended March 31, 2022. These awards vest over a four-year period and accrue interest at 0.70% per year. As of March 31, 2022, the Company had unrecognized compensation expense related to the Equity Plans' deferred cash awards of $89.8 million.

The Company measures compensation cost for equity classified share-based awards on grant date and amortizes the unearned compensation associated with such awards on a straight-line basis over the vesting period of the option or award, net of estimated forfeitures. In relation to awards under the Equity Plan, the Company recognized compensation expense of $21.6 million and $28.2 million for the three months ended March 31, 2022 and 2021, respectively. The income tax effect recognized for the Equity Plans was a benefit of $7.0 million and $10.8 million for the three months ended March 31, 2022 and 2021, respectively.

Restricted Stock Units Granted to Employees

Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units	Weighted-Average Grant Date Fair Value		Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units	Weighted-Average Grant Date Fair Value
Beginning balance outstanding	4,595,342	$	24.33	5,450,191	$	17.56
Granted	1,919,504	31.98		1,593,941	34.85
Vested	(224,073)	19.32		(291,062)	16.11
Canceled	—	—		—	—
Forfeited	(16,526)	20.51		(8,134)	20.22
Ending balance outstanding	6,274,247	$	26.86	6,744,936	$	21.71

Included in the restricted share and restricted stock unit activity are performance-linked restricted stock units of 1,974,217 which were awarded from March 2016 through March 2022. Certain of the awards granted have the ability to be cash settled when the attained award exceeds a certain percentage of granted amount. The cash portion of the award has been bifurcated from the equity component and recorded as a compensation payable in the accompanying condensed consolidated statement of financial condition. Of the awards granted, 712,652 have vested and 320,681 have been canceled, as they did not meet the performance criteria, through March 31, 2022. Included in vested units are 233,333 units that had an attainable share value of 420,000, and were delivered in March 2021. Of this attainable share value 350,000 shares were settled in the issuance of the Company's Class A common stock and were delivered in March 2021 with the remaining 70,000 shares being settled in cash at the volume weighted average price on settlement date. Also included in vested units are 333,333 units that had an attainable share value of 666,666, due to reaching certain performance goals. Of this attainable value 528,800 shares were settled in the Company's Class A common stock and were delivered in March 2022 with the remaining 137,866 shares being settled in cash at the volume weighted average price of the Company's Class A common stock on settlement date. The remaining awards, included in the outstanding balance as of March 31, 2022, vest on December 2022, December 2023 and December 2024 and will be earned only to the extent that the Company attains specified market conditions relating to its volume-weighted average share price and total shareholder return in relation to certain benchmark indices and performance goals relating to aggregate net income and average return on shareholder equity. The actual number of attained shares ultimately earned could vary from zero, if performance goals are not met, to as much as 240% of the targeted award. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. The fair value of restricted stock is determined based on the number of shares granted and the quoted price of the Company's common stock on the date of grant.

As of March 31, 2022, there was $116.0 million of unrecognized compensation expense related to the Company's grant of nonvested restricted shares and restricted stock units to employees. Unrecognized compensation expense related to nonvested restricted shares and restricted stock units granted to employees is expected to be recognized over a weighted-average period of 2.14 years.

Restricted Shares and Restricted Stock Units Granted to Non-Employee Board Members

There were no restricted stock units awarded to non-employee board members during the three months ended March 31, 2022 and 2021. The Company delivered no units to non-employee board members during the three months ended March 31, 2022 and 2021. As of March 31, 2022 and 2021, there were 246,333 and 259,536 restricted stock units outstanding for non-employee board members, respectively.

Other Share Based Payments and Awards

In certain circumstances, the Company grants carried interest in consolidated managing member/general partner subsidiaries to third parties through the grant of equity awards in exchange for professional, advisory and other services. The equity awards are recorded within additional paid in capital in the accompanying condensed consolidated statements of financial condition and professional, advisory and other fees expense in the accompanying condensed consolidated statements of operations based on the fair value of the award granted and expensed over the terms of the award. In addition, the equity awards provide the third parties profit points aligned to the allocated carried interest distributions. Upon vesting of the awards, the third parties' allocation of carried interest is determined by applying an equity ownership model. Accordingly, the Company accrues carried interest allocations based on the fair value of the underlying investments assuming hypothetical liquidation at book value upon vesting as nonredeemable non-controlling interest.

On March 1, 2022, Cowen Digital Holdings LLC (“CDIG”) authorized 2,000,000 Class B Units, of which 1,487,500 Class B Units were issued to an affiliate, for which a subsidiary of the Company is the Managing Member, on behalf of the Company’s employees as incentive awards (the "Digital Awards") under the 2022 Equity Unit Incentive Plan. The Class B Units will, upon vesting, represent a 20% ownership of CDIG, a consolidated subsidiary of the Company upon vesting. Once the vesting conditions of the Digital Awards have been met, such awards will be presented as nonredeemable non-controlling interest in the accompanying condensed consolidated statements of financial condition. Half of the Digital Awards vest over a period of time and are tied to service (time based) and the other half vest when a qualifying event as stipulated in the Digital Award documents occurs (performance based). Once vested, Class B units will not be entitled to distributions unless and until a profit distribution hurdle has been met. The Company recognized compensation expense of $0.3 million related to the time based Digital Awards for the three months ended March 31, 2022. At March 31, 2022, there was $1.3 million of unrecognized compensation expense related to the time based Digital Awards which will be recognized over their five year vesting period. The fair value of time based Digital Awards is determined based on the fair market value of CDIG and its consolidated subsidiaries. The fair market value of CDIG and its consolidated subsidiaries is calculated utilizing recent transactions, discounted cash flows, and market multiples. The Digital Awards are then using a standard Black Scholes options pricing model. The primary input in determining the fair market value as of March 1, 2022 was recent/pending transactions in CDIG’s underlying investments. The expense related

to the performance based component of the Digital Awards will be recognized when the qualifying event is considered to be probable. The income tax effect recognized for the Digital Awards was a benefit of $0.1 million for the three months ended March 31, 2022.

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Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The taxable results of the Company’s U.S. operations are included in the consolidated income tax returns of Cowen, Inc. as well as stand-alone state and local tax returns. The Company has subsidiaries that are resident in foreign countries where tax filings are submitted on a stand-alone basis. These subsidiaries are subject to tax in their respective countries and the Company is responsible for and, thus, reports all taxes incurred by these subsidiaries. The countries where the Company owns subsidiaries that file tax returns are United Kingdom, Luxembourg, Malta, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong.

The Company calculates its U.S. tax provision using the estimated annual effective tax rate methodology. The tax expense or benefit caused by an unusual or infrequent item is recorded in the quarter in which it occurs. To the extent that information is not available for the Company to fully determine the full year estimated impact of an item of income or tax adjustment, the Company calculates the tax impact of such item discretely. Accordingly, the Company uses the discrete methodology to calculate the tax impact of income attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds. Based on these methodologies, the Company’s effective income tax rate was 17.74% and 26.36% for the three months ended March 31, 2022 and 2021, respectively. During the three months ended March 31, 2022, the item whose tax impact was recorded discretely related primarily to stock compensation.

For the three months ended March 31, 2022, the effective tax rate differs from the statutory rate of 21% primarily due to income attributable to non-controlling interests in consolidated subsidiaries and investment funds, global intangible low-taxes income, foreign taxes, as well as other nondeductible expenses. For the three months ended March 31, 2021, the effective tax rate differs from the statutory rate of 21% primarily due to income attributable to noncontrolling interests in consolidated subsidiaries and investment funds, global intangible low-taxes income, stock compensation, as well as other nondeductible expenses.

The Company has no uncertain tax position liability as of March 31, 2022 and December 31, 2021.

The Company records deferred tax assets and liabilities for the future tax benefit or expense that will result from differences between the carrying value of its assets for income tax purposes and for financial reporting purposes, as well as for operating or capital loss and tax credit carryovers. A valuation allowance is recorded to bring the net deferred tax assets to a level that, in management's view, is more likely than not to be realized in the foreseeable future. This level will be estimated based on a number of factors, especially the amount of net deferred tax assets of the Company that are actually expected to be realized, for tax purposes, in the foreseeable future. As of March 31, 2022, the Company recorded a valuation allowance against deferred tax assets related to its foreign tax credits and foreign net operating losses.

The Company is subject to examination by the United States Internal Revenue Service as well as state, local and foreign tax authorities in jurisdictions where the Company has significant business operations, such as New York, United Kingdom, Luxembourg, Malta, and Germany.

The Company continues to permanently reinvest the capital and accumulated earnings of its subsidiaries in the United Kingdom, Malta, Germany, Switzerland, Israel, Canada, and Hong Kong.

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Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company's common stockholders by the weighted average number of shares of Class A common stock outstanding for the period. As of March 31, 2022, there were 27,614,903 shares of Class A common stock outstanding. As of March 31, 2022, the Company has included 246,803 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share. As of December 31, 2021, there were 27,778,964 shares of Class A common stock outstanding. As of December 31, 2021, the Company has included 972,732 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share.

Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares and restricted stock units. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized.

The Company previously concluded that it had the intent and ability to settle the December 2022 Convertible Notes in cash and, as a result, the convertible notes did not have an impact on the Company's diluted earnings per share calculation. On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes (See Note 12). On June 24, 2021, the Company cash settled the December 2022 Convertible Notes up to the principal amount of the December 2022 Convertible Notes and share settled through the delivery of shares of the Company’s Class A common stock for the remainder of the conversion obligation in excess of the principal amount. The shares of the Company’s Class A common stock issued are within basic earnings per share subsequent to June 24, 2021. Prior to that date, the Company has applied the if-converted method to the portion of the December 2022 notes above the principal amount that settled in shares upon a conversion in dilutive earnings per share.

On December 31, 2021, the Company irrevocably elected to cash settle $1,000.00 of its obligation in respect of each conversion of any share of the Series A Convertible Preferred Stock. Prior to this date, the Company could elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. Effective January 1, 2022, Company adopted ASC 470-20, which requires the Company to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. As a result, the Series A Convertible Preferred Stock impacts the Company’s diluted earnings per share calculation for the March 31, 2022 (See Note 2).

The computation of earnings per share is as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars and share data in thousands, except per share data)
Net income (loss)	$	55,147	$	152,066
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131		4,562
Net income (loss) attributable to Cowen Inc.	35,016		147,504
Preferred stock dividends	1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders for basic earnings per share	33,318		145,806
Change in fair value of contingently issuable shares	41		—
Net income (loss) attributable to Cowen Inc. common stockholders for diluted earnings per share	$	33,359	$	145,806
Shares for basic and diluted calculations:
Weighted average shares used in basic computation	28,386		27,359
Performance based restricted stock	374		445
Contingently issuable common stock in connection with acquisitions	82		—
December 2022 Convertible Notes	—		2,659
Series A Convertible Preferred Stock	708		—
Restricted stock	2,222		3,102
Weighted average shares used in diluted computation	31,772		33,565
Earnings (loss) per share:
Basic	$	1.17	$	5.33
Diluted	$	1.05	$	4.34

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Lease Obligations

The Company has entered into leases for real estate and other facilities. These leases contain rent escalation clauses and options to extend the applicable lease term. The Company does not include renewal options in the lease term for calculating the Company's lease liability as the renewal options allow the Company operational flexibility and the Company is not reasonably certain to exercise these renewal options at this time. The Company records the expenses related to occupancy and equipment on

a straight-line basis over the lease term and these expenses are included in occupancy and equipment expense and client services and business development expense in the accompanying condensed consolidated statements of operations.

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's operating lease obligations reflected in the accompanying condensed consolidated statements of operations were as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Lease cost
Operating lease cost	$	6,614	$	5,770
Short-term lease cost	141		33
Variable lease cost	837		906
Sublease income	(155)		(160)
Total lease costs	$	7,437	$	6,549

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,814		$	6,748
Weighted average remaining lease term - operating leases (in years)	5.54			4.56
Weighted average discount rate - operating leases	4.13		%	4.10		%

As of March 31, 2022, maturities of the outstanding operating lease liabilities for the Company were as follows:

	Equipment Leases (operating)		Real Estate and Other Facility Rental (a) (b)
	(dollars in thousands)
2022	$	366	$	16,813
2023	381		25,476
2024	370		22,965
2025	370		12,312
2026	278		8,881
Thereafter	—		24,969
Total operating leases	1,765		111,416
Less discount	105		13,218
Less short-term leases	—		58
Total lease liability	$	1,660	$	98,140

(a)The Company has entered into various agreements to sublease certain of its premises.

(b)During the three months ended March 31, 2022, the Company recognized an increase of $8.3 million of operating right-of-use assets and leases liabilities related to facility leases.

Other Commitments

As of March 31, 2022, future minimum annual service payments for the Company were as follows:

	Service Payments
	(dollars in thousands)
2022	$	22,196
2023	17,544
2024	8,214
2025	3,889
2026	3,253
Thereafter	7,357
Total service payment commitments	$	62,453

Unfunded Commitments

The following table summarizes unfunded commitments as of March 31, 2022:

Entity	Unfunded Commitments		Commitment Term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	6,451	2.8 years
Eclipse Ventures Fund I, L.P.	$	28	2.8 years
Eclipse Fund II, L.P.	$	18	3.8 years
Eclipse Continuity Fund I, L.P.	$	16	4.8 years
Cowen Healthcare Investments III LP	$	2,165	4.8 years
Cowen Healthcare Investments IV LP	$	5,784	5.8 years
Cowen Sustainable Investments I LP	$	14,643	7.8 years

(a) The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners.

Litigation

In the ordinary course of business, the Company and its affiliates, subsidiaries and current and former officers, directors and employees (the "Company and Related Parties") are named as defendants in, or as parties to, various legal actions and proceedings. Certain of these actions and proceedings assert claims or seek relief in connection with alleged violations of securities, banking, anti-fraud, anti-money laundering, employment and other statutory and common laws. Certain of these actual or threatened legal actions and proceedings include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief.

In the ordinary course of business, the Company and Related Parties are also subject to governmental and regulatory examinations, information gathering requests (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Certain of the Company's affiliates and subsidiaries are registered broker-dealers, futures commission merchants, investment advisers or other regulated entities and, in those capacities, are subject to regulation by various U.S., state and foreign securities, commodity futures and other regulators. In connection with formal and informal inquiries by these regulators, the Company receives requests and orders seeking documents and other information in connection with various aspects of the Company's regulated activities.

Due to the global scope of the Company's operations, and its presence in countries around the world, the Company and Related Parties may be subject to litigation, governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), in multiple jurisdictions with legal and regulatory regimes that may differ substantially, and present substantially different risks, from those to which the Company and Related Parties are subject in the United States.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter.

In accordance with US GAAP, the Company establishes reserves for contingencies when the Company believes that it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. The Company discloses a contingency if there is at least a reasonable possibility that a loss may have been incurred and there is no reserve for the loss because the

conditions above are not met. The Company's disclosure includes an estimate of the reasonably possible loss or range of loss for those matters, for which an estimate can be made. Neither a reserve nor disclosure is required for losses that are deemed remote.The Company appropriately reserves for certain matters where, in the opinion of management, the likelihood of liability is probable and the extent of such liability is reasonably estimable. Such amounts are included within accounts payable, accrued expenses and other liabilities in the accompanying condensed consolidated statements of financial condition. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Company's defenses and its experience in similar cases or proceedings as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. The Company may increase or decrease its legal reserves in the future, on a matter-by-matter basis, to account for developments in such matters. The Company accrues legal fees as incurred.

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Segment Reporting

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two reportable business segments: Op Co and Asset Co. The Op Co segment consists of Cowen Investment Management ("CIM"), Investment Banking, Markets and Research. The Asset Co segment consists of the Company's private investments, private real estate investments and other legacy investment strategies.

Segment Measures

The measure of profit or loss for these segments is Economic Income (Loss), which management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors.

In general, Economic Income (Loss) is an after tax measure (which represents the Company’s income tax expense or benefit calculated on Pre-tax Economic Income (Loss) once all currently available net operating losses have been utilized and is presented after preferred stock dividends. Economic Income (Loss) (i) includes management reclassifications which the Company believes provides additional insight into the performance of the Company’s core businesses and divisions (ii) eliminates the impact of consolidation for Consolidated Funds and (iii) excludes goodwill and certain other impairments, certain other transaction-related adjustments and/or reorganization expenses and certain costs associated with debt.

The Company does not disclose total asset information for its business segments as the information is not reviewed by the Chief Operating Decision Maker ("CODM"). The Op Co and Asset Co segments do not conduct inter-segment transactions.

The following table sets forth operating results for the Company's consolidated US GAAP net income (loss) and related reclassifications and adjustments necessary to reconcile to the Company's Economic Income (Loss) measure which represents the Company's Op Co and Asset Co segments' results:

		Three Months Ended March 31,
		2022		2021
	(dollars in thousands)
Economic Income
Op Co		$	36,297	$	143,858
Asset Co		1,150		(1,476)
Adjustments applied to arrive at Net Income (loss)
Income attributable to non-controlling interest		20,131		4,562
Preferred stock dividends		1,698		1,698
Amortization of (discount)/premium on convertible debt		(75)		(776)
Acquisition related amounts		(80)		(238)
Contingent liability adjustments		(5,133)		6,798
Debt extinguishment gain (loss) and accelerated debt costs		—		(4,538)
Bargain purchase gain		—		3,855
US GAAP Income tax expense		(11,889)		(54,428)
Economic income tax expense		13,048		52,751
Net income (loss)		$	55,147	$	152,066

Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense, (iv) depreciation and amortization expense and (v) income taxes presented on an Economic Income (Loss) basis by Segment. The following table sets forth the included segment information on a US GAAP basis with reconciliations to consolidated amounts.

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Op Co
Non-Interest Revenue	$	367,652	$	697,885
Interest Revenue	40,331		51,104
Total Revenues	407,983		748,989
Interest Expense	43,300		53,803
Depreciation and Amortization	7,179		4,349
Income Taxes	11,832		55,085
Asset Co
Non-Interest Revenue	2,599		(1,668)
Interest Revenue	8		203
Interest Revenue, Consolidated funds	2		2
Total Revenues	2,609		(1,463)
Interest Expense	1,236		1,275
Depreciation and Amortization	6		5
Income Taxes	57		(657)
Total Segment
Non-Interest Revenue *	370,251		696,217
Interest Revenue	40,339		51,307
Interest Revenue, Consolidated funds	2		2
Total Revenues	$	410,592	$	747,526
Interest and Dividend Expense (includes dividend expense of $2.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively)	46,524		57,641
Depreciation and Amortization	7,185		4,354
Income Taxes	11,889		54,428

* Includes dividend revenue of $6.0 million and $8.1 million for the three months ended March 31, 2022 and 2021, respectively. In addition, includes dividend revenue, consolidated funds, of $0.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively.

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Regulatory Requirements

3 Months Ended

Mar. 31, 2022

Brokers and Dealers [Abstract]

Regulatory Requirements

Regulatory Requirements

Regulatory Capital

As registered broker-dealers with the United States Securities and Exchange Commission ("SEC"), Cowen and Company, ATM Execution and Westminster are subject to the Uniform Net Capital Rule 15c3-1, "SEA Rule 15c3-1," under the Securities Exchange Act ("SEA") of 1934, which requires the maintenance of minimum net capital. Each registered broker-dealer has elected to compute net capital under the alternative method permitted by that rule.

The Company acquired Portico, a registered broker-dealer on December 16, 2021. As a result of the acquisition, Portico's net assets were transferred into Cowen and Company. The Company applied to withdraw Portico's status as a FINRA registered broker-dealer on December 20, 2021 which was approved by the SEC on February 18, 2022.

Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEA Rule 15c3-1, is equal to the greater of $1.5 million or 2% of aggregate debits arising from customer transactions. ATM Execution, and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEA Rule 15c3-1, equal to the greater of $250,000 or 2% of aggregate debits arising from customer transactions. Advances to affiliates, repayment of borrowings, distributions, dividend payments, and other equity withdrawals are subject to certain notification and other provisions of SEA Rule 15c3-1 and other regulatory bodies.

Cowen and Company is also subject to certain net capital rule requirements under the Regulation 1.17 of the Commodity Futures Trading Commission ("CFTC") under Commodities Exchange Act (“CEA”) as an introducing broker. Under Regulation 1.17, Cowen and Company is required to maintain net capital equal to or in excess of $45,000 or the amount of net capital required by SEA Rule 15c3-1, whichever is greater. Additionally, as an options clearing member of the Options Clearing Corporation ("OCC") under OCC Rule 302, Cowen and Company is required to maintain net capital equal to the greater of $2.0

million or 2% of aggregate debit items. At March 31, 2022, Cowen and Company had $397.2 million of net capital in excess of its minimum requirements under SEA Rule 15c3-1.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010. The Dodd-Frank Act contains provisions that require the registration of all swap dealers, major swap participants, security-based swap dealers, and/or major security-based swap participants. Cowen Financial Products, Ltd ("Cowen Financial Products") registered only with the SEC with an effective date of November 1, 2021 as a securities-based swap dealer and is not using models to compute its net capital. Under the rules there is a minimum net capital requirement for, among others, an entity that acts as a dealer in security-based swaps, which is the greater of $20 million or 2% of risk margin amount The risk margin amount means the sum of (i) the total initial margin required to be maintained by the SEC securities-based swaps dealer at each clearing agency with respect to securities-based swaps transactions cleared for securities-based swap customers and (ii) the total initial margin amount calculated by the SEC securities-based swaps dealer swaps dealer with respect to non-cleared securities-based swaps under SEC rules. At March 31, 2022, Cowen Financial Products had $16.7 million of net capital in excess of its minimum requirements under SEA Rule 18a-1.

Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the U.K. Financial Conduct Authority ("FCA"), as defined, and must exceed the minimum capital requirement set forth by the FCA. On 1 January 2022, the FCA adopted the Investment Firms Prudential Regime ("IFPR"). This is a new prudential regime which applies to MiFID investment firms authorized and regulated by the FCA in the UK. The IFPR refocuses prudential requirements and expectations away from the risks firms face, to also consider and look to manage the potential harm firms can pose to consumers and markets. Cowen International Ltd and Cowen Execution Ltd will both be designated as Class 2 firms under the new regime and will have a minimum capital requirement equal to the higher of; the Permanent minimum capital requirement, their respective Fixed Overhead requirement, and their Risk Responsive Computation ("K-factors").

Cowen Asia, a previously established entity, was re-registered with regulatory approval on May 17, 2019. Cowen Asia is subject to the financial resources requirements of the Securities and Futures Commission ("SFC") of Hong Kong. Financial Resources must exceed the Total Financial Resources requirement of the SFC.

As of March 31, 2022, the regulatory net capital, minimum net capital requirement and excess net capital of U.S. regulated broker dealers and swap dealer together with the equivalent of capital requirements and compliance information for foreign broker dealers registered with the FCA and the SFC are presented as follows:

Subsidiary	Net Capital		Minimum Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	406,557	$	9,343	$	397,214
ATM Execution	$	7,880	$	250	$	7,630
Westminster	$	19,521	$	250	$	19,271
Cowen Financial Products	$	36,658	$	20,000	$	16,658
Cowen International Ltd (a)	$	51,109	$	25,735	$	25,374
Cowen Execution Ltd (a)	$	17,900	$	5,075	$	12,825
Cowen Asia (a)	$	2,045	$	383	$	1,662

(a)The equivalent of Net Capital under FCA rules is referred as “capital resources” and under SFC rules is referred as “net liquid capital.” The equivalent of Minimum Net Capital Requirement under FCA rules is referred as “minimum capital resources requirement and under SFC rules is referred as “net liquid capital requirement."

Customer Protection

The Company's U.S. broker-dealers must also comply with the customer protection provisions under SEA Rule 15c3-3 which requires a computation of a reserve requirement for customer and maintenance of a deposit of cash or securities into a special reserve bank account for the exclusive benefit of customers; or claim an exemption pursuant to subparagraphs (k)(2)(i) or (k)(2)(ii) of that rule. Firms can rely on more than one exemption.

ATM Execution claims the (k)(2)(ii) exemption with regard to all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Westminster claims the (k)(2)(i) exemption with regard to customer transactions and balances that are cleared, settled and custodied in bank accounts designated as Special Accounts for the Exclusive Benefit of Customers ("Special Bank Accounts"). Westminster also claims exemption for other business activities that are not covered under (k)(2)(i) contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 for receiving transaction-based compensation in return for providing commission management services.

In accordance with the requirements of SEA Rule 15c3-3, Cowen and Company may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of March 31, 2022, Cowen and Company had segregated approximately $51.8 million of cash to satisfy the customer reserve provision of SEA Rule 15c3-3.

As a clearing and carrying broker-dealer, Cowen and Company is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEA Rule 15c3-3. Cowen and Company conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEA Rule 15c3-3. This allows each correspondent firm that uses Cowen and Company as its clearing broker-dealer to classify its PAB account assets held at Cowen and Company as allowable assets in the correspondent's net capital calculation. At March 31, 2022, Cowen and Company had $71.7 million of cash on deposit in PAB Reserve Bank Accounts. Cowen and Company and ATM Execution also maintain certain assets in PAB accounts held at their respective clearing brokers. Each treats its assets held in those PAB accounts at the respective clearing brokers as allowable assets for net capital purposes.

Cowen Financial Products, as a registered securities based swap dealer, claims Rule 18a-4(f) exemption under the Securities Exchange Act of 1934 (the “Act”) with regard to its swap counterparties on the basis that it has provided sufficient notice to its swap counterparties of their respective rights to require segregation of funds or other property used to secure uncleared security based swaps pursuant to section 3E(f)(1)(A)-(B) of the Act (15 U.S.C. 78c-5(f)(1)(A)). Any margin collateral received and held by the security based swap dealer with respect to uncleared security based swaps will not be subject to a segregation requirement. The notice outlines how a claim of those swap counterparties for the collateral would be treated in a bankruptcy or other formal liquidation proceeding of the security-based swap dealer.

Other Regulatory Requirements

Cowen Insurance Co and Cowen Re are individually required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Malta and Luxembourg, respectively. Each company's individual solvency capital ratio calculated at the end of each quarter must exceed a minimum requirement. As of December 31, 2021, the last testing date for Cowen Re and Cowen Insurance Co, the solvency capital ratios of both Cowen Insurance Co and Cowen Re were in excess of the minimum requirements.

Based on minimum capital and surplus requirements pursuant to the laws of the state of New York that apply to captive insurance companies, RCG Insurance Company, Cowen's captive insurance company incorporated and licensed in the state of New York, was required to maintain capital and surplus of approximately $0.3 million as of March 31, 2022. RCG Insurance Company’s capital and surplus as of March 31, 2022 totaled $6.0 million.

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Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company and its affiliated entities are the managing member, general partner and/or investment manager to the Company's investment funds and certain managed accounts. Management fees and incentive income are primarily earned from affiliated entities. As of March 31, 2022 and December 31, 2021, $21.9 million and $16.6 million, respectively, included in fees receivable, are earned from related parties. The Company may, at its discretion, reimburse certain fees charged to the investment funds that it manages to avoid duplication of fees when such funds have an underlying investment in another affiliated investment fund. For the three months ended March 31, 2022 and 2021, the amounts which the Company reimbursed the investment funds it manages were immaterial. Fees receivable and fees payable are recorded at carrying value, which approximates fair value.

The Company may also make loans to employees or other affiliates, excluding executive officers of the Company. These loans are interest bearing and settle pursuant to the agreed-upon terms with such employees or affiliates, and are included in due from related parties in the accompanying condensed consolidated statements of financial condition. As of March 31, 2022 and December 31, 2021, loans to employees of $9.2 million and $8.8 million, respectively, were included in due from related parties on the accompanying condensed consolidated statements of financial condition. Of these amounts $3.8 million and $3.8 million, respectively, are related to forgivable loans. These forgivable loans provide for a cash payment up-front to employees, with the amount due back to the Company forgiven over a vesting period.  An employee that voluntarily ceases employment, or is terminated with cause, is generally required to pay back to the Company any unvested forgivable loans granted to them.  The forgivable loans are recorded as an asset to the Company on the date of grant and payment, and then amortized to compensation expense on a straight-line basis over the vesting period.  The vesting period on forgivable loans is generally one to three years. The Company recorded compensation expense of $0.8 million and $1.2 million for the three months ended March 31, 2022 and 2021, respectively. This expense is included in employee compensation and benefits in the accompanying condensed consolidated statements of operations. For the three months ended March 31, 2022 and 2021, the interest income was $0.1 million, for these related party loans and advances, and are included in interest and dividends in the accompanying condensed consolidated statements of operations.

The remaining balance included in due from related parties of $12.4 million and $22.6 million as of March 31, 2022 and December 31, 2021, respectively, relates to amounts due to the Company from affiliated investment funds and real estate entities due to expenses paid on their behalf.

Employees and certain other related parties invest on a discretionary basis within consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of March 31, 2022 and December 31, 2021, such investments aggregated $58.3 million and $53.9 million, respectively, were included in non-controlling interests on the accompanying condensed consolidated statements of financial condition. Their share of the net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds aggregated $10.3 million and $10.1 million for the three months ended March 31, 2022 and 2021, respectively.

The Company may, at times, have unfunded commitment amounts pertaining to related parties. See Note 22 for amounts committed as of March 31, 2022.

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Guarantees and Off-Balance Sheet Arrangements

3 Months Ended

Mar. 31, 2022

Guarantees and Off Balance Sheet Arrangements [Abstract]

Guarantees and Off-Balance Sheet Arrangements

Guarantees and Off-Balance Sheet Arrangements

Guarantees

US GAAP requires the Company to disclose information about its obligations under certain guarantee arrangements. Those standards define guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying security (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Those standards also define guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others.

In the normal course of its operations, the Company enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Company's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote.

The Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including sub-custodians and third-party brokers, improperly execute transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make significant payments under these arrangements and has not recorded any contingent liability in the condensed consolidated financial statements for these indemnifications.

The Company also provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the accompanying condensed consolidated financial statements for these indemnifications.

The Company may maintain cash and cash equivalents at financial institutions in excess of federally insured limits. The Company has not experienced any material losses in such accounts and does not believe it is exposed to significant credit risks in relation to such accounts.

Off-Balance Sheet Arrangements

The Company has no material off-balance sheet arrangements, which have not been disclosed, as of March 31, 2022 and December 31, 2021. Through indemnification provisions in clearing agreements with clients, customer activities may expose the Company to off-balance-sheet credit risk. Pursuant to the clearing agreement, the Company is required to reimburse the Company's clearing broker, without limit, for any losses incurred due to a counterparty's failure to satisfy its contractual obligations. However, these transactions are collateralized by the underlying security, thereby reducing the associated risk to changes in the market value of the security through the settlement date.

The Company's customer securities activities are transacted on a delivery versus payment, cash or margin basis. In delivery versus payment transactions, the Company is exposed to risk of loss in the event of the customers' or brokers' inability to meet the terms of their contracts.

In margin transactions, the Company extends credit to clients collateralized by cash and securities in their account. In the event the customers or brokers fail to satisfy their obligations, the Company may be required to purchase or sell securities at prevailing market prices in order to fulfill the obligations.

The Company's exposure to credit risk can be directly impacted by volatile securities markets, which may impair the ability of counterparties to satisfy their contractual obligations. The Company seeks to control its credit risk through a variety of reporting and control procedures, including establishing credit limits based upon a review of the customers' financial condition and credit ratings. The Company seeks to control the risk associated with its customer margin transactions by requiring customers to maintain margin collateral in compliance with various regulatory and internal guidelines. The Company also monitors required margin levels daily and, pursuant to its guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary.

In addition, during the normal course of business, the Company has exposure to a number of risks including market risk, currency risk, credit risk, operational risk, liquidity risk and legal risk. As part of the Company's risk management process, these risks are monitored on a regular basis throughout the course of the year.

The Company enters into secured and unsecured borrowing agreements to obtain funding necessary to cover daily securities settlements with clearing corporations. At times, funding is required for unsettled customer delivery versus payment and riskless principal transactions, as well as to meet deposit requirements with clearing organizations. Secured arrangements are collateralized by the securities. The Company maintains uncommitted financing arrangements with large financial institutions, the details of which are summarized below as of March 31, 2022.

Lender	Contractual Amount		Available Amount		Maturity Date	Description
Pledge Lines	(dollars in thousands)
BMO Harris Bank	$	75,000	$	75,000	None	Secured Tri-Party Pledge Facility
BMO Harris Bank	150,000		150,000		None	Secured Depository Trust Company Pledge Line
Total	225,000		225,000
Spike Line
BMO Harris Bank      Canadian Imperial Bank      of Commerce, in syndication	70,000		70,000		August 19, 2022	Unsecured committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements
Revolving Credit Facility
Morgan Stanley	25,000		25,000		March 24, 2026	Unsecured Corporate Revolver
Total Credit Lines	$	320,000	$	320,000

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 21, 2022 the Board of Directors declared a quarterly cash dividend payable on its common stock of $0.12 per common share, payable on June 15, 2022, to stockholders of record on June 1, 2022.

The Company has evaluated events that have occurred after the balance sheet date but before the financial statements are issued and has determined that there were no other subsequent events requiring adjustment or disclosure in the condensed consolidated financial statements.

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Significant Accounting Policies - Quarterly (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") as promulgated by the Financial Accounting Standards Board ("FASB") through the Accounting Standards Codification (the "Accounting Standards" or "ASC") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying condensed consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to specialized industry accounting.

The accompanying condensed financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Certain footnote disclosures included in the 2021 Form 10-K have been condensed or omitted from the accompanying condensed financial statements as they are not required for interim reporting under US GAAP or are insignificant to the interim reporting period.

Principles of consolidation

b.    Principles of consolidation

The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary.

The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a Voting Operating Entity ("VOE") or a Variable Interest Entity ("VIE") under US GAAP.

Voting Operating Entities—VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns.

Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units.

Variable Interest Entities—VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it.

The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE.

The VIEs the Company has invested in act as investment managers and/or investment companies that may be managed by the Company. The VIEs are financed through their operations and/or loan agreements with the Company.

In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company consolidates these investment funds when its variable interest is potentially significant to the entity. (see Note 6 for additional disclosures on VIEs).

Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. As of March 31, 2022 and December 31, 2021, the total assets of the consolidated VIEs were $332.4 million and $304.1 million, respectively, and total liabilities of the consolidated VIEs were $6.6 million and $9.8 million, respectively.

The Company consolidates investment funds for which it acts as the managing member/general partner and investment manager. At March 31, 2022, the Company consolidated Ramius Enterprise LP (“Enterprise LP”), an investment fund. At December 31, 2021, the Company consolidated the following investment funds: Enterprise LP and Cowen Private Investments LP ("Cowen Private").

During the first quarter of 2022, the Company deconsolidated Cowen Private as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP ("CSI I LP") due to the Company's ownership being diluted through a capital equalization event.

Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary.

Other—If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for its investment in such entity (primarily consisting of securities of such entity which are purchased and held principally for the purpose of selling them in the near term and classified as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within Investment income (loss) - Securities principal transactions, net or Investment income (loss) - portfolio fund investment income (loss) in the accompanying condensed consolidated statements of operations.

Retention of Specialized Accounting— The Consolidated Funds and certain other consolidated companies are investment companies and apply specialized industry accounting. The Company reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations. Accordingly, the accompanying condensed consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

Certain portfolio fund investments qualify as equity method investments and are investment companies that apply specialized industry accounting. In applying equity method accounting guidance, the Company retains the specialized accounting of the investees and reports its investments on the condensed consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Investment Income - portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

In addition, the Company's broker-dealer subsidiaries, Cowen and Company, LLC ("Cowen and Company"), Westminster Research Associates LLC ("Westminster"), Cowen Execution Services Limited ("Cowen Execution Ltd"), ATM Execution LLC ("ATM Execution"), Cowen and Company (Asia) Limited ("Cowen Asia"), and Cowen International Limited ("Cowen International Ltd"), apply the specialized industry accounting for brokers and dealers in securities, which the Company retains upon consolidation.

Use of estimates

Use of estimatesThe preparation of the accompanying condensed consolidated financial statements in conformity with US GAAP requires the management of the Company to make estimates and assumptions that affect the fair value of securities and other investments, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the accompanying condensed consolidated financial statements, as well as the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Allowance for credit losses

Allowance for credit losses

ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”) prescribed the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update guidance, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer).

The Company applies the guidance in ASC 326 to securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, underwriting fees, strategic/financial advisory fees and placement and sales agent fees, management fees and incentive fees receivable).

The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company’s expectation of the collectability in determining the allowance for credit losses. The Company’s expectation is that the credit risk associated with fees and other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards.

For securities borrowed, the Company applies a practical expedient to measure the allowance for credit losses based on the fair value of the collateral. If the fair value of the collateral held exceeds the amortized cost of the borrowing and the borrower is expected to continue to replenish the collateral as needed, the Company will not recognize an allowance. If the fair value of collateral is less than amortized cost and the borrower is expected to continue to replenish the collateral as needed, the Company applies the CECL model, utilizing a probability and loss given default methodology, only to the extent of the shortfall between the fair value of the collateral and amortized cost.

The credit loss expense related to the allowance for credit losses as well as any recoveries of amounts previously charged is reflected in other expenses in the accompanying condensed consolidated statements of operations.

Valuation of investments and derivative contracts

Valuation of investments and derivative contracts and other investments

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics,

specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is based on their proportional rights of the underlying portfolio company, and is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation impact the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the condensed consolidated financial statements. Certain of the Company's investments are relatively illiquid or thinly traded and may not be immediately liquidated on demand if needed. Fair values assigned to these investments may differ significantly from the fair values that would have been used had a ready market for the investments existed and such differences could be material.

The Company primarily uses the market approach to value its financial instruments measured at fair value. In determining an instrument's level within the hierarchy, the Company categorizes the Company's financial instruments into three categories: securities, derivative contracts and other investments. To the extent applicable, each of these categories can further be divided between those held long or sold short.

The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The election is made on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument.  The Company has elected the fair value option for certain of its investments held by its operating companies.  This option has been elected because the Company believes that it is consistent with the manner in which the business is managed, as well as the way that financial instruments in other parts of the business are recorded. 

Securities—Securities with values based on quoted market prices in active markets for identical assets are classified within level 1 of the fair value hierarchy. These securities primarily include active listed equities, certain U.S. government and sovereign obligations, Exchange Traded Funds ("ETFs"), mutual funds and certain money market securities.

Certain positions for which trading activity may not be readily visible, consisting primarily of convertible debt, corporate debt and loans and restricted equities, are stated at fair value and classified within level 2 of the fair value hierarchy. The estimated fair values assigned by management are determined in good faith and are based on available information considering trading activity, broker quotes, quotations provided by published pricing services, counterparties and other market participants, and pricing models using quoted inputs, and do not necessarily represent the amounts which might ultimately be realized. As level 2 investments include positions that are not always traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability.

Derivative Contracts—Derivative contracts can be exchange-traded or privately negotiated over-the-counter (“OTC”). Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within level 1 or level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. OTC derivatives, such as generic forwards, swaps and options, are classified as level 2 when their inputs can be corroborated by market data. OTC derivatives, such as swaps and options, with significant inputs that cannot be corroborated by readily available or observable market data are classified as level 3.

Other Investments—Other investments consist primarily of portfolio funds, carried interest and equity method investments, which are valued as follows:

i.    Portfolio Funds—Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments

in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy.

ii. Carried Interest—For the private equity and debt fund products the Company offers, the Company is allocated incentive income by the investment funds based on the extent by which the investment funds performance exceeds predetermined thresholds. Carried interest allocations are generally structured from a legal standpoint as an allocation of capital in the Company’s capital account. The Company accounts for carried interest allocations by applying an equity ownership model. Accordingly, the Company accrues performance allocations quarterly based on the fair value of the underlying investments assuming hypothetical liquidation at book value.

iii. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company applies the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying condensed consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying condensed consolidated statements of operations.

See Notes 6 and 7 for further information regarding the Company's investments, including equity method investments and fair value measurements.

Offsetting of derivative contracts

Offsetting of derivative contracts To reduce credit exposures on derivatives, the Company may enter into master netting agreements with counterparties that permit the Company the right, in the event of a default by a counterparty, to offset the counterparty’s rights and obligations under the agreement and to liquidate and offset any collateral against any net amount owed by the counterparty. Derivatives are reported on a net-by-counterparty basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) in the condensed consolidated statements of financial condition when a legal right of offset exists under an enforceable netting agreement. Additionally, derivatives are reported net of cash collateral received and posted under enforceable credit support agreements in the condensed consolidated statements of financial position, provided a legal right of offset exists. See Note 6 for further information about offsetting of derivative financial instruments.

Receivable from and payable to brokers

Receivable from and payable to brokers

Receivable from brokers, dealers, and clearing organizations includes amounts receivable for securities failed to deliver by the Company to a purchaser by the settlement date, amounts receivable from broker-dealers and clearing organizations, commissions receivable from broker-dealers, and interest receivable from securities financing arrangements and are reported net of an allowance for credit losses.

Payable to brokers, dealers and clearing organizations includes amounts payable for securities failed to receive by the Company from a seller by the settlement date, amounts payable to broker-dealers and clearing organizations for unsettled trades, interest payable for securities financing arrangements, and payables of deposits held in proprietary accounts of brokers and dealers.

Receivables and payables with brokers, dealers and clearing organizations arising from unsettled regular-way transactions are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held with multiple financial institutions.

Receivable from and payable to customers

Receivable from and payable to customers

Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settlement-date basis and prepaid research, net of allowance for credit losses. For prepaid research, a prepaid research asset is established for research and related services disbursed in advance of anticipated client commission volumes.

Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settlement-date basis on the statement of financial condition, and other miscellaneous customer payables.

Securities owned by customers, including those that collateralize margin, are not reflected as assets of the Company on the statement of financial condition. The Company holds these securities with the intention of settlement against customer orders and are held as collateral for customer receivables.

Fees receivable

Fees receivableFees receivable primarily relate to securities transactions and are reported net of an allowance for credit losses.  Fees receivable also include amounts due to the Company for underwriting fees, strategic/financial advisory fees and placement and sales agent fees. Additionally, management and incentive fees due to the Company are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 2o for further reference).

Securities financing arrangements

Securities financing arrangementsSecurities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received on a gross basis. The related rebates are recorded in the accompanying condensed consolidated statements of operations as interest and dividends income and interest and dividends expense. Securities borrowed transactions require the Company to deposit cash collateral with the lender. With respect to securities loaned, the Company receives cash or securities as collateral from the borrower. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced or received approximates or is greater than the market value of securities borrowed or loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or returned, as necessary. Securities borrowed and loaned may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. See Note 2d for further information.Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying condensed consolidated statements of operations. Accrued interest income and expense are recorded in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations, respectively, on an accrual basis in the accompanying condensed consolidated statements of financial condition.

Securities sold under agreements to repurchase

Securities sold under agreements to repurchase

Securities purchased under agreement to resell and securities sold under agreements to repurchase ("repurchase agreements") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. A repo is a transaction in which a firm buys or sells financial instruments from/to a counterparty, typically in exchange for cash, and simultaneously enters into an agreement to resell or repurchase the same or substantially the same financial instruments to/from such counterparty at a stated price plus accrued interest at a future date. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced approximates or is greater than the market value of securities purchased or sold in the transaction. The Company typically enters into repurchase transactions with counterparties that prefer repurchase transactions to securities borrowed and securities loaned transactions. The Company has executed master repurchase agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repurchase for matched book purposes. The Company monitors the market value of repurchases on a daily basis, with additional collateral obtained or returned, as necessary. Repurchases may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company mitigates its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional collateral or returning excess collateral in accordance with the netting provisions available in the master repurchase contracts in place with the counterparties.

Interest paid is recorded in interest and dividends expense in accordance with US GAAP on repurchase agreement transactions on an accrual basis in the accompanying condensed consolidated statements of operations.

Goodwill and Intangible Assets

Goodwill and intangible assets

Goodwill

Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit.

In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying condensed consolidated statements of operations if the sum of the estimated undiscounted cash flows from the use or disposition of the asset or asset group is less than the corresponding carrying value. The Company continually monitors the estimated average useful lives of existing intangible assets.

Temporary Equity

Temporary EquityTemporary equity consists of Redeemable 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock"). The Company has irrevocably elected to cash settle $1,000.00 of each conversion of any share of the Series A Convertible Preferred Stock. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company has classified the Series A Convertible Preferred Stock preferred stock in temporary equity.

Non-controlling interests in consolidated subsidiaries

Non-controlling interests in consolidated subsidiariesNon-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities. When non-controlling interest holders do not have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as a component of permanent equity. Ownership which has been classified in permanent equity are non-controlling interests for which the holder does not have the unilateral right to redeem its ownership interests

Revenue recognition

Revenue recognitionThe Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company follows a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, the Company includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgments are required in the application of the five-step model including: when determining whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations

are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events.

The Company's principal sources of revenue are generated within two segments. The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, investment income (loss) and incentive income. Investment income is excluded from ASC Topic 606. The Asset Co segment generates revenue through investment income (loss), management fees and incentive income. Revenue from contracts with customers includes management fees, incentive income, investment banking revenue and brokerage services revenue excluding principal transactions. ASC Topic 606 does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The following is a description of principal activities, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 23.

Investment banking

The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from public and private small- and mid-capitalization companies within the Company's sectors.     

Investment banking revenue consists of underwriting fees, strategic/financial advisory fees, expenses reimbursed from clients and placement and sales agent fees.    

•Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible securities offerings. Fee revenue relating to underwriting commitments is recorded at the point in time when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; (iii) the Company has been informed of the number of securities that it has been allotted; and (iv) the issuer obtains control and benefits of the offering; which generally occurs on trade date.

Underwriting fees are recognized gross of transaction-related expenses, and such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction.

•Strategic/financial advisory fees. The Company's strategic advisory revenue includes success fees earned in connection with advising companies, principally in mergers, acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. A significant portion of the Company's advisory revenue (i.e., success-related advisory fees) is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is constrained until satisfaction of the performance obligation. The Company records strategic advisory revenues at the point in time, gross of related expenses, when the services for the transactions are completed or the contract is canceled under the terms of each assignment or engagement.

•Placement and sales agent fees. The Company earns placement agency fees and sales agent commissions in non-underwritten transactions, such as private placements of loans and debt and equity securities, including private investment in public equity transactions ("PIPEs"), and as sales agent in at-the-market offerings of equity securities. The Company records placement revenues (which may be in cash and/or securities) at the point in time when the services for the transactions are completed under the terms of each assignment or engagement. The Company records sales agent commissions on a trade-date basis.

•Expense reimbursements from clients.  Investment banking revenue includes expense reimbursements for transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction.  Expense reimbursements associated with investment banking engagements are recognized in revenue at the point in time when the Company is contractually entitled to reimbursement. The related expenses are presented gross within their respective expense category in the accompanying condensed consolidated statements of operations.

Brokerage

Brokerage revenue consists of commissions, principal transactions, equity research fees and trade conversion revenue.

•Commissions. Commission revenue includes fees from executing and clearing client transactions and commission sharing arrangements. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services on a standalone basis, are recognized at a point in time on trade-date. Commission revenues are generally paid on settlement date and the Company records a receivable between trade-date and payment on settlement date. The Company permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as "soft dollar arrangements". The Company also offers institutional clients the ability to allocate a portion of their gross commissions incurred on trades executed with various brokers to pay for research products and other services provided by third parties by entering into commission sharing arrangements. The Company acts as an agent in the soft dollar and commission sharing arrangements as the customer controls the use of the soft dollars and directs payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues and recorded on trade date. Commissions on soft dollar brokerage are recorded net of the related expenditures. The costs of commission sharing arrangements are recorded for each eligible trade and shown net of commission revenue.

•Equity research fees. Equity research fees are paid to the Company for providing access to equity research. In the US, revenue is recognized once an arrangement exists, access to research has been provided and the customer has benefited from the research. As part of MiFID II, the international customers of the Company's broker-dealers have executed equity research contracts with its clients. The contracts either contain a fixed price for providing access to research or a price at the discretion of the customer with a contract minimum. Fixed equity research fees are recognized over the contract period as the customer is benefiting from the research throughout the contract term. When the equity research fees are based on the customer’s discretion with a contract minimum, the Company recognizes the contract minimum over the life of the contract as the customer benefits from the research provided and adjusts the revenue when the Company can estimate the amount of equity research fees over the contract minimum. Additionally, the Company earns variable consideration for attending client conferences and events. Revenue is recognized when the Company attends a client conference or event.

•Trade conversion revenue. Trade conversion revenue includes fees earned from converting foreign securities into an American Depository Receipt ("ADR") and fees earned from converting an ADR into foreign securities on behalf of customers, and margins earned from facilitating customer foreign exchange transactions. Trade conversion revenue is recognized on a trade-date basis.

Investment Income

Investment income (loss) consists of securities principal transactions, net, portfolio fund principal transactions, net and carried interest allocations. Investment income is excluded from ASC Topic 606.

• Securities principal transactions, net. Principal transactions, net includes realized gains and losses from transactions in financial instruments and unrealized gains and losses from ongoing changes in the fair value of the Company’s positions.

Principal transactions, net generated by the Company's broker-dealers include net trading gains and losses from the Company's market-making activities in over-the-counter equity and fixed income securities, trading of convertible securities, and trading gains and losses on inventory and other Company positions, which include securities previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a short duration.

With respects to the Company's proprietary trading strategies, purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Investment income - Securities principal transactions, net, in the accompanying condensed consolidated statements of operations.

•Portfolio Fund principal transactions, net. Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding certain investments that calculates NAV per share or its equivalent for which the fair value is not readily determinable and is considered an investment company under ASC 946 to measure the

fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Investment income – portfolio fund principal transactions, net in the accompanying condensed consolidated statements of operations.

•Carried interest allocations. The Company is allocated carried interest based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's private equity investment funds. For the private equity fund products the Company offers, the carried interest earned is typically up to 30% of the distributions made to investors after return of their contributed capital and generally a preferred return. The Company recognizes carried interest allocated to the Company under an equity ownership model as investment income - carried interest allocations in the accompanying condensed consolidated statements of operations accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures. Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within Investment Income - Carried interest allocations in the accompanying condensed consolidated statements of operations along with the allocations proportionate to the Company's ownership interests in the investment funds. Generally, carried interest is recognized after the investor has received a full return of its invested capital, plus a preferred return. However, for certain private equity structures, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These private equity structures are generally subject to a potential clawback of these incentive fees upon the liquidation of the private equity structure if the investor has not received a full return of its invested capital plus the preferred return thereon.

Management fees

The Company earns management fees from investment funds and certain managed accounts for which it serves as the investment manager; such fees earned are typically based on committed and invested capital. The Company has determined that the primary drivers of management fees are committed and invested capital relating to private equity funds. The management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company.

Management fees are generally paid on a quarterly basis and are prorated for capital inflows (or commitments) and redemptions (or distributions) and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. While some investors may have separately negotiated fees, in general the management fees are as follows:

•Private equity funds. Management fees for the Company's private equity funds are generally charged at an annual rate of 1% to 2% of committed capital during the investment period (as defined in the relevant partnership agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 1% to 2% of the net asset value or the aggregate cost basis of the unrealized investments held by the private equity funds.  For certain other private equity funds (and managed accounts), the management fees range from 0.2% to 1% and there is no adjustment based on the investment period.  Management fees for the Company's private equity funds are generally paid on a quarterly basis.

•Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of net asset value. Management fees are generally calculated monthly at the end of each month.

Incentive income

The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's investment funds and managed accounts.  The incentive income is charged to the investment funds in accordance with their corresponding investment management or partnership agreement. For the hedge funds the Company offers, incentive income earned is typically up to 20% (in certain cases on performance in excess of a benchmark) of the net profits earned for the full year that are attributable to each fee-paying investor. 

The Company recognizes incentive income charged to the Company's hedge funds based on the net profits of the hedge funds. The Company recognizes such incentive income when the fees are no longer subject to reversal or are crystallized. For certain  hedge funds, the incentive fee crystallizes annually when the high-water mark for such hedge funds is reset, which delays recognition of the incentive fee until year end. In periods following a period of a net loss attributable to an investor, the Company generally does not earn incentive income on any future profits attributable to such investor until the accumulated net loss from prior periods is recovered, an arrangement commonly referred to as a "high-water mark." Generally, incentive income is earned after the investor has received a full return of its invested capital, plus a preferred return.

Consolidated Funds – principal transaction, net

Purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Consolidated Funds - Principal transactions, net in the accompanying condensed consolidated statements of operations.

Certain of the Companies Consolidated Funds invest in other investment funds for which the Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Consolidated Funds – Principal transaction, net.

Interest and dividends

Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from securities finance activities and securities held by the Company for purposes of investing capital, investments held by its Consolidated Funds and its brokerage balances. Interest is recognized in accordance with US GAAP and market convention for the imputation of interest of the host financial instrument. Interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date.

Insurance and reinsurance

Premiums for insurance and reinsurance contracts are earned over the coverage period. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly basis. For each of its contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with US GAAP. If the Company determines that a contract does not expose it to a reasonable possibility of a significant loss from insurance risk, the Company records the contract under the deposit method of accounting with any net amount receivable reflected as an asset in other assets, and any net amount payable reflected as a liability within accounts payable, accrued expenses and other liabilities on the condensed consolidated statements of financial condition.

The liabilities for losses and loss adjustment expenses are recorded at the estimated ultimate payment amounts, including reported losses.  Estimated ultimate payment amounts are based upon (1) reports of losses from policyholders, (2) individual case estimates and (3) estimates of incurred but unreported losses.

Provisions for losses and loss adjustment expenses are charged to earnings after deducting amounts recovered and estimates of recoverable amounts and are included in other expenses on the condensed consolidated statements of operations.

Costs of acquiring new policies, which vary with and are directly related to the production of new policies, have been deferred to the extent that such costs are deemed recoverable from future premiums or gross profits. Such costs include commissions and allowances as well as certain costs of policy issuance and underwriting and are included within other assets in the condensed consolidated statements of financial condition.

All of the items above are reported net of any Outward Reinsurance (see Note 18), which is determined as the portion of the Company’s premiums, liabilities for losses and loss adjustment expenses, provisions for losses and loss adjustment expenses, and costs of acquiring new policies that are ceded to providers of such Outward Reinsurance pursuant to their terms and conditions. These ceded amounts are calculated based on the same principles outlined above.

Interest and dividends expense

Interest and dividends expense relates primarily to securities finance activities, trading activity with respect to the Company's investments and interest expense on debt.

Income taxes

Income taxesThe Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely

than not to be realized. The Company evaluates its deferred tax assets for recoverability considering negative and positive evidence, including its historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. The Company records a valuation allowance against its deferred tax assets to bring them to a level that it is more likely than not to be utilized.

US GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements, requiring the Company to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company recognizes accrued interest and penalties related to its uncertain tax positions as a component of income tax expense.

In accordance with federal and state tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand-alone state and local tax returns. The Company also has subsidiaries that are residents in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These subsidiaries are subject to taxes in their respective countries and the Company is responsible for and therefore reports all taxes incurred by these subsidiaries in the condensed consolidated statements of operations. The foreign jurisdictions where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Malta, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong.

Recent pronouncements

Recent pronouncementsIn August 2020, the FASB issued guidance simplifying an issuer’s accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features; separate accounting is still required in certain cases. The guidance also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The guidance requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of a public business entity’s convertible debt at the instrument level. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2021 and interim periods within those fiscal years with early adoption permitted. The Company adopted the guidance as of January 1, 2022 under the modified retrospective method. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. See Note 21 for the calculation of diluted earnings per share. In August 2018, the FASB issued guidance prescribing targeted improvements to financial services – insurance industry accounting guidance for long-duration contracts. The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred acquisition costs for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. For all entities, the guidance is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance.

Earnings Per Share

Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares and restricted stock units. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized.The Company previously concluded that it had the intent and ability to settle the December 2022 Convertible Notes in cash and, as a result, the convertible notes did not have an impact on the Company's diluted earnings per share calculation. On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes (See Note 12). On June 24, 2021, the Company cash settled the December 2022 Convertible Notes up to the principal amount of the December 2022 Convertible Notes and share settled through the delivery of shares of the Company’s Class A common stock for the remainder of the conversion obligation in excess of the principal amount. The shares of the Company’s Class A common stock issued are within basic earnings per share subsequent to June 24, 2021. Prior to that date, the Company has applied the if-converted method to the portion of the December 2022 notes above the principal amount that settled in shares upon a conversion in dilutive earnings per share.

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Acquisition (Tables) - Cowen Insurance

3 Months Ended

Mar. 31, 2022

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of February 26, 2021:

	(dollars in thousands)
Cash	$	14,844
Securities owned, at fair value	1,571
Fixed assets	30
Intangible assets	4,794
Other assets	12,828
Compensation payable	(17)
Other liabilities	(16,099)
Total net identifiable assets acquired and liabilities assumed	17,951
Bargain purchase gain	(5,216)
Total estimated purchase price	$	12,735

Finite-lived Intangible Assets Amortization Expense

As of March 31, 2022, the estimated amortization expense related to these intangible assets in future periods is as follows:

	(dollars in thousands)
2022	343
2023	458
2024	458
2025	458
2026	458
Thereafter	2,124
	$	4,299

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Cash Collateral Pledge (Tables)

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Schedule of Cash Collateral Pledged

As of March 31, 2022, the Company has the following irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit.

Location	Amount		Maturity
	(dollars in thousands)
New York	$	209	April 2023
New York	$	1,325	October 2022
New York	$	1,226	August 2022
Boston	$	188	March 2023
San Francisco	$	454	October 2025
	$	3,402

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Investments of Operating Entities and Consolidated Funds - (Tables)

3 Months Ended

Mar. 31, 2022

Investment Holdings [Line Items]

Marketable Securities

As of March 31, 2022 and December 31, 2021, securities owned, at fair value consisted of the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Common stock	$	2,348,243	$	2,428,820
Preferred stock	190,184		134,930
Warrants and rights	53,082		46,459
Government bonds	11,992		16,002
Corporate bonds	146,998		21,468
Convertible bonds	5,250		5,250
Term loan	2,375		3,907
Trade claims (*)	4,840		3,496
Private investments	550		410
	$	2,763,514	$	2,660,742

(*)The Company has elected the fair value option for securities owned, at fair value with a fair value of $4.8 million and $3.5 million of trade claims respectively, at March 31, 2022 and December 31, 2021.

Schedule of Derivative Instruments

The Company's long and short exposure to derivatives is as follows:

Receivable on derivative contracts	As of March 31, 2022				As of December 31, 2021
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Currency forwards	$	11,482	$	109	$	10,727	$	80
Equity swaps	$	2,077,076	388,875		$	1,950,181	305,370
Options (a)	120,847		49,801		217,393		61,219
Interest rate swap (c)	$	427,000	19,839		$	285,000	1,208
Netting - swaps (b)			(115,912)				(81,742)
			$	342,712			$	286,135

Payable for derivative contracts	As of March 31, 2022				As of December 31, 2021
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	2,567	$	53	$	9,378	$	266
Currency forwards	$	138,530	1,084		$	149,575	1,346
Equity swaps	$	825,229	152,265		$	988,329	114,689
Options (a)	117,871		25,214		182,440		36,192
Netting - swap (b)			(131,802)				(92,330)
			$	46,814			$	60,163

(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.

(b) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

(c) Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 12

The following tables present the gross and net derivative positions and the related offsetting amount, as of March 31, 2022 and December 31, 2021. This table does not include the impact of over-collateralization.

			Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Gross amounts not offset in the Condensed Consolidated Statements of Financial Condition
	Gross amounts recognized						Financial instruments (a)		Cash Collateral pledged (a)		Net amounts
	(dollars in thousands)
As of March 31, 2022
Receivable on derivative contracts, at fair value	$	458,624	$	115,912	$	342,712	$	1,431	$	256,061	$	85,220
Payable for derivative contracts, at fair value	178,616		131,802		46,814		2,840		—		43,974
As of December 31, 2021
Receivable on derivative contracts, at fair value	$	367,877	$	81,742	$	286,135	$	1,421	$	211,442	$	73,272
Payable for derivative contracts, at fair value	152,493		92,330		60,163		2,839		—		57,324

(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

Schedule of Other Investments

As of March 31, 2022 and December 31, 2021, other investments included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Portfolio funds, at fair value (1)	$	131,766	$	137,986
Carried interest (2)	70,281		88,925
Equity method investments (3)	35,581		47,200
	$	237,628	$	274,111

Schedule of Other Investments, Portfolio Funds

The portfolio funds, at fair value as of March 31, 2022 and December 31, 2021, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
HealthCare Royalty Partners LP (a)(*)	$	791	$	832
HealthCare Royalty Partners II LP (a)(*)	1,241		1,259
Eclipse Ventures Fund I, L.P. (b)	6,348		5,829
Eclipse Ventures Fund II, L.P. (b)	2,359		2,354
Eclipse Continuity Fund I, L.P. (b)	1,827		1,641
Starboard Value and Opportunity Fund LP (c)(*)	48,246		49,252
Starboard Value and Opportunity Fund Ltd (c) (*)	2,675		2,732
Lagunita Biosciences, LLC (d)	5,227		5,671
Starboard Leaders Fund LP (e)(*)	2,826		2,823
Formation8 Partners Fund I, L.P. (f)	19,949		20,992
BDC Fund I Coinvest 1, L.P. (g)	1,250		1,250
Difesa Partners, LP (h)	971		1,017
Cowen Sustainable Investments I LP (i)(*)	12,879		13,102
Cowen Healthcare Investments II LP (i) (*)	9,524		13,055
Cowen Healthcare Investments III LP (i)(*)	6,847		8,426
Cowen Healthcare Investments IV LP (i)(*)	1,987		1,071
Eclipse SPV I, LP (j)(*)	1,445		1,445
TriArtisan ES Partners LLC (k)(*)	1,805		1,805
TriArtisan PFC Partners LLC (l)(*)	1,177		1,112
Ramius Merger Fund LLC (m)(*)	1,760		1,692
Other private investment (n)(*)	294		303
Other affiliated funds (o)(*)	338		323
	$	131,766	$	137,986

* These portfolio funds are affiliates of the Company.

The Company has no unfunded commitments regarding the portfolio funds held by the Company except as noted in Note 22.

(a)HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis.

(b)Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated.

(c)Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice.

(d)Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

(e)Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution.

(f)Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.

(g)BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated.

(h)Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.

(i)Cowen Sustainable Investments I LP, Cowen Healthcare Investments II LP, Cowen Healthcare Investments III LP and Cowen Healthcare Investments IV LP are private equity funds.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights.

(j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects.  Distributions will be made when the underlying investments are liquidated.

(k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated.

(l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated.

(m)Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice.

(n)Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy.

(o)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.

Carried Interest

The carried interest as of March 31, 2022 and December 31, 2021, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Cowen Healthcare Investments II LP	$	13,886	$	23,327
Cowen Healthcare Investments III LP	11,510		18,523
Cowen Sustainable Investments I LP	6,725		7,436
Cowen Sustainable Investments Offshore I LP	8,114		9,196
CSI I Prodigy Co-Investment LP	2,241		2,436
CSI PRTA Co- Investment LP	8,682		9,535
TriArtisan TGIF Partners LLC	4,279		4,047
TriArtisan ES Partners LLC	3,389		3,401
TriArtisan PFC Partners LLC	10,408		9,394
Ramius Multi-Strategy Fund LP	555		587
Ramius Merger Fund LLC	368		861
RCG IO Renergys Sarl	124		136
Other affiliated funds	—		46
	$	70,281	$	88,925

Schedule Equity Method Investments

The following table summarizes equity method investments held by the Company:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Starboard Value LP	$	25,741	$	36,889
HealthCare Royalty GP III, LLC	1,830		1,957
HealthCare Royalty GP, LLC	1,595		1,451
HealthCare Royalty GP II, LLC	210		213
HealthCare Royalty GP IV, LLC	1,618		1,716
RCG Longview Debt Fund IV Management, LLC	331		331
HCR Overflow Fund GP, LLC	774		839
HCRP MGS Account Management, LLC	114		598
HCR Stafford Fund GP, LLC	3,119		2,955
Other	249		251
	$	35,581	$	47,200

Schedule of Securities Sold, Not yet Purchased

As of March 31, 2022 and December 31, 2021, securities sold, not yet purchased, at fair value consisted of the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Common stock	$	956,228	$	1,192,396
Corporate bonds	1,349		37
Preferred stock	17,278		9,009
Warrants and rights	12		6
	$	974,867	$	1,201,448

Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings

The following tables present the contractual gross and net securities borrowing and lending agreements and securities sold under agreements to repurchase and the related offsetting amount as of March 31, 2022 and December 31, 2021.

							Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
	Gross amounts recognized, net of allowance		Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)		Net amounts included on the Condensed Consolidated Statements of Financial Condition		Additional Amounts Available		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of March 31, 2022
Securities borrowed	$	1,761,146	$	—	$	1,761,146	$	—	$	1,661,310	$	—	$	99,836
Securities loaned	1,735,852		—		1,735,852		—		1,706,171		—		29,681
Securities purchased under agreements to resell	19,621		—		19,621		—		21,035		—		(1,414)
Securities sold under agreements to repurchase	229,192		—		229,192		—		249,116		—		(19,924)
As of December 31, 2021
Securities borrowed	1,704,603		—		1,704,603		—		1,652,007		—		52,596
Securities loaned	1,586,572		—		1,586,572		—		1,592,140		—		(5,568)
Securities sold under agreements to repurchase	$	63,469	$	—	$	63,469	$	—	$	74,443	$	—	$	(10,974)

(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

(b)Includes the amount of cash collateral held/posted.

Investments Classified by Contractual Maturity Date

The following tables present gross obligations for securities loaned and securities sold under agreements to repurchase by remaining contractual maturity and class of collateral pledged as of March 31, 2022 and December 31, 2021:

	Open and Overnight		Up to 30 days		31 - 90 days		Greater than 90 days		Total
	(dollars in thousands)
As of March 31, 2022
Securities loaned
Common stock	$	1,728,578	$	—	$	—	$	—	$	1,728,578
Corporate bonds	7,274		—		—		—		7,274
Securities purchased under agreements to resell
Corporate bonds	19,621		—		—		—		19,621
Securities sold under agreements to repurchase
Common stock	—		43,073		—		—		43,073
Corporate bonds	186,119		—		—		—		186,119
As of December 31, 2021
Securities loaned
Common stock	$	1,570,835	$	—	$	—	$	—	1,570,835
Corporate bonds	15,737		—		—		—		15,737
Securities sold under agreements to repurchase
Common stock	—		20,906		42,563		—		63,469

Fair Value, Concentration of Risk

	Investment's percentage of the Company's stockholders' equity
	Issuer	Security Type	Country	Industry	Percentage of Stockholders' Equity		Market Value
							(dollars in thousands)
As of March 31, 2022	Linkem S.p.A.	Equity and warrants	Italy	Wireless Broadband	7.87	%	$	81,498
As of December 31, 2021	Linkem S.p.A.	Equity and warrants	Italy	Wireless Broadband	8.22	%	$	83,537

Consolidated Funds

Investment Holdings [Line Items]

Schedule of Other Investments, Portfolio Funds

Investments in portfolio funds, at fair value

As of March 31, 2022 and December 31, 2021, investments in portfolio funds, at fair value, included the following:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Investments of Enterprise LP	$	97,182	$	99,067
	$	97,182	$	99,067

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Fair Value Measurements for Operating Entities and Consolidated Funds (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the assets and liabilities that are measured at fair value on a recurring basis on the accompanying condensed consolidated statements of financial condition by caption and by level within the valuation hierarchy as of March 31, 2022 and December 31, 2021:

	Assets at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	11,992	$	—	$	—	$	—	$	11,992
Preferred stock	20,483		—		169,701		—		190,184
Common stock	2,304,895		3,517		39,831		—		2,348,243
Convertible bonds	—		—		5,250		—		5,250
Corporate bonds	28,892		115,680		2,426		—		146,998
Trade claims	—		—		4,840		—		4,840
Term loan	—		2,375		—		—		2,375
Warrants and rights	34,525		—		18,557		—		53,082
Private investments	—		—		550		—		550
Receivable on derivative contracts, at fair value
Currency forwards	—		109		—		—		109
Equity swaps	—		388,875		—		(115,912)		272,963
Options	49,573		—		228		—		49,801
Interest rate swap	—		19,839		—		—		19,839
	$	2,450,360	$	530,395	$	241,383	$	(115,912)	$	3,106,226
Portfolio funds measured at net asset value (a)									131,766
Consolidated Funds' portfolio funds measured at net asset value (a)									97,182
Carried interest (a)									70,281
Equity method investments (a)									35,581
Total investments									$	3,441,036

	Liabilities at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	858,685	$	97,543	$	—	$	—	$	956,228
Corporate bonds	—		1,349		—		—		1,349
Preferred stock	17,278		—		—		—		17,278
Warrants and rights	12		—		—		—		12
Payable for derivative contracts, at fair value
Futures	53		—		—				53
Currency forwards	—		1,084		—		—		1,084
Equity swaps	—		152,265		—		(131,802)		20,463
Options	22,135		—		3,079		—		25,214
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		57,339		—		57,339
	$	898,163	$	252,241	$	60,418	$	(131,802)	$	1,079,020

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the acquisition of Quarton International AG "Quarton"), the fourth quarter of 2020 (the acquisition of MHT Partners, LP "MHT") and the fourth quarter of 2021 (the acquisition of Portico Capital Advisors "Portico"), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $12.5 million to $14.9 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million.

(c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

	Assets at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	16,002	$	—	$	—	$	—	$	16,002
Preferred stock	12,299		—		122,631		—		134,930
Common stock	2,396,041		121		32,658		—		2,428,820
Convertible bonds	—		—		5,250		—		5,250
Corporate bonds	—		19,049		2,419		—		21,468
Trade claims	—		—		3,496		—		3,496
Term loan	—		3,907		—		—		3,907
Private investments	—		—		410		—		410
Warrants and rights	31,056		—		15,403		—		46,459
Receivable on derivative contracts, at fair value
Currency forwards	—		80		—		—		80
Equity swaps	—		305,370		—		(81,742)		223,628
Options	60,985		—		234		—		61,219
Interest rate swap	—		1,208		—				1,208
	$	2,516,383	$	329,735	$	182,501	$	(81,742)	$	2,946,877
Portfolio funds measured at net asset value (a)									137,986
Consolidated Funds' portfolio funds measured at net asset value (a)									99,067
Carried interest (a)									88,925
Equity method investments (a)									47,200
Total investments									$	3,320,055

	Liabilities at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	1,192,396	$	—	$	—	$	—	$	1,192,396
Corporate bonds	—		37		—		—		37
Preferred stock	9,009		—		—		—		9,009
Warrants and rights	6		—		—		—		6
Payable for derivative contracts, at fair value
Futures	266		—		—		—		266
Currency forwards	—		1,346		—		—		1,346
Equity swaps	—		114,689		—		(92,330)		22,359
Options	32,773		—		3,419		—		36,192
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		62,223		—		62,223
	$	1,234,450	$	116,072	$	65,642	$	(92,330)	$	1,323,834

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the Quarton acquisition), the fourth quarter of 2020 (the MHT acquisition) and the fourth quarter of 2021 (the Portico acquisition), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the

Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $10.1 million to $25.0 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero  to $58.0 million. (c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table includes a roll forward of the amounts for the three months ended March 31, 2022 and 2021 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.

	Three Months Ended March 31, 2022
	Balance at December 31, 2021		Transfers in		Transfers out		Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2022		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	122,631	$	—	$	—	$	3,441	$	(1,100)	$	44,729	$	169,701	$	44,729
Common stock	32,658		—		—		2,018		(33)		5,188		39,831		5,188
Convertible bonds	5,250		—		—		—		—		—		5,250		—
Corporate bond	2,419		—		—		—		—		7		2,426		7
Options, asset	234		—		—		—		—		(6)		228		(6)
Options, liability	3,419		—		—		—		—		(340)		3,079		(340)
Warrants and rights	15,403		—		—		414		—		2,740		18,557		2,740
Trade claims	3,496		—		—		1,666		(615)		293		4,840		293
Private investments	410		—		—		353		(250)		37		550		37
Contingent consideration liability	62,223		—		—		—		(10,076)		5,192		57,339		5,192

	Three Months Ended March 31, 2021
	Balance at December 31, 2020		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2021		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	59,967	$	—	$	—		$	1,859	$	(4,651)	$	(698)	$	56,477	$	(698)
Common stock	23,786		—		(5,353)		(a)	3,226		(1,387)		2,434		22,706		1,679
Convertible bonds	6,040		—		—			1,050		(3,930)		(23)		3,137		(23)
Corporate Bond, asset	135		—		—			70		(49)		(20)		136		(49)
Options, asset	251		—		—			—		—		(10)		241		(10)
Options, liability	3,915		—		—			—		—		(618)		3,297		(618)
Warrants and rights	6,547		—		—			3,406		(1,206)		(823)		7,924		(895)
Term Loan	12,623		—		—			322		—		(521)		12,424		(521)
Trade claim	8,713		—		—			1,378		(4,216)		30		5,905		(1,021)
Private investments	642		—		—			443		—		—		1,085		—
Corporate bond, liability	704		—		—			—		(289)		—		415		—
Government bonds, liability	1,500		—		—			—		(1,278)		300		522		87
Contingent consideration liability	37,952		—		—			(11,312)		—		(7,061)		19,579		(7,061)
Consolidated Funds
Common stock	2,951		—		—			—		—		—		2,951		—
Warrants and rights	5,806		—		—			—		(670)		193		5,329		(477)

(1) Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying condensed consolidated statements of operations.

(a) The entity in which the Company is invested completed an initial public offering.

Fair Value Inputs, Assets, Quantitative Information

The following table includes quantitative information as of March 31, 2022 and December 31, 2021 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments.

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value March 31, 2022		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	75,253	Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 20% 6.25x - 6.75x	13% 6.5x
Options	228		Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 13.5% 6.25x - 6.75x	13% 6.5x
Trade claims	2,138		Discounted cash flows	Discount rate	50%	50%
Warrants and rights	5,986		Discounted cash flows Guideline companies Option pricing model	Discount rate EBITDA Market Multiples Volatility	12.5% - 13.5% 6.25x - 6.75x 73% - 103%	13.0% 6.5x 97.2%
Other level 3 assets (a)	157,778
Total level 3 assets	$	241,383
Level 3 Liabilities
Options	3,079		Discounted cash flows Option pricing model	Discount rate Volatility	2.29% 35%	2.29% 35%
Contingent consideration liability	57,339		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	8.6% - 16% 20% - 22%	12.3% 20.9%
Total level 3 liabilities	$	60,418

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2021		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	76,491	Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 20% 6.25x - 6.75x	13% 6.5x
Trade claims	2,376		Discounted cash flows	Discount rate	40%	40%
Warrants and rights	4,483		Discounted cash flows Guideline companies Option pricing model	Discount rate EBITDA Market Multiples Volatility	12.5% - 13.5% 6.25x - 6.75x 90% - 100%	13% 6.5x 95%
Options	234		Discounted cash flows Guideline companies	Discount rate EBITDA Market Multiples	12.5% - 13.5% 6.25x - 6.75x	13% 6.5x
Other level 3 assets (a)	98,917
Total level 3 assets	$	182,501
Level 3 Liabilities
Options	3,419		Option pricing model	Volatility	35%	35%
Contingent consideration liability	62,223		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	7% - 15% 20% - 24%	12% 22%
Total level 3 liabilities	$	65,642

(a)The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions.

Fair Value Measurements, Nonrecurring

For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value (see Note 2e).

	March 31, 2022						December 31, 2021						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	512,978		$	512,978		$	914,343		$	914,343		Level 1
Cash collateral pledged	52,865			52,865			47,494			47,494			Level 2
Segregated cash	220,882			220,882			194,701			194,701			Level 1
Securities purchased under agreements to resell	19,621			19,621			—			—			Level 2
Securities borrowed	1,761,146			1,761,146			1,704,603			1,704,603			Level 2
Loans receivable	5,041			5,041		(b)	4,858			4,858		(b)	Level 3
Consolidated Funds
Cash and cash equivalents	23			23			296			296			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	229,192			229,192			63,469			63,469			Level 2
Securities loaned	1,735,852			1,735,852			1,586,572			1,586,572			Level 2
Notes payable and other debt	625,766		(c)	644,238		(a)	623,371		(c)	655,229		(a)	Level 2

(a)Notes payable and other debt are based on the last broker quote available.(b)The fair market value of level 3 loans is calculated using discounted cash flows where applicable. (c)The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.7 million and $0.2 million as of March 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.

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Receivables from and payables to brokers, dealers and clearing organizations receivables from brokers, dealers, and clearing organization (Tables)

3 Months Ended

Mar. 31, 2022

Receivables from Brokers-Dealers and Clearing Organizations [Abstract]

Schedule of Due to (from) Broker-Dealers and Clearing Organizations

As of March 31, 2022 and December 31, 2021, amounts receivable from brokers, dealers and clearing organizations include:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Broker-dealers	$	1,342,242	$	1,533,713
Securities failed to deliver	91,561		17,851
Clearing organizations	44,450		56,075
Securities borrowed/loaned interest receivable	9,658		6,708
	$	1,487,911	$	1,614,347

As of March 31, 2022 and December 31, 2021, amounts payable to brokers, dealers and clearing organizations include:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Broker-dealers	$	419,423	$	483,112
Securities failed to receive	95,201		57,894
Clearing organizations	62,804		37,925
Securities borrowed/loaned interest payable	10,112		7,622
	$	587,540	$	586,553

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Convertible Debt and Notes Payable (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Debt and Capital Lease Obligations

As of March 31, 2022 and December 31, 2021, the Company's outstanding debt was as follows:

	As of March 31, 2022		As of December 31, 2021
	(dollars in thousands)
Notes payable	$	174,139	$	174,015
Term loan	434,319		435,147
Other notes payable	15,857		12,537
Finance lease obligations	1,451		1,672
	$	625,766	$	623,371

Direct Financing Lease, Lease Income [Table Text Block]

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's finance lease obligations reflected in the accompanying condensed consolidated statements of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	324		$	309
Interest on lease liabilities	$	20		$	34
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	20		$	34
Financing cash flows from finance leases	$	274		$	332
Weighted average remaining lease term - operating leases (in years)	1.63			2.01
Weighted average discount rate - operating leases	4.66		%	4.89		%

Schedule of Maturities of Debt and Future Minimum Lease Payments for Capital Leases

Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of March 31, 2022, are as follows:

	Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2022	$	11,468	$	16,733	$	3,752	$	849
2023	13,405		22,351		12,593		500
2024	88,578		22,168		543		100
2025	7,750		21,986		—		49
2026	7,750		21,803		—		12
Thereafter	150,375		445,631		—		—
Subtotal	279,326		550,672		16,888		1,510
Less (a)	(105,187)		(116,353)		(1,031)		(59)
Total	$	174,139	$	434,319	$	15,857	$	1,451

(a)Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt.

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Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Treasury Stock Activity

The following represents the activity relating to the treasury stock held by the Company during the three months ended March 31, 2022:

	Treasury Stock Shares	Cost (dollars in thousands)		Average Cost per Share
Balance outstanding at December 31, 2021	28,047,929	$	547,112	$	19.51
Shares purchased for minimum tax withholding under the 2010 and 2020 Equity Plans or other similar transactions	374,149	12,283		32.83
Purchase of treasury stock	798,302	24,140		30.24
Balance outstanding at March 31, 2022	29,220,380	$	583,535	$	19.97

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Non-Controlling Interests in Consolidated Subsidiaries and Funds (Tables)

3 Months Ended

Mar. 31, 2022

Noncontrolling Interest [Abstract]

Noncontrolling interests in consolidated subsidiaries and investment funds

Redeemable and nonredeemable non-controlling interests in consolidated subsidiaries and investment funds and the related net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds are comprised as follows:

	As of March 31, 2022		As of March 31, 2021
	(dollars in thousands)
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds
Operating companies
Beginning balance	126,105		83,818
Capital contributions	1,610		3,498
Capital distributions	(5,901)		(2,348)
Income (loss) attributable to non-controlling interests	20,858		7,661
Ending balance	142,672		92,629
Consolidated Funds
Beginning balance	33,630		115,806
Capital contributions	—		19,017
Capital distributions	—		(16,425)
Deconsolidation of entity	—		(74,813)
Income (loss) attributable to non-controlling interests	(727)		(3,099)
Ending balance	32,903		40,486
Total Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds	$	175,575	$	133,115

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income / (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Beginning balance	$	(2)	$	(7)
Foreign currency translation	2		4
Ending balance	$	—	$	(3)

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Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from External Customers by Products and Services

For the three months ended March 31, 2022 and 2021, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Three Months Ended March 31,
		2022		2021
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	17,583	$	154,304
Strategic/financial advisory fees		58,789		73,555
Placement and sales agent fees		22,584		72,544
Expense reimbursements from clients		2,586		4,431
	Total investment banking revenue	101,542		304,834
Brokerage
Commissions		152,483		159,681
Trade conversion revenue		7,410		6,241
Equity research fees		6,203		4,593
	Total brokerage revenue from customers	166,096		170,515
Management fees		16,555		25,499
Incentive income		633		2,258
Total revenue from contracts with customers - Op Co		$	284,826	$	503,106
		Asset Company
Management fees		214		243
Incentive income		—		—
Total revenue from contracts with customers - Asset Co		214		243
Total revenue from contracts with customers		$	285,040	$	503,349

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Insurance and reinsurance (Tables)

3 Months Ended

Mar. 31, 2022

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

Effects of Reinsurance

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Incurred and paid claims
Insurance (net of Outward Reinsurance)	$	1,067	$	744
Inward Reinsurance	3,011		3,904
Total	$	4,078	$	4,648
Change in claims outstanding and claims IBNR
Insurance (net of Outward Reinsurance)	$	54	$	(136)
Inward Reinsurance	(589)		(559)
Total	$	(535)	$	(695)

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Share-Based Payments, Deferred Compensation and Employee Ownership Plans (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units	Weighted-Average Grant Date Fair Value		Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units	Weighted-Average Grant Date Fair Value
Beginning balance outstanding	4,595,342	$	24.33	5,450,191	$	17.56
Granted	1,919,504	31.98		1,593,941	34.85
Vested	(224,073)	19.32		(291,062)	16.11
Canceled	—	—		—	—
Forfeited	(16,526)	20.51		(8,134)	20.22
Ending balance outstanding	6,274,247	$	26.86	6,744,936	$	21.71

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share, Basic and Diluted

The computation of earnings per share is as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars and share data in thousands, except per share data)
Net income (loss)	$	55,147	$	152,066
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131		4,562
Net income (loss) attributable to Cowen Inc.	35,016		147,504
Preferred stock dividends	1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders for basic earnings per share	33,318		145,806
Change in fair value of contingently issuable shares	41		—
Net income (loss) attributable to Cowen Inc. common stockholders for diluted earnings per share	$	33,359	$	145,806
Shares for basic and diluted calculations:
Weighted average shares used in basic computation	28,386		27,359
Performance based restricted stock	374		445
Contingently issuable common stock in connection with acquisitions	82		—
December 2022 Convertible Notes	—		2,659
Series A Convertible Preferred Stock	708		—
Restricted stock	2,222		3,102
Weighted average shares used in diluted computation	31,772		33,565
Earnings (loss) per share:
Basic	$	1.17	$	5.33
Diluted	$	1.05	$	4.34

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Operating Lease, Lease Income

For the three months ended March 31, 2022 and 2021, quantitative information regarding the Company's operating lease obligations reflected in the accompanying condensed consolidated statements of operations were as follows:

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Lease cost
Operating lease cost	$	6,614	$	5,770
Short-term lease cost	141		33
Variable lease cost	837		906
Sublease income	(155)		(160)
Total lease costs	$	7,437	$	6,549

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	(dollars in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,814		$	6,748
Weighted average remaining lease term - operating leases (in years)	5.54			4.56
Weighted average discount rate - operating leases	4.13		%	4.10		%

Future Minimum Annual Lease and Service Payments

As of March 31, 2022, maturities of the outstanding operating lease liabilities for the Company were as follows:

	Equipment Leases (operating)		Real Estate and Other Facility Rental (a) (b)
	(dollars in thousands)
2022	$	366	$	16,813
2023	381		25,476
2024	370		22,965
2025	370		12,312
2026	278		8,881
Thereafter	—		24,969
Total operating leases	1,765		111,416
Less discount	105		13,218
Less short-term leases	—		58
Total lease liability	$	1,660	$	98,140

(a)The Company has entered into various agreements to sublease certain of its premises.

(b)During the three months ended March 31, 2022, the Company recognized an increase of $8.3 million of operating right-of-use assets and leases liabilities related to facility leases.

As of March 31, 2022, future minimum annual service payments for the Company were as follows:

	Service Payments
	(dollars in thousands)
2022	$	22,196
2023	17,544
2024	8,214
2025	3,889
2026	3,253
Thereafter	7,357
Total service payment commitments	$	62,453

Other Commitments

The following table summarizes unfunded commitments as of March 31, 2022:

Entity	Unfunded Commitments		Commitment Term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	6,451	2.8 years
Eclipse Ventures Fund I, L.P.	$	28	2.8 years
Eclipse Fund II, L.P.	$	18	3.8 years
Eclipse Continuity Fund I, L.P.	$	16	4.8 years
Cowen Healthcare Investments III LP	$	2,165	4.8 years
Cowen Healthcare Investments IV LP	$	5,784	5.8 years
Cowen Sustainable Investments I LP	$	14,643	7.8 years

(a) The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners.

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

The following table sets forth operating results for the Company's consolidated US GAAP net income (loss) and related reclassifications and adjustments necessary to reconcile to the Company's Economic Income (Loss) measure which represents the Company's Op Co and Asset Co segments' results:

		Three Months Ended March 31,
		2022		2021
	(dollars in thousands)
Economic Income
Op Co		$	36,297	$	143,858
Asset Co		1,150		(1,476)
Adjustments applied to arrive at Net Income (loss)
Income attributable to non-controlling interest		20,131		4,562
Preferred stock dividends		1,698		1,698
Amortization of (discount)/premium on convertible debt		(75)		(776)
Acquisition related amounts		(80)		(238)
Contingent liability adjustments		(5,133)		6,798
Debt extinguishment gain (loss) and accelerated debt costs		—		(4,538)
Bargain purchase gain		—		3,855
US GAAP Income tax expense		(11,889)		(54,428)
Economic income tax expense		13,048		52,751
Net income (loss)		$	55,147	$	152,066

Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense, (iv) depreciation and amortization expense and (v) income taxes presented on an Economic Income (Loss) basis by Segment. The following table sets forth the included segment information on a US GAAP basis with reconciliations to consolidated amounts.

	Three Months Ended March 31,
	2022		2021
	(dollars in thousands)
Op Co
Non-Interest Revenue	$	367,652	$	697,885
Interest Revenue	40,331		51,104
Total Revenues	407,983		748,989
Interest Expense	43,300		53,803
Depreciation and Amortization	7,179		4,349
Income Taxes	11,832		55,085
Asset Co
Non-Interest Revenue	2,599		(1,668)
Interest Revenue	8		203
Interest Revenue, Consolidated funds	2		2
Total Revenues	2,609		(1,463)
Interest Expense	1,236		1,275
Depreciation and Amortization	6		5
Income Taxes	57		(657)
Total Segment
Non-Interest Revenue *	370,251		696,217
Interest Revenue	40,339		51,307
Interest Revenue, Consolidated funds	2		2
Total Revenues	$	410,592	$	747,526
Interest and Dividend Expense (includes dividend expense of $2.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively)	46,524		57,641
Depreciation and Amortization	7,185		4,354
Income Taxes	11,889		54,428

* Includes dividend revenue of $6.0 million and $8.1 million for the three months ended March 31, 2022 and 2021, respectively. In addition, includes dividend revenue, consolidated funds, of $0.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively.

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Regulatory Requirements Regulatory (Tables)

3 Months Ended

Mar. 31, 2022

Regulatory [Abstract]

Computation of Net Capital under Securities and Exchange Commission Regulation

As of March 31, 2022, the regulatory net capital, minimum net capital requirement and excess net capital of U.S. regulated broker dealers and swap dealer together with the equivalent of capital requirements and compliance information for foreign broker dealers registered with the FCA and the SFC are presented as follows:

Subsidiary	Net Capital		Minimum Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	406,557	$	9,343	$	397,214
ATM Execution	$	7,880	$	250	$	7,630
Westminster	$	19,521	$	250	$	19,271
Cowen Financial Products	$	36,658	$	20,000	$	16,658
Cowen International Ltd (a)	$	51,109	$	25,735	$	25,374
Cowen Execution Ltd (a)	$	17,900	$	5,075	$	12,825
Cowen Asia (a)	$	2,045	$	383	$	1,662

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Guarantees and Off-Balance Sheet Arrangements Details (Tables)

3 Months Ended

Mar. 31, 2022

Guarantees and Off Balance Sheet Arrangements [Abstract]

Schedule of Subordinated Borrowing

The Company maintains uncommitted financing arrangements with large financial institutions, the details of which are summarized below as of March 31, 2022.

Lender	Contractual Amount		Available Amount		Maturity Date	Description
Pledge Lines	(dollars in thousands)
BMO Harris Bank	$	75,000	$	75,000	None	Secured Tri-Party Pledge Facility
BMO Harris Bank	150,000		150,000		None	Secured Depository Trust Company Pledge Line
Total	225,000		225,000
Spike Line
BMO Harris Bank      Canadian Imperial Bank      of Commerce, in syndication	70,000		70,000		August 19, 2022	Unsecured committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements
Revolving Credit Facility
Morgan Stanley	25,000		25,000		March 24, 2026	Unsecured Corporate Revolver
Total Credit Lines	$	320,000	$	320,000

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Organization and Business (Details)	3 Months Ended
	Mar. 31, 2022 segment division
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments | segment	2
Number of divisions | division	4

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Significant Accounting Policies All Other - Quarterly (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Assets	$ 8,426,027	$ 8,748,814
Liabilities	7,094,554	7,452,460
Variable Interest Entity, Primary Beneficiary [Member]
Assets	332,400	304,100
Liabilities	$ 6,600	$ 9,800
Operating Company | Hedge Funds
Asset Management Fees, Percent Fee	2.00%
Operating Company | During investment period | Minimum
Asset Management Fees, Percent Fee	1.00%
Operating Company | During investment period | Maximum
Asset Management Fees, Percent Fee	2.00%
Operating Company | During investment period | Other Healthcare Royalty Partners | Minimum
Asset Management Fees, Percent Fee	0.20%
Operating Company | During investment period | Other Healthcare Royalty Partners | Maximum
Asset Management Fees, Percent Fee	1.00%
Operating Company | After investment period | Healthcare Royalty Partners | Minimum
Asset Management Fees, Percent Fee	1.00%
Operating Company | After investment period | Healthcare Royalty Partners | Maximum
Asset Management Fees, Percent Fee	2.00%

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Acquisition (Narrative) (Details) - Cowen Insurance - USD ($) $ in Thousands		3 Months Ended
	Feb. 26, 2021	Mar. 31, 2022
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 12,700
Payments to Acquire Businesses, Gross	12,500
Escrow	200
Business Combination, Bargain Purchase, Gain Recognized, Amount	5,200
Business Combination Bargain Purchase Gain Related Tax Expense	1,300
Intangible assets	$ 4,794
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Amortization of Intangible Assets		$ 100
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed		$ 200
License
Business Acquisition [Line Items]
Intangible assets	$ 200
Customer-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets	$ 4,600

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Acquisition (Preliminary Purchase Price Allocation) (Details) - Cowen Insurance $ in Thousands	Feb. 26, 2021 USD ($)
Business Acquisition [Line Items]
Cash	$ 14,844
Securities owned, at fair value	1,571
Fixed assets	30
Intangible assets	4,794
Other assets	12,828
Compensation payable	(17)
Other liabilities	(16,099)
Total net identifiable assets acquired and liabilities assumed	17,951
Bargain purchase gain	(5,216)
Total estimated purchase price	$ 12,735

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Acquisition (Amortization Expense) (Details) - Cowen Insurance $ in Thousands	Mar. 31, 2022 USD ($)
Business Acquisition [Line Items]
2022	$ 343
2023	458
2024	458
2025	458
2026	458
Thereafter	2,124
Finite-Lived Intangible Assets, Net	$ 4,299

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Cash Collateral Pledged (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Cash collateral pledged	$ 52,865,000	$ 47,494,000	$ 110,303,000
Letter of credit, borrowing capacity	320,000,000
Letters of Credit Outstanding, Amount	0	0
Letter of Credit | Letter of Credit, NY Office 1, Expires April 2023
Letter of credit, borrowing capacity	209,000
Letter of Credit | Letter of Credit, NY Office 2, Expires October 2022
Letter of credit, borrowing capacity	1,325,000
Letter of Credit | Letter of Credit, NY Office 3, Expires August 2022
Letter of credit, borrowing capacity	1,226,000
Letter of Credit | Letter of Credit, Boston Office, Expires March 2023
Letter of credit, borrowing capacity	188,000
Letter of Credit | Letter of Credit, San Francisco Office, Expires October 2025
Letter of credit, borrowing capacity	454,000
Facility Leases
Cash collateral pledged	3,402,000	3,400,000
Collateral Reinsurance Agreement
Cash collateral pledged	$ 49,500,000	$ 44,100,000

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Segregated Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Segregated Cash [Abstract]
Segregated Cash	$ 220,882	$ 194,701	$ 168,942

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Owned at Fair Value (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Securities owned, at fair value		$ 2,763,514	$ 2,660,742
Estimate of Fair Value Measurement [Member]
Investment Holdings [Line Items]
Securities owned, at fair value		4,800	3,500
Common Stock
Investment Holdings [Line Items]
Trading Securities, Equity		2,348,243	2,428,820
Preferred Stock
Investment Holdings [Line Items]
Trading Securities, Equity		190,184	134,930
Warrants and Rights
Investment Holdings [Line Items]
Trading Securities, Equity		53,082	46,459
Government Securities
Investment Holdings [Line Items]
Debt Securities, Trading		11,992	16,002
Corporate Bonds
Investment Holdings [Line Items]
Debt Securities, Trading		146,998	21,468
Convertible Bonds
Investment Holdings [Line Items]
Debt Securities, Trading		5,250	5,250
Term Loans
Investment Holdings [Line Items]
Debt Securities, Trading		2,375	3,907
Trade Claims
Investment Holdings [Line Items]
Debt Securities, Trading	[1]	4,840	3,496
Private Investments
Investment Holdings [Line Items]
Debt Securities, Trading		$ 550	$ 410

[1] The Company has elected the fair value option for securities owned, at fair value with a fair value of $4.8 million and $3.5 million of trade claims respectively, at March 31, 2022 and December 31, 2021.

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Investments Of Operating Entities And Consolidated Funds - Operating Entities - Receivable On And Payable For Derivative Contracts, At Fair Value (Details)		Mar. 31, 2022 USD ($) contract	Dec. 31, 2021 USD ($) contract
Derivative [Line Items]
Receivable on derivative contracts, at fair value		$ 342,712,000	$ 286,135,000
Payable for derivative contracts, at fair value		46,814,000	60,163,000
Receivable on derivatives contracts, at fair value [Member]
Derivative [Line Items]
Receivable on derivative contracts, at fair value		342,712,000	286,135,000
Derivative Asset, Fair Value, Amount Offset Against Collateral	[1],[2]	(115,912,000)	(81,742,000)
Payable for derivatives contracts, at fair value [Member]
Derivative [Line Items]
Payable for derivative contracts, at fair value		46,814,000	60,163,000
Derivative Liability, Fair Value, Amount Offset Against Collateral	[1],[2]	(131,802,000)	(92,330,000)
Futures
Derivative [Line Items]
Derivative Liability, Notional Amount		2,567,000	9,378,000
Payable for derivative contracts, at fair value		53,000	266,000
Currency Forwards
Derivative [Line Items]
Derivative Asset, Notional Amount		11,482,000	10,727,000
Receivable on derivative contracts, at fair value		109,000	80,000
Derivative Liability, Notional Amount		138,530,000	149,575,000
Payable for derivative contracts, at fair value		1,084,000	1,346,000
Equity Swaps
Derivative [Line Items]
Derivative Asset, Notional Amount		2,077,076,000	1,950,181,000
Receivable on derivative contracts, at fair value		388,875,000	305,370,000
Derivative Liability, Notional Amount		825,229,000	988,329,000
Payable for derivative contracts, at fair value		$ 152,265,000	$ 114,689,000
Options (held long)
Derivative [Line Items]
Derivative Asset, Number of Instruments Held | contract	[3]	120,847	217,393
Receivable on derivative contracts, at fair value	[3]	$ 49,801,000	$ 61,219,000
Options (held short)
Derivative [Line Items]
Derivative Liability, Number of Instruments Held | contract	[3]	117,871	182,440
Payable for derivative contracts, at fair value	[3]	$ 25,214,000	$ 36,192,000
Interest rate swap
Derivative [Line Items]
Derivative Asset, Number of Instruments Held | contract	[4]	427,000,000	285,000,000
Receivable on derivative contracts, at fair value	[4]	$ 19,839,000	$ 1,208,000

[1] Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

[2] Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred

[3] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

[4] Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 12

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Investments Of Operating Entities And Consolidated Funds - Operating Entities - Gross And Net Derivative Positions And The Related Offsetting Amount (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Receivable on derivative contracts, at fair value		$ 342,712	$ 286,135
Payable for derivative contracts, at fair value		46,814	60,163
Receivable on derivatives contracts, at fair value [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		458,624	367,877
Derivative Asset, Fair Value, Amount Offset Against Collateral	[1],[2]	115,912	81,742
Receivable on derivative contracts, at fair value		342,712	286,135
Financial Instruments, Owned and Pledged as Collateral, at Fair Value	[2]	1,431	1,421
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[2]	256,061	211,442
Derivative asset, net of offset		85,220	73,272
Payable for derivatives contracts, at fair value [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Gross Liability		178,616	152,493
Derivative Liability, Fair Value, Amount Offset Against Collateral	[1],[2]	131,802	92,330
Payable for derivative contracts, at fair value		46,814	60,163
Financial Instruments, Owned and Pledged as Collateral, at Fair Value	[2]	2,840	2,839
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	[2]	0	0
Derivative Liability, net of offset		$ 43,974	$ 57,324

[1] Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

[2] Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred

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Investments Of Operating Entities And Consolidated Funds - Operating Entities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income [Member]
Derivative [Line Items]
Realized and unrealized gains/(losses) related to derivatives trading activities	$ (37.8)	$ 35.5

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Investments Of Operating Entities And Consolidated Funds - Operating Entities - Other Investments (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Other investments		$ 237,628	$ 274,111
Portfolio Funds
Investment Holdings [Line Items]
Other investments	[1]	131,766	137,986
Carried interest
Investment Holdings [Line Items]
Other investments	[1]	70,281	88,925
Equity Method Investments
Investment Holdings [Line Items]
Other investments	[1]	$ 35,581	$ 47,200

[1] In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

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Investments Of Operating Entities And Consolidated Funds - Operating Entities - Portfolio Funds (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Other investments		$ 237,628	$ 274,111
Portfolio Funds
Investment Holdings [Line Items]
Other investments	[1]	131,766	137,986
Healthcare Royalty Partners | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[2],[3]	791	832
Healthcare Royalty Partners II | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[2],[3]	1,241	1,259
Eclipse Ventures Fund I, L.P. | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[4]	6,348	5,829
Eclipse Venture Fund II, L.P. | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[4]	2,359	2,354
Eclipse Continuity Fund I, L.P. | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[4]	1,827	1,641
Starboard Value and Opportunity Fund LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[5]	$ 48,246	49,252
Required notice period, withdrawal		90 days
Starboard Value and Opportunity Fund Ltd | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[5]	$ 2,675	2,732
Lagunita Biosciences, LLC | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[6]	5,227	5,671
Starboard Leaders Fund LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[7]	$ 2,826	2,823
Unfunded Commitment cancellation		30 days
Formation 8 Partners Fund I LP | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[8]	$ 19,949	20,992
BDC Fund I Coinvest 1, L.P. | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[9]	1,250	1,250
Difesa Partners LP | Portfolio Funds
Investment Holdings [Line Items]
Other investments	[10]	971	1,017
Cowen Sustainable Investments I LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[11]	12,879	13,102
Cowen Healthcare Investments II LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[11]	9,524	13,055
Cowen Healthcare Investments III LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[11]	6,847	8,426
Cowen Healthcare Investments IV LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[11]	1,987	1,071
Elipse SPV I,LP | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[12]	1,445	1,445
Triartisan ES Partners, LLC | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[13]	1,805	1,805
Triartisan PFC Partners, LLC | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[14]	1,177	1,112
Ramius Merger Fund LLC | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[15]	1,760	1,692
Other Private Investment | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[16]	294	303
Other Funds | Portfolio Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[17]	$ 338	$ 323

[1] In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

[2] HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis.

[3] These portfolio funds are affiliates of the Company.

[4] Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated.

[5] Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice.

[6] Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

[7] Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution.

[8] Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.

[9] BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated.

[10] Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.

[11] Cowen Sustainable Investments I LP, Cowen Healthcare Investments II LP, Cowen Healthcare Investments III LP and Cowen Healthcare Investments IV LP are private equity funds.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights

[12] Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects.  Distributions will be made when the underlying investments are liquidated.

[13] TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated.

[14] TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated.

[15] Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice.

[16] Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy.

[17] The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Carried Interest (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Other investments		$ 237,628	$ 274,111
Carried interest
Investment Holdings [Line Items]
Other investments	[1]	70,281	88,925
Cowen Healthcare Investments II LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		13,886	23,327
Cowen Healthcare Investments III LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		11,510	18,523
Cowen Sustainable Investments I LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		6,725	7,436
Cowen Sustainable Investments Offshore I LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		8,114	9,196
CSI I Prodigy Co-Investment LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		2,241	2,436
CSI PRTA Co-Investment LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		8,682	9,535
Triartisan TGIF Partners LLC | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		4,279	4,047
Triartisan ES Partners, LLC | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		3,389	3,401
Triartisan PFC Partners, LLC | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		10,408	9,394
Ramius Multi-Strategy Fund LP | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		555	587
Ramius Merger Fund LLC | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		368	861
RCG IO Renergys Sarl | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		124	136
Other Funds | Carried interest | Affiliated Entity
Investment Holdings [Line Items]
Other investments		$ 0	$ 46

[1] In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Equity Method Investment - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Equity Method Investment, Other than Temporary Impairment	$ 0	$ 0
Net gains (losses) on other investments	$ 5,600,000	$ 12,600,000

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Net gains (losses) on other investments	$ 5,600	$ 12,600
Equity method investments	35,581		$ 47,200
Starboard Value LP
Schedule of Equity Method Investments [Line Items]
Equity method investments	25,741		36,889
Healthcare Royalty GP III, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	1,830		1,957
Healthcare Royalty GP, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	1,595		1,451
Healthcare Royalty GP II, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	210		213
Healthcare Royalty GP IV, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	1,618		1,716
RCG Longview Debt Fund IV Management, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	331		331
HCR Overflow Fund GP, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	774		839
HCRP MGS Account Management, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	114		598
HCR Stafford Fund GP, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	3,119		2,955
Other
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 249		$ 251

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Sold, Not Yet Purchased (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	$ 974,867,000	$ 1,201,448,000
Common Stock
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	956,228,000	1,192,396,000
Corporate Bonds
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	1,349,000	37,000
Preferred Stock
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	17,278,000	9,009,000
Warrants and Rights
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	$ 12,000	$ 6,000

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Sold/Purchased Under Agreements To Repurchase/Resell And Securities Lending And Borrowing Transactions (Details) - USD ($)		Mar. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Securities borrowed		$ 1,761,146,000	$ 1,704,603,000
Securities Borrowed, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	[1]	0	0
Securities Borrowed		1,761,146,000	1,704,603,000
Securities borrowed, additional amounts, asset		0	0
Securities Borrowed, Not Offset, Policy Election Deduction		1,661,310,000	1,652,007,000
Securities Borrowed, Collateral, Obligation to Return Cash	[2]	0	0
Securities Borrowed, Amount Offset Against Collateral		99,836,000	52,596,000
Securities Loaned		1,735,852,000	1,586,572,000
Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	[1]	0	0
Securities Loaned, Gross amounts recognized		1,735,852,000	1,586,572,000
Securities Loaned, Additional Amounts Available		0	0
Securities Loaned, Not Offset, Policy Election Deduction		1,706,171,000	1,592,140,000
Securities Loaned, Collateral, Right to Reclaim Cash	[2]	0	0
Securities Loaned, Amount Offset Against Collateral		29,681,000	(5,568,000)
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement	[1]	0	0
Securities Sold under Agreements to Repurchase		229,192,000	63,469,000
Securities sold under agreements to repurchase, additional amounts		0	0
Securities sold under agreements to repurchase, Fair value		249,116,000	74,443,000
Securities borrowed, cash collateral pledged		0
Securities Loaned, Net amounts		(19,924,000)	(10,974,000)
Securities Purchased under Agreements to Resell		19,621,000	0
Securities Sold under Agreements to Repurchase, Gross		0
Securities purchased under agreements to resell, additional amounts		0
Securities Purchased under Agreements to Resell, Fair Value of Collateral		21,035,000
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Securities		(1,414,000)
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash	[2]	$ 0	$ 0

[1] Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

[2] Includes the amount of cash collateral held/posted.

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Gross Obligations For Securities Loaned And Securities Sold Under Agreements To Repurchase (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	$ 1,735,852,000	$ 1,586,572,000
Securities Purchased under Agreements to Resell	19,621,000	0
Securities sold, not yet purchased, at fair value	974,867,000	1,201,448,000
Corporate Bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	7,274,000	15,737,000
Securities Purchased under Agreements to Resell	19,621,000
Securities sold, not yet purchased, at fair value	186,119,000
Corporate Bonds | Open and Overnight
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	7,274,000	15,737,000
Securities Purchased under Agreements to Resell	19,621,000
Securities sold, not yet purchased, at fair value	186,119,000
Corporate Bonds | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Securities Purchased under Agreements to Resell	0
Securities sold, not yet purchased, at fair value	0
Corporate Bonds | 31 - 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Securities Purchased under Agreements to Resell	0
Securities sold, not yet purchased, at fair value	0
Corporate Bonds | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Securities Purchased under Agreements to Resell	0
Securities sold, not yet purchased, at fair value	0
Common Stock
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	1,728,578,000	1,570,835,000
Securities sold, not yet purchased, at fair value	43,073,000	63,469,000
Common Stock | Open and Overnight
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	1,728,578,000	1,570,835,000
Securities sold, not yet purchased, at fair value	0	0
Common Stock | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Securities sold, not yet purchased, at fair value	43,073,000	20,906,000
Common Stock | 31 - 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Securities sold, not yet purchased, at fair value	0	42,563,000
Common Stock | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Securities sold, not yet purchased, at fair value	$ 0	$ 0

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Investments of Operating Entities and Consolidated Funds - Operating Entities - Variable Interest Entities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Assets	$ 8,426,027	$ 8,748,814
Liabilities	7,094,554	7,452,460
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	9,100,000	9,700,000
Liabilities	692,400	744,500
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure	155,100	165,500
Maximum exposure regarding nonconsolidated variable interest entities	$ 224,700	$ 233,600

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Investments Of Operating Entities And Consolidated Funds - Consolidated Funds - Other Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Portfolio Funds, Consolidated Funds	$ 97,182	$ 99,067
Enterprise LP
Investment Holdings [Line Items]
Portfolio Funds, Consolidated Funds	$ 97,182	$ 99,067

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Investments Of Operating Entities And Consolidated Funds - Consolidated Funds - Indirect Concentration of the Underlying Investments Held by Consolidated Funds (Details) - Equity Securities - Linkem - ITALY - Wireless Broadband - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investment Holdings [Line Items]
Percentage of Stockholders' Equity	7.87%	8.22%
Market Value	$ 81,498	$ 83,537

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Fair Value Measurements for Operating Entities and Consolidated Funds - Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands		Mar. 31, 2022		Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		$ 342,712		$ 286,135
Other investments		237,628		274,111
Other Investments, Consolidated Funds		97,182		99,067
Investments		3,441,036		3,320,055
Securities sold, not yet purchased, at fair value		974,867		1,201,448
Securities sold, not yet purchased, at fair value		974,867		1,201,448
Payable for derivative contracts, at fair value		46,814		60,163
Quarton
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low		12,500		10,100
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		14,900		25,000
Portico
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low		0		0
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		58,000		58,000
Equity Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		388,875		305,370
Payable for derivative contracts, at fair value		152,265		114,689
Options (held long)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value	[1]	49,801		61,219
Futures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		53		266
Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value	[2]	19,839		1,208
Portfolio Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	[3]	131,766		137,986
Other Investments, Consolidated Funds	[3]	97,182		99,067
Carried interest
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	[3]	70,281		88,925
Equity Method Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	[3]	35,581		47,200
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring		3,106,226		2,946,877
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		1,079,020		1,323,834
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring		2,450,360		2,516,383
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		898,163		1,234,450
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring		530,395		329,735
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		252,241		116,072
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring		241,383		182,501
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		60,418		65,642
Fair Value, Measurements, Recurring | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		956,228		1,192,396
Fair Value, Measurements, Recurring | Common Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		858,685		1,192,396
Fair Value, Measurements, Recurring | Common Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		97,543		0
Fair Value, Measurements, Recurring | Common Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		1,349		37
Fair Value, Measurements, Recurring | Corporate Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Corporate Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		1,349		37
Fair Value, Measurements, Recurring | Corporate Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		17,278		9,009
Fair Value, Measurements, Recurring | Preferred Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		17,278		9,009
Fair Value, Measurements, Recurring | Preferred Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Preferred Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Warrants and Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		12		6
Fair Value, Measurements, Recurring | Warrants and Rights | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		12		6
Fair Value, Measurements, Recurring | Warrants and Rights | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Warrants and Rights | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0		0
Fair Value, Measurements, Recurring | Contingent liability payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Payable		57,339	[4]	62,223
Fair Value, Measurements, Recurring | Contingent liability payable | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Payable		0	[4]	0
Fair Value, Measurements, Recurring | Contingent liability payable | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Payable		0	[4]	0
Fair Value, Measurements, Recurring | Contingent liability payable | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Payable		57,339	[4]	62,223
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		1,084		1,346
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		1,084		1,346
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Equity Swaps | Derivative Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		20,463		22,359
Fair Value, Measurements, Recurring | Equity Swaps | Derivative Liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Equity Swaps | Derivative Liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		152,265		114,689
Fair Value, Measurements, Recurring | Equity Swaps | Derivative Liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Derivative Liability, Fair Value, Amount Offset Against Collateral	[5]	(131,802)		(92,330)
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		25,214		36,192
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		22,135		32,773
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		3,079		3,419
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		53		266
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		53		266
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payable for derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		11,992		16,002
Fair Value, Measurements, Recurring | Government Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		11,992		16,002
Fair Value, Measurements, Recurring | Government Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Government Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		190,184		134,930
Fair Value, Measurements, Recurring | Preferred Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		20,483		12,299
Fair Value, Measurements, Recurring | Preferred Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		0
Fair Value, Measurements, Recurring | Preferred Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		169,701		122,631
Fair Value, Measurements, Recurring | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		2,348,243		2,428,820
Fair Value, Measurements, Recurring | Common Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		2,304,895		2,396,041
Fair Value, Measurements, Recurring | Common Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		3,517		121
Fair Value, Measurements, Recurring | Common Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		39,831		32,658
Fair Value, Measurements, Recurring | Convertible Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		5,250		5,250
Fair Value, Measurements, Recurring | Convertible Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Convertible Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Convertible Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		5,250		5,250
Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		146,998		21,468
Fair Value, Measurements, Recurring | Corporate Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		28,892		0
Fair Value, Measurements, Recurring | Corporate Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		115,680		19,049
Fair Value, Measurements, Recurring | Corporate Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		2,426		2,419
Fair Value, Measurements, Recurring | Trade Claims
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		4,840		3,496
Fair Value, Measurements, Recurring | Trade Claims | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Trade Claims | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Trade Claims | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		4,840		3,496
Fair Value, Measurements, Recurring | Term Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		2,375		3,907
Fair Value, Measurements, Recurring | Term Loans | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Term Loans | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		2,375		3,907
Fair Value, Measurements, Recurring | Term Loans | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Private Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		550		410
Fair Value, Measurements, Recurring | Private Investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		0
Fair Value, Measurements, Recurring | Private Investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		0
Fair Value, Measurements, Recurring | Private Investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		550		410
Fair Value, Measurements, Recurring | Warrants and Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		53,082		46,459
Fair Value, Measurements, Recurring | Warrants and Rights | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		34,525		31,056
Fair Value, Measurements, Recurring | Warrants and Rights | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		0
Fair Value, Measurements, Recurring | Warrants and Rights | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		18,557		15,403
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		109		80
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		109		80
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		272,963		223,628
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swaps | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swaps | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		388,875		305,370
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swaps | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		0		0
Derivative Asset, Fair Value, Amount Offset Against Collateral	[5]	(115,912)		(81,742)
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		49,801		61,219
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		49,573		60,985
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		228		234
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		19,839		1,208
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		0		0
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		19,839		1,208
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivable on derivative contracts, at fair value		$ 0		$ 0

[1] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

[2] Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 12

[3] In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

[4] In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the acquisition of Quarton International AG "Quarton"), the fourth quarter of 2020 (the acquisition of MHT Partners, LP "MHT") and the fourth quarter of 2021 (the acquisition of Portico Capital Advisors "Portico"), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $12.5 million to $14.9 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million.

[5] Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.

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Fair Value Measurements for Operating Entities and Consolidated Funds - Unobservable Input Roll Forward (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021		Dec. 31, 2021	Dec. 31, 2020
Preferred Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		$ 169,701	$ 56,477		$ 122,631	$ 59,967
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		3,441	1,859
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		1,100	4,651
Realized and unrealized gains (losses), asset		44,729	(698)
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	44,729	(698)
Common Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		39,831	22,706		32,658	23,786
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	5,353	[2]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		2,018	3,226
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		33	1,387
Realized and unrealized gains (losses), asset		5,188	2,434
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	5,188	1,679
Convertible Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		5,250	3,137		5,250	6,040
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		0	1,050
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		0	3,930
Realized and unrealized gains (losses), asset		0	(23)
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	0	(23)
Corporate Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		2,426	136		2,419	135
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		0	70
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		0	49
Realized and unrealized gains (losses), asset		7	(20)
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	7	(49)
Options (held long)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		228	241		234	251
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		0	0
Realized and unrealized gains (losses), asset		(6)	(10)
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	(6)	(10)
Warrants and Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		18,557	7,924		15,403	6,547
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		414	3,406
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		0	1,206
Realized and unrealized gains (losses), asset		2,740	(823)
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	2,740	(895)
Trade Claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		4,840	5,905		3,496	8,713
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		1,666	1,378
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		615	4,216
Realized and unrealized gains (losses), asset		293	30
Change in Unrealized Gain (Loss), instruments still held, asset	[1]	293	(1,021)
Term Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value			12,424			12,623
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases			322
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales			0
Realized and unrealized gains (losses), asset			(521)
Change in Unrealized Gain (Loss), instruments still held, asset			(521)
Private Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		550	1,085		410	642
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		353	443
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		250	0
Realized and unrealized gains (losses), asset		37	0
Change in Unrealized Gain (Loss), instruments still held, asset		37	0
Consolidated Funds | Common Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value			2,951			2,951
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales			0
Realized and unrealized gains (losses), asset			0
Change in Unrealized Gain (Loss), instruments still held, asset	[1]		0
Consolidated Funds | Warrants and Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value			5,329			5,806
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales			670
Realized and unrealized gains (losses), asset			193
Change in Unrealized Gain (Loss), instruments still held, asset	[1]		(477)
Options (held short)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Liability Value		3,079	3,297		3,419	3,915
Liability, Transfers In		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3		0	0
Liability, Purchases		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings		340	618
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	[1]	(340)	(618)
Contingent liability payable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Liability Value		57,339	19,579		$ 62,223	37,952
Liability, Transfers In		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3		0	0
Liability, Purchases		0	(11,312)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales		10,076	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings		(5,192)	7,061
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	[1]	$ 5,192	(7,061)
Corporate Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value			415
Balance Liability Value						704
Liability, Transfers In			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3			0
Liability, Purchases			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales			(289)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings			0
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	[1]		0
Government Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value			522
Balance Liability Value						$ 1,500
Liability, Transfers In			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3			0
Liability, Purchases			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales			(1,278)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings			300
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	[1]		$ 87

[1] Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying condensed consolidated statements of operations

[2] The entity in which the Company is invested completed an initial public offering

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Fair Value Measurements for Operating Entities and Consolidated Funds - Fair Value Inputs, Unobservable Inputs, Quantitative Information (Details) $ in Thousands		Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) times	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Other investments		$ 237,628	$ 274,111
Quarton
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low		12,500	10,100
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		14,900	25,000
Portico
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low		0	0
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		58,000	58,000
Contingent liability payable
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value		57,339	62,223	$ 19,579	$ 37,952
Options (held long)
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		228	234	241	251
Trade Claims
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		4,840	3,496	5,905	8,713
Warrants and Rights
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		18,557	15,403	7,924	6,547
Corporate Bonds
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		2,426	2,419	$ 136	$ 135
Level 3
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		241,383	182,501
Balance Liability Value		$ 60,418	$ 65,642
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.086	0.07
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.16	0.15
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.123	0.12
Level 3 | Contingent liability payable | Discount Cash Flow and Monte Carlo Technique
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value		$ 57,339	$ 62,223
Level 3 | Contingent liability payable | Volatility | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.20	0.20
Level 3 | Contingent liability payable | Volatility | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.22	0.24
Level 3 | Contingent liability payable | Volatility | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.209	0.22
Level 3 | Common and Preferred Stock | Discounted Cash Flow and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 75,253	$ 76,491
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.125	0.125
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.20	0.20
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.13	0.13
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		6.25	6.25
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		6.75	6.75
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		6.5	6.5
Level 3 | Options (held long) | Discounted Cash Flow and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 228	$ 234
Level 3 | Options (held long) | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.125	0.125
Level 3 | Options (held long) | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.135	0.135
Level 3 | Options (held long) | Valuation Technique, Discounted Cash Flow | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.13	0.13
Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 2,138	$ 2,376
Level 3 | Warrants and Rights | Discounted Cash Flow and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 5,986	$ 4,483
Level 3 | Warrants and Rights | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.125	0.125
Level 3 | Warrants and Rights | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.135	0.135
Level 3 | Warrants and Rights | Valuation Technique, Discounted Cash Flow | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.130	0.13
Level 3 | Warrants and Rights | Valuation, Market Approach | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.0625	0.0625
Level 3 | Warrants and Rights | Valuation, Market Approach | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.0675	0.0675
Level 3 | Warrants and Rights | Valuation, Market Approach | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.065	0.065
Level 3 | Warrants and Rights | Black Scholes Model | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.73	0.90
Level 3 | Warrants and Rights | Black Scholes Model | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		1.03	1
Level 3 | Warrants and Rights | Black Scholes Model | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.972	0.95
Level 3 | Other Investments
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value	[1]	$ 157,778	$ 98,917
Level 3 | Options (held long) | Valuation, Market Approach | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		6.25	6.25
Level 3 | Options (held long) | Valuation, Market Approach | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		6.75	6.75
Level 3 | Options (held long) | Valuation, Market Approach | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		6.5	6.5
Level 3 | Options (held short) | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.0229
Level 3 | Options (held short) | Valuation Technique, Discounted Cash Flow | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.0229
Fair Value, Measurements, Recurring | Level 3 | Options (held short) | Derivative Liabilities | Valuation Technique, Option Pricing Model
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value		$ 3,079	$ 3,419
Discount rate | Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.50	0.40
Discount rate | Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.50	0.40
Volatility | Level 3 | Options (held short) | Valuation Technique, Option Pricing Model
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.35	0.35
Volatility | Level 3 | Options (held short) | Valuation Technique, Option Pricing Model | Weighted Average
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input		0.35	0.35

[1] The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions.

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Fair Value Measurements for Operating Entities and Consolidated Funds - Carrying Value Disclosures (Details) - USD ($)		Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Cash and cash equivalents		$ 512,978,000	$ 914,343,000	$ 1,147,531,000
Cash collateral pledged		52,865,000	47,494,000	110,303,000
Segregated Cash		220,882,000	194,701,000	168,942,000
Securities Purchased under Agreements to Resell		19,621,000	0
Securities borrowed		1,761,146,000	1,704,603,000
Loans Receivable, Net		5,041,000	4,858,000
Cash and cash equivalents, Consolidated Funds		23,000	296,000	$ 935,000
Securities Sold under Agreements to Repurchase		229,192,000	63,469,000
Securities sold under agreements to repurchase, Fair value		249,116,000	74,443,000
Securities Loaned		1,735,852,000	1,586,572,000
Long-term Debt	[1]	625,766,000	623,371,000
Notes Payable, Other Payables
Unamortized discount		2,700,000	2,800,000
Debt Instrument, Unamortized Premium		200,000	300,000
Level 1
Cash and cash equivalents, Fair Value		512,978,000	914,343,000
Segregated cash fair value disclosures		220,882,000	194,701,000
Cash and cash equivalents, Consolidated Funds, Fair Value		23,000	296,000
Level 2
Cash collateral pledged, Fair Value		52,865,000	47,494,000
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure		19,621,000	0
Securities Borrowed, Fair Value Disclosure		1,761,146,000	1,704,603,000
Securities sold under agreements to repurchase, Fair value		229,192,000	63,469,000
Securities loaned, fair value disclosure		1,735,852,000	1,586,572,000
Notes payable and other debt, Fair Value	[2]	644,238,000	655,229,000
Level 3
Loans Receivable, Fair Value Disclosure	[3]	$ 5,041,000	$ 4,858,000

[1] The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.7 million and $0.2 million as of March 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.

[2] Notes payable and other debt are based on the last broker quote available.

[3] The fair market value of level 3 loans is calculated using discounted cash flows where applicable.

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Deposits with Clearing Organizations, Brokers and Banks (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deposits with Clearing Organizations, Brokers and Banks [Abstract]
Deposits with clearing organizations, brokers and banks	$ 105,854	$ 111,857

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Receivables from and payables to brokers, dealers and clearing organizations (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Brokers and Dealers [Abstract]
Receivable from Broker-dealers	$ 1,342,242	$ 1,533,713
Securities Failed-to-Deliver	91,561	17,851
Clearing organizations	44,450	56,075
Securities borrowed/loaned interest receivable	9,658	6,708
Receivable from brokers, dealers and clearing organizations	1,487,911	1,614,347
Payable to Broker-Dealers	419,423	483,112
Securities Failed-to-Receive	95,201	57,894
Clearing organizations	62,804	37,925
Securities loaned interest payable	10,112	7,622
Payables to brokers, dealers and clearing organizations	$ 587,540	$ 586,553

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Receivable from and Payable to Customers (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Receivables and Payable to Customers [Abstract]
Receivable from customers	$ 159,625	$ 159,418
Payable to customers	$ 2,243,654	$ 2,432,612

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Commission Management Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commission Management Payable [Abstract]
Commission management payable	$ 126,968	$ 102,990

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Convertible Debt and Notes Payable - Outstanding Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Note payable	$ 174,139	$ 174,015
Term Loan	434,319	435,147
Other Notes Payable	$ 15,857	12,537
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Outstanding debt
Finance Lease, Liability	$ 1,451	1,672
Outstanding debt	$ 625,766	$ 623,371

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Convertible Debt and Notes Payable - Convertible Debt (Details) - USD ($)	3 Months Ended			6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2021	Jun. 24, 2021	Dec. 14, 2017
Debt and Capital Lease Obligations [Line Items]
Gain/(loss) on debt extinguishment	$ 0	$ (4,538,000)
Amortization of debt discount (premium)	$ 77,000	776,000
2022 convertible note | Convertible Debt
Debt and Capital Lease Obligations [Line Items]
Debt Instrument, Face Amount						$ 135,000,000
Debt Instrument, Convertible, Conversion Price						$ 17.375
Unamortized discount					$ 5,100,000	$ 23,400,000
Debt Instrument, Repurchased Face Amount			$ 46,900,000		88,100,000
Extinguishment of Debt, Amount			70,500,000
Write off of pro rate unamortized discount while extinguishing debt			3,600,000
Write off of Deferred Debt Issuance Cost			400,000
Equity portion of convertible note extinguishment			29,600,000
Gain/(loss) on debt extinguishment			$ 2,700,000
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger				33.35%
Debt Issuance Costs, Net					$ 500,000
Amortization of debt discount (premium)		800,000
Debt Instrument, Interest Rate, Effective Percentage						7.13%
Debt Issuance Costs, Gross						$ 2,200,000
Interest on Convertible Debt, Net of Tax		$ 700,000
2022 convertible note | Convertible Debt | Common Stock Class A
Debt and Capital Lease Obligations [Line Items]
Share settlement of convertible notes (in shares)				2,938,841

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Convertible Debt and Notes Payable - Notes Payable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 24, 2021	Sep. 30, 2020	Sep. 30, 2019	May 07, 2019	Jun. 11, 2018	Dec. 14, 2017	Dec. 08, 2017
Debt and Capital Lease Obligations [Line Items]
Gain/(loss) on debt extinguishment	$ 0	$ (4,538,000)
2024 Notes | Senior Notes
Debt and Capital Lease Obligations [Line Items]
Debt Instrument, Face Amount						$ 53,000,000
Interest rate						7.25%
Debt Instrument, Additional amount issued					$ 25,000,000
Debt Instrument, Unamortized Premium					500,000
Interest Expense, Debt, Excluding Amortization	1,400,000	1,400,000
Debt Issuance Costs, Gross					$ 600,000	$ 1,500,000
2033 Notes | Senior Notes
Debt and Capital Lease Obligations [Line Items]
Debt Instrument, Face Amount				$ 10,000,000			$ 90,000,000
Interest rate							7.75%
Interest Expense, Debt, Excluding Amortization	1,900,000	1,900,000
Debt Issuance Costs, Gross							$ 3,600,000
2027 Notes | Senior Notes
Debt and Capital Lease Obligations [Line Items]
Debt Instrument, Face Amount			$ 138,000,000					$ 18,000,000	$ 120,000,000
Interest rate									7.35%
Interest Expense, Debt, Excluding Amortization		$ 2,500,000
Debt Issuance Costs, Gross									$ 5,000,000
Gain/(loss) on debt extinguishment	$ 4,400,000

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Convertible Debt and Notes Payable - Term Loans, Other Notes Payable and Revolver (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jan. 31, 2022	Dec. 31, 2021	Dec. 15, 2021	Mar. 24, 2021	Dec. 31, 2020	Sep. 30, 2020	Nov. 01, 2019
Debt and Capital Lease Obligations [Line Items]
Other Notes Payable	$ 15,857,000				$ 12,537,000
The Military Mutual Ltd [Member]
Debt and Capital Lease Obligations [Line Items]
Other Receivables	$ 28,400,000
2028 Term Loan | Term Loan
Debt and Capital Lease Obligations [Line Items]
Debt Instrument, Original Amount							$ 300,000,000
Debt Instrument, Additional amount issued						$ 150,000,000
Debt Instrument, Face Amount						450,000,000
Interest rate	3.25%
Debt Instrument, Basis Spread on Variable Rate	2.25%
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	1.00%
Interest Expense, Debt, Excluding Amortization	$ 4,500,000		$ 200,000
Debt Instrument, Interest Rate, Effective Percentage							4.46%
Unamortized discount						1,500,000	$ 1,500,000
Debt Instrument, principal amount outstanding	445,500,000
Debt Issuance Costs, Gross						$ 2,700,000	$ 6,600,000
Insurance Note
Debt and Capital Lease Obligations [Line Items]
Interest rate				2.01%
Debt Instrument, Periodic Payment, Principal	400,000
Debt Instrument, principal amount outstanding	$ 3,200,000
Other Notes Payable				$ 4,000,000
Purple Protect Asset S-91
Debt and Capital Lease Obligations [Line Items]
Interest rate	4.00%	5.80%						6.07%
Interest Expense, Debt, Excluding Amortization	$ 500,000		$ 1,100,000
Other Notes Payable									$ 72,000,000
Repayments of Other Debt		$ 60,000,000
Debt Issuance Costs, Gross									$ 1,700,000
Corporate Debt
Debt and Capital Lease Obligations [Line Items]
Interest rate	6.00%
Debt Instrument, Periodic Payment, Principal	$ 100,000
Other Long-term Debt	$ 1,500,000									$ 2,600,000

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Convertible Debt and Notes Payable - Finance Lease Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Disclosure [Abstract]
Finance Lease, Right-of-Use Asset, Amortization	$ 324	$ 309
Finance Lease, Interest Expense	20	34
Finance Lease, Interest Payment on Liability	20	34
Finance Lease, Principal Payments	$ 274	$ 332
Finance Lease, Weighted Average Remaining Lease Term	1 year 7 months 17 days	2 years 3 days
Finance Lease, Weighted Average Discount Rate, Percent	4.66%	4.89%

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Convertible Debt and Notes Payable - Scheduled Maturities (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Repayments on long-term and short-term borrowings
Note payable		$ 174,139	$ 174,015
Term Loan		434,319	435,147
Other Notes Payable		15,857	12,537
Future minimum lease payments for finance lease obligations
2022		849
2023		500
2024		100
2025		49
2026		12
Thereafter		0
Subtotal		1,510
Finance Lease, Interest Payment on Liability	[1]	(59)
Finance lease obligations		1,451	$ 1,672
Senior Notes
Repayments on long-term and short-term borrowings
2022		11,468
2023		13,405
2024		88,578
2025		7,750
2026		7,750
Thereafter		150,375
Subtotal		279,326
Long-term Debt and Short-term Borrowings, Amount Representing Interest	[1]	105,187
Note payable		174,139
Term Loan
Repayments on long-term and short-term borrowings
2022		16,733
2023		22,351
2024		22,168
2025		21,986
2026		21,803
Thereafter		445,631
Subtotal		550,672
Long-term Debt and Short-term Borrowings, Amount Representing Interest	[1]	116,353
Term Loan		434,319
Notes Payable, Other Payables
Repayments on long-term and short-term borrowings
2022		3,752
2023		12,593
2024		543
2025		0
2026		0
Thereafter		0
Subtotal		16,888
Long-term Debt and Short-term Borrowings, Amount Representing Interest	[1]	1,031
Other Notes Payable		$ 15,857

[1] Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt.

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Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	May 19, 2015	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock, shares authorized		10,000,000		10,000,000
Preferred stock, par value (in dollars per share)		$ 0.01		$ 0.01
Convertible Preferred Stock, Shares Issued upon Conversion	38.0619
Convertible Preferred Stock, Threshold Percentage of Stock Price Trigger	150.00%
Minimum
Class of Stock [Line Items]
Convertible Preferred Stock, Threshold	20 days
Minimum | Call Option [Member]
Class of Stock [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 26.27
Maximum
Class of Stock [Line Items]
Convertible Preferred Stock, Threshold	30 days
Retained Earnings/(Accumulated deficit)
Class of Stock [Line Items]
Preferred dividends paid		$ 1,698	$ 1,698
Convertible Preferred Stock
Class of Stock [Line Items]
Common stock issuance for purchase of investment	120,750
Preferred Stock, Dividend Rate, Percentage	5.625%
Proceeds from Issuance of Preferred Stock, net of issuance costs	$ 117,200
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	$ 3,600
Preferred Stock, Liquidation Preference Per Share	$ 1,000
Convertible Preferred Stock | Retained Earnings/(Accumulated deficit)
Class of Stock [Line Items]
Preferred dividends paid		$ 1,700	$ 1,700

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Stockholders Equity - (Details)	3 Months Ended				9 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) class $ / shares shares	Jun. 30, 2021 $ / shares	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Jun. 24, 2021 USD ($)	Jun. 26, 2018 USD ($)	Dec. 14, 2017 USD ($)
Equity, Class of Stock [Line Items]
Common stock, shares authorized | shares	125,000,000
Number of classes | class	2
Dividends, Cash	$ 4,111,000		$ 2,777,000
Common Stock, Dividends, Per Share, Declared | $ / shares	$ 0.12	$ 0.08				$ 0.10
Treasury Stock, Cost [Roll Forward]
Treasury stock, cost, beginning of period	$ 547,100,000
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions	12,283,000		$ 6,245,000
Purchase of treasury stock, cost	24,100,000
Treasury stock, cost, end of period	583,500,000					$ 547,100,000
Dividend Paid
Equity, Class of Stock [Line Items]
Dividends, Cash	$ 3,900,000
Treasury Stock
Treasury Stock, Shares [Roll Forward]
Treasury stock, shares, beginning of period | shares	28,047,929
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | shares	374,149
Purchase of treasury stock, shares | shares	798,302
Treasury stock, shares, end of period | shares	29,220,380					28,047,929
Treasury Stock, Cost [Roll Forward]
Treasury stock, cost, beginning of period	$ 547,112,000
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions	12,283,000
Purchase of treasury stock, cost	24,140,000
Treasury stock, cost, end of period	$ 583,535,000					$ 547,112,000
Treasury Stock, Average Cost Per Share [Roll Forward]
Treasury stock, average cost per share, beginning of period, in dollars per share | $ / shares	$ 19.51
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions, Average Cost Per Share | $ / shares	32.83
Purchase of treasury stock, average cost per share, in dollars per share | $ / shares	30.24
Treasury stock, average cost per share, end of period, in dollars per share | $ / shares	$ 19.97					$ 19.51
Additional Paid-in Capital | Convertible Debt
Equity, Class of Stock [Line Items]
Equity portion of convertible note extinguishment					$ 29,600,000
Common Stock Class A
Equity, Class of Stock [Line Items]
Common stock, shares authorized | shares	62,500,000					62,500,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.01					$ 0.01
Treasury Stock, Shares [Roll Forward]
Treasury stock, shares, beginning of period | shares	28,047,929
Treasury stock, shares, end of period | shares	29,220,380					28,047,929
Treasury Stock, Cost [Roll Forward]
Treasury stock, cost, beginning of period	$ 547,112,000
Treasury stock, cost, end of period	$ 583,535,000					$ 547,112,000
Common Stock Class B
Equity, Class of Stock [Line Items]
Common stock, shares authorized | shares	62,500,000					62,500,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.01					$ 0.01
Convertible Debt | 2022 convertible note
Equity, Class of Stock [Line Items]
Unamortized discount							$ 5,100,000		$ 23,400,000
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value								$ 29,000,000
Equity portion of convertible note extinguishment				$ 29,600,000

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Non-Controlling Interests in Consolidated Subsidiaries and Funds (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Noncontrolling Interest [Roll Forward]
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	$ 20,131	$ 4,562
Permanent Equity	1,210,723	1,239,980	$ 1,175,604
Nonredeemable Noncontrolling Interests
Noncontrolling Interest [Roll Forward]
Capital contributions	1,610	22,515
Capital withdrawals	(5,901)	(18,773)
Deconsolidation of entity	0	(74,813)
Permanent Equity	175,575	133,115	$ 159,735	$ 199,624
Operating Entities | Nonredeemable Noncontrolling Interests
Noncontrolling Interest [Roll Forward]
Beginning balance	126,105	83,818
Capital contributions	1,610	3,498
Capital withdrawals	(5,901)	(2,348)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,858	7,661
Ending balance	142,672	92,629
Consolidated Funds | Nonredeemable Noncontrolling Interests
Noncontrolling Interest [Roll Forward]
Beginning balance	33,630	115,806
Capital contributions	0	19,017
Capital withdrawals	0	(16,425)
Deconsolidation of entity	0	(74,813)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	(727)	(3,099)
Ending balance	$ 32,903	$ 40,486

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income / (Loss) [Abstract]
Beginning balance	$ (2)	$ (7)
Foreign currency translation	2	4
Ending balance	$ 0	$ (3)

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Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 285,040	$ 503,349
Management Fees	16,769	25,742
Incentive income	633	2,258
Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	284,826	503,106
Management Fees	16,555	25,499
Incentive income	633	2,258
Asset Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	214	243
Management Fees	214	243
Incentive income	0	0
Underwriting fees | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	17,583	154,304
Strategic/financial advisory fees | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	58,789	73,555
Placement and sales agent fees | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	22,584	72,544
Expense reimbursements from clients | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	2,586	4,431
Investment banking revenue | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	101,542	304,834
Commissions | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	152,483	159,681
Trade conversion | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	7,410	6,241
Equity and credit research fees | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	6,203	4,593
Brokerage | Operating Company
Segment Reporting Information [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 166,096	$ 170,515

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Insurance and reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Incurred and paid claims	$ 4,078,000	$ 4,648,000
Change in claims outstanding and claims IBNR	(535,000)	(695,000)
Total collateral posted for reinsurance business	61,400		$ 120,500
Collateral released related to reinsurance business	1,400
Cash collateral pledged	$ 52,865	110,303	47,494
Cowen Insurance Co and Cowen Re
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Historical Average Claims Ratios, Period, Maximum	10 years
Cash and Cash Equivalents
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Total collateral posted for reinsurance business	$ 49,400		106,800
US Treasury Bond Securities
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Total collateral posted for reinsurance business	12,000		13,700
Outward insurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Incurred and paid claims	1,067,000	744,000
Change in claims outstanding and claims IBNR	54,000	(136,000)
Inward Reinsurance
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Incurred and paid claims	3,011,000	3,904,000
Change in claims outstanding and claims IBNR	(589,000)	$ (559,000)
Collateral Reinsurance Agreement
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Cash collateral pledged	49,500		$ 44,100
Collateral Reinsurance Agreement, Released September 30, 2023
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Cash collateral pledged	40,500
Collateral Reinsurance Agreement, Released March 31, 2024
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Cash collateral pledged	$ 20,900

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Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Share-Based Payments and Deferred Compensation Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-compensation expense recognized in connection with compensation plan	$ 21.6	$ 28.2
Tax benefit of stock-compensation expense recognized in connection with compensation plan	$ 7.0	$ 10.8
Equity Plans | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance	600,000
Equity Plans | Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	2 years
Equity Plans | Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	5 years
Equity Plans | Employee Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	2 years
Equity Plans | Employee Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	5 years
Expiration period	7 years
2022 Equity Unit Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-compensation expense recognized in connection with compensation plan	$ 0.3
Tax benefit of stock-compensation expense recognized in connection with compensation plan	$ 0.1
Deferred Cash Award | Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	4 years
Deferred cash awards granted	$ 49.1
Deferred cash award, interest rate	0.70%
Deferred cash awards, unrecognized compensation expense	$ 89.8

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Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Restricted Stock Units Rollforward (Details) - Equity Plans - Restricted Shares and Restricted Stock Units (RSUs) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Nonvested Restricted Shares and Restricted Stock Units
Balance outstanding, beginning of period, shares	4,595,342	5,450,191
Granted, shares	1,919,504	1,593,941
Vested, shares	(224,073)	(291,062)
Canceled, shares	0	0
Forfeited, shares	(16,526)	(8,134)
Balance outstanding, end of period, shares	6,274,247	6,744,936
Weighted-Average Grant Date Fair Value
Balance outstanding, beginning of period, in dollars per share	$ 24.33	$ 17.56
Granted, in dollars per share	31.98	34.85
Vested, in dollars per share	19.32	16.11
Canceled, in dollars per share	0	0
Forfeited, in dollars per share	20.51	20.22
Balance outstanding, end of period, in dollars per share	$ 26.86	$ 21.71

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Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Performance Awards Narrative (Details) - USD ($) $ in Millions	1 Months Ended				3 Months Ended
	Feb. 28, 2021	Jul. 30, 2020	Apr. 30, 2019	Mar. 31, 2016	Mar. 31, 2022	Mar. 31, 2021
Performance based restricted stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of RSU's earned					0.00%
Performance based restricted stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of RSU's earned					240.00%
Equity Plans | Performance based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	1,974,217	1,974,217	1,974,217	1,974,217
Vested, shares					712,652
Forfeited, shares					320,681
Equity Plans | Performance based restricted stock | March 2016 Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, shares					233,333
Performance awards attained					420,000
Equity Plans | Performance based restricted stock | April 2019 Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, shares					333,333
Performance awards attained					666,666
Equity Plans | Performance based restricted stock | Share Distribution | March 2016 Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards attained					350,000
Equity Plans | Performance based restricted stock | Share Distribution | April 2019 Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards attained					528,800
Equity Plans | Performance based restricted stock | Cash and Cash Equivalents | March 2016 Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards attained					70,000
Equity Plans | Performance based restricted stock | Cash and Cash Equivalents | April 2019 Performance Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards attained					137,866
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares					1,919,504	1,593,941
Vested, shares					224,073	291,062
Forfeited, shares					16,526	8,134
Unrecognized compensation expense					$ 116.0
Period for recognition					2 years 1 month 20 days

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Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Restricted Shares and Other Share Based Payments Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 01, 2022	Dec. 31, 2021
Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 21.6	$ 28.2
Share-based Payment Arrangement, Expense, Tax Benefit	$ 7.0	$ 10.8
Equity Plans | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number				972,732
Equity Plans | Restricted Stock Units (RSUs) | Non-employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	246,333			259,536
2022 Equity Unit Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 1.3
Granted, shares	1,487,500
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,000,000
Share-based Payment Arrangement, Expense	$ 0.3
Share-based Payment Arrangement, Expense, Tax Benefit	$ 0.1

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Income Taxes (Details) - Quarterly	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate, percent	17.74%	26.36%
Statutory rate, percent	21.00%	21.00%

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Computation of earnings per share:
Net income (loss)	$ 55,147	$ 152,066
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	20,131	4,562
Net income (loss) attributable to Cowen Inc.	35,016	147,504
Preferred stock dividends	1,698	1,698
Net income (loss) attributable to Cowen Inc. common stockholders	33,318	145,806
Dilutive Securities, Effect on Basic Earnings Per Share	41	0
Net Income (Loss) Available to Common Stockholders, Diluted	$ 33,359	$ 145,806
Shares for basic and diluted calculations:
Weighted average shares used in basic computation, shares	28,386,000	27,359,000
Weighted average shares used in diluted computation, shares	31,772,000	33,565,000
Earnings (loss) per share:
Earnings Per Share, Basic (in dollars per share)	$ 1.17	$ 5.33
Earnings Per Share, Diluted (in dollars per share)	$ 1.05	$ 4.34
Convertible Debt
Shares for basic and diluted calculations:
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	0	2,659,000
Convertible Preferred Stock
Shares for basic and diluted calculations:
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	708,000	0
Restricted Stock
Shares for basic and diluted calculations:
Shares attributable to share-based payment awards, shares	2,222,000	3,102,000
Restricted Stock | Quarton
Shares for basic and diluted calculations:
Shares attributable to share-based payment awards, shares	82,000	0
Restricted Stock Units (RSUs) | Equity Plans
Shares for basic and diluted calculations:
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number			972,732
Performance based restricted stock
Shares for basic and diluted calculations:
Shares attributable to share-based payment awards, shares	374,000	445,000
Common Stock Class A
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Common stock, shares outstanding, shares	27,614,903		27,778,964
Common stock, restricted shares, shares	246,803
Common Stock Class A | Restricted Stock
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Common stock, shares outstanding, shares	901,374		901,374

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Commitments and Contingencies Operating Lease Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Contractual Commitments, Commitment [Line Items]
Lease cost	$ 6,614	$ 5,770
Variable lease cost	837	906
Sublease income	(155)	(160)
Total lease costs	7,437	6,549
Facility Leases
Contractual Commitments, Commitment [Line Items]
Short-term lease cost	$ 141	$ 33

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Commitments and Contingencies Supplemental Cash Flow Information And Certain Other Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows from operating leases	$ 9,814	$ 6,748
Weighted average remaining lease term - operating leases (in years)	5 years 6 months 14 days	4 years 6 months 21 days
Weighted average discount rate - operating leases	4.13%	4.10%

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Commitments and Contingencies Outstanding Operating Lease Liabilities (Details) - USD ($)		3 Months Ended
		Mar. 31, 2022	Dec. 31, 2021
Future minimum annual lease and service payments
Total lease liability		$ 99,800,000	$ 98,883,000
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability		8,300,000
Equipment Leases
Future minimum annual lease and service payments
2022		366,000
2023		381,000
2024		370,000
2025		370,000
2026		278,000
Thereafter		0
Total operating leases		1,765,000
Less discount		105,000
Less short-term leases		0
Total lease liability		1,660,000
Facility Leases
Future minimum annual lease and service payments
2022	[1],[2]	16,813,000
2023	[1],[2]	25,476,000
2024	[1],[2]	22,965,000
2025	[1],[2]	12,312,000
2026	[1],[2]	8,881,000
Thereafter	[1],[2]	24,969,000
Total operating leases	[1],[2]	111,416,000
Less discount	[1],[2]	13,218,000
Less short-term leases		58,000
Total lease liability	[1],[2]	$ 98,140,000

[1] During the three months ended March 31, 2022, the Company recognized an increase of $8.3 million of operating right-of-use assets and leases liabilities related to facility leases.

[2] The Company has entered into various agreements to sublease certain of its premises.

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Commitments and Contingencies Service Payments (Details) - Service Payments $ in Thousands	Mar. 31, 2022 USD ($)
Other Commitments [Line Items]
2022	$ 22,196
2023	17,544
2024	8,214
2025	3,889
2026	3,253
Thereafter	7,357
Total service payment commitments	$ 62,453

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Commitments and Contingencies Schedules of Unfunded Commitments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Healthcare Royalty Partners | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 6,451	[1]
Healthcare Royalty Partners | Commitment to Invest
Other Commitments [Line Items]
Commitments term	2 years 9 months 18 days
Eclipse Ventures Fund I, L.P. | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 28
Eclipse Ventures Fund I, L.P. | Commitment to Invest
Other Commitments [Line Items]
Commitments term	2 years 9 months 18 days
Eclipse Fund II, L.P. | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 18
Eclipse Fund II, L.P. | Commitment to Invest
Other Commitments [Line Items]
Commitments term	3 years 9 months 18 days
Eclipse Continuity Fund I, L.P. | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 16
Eclipse Continuity Fund I, L.P. | Commitment to Invest
Other Commitments [Line Items]
Commitments term	4 years 9 months 18 days
Cowen Healthcare Investments III LP | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 2,165
Cowen Healthcare Investments III LP | Commitment to Invest
Other Commitments [Line Items]
Commitments term	4 years 9 months 18 days
Cowen Healthcare Investments IV LP | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 5,784
Cowen Healthcare Investments IV LP | Commitment to Invest
Other Commitments [Line Items]
Commitments term	5 years 9 months 18 days
Cowen Sustainable Investments I LP | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 14,643
Cowen Sustainable Investments I LP | Commitment to Invest
Other Commitments [Line Items]
Commitments term	7 years 9 months 18 days

[1] The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners.

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Segment Reporting - Economic Income (Loss) to GAAP (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	2
Reconciliation to U.S. GAAP Company's Economic Income (Loss)
Preferred stock dividends	$ 1,698	$ 1,698
Amortization of (discount)/premium on convertible debt	77	776
Bargain Purchase Gain, net of tax	0	3,855
Income tax expense (benefit)	11,889	54,428
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	55,147	152,066
Adjustments
Reconciliation to U.S. GAAP Company's Economic Income (Loss)
Noncontrolling Interest (Adjusted)	20,131	4,562
Preferred stock dividends	1,698	1,698
Amortization of (discount)/premium on convertible debt	(75)	(776)
Acquisition related amounts	(80)	(238)
Contingent Consideration Payable	(5,133)	6,798
Debt extinguishment gain (loss) and accelerated debt costs	0	(4,538)
Bargain Purchase Gain, net of tax	0	3,855
Income tax expense (benefit)	(11,889)	(54,428)
Economic income tax expense	13,048	52,751
OpCo | Operating Segments
Reconciliation to U.S. GAAP Company's Economic Income (Loss)
Economic Income	36,297	143,858
Income tax expense (benefit)	11,832	55,085
Asset Co | Operating Segments
Reconciliation to U.S. GAAP Company's Economic Income (Loss)
Economic Income	1,150	(1,476)
Income tax expense (benefit)	$ 57	$ (657)

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Segment Reporting - Segment Breakout (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Segment Information
Total revenues		$ 410,592	$ 747,526
Depreciation and Amortization		7,185	4,354
Income tax expense (benefit)		11,889	54,428
Interest and Dividend Expense		46,524	57,641
Dividend expense		2,000	2,600
Dividend revenue		6,000	8,100
Consolidated Funds
Segment Information
Dividend revenue		0	2,600
Operating Segments
Segment Information
Non-Interest Revenue	[1]	370,251	696,217
Interest Revenue		40,339	51,307
Total revenues		410,592	747,526
Operating Segments | Consolidated Funds
Segment Information
Interest Revenue		2	2
OpCo | Operating Segments
Segment Information
Non-Interest Revenue		367,652	697,885
Interest Revenue		40,331	51,104
Total revenues		407,983	748,989
Interest Expense		43,300	53,803
Depreciation and Amortization		7,179	4,349
Income tax expense (benefit)		11,832	55,085
Asset Co | Operating Segments
Segment Information
Non-Interest Revenue		2,599	(1,668)
Interest Revenue		8	203
Total revenues		2,609	(1,463)
Interest Expense		1,236	1,275
Depreciation and Amortization		6	5
Income tax expense (benefit)		57	(657)
Asset Co | Operating Segments | Consolidated Funds
Segment Information
Interest Revenue		$ 2	$ 2

[1] Includes dividend revenue of $6.0 million and $8.1 million for the three months ended March 31, 2022 and 2021, respectively. In addition, includes dividend revenue, consolidated funds, of $0.0 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively.

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Regulatory Requirements (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	$ 250,000
Cowen and Company
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	$ 1,500,000
Minimum net capital required, percent	2.00%
Net capital	$ 406,557,000
Net capital requirement under alternative method	9,343,000
Excess capital	397,214,000
ATM Execution LLC
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital	7,880,000
Net capital requirement under alternative method	250,000
Excess capital	7,630,000
Westminster Research
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital	19,521,000
Net capital requirement under alternative method	250,000
Excess capital	19,271,000
Cowen Financial Products LLC
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital	36,658,000
Net capital requirement under alternative method	20,000,000
Excess capital	16,658,000
Cowen and Company (Asia) Limited
Regulatory Requirements for Broker-Dealers [Line Items]
Financial resources	2,045,000	[1]
Financial resources requirement	383,000	[1]
Excess financial resources	1,662,000	[1]
RCG Insurance Company
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	300,000
Net capital	6,000,000
Options Clearing Corporation | Cowen and Company
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	$ 2,000,000
Minimum net capital required, percent	2.00%
U.K. Financial Services Authority | Cowen International Limited
Regulatory Requirements for Broker-Dealers [Line Items]
Financial resources	$ 51,109,000	[1]
Financial resources requirement	25,735,000	[1]
Excess financial resources	25,374,000	[1]
U.K. Financial Services Authority | Cowen Execution Services Ltd
Regulatory Requirements for Broker-Dealers [Line Items]
Financial resources	17,900,000	[1]
Financial resources requirement	5,075,000	[1]
Excess financial resources	12,825,000	[1]
Minimum | Cowen and Company
Regulatory Requirements for Broker-Dealers [Line Items]
Required net capital under commodity exchange act	45,000
Special Reserve Accounts | Cowen and Company
Regulatory Requirements for Broker-Dealers [Line Items]
Cash and securities segregated under securities exchange commission regulation	51,800,000
PAB Reserve Bank Accounts | Cowen and Company
Regulatory Requirements for Broker-Dealers [Line Items]
Cash and securities segregated under securities exchange commission regulation	$ 71,700,000

[1] The equivalent of Net Capital under FCA rules is referred as “capital resources” and under SFC rules is referred as “net liquid capital.” The equivalent of Minimum Net Capital Requirement under FCA rules is referred as “minimum capital resources requirement and under SFC rules is referred as “net liquid capital requirement."

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Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Fees receivable	$ 128,136		$ 145,809
Due from Related Parties	21,666		31,449
Employees
Related Party Transaction [Line Items]
Redeemable non-controlling interests, Related Party	58,300		53,900
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds	10,300	$ 10,100
Employee Loans
Related Party Transaction [Line Items]
Due from employees	9,200		8,800
Forgivable Loan Balances	3,800		3,800
Amortization on Forgivable Loans	800	1,200
Interest Income, Related Party	$ 100	$ 100
Employee Loans | Minimum
Related Party Transaction [Line Items]
Forgivable Loans, Vesting Period	1 year
Employee Loans | Maximum
Related Party Transaction [Line Items]
Forgivable Loans, Vesting Period	3 years
Affiliated Entity
Related Party Transaction [Line Items]
Fees receivable	$ 21,900		16,600
Other Funds
Related Party Transaction [Line Items]
Due from Related Parties	$ 12,400		$ 22,600

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Guarantees and Off-Balance Sheet Arrangements (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	$ 320,000
Line of credit facility, remaining borrowing capacity	320,000
Pledge Lines
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	225,000
Line of credit facility, remaining borrowing capacity	225,000
BMO Harris Bank | Tri-Party Pledge Line
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	75,000
Line of credit facility, remaining borrowing capacity	75,000
BMO Harris Bank | Pledge Lines
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	150,000
Line of credit facility, remaining borrowing capacity	150,000
BMO Harris Bank | Spike Line
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	70,000
Line of credit facility, remaining borrowing capacity	70,000
Morgan Stanley | Revolving Credit Facility
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	25,000
Line of credit facility, remaining borrowing capacity	$ 25,000

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Subsequent Events - Narrative (Details) - $ / shares		3 Months Ended		12 Months Ended
	Apr. 21, 2022	Mar. 31, 2022	Jun. 30, 2021	Dec. 31, 2021
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.12	$ 0.08	$ 0.10
Subsequent Event
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.12