10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended:		December 31, 2019
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	27-0423711
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

599 Lexington Avenue

New York, New York 10022

(212) 845-7900

(Address, including zip code, and telephone number, including area code, of registrant's principal executive office)

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
7.35% Senior Notes due 2027	COWNZ	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 if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐    No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐    No ☒

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).  Yes  ☒    No ☐ 

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

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer
(Do not check if a smaller
reporting company) ☐ 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 ☒

The aggregate market value of Class A common stock held by non-affiliates of the registrant on June 30, 2019, the last business day of the registrant's most recently completed second fiscal quarter, based upon the closing sale price of the Class A common stock on the NASDAQ Global Market on that date was $488,181,217.

As of March 3, 2020 there were 28,656,136 shares of the registrant's Class A common stock outstanding.

Documents incorporated by reference:

Part III of this Annual Report on Form 10-K incorporates by reference information (to the extent specific sections are referred to herein) from the Registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders.

TABLE OF CONTENTS

Item No.			Page No.
PART I
	1.	Business	1
	1A.	Risk Factors	6
	1B.	Unresolved Staff Comments	26
	2.	Properties	26
	3.	Legal Proceedings	26
	4.	Mine Safety Disclosures	27
PART II
	5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	27
	6.	Selected Financial Data	29
	7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
	7A.	Quantitative and Qualitative Disclosures about Market Risk	61
	8.	Financial Statements and Supplementary Data	63
	9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	63
	9A.	Controls and Procedures	63
	9B.	Other Information	64
PART III
	10.	Directors, Executive Officers and Corporate Governance	64
	11.	Executive Compensation	64
	12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	64
	13.	Certain Relationships and Related Transactions	64
	14.	Principal Accountant Fees and Services	64
PART IV
	15.	Exhibits and Financial Statement Schedules	64
	16.	Form 10-K Summary	67
Consolidated Financial Statements and Notes			F-1
Supplemental Financial Information			F-82
SIGNATURES

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Special Note Regarding Forward-Looking Statements

We have included or incorporated by reference into our Annual Report on Form 10-K (the "Annual Report"), and from time to time may make in our public filings, press releases or other public documents, certain statements, including (without limitation) those under Item 1—"Business," Item 1A—"Risk Factors," Item 3—"Legal Proceedings," Item 7—"Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 7A—"Quantitative and Qualitative Disclosures about Market Risk" that may constitute "forward-looking statements" within the meaning of the safe harbor provisions 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 outlined under Item 1A—"Risk Factors" in this Annual Report.

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.

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PART I

When we use the terms "we," "us," "Cowen" and the "Company," we mean Cowen Inc., a Delaware corporation, its consolidated subsidiaries and entities in which it has a controlling financial interest, taken as a whole, as well as any predecessor entities, unless the context otherwise indicates.

Item 1.    Business

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 and 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 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 and domain knowledge-driven research, sales and trading platforms for institutional investors, global clearing and 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 United States ("U.S.") Securities and Exchange Commission (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 private healthcare investing, private sustainable investing, healthcare royalties, activism and merger arbitrage. A portion of the Company’s capital is invested alongside the Company's investment management clients. The Company has also invested some of its capital in its reinsurance businesses.

Op Co's investment banking businesses include investment banking, research, sales and trading, prime brokerage, global clearing 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, information and technology 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.

Change in Segments

The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable segments. Because of the change in the Chief Operating Decision Maker ("CODM") of the Company at the end of 2017, the Company experienced a strategic shift to refocus the Company's businesses on a set of differentiated products which are aligned to the content and insight within the Company's domain of expertise.

During the second quarter of 2019, the Company realigned the business and reportable segment information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including evaluation and allocation of resources.  As a result, the Company changed its segment reporting structure based on the Company's domain expertise as a driver of balance sheet harmonization and repeatable revenues for its operating business versus the Company's long-term monetization strategies.

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As a result of the change in segments during the second quarter of 2019, the Company has the following business segments:

•The Op Co segment consists of four divisions: Investment Banking, Markets, Research and Cowen Investment Management. Each of Op Co's four divisions leverage the Research division’s core domain expertise to drive harmonized repeatable revenue for the segment.

◦The Investment Banking division includes public and private capital raising transactions and providing strategic advisory services.

◦The Markets division includes trading equity, equity-linked and fixed income securities on behalf of institutional investors as well as a full-service suite of prime brokerage services, cross-asset trading, securities finance, global execution, clearing and commission management businesses.

◦The Research division provides thought leadership and domain expertise. The research content that is created helps to facilitate brokerage revenue in the Markets division, provides research coverage for clients of the Investment Banking division and facilitate investor relationships and investing within CIM's innovative investment products and solutions.

◦The CIM division offers innovative investment products and solutions across the liquidity spectrum to institutional and private clients. CIM offers investors access to a number of strategies to meet their specific needs including merger arbitrage, activism, healthcare royalties, private healthcare investing and private sustainable investing many of which leverage the content and domain expertise that are aligned with the Company's core areas of expertise, which the Company refers to as Cowen DNA.

•The Asset Co segment consists of certain of the Company's private investments, private real estate investments and other legacy investment strategies.

Principal Business Lines

Investment Banking

Our investment banking department provides strategic advisory and capital raising services to U.S. and international public and private companies in our sectors. Our strategic advisory services include, among other things, acquisitions, divestitures, fairness opinions, spin-offs, and partnerships. Our capital markets group consists of two groups: (i) equity capital markets (including convertible securities), which focuses on raising equity capital in the public markets, and (ii) private capital solutions, which focuses on providing alternative sources of capital and balance sheet solutions, including private equity, family offices, alternative lenders and liability management. A significant amount of our investment banking revenue has been earned from high-growth small and mid-capitalization companies. From time to time, the Company invests in private capital raising transactions of its clients.

Brokerage

Our team of brokerage professionals serves institutional investor clients in the U.S. and internationally. We trade common stocks, listed options, equity-linked securities and other financial instruments on behalf of our clients and offer a full-service suite of introduced prime brokerage services targeting emerging private fund managers. We provide our clients with an electronic execution suite. We provide global, multi-asset class algorithmic execution trading models to both buy side and sell side clients and also offer execution capabilities relating to these trading models through ATM Execution LLC ("ATM Execution"). We also provide our clients with commentary on political, economic and market conditions. We have relationships with over 6,000 institutional investor clients. Our brokerage team is comprised of experienced professionals dedicated to our sectors, which allows us to develop a level of knowledge and focus that we believe differentiates our brokerage capabilities from those of many of our competitors. We tailor our account coverage to the unique needs of our clients. We believe that our sector traders are able to provide superior execution because of their knowledge of the interests of our institutional investor clients in specific companies in our sectors.

In connection with the brokerage services we provide, our sales professionals also provide our institutional investor clients with corporate access to our investment banking clients outside the context of financing transactions. These meetings are commonly referred to as non-deal road shows. Non-deal road shows allow our investment banking clients to increase their visibility within the institutional investor community while providing our institutional investor clients with the opportunity to further educate themselves on companies and industries through meetings with management. We believe our deep relationships with company management teams and our sector-focused approach provide us with broad access to management for the benefit of our institutional investor and investment banking clients.

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Research

As of December 31, 2019, we had a research team of 52 senior analysts covering over 800 stocks. Within our equity coverage universe, approximately 31% are healthcare companies, 26% are TMT (technology, media and telecom) companies, 14% are energy companies, 11% are capital goods and industrial companies, 3% are basic materials companies and 14% are consumer companies. Our approach to research, underpinned by our marquee Ahead Of The Curve® Series reports, focuses our analysts' efforts toward delivering differentiated investment ideas and de-emphasizes maintenance research. We place significant emphasis on analyst collaboration, both within and between sectors. We sponsor a number of conferences every year that are focused on our sectors and sub-sectors. During these conferences we highlight our investment research and provide significant investor access to corporate management teams. We provide research solely through our broker-dealers in connection with our provision of brokerage services.

Investment Management Strategies

The Company's investment management business, within the Op Co segment, focuses on addressing the needs of institutional investors and high net worth individuals to preserve and grow allocated capital. The Company and its affiliated investment advisors offer a variety of investment management products that provide access to a number of strategies, including merger arbitrage, activism, private healthcare investing, and private sustainable investing.

The Company's investment management business, within the Asset Co segment, consists of the Company's private investments, private real estate investments and other legacy investment strategies. Certain multi-strategy hedge funds managed by the Company are currently in wind-down. The majority of assets remaining in these hedge funds include investments in private companies, real estate investments and special situations.

Information About Geographic Areas

We are principally engaged in providing investment management services to global institutional investors and investment banking sales and trading and research services to corporations and institutional investor clients primarily in the United States and Europe. We provide brokerage services to companies and institutional investor clients in Europe through our broker-dealers located in the United Kingdom ("U.K.") Cowen International Limited ("Cowen International Ltd") and Cowen Execution Services Limited ("Cowen Execution Ltd"). Cowen and Company (Asia) Limited ("Cowen Asia") is registered with and subject to the financial resources requirements of the Securities and Futures Commission ("SFC") of Hong Kong.

Employees

As of March 3, 2020, the Company had 1,325 employees.

Competition

We compete with many other firms in all aspects of our business, including raising funds, seeking investment opportunities and hiring and retaining professionals, and we expect our business will continue to be highly competitive. The investment management and investment banking industries are currently undergoing contraction and consolidation, reducing the number of industry participants and generally resulting in the larger firms being better positioned to retain and gain market share. We compete in the United States and globally for investment opportunities, investor capital, client relationships, reputation and talent. We face competitors that are larger than we are and have greater financial, technical and marketing resources. Certain of these competitors continue to raise additional amounts of capital to pursue investment strategies that may be similar to ours. Some of these competitors may also have access to liquidity sources that are not available to us, which may pose challenges for us with respect to investment opportunities. In addition, some of these competitors may have higher risk tolerances or make different risk assessments than we do, allowing them to consider a wider variety of investments and establish broader networks of business relationships. Our competitive position depends on our reputation, our investment performance and processes, the breadth of our business platform and our ability to continue to attract and retain qualified employees while managing compensation and other costs. For additional information regarding the competitive risks that we face, see "Item 1A Risk Factors".

Regulation and Compliance

Our businesses, as well as the financial services industry generally, are subject to extensive regulation, including periodic examinations by governmental and self-regulatory organizations, in the United States and the jurisdictions in which we operate around the world. As a publicly traded company in the United States, we are subject to the U.S. federal securities laws and regulation by the SEC. Through our investment management and/or investment bank businesses we are subject to regulation by the SEC, the U.S. Commodity Futures Trading Commission ("CFTC"), the Financial Industry Regulatory Authority, Inc. ("FINRA") the National Futures Association ("NFA"), other self-regulatory organizations and exchanges related to the financial

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services industry and the fifty state securities commissions in the U.S. and by the U.K. Financial Conduct Authority ("FCA") and the SFC of Hong Kong.

Virtually all aspects of our business are subject to various laws and regulations both inside and outside the U.S., some of which are summarized below. Regulatory bodies in the United States and the rest of the world are charged with safeguarding the integrity of the securities and other financial markets and with protecting the interests of customers participating in those markets. Governmental authorities in the United States and in the other countries in which we operate from time to time propose additional disclosure requirements and regulations covering our broker-dealers and investment management businesses. The rules governing the regulation of the various aspects of our business are very detailed and technical. Accordingly, the discussion below is general in nature, does not purport to be complete and is current only as of the date of this report.

Rigorous legal and compliance analysis of our businesses and investments is important to our culture and risk management. We conduct regular training of our personnel regarding the laws and regulations governing our business and applicable to our clients as well as with our company's policies and procedures. In addition, we have adopted and implemented disclosure controls and procedures and internal controls over financial reporting, which have been documented, tested and assessed for design and operating effectiveness in compliance with the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"). We strive to maintain a culture of compliance through the use of policies and procedures such as oversight compliance, codes of conduct, compliance systems, communication of compliance guidance, conduct of annual compliance reviews and on-going employee education and training. Our corporate risk management function further analyzes our business, investment and other key risks, reinforcing their importance in our environment. We have a compliance group that monitors our compliance with all of the regulatory requirements to which we are subject and manages our compliance policies and procedures. Our General Counsel supervises our compliance group, which is responsible for addressing all regulatory and compliance matters that affect our activities. Our compliance policies and procedures address a variety of regulatory and compliance risks such as the handling of material non-public information, position reporting, personal securities trading, valuation of investments, document retention, potential conflicts of interest and the allocation of investment opportunities. Our compliance group also monitors the information barriers that we maintain between those of our different businesses that we are required to conduct separately or which present conflicts of interest, which we address through the use of physical and systematic information barriers. We believe that our various businesses' access to the intellectual capital, contacts and relationships benefit all of our businesses. However, in order to maximize that access without compromising our legal and contractual obligations, our compliance group oversees and monitors the communications between or among our different businesses to ensure that we maintain material non-public information, client information and other confidential information in strict confidence. All parts of our business from time to time are subject to regulatory exams, investigations and proceedings, and our broker-dealers have received fines and penalties for infractions of various regulations relating to our activities. For additional information regarding the regulatory and compliance risks that we face, see "Item 1A Risk Factors".

The investment advisers responsible for the Company's investment management businesses are all registered as investment advisers with the SEC or rely upon the registration of an affiliated adviser, and all are currently exempt from registration as Commodity Pool Operators and Commodity Trading Advisors.

Registered investment advisers are subject to the requirements of the Advisers Act and the regulations promulgated thereunder. Such requirements relate to, among other things, fiduciary duties to clients, maintaining an effective compliance program, operational and marketing requirements, disclosure obligations, conflicts of interest, fees and prohibitions on fraudulent activities.

The investment activities of our investment management businesses are also subject to regulation under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Securities Act of 1933, as amended, the Investment Company Act of 1940, as amended ("the Investment Company Act") and various other statutes, as well as the laws of the fifty states and the rules of various United States and non-United States securities exchanges and self-regulatory organizations, including laws governing trading on inside information, market manipulation and a broad number of technical requirements (e.g., options and futures position limits, execution requirements and reporting obligations) and market regulation policies in the United States and globally. Congress, regulators, tax authorities and others continue to explore and implement regulations governing all aspects of the financial services industry. Pursuant to systemic risk reporting requirements adopted by the SEC, the Company's affiliated registered investment advisers with private investment fund clients are required to report certain information about their investment funds to the SEC.

In addition, certain of our investment advisers act as a "fiduciaries" under the Employee Retirement Income Security Act of 1974 ("ERISA") and similar state laws with respect to private and public benefit plan clients. As such, the advisers, and certain of the investment funds they advise, may be subject to ERISA and similar state law requirements and to regulations promulgated thereunder. ERISA, similar state laws and applicable provisions of the Internal Revenue Code of 1986 (the "IRC"), which regulate services provided to individual retirement accounts, impose duties on persons who are fiduciaries and

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other types of service providers to benefit plans and individual retirement accounts under ERISA, such state laws and the IRC, prohibit specified transactions involving IRA and benefit plan clients subject to ERISA or similar state laws (absent the availability of specified exemptions) and provide monetary penalties for violations of these prohibitions.

Enacted on July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") was expansive in scope and led to the adoption of extensive regulations by the CFTC, the prudential regulators, the SEC and other governmental agencies. The current administration has suggested that it will seek to roll back some of this regulation, although it is not possible to predict whether changes will be made. Since its adoption, the Dodd-Frank Act has had an impact on the costs associated with derivatives trading by the Company and its clients, including as a result of requirements that transactions be margined, trade reported and, in some cases, centrally cleared.

The Dodd-Frank Act established the Financial Services Oversight Council (the "FSOC") to identify threats to the financial stability of the United States, promote market discipline, and respond to emerging risks to the stability of the United States financial system. The FSOC is empowered to determine whether the material financial distress or failure of a non-bank financial company would threaten the stability of the United States financial system, and such a determination can subject a non-banking finance company to supervision by the Board of Governors of the Federal Reserve and the imposition of standards and supervision including stress tests, liquidity requirements and enhanced public disclosures including the authority to require the supervision and regulation of systemically significant non-bank financial companies. We do not believe we are at risk of being considered a systemically significant non-bank financial company.

The regulation of swaps and derivatives under the Dodd-Frank Act directly affects the manner by which our investment management businesses utilizes and trades swaps and other derivatives, and has generally increased the costs of derivatives trading conducted on behalf of our clients. The European Union ("E.U.") (and some other countries) are now in the process of implementing similar requirements that will affect derivatives transactions with a counterparty organized in that country or otherwise subject to that country's derivatives regulation. The mandatory minimum margin requirements for bilateral derivatives adopted by the U.S. government and the E.U. came into effect in March 2017 in respect to variation margin and will be transitioned in through 2020 in respect to initial margin. Required margining of derivatives has affected our investment management businesses as these requirements generally increase costs associated with derivatives transactions and makes derivatives transactions more expensive.

Given our investment and insurance activities are carried out around the globe, we are subject to a variety of regulatory regimes that vary country by country. Our captive insurance and reinsurance companies are regulated by both the New York State Department of Finance and the Luxembourg Commissariat aux Assurances, respectively. E.U. financial reforms included a number of initiatives to be reflected in new or updated directives and regulations, the most significant of which is the amendment to the pan-European regulatory regime, the Markets in Financial Instruments Directive ("MiFID II"), which went into effect in January 2018. MiFID II regulates the provision of investment services and activities throughout the European Economic Area. MiFID II requires that investment managers and investment advisers located in the E.U. "unbundle" research costs from commissions. As a result, investment firms subject to MiFID II may no longer pay for research using client commissions or "soft dollars." Going forward, such costs must be paid directly by the investment firm or through a research payment account funded by clients and governed by a budget that is agreed by the client. In the U.S., our investment management businesses expect to continue to pay for research using soft dollars consistent with applicable law. The change in regulations has also impacted the provisions of research by our U.S. broker-dealers. Because the acceptance of hard dollar payments would, under U.S. law, require registration as an investment adviser, our broker-dealers are requiring clients to continue to pay for research on a soft dollar basis unless the client is subject to MiFID II and we can rely on SEC relief so as not to have to register as an investment adviser.

Our businesses have operated for many years within a legal framework that requires us to be able to monitor and comply with a broad range of legal and regulatory developments that affect our activities both in the United States and abroad. As noted above, certain of our businesses are subject to compliance with laws and regulations of United States federal and state governments, foreign governments, their respective agencies and/or various self-regulatory organizations or exchanges relating to the privacy of client information, and any failure to comply with these regulations could expose us to liability and/or reputational damage. Additional legislation, changes in rules promulgated by the SEC, our other regulators and self-regulatory organizations or changes in the interpretation or enforcement of existing laws and rules, either in the United States or elsewhere, may directly affect the mode of our operation and profitability. The United States and non-United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, are empowered to conduct administrative proceedings that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion or deregulation of a broker-dealer, an investment advisor or its directors, officers or employees.

Cowen and Company, LLC ("Cowen and Company"), ATM Execution LLC ("ATM Execution"), Cowen Prime Services LLC ("Cowen Prime"), Cowen Execution Services LLC ("Cowen Execution") and Westminster Research Associates LLC ("Westminster") are registered as broker-dealers with the SEC and are members in good standing with FINRA. All broker-

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dealers are registered with various U.S states and territories except for ATM Execution. In addition to FINRA, some of these Cowen broker-dealers are also are members of other self-regulatory organizations, including various registered securities exchanges. Self-regulatory organizations adopt and enforce rules governing the conduct and activities of their member firms. Accordingly, Cowen and Company, ATM Execution, Cowen Prime, Cowen Execution and Westminster are subject to regulation and oversight by the SEC, the U.S states and territories in which they are registered, and FINRA and the other self-regulatory organizations of which they are members. Cowen Prime is also registered with the CFTC and is a member of the NFA and, consequently, is subject to regulation and oversight by them. Additionally, Cowen International Ltd and Cowen Execution Ltd are primarily regulated in the U.K. by the FCA and Cowen Asia is-registered with and subject to the financial resources requirements of the SFC of Hong Kong.

Broker-dealers are subject to regulations that cover all aspects of the securities business, including sales methods, trade practices among broker-dealers, use and safekeeping of customers' funds, conflicts of interest, securities and information, capital structure, research/banking interaction, record-keeping, the financing of customers' purchases and the conduct and qualifications of directors, officers and employees. In particular, as registered broker-dealers and members of various self-regulatory organizations, Cowen and Company, ATM Execution, Cowen Prime, Cowen Execution and Westminster are subject to the SEC's uniform net capital rule. Rule 15c3-1 specifies the minimum level of net capital a broker-dealer must maintain and also requires that a significant part of a broker-dealer's assets be kept in relatively liquid form. The SEC and various self-regulatory organizations impose rules that require notification when net capital falls below certain predefined criteria, limit the ratio of subordinated debt to equity in the regulatory capital composition of a broker-dealer and constrain the ability of a broker-dealer to expand its business under certain circumstances. Additionally, the SEC's uniform net capital rule requires us to give prior notice to the SEC for certain withdrawals of capital. As a result, our ability to withdraw capital from our broker-dealer subsidiaries may be limited.

The effort to combat money laundering and terrorist financing is a priority in governmental policy with respect to financial institutions. The Bank Secrecy Act ("BSA"), as amended by Title III of the USA PATRIOT Act of 2001 and its implementing regulations ("Patriot Act"), requires broker-dealers and other financial services companies to maintain an anti-money laundering compliance program that includes written policies and procedures, designated compliance officer(s), appropriate training, independent review of the program, standards for verifying client identity at account opening and obligations to report suspicious activities and certain other financial transactions. Through these and other provisions, the BSA and Patriot Act seek to promote the identification of parties that may be involved in financing terrorism or money laundering. We must also comply with sanctions programs administered by the U.S. Department of Treasury's Office of Foreign Asset Control, which may include prohibitions on transactions with designated individuals and entities and with individuals and entities from certain countries.

Anti-money laundering laws of certain countries outside the United States contain similar diligence and verification provisions. The obligation of financial institutions, including ours, to identify their customers, watch for and report suspicious transactions, respond to requests for information by regulatory authorities and law enforcement agencies, and share information with other financial institutions, has required the implementation and maintenance of internal practices, procedures and controls that have increased, and may continue to increase, our costs. Any failure with respect to our programs in this area could subject us to serious regulatory consequences, including substantial fines, and potentially other liabilities.

Available Information

We routinely file annual, quarterly and current reports, proxy statements and other information required by the Exchange Act with the SEC. Our SEC filings also are available to the public from the SEC's internet site at http://www.sec.gov.

We maintain a public internet site at http://www.cowen.com and make available free of charge through this site our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements and Forms 3, 4 and 5 filed on behalf of directors and executive officers, as well as any amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. We also post on our website the charters for our Board of Directors' Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee, as well as our Corporate Governance Guidelines, our Code of Business Conduct and Ethics governing our directors, officers and employees and other related materials. The information on or accessible through our website is not incorporated by reference into this Annual Report.

Item 1A.    Risk Factors

Risks Related to the Company's Businesses and Industry

For purposes of the following risk factors, references made to the Company's investment funds include the various investment management products advised by the Company's investment management business and the investment funds through

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which the Company invests its own capital. The Company's investment banking businesses include the Investment Banking division, the Markets division and the Research division.

Market, Strategy and Industry Risk

Difficult market conditions, market disruptions and volatility have adversely affected, and may in the future adversely affect, the Company's businesses, results of operations and financial condition.

The Company's businesses, by their nature, do not produce predictable earnings, and all of the Company's businesses have in the past been, and may in the future be, materially affected by conditions in the global financial markets and by global economic conditions, such as interest rates, the availability of credit, inflation rates, economic uncertainty, changes in laws, commodity prices, asset prices (including real estate), currency exchange rates and controls and national and international political circumstances (including wars, terrorist acts, protests or security operations). Challenging market conditions have in the past affected and in the future could affect the level and volatility of securities prices and the liquidity and the value of investments in the Company's investment funds or other investments in which the Company has investments of its own capital, and the Company may not be able to effectively manage its investment management business's exposure to challenging market conditions. Challenging market conditions have in the past adversely affected and in the future could also adversely affect the Company's investment banking business as increased volatility and lower stock prices can make companies less likely to conduct transactions.

The Company may be unable to successfully identify, manage and execute future acquisitions, investments and strategic alliances, which could adversely affect our results of operations.

We intend to continually evaluate potential acquisitions, investments and strategic alliances to expand our business. In the future, we may seek additional acquisitions, investments, strategic alliances or similar arrangements, which may expose us to risks such as:

•the difficulty of identifying appropriate acquisitions, investments, strategic allies or opportunities on terms acceptable to us;

•the possibility that senior management may be required to spend considerable time negotiating agreements and monitoring these arrangements;

•potential regulatory issues applicable to the financial services business;

•the loss or reduction in value of the capital investment;

•our inability to capitalize on the opportunities presented by these arrangements; and

•the possibility of insolvency of a strategic ally.

Furthermore, any future acquisitions of businesses could entail a number of risks, including:

•problems with the effective integration of operations;

•inability to maintain key pre-acquisition business relationships;

•increased operating costs;

•exposure to unanticipated liabilities; and

•difficulties in realizing projected efficiencies, synergies and cost savings.

There can be no assurance that we would successfully overcome these risks or any other problems encountered with these acquisitions, investments, strategic alliances or similar arrangements.

The Company's future results will suffer if the Company does not effectively manage its expanded operations.

The Company may continue to expand its operations through new product and service offerings and through additional strategic investments, acquisitions or joint ventures, some of which may involve complex technical and operational challenges. The Company's future success depends, in part, upon its ability to manage its expansion opportunities, which pose numerous risks and uncertainties, including the need to integrate new operations into its existing business in an efficient and timely manner, to combine accounting and data processing systems and management controls and to integrate relationships with customers and business partners. In addition, future acquisitions or joint ventures may involve the issuance of additional shares of common stock of the Company, which may dilute the ownership of the Company's stockholders.

Volatility in the value of the Company's investments and securities portfolios or other assets and liabilities, including investment funds, or negative returns from the investments made by the Company have in the past and could in the future adversely affect the Company's results of operations and statement of financial condition.

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The Company invests a significant portion of its capital base to help drive results and facilitate growth of its investment management and investment bank businesses. As of December 31, 2019, the Company's invested capital amounted to a net value of $717.6 million (supporting a long market value of $724.8 million), representing approximately 89% of Cowen's stockholders' equity presented in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). In accordance with US GAAP, we define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. US GAAP also establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Changes in fair value are reflected in the statement of operations at each measurement period. Therefore, continued volatility in the value of the Company's investments and securities portfolios or other assets and liabilities, including investment funds, will result in volatility of the Company's results. We have experienced this type of volatility in prior periods. In addition, the investments made by the Company may not generate positive returns. As a result, changes in value or negative returns from investments made by the Company may have an adverse effect on the Company's financial condition or operations in the future.

Our investment in Linkem may not prove to be successful and may adversely affect our results of operations or financial condition.

As of December 31, 2019, we had an approximately $72.4 million investment in Linkem S.p.A. ("Linkem"), the largest fixed wireless broadband service provider in Italy. Many factors, most of which are outside of our control, can affect Linkem's business, including the state of the Italian economy and capital markets in general, competition in the Italian telecommunications markets and other factors that directly and indirectly affect the results of operations, including the sales and profitability of Linkem, and consequently may adversely affect our results of operations or financial condition.

The Company faces strong competition from larger firms.

The research, brokerage and investment banking industries are intensely competitive, and the Company expects them to remain so. The Company competes on the basis of a number of factors, including client relationships, reputation, the abilities of the Company's professionals, market focus and the relative quality and price of the Company's services and products. The Company has experienced intense price competition in some of its businesses, including trading commissions and spreads in its brokerage business. In addition, pricing and other competitive pressures in investment banking, including the trends toward multiple book runners, co-managers and financial advisors, and a larger share of the underwriting fees and discounts being allocated to the book-runners, could adversely affect the Company's revenues from its investment bank business.

The Company is a relatively small investment bank. Many of the Company's competitors in the research, brokerage and investment banking industries have a broader range of products and services, greater financial resources, larger customer bases, greater name recognition and marketing resources, a larger number of senior professionals to serve their clients' needs, greater global reach and more established relationships with clients than the Company has. These larger competitors may be better able to respond to changes in the research, brokerage and investment banking industries, to compete for skilled professionals, to finance acquisitions, to fund internal growth and to compete for market share generally.

The scale of our competitors in the investment banking industry has increased in recent years as a result of substantial consolidation among companies in the research, brokerage and investment banking industries. In addition, a number of large commercial banks and other broad-based financial services firms have established or acquired underwriting or financial advisory practices and broker-dealers or have merged with other financial institutions. These firms have the ability to offer a wider range of products than the Company does which may enhance their competitive position. They also have the ability to support their investment banking and advisory groups with commercial banking and other financial services in an effort to gain market share, which has resulted, and could further result, in pricing pressure in the Company's businesses. If we are unable to compete effectively with our competitors in the investment banking industry, the Company's business and results of operations may be adversely affected.

Human Capital Risk

The Company depends on its key senior personnel and the loss of their services would have a material adverse effect on the Company's businesses and results of operations, financial condition and prospects.

The Company depends on the efforts, skill, reputations and business contacts of its principals and other key senior personnel, the information and investment activity these individuals generate during the normal course of their activities and the synergies among the diverse fields of expertise and knowledge held by the Company's senior professionals. Accordingly, the Company's continued success will depend on the continued service of these individuals. Key senior personnel may leave the Company in the future, and we cannot predict the impact that the departure of any key senior personnel will have on our ability to achieve our investment and business objectives. The loss of the services of any of them could have a material adverse effect on the Company's revenues, net income and cash flows and could harm our ability to maintain or grow assets under

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management in existing investment funds or raise additional funds in the future. Our senior and other key personnel possess substantial experience and expertise and have strong business relationships with the investors in its investment funds, clients and other members of the business community. As a result, the loss of such personnel could have a material adverse effect on the Company's businesses and results of operations, financial condition and prospects.

The Company's ability to retain its senior professionals is critical to the success of its businesses, and its failure to do so may materially affect the Company's reputation, business and results of operations.

Our people are our most valuable resource. Our success depends upon the reputation, judgment, business generation capabilities and project execution skills of our senior professionals. Our employees' reputations and relationships with our clients are critical elements in obtaining and executing client engagements. The Company may encounter intense competition for qualified employees from other companies inside and outside of their industries. From time to time, the Company has experienced departures of professionals. Losses of key personnel have occurred and may occur in the future. Moreover, if any of our client-facing employees or executive officers were to join an existing competitor or form a competing company, some of our clients could choose to use the services of that competitor instead of the services of the Company.

The success of our businesses is based largely on the quality of our employees and we must continually monitor the market for their services and seek to offer competitive compensation. In challenging market conditions, which occurred in recent years, it may be difficult to pay competitive compensation without the ratio of our compensation and benefits expense to revenues becoming higher. In addition, for our investment professionals whose performance-based compensation represents substantially all of the compensation the professional is entitled to receive in any year, negative performance which results in the professional not being entitled to receive any performance-based compensation could incentivize the professional to join a competitor.

Employee misconduct could harm the Company by, among other things, impairing the Company's ability to attract and retain investors and subjecting the Company to significant legal liability, reputational harm and the loss of revenue from its own invested capital.

It is not always possible to detect and deter employee misconduct. The precautions that the Company takes to detect and prevent this activity may not be effective in all cases, and we may suffer significant reputational harm and financial loss for any misconduct by our employees. The potential harm to the Company's reputation and to our business caused by such misconduct is impossible to quantify.

There is a risk that the Company's employees or partners could engage in misconduct that materially adversely affects the Company's business, including a decrease in returns on its own invested capital. The Company is subject to a number of obligations and standards arising from its businesses. The violation of these obligations and standards by any of the Company's employees could materially adversely affect the Company and its investors. For instance, the Company's businesses require that the Company properly deal with confidential information. If the Company's employees were to improperly use or disclose confidential information, we could suffer serious harm to our reputation, financial position and current and future business relationships. If one of the Company's employees were to engage in misconduct or were to be accused of such misconduct, the business and reputation of the Company could be materially adversely affected.

Business Risks

The Company has incurred losses in prior periods and may incur losses in the future.

While the Company's business was profitable on an economic income basis for the year ended December 31, 2019, the Company's investment bank businesses and investment management business have incurred losses in prior periods. For example, the Company's investment bank businesses incurred losses in the year ended December 31, 2016. In addition, the Company's investment management business incurred losses in each of the years ended December 31, 2017 and 2016. The Company may incur losses in any of its future periods. Future losses may have a significant effect on the Company's liquidity as well as our ability to operate. In addition, we may incur significant expenses in connection with any expansion, strategic acquisition or investment with respect to our businesses. Specifically, we have invested, and will continue to invest in, and hire senior professionals to expand, our investment banking businesses. Accordingly, the Company will need to increase its revenues at a rate greater than its expenses to achieve and maintain profitability. If the Company's revenues do not increase sufficiently, or even if its revenues increase but it is unable to manage its expenses, the Company will not achieve and maintain profitability in future periods. As an alternative to increasing its revenues, the Company may seek additional capital through the sale of additional common stock or other forms of debt or equity financing. The Company cannot be certain that it would have access to such financing on acceptable terms.

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The Company's investment banking businesses focus principally on specific sectors of the economy, and deterioration in the business environment in these sectors or a decline in the market for securities of companies within these sectors could materially affect our investment banking businesses.

Volatility in the business environment in the Company's sectors or in the market for securities of companies within these sectors could substantially affect the Company's financial results. The business environment for companies in these sectors has been subject to substantial volatility, and the Company's financial results have consequently been subject to significant variations from year to year. The market for securities in each of the Company's sectors may also be subject to industry-specific risks. For example, changes in policies of the United States Food and Drug Administration, along with changes to Medicare and government reimbursement policies, may affect the market for securities of healthcare companies, and changes to how the U.S. government reviews foreign acquisitions of U.S. based companies may make executing M&A transactions more difficult. In addition, revenue generated by the Company in its consumer sector could be adversely affected by changes in law or regulatory action with respect to companies that are in cannabis related businesses.

As an investment bank which focuses primarily on specific growth sectors of the economy, the Company also depends significantly on private company transactions for sources of revenues and potential business opportunities. To the extent the pace of these private company transactions slows or the average size declines due to a decrease in private equity financings, difficult market conditions in the Company's sectors or other factors, the Company's business and results of operations may be adversely affected.

The financial results of the Company's investment banking businesses may fluctuate substantially from period to period.

The Company has experienced, and we expect the Company to experience in the future, significant periodic variations in its revenues and results of operations. These variations may be attributed in part to the fact that its investment banking revenues are typically earned upon the successful completion of a transaction, the timing of which is uncertain and beyond the Company's control. In most cases, the Company receives little or no payment for investment banking engagements that do not result in the successful completion of a transaction. As a result, our investment bank business is highly dependent on market conditions as well as the decisions and actions of its clients and interested third parties. For example, a client's acquisition transaction may be delayed or terminated because of a failure to agree upon final terms with the counterparty, failure to obtain necessary regulatory consents or board or stockholder approvals, failure to secure necessary financing, adverse market conditions or unexpected financial or other problems in the client's or counterparty's business. If the parties fail to complete a transaction on which the Company is advising or an offering in which the Company is participating, we will earn little or no revenue from the transaction, and we may incur significant expenses that may not be recouped. This risk may be intensified by the Company's focus on growth companies in its sectors as the market for securities of these companies has experienced significant variations in the number and size of equity offerings. Many companies initiating the process of an IPO are simultaneously exploring other strategic alternatives, such as a merger and acquisition transaction. The Company's investment bank revenues would be adversely affected in the event that an IPO for which it is acting as an underwriter is preempted by the company's sale if the Company is not also engaged as a strategic advisor in such sale. As a result, our investment banking businesses are unlikely to achieve steady and predictable earnings on a quarterly basis.

Pricing and other competitive pressures may impair the revenues of the Company's brokerage business.

The Company's brokerage business accounted for approximately 38.4% of the Company's revenues during 2019. Along with other firms, the Company has experienced price competition in this business in recent years. In particular, the ability to execute trades electronically and through alternative trading systems has increased the pressure on trading commissions and spreads. We expect to continue to experience competitive pressures in these and other areas in the future as some of our competitors in the investment banking industry seek to obtain market share by competing on the basis of price or use their own capital to facilitate client trading activities. In addition, the Company faces pressure from larger competitors, who may be better able to offer a broader range of complementary products and services to clients in order to win their trading or prime brokerage business. We are committed to maintaining and improving the Company's comprehensive research coverage to support its brokerage business and the Company may be required to make additional investments in the Company's research capabilities.

The Company's capital markets and strategic advisory engagements are singular in nature, do not generally provide for subsequent engagements and can lead to payment risk.

The Company's investment banking clients generally retain the Company on a short-term, engagement-by-engagement basis in connection with specific capital markets or mergers and acquisitions transactions, rather than on a recurring basis under long-term contracts. As these transactions are typically singular in nature and the Company's engagements with these clients may not recur, the Company must seek out new engagements when its current engagements are successfully completed or are terminated. As a result, high activity levels in any period are not necessarily indicative of continued high levels of activity in any subsequent period. If the Company is unable to generate a substantial number of new engagements that generate fees from new or existing clients, the Company's investment bank business and results of operations would likely be adversely affected.

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In addition, investment banking clients may on occasion refuse to pay investment banking fees owed pursuant to the terms of our engagement and we may need to expend resources to enforce our contracts. Any failure to pay the investment banking fees owed to us could adversely affect our results of operations.

Larger and more frequent capital commitments in the Company's trading and underwriting businesses increase the potential for significant losses.

There has been a trend toward larger and more frequent commitments of capital by financial services firms in many of their activities. For example, in order to compete for certain transactions, investment banks may commit to purchase large blocks of stock from publicly traded issuers or significant stockholders, instead of the more traditional marketed underwriting process in which marketing is completed before an investment bank commits to purchase securities for resale. To the extent the total net capital of the Company's broker-dealers allows it, the Company anticipates participating in this trend and, as a result, the Company will be subject to increased risk as it commits capital to facilitate business. Furthermore, the Company may suffer losses as a result of the positions taken in these transactions even when economic and market conditions are generally favorable for others in the industry.

The Company may enter into large transactions in which it commits its own capital as part of its trading business to facilitate client trading activities. The number and size of these large transactions may materially affect the Company's results of operations in a given period. Market fluctuations may also cause the Company to incur significant losses from its trading activities. To the extent that the Company owns assets (i.e., has long positions), a downturn in the value of those assets or in the markets in which those assets are traded could result in losses. Conversely, to the extent that the Company has sold assets it does not own (i.e., has short positions), in any of those markets, an upturn in the value of those assets or in markets in which those assets are traded could expose the Company's investment banking businesses to potentially large losses as they attempt to cover short positions by acquiring assets in a rising market.

The market structure in which our market-making business operates may make it difficult for this business to maintain profitability.

Market structure changes have had an adverse effect on the results of operations of our market-making business. These changes may make it difficult for us to maintain and/or predict levels of profitability of, or may cause us to generate losses in, our market-making business.

The growth of electronic trading and the introduction of new technology in the markets in which our market-making business operates may adversely affect this business and may increase competition.

The continued growth of electronic trading and the introduction of new technologies is changing our market-making business and presenting new challenges. Securities, futures and options transactions are increasingly occurring electronically, through alternative trading systems. It appears that the trend toward alternative trading systems will continue to accelerate. This acceleration could further increase program trading, increase the speed of transactions and decrease our ability to participate in transactions as principal, which would reduce the profitability of our market-making business. Some of these alternative trading systems compete with our market-making business and with our algorithmic trading platform, and we may experience continued competitive pressures in these and other areas. Significant resources have been invested in the development of our electronic trading systems, which includes our ATM business, but there is no assurance that the revenues generated by these systems will yield an adequate return on the investment, particularly given the increased program trading and increased percentage of stocks trading off of the historically manual trading markets.

We are subject to potential losses and default risks as a result of our clearing and execution activities.

As a clearing member firm providing services to certain of our brokerage customers, we are ultimately responsible for their financial performance in connection with various securities transactions. Our clearing operations require a commitment of our capital and involve risks of losses due to the potential failure of our customers to perform their obligations under these transactions. We are required to finance customers' unsettled positions from time to time, and we could be held responsible for the defaults of those customers. If customers default on their obligations, we remain financially liable for such obligations, and while some of these obligations may be collateralized, we are still subject to market risk in the liquidation of customer collateral to satisfy those obligations. While we have risk management procedures designed to mitigate certain risks, there can be no assurance that our risk management procedures will be adequate. Although we regularly review our credit exposure to customers, default risk may arise from events or circumstances that may be difficult to detect or foresee. Default by our customers may also give rise to the Company incurring penalties imposed by execution venues, regulatory authorities and clearing and settlement organizations. Any liability arising from clearing operations could have a material adverse effect on our business, financial condition and results of operations.

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We are also exposed to credit risk from third parties that owe us money, securities or other obligations, including our trading counterparties. These parties may default on their obligations to us due to bankruptcy, lack of liquidity, operational failure or other reasons, and we could be held responsible for such defaults. In addition, customer trading errors may cause us to incur financial losses, which customers may be unable or unwilling to cover. Volatile securities markets, credit markets and regulatory changes may increase our exposure to our customers' and counterparties' credit profiles, which could adversely affect our financial condition and operating results. Our review of the credit risk of customers and trading counterparties may not be adequate to provide sufficient protection from these risks.

Our securities business and related clearing operations expose us to material liquidity risk.

We may be required to provide considerable additional funds with clearing and settlement organizations of which we are members, such as the National Securities Clearing Corporation ("NSCC") or Depository Trust and Clearing Corporation in the U.S., especially during periods of high market volatility or when we are obligated to clear large notional amounts of securities that are not eligible for settlement through the NSCC's Continuous Net Settlement system and, consequently, may be subject to higher margin requirements. In addition, regulatory agencies have recently required these clearing and settlement organizations to increase the level of margin deposit requirements, and they may continue to do so in the future. We rely on our excess cash, certain established credit facilities and the use of outsourced clearing arrangements to meet or reduce these demands. While we have historically met requests for additional margin deposits, there is no guarantee that our excess cash and our established credit facilities and clearing arrangements will be sufficient for future needs, particularly if there is an increase in requirements. There is also no guarantee that these established credit facilities will be extended beyond their expiration.

As a clearing member firm of securities clearing houses in the U.S., we are also exposed to clearing member credit risk. Securities clearing houses require member firms to deposit cash and/or government securities to a clearing fund. If a clearing member defaults in its obligations to the clearing house in an amount larger than its own margin and clearing fund deposits, the shortfall is absorbed pro rata from the deposits of the other clearing members. The clearing houses of which we are members also have the authority to assess their members for additional funds if the clearing fund is depleted. A large clearing member default could result in a substantial cost to us if we are required to pay such assessments.

In certain jurisdictions we are dependent on third-party clearing agents and any failures by such clearing agents could materially impact our business and operating results.

In certain jurisdictions we are dependent on agents for the clearing and settlement of securities transactions. If our agents fail to properly facilitate the clearing and settlement of our customer trades, we could be subject to financial, legal and regulatory risks and costs that may impact our business and operating results. In addition, it could cause our clients to reduce or cease their trading with us, which would adversely affect our revenues and financial results.

Moreover, certain of the clearing agreements provide our clearing agents with rights to increase our deposit requirements or to terminate the agreements upon short notice. There is no guarantee we will be able to satisfy any increased deposit requirements within the time frames demanded by our clearing agents, and if we fail to satisfy such demands on a timely basis, it could constitute a default under our clearing agreements. If our clearing agents terminate a clearing agreement on short notice, there is no guarantee that we could obtain alternative services in a timely manner and any interruption of the normal course of our trading and clearing operations could have a material impact on our business and results of operations.

Our clearing and execution operations are global and international market events could materially adversely impact our financial results.

Because we offer brokerage products and services on a global basis, our revenues derived from non-U.S. operations are subject to risk of loss from social or political instability, changes in government policies or policies of central banks, downgrades in the credit ratings of sovereign countries, expropriation, nationalization, confiscation of assets and unfavorable legislative and political developments in such non-U.S. jurisdictions. Revenues from the trading of non-U.S. securities may be subject to negative fluctuations as a result of the above factors. The impact of these fluctuations on our results could be magnified because generally non-U.S. trading markets, particularly in emerging market countries, are smaller, less liquid and more volatile than U.S. trading markets.

Decreases in equity trading activity by active fund managers and declining securities prices could harm our business and profitability.

Declines in the trading activity of active fund managers generally result in lower revenues from our brokerage products and services. In addition, securities' price declines adversely affect our trading commissions outside North America, which are based on the value of transactions. The demand for our brokerage products and services is directly affected by factors such as economic, regulatory and political conditions that may lead to decreased trading activity and prices in the securities markets in the U.S. and in all of the foreign markets we serve. Significant flows of investments out of actively managed equity funds have

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curtailed their trading activity, which has weighed on our buy-side trading volumes and the use of some of our higher value services. Volatility levels also impact the amount of trading activity. Sustained periods of low volatility can result in lower levels of trading activity and trading activity tends to decline in periods following extreme levels of volatility. In addition, any substantial shift from active fund management to passive fund management could have an adverse effect on our trading commissions.

The Company's revenues and, in particular, its ability to earn incentive and investment income, would be adversely affected if its investment funds fall beneath their "high-water marks" as a result of negative performance or if there are reversals to previously accrued incentive fees.

Incentive income, which has historically comprised a substantial portion of the Company's investment management business annual revenues, is, in most cases, subject to "high-water marks" whereby incentive income is earned by the Company only to the extent that the net asset value of an investment advisory product at the end of a measurement period exceeds the highest net asset value as of the end of a preceding measurement period for which the Company earned incentive income. 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 crystalized. For a majority of the 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. For our private equity funds, the incentive fee crystallizes upon realization of the investment. In those circumstances, until the investment is realized, the accrued incentive fees are subject to reversal even if those accruals were made in prior years. The Company's incentive allocations are also subject, in some cases, to performance hurdles or benchmarks. To the extent the Company's investment funds experience negative investment performance, the investors in or beneficial owners of these investment funds would need to recover cumulative losses before the Company can earn investment income at the end of the performance period with respect to the investments of those who previously suffered losses.

The Company's ability to increase revenues and improve profitability will depend on increasing assets under management in existing investment strategies and developing and marketing new investment products and strategies, including identifying and hiring or affiliating with new investment teams.

The Company's investment management business generates management and incentive fee income based on its assets under management. If the Company is unable to increase its assets under management in its existing products it may be difficult to increase its revenues. The Company may launch new investment management products and hire or affiliate with new investment teams focusing on new investment strategies. If these products or strategies are not successful, or if the Company is unable to hire or affiliate with new investment teams, or successfully manage its relationships with its affiliated investment teams, the Company's profitability could be adversely affected.

Certain of the Company's investment funds may invest in relatively high-risk, illiquid assets, and the Company may fail to realize any profits from these activities for a considerable period of time or lose some or all of the principal amounts of these investments.

Certain of the Company's investment funds invest a significant portion of their assets in securities that are not publicly traded. In many cases, they may be prohibited by contract or by applicable securities laws from selling such securities for a period of time or there may not be a public market for such securities. Even if the securities are publicly traded, large holdings of securities can often be disposed of only over a substantial length of time, exposing the investment returns to risks of downward movement in market prices during the disposition period. Accordingly, under certain conditions, the Company's investment funds may be forced to either sell securities at lower prices than they had expected to realize or defer, potentially for a considerable period of time, sales that they had planned to make. Investing in these types of investments can involve a high degree of risk, and the Company's investment funds may lose some or all of the principal amount of such investments, including our own invested capital.

The due diligence process that the Company's investment management business undertakes in connection with investments by the Company's investment funds is inherently limited and may not reveal all facts that may be relevant in connection with making an investment.

Before making investments, particularly investments in securities that are not publicly traded, the Company endeavors to conduct a due diligence review of such investment that it deems reasonable and appropriate based on the facts and circumstances applicable to each investment. When conducting due diligence, the Company is often required to evaluate critical and complex business, financial, tax, accounting, environmental and legal issues. Outside consultants, legal advisors, accountants, investment bankers and financial analysts may be involved in the due diligence process in varying degrees depending on the type of investment. Nevertheless, when conducting due diligence and making an assessment regarding an investment, the Company is limited to the resources available, including information provided by the target of the investment and, in some circumstances, third party investigations. The due diligence investigation that the Company conducts with respect

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to any investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. Moreover, such an investigation will not necessarily result in the investment being successful, which may adversely affect the performance of the Company's investment funds and the Company's ability to generate returns on its own invested capital from any such investment.

Investors and beneficial owners in the Company's hedge funds can generally redeem investments with prior notice. The rate of redemptions could accelerate at any time. Historically, redemptions have created difficulties in managing the liquidity of certain of the Company's hedge funds, reduced assets under management and adversely affected the Company's revenues, and may do so in the future.

Investors and beneficial owners in the Company's hedge funds may generally redeem their investments with prior notice, subject to certain initial holding periods. Investors may reduce the aggregate amount of their investments, or transfer their investments to other hedge funds or asset managers with different fee rate arrangements, for any number of reasons, including investment performance, changes in prevailing interest rates and financial market performance. Furthermore, investors in the Company's hedge funds may be investors in products managed by other asset managers where redemptions have been restricted or suspended. Such investors may redeem capital from Company's hedge funds, even if the Company's hedge funds' performance is superior, due to an inability to redeem capital from other managers. Increased volatility in global markets could accelerate the pace of redemptions. Redemptions of investments in the Company's hedge funds could also take place more quickly than assets may be sold by those hedge funds to meet the price of such redemptions, which could result in the relevant hedge funds and/or the Company being in breach of applicable legal, regulatory and contractual requirements in relation to such redemptions, resulting in possible regulatory and investor actions against the Company and/or the Company's hedge funds. If the Company's hedge funds underperform, existing investors may decide to reduce or redeem their investments or transfer asset management responsibility to other asset managers and the Company may be unable to obtain new investment management business. Any such action could potentially cause further redemptions and/or make it more difficult to attract new investors.

The redemption of investments in the Company's hedge funds could also adversely affect the revenues of the Company's investment management business, which are substantially dependent upon its assets under management. If redemptions of investments cause revenues to decline, they would likely have a material adverse effect on our business, results of operations or financial condition. If market conditions, negative performance or other factors cause an increased level of redemption activity returns, it could become more difficult to manage the liquidity requirements of the Company's hedge funds, making it more difficult or more costly for the Company's hedge funds to liquidate positions rapidly to meet redemption requests or otherwise. This in turn may negatively impact the Company's returns on its own invested capital.

In addition to the impact on the market value of assets under management, illiquidity and volatility of the global financial markets could negatively affect the ability of the Company's investment management business to manage inflows and outflows from the Company's hedge funds. A number of asset management firms, including the Company's investment management business, have in the past exercised, and may in the future exercise, their rights to limit, and in some cases, suspend, redemptions from the investment management products they advise. The Company's investment management business has also negotiated, and may in the future negotiate, with investors or exercise such rights in an attempt to limit redemptions or create a variety of other investor structures to bring assets and liquidity requirements into a more manageable balance. To the extent that the Company's investment management business has negotiated with investors to limit redemptions, it may be likely that such investors will continue to seek further redemptions in the future. Such actions may have an adverse effect on the ability of the Company's hedge funds to attract new capital or to develop new investment platforms. Poor performance relative to other asset management firms may result in reduced investments in the Company's hedge funds and increased redemptions. As a result, investment underperformance would likely have a material adverse effect on the Company's results of operations and financial condition.

Investments made by investment funds, including the investments of the Company's own capital in the Company's investment funds, are subject to other additional risks.

Investments by the Company's investment funds are subject to certain risks that may result in losses. Decreases to assets under management as a result of investment losses or client redemptions may have a material adverse effect on the Company's revenues, net income and cash flows and could harm our ability to maintain or grow assets under management in existing investment funds or raise additional funds in the future. Additional risks include the following:

•Generally, there are few limitations on investment funds' strategies, which are often subject to the sole discretion of the management company or the general partner of such funds.

•Investment funds may engage in short selling, which is subject to a theoretically unlimited risk of loss because there is no limit on how much the price of a security sold short may appreciate before the short position is closed out. An investment fund may be subject to losses if a security lender demands return of the lent securities and an alternative lending source cannot be found or if the investment fund is otherwise unable to borrow securities that are necessary to

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hedge its positions. Furthermore, the SEC and other regulatory authorities outside the United States have imposed trading restrictions and reporting requirements on short selling, which in certain circumstances may impair an investment fund's ability to use short selling effectively.

•The efficacy of investment and trading strategies depend largely on the ability to establish and maintain an overall market position through a combination of financial instruments. An investment fund's trading orders may not be executed in a timely and efficient manner due to various circumstances, including systems failures or human error. In such event, the investment fund might only be able to acquire some but not all of the components of the position, or if the overall position were in need of adjustment, the investment fund might not be able to make such an adjustment. As a result, an investment fund would not be able to achieve the market position selected by the management company or general partner of such fund, and might incur a loss in liquidating its position.

•Credit risk may arise through a default by one of several large institutions that are dependent on one another to meet their respective liquidity or operational needs, so that a default by one institution causes a series of defaults by the other institutions. This "systemic risk" may adversely affect the financial intermediaries (such as clearing agencies, clearing houses, banks, securities firms, other counterparties and exchanges) with which the investment funds interact on a daily basis.

•Investment funds are subject to risks due to the potential illiquidity of assets. Investment funds may make investments or hold trading positions in markets that are volatile and which may become illiquid. The timely sale of trading positions can be impaired by decreased trading volume, increased price volatility, concentrated trading positions, limitations on the ability to transfer positions in highly specialized or structured transactions to which they may be a party, and changes in industry and government regulations. It may be impossible or highly costly for investment funds to liquidate positions rapidly to meet margin calls, redemption requests or otherwise, particularly if there are other market participants seeking to dispose of similar assets at the same time, if the relevant market is otherwise moving against a position or in the event of trading halts or daily price movement limitations on the market. In addition, increased levels of redemptions may result in increased illiquidity as more liquid assets are sold to fund redemptions.

•Investment fund assets are subject to risks relating to investments in commodities, futures, options and other derivatives, the prices of which are highly volatile and may be subject to the theoretically unlimited risk of loss in certain circumstances. Price movements of commodities, futures and options contracts and payments pursuant to swap agreements are influenced by, among other things, interest rates, changing supply and demand relationships, trade, fiscal, monetary and exchange control programs and policies of governments and national and international political and economic events and policies. The value of futures, options and swap agreements also depends upon the price of the commodities underlying them. In addition, investment funds' assets are subject to the risk of the failure of any of the exchanges on which their positions trade.

•Investment fund assets that are not denominated in the U.S. dollar are subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. Officials in foreign countries may, from time to time, take actions in respect of their currencies that could significantly affect the value of an investment fund's assets denominated in those currencies or the liquidity of such investments. For example, a foreign government may unilaterally devalue its currency against other currencies, which would typically have the effect of reducing the U.S. dollar value of investments denominated in that currency. A foreign government may also limit the convertibility or repatriation of its currency or assets denominated in that currency. While the Company generally expects to hedge its exposure to currencies other than the U.S. dollar, and may do so through foreign currency futures contracts and options thereon, forward foreign currency exchange contracts, swaps or any combination thereof, but there can be no assurance that such hedging strategies will be implemented, or if implemented, will be effective. While an investment fund may enter into currency hedging transactions to seek to reduce risk, such transactions may result in a poorer overall performance than if it had not engaged in such hedging transactions. For a variety of reasons, the Company may not seek to establish a perfect correlation between the hedging instruments utilized and the portfolio holdings being hedged. Such an imperfect correlation may prevent the Company from achieving the intended hedge or expose an investment fund to risk of loss.

•Investment funds are also subject to the risk that war, terrorism, and related geopolitical events may lead to increased short-term market volatility and have adverse long-term effects on the U.S. and world economies and markets generally, as well as adverse effects on issuers of securities and the value of investments. War, terrorism, and related geopolitical events have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and non-U.S. economies and markets generally. Those events, as well as other changes in U.S. and non-U.S. economic and political conditions, also could adversely affect individual issuers or

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related groups of issuers, securities markets, interest rates, credit ratings, inflation, investor sentiment and other factors affecting the value of the investment fund's assets.

If the Company's investment fund's counterparty for any of its derivative or non-derivative contracts defaults on the performance of those contracts, the Company may not be able to cover its exposure under the relevant contract.

The Company's investment funds enter into numerous types of financing arrangements with a wide array of counterparties around the world, including loans, hedge contracts, swaps, repurchase agreements and other derivative and non-derivative contracts. The terms of these contracts are generally complex and often customized and generally are not subject to regulatory oversight. The Company is subject to the risk that the counterparty to one or more of these contracts may default, either voluntarily or involuntarily, on its performance under the contract. Any such default may occur at any time without notice. Additionally, the Company may not be able to take action to cover its exposure if a counterparty defaults under such a contract, either because of a lack of the contractual ability or because market conditions make it difficult to take effective action. The impact of market stress or counterparty financial condition may not be accurately foreseen or evaluated and, as a result, the Company may not take sufficient action to reduce its risks effectively.

Counterparty risk is accentuated where the investment management product has concentrated its transactions with a single or small group of counterparties. Generally, investment funds are not restricted from concentrating any or all of their transactions with one counterparty. Moreover, the Company's internal review of the creditworthiness of their counterparties may prove inaccurate. The absence of a regulated market to facilitate settlement and the evaluation of creditworthiness may increase the potential for losses.

In addition, these financing arrangements often contain provisions that give counterparties the ability to terminate the arrangements if any of a number of defaults occurs with respect to the Company's investment funds, including declines in performance or assets under management and losses of key management personnel, each of which may be beyond our control. In the event of any such termination, the Company's investment funds may not be able to enter into alternative arrangements with other counterparties and our business may be materially adversely affected.

The Company may suffer losses in connection with the insolvency of prime brokers, custodians, administrators and other agents whose services the Company uses and who may hold assets of the Company's investment funds.

Most of the Company's investment funds use the services of prime brokers, custodians, administrators or other agents to carry out certain securities transactions and to conduct certain business of the Company's investment funds. In the event of the insolvency of a prime broker and/or custodian, the Company's investment funds might not be able to recover equivalent assets in full as they may rank among the prime broker's and custodian's unsecured creditors in relation to assets which the prime broker or custodian borrows, lends or otherwise uses. In addition, the Company's investment funds' cash held with a prime broker or custodian (if any) may not be segregated from the prime broker's or custodian's own cash, and the investment funds will therefore rank as unsecured creditors in relation thereto.

Risk management activities may materially adversely affect the return on the Company's investment funds' investments if such activities do not effectively limit exposure to decreases in investment values or if such exposure is overestimated.

When managing the Company's investment funds' exposure to market risks, the relevant investment management product may use forward contracts, options, swaps, caps, collars and floors or pursue other strategies or use other forms of derivative financial instruments to limit its exposure to changes in the relative values of investments that may result from market developments, including changes in interest rates, currency exchange rates and asset prices. The success of such derivative transactions generally will depend on the Company's ability to accurately predict market changes in a timely fashion, the degree of correlation between price movements of a derivative instrument, the position being hedged, the creditworthiness of the counterparty and other factors. As a result, these transactions may result in poorer overall investment performance than if they had not been executed. Such transactions may also limit the opportunity for gain if the value of a hedged position increases. A perfect correlation between the instruments used in a hedging or other derivative transaction and the position being hedged may not be attained. An imperfect correlation could give rise to a loss. Also, it may not be possible to fully or perfectly limit exposure against all changes in the value of an investment because the value of an investment is likely to fluctuate as a result of a number of factors, many of which will be beyond the Company's control or ability to hedge.

Fluctuations in currency exchange rates could materially affect the Company's investment management business and its results of operations and financial condition.

The Company uses U.S. dollars as its reporting currency. Investments in the Company's investment funds may be made in different currencies, including Euros, Pounds Sterling, Australian Dollar and Yen. In addition, the Company's investment funds may hold investments denominated in many foreign currencies. To the extent that the Company's revenues from its investment management business are based on assets under management denominated in such foreign currencies, our reported revenues

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may be significantly affected by the exchange rate of the U.S. dollar against these currencies. Typically, an increase in the exchange rate between U.S. dollars and these currencies will reduce the impact of revenues denominated in these currencies in the financial results of our investment management business. For example, management fee revenues derived from each Euro and Australian Dollar of assets under management denominated in Euros and Australian Dollar will decline in U.S. dollar terms if the value of the U.S. dollar appreciates against the Euro and Australian Dollar. In addition, the calculation of the amount of assets under management is affected by exchange rate movements as assets under management denominated in foreign currencies are converted to U.S. dollars. The Company's investment management business also incurs a portion of its expenditures in currencies other than U.S. dollars. As a result, our investment management business is subject to the effects of exchange rate fluctuations with respect to any currency conversions and the Company's ability to hedge these risks and the cost of such hedging or the Company's decision not to hedge could impact the performance of the Company's investment funds and our investment management business and its results of operations and financial condition.

The Company's real estate investments are subject to the risks inherent in the ownership and operation of real estate and the construction and development of real estate.

The Company's real estate investments are subject to the risks inherent in the ownership and operation of real estate and real estate-related businesses and assets. These risks include those associated with general and local economic conditions, changes in supply of and demand for competing properties in an area, changes in environmental regulations and other laws, various uninsured or uninsurable risks, natural disasters, changes in real property tax rates, changes in interest rates, the reduced availability of mortgage financing which may render the sale or refinancing of properties difficult or impracticable, environmental liabilities, contingent liabilities on disposition of assets, terrorist attacks, war and other factors that are beyond our control. Further, the U.S. Environmental Protection Agency has found that global climate change could increase the severity and perhaps the frequency of extreme weather events, which could subject real property to increased weather-related risks in the coming years. There are also presently a number of current and proposed regulatory initiatives, both domestically and globally, that are geared towards limiting and scaling back the emission of greenhouse gases, which certain scientists have linked to global climate change. Although not known with certainty at this time, such regulation could adversely affect the costs to construct and operate real estate in the coming years, such as through increased energy costs.

The commercial real estate markets in the United States generally have experienced major disruptions in the past due to the lack of available capital, in the form of either debt or equity, and declines in value as a result of overall economic decline. If these conditions were to occur again transaction volume may drop precipitously, negatively impacting the valuation and performance of the Company's real estate investments significantly. Additionally, if the Company acquires direct or indirect interests in undeveloped land or underdeveloped real property, which may often be non-income producing, they will be subject to the risks normally associated with such assets and development activities, including risks relating to the availability and timely receipt of zoning and other regulatory or environmental approvals, the cost, potential for cost overruns and timely completion of construction (including risks beyond the control of the investor, such as weather or labor conditions or material shortages) and the availability of both construction and permanent financing on favorable terms.

Our third party reinsurance business could expose us to losses.

We provide third party reinsurance coverage through our Luxembourg subsidiary, Hollenfels Re S.A ("Hollenfels"). We have written polices relating to property and casualty, workers' compensation, general liability and construction performance bonds and may issue reinsurance policies relating to other types of insurance. Because we write reinsurance, the success of our underwriting efforts depends, in part, upon the policies, procedures and expertise of the ceding companies making the original underwriting decisions. We face the risk that these ceding companies may fail to accurately assess the risks that they assume initially, which, in turn, may lead us to inaccurately assess the risks we assume. If we fail to establish and receive appropriate premium rates or the claims we receive exceed the premiums and retrocession recoverables we are able to collect, we will suffer losses.

We may be unable to purchase retrocession reinsurance and our retrocession agreements subject us to third-party credit risk.

We may enter into retrocession agreements with third parties in order to limit our exposure to losses from the reinsurance coverage provided by Hollenfels. Changes in the availability and cost of retrocession reinsurance, which are subject to market conditions that are outside of our control, may reduce to some extent our ability to use retrocession reinsurance to balance exposures across our reinsurance operations. Accordingly, we may not be able to obtain our desired amounts of retrocession reinsurance. In addition, even if we are able to obtain such reinsurance, we may not be able to negotiate terms that we deem appropriate or acceptable or obtain such reinsurance from entities with satisfactory creditworthiness. While we seek to do business with creditworthy counterparties, if the parties who provide us with retrocession are not able to meet their obligations to us or fail to make timely payments under the terms of our retrocession agreements, we could be materially and adversely affected because we may remain liable under the terms.

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Operational Risks

Our information and technology systems are critical components of our business and operations, and a failure of those systems or other aspects of our business operations may disrupt our business, cause financial loss, increase our legal liability and constrain our growth.

Our operations rely extensively on the secure processing, storage and transmission of confidential financial, personal and other information in our computer systems and networks. Although we take protective measures and devote significant resources to maintaining and upgrading our systems and networks with measures such as intrusion and detection prevention systems, monitoring firewalls to safeguard critical business applications and supervising third party providers that have access to our systems, our computer systems, software and networks may be vulnerable to unauthorized access, computer viruses or other malicious code, and other events that could have a security impact. Additionally, if a client's computer system, network or other technology is compromised by unauthorized access, we may face losses or other adverse consequences by unknowingly entering into unauthorized transactions. If one or more of such events occur, this potentially could jeopardize our or our clients' or counterparties' confidential and other information processed and stored in and transmitted through our computer systems and networks. Furthermore, such events may cause interruptions or malfunctions in our, our clients', our counterparties' or third parties' operations, including the transmission and execution of unauthorized transactions. We may be required to expend significant additional resources to modify our protective measures or to investigate and remediate vulnerabilities or other exposures, and we may be subject to litigation and financial losses that are either not covered or not fully covered through our insurance. The increased use of smartphones, tablets and other mobile devices as well as cloud computing may also heighten these and other operational risks. Similar to other firms, we and our third party providers continue to be the subject of attempted unauthorized access, computer viruses and malware, and cyber attacks designed to disrupt or degrade service or cause other damage and denial of service. Additional challenges are posed by external parties, including foreign state actors. There can be no assurance that such unauthorized access or cyber incidents will not occur in the future, and they could occur more frequently and on a larger scale. We are also subject to laws and regulations relating to the privacy and security of the information of our clients, employees or others, and any failure to comply with these regulations could expose us to liability and/or reputational damage.

Operational risks relating to the failure of data processing systems and other information systems and technology or other infrastructure may disrupt the Company's business and result in losses or limit our operations and growth in the industry.

The Company's business is highly dependent on its ability to process, on a daily basis, a large number of transactions across diverse markets, and the transactions that the Company processes have become increasingly complex. The inability of the Company's systems to accommodate an increasing volume of transactions could also constrain the Company's ability to expand its business. If any of these systems do not operate properly or are disabled, or if there are other shortcomings or failures in the Company's internal processes, people or systems, the Company could suffer impairments, financial loss, a disruption of its business, liability to clients, regulatory intervention or reputational damage.

The Company has outsourced certain aspects of its technology infrastructure including data centers and wide area networks, as well as some trading applications. The Company is dependent on its technology providers to manage and monitor those functions. A disruption of any of the outsourced services would be out of the Company's control and could negatively impact our business. The Company has experienced disruptions on occasion, none of which has been material to the Company's operations and results. However, there can be no guarantee that future material disruptions with these providers will not occur.

The Company also faces the risk of operational failure of or termination of relations with any of the clearing agents, exchanges, clearing houses or other financial intermediaries that the Company uses to facilitate its securities transactions. Any such failure or termination could adversely affect the Company's ability to effect transactions and to manage its exposure to risk.

In addition, the Company's ability to conduct its business may be adversely impacted by a disruption in the infrastructure that supports Company and the communities in which we are located. This may affect, among other things, the Company's financial, accounting or other data processing systems. This may include a disruption involving electrical, communications, transportation or other services used by us or third parties with which the Company conducts business, whether due to fire, other natural disaster, power or communications failure, act of terrorism or war or otherwise. Nearly all of our employees in our primary locations in New York, Boston, San Francisco and London work in close proximity to each other. Although the Company has a formal disaster recovery plan in place, if a disruption occurs in one location and our employees in that location are unable to communicate with or travel to other locations, the Company's ability to service and interact with its clients may suffer, and the Company may not be able to implement successfully contingency plans that depend on communication or travel.

Our business also relies on the secure processing, storage and transmission of confidential and other information in its computer systems and networks. The Company's computer systems, software and networks may be vulnerable to unauthorized access, computer viruses or other malicious code and other events that could have a security impact. If one or more of such events occur, this could jeopardize our or our clients' or counterparties' confidential and other information processed and stored

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in, and transmitted through, the Company's computer systems and networks, or otherwise cause interruptions or malfunctions in our business', its clients', its counterparties' or third parties' operations. The Company may be required to expend significant additional resources to modify its protective measures, to investigate and remediate vulnerabilities or other exposures or to make required notifications, and the Company may be subject to litigation and financial losses that are either not insured against or not fully covered through any insurance maintained by the Company.

Any cyber attack or other security breach of or vulnerability in our technology systems, or those of our clients or other third party vendors we rely on, could have operational impacts, subject us to significant liability and harm our reputation.

Our operations rely heavily on the secure processing, storage and transmission of sensitive and confidential financial, personal and other information in our computer systems and networks. There have been several highly publicized cases involving financial services companies reporting the unauthorized disclosure of client or other confidential information in recent years, as well as cyber attacks involving theft, dissemination and destruction of corporate information or other assets, in some cases as a result of failure to follow procedures by employees or contractors or as a result of actions by third parties. Like other financial services firms, we have been the target of attempted cyber attacks. Cyber attacks can originate from a variety of sources, including third parties affiliated with foreign governments, organized crime or terrorist organizations. Third parties may also attempt to place individuals within our firm or induce employees, clients or other users of our systems to disclose sensitive information or provide access to our data, and these types of risks may be difficult to detect or prevent. Although cybersecurity incidents among financial services firms are on the rise, we are not aware of any material losses relating to cyber attacks or other information security breaches. However, the techniques used in these attacks are increasingly sophisticated, change frequently and are often not recognized until launched. Although we seek to maintain a robust suite of authentication and layered information security controls, these controls could fail to detect, mitigate or remediate these risks in a timely manner. Despite our implementation of protective measures and endeavoring to modify them as circumstances warrant, our computer systems, software and networks may be vulnerable to human error, natural disasters, power loss, spam attacks, unauthorized access, distributed denial of service attacks, computer viruses and other malicious code, and other events that could result in significant liability and damage to our reputation, and have an ongoing impact on the security and stability of our operations.

We also rely on numerous third-party service providers to conduct other aspects of our business operations, and we face similar risks relating to them. While we regularly conduct security assessments on these third-party vendors, we cannot be certain that their information security protocols are sufficient to withstand a cyber attack or other security breach. In addition, in order to access our products and services, our customers may use computers and other devices that are beyond our security control systems and processes.

Notwithstanding the precautions we take, if a cyber attack or other information security breach were to occur, this could jeopardize the information we confidentially maintain, or otherwise cause interruptions in our operations or those of our clients and counterparties, exposing us to liability. As attempted attacks continue to evolve in scope and sophistication, we may be required to expend substantial additional resources to modify or enhance our protective measures, to investigate and remediate vulnerabilities or other exposures or to communicate about cyber attacks to our customers. Though we have insurance against some cyber risks and attacks, we may be subject to litigation and financial losses that exceed our policy limits or are not covered under any of our current insurance policies. A technological breakdown could also interfere with our ability to comply with financial reporting and other regulatory requirements, exposing us to potential disciplinary action by regulators. Additionally, the SEC issued guidance in February 2018 stating that, as a public company, we are expected to have controls and procedures that relate to cybersecurity disclosure, and are required to disclose information relating to certain cyber attacks or other information security breaches in disclosures required to be made under the federal securities laws. Further, successful cyber attacks at other large financial institutions or other market participants, whether or not we are affected, could lead to a general loss of customer confidence in financial institutions that could negatively affect us, including harming the market perception of the effectiveness of our security measures or the financial system in general, which could result in a loss of business.

Further, in light of the high volume of transactions we process, the large number of our clients, partners and counterparties, and the increasing sophistication of malicious actors, a cyber attack could occur and persist for an extended period of time without detection. We expect that any investigation of a cyber attack would take substantial amounts of time and resources, and that there may be extensive delays before we obtain full and reliable information. During such time we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered. All of which would further increase the costs and consequences of such an attack.

We may also be subject to liability under various data protection laws including, for example, the General Data Protection Regulation, or GDPR, adopted by the European Union or the recently enacted California Consumer Privacy Act, or CCPA. We are subject to numerous laws and regulations designed to protect personally identifiable information, such as U.S. federal, state and international laws, including GDPR and CCPA. These laws and regulations are increasing in complexity and number. If any person, including any of our associates, vendors or other service providers, negligently disregards or intentionally breaches our established controls with respect to sensitive or confidential client, employee or other data, or otherwise mismanages or

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misappropriates such data, we could be subject to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution. In addition, unauthorized disclosure of sensitive or confidential client, employee or other data, whether through system failure, vendor fault, employee negligence, fraud or misappropriation, could damage our reputation and cause us to lose clients and related revenue. Potential liability in the event of a security breach of sensitive or confidential data could be significant. Depending on the circumstances giving rise to the breach, this liability may not be subject to a contractual limit or an exclusion of consequential or indirect damages.

Liquidity Risks

Limitations on access to capital by the Company and its subsidiaries could impair its liquidity and its ability to conduct its businesses.

Liquidity, or ready access to funds, is essential to the operations of financial services firms. Failures of financial institutions have often been attributable in large part to insufficient liquidity. Liquidity is of particular importance to our trading and clearing businesses and perceived liquidity issues may affect the willingness of the Company's clients and counterparties to engage in brokerage transactions with us. Our liquidity could be impaired due to circumstances that the Company may be unable to control, such as a general market disruption or an operational problem that affects the Company, its trading clients or third parties. Furthermore, the Company's ability to sell assets may be impaired if other market participants are seeking to sell similar assets at the same time.

The Company primarily depends on its subsidiaries to fund its operations. Cowen and Company, ATM Execution, Cowen Prime, Cowen Execution, and Westminster are subject to the net capital requirements of the SEC and various self-regulatory organizations of which they are members. These requirements typically specify the minimum level of net capital a broker-dealer must maintain and also mandate that a significant part of its assets be kept in relatively liquid form. Cowen International Ltd, and Cowen Execution Ltd. are also subject to capital requirements in the U.K. by the FCA. Any failure to comply with these capital requirements could impair the Company's ability to conduct its investment banking businesses.

We are a holding company and rely upon our subsidiaries for cash flow to make payments of principal and interest on our outstanding indebtedness.

We are a holding company with no business operations or assets other than the capital stock of our direct and indirect subsidiaries. Consequently, we are dependent on dividends, distributions, loans and other payments from these subsidiaries to make payments of principal and interest on all of our indebtedness including our senior notes due 2024 (the "2024 Notes"), our senior notes due 2027 (the "2027 Notes"), our senior notes due 2033 (the "2033 Notes") and our convertible notes due 2022 (the "2022 Convertible Notes")(the 2022 Convertible Notes, and together with the 2024 Notes, the 2027 Notes and the 2033 Notes, the "Notes"). The ability of our subsidiaries to pay dividends and make other payments to us will depend on their cash flows and earnings, which, in turn, will be affected by all of the factors discussed in this annual report. The ability of our direct and indirect subsidiaries to pay dividends and make distributions to us may be restricted by, among other things, applicable laws and regulations and by the terms of any debt agreements or other agreements into which they enter. If we are unable to obtain funds from our direct and indirect subsidiaries as a result of restrictions under their debt or other agreements, applicable laws and regulations or otherwise, we may not be able to pay cash interest or principal on the Notes when due.

Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.

Our ability to make scheduled payments of the principal to pay interest on or to refinance our indebtedness, including the Notes, depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. Our business may not continue to generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.

Despite our current consolidated debt levels, we may still incur substantially more debt or take other actions which would intensify the risks discussed above.

Despite our current consolidated debt levels, we may be able to incur substantially more debt in the future, including secured debt. While there are some provisions under the terms of the indentures governing the 2024 Notes that could restrict us from incurring additional debt, so long as we comply with the financial covenants in the 2024 Notes we are not restricted from incurring additional debt, securing existing or future debt, recapitalizing our debt or taking a number of other actions that are not limited by the terms of the indentures governing the Notes but that could diminish our ability to make payments on the Notes.

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The conditional conversion feature of the 2022 Convertible Notes, if triggered, may adversely affect our financial condition and operating results.

In the event the conditional conversion feature of the 2022 Convertible Notes is triggered, holders of 2022 Convertible Notes will be entitled to convert the 2022 Convertible Notes at any time during specified periods at their option. If one or more holders elect to convert their 2022 Convertible Notes, we may be required to pay cash to settle any such conversion, which could adversely affect our liquidity.

The accounting method for convertible debt securities that may be settled in cash, such as the 2022 Convertible Notes, could have a material effect on our reported financial results.

Accounting Standards Codification ("The Accounting Standards") 470-20, Debt with Conversion and Other Options, or ASC 470-20 requires an entity to separately account for the liability and equity components of convertible debt instruments whose conversion may be settled entirely or partially in cash (such as the 2022 Convertible Notes) in a manner that reflects the issuer's economic interest cost for non-convertible debt. The equity component of the 2022 Convertible Notes is included in the additional paid-in capital section of our stockholders' equity on our consolidated balance sheet, and the value of the equity component is treated as original issue discount for purposes of accounting for the debt component. This original issue discount will be amortized to non-cash interest expense over the term of the 2022 Convertible Notes, and we will record a greater amount of non-cash interest expense as a result of this amortization. Accordingly, we will report lower net income in our financial results because ASC 470-20 will require the interest expense associated with the 2022 Convertible Notes to include both amortization of the original issue discount and the 2022 Convertible Notes' coupon interest, which could adversely affect our reported or future financial results and the trading price of our securities.

In addition, under certain circumstances, convertible debt instruments whose conversion may be settled entirely or partly in cash (such as the 2022 Convertible Notes) are currently accounted for using the treasury stock method. Under this method, the shares issuable upon conversion of the 2022 Convertible Notes are not included in the calculation of diluted earnings per share unless the conversion value of the 2022 Convertible Notes exceeds their principal amount at the end of the relevant reporting period. If the conversion value exceeds their principal amount, then, for diluted earnings per share purposes, the 2022 Convertible Notes are accounted for as if the number of shares of common stock that would be necessary to settle the excess, if we elected to settle the excess in shares, are issued. The Accounting Standards in the future may not continue to permit the use of the treasury stock method. If we are unable to use the treasury stock method in accounting for the shares, if any, issuable upon conversion of the 2022 Convertible Notes, then our diluted earnings per share could be adversely affected.

As a result, we may experience related non-cash volatility to our net income (loss). In addition, as a result of the amortization of the debt discount, the interest expense associated with the 2022 Convertible Notes will be greater than the coupon rate on the 2022 Convertible Notes, which will result in lower reported net income.

Certain provisions in the indentures governing the 2022 Convertible Notes could delay or prevent an otherwise beneficial takeover or takeover attempt of us.

Certain provisions in the 2022 Convertible Notes and the indenture governing the 2022 Convertible Notes could make it more difficult or more expensive for a third party to acquire us. For example, if a takeover would constitute a fundamental change, holders of the 2022 Convertible Notes will have the right to require us to repurchase their 2022 Convertible Notes in cash. In addition, if a takeover constitutes a make-whole fundamental change, we may be required to increase the conversion rate for holders who convert their 2022 Convertible Notes in connection with such takeover. In either case, and in other cases, our obligations under the 2022 Convertible Notes and the indenture governing the 2022 Convertible Notes could increase the cost of acquiring us or otherwise discourage a third party from acquiring us or removing incumbent management.

Litigation and Regulatory Risk

The Company's subsidiaries may become subject to additional regulations which could increase the costs and burdens of compliance or impose additional restrictions which could have a material adverse effect on the Company's businesses and the performance of the Company's investment funds.

Market disruptions like those experienced in 2008 have led to an increase in governmental as well as regulatory scrutiny from a variety of regulators, including the SEC, CFTC, FINRA, NFA, U.S. Treasury, the NYSE and state attorneys general. Penalties and fines sought by regulatory authorities have increased substantially over the last several years. In light of current conditions in the global financial markets and the global economy, regulators have increased their focus on the regulation of the financial services industry. The Company may be adversely affected by changes in the interpretation or enforcement of existing laws and rules by these governmental authorities and self-regulatory organizations. The Company also may be adversely affected as a result of new or revised legislation or regulations imposed by the SEC, other U.S. or foreign governmental regulatory authorities or self-regulatory organizations that supervise the financial markets. The Company could be fined,

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prohibited from engaging in some of its business activities or subjected to limitations or conditions on its business activities. In addition, the Company could incur significant expense associated with compliance with any such legislation or regulations or the regulatory and enforcement environment generally. Substantial legal liability or significant regulatory action against the Company could have a material adverse effect on the financial condition and results of operations of the Company or cause significant reputational harm to the Company, which could seriously affect its business prospects.

The activities of certain of the Company's subsidiaries and affiliates are regulated primarily within the U.S. by the SEC, FINRA, the NFA, the CFTC and other self-regulatory organizations, as well as various state agencies, and are also subject to regulation by other agencies in the various jurisdictions in which they operate and are offered, including the FCA, the European Securities and Markets Authority and the SFC of Hong Kong. Certain legislation proposing greater regulation of the industry is regularly considered by the U.S. Congress - as well as by the governing bodies of non-U.S. jurisdictions - and from time to time adopted as in the case of the Dodd-Frank Act in the U.S. and MiFID II in the E.U.

The investment advisers responsible for the Company's investment management business are all registered as investment advisers with the SEC or rely upon the registration of an affiliated adviser. Certain investment advisors and/or the investment funds they advise are also subject to regulation by various regulatory authorities outside the U.S., including the U.K. FCA, the Swedish FCA and the European Securities and Markets Authority and may indirectly be subject to MiFID II regulations. Moreover, recent rulemaking by the SEC and certain non-U.S. regulatory bodies have imposed trading restrictions and reporting requirements on short selling, which have impacted certain of the investment strategies implemented on behalf of the investment funds it manages, and continued restrictions on or further regulations of short sales could also negatively impact their performance.

These and other regulators in these jurisdictions have broad regulatory powers dealing with all aspects of financial services including, among other things, the authority to make inquiries of companies regarding compliance with applicable regulations, to grant permits and to regulate marketing and sales practices and the maintenance of adequate financial resources as well as significant reporting obligations to regulatory authorities. Under the E.U. Alternative Investment Fund Managers Directive, the Company will only be permitted to actively market its investment funds in the E.U. if certain disclosure and reporting obligations are met, and certain cooperation arrangements with the domicile of the investment vehicle are in place. As such, the Company may need to modify its strategies or operations, face increased constraints on its investment management business or incur additional costs in order to satisfy new regulatory requirements or to compete in a changed business environment. It is difficult to predict the impact of such legislative initiatives on the Company and the markets in which it operates and/or invests.

It is difficult to predict what other changes may be instituted in the future in the regulation of the Company or the markets in which they invest, or the counterparties with which it does business, in addition to those changes already proposed or adopted in the U.S. or other countries. Any such regulation could have a material adverse effect on the profit potential of the Company's operations.

Finally, financial services firms are subject to numerous perceived or actual conflicts of interest, which have drawn and which we expect will continue to draw scrutiny from the SEC, other federal and state regulators, and self-regulatory organizations. For example, the research areas of investment banks have been and remain the subject of heightened regulatory scrutiny, which has led to increased restrictions on the interaction between equity research analysts and investment banking personnel at securities firms. Regulations have also been focusing on potential conflicts of interest or issues relating to impermissible disclosure of material nonpublic information. Appropriately dealing with conflicts of interest is complex and difficult, and our reputation could be damaged if it fails to do so. Such policies and procedures to address or limit actual or perceived conflicts may also result in increased costs, additional operational personnel and increased regulatory risk. Failure to adhere to these policies and procedures may result in regulatory sanctions or client litigation.

The Company is subject to third party litigation risk and regulatory risk which could result in significant liabilities and reputational harm which, in turn, could materially adversely affect its business, results of operations and financial condition.

The Company depends to a large extent on its reputation for integrity and high-caliber professional services to attract and retain clients. As a result, if a client is not satisfied with the Company's services, it may be relatively more damaging to the Company than to other businesses. Moreover, the Company's role as advisor to clients on underwriting or merger and acquisition transactions involves complex analysis and the exercise of professional judgment, including rendering "fairness opinions" in connection with mergers and other transactions. Such activities may subject the Company to the risk of significant legal liabilities, not covered by insurance, to clients and aggrieved third parties, including stockholders of clients who could commence litigation against the Company. Moreover, many of the clients within the Company’s sectors tend to have higher risk profiles than more established companies, particularly healthcare and cannabis companies. Cowen currently is, and may in the future be, named as a defendant in securities-class action lawsuits alleging violations of the securities laws. Although the Company's investment banking engagements typically include broad indemnities from its clients and provisions to limit

22

exposure to legal claims relating to such services, these provisions may not protect the Company, may not be enforceable, or may be with foreign companies requiring enforcement in foreign jurisdictions which may raise the costs and decrease the likelihood of enforcement. As a result, the Company may incur significant legal and other expenses in defending against litigation and may be required to pay substantial damages for settlements and/or adverse judgments. In addition, in some instances Cowen Prime serves as a registered investment advisor providing advice to retail investors and retaining discretion over some retail investment accounts. The Company could be exposed to potential litigation and liability if any of these clients are not satisfied with the investment advisory services being provided. Substantial legal liability or significant regulatory action against the Company could have a material adverse effect on our results of operations or cause significant reputational harm, which could seriously harm our business and prospects.

In general, the Company is exposed to risk of litigation by investors in its investment management business if the management of any of its investment funds is alleged to have been grossly negligent or fraudulent. Investors or beneficial owners of investment funds could sue to recover amounts lost due to any alleged misconduct, up to the entire amount of the loss. In addition, the Company faces the risk of litigation from investors and beneficial owners of any of its investment funds if applicable restrictions are violated. In addition, the Company is exposed to risks of litigation or investigation relating to transactions that presented conflicts of interest that were not properly addressed. In the majority of such actions the Company would be obligated to bear legal, settlement and other costs, which may be in excess of any available insurance coverage. In addition, although the Company is contractually entitled to indemnification from its investment funds, our rights to indemnification may be challenged. If the Company is required to incur all or a portion of the costs arising out of litigation or investigations as a result of inadequate insurance proceeds, if any, or is not wholly indemnified, our business, results of operations and financial condition could be materially adversely affected. In its investment management business, the Company is exposed to the risk of litigation if an investment fund suffers catastrophic losses due to the failure of a particular investment strategy or due to the trading activity of an employee who has violated market rules or regulations. Any litigation arising in such circumstances is likely to be protracted, expensive and surrounded by circumstances which are materially damaging to the Company's reputation and businesses.

The potential for conflicts of interest within the Company, and a failure to appropriately identify and deal with conflicts of interest could adversely affect our businesses.

Due to the combination of our investment management and investment banking businesses, we face an increased potential for conflicts of interest, including situations where our services to a particular client or investor or our own interests in our investments conflict with the interests of another client. Such conflicts may also arise if our investment banking businesses have access to material non-public information that may not be shared with our investment management business or vice versa. Additionally, our regulators have the ability to scrutinize our activities for potential conflicts of interest, including through detailed examinations of specific transactions.

Appropriately identifying and dealing with conflicts of interest is complex and difficult, and the willingness of clients to enter into transactions or engagements in which such a conflict might arise may be affected if we fail to identify and appropriately address potential conflicts of interest. In addition, potential or perceived conflicts could give rise to litigation or enforcement actions.

Increased regulatory focus could result in regulation that may limit the manner in which the Company and its investment management business invest, materially impacting the Company's business.

The Company's investment management business may be adversely affected if new or revised legislation or regulations are enacted, or by changes in the interpretation or enforcement of existing rules and regulations imposed by the SEC, other U.S. or foreign governmental regulatory authorities or self-regulatory organizations that supervise the financial markets and their participants. Such changes could place limitations on the type of investor that can invest in the Company's investment funds or on the conditions under which such investors may invest. Further, such changes may limit the scope of investing activities that may be undertaken by the Company's investment funds. It is impossible to determine the extent of the impact of any new or recently enacted laws, including the Dodd-Frank Act and MiFID II, or any other regulations or initiatives that may be proposed, or whether any proposed regulations or initiatives will become law. Compliance with any new laws or regulations could be difficult and expensive and affect the manner in which the Company's investment management business conducts itself, which may adversely impact its results of operations, financial condition and prospects.

Additionally, as a result of highly publicized financial scandals, investors, regulators and the general public have exhibited concerns over the integrity of both the U.S. financial markets and the regulatory oversight of these markets. As a result, the business environment in which Company's investment management business operates is subject to heightened regulation. With respect to the Company's investment funds, in recent years, there has been debate in both U.S. and foreign governments about new rules or regulations, including increased oversight or taxation, in addition to the recently enacted legislation described above. As calls for additional regulation have increased, there may be a related increase in regulatory investigations of the

23

trading and other investment activities of investment funds, including the Company's investment funds. Such investigations may impose additional expenses on the Company, may require the attention of senior management and may result in fines if any of the Company's investment funds are deemed to have violated any regulations.

Our business could be adversely affected by the ongoing impact of MiFID II in Europe.

MiFID II, which went into effect in January 2018, regulates the provision of investment services and activities throughout the European Economic Area. MiFID II requires that investment managers and investment advisors located in the E.U. "unbundle" research costs from commissions. As a result, investment firms subject to MiFID II may no longer pay for research using client commissions or "soft dollars". Such costs must now be paid directly by the investment firm or through a research payment account funded by clients and governed by a budget that is agreed by the client. We cannot predict the long-term effects that this new regulation will have on our research and sales and trading businesses. If investment managers and investment advisors reduce their spending on research or decide to trade with other broker-dealers as a result of the MiFID II regulations our business could be adversely affected.

The U.K. exit from the E.U. could adversely impact our business, results of operations and financial condition.

The effects of the U.K.'s decision to leave the European Union (commonly referred to as "Brexit") on us will depend on any agreements the U.K. makes to retain access to E.U. markets (including for financial services) either during the transitional period or more permanently. Brexit is expected to significantly affect the fiscal, monetary and regulatory landscape in the U.K., and could have a material impact on its economy and the future growth of its various industries, including the financial services industry in which we operate.

We conduct business in Europe primarily through our U.K. subsidiaries. Depending on the final terms of Brexit, we could face new regulatory costs and challenges. For instance, our U.K. subsidiaries may not be able to rely on the existence of a "passporting" regime that allows immediate access to the single E.U. market. If this occurred, we may need to establish one or more new regulated subsidiaries in the E.U. in order to provide our trading platform and certain post-trade services to clients in the E.U.

Changes to U.K. immigration policy could likewise occur as a result of Brexit. In addition, Brexit could lead to legal uncertainty and potentially divergent national laws and regulations as the U.K. determines which E.U. laws to replace or replicate. Any such new laws and regulations in the U.K. may be difficult and/or costly to implement.

Although it is not possible at this point in time to predict the effects of the exit of the U.K. from the E.U., any of the foregoing factors could have a material adverse effect on our business, financial condition and results of operations. In addition, Brexit may impact our ability to comply with the extensive government regulation to which we are subject.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 has adversely affected, and may continue to adversely affect, the Company's business.

Enacted on July 21, 2010, the Dodd-Frank Act was expansive in scope and led to the adoption of extensive regulations by the CFTC, the prudential regulators, the SEC and other governmental agencies. The current administration has suggested that it may seek to roll back some of this regulation, although the timing and scope of potential changes remains uncertain. Since its adoption, the Dodd-Frank Act has had an impact on the costs associated with derivatives trading by the Company and its clients, including as a result of requirements that transactions be margined, trade reported and, in some cases, centrally cleared.

If the Company were deemed an investment company under the U.S. Investment Company Act, applicable restrictions could make it impractical for the Company to continue its respective businesses as contemplated and could have a material adverse effect on the Company's businesses and prospects.

We are primarily engaged in a non-investment company business and believe the nature of our assets and the sources of our income exclude us from the definition of an investment company under the Investment Company Act.

The Investment Company Act and the rules thereunder contain detailed requirements for the organization and operation of investment companies. Among other things, the Investment Company Act and the rules thereunder limit transactions with affiliates, impose limitations on the issuance of debt and equity securities, generally prohibit the issuance of options and impose certain governance requirements. The Company intends to conduct its operations so that the Company will not be deemed to be an investment company under the Investment Company Act. If anything were to happen which would cause the Company to be deemed to be an investment company under the Investment Company Act, requirements imposed by the Investment Company Act, including limitations on its capital structure, ability to transact business with affiliates (including subsidiaries) and ability to compensate key employees, could make it impractical for the Company to continue its business as currently conducted, impair the agreements and arrangements between and among it, its subsidiaries and its senior personnel, or any combination thereof, and materially adversely affect its business, financial condition and results of operations. Accordingly, the Company

24

may be required to limit the amount of investments that it makes as a principal or otherwise conduct its business in a manner that does not subject the Company to the registration and other requirements of the Investment Company Act.

Other Risks to Our Stockholders

The ability to use our tax net operating loss ("NOL") carryforwards could be limited.

As of December 31, 2019, we had NOL carryforwards of $175.1 million available for use in future years. Section 382 of the IRC, as amended, provides that if a loss corporation undergoes an "ownership change" the use of its pre-change losses is limited, generally, to an amount each year equal to the product of the value of the Company's equity and the long-term tax-exempt rate for the month in which the ownership change occurs. An "ownership change" is defined as an increase in the ownership of the loss corporation by so-called 5% shareholders of more than 50% over a rolling three-year period. Cowen did not undergo an ownership change during 2019.

Based on the facts in existence on the date hereof, we do not believe any material portion of our losses is subject to limitation under Section 382, or that conversion of the Convertible Notes into our common stock would trigger an ownership change. There can be no assurance that purchases or other acquisitions of our shares will not in the future trigger an ownership change, thereby substantially limiting our ability to use our NOLs going forward.

We may not be able to realize the value of our deferred tax assets.

At December 31, 2019, we have significant deferred tax assets that we have recognized based on differences between the financial statement carrying amounts and the tax basis of assets and liabilities. We have recognized deferred tax assets because management believes, based on earnings and financial projections, that it is more likely than not that we will have sufficient future earnings to utilize these assets to offset future income tax liabilities. We regularly review our deferred tax assets for recoverability based on our history of earnings, expectations for future earnings and expected timing of reversals of temporary differences. Realization of deferred tax assets requires us to apply significant judgment and is inherently speculative because it requires the future occurrence of circumstances that cannot be predicted with certainty and ultimately depends on the existence of sufficient future taxable income. There can be no assurance that we will achieve sufficient future taxable income as the basis for the ultimate realization of our deferred tax assets. Changes in facts and circumstances or unforeseen negative economic developments could require us to establish a valuation allowance in the future, potentially causing a material adverse effect on our future operating results and financial condition. Our deferred tax assets may also be impacted by new legislation or regulation.

The terms of our Series A Convertible Preferred Stock contains certain restrictions on our operations.

The certificate of designations governing our Series A Convertible Preferred Stock contains certain restrictions on our and our subsidiaries' ability to, among other things, pay dividends on, redeem or repurchase our Class A common stock and, under certain circumstances, our Series A Convertible Preferred Stock, and to issue additional preferred stock. Additionally, if dividends on our Series A Convertible Preferred Stock are in arrears and unpaid for at least six or more quarterly periods, the holders (voting as a single class) of our outstanding Series A Convertible Preferred Stock will be entitled to elect two additional directors to our Board of Directors until paid in full.

The Company's failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on the Company's financial condition, results of operations and business and the price of our Class A common stock.

The Sarbanes-Oxley Act and the related rules require our management to conduct an annual assessment of the effectiveness of our internal control over financial reporting and require a report by our independent registered public accounting firm addressing our internal control over financial reporting. To comply with Section 404 of the Sarbanes-Oxley Act, we are required to document formal policies, processes and practices related to financial reporting that are necessary to comply with Section 404. Such policies, processes and practices are important to ensure the identification of key financial reporting risks, assessment of their potential impact and linkage of those risks to specific areas and activities within our organization.

If we fail for any reason to comply with the requirements of Section 404 in a timely manner, our independent registered public accounting firm may, at that time, issue an adverse report regarding the effectiveness of our internal control over financial reporting. Matters impacting our internal controls may cause us to be unable to report our financial information on a timely basis and thereby subject us to adverse regulatory consequences, including sanctions by the SEC or violations of applicable stock exchange listing rules. There could also be a negative reaction in the financial markets due to a loss of investor confidence in us and the reliability of our financial statements. Any such event could adversely affect our financial condition, results of operations and business, and result in a decline in the price of our Class A common stock.

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Certain provisions of the Company's amended and restated certificate of incorporation and bylaws and Delaware law may have the effect of delaying or preventing an acquisition by a third party.

The Company's amended and restated certificate of incorporation and bylaws contain several provisions that may make it more difficult for a third party to acquire control of the Company, even if such acquisition would be financially beneficial to the Company's stockholders. These provisions also may delay, prevent or deter a merger, acquisition, tender offer, proxy contest or other transaction that might otherwise result in the Company's stockholders receiving a premium over the then-current trading price of our common stock. For example, the Company's amended and restated certificate of incorporation authorizes its board of directors to issue up to 10,000,000 shares of "blank check" preferred stock. Without stockholder approval, the board of directors has the authority to attach special rights, including voting and dividend rights, to this preferred stock. With these rights, preferred stockholders could make it more difficult for a third party to acquire the Company. In addition, the Company's amended and restated bylaws provide for an advance notice procedure with regard to the nomination of candidates for election as directors and with regard to business to be brought before a meeting of stockholders. The Company is also subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law. Under these provisions, if anyone becomes an "interested stockholder," the Company may not enter into a "business combination" with that person for three years without special approval, which could discourage a third party from making a takeover offer and could delay or prevent a change of control. For the purposes of Section 203, "interested stockholder" means, generally, someone owning 15% or more of the Company's outstanding voting stock or an affiliate of the Company that owned 15% or more of our outstanding voting stock during the past three years, subject to certain exceptions as described in Section 203.

If securities analysts stop publishing research or reports about us or our business or if they downgrade our common stock, the market price of our common stock and, consequently, the trading price of our other securities could decline.

The market for our common stock relies in part on the research and reports that industry or financial analysts publish about us or our business. We do not control these analysts. If any analyst who covers us downgrades our stock or lowers its future stock price targets or estimates of our operating results, our stock price could decline rapidly. Furthermore, if any analyst ceases to cover us, we could lose visibility in the market, which in turn could cause the market price of our securities to decline.

Future sales of our common stock in the public market could adversely impact the trading price of our securities.

In the future, we may sell additional shares of our common stock to raise capital. In addition, a substantial number of shares of our common stock are reserved for issuance upon vesting of restricted stock units and upon the conversion of the 2022 Convertible Notes. We cannot predict the size of future issuances or the effect, if any, that they may have on the market price for our common stock. The issuance and sale of substantial amounts of common stock, or the perception that such issuances and sales may occur, could adversely affect the trading price of our securities and impair our ability to raise capital through the sale of additional equity securities.

Item 1B.    Unresolved Staff Comments

None.

Item 2.    Properties

Our principal offices, all of which are leased, are located in New York City, Boston, San Francisco and London.  Our other offices, all of which are leased, are located in Atlanta, Chicago, Cleveland, Greenwich, Houston, Lake Mary, Stamford, Washington D.C., Luxembourg, Belfast, and other various locations.  Our corporate headquarters are located in New York, New York and comprise approximately 124,000 square feet of leased space pursuant to a lease agreement through 2024. Our additional New York locations are comprised of approximately 46,000 square feet pursuant to lease agreements through 2025.  We lease approximately 23,000 square feet of space in Boston pursuant to lease agreements expiring through 2023.  In San Francisco, we lease approximately 26,000 square feet of space, pursuant to lease agreements expiring through 2025.  Our London offices are subject to lease agreements expiring through 2022.

Item 3.    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.

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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 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 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 4. Mine Safety Disclosures

Not Applicable.

PART II

Item 5.    Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Stock Price Information and Stockholders

Our Class A common stock is listed and trades on the NASDAQ Global Market under the symbol "COWN." As of March 3, 2020, there were approximately 38 holders of record of our Class A common stock. This number does not include stockholders for whom shares were held in "nominee" or "street" name.

Dividend Policy

On February 11, 2020 the Board of Directors declared a quarterly cash dividend of $0.04 per share of Class A common stock payable on March 16, 2020, to stockholders of record on March 2, 2020.

We credit dividend equivalents on all unvested Restricted Stock Units and Performance Share Awards concurrently with the payment of dividends to the holders of Class A common shares. The dividend equivalents have the same vesting and delivery terms as the underlying award agreements relating to the Restricted Stock Units and Performance Share Awards.

The declaration and payment of any future dividends will be at the sole discretion of our board of directors. Our board of directors will take into account: general economic and business conditions; our financial condition and operating results; our available cash and current and anticipated cash needs; capital requirements; contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders or by our subsidiaries to us; and such other factors as our board of directors may deem relevant.

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Issuer Purchases of Equity Securities: Sales of Unregistered Securities

As of December 31, 2019, the Company's Board of Directors has approved a share repurchase program that authorizes the Company to purchase up to $216.0 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 year ended December 31, 2019, through the share repurchase program, the Company repurchased 2,233,636 shares of Cowen Class A common stock at an average price of $15.44 per share.

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 year ended December 31, 2019.

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, 2019 – January 31, 2019)
Common stock repurchases(1)	—	$	—	—	$	10,000,465
Employee transactions(2)	1,032	$	14.37	—	—
Other (3)	3,331	$	14.52	—	—
Total	4,363	$	16.46	—
Month 2 (February 1, 2019 – February 28, 2019)
Common stock repurchases(1)	—	$	—	—	$	10,000,465
Employee transactions(2)	1,461	$	15.03	—	—
Other (3)	—	—		—	—
Total	1,461	$	15.03	—
Month 3 (March 1, 2019 – March 31, 2019)
Common stock repurchases(1)	315,400	$	14.77	315,400	$	5,342,862
Employee transactions(2)	320,734	$	14.45	—	—
Other (3)	—	—		—	—
Total	636,134	$	14.61	315,400
Month 4 (April 1, 2019 – April 30, 2019)
Common stock repurchases(1)	—	$	—	—	$	25,000,000
Employee transactions(2)	8,961	$	14.65	—	—
Other (3)	—	—		—	—
Total	8,961	$	14.48	—
Month 5 (May 1, 2019 – May 31, 2019)
Common stock repurchases(1)	—	$	—	—	$	25,000,000
Employee transactions(2)	8,903	$	15.87	—	—
Other (3)	4,737	$	15.40	—	—
Total	13,640	$	15.71	—
Month 6 (June 1, 2019 – June 30, 2019)
Common stock repurchases(1)	461,830	$	15.93	461,830	$	17,643,048
Employee transactions(2)	201,353	$	15.57	—	—
Other (3)	—	$	—	—
Total	663,183	$	15.82	461,830
Month 7 (July 1, 2019 – July 31, 2019)
Common stock repurchases(1)	—	$	—	—	$	17,643,131
Employee transactions(2)	7,643	$	16.46	—	—
Other (3)	—	$	—	—	—
Total	7,643	$	16.46	—
Month 8 (August 1, 2019 – August 31, 2019)
Common stock repurchases(1)	378,364	$	15.73	378,364	$	11,691,185
Employee transactions(2)	—	$	—	—	—
Other (3)	2,849	$	16.19	—	—
Total	381,213	$	15.73	378,364
Month 9 (September 1, 2019 – September 30, 2019)

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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
Common stock repurchases(1)	284,802	$	15.64	284,802	$	7,237,804
Employee transactions(2)	124,705	$	15.62	—	—
Other (3)	—	$	—	—	—
Total	409,507	$	15.63	284,802
Month 10 (October 1, 2019 – October 31, 2019)
Common stock repurchases(1)	—	$	—	—	$	25,000,000
Employee transactions(2)	1,308	$	15.18	—	—
Other (3)	882	$	15.82	—	—
Total	2,190	$	15.44	—
Month 11 (November 1, 2019 – November 30, 2019)
Common stock repurchases(1)	432,308	$	14.99	432,308	$	18,521,025
Employee transactions(2)	—	$	—	—	—
Total	432,308	$	14.99	432,308
Month 12 (December 1, 2019 – December 31, 2019)
Common stock repurchases(1)	360,932	$	15.48	360,932	$	12,934,590
Employee transactions(2)	329,287	$	15.32	—	—
Other (3)	17,888	$	15.37	—	—
Total	708,107	$	15.40	360,932
Total (January 1, 2019 – December 31, 2019)
Common stock repurchases(1)	2,233,636	$	15.44	2,233,636	$	12,934,590
Employee transactions(2)	1,005,387	$	15.14	—	—
Other (3)	29,687	$	15.37	—	—
Total	3,268,710	$	15.35	2,233,636

(1) The Company's Board of Directors have authorized the repurchase, subject to market conditions, of up to $216.0 million of the Company's outstanding common stock.

(2) Represents shares of 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 6.    Selected Financial Data

The following table sets forth our selected consolidated financial and other data for the years ended December 31, 2019, 2018, 2017, 2016, and 2015. The selected consolidated statements of financial condition data and consolidated statements of operations data as of and for the years ended December 31, 2019, 2018, 2017, 2016, and 2015 have been derived from our audited consolidated financial statements. Any presentation reclassifications made in filings subsequent to the associated Form 10-K filing for each year have been applied here retrospectively as well. Our selected consolidated financial data are only a summary and should be read in conjunction with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and with our audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.

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	Year Ended December 31,
	2019		2018		2017		2016		2015
	(dollars in thousands except per share data)
Consolidated Statements of Operations Data:
Revenues
Investment banking	$	375,025	$	357,222	$	223,614	$	133,279	$	222,781
Brokerage	402,747		413,582		293,610		199,180		157,722
Management fees	32,608		29,658		33,245		40,612		41,906
Incentive income	1,547		3,117		5,383		8,334		1,466
Interest and dividends	174,913		108,009		49,440		14,732		13,796
Reimbursement from affiliates	1,026		1,038		2,860		10,504		21,557
Aircraft lease revenue	—		1,852		3,751		4,161		—
Reinsurance premiums	46,335		38,096		30,996		32,459		—
Other revenues	5,433		4,504		8,561		22,355		3,726
Consolidated Funds revenues	9,809		9,838		7,321		5,949		1,613
Total revenues	1,049,443		966,916		658,781		471,565		464,567
Interest and dividends expense	168,628		104,116		60,949		29,308		26,220
Total net revenues	880,815		862,800		597,832		442,257		438,347
Expenses
Employee compensation and benefits	535,772		512,627		404,087		310,038		321,386
Non-compensation expense	355,959		328,616		249,550		168,804		154,458
Reinsurance claims, commissions and amortization of deferred acquisition costs	44,070		41,086		30,486		29,904		—
Goodwill impairment	4,100		—		—		—		—
Consolidated Funds expenses	8,963		8,615		12,526		9,064		2,310
Total expenses	948,864		890,944		696,649		517,810		478,154
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	80,409		68,043		76,179		23,381		36,789
Bargain purchase gain	—		—		6,914		—		—
Gain/(loss) on debt extinguishment	—		(556)		(16,039)		—		—
Consolidated Funds net gains (losses)	58,363		56,255		38,725		20,685		14,497
Total other income (loss)	138,772		123,742		105,779		44,066		51,286
Income (loss) before income taxes	70,723		95,598		6,962		(31,487)		11,479
Income tax expense (benefit)	14,853		15,719		44,053		(19,092)		(47,496)
Net income (loss)	55,870		79,879		(37,091)		(12,395)		58,975
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	31,239		37,060		23,791		6,882		15,246
Net income (loss) attributable to Cowen Inc.	24,631		42,819		(60,882)		(19,277)		43,729
Preferred stock dividends	6,792		6,792		6,792		6,792		4,075
Net income (loss) attributable to Cowen Inc. common stockholders	$	17,839	$	36,027	$	(67,674)	$	(26,069)	$	39,654
Weighted average common shares outstanding:
Basic (a)	29,525		29,545		29,492		26,857		27,522
Diluted (a)	31,286		30,735		29,492		26,857		29,043
Earnings (loss) per share:
Basic (a)	$	0.60	$	1.22	$	(2.29)	$	(0.97)	$	1.44
Diluted (a)	$	0.57	$	1.17	$	(2.29)	$	(0.97)	$	1.37

 (a) Share and per share amounts have been retroactively updated to reflect the one-for-four reverse stock split effective as of December 5, 2016.

	As of December 31,
	2019		2018		2017		2016		2015
	(dollars in thousands)
Consolidated Statements of Financial Condition Data:
Total assets	$	5,162,025	$	3,346,303	$	3,296,252	$	2,018,523	$	1,787,659
Total liabilities	3,866,575		2,270,093		2,107,629		866,668		810,755
Redeemable non-controlling interests	391,275		216,923		335,017		280,527		140,039
Nonredeemable non-controlling interests	94,320		64,880		105,587		98,678		46,872
Total Stockholders' Equity	$	809,855	$	794,407	$	748,019	$	772,650	$	789,993

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Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

         The following discussion should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this Annual Report. In addition to historical information, this discussion includes forward-looking information that involves risks and assumptions, which could cause actual results to differ materially from management's expectations. See "Special Note Regarding Forward-Looking Statements" included elsewhere in this Annual Report on Form 10-K.

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 and 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 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 and domain knowledge-driven research, sales and trading platforms for institutional investors, global clearing and 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 private healthcare investing, private sustainable investing, healthcare royalties, activism and merger arbitrage. A portion of the Company’s capital is invested alongside the Company's investment management clients. The Company has also invested some of its capital in its reinsurance businesses.

Op Co's investment banking businesses include investment banking, research, sales and trading, prime brokerage, global clearing 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, information and technology 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. Commissions associated with these transactions are also included herein. 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 customer trading volumes and on the notional value of the non-U.S. securities traded by our customers.

•Investment performance.  Our revenues from incentive income 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 incentive allocation 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, corporate, political or other scandals that reduce investor confidence in the capital markets, or a combination of these or other factors. 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

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disproportionate effect on 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 February 11, the Board of Directors declared a quarterly cash dividend payable on its common stock of $1.25 million, or $0.04 per common share, payable on March 16, 2020, to stockholders of record on March 2, 2020.

Basis of presentation

The Company's consolidated financial statements are prepared in accordance with US GAAP as promulgated by the Financial Accounting Standards Board ("FASB") through Accounting Standards Codification as the source of authoritative accounting principles in the preparation of financial statements of the Company appearing in Part IV of this Form 10-K 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 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 managing member/general partner interest are consolidated with the Company pursuant to US GAAP as described below (the "Consolidated Funds"). Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of the Consolidated Funds on a gross basis. The ownership interests in the Consolidated Funds which are not owned by the Company are reflected as redeemable or nonredeemable non-controlling interests, depending on the non-controlling interest holder's redemption rights, in consolidated subsidiaries in the consolidated financial statements appearing elsewhere in this Form 10-K. The management fees and incentive income earned by the Company from the Consolidated Funds are eliminated in consolidation.

Acquisition

On January 2, 2019, the Company, together with its indirect wholly owned subsidiaries, Cowen International Ltd and Cowen QN Acquisition LLC, completed its previously announced acquisition of Quarton International AG through the acquisition of all of the outstanding equity interest of Quarton International AG's affiliated combining companies, Quarton Management AG, Quarton International Europe AG, Quarton Partners, LLC and Quarton Securities GP, LLC (which owns a U.S. Securities Exchange Commission ("SEC") registered broker-dealer that was subsequently renamed to Cowen Securities LP), comprising the U.S. and European operations of the acquired combining companies (collectively "Quarton"). Quarton is a group of leading global financial advisory companies serving the middle market.

Expenses

The Company's expenses consist of compensation and benefits, 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.

•Reinsurance claims, commissions and amortization of deferred acquisition costs. 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.

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

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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 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.

The Company continues to monitor the financial statement impact of the Tax Cuts and Jobs Act ("TCJ Act") enacted in 2017 as regulations and formal guidance continue to be issued.

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 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 temporary equity. The remaining non-controlling interests have been classified in permanent equity as the non-controlling interests are either not redeemable at the option of the holder or the holder does not have the unilateral right to redeem their ownership interests.

Investment Fund Performance and Assets Under Management

For the quarter ended December 31, 2019, the Company's activist and merger arbitrage investment strategies (including the merger arbitrage focused UCITS fund) had, in the aggregate, positive results. The Company's healthcare royalty strategy's third investment fund is now fully committed and allocations are now being made to the strategy's fourth fund. Our private healthcare strategy continues to deploy capital, having made sixteen investments in its second fund by the end of the quarter ended December 31, 2019 and with a pipeline of opportunities ahead. The liquidation of certain multi-strategy hedge funds advised by the Company also continues.

As of December 31, 2019, the Company had assets under management of $11.4 billion.

Capability	Private Healthcare Investments	Healthcare Royalties	Activism	Merger Arbitrage	Sustainability	Other (a)
	(dollars in millions)
AUM	$681	$3,261	$5,958	$590	$211	$709
Team
Private Equity	ü	ü			ü
Hedge Fund			ü	ü
Managed Account		ü	ü	ü
UCITS				ü
Other						ü

(a) Other capabilities include private equity funds, legacy funds, and other trading 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 health care 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.

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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 December 31, 2019, the Company's invested capital amounted to a net value of $717.6 million (supporting a long market value of $724.8 million), representing approximately 89% of Cowen's stockholders' equity presented in accordance with 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 December 31, 2019. The total net values presented in the table below do not tie to Cowen's consolidated statement of financial condition as of December 31, 2019 because they represent only some of the line items in the accompanying consolidated statement of financial condition.

Strategy	Net Value		% of Stockholders' Equity
	(dollars in millions)
Op Co
Broker-dealer capital and related trading	$	436.1	61%
Public and Private Healthcare	65.4		9%
Liquid Alternative Trading	79.1		11%
Asset Co
Private Investments	126.5		18%
Private Real Estate	10.5		2%
Total	717.6		89%
Cowen Inc. Stockholders' Equity	$	809.9	100%

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. Economic Income (Loss) reflects, on a consistent basis for all periods presented in the Company's consolidated financial statements, income earned from the Company's investment funds and managed accounts and from its own invested capital. Economic Income (Loss) excludes certain adjustments required under US GAAP. See the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company-Segment Analysis and Economic Income (Loss)," and Note 27 to the accompanying Company's consolidated financial statements, appearing elsewhere in this Form 10-K, for a reconciliation of Economic Income (Loss) to total Company US GAAP net income (loss).

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Year Ended December 31, 2019 Compared with Year Ended December 31, 2018

	Consolidated Statements of Operations
	Year Ended December 31,				Period to Period
	2019		2018		$ Change		% Change
	(dollars in thousands)
Revenues
Investment banking	$	375,025	$	357,222	$	17,803	5	%
Brokerage	402,747		413,582		(10,835)		(3)	%
Management fees	32,608		29,658		2,950		10	%
Incentive income	1,547		3,117		(1,570)		(50)	%
Interest and dividends	174,913		108,009		66,904		62	%
Reimbursement from affiliates	1,026		1,038		(12)		(1)	%
Aircraft lease revenue	—		1,852		(1,852)		NM
Reinsurance premiums	46,335		38,096		8,239		22	%
Other revenues	5,433		4,504		929		21	%
Consolidated Funds revenues	9,809		9,838		(29)		—	%
Total revenues	1,049,443		966,916		82,527		9	%
Interest and dividends expense	168,628		104,116		64,512		62	%
Total net revenues	880,815		862,800		18,015		2	%
Expenses
Employee compensation and benefits	535,772		512,627		23,145		5	%
Reinsurance claims, commissions and amortization of deferred acquisition costs	44,070		41,086		2,984		7	%
Operating, general, administrative and other expenses	335,499		316,180		19,319		6	%
Depreciation and amortization expense	20,460		12,436		8,024		65	%
Goodwill impairment	4,100		—		4,100		NM
Consolidated Funds expenses	8,963		8,615		348		4	%
Total expenses	948,864		890,944		57,920		7	%
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	80,409		68,043		12,366		18	%
Gain/(loss) on debt extinguishment	—		(556)		556		NM
Consolidated Funds net gains (losses)	58,363		56,255		2,108		4	%
Total other income (loss)	138,772		123,742		15,030		12	%
Income (loss) before income taxes	70,723		95,598		(24,875)		(26)	%
Income tax expense (benefit)	14,853		15,719		(866)		(6)	%
Net income (loss)	55,870		79,879		(24,009)		(30)	%
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	31,239		37,060		(5,821)		(16)	%
Net income (loss) attributable to Cowen Inc.	24,631		42,819		(18,188)		(42)	%
Preferred stock dividends	6,792		6,792		—		—	%
Net income (loss) attributable to Cowen Inc. common stockholders	$	17,839	$	36,027	$	(18,188)	(50)	%

Revenues

Investment Banking

Investment banking revenues increased $17.8 million to $375.0 million for the year ended December 31, 2019 compared with $357.2 million in the prior year period. During the year ended December 31, 2019, the Company completed 126 capital markets transactions, 48 strategic advisory transactions and 14 debt capital markets transactions. During the year ended December 31, 2018, the Company completed 114 underwriting transactions, 30 strategic advisory transactions and seven debt capital markets transactions.

Brokerage

Brokerage revenues decreased $10.9 million to $402.7 million for the year ended December 31, 2019 compared with $413.6 million in the prior year period. This was attributable to a decrease in institutional services and cross asset revenues partially offset by an increase in commission management revenue.  Customer trading volumes across the industry (according to Bloomberg) decreased 4% for the year ended December 31, 2019 compared to the prior year period.

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Management Fees

Management fees increased $2.9 million to $32.6 million for the year ended December 31, 2019 compared with $29.7 million in the prior year period. This increase is primarily related to the healthcare royalty business.

Incentive Income

Incentive income decreased $1.6 million to $1.5 million for the year ended December 31, 2019, compared with $3.1 million in the prior year period. This decrease is primarily related to the merger arbitrage business. Revenue recognition standards, effective January 1, 2018, require the Company to recognize the majority of incentive income allocated to the Company as net gains (losses) on securities, derivatives and other investments or as incentive income when the fees are no longer subject to reversal or are crystalized.

Interest and Dividends

Interest and dividends increased $66.9 million to $174.9 million for the year ended December 31, 2019 compared with $108.0 million in the prior year period. This is primarily attributable to securities financing activities. The increase in the securities finance activity is due to customer demand which has created greater matched book opportunities for both domestic and international securities.

Reimbursements from Affiliates

Reimbursements from affiliates remained fairly flat at $1.0 million for the year ended December 31, 2019 and the prior year period.

Aircraft Lease Revenue

Aircraft lease revenue ceased at the end of 2018 due to our exit from the aviation business.

Reinsurance Premiums

Reinsurance premiums increased $8.2 million to $46.3 million for the year ended December 31, 2019 compared with $38.1 million in the prior year period. This increase is due to a higher change in unearned premiums in 2019 compared to 2018 as well as higher premium volume from renewed policies in 2019 compared to 2018.

Other Revenues

Other revenues increased $0.9 million to $5.4 million for the year ended December 31, 2019 compared with $4.5 million in the prior year period.

Consolidated Funds Revenues

Consolidated Funds revenues decreased $0.1 million to $9.8 million for the year ended December 31, 2019 compared with $9.8 million in the prior year period. The decrease is due to earning less interest and dividends income from the Consolidated Funds.

Interest and Dividends Expenses

Interest and dividends expenses increased $64.5 million to $168.6 million for the year ended December 31, 2019 compared with $104.1 million in the prior year period. This is primarily attributable to securities finance activities. The increase in the securities finance activity is due to customer demand which has created greater matched book opportunities for both domestic and international securities.

Expenses

Employee Compensation and Benefits

Employee compensation and benefits expenses increased $23.2 million to $535.8 million for the year ended December 31, 2019 compared with $512.6 million in the prior year period. The increase is primarily due to a higher compensation and benefits accrual. The compensation to revenue ratio, including other income (loss), was 45% for the year ended December 31, 2019, compared with 47% in the prior year period.

Reinsurance Claims, Commissions and Amortization of Deferred Acquisition Costs

Reinsurance related expenses increased $3.0 million to $44.1 million for the year ended December 31, 2019 compared with $41.1 million in the prior year period. This increase is primarily due to additional reinsurance related expenses in 2019 from additional reinsurance policies, partially offset by a better claims experience in 2019 compared to 2018.

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Operating, General, Administrative and Other Expenses

Operating, general, administrative and other expenses increased $19.3 million to $335.5 million for the year ended December 31, 2019 compared with $316.2 million in the prior year period. The increase is primarily related to increased professional fees and client servicing and business development costs.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased $8.1 million to $20.5 million for the year ended December 31, 2019 compared with $12.4 million in the prior year period. The increase in amortization expense primarily related to intangibles acquired through the Quarton acquisition in January 2019.

Goodwill Impairment

In conjunction with the Company's change in segments, during the second quarter of 2019, the Company restructured its historical investment management reporting unit between the Op Co's CIM division reporting unit and the Asset Co reporting unit. Based on the change in segments and restructuring of reporting units, the Company determined that it was necessary to perform a quantitative impairment test. The Company estimated the fair value of its reporting units immediately before and after the change in segments and restructuring of reporting units using the income and market approach, which involves estimates of future cash flows, discount rates, economic forecast and other assumptions, which are then used in the market approach (earnings and/or transactions multiples) and/or income approach (discounted cash flow method). During the second quarter of 2019, based on the results of the impairment analysis performed, the Company recognized a goodwill impairment in the amount of $4.1 million within the Asset Co reporting unit.

Consolidated Funds Expenses

Consolidated Funds expenses increased $0.4 million to $9.0 million for the year ended December 31, 2019 compared with $8.6 million in the prior year period. The increase is due to increased professional, advisory and other fees expenses in the Consolidated Funds.

Other Income (Loss)

Other income (loss) increased $15.1 million to $138.8 million for the year ended December 31, 2019 compared with $123.7 million in the prior year period. The increase primarily relates to an increase in performance in the Company's own invested capital. The gains and losses 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.

Income Taxes

Income tax expense decreased $0.9 million to $14.9 million for the year ended December 31, 2019 compared with an income tax expense of $15.7 million in the prior year period. This change is primarily attributable to the change in the Company's income before income taxes and non-deductible expenses for the respective periods.

Net Income (Loss) Attributable to Non-controlling Interests

Net income (loss) attributable to non-controlling interests decreased $5.9 million to $31.2 million for the year ended December 31, 2019 compared with $37.1 million in the prior year period. The decrease was primarily the result of a decrease in income earned by the Consolidated Funds in the current year period. 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.

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Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

	Consolidated Statements of Operations
	Year Ended December 31,				Period to Period
	2018		2017		$ Change		% Change
	(dollars in thousands)
Revenues
Investment banking	$	357,222	$	223,614	$	133,608	60	%
Brokerage	413,582		293,610		119,972		41	%
Management fees	29,658		33,245		(3,587)		(11)	%
Incentive income	3,117		5,383		(2,266)		(42)	%
Interest and dividends	108,009		49,440		58,569		118	%
Reimbursement from affiliates	1,038		2,860		(1,822)		(64)	%
Aircraft lease revenue	1,852		3,751		(1,899)		(51)	%
Reinsurance premiums	38,096		30,996		7,100		23	%
Other revenues	4,504		8,561		(4,057)		(47)	%
Consolidated Funds revenues	9,838		7,321		2,517		34	%
Total revenues	966,916		658,781		308,135		47	%
Interest and dividends expense	104,116		60,949		43,167		71	%
Total net revenues	862,800		597,832		264,968		44	%
Expenses
Employee compensation and benefits	512,627		404,087		108,540		27	%
Reinsurance claims, commissions and amortization of deferred acquisition costs	41,086		30,486		10,600		35	%
Depreciation and amortization	12,436		13,078		(642)		(5)	%
General, administrative and other expenses	316,180		227,709		88,471		39	%
Restructuring costs	—		8,763		(8,763)		NM
Consolidated Funds expenses	8,615		12,526		(3,911)		(31)	%
Total expenses	890,944		696,649		194,295		28	%
Other income (loss)
Net gain (loss) on securities, derivatives and other investments	68,043		76,179		(8,136)		(11)	%
Bargain purchase gain, net of tax	—		6,914		(6,914)		NM
Gain/(loss) on debt extinguishment	(556)		(16,039)		15,483		(97)	%
Consolidated Funds net gains (losses)	56,255		38,725		17,530		45	%
Total other income (loss)	123,742		105,779		17,963		17	%
Income (loss) before income taxes	95,598		6,962		88,636		(1,273)	%
Income tax expense (benefit)	15,719		44,053		(28,334)		64	%
Net income (loss)	79,879		(37,091)		116,970		315	%
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	37,060		23,791		13,269		56	%
Net income (loss) attributable to Cowen Inc.	42,819		(60,882)		103,701		170	%
Preferred stock dividends	6,792		6,792		—		—	%
Net income (loss) attributable to Cowen Inc. common stockholders	$	36,027	$	(67,674)	$	103,701	153	%

Revenues

Investment Banking

Investment banking revenues increased $133.6 million to $357.2 million for the year ended December 31, 2018 compared with $223.6 million in the prior year period. During the year ended December 31, 2018, the Company completed 114 underwriting transactions, 30 strategic advisory transactions and seven debt capital market transactions. During the year ended December 31, 2017, the Company completed 103 underwriting transactions, 16 strategic advisory transactions and two debt capital market transactions. The implied average underwriting fee per transaction was 21.1% greater for the year ended December 31, 2018 as compared to the prior year period. The increase is also related to adoption of the new revenue recognition standard, effective January 1, 2018, which a) requires underwriting expenses to be shown within expenses rather than net of associated investment banking revenues and b) expenses reimbursed from client to be shown gross in investment banking revenues rather than net in their respective expense category.

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Brokerage

Brokerage revenues increased $120.0 million to $413.6 million for the year ended December 31, 2018 compared with $293.6 million in the prior year period. This was attributable to an increase in revenues due to the acquisition of Convergex Group in June 2017 and increased revenue in our options and electronic trading businesses. Customer trading volumes across the industry (according to Bloomberg) increased 12% for the year ended December 31, 2018 compared to the prior year period.

Management Fees

Management fees decreased $3.5 million to $29.7 million for the year ended December 31, 2018 compared with $33.2 million in the prior year period. This decrease in management fees was primarily related to a decrease in management fees from the healthcare royalty business and as a result of the company's exit of two investment management strategies, one in the fourth quarter of 2017 and the other in the first quarter of 2018.

Incentive Income

Incentive income decreased $2.3 million to $3.1 million for the year ended December 31, 2018, compared with $5.4 million in the prior year period. This decrease was related to the new revenue recognition standards, effective January 1, 2018, for which the Company now recognizes the majority of incentive income allocated to the Company as net gains (losses) on securities, derivatives and other investments.

Interest and Dividends

Interest and dividends increased $58.6 million to $108.0 million for the year ended December 31, 2018 compared with $49.4 million in the prior year period. This was primarily attributable to securities financing activities related to the June 2017 acquisition of Convergex Group.

Reimbursements from Affiliates

Reimbursements from affiliates decreased $1.9 million to $1.0 million for the year ended December 31, 2018 compared with $2.9 million in the prior year period. The decrease is primarily related to a decrease in reimbursements from the activist business.

Aircraft Lease Revenues

Aircraft lease revenues decreased $1.9 million to $1.9 million for the year ended December 31, 2018 compared to $3.8 million in the prior year period. This decrease was related to the sale of one plane during the third quarter of 2017 and several more planes sold during the fourth quarter of 2018.

Reinsurance Premiums

Reinsurance premiums increased $7.1 million to $38.1 million for the year ended December 31, 2018 compared with $31.0 million in the prior year period. This increase reflects premiums earned in 2018 from additional reinsurance policies in force compared to 2017 as well as the change in unearned premiums during 2018 from policies that were in force at the end of 2017.

Other Revenues

Other revenues decreased $4.1 million to $4.5 million for the year ended December 31, 2018 compared with $8.6 million in the prior year period. This decrease is primarily related to a gain on the sale of one of the Company's planes in the third quarter of 2017.

Consolidated Funds Revenues

Consolidated Funds revenues increased $2.5 million to $9.8 million for the year ended December 31, 2018 compared with $7.3 million in the prior year period. The increase is due to interest and dividends income from the Consolidated Funds.

Interest and Dividends Expenses

Interest and dividends expenses increased $43.2 million to $104.1 million for the year ended December 31, 2018 compared with $60.9 million in the prior year period. This was primarily attributable to securities finance activities related to the June 2017 acquisition of Convergex Group.

Expenses

Employee Compensation and Benefits

Employee compensation and benefits expenses increased $108.5 million to $512.6 million for the year ended December 31, 2018 compared with $404.1 million in the prior year period. The increase is primarily due to $308.1 million higher total revenues and $17.9 million higher other income (loss) during 2018 as compared to 2017 resulting in a higher

40

compensation and benefits accrual. The compensation to revenue ratio, including other income (loss), was 47% for the year ended December 31, 2018, compared with 53% in the prior year period.

Reinsurance Claims Commissions

Reinsurance related expenses increased $10.6 million to $41.1 million for the year ended December 31, 2018 compared with $30.5 million in the prior year period. This increase reflects reinsurance-related expenses incurred from additional policies in force compared to 2017 as well as the occurrence of several highly unlikely events that led to higher claims in 2018 such as widespread wildfires in California, extreme flash floods in Australia and devastating floods in Germany.

Operating, General, Administrative and Other Expenses

Operating, general, administrative and other expenses increased $88.5 million to $316.2 million for the year ended December 31, 2018 compared with $227.7 million in the prior year period. The increase is primarily related to higher brokerage and trade execution costs, due to higher brokerage revenue, increased marketing and business development expenses and increased occupancy costs, which are mostly related to the acquisition of Convergex Group in June 2017.The increase is also related to adoption of the new revenue recognition standard, effective January 1, 2018, which a) requires underwriting expenses to be shown within expenses rather than net of associated investment banking revenues and b) expenses reimbursed from client to be shown gross in investment banking revenues rather than net in their respective expense category.

Depreciation and Amortization Expenses

Depreciation and amortization expenses decreased $0.7 million to $12.4 million for the year ended December 31, 2018 compared with $13.1 million in the prior year period. There was a decrease in amortization from certain intangibles which have been fully amortized partially offset by an increase in depreciable fixed assets related to the acquisition of Convergex Group in June 2017.

Restructuring Costs

Restructuring costs expenses were $8.8 million for the year ended December 31, 2017 and there were none in the current period. In conjunction with the integration of the acquired businesses of Convergex Group, the Company evaluated the combined investment bank businesses and operations and incurred integration and restructuring costs, which primarily related to exit and disposal costs, discontinuation of redundant technology services and severance costs.

Consolidated Funds Expenses

Consolidated Funds expenses decreased $3.9 million to $8.6 million for the year ended December 31, 2018 compared with $12.5 million in the prior year period. The decrease is due to decreased interest and dividends expense in the Consolidated Funds.

Other Income (Loss)

Other income (loss) increased $17.9 million to $123.7 million for the year ended December 31, 2018 compared with $105.8 million in the prior year period. The increase primarily relates to an increase in performance in the Company's own invested capital offset only partially by the bargain purchase gain related to the acquisition of Convergex Group in June 2017. The gains and losses 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.

Income Taxes

Income tax expense decreased $28.4 million to $15.7 million for the year ended December 31, 2018 compared with an income tax expense of $44.1 million in the prior year period. This decrease in expense is primarily attributable to the re-measurement in 2017 of the Company's deferred tax assets using the reduced statutory Federal tax rate of the federal tax reform enacted in 2017.

Net Income (Loss) Attributable to Non-controlling Interests

Net income (loss) attributable to non-controlling interests increased $13.3 million to $37.1 million for the year ended December 31, 2018 compared with $23.8 million in the prior year period. The increase was primarily the result of an increase in income earned by the merger arbitrage Consolidated Fund in the current year period. 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.

41

Segment Analysis and Economic Income (Loss)

Segments

The Company conducts its operations through two segments: Op Co and Asset Co. For a more detailed discussion regarding the Company's recent change in segments, see Part I Item 1. Business "Overview" section.

Economic Income (Loss)

The performance measure used by the Company for each segment is Economic Income (Loss), which management uses to evaluate the financial performance of and to make operating decisions for the Company as a whole and each segment. Accordingly, management assesses its business by analyzing the performance of each segment and believes that investors should review the same performance measure that it uses to analyze its segment and business performance. In addition, management believes that Economic Income (Loss) is helpful to gain an understanding of its segment results of operations because it reflects such results on a consistent basis for all periods presented.

Our Economic Income (Loss) may not be comparable to similarly titled measures used by other companies. We use Economic Income (Loss) as a measure of each segment's operating performance, not as a measure of liquidity. Economic Income (Loss) should not be considered in isolation or as a substitute for operating income, 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 Economic Income (Loss), Economic Income (Loss) has limitations in that it does not take into account certain items included or excluded under US GAAP, including our Consolidated Funds. Economic Income (Loss) is considered by management as a supplemental measure to the US GAAP results to provide a more complete understanding of each segment's performance as measured by management. For a reconciliation of Economic Income (Loss) to US GAAP net income (loss) for the periods presented and additional information regarding the reconciling adjustments discussed above, see Note 27 to the Company's consolidated financial statements included elsewhere in this Form 10-K.

In general, Economic Income (Loss) is a pre-tax measure that (i) eliminates the impact of consolidation for Consolidated Funds and excludes (ii) goodwill and intangible impairment (iii) certain other transaction-related adjustments and/or reorganization expenses and (iv) certain costs associated with debt. Economic Operating Income (Loss) represents Economic Income (Loss) before depreciation and amortization expenses. In addition, Economic Income (Loss) revenues include investment income that represents the income the Company has earned in investing its own capital, including realized and unrealized gains and losses, interest and dividends, net of associated investment related expenses. For US GAAP purposes, these items are included in each of their respective line items. Economic Income (Loss) revenues also include management fees, incentive income and investment income earned through the Company's investment as a general partner in certain real estate entities and the Company's investment in the activist business and certain investment funds. For US GAAP purposes, all of these items, are recorded in other income (loss). Economic Income (Loss) recognizes (a) incentive fees during periods when the fees are not yet crystallized for US GAAP reporting, (b) start-up costs of a fund over the expected life of the fund and (c) retainer fees, relating to investment banking activities, earned during the period that would otherwise be deferred until closing for US GAAP reporting. In addition, Economic Income (Loss) expenses are reduced by reimbursement from affiliates, which for US GAAP purposes is presented gross as part of revenue.

Economic Income (Loss) Revenues

The Company's principal sources of Economic Income (Loss) revenues are derived from activities in the following business segments:

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

The Asset Co segment generates revenue through three principal sources: management fees, incentive income and investment income from the Company's own capital.

Economic Income (Loss) Expenses

The Company's Economic Income (Loss) expenses consist of non-interest expenses and interest expense. Non-interest expenses consist of compensation and benefits and non-compensation expenses (fixed and variable), less reimbursement from affiliates.

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 partners of such entities.

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Year Ended December 31, 2019 Compared with Year Ended December 31, 2018

	Year Ended December 31,												Total Period-to-Period
	2019						2018
	Operating Company		Asset Company		Total		Operating Company		Asset Company		Total		$ Change		% Change
	(dollars in thousands)
Economic Income Revenues
Investment banking	$	352,192	$	—	$	352,192	$	329,061	$	—	$	329,061	$	23,131	7	%
Brokerage	440,413		—		440,413		452,299		—		452,299		(11,886)		(3)	%
Management fees	43,698		1,976		45,674		43,466		5,709		49,175		(3,501)		(7)	%
Incentive income (loss)	45,041		1,152		46,193		16,851		6,896		23,747		22,446		95	%
Investment income (loss)	51,344		3,111		54,455		53,593		2,753		56,346		(1,891)		(3)	%
Other income (loss)	5,785		58		5,843		(1,619)		451		(1,168)		7,011		(600)	%
Total economic income revenues	938,473		6,297		944,770		893,651		15,809		909,460		35,310		4	%
Interest expense	22,576		5,449		28,025		17,489		5,524		23,013		5,012		22	%
Total net revenues	$	915,897	$	848	$	916,745	$	876,162	$	10,285	$	886,447	$	30,298	3	%

Economic Income (Loss)

Total Economic Operating Income (Loss) (which is Economic Income (Loss) before depreciation and amortization) was $69.1 million for the year ended December 31, 2019, a decrease of $11.8 million compared to Economic Operating Income (Loss) of $80.9 million in the prior year period. Total Economic Income (Loss) was $48.6 million for the year ended December 31, 2019, a decrease of $20.7 million compared to Economic Income (Loss) of $69.3 million in the prior year period.

Total Economic Income (Loss) revenues were $944.8 million for the year ended December 31, 2019, an increase of $35.3 million compared to Economic Income (Loss) revenues of $909.5 million in the prior year period. This was primarily related to an increase in investment banking and incentive income offset partially by a decrease in brokerage income.

Operating Company Segment Revenues

The Op Co segment Economic Income (Loss) revenues were $938.5 million for the year ended December 31, 2019, an increase of $44.8 million compared to Economic Income (Loss) revenues of $893.7 million in the prior year period.

Investment Banking.    Investment banking revenues increased $23.1 million to $352.2 million for the year ended December 31, 2019 compared with $329.1 million in the prior year period. During the year ended December 31, 2019, the Company completed 126 capital markets transactions, 48 strategic advisory transactions and 14 debt capital markets transactions. During the year ended December 31, 2018, the Company completed 114 underwriting transactions, 30 strategic advisory transactions and seven debt capital markets transactions.

Brokerage.    Brokerage revenues decreased $11.9 million to $440.4 million for the year ended December 31, 2019, compared with $452.3 million in the prior year period. This was attributable to a decrease in institutional services and cross asset revenues partially offset by an increase in commission management revenue.  Customer trading volumes across the industry (according to Bloomberg) decreased 4% for the year ended December 31, 2019 compared to the prior year period.

Management Fees.    Management fees for the segment increased $0.2 million to $43.7 million for the year ended December 31, 2019 compared with $43.5 million in the prior year period. This increase in management fees was primarily related to an increase from our healthcare royalty business partially offset by a decrease in management fees from our activist business.

Incentive Income (Loss).    Incentive income for the segment increased $28.1 million to $45.0 million for the year ended December 31, 2019 compared with $16.9 million in the prior year period. This increase was related to an increase in performance fees from our activist and healthcare investments businesses.

Investment Income (Loss).    Investment income for the segment decreased $2.3 million to $51.3 million for the year ended December 31, 2019 compared with $53.6 million in the prior year period. The decrease primarily relates to a decrease in performance of the Company's own invested capital.

Other Income (Loss).    Other income (loss) for the segment increased $7.4 million to $5.8 million for the year ended December 31, 2019 compared with a loss of $1.6 million in the prior year period. The increase is due to higher premiums and lower claims and claims related reserves from our reinsurance business through 2019 compared to the same period in 2018.

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Asset Company Segment Revenues

The Asset Company segment Economic Income (Loss) revenues were $6.3 million for the year ended December 31, 2019, a decrease of $9.5 million compared with Economic Income (Loss) revenues of $15.8 million in the prior year.

Management Fees.    Management fees for the segment decreased $3.7 million to $2.0 million for the year ended December 31, 2019 compared with $5.7 million in the prior year period. This decrease in management fees was primarily related to a decrease in management fees from the real estate investments.

Incentive Income (Loss).    Incentive income for the segment decreased $5.7 million to $1.2 million for the year ended December 31, 2019 compared with income of $6.9 million in the prior year period. This decrease was related to a decrease in performance fees from the real estate investments and was partially offset by an increase in performance fees from the multi-strategy business.

Investment Income (Loss).    Investment income for the segment increased $0.3 million to $3.1 million for the year ended December 31, 2019, compared with income of $2.8 million in the prior year period. The increase primarily relates to an increase in performance of the Company's own invested capital.

Other Income (Loss).    Other income (loss) for the segment decreased $0.4 million to $0.1 million for the year ended December 31, 2019, compared with $0.5 million in the prior year period.

Interest expense

Interest expense increased $5.0 million to $28.0 million for the year ended December 31, 2019 compared with $23.0 million in the prior year period. Interest expense primarily relates to debt issued. The increase is primarily related to new debt issued in June of 2018 and May of 2019.

Non-Interest Expenses

Non-interest expenses.    Total non-interest expenses increased $51.1 million to $856.5 million for the year ended December 31, 2019, compared with $805.4 million in the prior year period.

Compensation and benefits expenses. Compensation and benefits expenses, included within non-interest expenses, increased $28.0 million to $537.5 million for the year ended December 31, 2019 compared with $509.6 million in the prior year period. The increase is due to a slightly higher compensation to revenue ratio which was 57% for the year ended December 31, 2019 compared with 56% in the prior year period.

Non-compensation Expenses—Fixed.    Fixed non-compensation expenses, included within non-interest expenses, increased $6.2 million to $146.7 million for the year ended December 31, 2019 compared with $140.5 million in the prior year period. The increase is primarily related to increased professional, advisory and other fees offset partially by lower expenses from equity investments.

The following table shows the components of the non-compensation expenses—fixed, for the year ended December 31, 2019 and 2018:

	Year Ended December 31,				Period-to-Period
	2019		2018		$ Change		% Change
	(dollars in thousands)
Non-compensation expenses—fixed:
Communications	$	30,097	$	29,325	$	772	3	%
Professional, advisory and other fees	27,975		22,647		5,328		24	%
Occupancy and equipment	38,334		39,560		(1,226)		(3)	%
Service fees	23,647		20,034		3,613		18	%
Expenses from equity investments	7,690		12,001		(4,311)		(36)	%
Reimbursement from affiliates	(1,130)		(1,304)		174		(13)	%
Other	20,059		18,248		1,811		10	%
Total	$	146,672	$	140,511	$	6,161	4	%

Depreciation and amortization expenses.  Depreciation and amortization expenses increased to $20.4 million for the year ended December 31, 2019 compared with $11.6 million in the prior year period. The increase in amortization expense primarily related to intangibles acquired through the Quarton acquisition in January 2019.

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Non-compensation Expenses—Variable.    Variable non-compensation expenses, included within non-interest expenses, which primarily are comprised of expenses that are incurred as a direct result of the processing and soliciting of revenue generating activities, increased $8.3 million to $151.9 million for the year ended December 31, 2019 compared with $143.6 million in the prior year period. The increase is related to increased marketing and business development costs offset partially by lower brokerage and trade execution costs.

The following table shows the components of the non-compensation expenses—variable, for the year ended December 31, 2019 and 2018:

	Year Ended December 31,				Period-to-Period
	2019		2018		$ Change		% Change
	(dollars in thousands)
Non-compensation expenses—Variable:
Brokerage and trade execution costs	$	102,336	$	106,115	$	(3,779)	(4)	%
HealthCare Royalty Partners syndication costs	264		529		(265)		(50)	%
Expenses related to Luxembourg companies	2,631		3,831		(1,200)		(31)	%
Marketing and business development	41,305		31,255		10,050		32	%
Other	5,330		1,919		3,411		178	%
Total	$	151,866	$	143,649	$	8,217	6	%

Non-Controlling Interests

Net income (loss) attributable to non-controlling interests decreased by $0.2 to $4.8 million for the year ended December 31, 2019 compared with $5.0 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.

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.

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Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

	Year Ended December 31,												Total Period-to-Period
	2018						2017
	Operating Company		Asset Company		Total		Operating Company		Asset Company		Total		$ Change		% Change
	(dollars in thousands)
Economic Income Revenues
Investment banking	$	329,061	$	—	$	329,061	$	223,614	$	—	$	223,614	$	105,447	47	%
Brokerage	452,299		—		452,299		312,780		—		312,780		139,519		45	%
Management fees	43,466		5,709		49,175		45,007		10,380		55,387		(6,212)		(11)	%
Incentive income (loss)	16,851		6,896		23,747		17,872		8,156		26,028		(2,281)		(9)	%
Investment income (loss)	53,593		2,753		56,346		7,204		37,938		45,142		11,204		25	%
Other income (loss)	(1,619)		451		(1,168)		3,307		(76)		3,231		(4,399)		(136)	%
Total economic income revenues	893,651		15,809		909,460		609,784		56,398		666,182		243,278		37	%
Interest Expense	17,489		5,524		23,013		13,599		5,289		18,888		4,125		22	%
Total net revenues	$	876,162	$	10,285	$	886,447	$	596,185	$	51,109	$	647,294	$	239,153	37	%

Economic Income (Loss)

Total Economic Operating Income (Loss) (which is Economic Income (Loss) before depreciation and amortization) was $80.9 million for the year ended December 31, 2018, an increase of $60.3 million compared to Economic Operating Income (Loss) of $20.6 million in the prior year period. Total Economic Income (Loss) was $76.1 million for the year ended December 31, 2018, an increase of $60.3 million compared to Economic Income (Loss) of $15.8 million in the prior year period.

Total Economic Income (Loss) revenues were $909.5 million for the year ended December 31, 2018, an increase of $243.3 million compared to Economic Income (Loss) revenues of $666.2 million in the prior year period. This was primarily related to an increase in investment banking and brokerage activity.

Operating Company Segment Revenues

The Op Co Segment Economic Income (Loss) revenues were $893.7 million for the year ended December 31, 2018, an increase of $283.9 million compared to Economic Income (Loss) revenues of $609.8 million in the prior year period.

Investment Banking. Investment banking revenues increased $105.5 million to $329.1 million for the year ended December 31, 2018 compared with $223.6 million in the prior year period. During the year ended December 31, 2018, the Company completed 114 underwriting transactions, 30 strategic advisory transactions and seven debt capital markets transactions. During the year ended December 31, 2017, the Company completed 103 underwriting transactions, 16 strategic advisory transactions and two debt capital markets transactions. The implied average underwriting fee per transaction was 21.1% greater for the year ended December 31, 2018 as compared to the prior year period.

Brokerage. Brokerage revenues increased $139.5 million to $452.3 million for the year ended December 31, 2018, compared with $312.8 million in the prior year period. This was attributable to an increase in revenues due to the acquisition of Convergex Group in June 2017 and increased revenue in our options and electronic trading businesses. Customer trading volumes across the industry (according to Bloomberg) increased 12% for the year ended December 31, 2018 compared to the prior year period.

Management Fees.    Management fees for the segment decreased $1.5 million to $43.5 million for the year ended December 31, 2018 compared with $45.0 million in the prior year period. This decrease in management fees was primarily related to a decrease in management fees from the activist business and healthcare royalty business which was only partially offset with an increase in management fees from our private healthcare business.

Incentive Income (Loss).    Incentive income for the segment decreased $1.0 million to $16.9 million for the year ended December 31, 2018 compared with $17.9 million in the prior year period. This decrease was related to a decrease in performance fees from the activist business offset almost completely by an increase in performance fees in our private healthcare and merger arbitrage businesses.

Investment Income (Loss).    Investment income for the segment increased $46.4 million to $53.6 million for the year ended December 31, 2018 compared with $7.2 million in the prior year period. The increase primarily relates to an increase in performance of the Company's own invested capital.

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Other Income (Loss).    Other income (loss) for the segment decreased $4.9 million to a loss of $1.6 million for the year ended December 31, 2018 compared with income of $3.3 million in the prior year period. The decrease primarily relates to a decrease in income from the Company's reinsurance business.

Asset Company Segment Revenues

Asset Co segment Economic Income (Loss) revenues were $15.8 million for the year ended December 31, 2018, a decrease of $40.6 million compared with Economic Income (Loss) revenues of $56.4 million in the prior year. .

Management Fees.   Management fees for the segment decreased $4.6 million to $5.8 million for the year ended December 31, 2018 compared with $10.4 million in the prior year period. This decrease in management fees was primarily related to the company's exit of two investment management strategies, one in the fourth quarter of 2017 and the other in the first quarter of 2018. .

Incentive Income (Loss)..    Incentive income for the segment decreased $1.3 million to $6.9 million for the year ended December 31, 2018 compared with $8.2 million in the prior year period. This decrease was related to a net payout related to the performance of certain multi-strategy assets.

Investment Income (Loss).    Investment income for the segment decreased $35.1 million to $2.8 million for the year ended December 31, 2018, compared with $37.9 million in the prior year period. The decrease primarily relates to a decrease in performance of the Company's own invested capital.

Other Income (Loss).    Other income (loss) for the segment increased $0.6 million to $0.5 million for the year ended December 31, 2018, compared with a loss of $0.1 million in the prior year period.

Interest expense

Interest expense increased $4.1 million to $23.0 million for the year ended December 31, 2018 compared with $18.9 million in the prior year period. Interest expense primarily relates to debt issued. The increase is primarily related to new debt issued in June of 2018.

Non-Interest Expenses

Non-interest expenses.    Total non-interest expenses increased $180.1 million to $805.4 million for the year ended December 31, 2018, compared with $625.3 million in the prior year period.

Compensation and benefits expenses. Compensation and benefits expenses, included within non-interest expenses, increased $121.6 million to $509.6 million for the year ended December 31, 2018 compared with $388.0 million in the prior year period. The increase is due to $243.3 million higher revenues during 2018 as compared to 2017 which resulted in a higher compensation and benefits accrual. The compensation to revenue ratio was 56% for the year ended December 31, 2018 compared with 58% in the prior year period.

Non-compensation Expenses—Fixed.    Fixed non-compensation expenses, included within non-interest expenses, increased $20.4 million to $140.5 million for the year ended December 31, 2018 compared with $120.1 million in the prior year period. The increase is primarily related to the acquisition of Convergex Group in June 2017.

The following table shows the components of the non-compensation expenses—fixed, for the year ended December 31, 2018 and 2017:

	Year Ended December 31,				Period-to-Period
	2018		2017		$ Change		% Change
	(dollars in thousands)
Non-compensation expenses—fixed:
Communications	$	29,325	$	23,378	$	5,947	25	%
Professional, advisory and other fees	22,647		20,944		1,703		8	%
Occupancy and equipment	39,560		33,928		5,632		17	%
Service fees	20,034		14,896		5,138		34	%
Expenses from equity investments	12,002		11,156		846		8	%
Reimbursement from affiliates	(1,304)		(2,033)		729		(36)	%
Other	18,248		17,819		429		2	%
Total	$	140,512	$	120,088	$	20,424	17	%

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Depreciation and amortization expenses.  Depreciation and amortization expenses remained flat at $11.6 million for the year ended December 31, 2018 and the prior year period. This is due to an increase in depreciable fixed assets related to the acquisition of Convergex Group in June 2017, offset by a decrease in amortization from certain intangibles which have been fully amortized.

Non-compensation Expenses—Variable.    Variable non-compensation expenses, included within non-interest expenses, which primarily are comprised of expenses that are incurred as a direct result of the processing and soliciting of revenue generating activities, increased $37.8 million to $143.6 million for the year ended December 31, 2018 compared with $105.8 million in the prior year period. The increase is primarily related to higher brokerage and trade execution costs, related to the acquisition of Convergex Group in June 2017.

The following table shows the components of the non-compensation expenses—variable, for the year ended December 31, 2018 and 2017:

	Year Ended December 31,				Period-to-Period
	2018		2017		$ Change		% Change
	(dollars in thousands)
Non-compensation expenses—Variable:
Brokerage and trade execution costs	$	106,115	$	73,133	$	32,982	45	%
HealthCare Royalty Partners syndication costs	529		528		1		—	%
Expenses related to Luxembourg companies	3,831		3,279		552		17	%
Marketing and business development	31,255		27,336		3,919		14	%
Other	1,919		1,510		409		27	%
Total	$	143,649	$	105,786	$	37,863	36	%

Reimbursement from Affiliates.    Reimbursements from affiliates, included within non-interest expenses, which relate to the investment management segment decreased $0.7 million to $1.3 million for the year ended December 31, 2018 compared to $2.0 million in the prior year period.

Non-Controlling Interests

Net income (loss) attributable to non-controlling interests decreased by $1.1 million to $5.0 million for the year ended December 31, 2018 compared with $6.1 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.

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.

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:

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

•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. 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 December 31, 2019, we had cash and cash equivalents of $301.1 million and net liquid investment assets of $542.3 million, which includes cash and cash equivalents and short-term investments held by foreign subsidiaries as of December 31, 2019 of $43.7 million. The Company continues to permanently reinvest the capital and accumulated earnings of its subsidiaries in the United Kingdom, Germany, Switzerland, Canada, South Africa and Hong Kong.

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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 once a year 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 December 31, 2019, we had security deposits totaling $91.8 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.

Unfunded commitments

The following table summarizes unfunded commitments as of December 31, 2019:

Entity	Unfunded Commitments		Commitment term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	7,605	5 years
Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.)	$	88	5 years
Lagunita Biosciences, LLC	$	500	4 years
Eclipse Fund II, L.P.	$	180	6 years
Eclipse Continuity Fund I, L.P.	$	152	7 years
Cowen Healthcare Investments II LP	$	3,406	2 years
Cowen Healthcare Investments III LP	$	8,602	7 years
Cowen Sustainable Investments I LP	$	25,000	10 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 clearing house 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.

Preferred Stock and Purchase of Capped Call Option

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 ("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.

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.

Each share of Series A Convertible Preferred Stock is convertible, at the option of the holder, into a number of shares of our 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, the Company may 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,

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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.

In connection with the issuance and sale of the Series A Convertible Preferred Stock, the Company entered into a capped call option transaction (the "Capped Call Option Transaction") with Nomura Global Financial Products Inc. for $15.9 million. The Capped Call Option Transaction is expected generally to reduce the potential dilution to the Company's Class A common stock (if the Company elects to convert to common shares) and/or offset any cash payments that the Company is required to make upon conversion of any Series A Convertible Preferred Stock. The Capped Call Option Transaction has an initial effective strike price of $26.27 per share, which matches the initial conversion price of the Series A Convertible Preferred Stock, and a cap price of $33.54 per share. However, to the extent that the market price of Class A common stock, as measured under the terms of the Capped Call Option Transaction, exceeds the cap price thereof, there would nevertheless be dilution and/or such cash payments would not be offset. As the Capped Call Option Transaction is a free standing derivative that is indexed to the Company's own stock price and the Company controls if it is settled in cash or stock it qualifies for equity classification as a reduction to additional paid in capital.

The Company may also 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.

Regulation

As registered broker-dealers, Cowen and Company, Cowen Execution, ATM Execution, Cowen Prime and Westminster are subject to the SEC's Uniform Net Capital Rule 15c3-1 ("SEC Rule 15c3-1"), 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. Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEC Rule 15c3-1, is $1.0 million. Cowen Execution, ATM Execution, Cowen Prime and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEC 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 SEC Rule 15c3-1 and other regulatory bodies.

On February 7, 2019, FINRA approved the transfer of all of Cowen Securities' business and personnel to Cowen and Company. Cowen Securities subsequently filed a Form BDW, pursuant to Section 15(b) of the Securities Exchange Act of 1934, with FINRA to withdraw its status as a broker-dealer given that it will no longer conduct a securities business. On May 21, 2019, Cowen Securities Form BDW was approved and officially deregistered with the SEC. As of December 31, 2019, the entity has been dissolved.

Cowen Prime is also subject to Commodity Futures Trading Commission Regulation 1.17 ("Regulation 1.17"). Regulation 1.17 requires net capital equal to or in excess of $45,000 or the amount of net capital required by SEC Rule 15c3-1, whichever is greater. Cowen Execution is also subject to Options Clearing Corporation ("OCC") Rule 302. OCC Rule 302 requires maintenance of net capital equal to the greater of $2,000,000 or 2% of aggregate debit items. At December 31, 2019, Cowen Execution had $103.2 million of net capital in excess of this minimum requirement.

Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the FCA, as defined, and must exceed the minimum capital requirement set forth by the FCA. Effective June 1, 2018, the FCA approved Ramius UK’s application to cancel all of its FCA authorization permissions. Accordingly, Ramius UK is no longer an FCA regulated and authorized firm. In April 2019, Cowen Execution Ltd was formally approved to trade in a principal capacity.

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 December 31, 2019, these regulated broker-dealers had regulatory net capital or financial resources, regulatory net capital requirements or minimum FCA or SFC requirement and excess as follows:

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Subsidiary	Net Capital		Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	91,348	$	1,000	$	90,348
Cowen Execution	$	105,822	$	2,673	$	103,149
ATM Execution	$	5,354	$	250	$	5,104
Cowen Prime	$	13,659	$	250	$	13,409
Westminster	$	14,797	$	250	$	14,547
Cowen International Ltd	$	15,988	$	7,597	$	8,391
Cowen Execution Ltd	$	11,808	$	2,509	$	9,299
Cowen Asia	$	1,307	$	385	$	922

The Company's U.S. broker-dealers must also comply with SEC's Customer Protection Rule ("SEC Rule 15c3-3") or claim an exemption pursuant to subparagraphs (k)(2)(i) (the "(k)(2)(i) exemption") or (k)(2)(ii) (the "(k)(2)(ii) exemption") of that rule. Firms can rely on more than one exemption. Cowen and Company, Cowen Prime, Cowen Execution and ATM Execution claim the (k)(2)(ii) exemption with regards to some or all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Cowen and Company, Cowen Prime and Westminster claim the (k)(2)(i) exemption with regards 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 Account").

In accordance with the requirements of SEC Rule 15c3-3, Cowen Execution may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of December 31, 2019, Cowen Execution had segregated approximately $17.6 million of cash, while its required deposit was $5.5 million.

As a clearing broker-dealer, Cowen Execution is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEC Rule 15c3-3. Cowen Execution conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEC Rule 15c3-3. This allows each correspondent firm that uses Cowen Execution as its clearing broker-dealer to classify its PAB account assets held at Cowen Execution as allowable assets in the correspondent's net capital calculation. At December 31, 2019, Cowen Execution had $22.5 million of cash on deposit in PAB Reserve Bank Accounts, which was more than its required deposit of $14.8 million.

Cowen and Company, ATM Execution, Cowen Prime and Cowen 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's Luxembourg reinsurance companies, Vianden RCG Re SCA and Hollenfels, individually and their Luxembourg parent holding company, Ramius Enterprise Luxembourg Holdco S.à r.l., on a combined basis with the reinsurance companies, are required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Luxembourg. Each reinsurance company's individual solvency capital ratio as well as the combined solvency capital ratio of the holding and reinsurance companies calculated as of December 31 of each year must exceed a minimum requirement. As of the last testing date, December 31, 2019, all of these entities were in excess of this minimum requirement. The companies are currently, and management expects they will be at the next testing date of December 31, 2020, in compliance with these 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 December 31, 2019. RCG Insurance Company’s capital and surplus as of December 31, 2019 totaled approximately $32.8 million.

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Cash Flows Analysis

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

Operating Activities.    Net cash used in operating activities of $179.9 million for the year ended December 31, 2019 was primarily related to the purchases of securities owned, at fair value, held at broker dealer, offset partially by stock borrow stock loan activity. Net cash provided by operating activities of $324.5 million for the year ended December 31, 2018 was primarily related to the (i) proceeds from sales of other investments in consolidated funds (ii) proceeds from sales of securities owned, at fair value, (iii) increase in payable to customers offset by decrease in receivable from brokers, dealers and clearing organizations and purchases of securities owned, at fair value. Net cash provided by operating activities of $3.4 million for the year ended December 31, 2017 was primarily related to purchases of securities owned, at fair value and decrease in securities borrowed partially offset by proceeds from sales of securities owned, at fair value.

Investing Activities.    Net cash used in investing activities of $47.6 million for the year ended December 31, 2019 was primarily related to the purchase of Quarton and other investments. Net cash used in investing activities of $17.9 million for the year ended December 31, 2018 was primarily related to purchases of other investments partially offset by proceeds from sales of other investments. Net cash used in investing activities of $2.4 million for the year ended December 31, 2017 was primarily related to the purchase of Convergex Group, loans issued and purchases of other investments offset partially by sales of other investments and fixed assets.

Financing Activities.    Net cash provided by financing activities for the year ended December 31, 2019 of $200.4 million was primarily related to (i) capital contributions by non-controlling interests offset only partially by capital withdrawals by non-controlling interests in Consolidating Funds and (ii) borrowings on notes and other debt.  Net cash provided by financing activities for the year ended December 31, 2018 of $128.7 million was primarily related to capital withdrawal to non-controlling interests in Consolidating Funds offset partially contributions from non-controlling interests in Consolidated Funds. Net cash provided by financing activities for the year ended December 31, 2017 of $137.9 million was primarily related to proceeds from the issuance of convertible debt, borrowings on notes and other debt and contributions from non-controlling interests in Consolidated Funds offset partially by repayments on convertible debt, notes and other debt, withdrawals from non-controlling interests in Consolidated Funds and purchase of treasury stock.

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 are due on 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 may be converted into cash or shares of Class A common stock at the Company's election based on the current conversion price. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock.

The Company used the net proceeds, together with cash on hand, from the offering for general corporate purposes, including the repurchase or repayment of $115.1 million of the Company's outstanding 3.0% cash convertible senior notes due March 2019 (the "March 2019 Convertible Notes") and the repurchase of approximately $19.5 million of the Company's shares of its Class A common stock, which were consummated substantially concurrently with the closing of the offering. As of December 31, 2019, the outstanding principal amount of the December 2022 Convertible Notes was $135.0 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 recorded interest expense of $4.1 million, $4.1 million and $0.2 million for the year ended December 31, 2019, 2018 and 2017, respectively. 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 consolidated statements of financial condition. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations is $4.3 million,$4.0 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively, 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

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the carrying value of the debt and will be amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying consolidated statements of operations.

March 2019 Convertible Notes

On March 10, 2014, the Company issued $149.5 million of 3.0% cash convertible senior notes (the "March 2019 Convertible Notes"). The March 2019 Convertible Notes matured on March 15, 2019 and were fully repaid by the Company. The Company recorded interest expense of $0.1 million, $1.1 million, and $4.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations was $0.3 million, $1.5 million and $7.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, based on an effective interest rate of 8.89%.

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 consolidated statement of financial condition.   To date the May 2024 Notes have maintained their initial private rating, and the interest rate has remained unchanged. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $2.9 million for the year ended December 31, 2019. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in December 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 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 $7.7 million and $4.3 million for the years ended December 31, 2019 and 2018, 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 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 $10.1 million, $10.1 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. 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 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.

Term Loan

On June 30, 2017, a subsidiary of the Company borrowed $28.2 million to fund general corporate purposes. This term loan has an effective interest rate of LIBOR plus 3.75% with a lump sum payment of the entire principal amount due (as amended) on June 26, 2020. In July 2019, the subsidiary of the Company borrowed an additional $4.0 million to fund general corporate purposes. The loan is secured by the value of the Company's limited partnership interests in two affiliated investment funds. The Company has provided a guarantee for this loan. The Company recorded interest expense of $1.8 million, $1.6 million and $0.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Other Notes Payable

During January 2019, the Company borrowed $2.2 million to fund insurance premium payments. This note had an effective interest rate of 2.51% and was due on December 31, 2019, with monthly payment requirements of $0.2 million. As of December 31, 2019, the note was fully repaid. Interest expense was $0.1 million for the year ended December 31, 2019.

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During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note is due November 2024, with monthly payment requirements of $0.1 million. As of December 31, 2019, the note had a balance of $2.5 million. Interest expense for the year ended December 31, 2019 was insignificant.

Revolver

The Company, in December 2019, entered into a two-year committed credit facility with a capacity of $25 million. This agreement has an effective interest rate of LIBOR plus 3.25% on any money drawn from the credit facility and the commitment or unused line fee is 50 basis points on the undrawn amount.

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 consolidated statements of financial condition, and have a weighted average lease term of 3.21 years and weighted average interest rate of 4.88% as of December 31, 2019.

For the year ended December 31, 2019, 2018 and 2017, quantitative information regarding the Company's finance lease obligations reflected in the accompanying consolidated statement of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Year Ended December 31,
	2019		2018
Lease Cost
Finance Lease Cost:
Amortization of finance lease right-of-use assets	$	1,266	$	1,627
Interest on lease liabilities	227		231
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	227		231
Financing cash flows from finance leases	$	1,266	$	2,186

Letters of Credit

As of December 31, 2019, the Company has the following 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 collateral for reinsurance agreements which amounted to $2.0 million as of December 31, 2019, and $1.0 million as of December 31, 2018, which are released annually between March 2020 and March 2023 based on the policy periods covered by the reinsurance agreements.

Location	Amount		Maturity
	(dollars in thousands)
Boston	$	382	March 2020
New York	$	359	April 2020
New York	$	398	October 2020
New York	$	1,125	October 2020
New York	$	1,629	November 2020
San Francisco	$	716	October 2025

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2019 and 2018, there were no amounts due related to these letters of credit.

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Contractual Obligations

The following tables summarize the Company's contractual cash obligations as of December 31, 2019:

	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	$	110,509	$	22,848	$	45,037	$	32,399	$	10,225
Service Payments	56,683		22,217		24,032		6,033		4,401
Operating Equipment Leases	639		360		279		—		—
Total	167,831		45,425		69,348		38,432		14,626
Debt
Convertible Debt	147,150		4,050		143,100		—		—
Notes Payable	527,217		23,548		47,096		122,269		334,304
Finance Lease Obligation	4,276		1,290		2,564		422		—
Term Loan	33,126		33,126		—		—		—
Other Notes Payable	2,915		593		1,186		1,136		—
Total	$	714,684	$	62,607	$	193,946	$	123,827	$	334,304

Clawback obligations

For financial reporting purposes, the general partners of a real estate fund had recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the real estate fund's remaining investments and where the real estate fund's general partner has previously received carried interest distributions. The clawback liability was not realized until the end of the real estate fund's life. The clawback obligations for the real estate fund were $6.5 million at December 31, 2019. The liability was fully repaid in December 2019. (see Notes 6 and 22 to the Company's consolidated financial statements).

Minimum payments for all debt outstanding

Annual scheduled maturities of debt and minimum payments for all debt outstanding as of December 31, 2019, are as follows:

	Convertible Debt		Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2020	$	4,050	$	23,548	$	33,126	$	593	$	1,290
2021	4,050		23,548		—		593		1,398
2022	139,050		23,548		—		593		1,166
2023	—		23,548		—		593		411
2024	—		98,721		—		543		11
Thereafter	—		334,304		—		—		—
Subtotal	147,150		527,217		33,126		2,915		4,276
Less (a)	(28,462)		(220,399)		(946)		(399)		(339)
Total	$	118,688	$	306,818	$	32,180	$	2,516	$	3,937

(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 convertible debt.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements as of December 31, 2019. However, through indemnification provisions in our clearing agreements, customer activities may expose us to off-balance-sheet credit risk. Pursuant to the clearing agreements, 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, Cowen Prime, Cowen Execution 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

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these arrangements is not quantifiable. Accordingly, no contingent liability is carried in the accompanying consolidated statements of financial condition for these arrangements.

Cowen Execution loans securities temporarily to other brokers in connection with its securities lending activities. Cowen Execution receives cash as collateral for the securities loaned. Increases in security prices may cause the market value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities, Cowen Execution may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its client obligations. Cowen Execution 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 Execution borrows securities temporarily from other brokers in connection with its securities borrowing activities. Cowen Execution deposits cash as collateral for the securities borrowed. Decreases in security prices may cause the market value of the securities borrowed to fall below the amount of cash deposited as collateral. In the event the counterparty to these transactions does not return collateral, Cowen Execution may be exposed to the risk of selling the securities at prevailing market prices. Cowen Execution 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 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 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 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 consolidates five investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2019, the Company consolidated the following investment funds: Ramius Enterprise LP (“Enterprise LP”), Ramius Merger Fund LLC (the "Merger Fund"), Cowen Private Investments LP ("Cowen Private"), Ramius Merger Arbitrage UCITS Fund ("UCITS Fund"), and Cowen Sustainable Investments I LP ("CSI I LP") (each a "Consolidated Fund" and collectively the "Consolidated Funds").

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.

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 does not consolidate certain funds that are VIEs due to the Company's conclusion that it is not the primary beneficiary of these funds in each instance. Investment fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company has equity interests in the funds as both general partner and limited partner. In these instances the Company has concluded that the variable interests are not potentially significant to the VIE. Although the Company may advance amounts and pay certain expenses on behalf of the investment funds that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services.

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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying 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 such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

In addition, the Company's broker-dealer subsidiaries apply the specialized industry accounting for brokers and dealers in securities. The Company also retains specialized accounting 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 1 Inputs 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 2  Inputs 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

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Level 3 Fair 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. However, the determination of what constitutes "observable" requires significant judgment by the Company. 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. For additional information regarding the use of unobservable inputs to fair value assets and liabilities see Note 7 in the accompanying consolidated financial statement in Part 1 Item 1.

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 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 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 include active listed equities, certain U.S. government and sovereign obligations, Exchange Traded Funds ("ETFs"), mutual funds and certain money market securities. The Company does not adjust the quoted price for such instruments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

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, have inputs which can generally be corroborated by market data and

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are therefore classified within level 2. OTC derivatives, such as swaps and options where market data is not readily available or observable are classified as level 3.

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

i.  Portfolio funds—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 guidance permits an entity holding investments in certain entities that either are investment companies as defined by the American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide, Investment Companies, or have attributes similar to an investment company, and calculate net asset value 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.  Real estate investments—Real estate debt and equity investments are measured at fair value. The fair value of real estate investments is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Real estate investments without a public market are valued based on assumptions and valuation techniques used by the Company. Such valuation techniques may include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence, as well as independent external appraisals. In general, the Company considers several valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate. Real estate investments are reviewed on a quarterly basis by the Company for significant changes at the property level or a significant change in the overall market which would impact the value of the real estate investment resulting in unrealized appreciation or depreciation.

Real estate and capital markets are cyclical in nature. Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates. In addition, the Company invests in real estate and real estate-related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. Amounts ultimately realized by the Company from investments sold may differ from the fair values presented, and the differences could be material.

The Company's real estate investments are typically categorized as level 3 investments within the fair value hierarchy as management uses significant unobservable inputs in determining their estimated fair value.

iii. 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 of 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.

iv. 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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying 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.

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In accordance with US GAAP requirements for testing for impairment of goodwill, inclusive of the newly adopted amendments, 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. The Company does not have any intangible assets deemed to have indefinite 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 consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to 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.

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. We evaluate our deferred tax assets for recoverability considering negative and positive evidence, including our historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. We record a valuation allowance against our deferred tax assets to bring them to a level that it is more likely than not to be utilized. In evaluating the need for a valuation allowance, we estimate future taxable income based on management-approved business plans. This process involves significant management judgment about assumptions that are subject to change from period to period. Because the recognition of deferred tax assets requires management to make significant judgments about future earnings, the periods in which items will impact taxable income and the application of inherently complex tax laws, we have identified the assessment of deferred tax assets and the need for any related valuation allowance as a critical accounting estimate.

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 consolidated statements of operations. See Note 22 "Commitments and Contingencies" in our accompanying consolidated financial statements for the annual ended December 31, 2019 for further discussion.

Recently adopted and future adoption of accounting pronouncements

        For a detailed discussion, see Note 2 "Recent pronouncements" in our accompanying consolidated financial statements for the annual ended December 31, 2019.

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Item 7A.    Quantitative and Qualitative Disclosures about Market Risk

The Company's primary exposure to market risk is a function of our role as investment manager for our funds and managed accounts, our role as a financial intermediary in customer trading and market making activities, as well as the fact that a significant portion of our own capital is invested in securities. Adverse movements in the prices of securities that are either owned or sold short may negatively impact the Company's management fees and incentive income, as well as the value of our own invested capital.

The market value of the assets and liabilities in our investment funds and managed accounts, as well as the Company's own securities, may fluctuate in response to changes in equity prices, interest rates, credit spreads, currency exchange rates, commodity prices, implied volatility, dividends, prepayments, recovery rates and the passage of time. The net effect of market value changes caused by fluctuations in these risk factors will result in gains (losses) for our investment funds and managed accounts which will impact our management fees and incentive income and for the Company's securities which will impact the value of our own invested capital as well as the capital utilized in facilitating customer trades. Some of the Company's investments are in private companies and other investments are in securities that are subject, from time to time, to contractual lock-up agreements or other resale restrictions. The private investments we have made generally have no established trading market or are generally subject to restrictions on resale. Our inability to liquidate these securities when it may be otherwise advantageous for us to do so could lead to volatility in the market value ascribed to these investments and securities which could adversely affect our investment income.

The Company's risk measurement and risk management processes are an integral part of our proprietary investment process as well as market making and customer facilitation trading activities. These processes are implemented at the individual position, strategy and total portfolio levels and are designed to provide a complete picture of the risks of the Company's balance sheet. The key elements of our risk reporting include sensitivities, exposures, stress testing and profit and loss attribution. As a result of our views of levels of risk being taken, the Company may undertake to hedge out some or all of any or all risks at either the individual position, strategy or total portfolio levels.

Impact on Management Fees

The Company's management fees are generally based on the net asset value of the Company's investment funds and managed accounts. Accordingly, management fees will change in proportion to changes in the market value of investments held by the Company's investment funds and managed accounts.

Impact on Incentive Income

The Company's incentive income is generally based on a percentage of the profits of the Company's various investment funds and managed accounts, which is impacted by global economies and market conditions as well as other factors. Consequently, incentive income cannot be readily predicted or estimated.

Custody and prime brokerage risks

There are risks involved in dealing with the custodians or prime brokers who settle trades. Under certain circumstances, including certain transactions where the Company's assets are pledged as collateral for leverage from a non-broker-dealer custodian or a non-broker-dealer affiliate of the prime broker, or where the Company's assets are held at a non-U.S. prime broker, the securities and other assets deposited with the custodian or broker may be exposed to credit risk with regard to such parties. In addition, there may be practical or timing problems associated with enforcing the Company's rights to its assets in the case of an insolvency of any such party.

Market risk

Market risk represents the risk of loss that may result from the change in value of a financial instrument due to fluctuations in its market price. Market risk may be exacerbated in times of trading illiquidity when market participants refrain from transacting in normal quantities and/or at normal bid-offer spreads. Our exposure to market risk is primarily related to the fluctuation in the fair values of securities owned and sold, but not yet purchased in the Company's investment funds and our role as a financial intermediary in customer trading and to our market making and investment activities. Market risk is inherent in financial instruments and risks arise in options, warrants and derivative contracts from changes in the fair values of their underlying financial instruments. Securities sold, but not yet purchased, represent obligations of the Company's investment funds to deliver specified securities at contracted prices and thereby create a liability to repurchase the securities at prevailing future market prices. We trade in equity securities as an active participant in both listed and over the counter markets. We typically maintain securities in inventory to facilitate our market making activities and customer order flow. We may use a variety of risk management techniques and hedging strategies in the ordinary course of our trading business to manage our exposures. In connection with our trading business, management also reviews reports appropriate to the risk profile of specific trading activities. Typically, market conditions are evaluated and transaction details and securities positions are reviewed. These activities are intended to ensure that our trading strategies are conducted within acceptable risk tolerance parameters,

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particularly when we commit our own capital to facilitate client trading. Activities include price verification procedures, position reconciliations and reviews of transaction booking. We believe these procedures, which stress timely communications between traders, trading management and senior management, are important elements of the risk management process.

A 10% change in the fair value of the investments held by the Company's investment funds as of December 31, 2019 would result in a change of approximately $1.1 billion in our assets under management and would impact management fees by approximately $4.4 million on an annual basis. This number is an estimate. The amount would be dependent on the fee structure of the particular investment fund or funds that experienced such a change.

Currency risk

The Company is also exposed to foreign currency fluctuations. Currency risk arises from the possibility that fluctuations in foreign currency exchange rates will affect the value of such financial instruments, including direct or indirect investments in securities of non-U.S. companies. A 10% weakening or strengthening of the U.S. dollar against all or any combination of currencies to which the Company's investments or the Company's investment funds have exposure to exchange rates would not have a material effect on the Company's revenues, net loss or Economic Income.

Inflation risk

Because our assets are, to a large extent, liquid in nature, they are not significantly affected by inflation. However, the rate of inflation affects such expenses as employee compensation and communications charges, which may not be readily recoverable in the prices of services we offer. To the extent inflation results in rising interest rates and has other adverse effects on the securities markets, it may adversely affect our financial condition and results of operations in certain businesses.

Leverage and interest rate risk

There is no guarantee that the Company's borrowing arrangements or other arrangements for obtaining leverage will continue to be available, or if available, will be available on terms and conditions acceptable to the Company. Unfavorable economic conditions also could increase funding costs, limit access to the capital markets or result in a decision by lenders not to extend credit to the Company. In addition, a decline in market value of the Company's assets may have particular adverse consequences in instances where we have borrowed money based on the market value of those assets. A decrease in market value of those assets may result in the lender (including derivative counterparties) requiring the Company to post additional collateral or otherwise sell assets at a time when it may not be in the Company's best interest to do so.

Credit risk

The Company clears all of its securities transactions through clearing brokers on a fully disclosed basis. Pursuant to the terms of the agreements between the Company and the clearing brokers, the clearing brokers have the right to charge the Company for losses that result from a counterparty's failure to fulfill its contractual obligations. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, we believe there is no maximum amount assignable to this right. Accordingly, at December 31, 2019, the Company had recorded no liability.

Credit risk is the potential loss the Company may incur as a result of the failure of a counterparty or an issuer to make payments according to the terms of a contract. The Company's exposure to credit risk at any point in time is represented by the fair value of the amounts reported as assets at such time.

In the normal course of business, our activities may include trade execution for our clients as well as agreements to borrow or lend securities. These activities may expose us to risk arising from price volatility which can reduce clients' ability to meet their obligations. To the extent investors are unable to meet their commitments to us, we may be required to purchase or sell financial instruments at prevailing market prices to fulfill clients' obligations.

In accordance with industry practice, client trades are settled generally two business days after trade date. Should either the client or the counterparty fail to perform, we may be required to complete the transaction at prevailing market prices.

We manage credit risk by monitoring the credit exposure to and the standing of each counterparty, requiring additional collateral where appropriate, and using master netting agreements whenever possible.

Operational risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. We outsource all or a portion of certain critical business functions, such as clearing. Accordingly, we negotiate our agreements with these firms with attention focused not only on the delivery of core services but also on the safeguards afforded by back-up systems and disaster recovery capabilities. We make specific inquiries on any relevant exceptions noted in a service provider's System and Organization Controls (SOC) report on the state of its internal controls, when available.

62

Our service offerings in electronic and algorithmic trading require us to maintain consistent levels of speed and accuracy in the management of orders generated by our models. We monitor these activities on a continuous basis and do not believe that they comprise a material risk.

Our Internal Audit department oversees, monitors, measures, analyzes and reports on operational risk across the Company. The scope of Internal Audit encompasses the examination and evaluation of the adequacy and effectiveness of the Company's system of internal controls and is sufficiently broad to help determine whether the Company's network of risk management, control and governance processes, as designed by management, is adequate and functioning as intended. Internal Audit works with the senior management to help ensure a transparent, consistent and comprehensive framework exists for managing operational risk within each area, across the Company and globally.

We are focused on maintaining our overall operational risk management framework and minimizing or mitigating these risks through a formalized control assessment process to ensure awareness and adherence to key policies and control procedures. Primary responsibility for management of operational risk is with the businesses and the business managers therein. The business managers, generally, maintain processes and controls designed to identify, assess, manage, mitigate and report operational risk. As new products and business activities are developed and processes are designed and modified, operational risks are considered.

Legal risk

Legal risk includes the risk of non-compliance with applicable legal and regulatory requirements and standards. Legal risk also includes contractual and commercial risk such as the risk that a counterparty's performance obligations will be unenforceable. The Company has established procedures based on legal and regulatory requirements that are designed to achieve compliance with applicable statutory and regulatory requirements. The Company, principally through the Legal and Compliance Division, also has established procedures that are designed to require that the Company's policies relating to conduct, ethics and business practices are followed. In connection with its businesses, the Company has and continuously develops various procedures addressing issues such as regulatory capital requirements, sales and trading practices, new products, potential conflicts of interest, use and safekeeping of customer funds and securities, money laundering, privacy and recordkeeping. In addition, the Company has established procedures to mitigate the risk that a counterparty's performance obligations will be unenforceable, including consideration of counterparty legal authority and capacity, adequacy of legal documentation, the permissibility of a transaction under applicable law and whether applicable bankruptcy or insolvency laws limit or alter contractual remedies. The legal and regulatory focus on the financial services industry presents a continuing business challenge for the Company.

Item 8.    Financial Statements and Supplementary Data

The financial statements and supplementary data required by this item are listed in Item 15—"Exhibits and Financial Statement Schedules" of this Annual Report on Form 10-K.

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A.    Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act, that are designed to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of December 31, 2019, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective and were operating at the reasonable assurance level.

For Management's report on internal control over financial reporting see page F-2, and attestation report of our independent registered public accounting firm see page F-3.

63

In addition, there were no changes in our internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act, that occurred in the fourth quarter.

Item 9B. Other Information

None.

PART III

Item 10.    Directors, Executive Officers and Corporate Governance

The information in the definitive proxy statement for our 2020 annual meeting of stockholders under the captions "Executive Officers," "Board of Directors," "Information Regarding the Board of Directors and Corporate Governance—Committees of the Board—Audit Committee," "Information Regarding the Board of Directors and Corporate Governance—Director Nomination Process," "Information Regarding the Board of Directors and Corporate Governance—Procedures for Nominating Director Candidates," "Information Regarding the Board of Directors and Corporate Governance—Code of Business Conduct and Ethics" and "Section 16(a) Beneficial Ownership Reporting Compliance" is incorporated herein by reference.

Item 11.    Executive Compensation

The information in the definitive proxy statement for our 2020 annual meeting of stockholders under the captions "Executive Compensation—Compensation and Benefits Committee Report," "Certain Relationships and Related Transactions—Compensation and Benefits Committee Interlocks and Insider Participation" and "Information Regarding the Board of Directors and Corporate Governance—Compensation Program for Non-Employee Directors" is incorporated herein by reference.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information in the definitive proxy statement for our 2020 annual meeting of stockholders under the captions "Security Ownership—Beneficial Ownership of Directors, Nominees and Executive Officers," "Security Ownership—Beneficial Owners of More than Five Percent of our Common Stock" and "Securities Authorized for Issuance Under Equity Compensation Plans" are incorporated herein by reference.

Item 13.    Certain Relationships and Related Transactions

The information in the definitive proxy statement for our 2020 annual meeting of stockholders under the captions "Information Regarding the Board of Directors and Corporate Governance—Director Independence," "Certain Relationships and Related Transactions—Transactions with Related Persons," and "Certain Relationships and Related Transactions—Review and Approval of Transactions with Related Persons" is incorporated herein by reference.

Item 14.    Principal Accountant Fees and Services

The information in the definitive proxy statement for our 2020 annual meeting of stockholders under the captions "Audit Committee Report and Payment of Fees to Our Independent Auditor—Auditor Fees" and "Audit Committee Report and Payment of Fees to Our Independent Auditor—Auditor Services Pre-Approval Policy" is incorporated herein by reference.

PART IV

Item 15.    Exhibits and Financial Statement Schedules

(a)Documents filed as part of this Annual Report on Form 10-K:

1. Consolidated Financial Statements

The consolidated financial statements required to be filed in the Annual Report on Form 10-K are listed on page F-1 hereof. The required financial statements appear on pages F-1 through F-82 hereof.

2. Financial Statement Schedules

Separate financial statement schedules have been omitted either because they are not applicable or because the required information is included in the consolidated financial statements.

3. Exhibits

64

Exhibit No.	Description
2.1	Securities Purchase Agreement, dated as of April 2, 2017, by and among Convergex Holdings LLC, Convergex Group, LLC, GTCR Convergex Holdings LLC, Cowen CV Acquisition LLC and Cowen Inc. (previously filed as Exhibit 2.1 to the Form 8-K filed on April 6, 2017)
2.2	Purchase Agreement, dated as of November 20, 2018, by and among Cowen Inc., Cowen International Limited, Cowen QN Acquisition LLC, the Sellers signatory thereto, the Beneficial Owners signatory thereto and the Seller Representatives signatory thereto (previously filed as Exhibit 2.1 to the Form 8-K filed on November 21, 2018).
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)
4.1	Form of Class A Common Stock Certificate (previously filed as Exhibit 4.1 to Amendment No. 2 to Form S-1 filed on December 14, 2009).
4.2	Indenture, dated March 10, 2014 by and between Cowen Inc., as Issuer and The Bank of New York Mellon, as Trustee (previously filed as Exhibit 4.1 to Form 8-K filed on March 11, 2014).
4.3	First Supplemental Indenture by and between Cowen Inc., as Issuer and The Bank of New York Mellon, as Trustee (previously filed as Exhibit 4.1 to the Form 10-Q filed May 8, 2014).
4.4	Senior Notes Indenture dated October 10, 2014, by and between Cowen Inc. and The Bank of New York Mellon (previously filed as Exhibit 4.1 to Form 8-K filed on October 10, 2014).
4.5	First Supplemental Indenture dated October 10, 2014, by and between Cowen Inc. and The Bank of New York Mellon (previously filed as Exhibit 4.2 to Form 8-K filed on October 10, 2014).
4.6	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).
4.7	Indenture, dated as of December 14, 2017 between Cowen Inc. and The Bank of New York Mellon (previously filed as Exhibit 4.1 to Form 8-K filed on December 14, 2017).
4.8	Second Supplemental Indenture, dated as of December 8, 2017, by and between Cowen Inc. and The Bank of New York Mellon, as Trustee. (previously filed as Exhibit 4.2 to Form 8-K filed on December 8, 2017).
4.9	Third Supplemental Indenture, dated June 11, 2018, by and between Cowen Inc. and The Bank of New York Mellon (previously filed as Exhibit 4.2 to the Form 8-K filed June 11, 2018).
4.10	Form of Note Purchase Agreement including Form of Note attached thereto (previously filed as Exhibit 4.1 to the Form 8-K filed April 29, 2019).
4.11	Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (filed herewith).
10.1	Lease, dated as of June 22, 2007 by and between 599 Lexington Avenue LLC and Cowen Investment Management LLC (as successor in interest to RCG Holdings LLC (f/k/a Ramius Capital Group, LLC)), as amended by the First Amendment to Lease, dated as of June 9, 2008, by and between BP 599 Lexington Avenue LLC and Cowen Investment Management LLC (as successor in interest to RCG Holdings LLC (f/k/a Ramius LLC)) (previously filed as Exhibit 10.14 to Amendment No. 2 to Form S-1 filed on December 14, 2009).
10.2	Cowen Inc. 2006 Equity and Incentive Plan (previously filed as Exhibit 10.20 to Amendment No. 2 to Form S-1 filed on December 14, 2009).*
10.3	Cowen Inc. 2007 Equity and Incentive plan (previously filed as Exhibit 10.21 to Amendment No. 2 to Form S-1 filed on December 14, 2009).*
10.4	Cowen Inc. 2010 Equity and Incentive Plan (incorporated by reference to Appendix A to the Definitive Proxy Statement of Cowen Inc., on Schedule 14A for the year ended December 31, 2009, as filed on April 30, 2010).*

65

Exhibit No.	Description
10.5	Second Amendment to Lease dated August 20, 2010 between BP 599 Lexington Avenue and the Company, amending that certain Lease dated as of June 22, 2007 by and between 599 Lexington Avenue LLC and Cowen Investment Management LLC (as successor in interest to RCG Holdings LLC (f/k/a Ramius Capital Group, LLC)), as amended by the First Amendment to Lease, dated as of June 9, 2008, by and between BP 599 Lexington Avenue LLC and Ramius LLC (previously filed as Exhibit 10.2 to Form 8-K filed August 24, 2010).
10.6	Form of Restricted Stock Unit and Deferred Cash Award Agreement (previously filed as Exhibit 10.18 to the Form 10-K filed on March 9, 2012).*
10.7	Employment Agreement, dated as of May 31, 2012, by and between Cowen Inc. and Jeffrey Solomon (previously filed as Exhibit 10.1 to the Form 8-K filed June 1, 2012).*
10.8	Employment Agreement, dated as of August 2, 2012, by and between Cowen Inc. and Stephen Lasota (previously filed as Exhibit 10.1 to the Form 8-K filed August 3, 2012).*
10.9	Employment Agreement, dated as of August 2, 2012, by and between Cowen Inc. and Owen Littman (previously filed as Exhibit 10.2 to the Form 8-K filed August 3, 2012).*
10.10	Employment Agreement, dated as of August 2, 2012, by and between Cowen Inc. and John Holmes (previously filed as Exhibit 10.1 to the Form 10-Q filed August 7, 2013.*
10.11	Amendment to the Employment Agreement between the Company and Stephen Lasota dated April 24, 2015 (previously filed as Exhibit 10.1 to Form 8-K filed April 27, 2015).*
10.12	Amendment to the Employment Agreement between the Company and John Holmes dated April 24, 2015 (previously filed as Exhibit 10.2 to Form 8-K filed April 27, 2015).*
10.13	Amendment to the Employment Agreement between the Company and Owen Littman dated April 24, 2015 (previously filed as Exhibit 10.3 to Form 8-K filed April 27, 2015).*
10.14	Initial capped call confirmation, dated as of May 13, 2015, by and between Nomura Global Financial Products Inc. and the Company (previously filed as Exhibit 10.1 to Form 8-K filed May 20, 2015).
10.15	Additional capped call confirmation, dated as of May 19, 2015, by and between Nomura Global Financial Products Inc. and the Company (previously filed as Exhibit 10.2 to Form 8-K filed May 20, 2015).
10.16	Form of Performance Shares Award Agreement (previously filed as Exhibit 10.1 to the Form 10-Q filed May 2, 2016).*
10.17	Underwriting Agreement, dated as of December 5, 2017, by and between Cowen Inc. and with Morgan Stanley & Co. LLC and UBS Securities LLC, as representatives of the several Underwriters named therein. (previously filed as Exhibit 1.1 to the Form 8-K filed December 8, 2017).
10.18	Letter Amendment between the Company and Mr. Solomon dated November 30, 2017 (previously filed as Exhibit 10.1 to the Form 8-K filed December 1, 2017).*
10.19	Underwriting Agreement, dated as of June 6, 2018, by and between Cowen Inc. and with Morgan Stanley & Co. LLC and UBS Securities LLC, as representatives of the several Underwriters named therein (previously filed as Exhibit 1.1 to the Form 8-K filed June 11, 2018).
10.20	Form of Performance Shares Award Agreement (previously filed as Exhibit 10.1 to the Form 10-Q filed August 1, 2019).*
10.21	Credit Agreement dated December 2, 2019 (previously filed as Exhibit 10.1 to the Form 8-K filed December 4. 2019).
10.22	Form of Restricted Stock Unit and Deferred Cash Award (filed herewith).*
10.23	Amended and Restated Employment Agreement between the Company and Jeffrey Solomon dated January 31, 2020 (previously filed as Exhibit 10.1 to Form 8-K filed February 3, 2020). *
10.24	Amended and Restated Employment Agreement between the Company and John Holmes dated January 31, 2020 (previously filed as Exhibit 10.2 to Form 8-K filed February 3, 2020). *
10.25	Amended and Restated Employment Agreement between the Company and Stephen Lasota dated January 31, 2020 (previously filed as Exhibit 10.3 to Form 8-K filed February 3, 2020).*
10.26	Amended and Restated Employment Agreement between the Company and Owen Littman dated January 31, 2020 (previously filed as Exhibit 10.4 to Form 8-K filed February 3, 2020).*
21.1	Subsidiaries of Cowen Inc. (filed herewith).
23.1	Consent of Independent Registered Public Accounting Firm (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).

66

Exhibit No.	Description
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. 

Item 16. Form 10-K Summary

Not Applicable.

67

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements		Page
Management's Report on Internal Control over Financial Reporting		F-2
Report of Independent Registered Public Accounting Firm		F-3
Consolidated Statements of Financial Condition		F-5
Consolidated Statements of Operations		F-7
Consolidated Statements of Comprehensive Income (Loss)		F-9
Consolidated Statements of Changes in Equity		F-10
Consolidated Statements of Cash Flows		F-12
Notes to Consolidated Financial Statements		F-14
	Note 1—Organization and Business	F-14
	Note 2—Significant Accounting Policies	F-15
	Note 3—Acquisition	F-33
	Note 4—Cash Collateral Pledged	F-34
	Note 5— Segregated Cash	F-35
	Note 6—Investments of Operating Entities and Consolidated Funds	F-35
	Note 7—Fair Value Measurements for Operating Entities and Consolidated Funds	F-46
	Note 8—Deposits with Clearing Organizations, Brokers and Banks	F-53
	Note 9—Receivable from and Payable to Brokers and Clearing Organizations	F-53
	Note 10—Receivable From and Payable to Customers	F-53
	Note 11—Fixed Assets	F-54
	Note 12—Goodwill and Intangible Assets	F-54
	Note 13—Other Assets	F-56
	Note 14—Commission Management Payable	F-57
	Note 15—Accounts Payable, Accrued Expenses and Other Liabilities	F-57
	Note 16—Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds	F-57
	Note 17—Reinsurance	F-58
	Note 18—Other Revenues and Expenses	F-58
	Note 19—Share-Based and Deferred Compensation and Employee Ownership Plans	F-58
	Note 20—Defined Contribution Plans	F-60
	Note 21—Income Taxes	F-60
	Note 22—Commitments and Contingencies	F-63
	Note 23—Convertible Debt and Notes Payable	F-66
	Note 24—Stockholder's Equity	F-69
	Note 25—Accumulated Other Comprehensive Income (Loss)	F-71
	Note 26—Earnings Per Share	F-71
	Note 27—Segment Reporting	F-72
	Note 28—Regulatory Requirements	F-77
	Note 29—Related Party Transactions	F-79
	Note 30—Guarantees and Off-Balance Sheet Arrangements	F-79
	Note 31—Subsequent Events	F-81

F-1

Management's Report on Internal Control over Financial Reporting

Management of Cowen Inc. (the "Company") is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is a process designed under the supervision of the Company's principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external reporting purposes in accordance with U.S. generally accepted accounting principles.

As of the end of the Company's 2019 fiscal year, management conducted an assessment of the Company's internal control over financial reporting based on the framework established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has determined that the Company's internal control over financial reporting as of December 31, 2019 was effective.

Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on our financial statements.

The Company's internal control over financial reporting as of December 31, 2019 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report included herein, which expresses an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2019.

F-2

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Cowen Inc.:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated statements of financial condition of Cowen Inc. and subsidiaries (the Company) as of December 31, 2019 and 2018, the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2019, and the related notes (collectively, the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2019, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

F-3

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

We have served as the Company's auditor since 2017.

New York, New York

March 4, 2020

F-4

Cowen Inc. Consolidated Statements of Financial Condition (dollars in thousands, except share and per share data)
Assets	As of December 31, 2019		As of December 31, 2018
Cash and cash equivalents	$	301,123	$	259,148
Cash collateral pledged	6,563		6,318
Segregated cash	107,328		176,647
Securities owned, at fair value ($112,451 and $57,583 were pledged to various parties)	1,633,552		520,888
Receivable on derivative contracts, at fair value	62,977		25,125
Securities borrowed	754,441		407,795
Other investments ($125,240 and $123,241 at fair value, respectively)	185,722		181,407
Deposits with clearing organizations, brokers and banks	91,755		89,423
Receivable from brokers, dealers and clearing organizations, net of allowance of $721 and $472, respectively	681,695		786,113
Receivable from customers, net of allowance of $650 and $516, respectively	105,647		37,858
Fees receivable, net of allowance of $2,620 and $1,569, respectively	126,358		111,946
Due from related parties	26,749		33,870
Fixed assets, net of accumulated depreciation and amortization of $32,846 and $31,630, respectively	33,661		26,443
Operating lease right-of-use assets	92,852		—
Goodwill	137,728		60,678
Intangible assets, net of accumulated amortization of $26,395 and $38,093, respectively	35,200		24,943
Deferred tax asset, net	79,166		93,057
Other assets	84,158		79,014
Consolidated Funds
Cash and cash equivalents	30,874		38,118
Securities owned, at fair value	375,278		187,633
Receivable on derivative contracts, at fair value	5,833		4,416
Other investments	175,769		186,395
Receivable from brokers	25,964		8,328
Other assets	1,632		740
Total Assets	$	5,162,025	$	3,346,303
Liabilities and Stockholders' Equity
Liabilities
Securities sold, not yet purchased, at fair value	$	451,836	$	195,307
Securities sold under agreements to repurchase	23,244		—
Payable for derivative contracts, at fair value	60,761		16,082
Securities loaned	1,601,866		414,852
Payable to brokers, dealers and clearing organizations	271,018		228,731
Payable to customers	430,224		525,153
Commission management payable	71,620		95,270
Compensation payable	223,139		226,971
Operating lease liabilities	97,581		—
Notes payable and other debt	345,451		262,965
Convertible debt	118,688		134,489
Fees payable	21,540		22,565
Due to related parties	1		571
Accounts payable, accrued expenses and other liabilities	141,556		110,423

F-5

Cowen Inc. Consolidated Statements of Financial Condition (dollars in thousands, except share and per share data)
	As of December 31, 2019		As of December 31, 2018
(continued)
Consolidated Funds
Due to related parties	581		—
Payable for derivative contracts, at fair value	4,769		1,663
Payable to brokers	864		23,521
Capital withdrawals payable	1,276		11,106
Accounts payable, accrued expenses and other liabilities	560		424
Total Liabilities	$	3,866,575	$	2,270,093
Commitments and Contingencies (Note 22)
Temporary Equity
Redeemable non-controlling interests	$	391,275	$	216,923
Permanent Equity
Cowen Inc. stockholders' equity
Preferred stock, par value $0.01 per share: 10,000,000 shares authorized, 120,750 shares issued and outstanding as of December 31, 2019 (aggregate liquidation preference of $120,750,000) and 10,000,000 shares authorized, 120,750 shares issued and outstanding as of December 31, 2018 (aggregate liquidation preference of $120,750,000), respectively	$	1	$	1
Class A common stock, par value $0.01 per share: 62,500,000 shares authorized, 47,215,938 shares issued and 28,610,357 outstanding as of December 31, 2019 and 62,500,000 shares authorized, 43,774,731 shares issued and 28,437,860 outstanding as of December 31, 2018, respectively (including 216,912 and 253,772 restricted shares, respectively)	334		324
Class B common stock, par value $0.01 per share: 62,500,000 authorized, no shares issued and outstanding as of December 31, 2019 and 2018, respectively	—		—
Additional paid-in capital	1,110,635		1,062,877
(Accumulated deficit) retained earnings	(16,809)		(34,648)
Accumulated other comprehensive income (loss)	(5)		(5)
Less: Class A common stock held in treasury, at cost, 18,605,581 and 15,336,871 shares as of December 31, 2019 and 2018, respectively	(284,301)		(234,142)
Total Cowen Inc. Stockholders' Equity	809,855		794,407
Nonredeemable non-controlling interests	94,320		64,880
Total Permanent Equity	$	904,175	$	859,287
Total Liabilities, Temporary Equity and Permanent Equity	$	5,162,025	$	3,346,303

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

F-6

Cowen Inc. Consolidated Statements of Operations (in thousands, except per share data)
	Year Ended December 31,
	2019		2018		2017
Revenues
Investment banking	$	375,025	$	357,222	$	223,614
Brokerage	402,747		413,582		293,610
Management fees	32,608		29,658		33,245
Incentive income	1,547		3,117		5,383
Interest and dividends	174,913		108,009		49,440
Reimbursement from affiliates	1,026		1,038		2,860
Aircraft lease revenue	—		1,852		3,751
Reinsurance premiums	46,335		38,096		30,996
Other revenues	5,433		4,504		8,561
Consolidated Funds
Interest and dividends	9,772		9,816		5,870
Other revenues	37		22		1,451
Total revenues	1,049,443		966,916		658,781
Interest and dividends expense	168,628		104,116		60,949
Total net revenues	880,815		862,800		597,832
Expenses
Employee compensation and benefits	535,772		512,627		404,087
Brokerage and trade execution costs	103,235		109,399		75,601
Underwriting expenses	15,067		15,282		—
Professional, advisory and other fees	48,385		40,957		31,942
Service fees	23,707		20,198		14,999
Communications	31,894		30,801		23,460
Occupancy and equipment	39,726		41,602		35,184
Depreciation and amortization	20,460		12,436		13,078
Client services and business development	50,371		35,927		28,327
Goodwill impairment	4,100		—		—
Reinsurance claims, commissions and amortization of deferred acquisition costs	44,070		41,086		30,486
Restructuring costs	—		—		8,763
Other expenses	23,114		22,014		18,196
Consolidated Funds
Interest and dividends	4,602		6,534		9,836
Professional, advisory and other fees	2,426		938		1,145
Brokerage and trade execution costs	122		256		318
Other expenses	1,813		887		1,227
Total expenses	948,864		890,944		696,649
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	80,409		68,043		76,179
Bargain purchase gain, net of tax	—		—		6,914
Gain/(loss) on debt extinguishment	—		(556)		(16,039)
Consolidated Funds
Net realized and unrealized gains (losses) on investments and other transactions	59,384		46,656		19,660
Net realized and unrealized gains (losses) on derivatives	(1,003)		9,408		19,476
Net gains (losses) on foreign currency transactions	(18)		191		(411)
Total other income (loss)	138,772		123,742		105,779
Income (loss) before income taxes	70,723		95,598		6,962
Income tax expense (benefit)	14,853		15,719		44,053
Net income (loss)	55,870		79,879		(37,091)

F-7

Cowen Inc. Consolidated Statements of Operations (in thousands, except per share data)
	Year Ended December 31,
	2019		2018		2017
(continued)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	31,239		37,060		23,791
Net income (loss) attributable to Cowen Inc.	24,631		42,819		(60,882)
Preferred stock dividends	6,792		6,792		6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$	17,839	$	36,027	$	(67,674)
Weighted average common shares outstanding:
Basic	29,525		29,545		29,492
Diluted	31,286		30,735		29,492
Earnings (loss) per share:
Basic	$	0.60	$	1.22	$	(2.29)
Diluted	$	0.57	$	1.17	$	(2.29)

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

F-8

Cowen Inc.

Consolidated Statements of Comprehensive Income (Loss)

(dollars in thousands)

	Year Ended December 31,
	2019			2018			2017
Net income (loss)		$	55,870		$	79,879		$	(37,091)
Other comprehensive income (loss), net of tax:
Foreign currency translation	—			3			(6)
Total other comprehensive income (loss), net of tax		—			3			(6)
Comprehensive income (loss)		$	55,870		$	79,882		$	(37,097)
Less: Comprehensive income attributable to non-controlling interests		31,239			37,060			23,791
Comprehensive income (loss) attributable to Cowen Inc.		$	24,631		$	42,822		$	(60,888)

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

F-9

Cowen Inc.

Consolidated Statements of Changes in Equity

(dollars in thousands, except share data)

	Common Shares Outstanding	Common Stock		Preferred Shares Outstanding	Preferred Stock		Treasury Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings/ (Accumulated deficit)		Total Cowen Inc. Stockholders' Equity		Nonredeemable Non-controlling Interests		Total Permanent Equity		Redeemable Non-controlling Interest
Balance, December 31, 2016	26,731,289	$	292	120,750	$	1	$	(153,845)	$	928,646	$	(2)	$	(2,442)	$	772,650	$	98,678	$	871,328	$	280,527
Net income (loss) attributable to Cowen Inc.	—	—		—	—		—		—		—		(60,882)		(60,882)		—		(60,882)		—
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	—	—		—	—		—		—		—		—		—		16,134		16,134		7,657
Foreign currency translation	—	—		—	—		—		—		(6)		—		(6)		—		(6)		—
Capital contributions	—	—		—	—		—		—		—		—		—		30,078		30,078		89,034
Capital withdrawals	—	—		—	—		—		—		—		—		—		(39,303)		(39,303)		(42,201)
Restricted stock awards issued	2,060,927	—		—	—		—				—		—		—		—		—		—
Common stock issuance upon acquisition (See Note 3)	3,162,278	32		—	—		—		47,575		—		—		47,607		—		47,607		—
Purchase of treasury stock, at cost	(2,322,474)	—		—	—		(33,001)		—		—		—		(33,001)		—		(33,001)		—
Preferred stock dividends (See Note 24)	—	—		—	—		—		—		—		(6,792)		(6,792)		—		(6,792)		—
Amortization of share based compensation	—	—		—	—		—		28,443		—		—		28,443		—		28,443		—
Balance, December 31, 2017	29,632,020	$	324	120,750	$	1	$	(186,846)	$	1,004,664	$	(8)	$	(70,116)	$	748,019	$	105,587	$	853,606	$	335,017
Cumulative effect of the adoption of the new revenue recognition standard (See Note 3)	—	—		—	—		—		—		—		(559)		(559)		—		(559)		—
Net income (loss) attributable to Cowen Inc.	—	—		—	—		—		—		—		42,819		42,819		—		42,819		—
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	—	—		—	—		—		—		—		—		—		12,308		12,308		24,752
Foreign currency translation	—	—		—	—		—		—		3		—		3		—		3		—
Capital contributions	—	—		—	—		—		—		—		—		—		7,888		7,888		107,117
Capital withdrawals	—	—		—	—		—		—		—		—		—		(28,344)		(28,344)		(249,963)
Deconsolidation of entity	—	—		—	—		—		—		—		—		—		(32,559)		(32,559)		—
Restricted stock awards issued	2,009,435	—		—	—		—		—		—		—		—		—		—		—
Purchase of treasury stock, at cost	(3,203,595)	—		—	—		(47,296)		—		—		—		(47,296)		—		(47,296)		—
Preferred stock dividends (See Note 24)	—	—		—	—		—		—		—		(6,792)		(6,792)		—		(6,792)		—
Embedded cash conversion option, net of tax (See Note 24)	—	—		—	—		—		21,195		—		—		21,195		—		21,195		—
Amortization of share based compensation	—	—		—	—		—		37,018		—		—		37,018		—		37,018		—
Balance, December 31, 2018	28,437,860	$	324	120,750	$	1	$	(234,142)	$	1,062,877	$	(5)	$	(34,648)	$	794,407	$	64,880	$	859,287	$	216,923

F-10

	Common Shares Outstanding	Common Stock		Preferred Shares Outstanding	Preferred Stock		Treasury Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings/ (Accumulated deficit)		Total Cowen Inc. Stockholders' Equity		Nonredeemable Non-controlling Interests		Total Permanent Equity		Redeemable Non-controlling Interest
Net income (loss) attributable to Cowen Inc.	—	—		—	—		—		—		—		24,631		24,631		—		24,631		—
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	—	—		—	—		—		—		—		—		—		22,797		22,797		8,442
Foreign currency translation	—	—		—	—		—		—		—		—		—		—		—		—
Capital contributions	—	—		—	—		—		—		—		—		—		11,655		11,655		266,504
Capital withdrawals	—	—		—	—		—		—		—		—		—		(5,012)		(5,012)		(100,594)
Restricted stock awards issued	2,407,857	—		—	—		—		—		—		—		—		—		—		—
Purchase of treasury stock, at cost	(3,268,710)	—		—	—		(50,159)		—		—		—		(50,159)		—		(50,159)		—
Common stock issuance upon acquisition (See Note 3)	1,033,350	10		—	—		—		14,436		—		—		14,446		—		14,446		—
Preferred stock dividends (See Note 24)	—	—		—	—		—		—		—		(6,792)		(6,792)		—		(6,792)		—
Embedded cash conversion option, net of tax (See Note 24)	—	—		—	—		—		(596)		—		—		(596)		—		(596)		—
Amortization of share-based compensation	—	—		—	—		—		33,918		—		—		33,918		—		33,918		—
Balance, December 31, 2019	28,610,357	$	334	120,750	$	1	$	(284,301)	$	1,110,635	$	(5)	$	(16,809)	$	809,855	$	94,320	$	904,175	$	391,275

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

F-11

Cowen Inc. Consolidated Statements of Cash Flows (dollars in thousands)
	Year Ended December 31,
	2019		2018		2017
Cash flows from operating activities:
Net income (loss)	$	55,870	$	79,879	$	(37,091)
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Bargain purchase gain, net of tax	—		—		(6,914)
Depreciation and amortization	20,460		12,436		13,078
Goodwill impairment	4,100		—		—
Amortization of debt issuance costs	1,129		1,153		1,261
Amortization of debt discount	4,598		5,473		7,435
Noncash lease expense	(2,148)		—		—
Gain / (loss) on extinguishment of debt	—		652		10,551
Share-based compensation	33,918		37,018		28,443
Change in deferred taxes	13,295		15,486		45,856
Deferred rent obligations	—		(3,036)		(2,192)
Net loss (gain) on disposal of fixed assets	233		15,343		(2,346)
Purchases of securities owned, at fair value	(2,107,956)		(3,830,757)		(4,943,394)
Proceeds from sales of securities owned, at fair value	2,042,946		4,032,937		5,131,938
Proceeds from sales of securities sold, not yet purchased, at fair value	1,360,075		2,794,434		2,455,876
Payments to cover securities sold, not yet purchased, at fair value	(1,408,043)		(2,927,916)		(2,444,010)
Proceeds from other investments	23,886		10,157		—
Net (gains) losses on securities, derivatives and other investments	(74,284)		(54,032)		(78,303)
Consolidated Funds
Purchases of securities owned, at fair value	(2,725,439)		(887,728)		(385,544)
Proceeds from sales of securities owned, at fair value	2,618,200		835,002		338,268
Proceeds from sales of securities sold, not yet purchased, at fair value	—		—		217
Payments to cover securities sold, not yet purchased, at fair value	—		—		(899)
Purchases of other investments	(3,408)		(2,835)		(26,206)
Proceeds from other investments	23,954		231,559		64,867
Net realized and unrealized (gains) losses on investments and other transactions	(90,900)		(52,807)		(28,267)
(Increase) decrease in operating assets:
Cash acquired through acquisition	—		—		159,587
Securities owned, at fair value, held at broker-dealer	(990,356)		(57,732)		(102,137)
Receivable on derivative contracts, at fair value	(37,522)		44,053		(46,277)
Securities borrowed	(346,646)		35,353		(184,827)
Deposits with clearing organizations, brokers and banks	(2,332)		4,573		(32,460)
Receivable from brokers, dealers and clearing organizations	104,418		(277,935)		(366,297)
Receivable from customers, net of allowance	(67,789)		12,033		(6,422)
Fees receivable, net of allowance	(7,143)		(6,401)		(29,669)
Due from related parties	7,120		1,405		4,815
Other assets	(6,501)		6,017		(33,454)
Consolidated Funds
Cash and cash equivalents	7,299		(19,501)		(4,227)
Receivable on derivative contracts, at fair value	(1,417)		(1,896)		(1,627)
Receivable from brokers	(17,636)		(2,684)		334
Other assets	(159)		(538)		123
Increase (decrease) in operating liabilities:
Securities sold, not yet purchased, at fair value, held at broker-dealer	277,119		26,232		19,226
Securities sold under agreement to repurchase	23,244		—		—
Payable for derivative contracts, at fair value	44,679		2,305		(1,399)
Securities loaned	1,187,014		(41,979)		170,472
Payable to brokers, dealers and clearing organizations	42,287		(23,422)		(32,440)
Payable to customers	(94,929)		172,686		340,666
Commission management payable	(23,650)		24,819		(15,857)
Compensation payable	(38,954)		64,456		9,150
Fees payable	(1,025)		14,518		(639)
Due to related parties	(5,320)		1		(3)

F-12

Cowen Inc. Consolidated Statements of Cash Flows (dollars in thousands)
	Year Ended December 31,
	2019		2018		2017
(continued)
Accounts payable, accrued expenses and other liabilities	(3,148)		17,723		13,046
Consolidated Funds
Contributions received in advance	50		—		(2,000)
Payable to brokers	(22,657)		22,770		(2,949)
Payable for derivative contracts, at fair value	3,106		(5,467)		6,558
Due to related parties	581		—		(189)
Accounts payable, accrued expenses and other liabilities	(129)		369		(330)
Net cash provided by / (used in) operating activities	(179,910)		324,176		3,398
Cash flows from investing activities:
Purchases of other investments	(19,812)		(28,092)		(10,419)
Purchase of business (See Note 3)	(48,581)		—		(55,049)
Proceeds from sales of other investments	35,648		18,782		71,749
Loans issued	—		—		(13,745)
Proceeds from loans held for investment	—		14		3,203
Purchase of fixed assets and intangibles	(14,882)		(8,586)		(5,986)
Sale of fixed assets	—		—		7,850
Net cash provided by / (used in) investing activities	(47,627)		(17,882)		(2,397)
Cash flows from financing activities:
Proceeds from issuance of convertible debt	—		—		135,000
Repayments on convertible debt	(20,860)		(13,500)		(115,140)
Deferred debt issuance cost	(2,077)		(3,985)		(7,176)
Borrowings on notes and other debt	87,365		102,382		171,148
Repayments on notes and other debt	(10,263)		(16,601)		(72,757)
Purchase of treasury stock	(15,217)		(31,762)		(19,662)
Contingent liability payment	(1,234)		(797)		(393)
Capital contributions by non-controlling interests in operating entities	11,110		941		—
Capital withdrawals to non-controlling interests in operating entities	(3,785)		(2,774)		(5,178)
Consolidated Funds
Capital contributions by non-controlling interests in Consolidated Funds	267,049		114,064		117,812
Capital withdrawals to non-controlling interests in Consolidated Funds	(111,650)		(276,357)		(65,803)
Net cash provided by / (used in) financing activities	200,438		(128,389)		137,851
Change in cash and cash equivalents	(27,099)		177,905		138,852
Cash and cash equivalents, including cash collateral pledged and segregated cash, beginning of period	442,113		264,208		125,356
Cash and equivalents at end of period:
Cash and cash equivalents	301,123		259,148		130,052
Cash collateral pledged	6,563		6,318		17,888
Segregated cash	107,328		176,647		116,268
Cash and cash equivalents, including cash collateral pledged and segregated cash, end of period	$	415,014	$	442,113	$	264,208
Supplemental information
Cash paid during the year for interest	$	145,877	$	90,843	$	26,632
Cash paid during the year for taxes	$	4,310	$	3,881	$	2,172
Supplemental non-cash information
Purchase of treasury stock, at cost, through net settlement (See Note 24)	$	15,217	$	12,310	$	11,889
Preferred stock dividends declared (See Note 19)	$	6,792	$	6,792	$	6,792
Net assets (liabilities) acquired upon acquisition (net of cash)	$	90,727	$	—	$	77,790
Transfer of investment from consolidated funds, securities owned, fair value to securities owned, fair value	$	—	$	8,820	$	—
Initial recognition of operating lease right-of-use assets	$	103,694	$	—	$	—
Initial recognition of operating lease liabilities	$	110,505	$	—	$	—
Noncash transfer of net assets from Unconsolidated Master Fund to Consolidated Fund	$	97,655	$	—	$	—
Net decrease in non-controlling interests in Consolidated Funds due to deconsolidation of consolidated fund (See Note 2)	$	—	$	32,559	$	—
Separately recognized conversion option reclassification from a derivative liability to equity (See Note 24)	$	—	$	28,974	$	—
Common stock issuance upon close of acquisition (See Note 3)	$	14,446	$	—	$	47,607

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

F-13

Cowen Inc.

Notes to 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 and 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 investment banking, research, sales and trading, prime brokerage, global execution, clearing and commission management services to companies and primarily institutional investor clients. Sectors covered by Op Co's investment banking business include healthcare, technology, media and telecommunications, consumer, industrials, information and technology 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 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.

Change in Segments

The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable segments. Because of the change in the Chief Operating Decision Maker ("CODM") of the Company at the end of 2017, the Company experienced a strategic shift to refocus the Company's businesses on a set of differentiated products which are aligned to the content and insight within the Company's domain of expertise.

During the second quarter of 2019, the Company realigned the business and reportable segment information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including evaluation and allocation of resources.  As a result, the Company changed its segment reporting structure based on the Company's domain expertise as a driver of balance sheet harmonization and repeatable revenues for its operating business versus the Company's long-term monetization strategies.

As a result of the change in segments during the second quarter of 2019, the Company has the following business segments:

•The Op Co segment consists of four divisions: Investment Banking, Markets, Research and Cowen Investment Management. Each of Op Co's four divisions leverage the Research division’s core domain expertise to drive harmonized repeatable revenue for the segment.

◦The Investment Banking division includes public and private capital raising transactions and providing strategic advisory services.

◦The Markets division includes trading equity, equity-linked and fixed income securities on behalf of institutional investors as well as a full-service suite of prime brokerage services, cross-asset trading, securities finance, global execution, clearing and commission management businesses.

◦The Research division provides thought leadership and domain expertise. The research content that is created helps to facilitate brokerage revenue in the Markets division, provides research coverage for clients of the Investment Banking division and facilitate investor relationships and investing within CIM's innovative investment products and solutions.

◦The CIM division offers innovative investment products and solutions across the liquidity spectrum to institutional and private clients. CIM offers investors access to a number of strategies to meet their specific needs including merger arbitrage, activism, healthcare royalties, private healthcare investing and private sustainable investing many of which leverage the content and domain expertise that are aligned with the Company's core areas of expertise, which the Company refers to as Cowen DNA.

•The Asset Co segment consists of certain of the Company's private investments, private real estate investments and other legacy investment strategies.

F-14

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

2. Significant Accounting Policies

a. Basis of presentation

These 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 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 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 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 Company serves as the managing member/general partner and/or investment manager to investment funds which it sponsors and manages. Investment funds in which the Company has a controlling financial interest are consolidated with the Company. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these investment funds on a gross basis. The ownership interests in these investment funds that are not owned by the Company are reflected as redeemable or nonredeemable non-controlling interests, dependent on the non-controlling interest holder's redemption rights, in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these investment funds are eliminated in consolidation.

During 2019, the Company carried out an analysis to evaluate instances where non-controlling interest parties have the unilateral right to redeem their ownership interest for cash, which resulted in a change to the presentation of certain nonredeemable non-controlling interests into permanent equity. Accordingly, prior period amounts have been recast to be presented separately from redeemable non-controlling interests within the permanent equity section of the accompanying consolidated statements of financial condition. The change to the presentation of nonredeemable non-controlling interests has no impact on net income (loss) attributable to Cowen Inc. common stockholders, total assets or total liabilities.

With respect to the Company's private equity investment management strategies, 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 consolidated statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. Prior period amounts have been recast to reflect this accounting treatment.

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 consolidates five investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2019, the Company consolidated the following investment funds: Ramius Enterprise LP (“Enterprise LP”), Ramius Merger Fund LLC (the "Merger Fund"), Cowen Private Investments LP ("Cowen Private"), Ramius Merger Arbitrage UCITS Fund ("UCITS Fund"), and Cowen Sustainable Investments I LP ("CSI I LP") (each a "Consolidated Fund" and collectively the "Consolidated Funds").

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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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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. As of December 31, 2019, the total assets and total liabilities of the consolidated VIEs were $685.4 million and $24.9 million, respectively. As of December 31, 2018, the total assets and total liabilities of the consolidated VIEs were $468.0 million and $40.5 million, respectively. The increase is primarily related to other investors' subscriptions which increased overall VIEs net assets. The VIEs act as investment managers and/or investment companies that may be managed by the Company or the Company may have equity interest in those investment companies. The VIEs are financed through their operations and/or loan agreements with the Company.

At December 31, 2019, the Company held a variable interest in Ramius Merger Master Fund Ltd ("Merger Master") (the "Unconsolidated Master Fund") through the consolidated Merger Fund. At December 31, 2018, the Company held variable interests in Ramius Enterprise Master Fund Ltd ("Enterprise Master") and Merger Master (collectively the "Unconsolidated Master Funds") through two Consolidated Funds. 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. Therefore, the Company has not consolidated the Unconsolidated Master Funds.

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 does not consolidate the Unconsolidated Master Fund or real estate funds that are VIEs due to the Company's conclusion that it is not the primary beneficiary of these funds in each instance. Investment fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company has equity interests in the funds as both general partner and limited partner. In these instances the Company has concluded that the variable interests are not potentially significant to the VIE. Although the Company may advance amounts and pay certain expenses on behalf of the investment funds that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services (see Note 6 for additional disclosures on VIEs).

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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying 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 such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

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

c. Use of estimates

The preparation of the accompanying 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, disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, 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. Cash and cash equivalents

The Company considers investments in money market funds and other highly liquid investments with original maturities of three months or less which are deposited with a bank or prime broker to be cash equivalents. Cash and cash equivalents held at Consolidated Funds, although not legally restricted, are not available to fund the general liquidity needs of the Company. The Company may also be exposed to credit risk as a result of cash being held at several banks.

e. Allowance for credit losses

The allowance for credit losses is based on the Company's assessment of the collectability of receivables related to securities transactions, prepaid research and other receivables. The Company considers factors such as historical experience, credit quality, age of balances and current economic conditions that may affect collectability in determining the allowance for credit losses. Specifically, for prepaid research, the Company reviews clients' historical, current and forecasted trading activity in determining the allowance for credit losses. 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 consolidated statements of operations.

f. 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 1 Inputs 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 2 Inputs 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 3 Fair 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. However, the determination of what constitutes "observable" requires significant judgment by the Company. 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.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 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 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, have inputs which can generally be corroborated by market data and are therefore classified within level 2. OTC derivatives, such as swaps and options where market data is not readily available or observable are classified as level 3.

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

i. Portfolio funds—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 guidance permits an entity holding investments in certain entities that either are investment companies as defined by the American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide, Investment Companies, or have attributes similar to an investment company, and calculate net asset value 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.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

ii. Real estate investments—Real estate debt and equity investments are measured at fair value. The fair value of real estate investments is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Real estate investments without a public market are valued based on assumptions and valuation techniques used by the Company. Such valuation techniques may include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence, as well as independent external appraisals. In general, the Company considers several valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate. Real estate investments are reviewed on a quarterly basis by the Company for significant changes at the property level or a significant change in the overall market which would impact the value of the real estate investment resulting in unrealized appreciation or depreciation.

Real estate and capital markets are cyclical in nature. Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates. In addition, the Company invests in real estate and real estate-related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. Amounts ultimately realized by the Company from investments sold may differ from the fair values presented, and the differences could be material.

The Company's real estate investments are typically categorized as level 3 investments within the fair value hierarchy as management uses significant unobservable inputs in determining their estimated fair value.

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

iii. 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 of 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.

iv. 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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

g. Due from/due to related parties

The Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition.

h. 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.

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 account of brokers and dealers.

Pursuant to the master netting agreements the Company has entered into with its brokers, dealers and clearing organizations, receivables and payables arising from unsettled trade 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.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

i. Receivable from and payable to customers

Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settle-date basis on the statement of financial condition.

Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settle-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.

j. Fees receivable

Fees related to security transactions are reported net of an allowance for credit losses.  An allowance for credit losses is assessed on any commission receivables aged over 180 days. 

Corporate finance and syndicate receivables, include receivables relating to the Company's investment banking and advisory engagements net of allowance for credit losses. The Company records this allowance for credit losses on these receivables on a specific identification basis. The future collectability of the receivables is reviewed on a monthly basis based on the following factors: aging (usually if outstanding greater than 90 days), known financial stability of the paying company, as well as any other factors that might impact the collection of the outstanding fees.

Management and incentive fees 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 2v).

k. 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 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. The Company minimizes its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional or returning excess collateral in accordance with the netting provisions available in the master securities lending contracts in place with the counterparties.

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 consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition. At December 31, 2019 and 2018, the Company did not have any securities lending transactions for which fair value basis of accounting was elected.

l.  Securities sold under agreements to repurchase

        Securities sold under agreements to repurchase ("repos") are accounted for as collateralized financing transactions and are recorded at their contracted repurchase amount plus accrued interest. A repo is a transaction in which a firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from such buyer 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

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 sold in the transaction. The Company typically enters into repo transactions with counterparties that prefer repo transactions to securities loaned transactions. The Company has executed master repo agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repo for matched book purposes. The Company monitors the market value of repos on a daily basis, with additional collateral obtained or returned, as necessary. Repos 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 repo contracts in place with the counterparties.

        Interest paid is recorded in interest and dividends expense on an accrual basis in the accompanying consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. At December 31, 2019 and 2018, the Company did not have any repos for which fair value basis of accounting was elected.

m. Fixed assets

Fixed assets are stated at cost less accumulated depreciation or amortization. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or lease term. When the Company commits to a plan to abandon fixed assets or leasehold improvements before the end of its original useful life, the estimated depreciation or amortization period is revised to reflect the shortened useful life of the asset. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives.

Asset	Depreciable Lives	Depreciation and/or Amortization Method
Telecommunication and computer equipment	5 years	Straight-line
Computer software	4 years	Straight-line
Furniture and fixtures	5 years	Straight-line
Leasehold improvements	Term of Lease	Straight-line
Finance lease right-of-use asset	Term of Lease	Straight-line

n. 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 January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entities to calculate the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019 in conjunction with a quantitative goodwill test performed due to the Company's change in operating segments and restructuring of reporting units. See Note 12 for the impact of the goodwill impairment test.

In accordance with US GAAP requirements for testing for impairment of goodwill, inclusive of the newly adopted amendments, 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

F-21

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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. See Note 12 for further discussion.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. The Company does not have any intangible assets deemed to have indefinite 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 consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to 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.

o. Debt

Long-term debt is carried at the principal amount borrowed net of any unamortized discount/premium. The discount is accreted to interest expense using the effective interest method over the remaining life of the underlying debt obligations. Accrued but unpaid coupon interest is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition.

p. Legal reserves

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 reserve nor disclosure is required for losses that are deemed remote.

q. Capital withdrawals payable

Capital withdrawals from the Consolidated Funds are recognized as liabilities, net of any incentive income, when the amount requested in the withdrawal notice represents an unconditional obligation at a specified or determined date (or dates) or upon an event certain to occur. This generally may occur either at the time of the receipt of the notice, or on the last day of a reporting period, depending on the nature of the request. As a result, withdrawals paid after the end of the year, but based upon year-end capital balances are reflected as liabilities at the balance sheet date.

r. 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 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 temporary equity. The remaining non-controlling interests have been classified in permanent equity as the non-controlling interests are either not redeemable at the option of the holder or the holder does not have the unilateral right to redeem their ownership interests.

s. Treasury stock

In accordance with US GAAP relating to repurchases of an entity's own outstanding common stock, the Company records the purchases of stock held in treasury at cost and reports them separately as a deduction from total stockholders' equity on the accompanying consolidated statements of financial condition and changes in equity.

t. Comprehensive income (loss)

Comprehensive income (loss) consists of net income and other comprehensive income (loss). The Company's other comprehensive income (loss) is comprised of foreign currency cumulative translation adjustments.

u. Right-of-use assets and lease liabilities

Effective January 1, 2019, the Company adopted ASC Topic 842, Leases ("ASC 842"). The new guidance increases transparency and comparability by requiring the recognition of right-of-use assets and lease liabilities on the consolidated

F-22

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

statements of financial condition. The recognition of these lease assets and lease liabilities represents a change from previous US GAAP requirements, which did not require lease assets and lease liabilities to be recognized for most leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee, have not significantly changed from previous US GAAP requirements.

Under the effective date transition method selected by the Company, leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior reported financial statements, including footnotes, have not been recast to the reflect the impact of ASC 842 to all comparative periods presented. In applying ASC 842, the Company made an accounting policy election not to recognize the right-of-use assets and lease liabilities relating to short-term leases. Implementation of ASC 842 included an analysis of contracts, including real estate leases and service contracts to identify embedded leases, to determine the initial recognition of right-of-use assets and lease liabilities, which required subjective assessment over the determination of the associated discount rates. ASC 842 also provided various practical expedients which were assessed to determine the ultimate impact of ASC 842 upon adoption. The standard includes a package of three practical expedients which permit the Company to not reassess (1) whether any expired or existing contracts are or contain a lease, (2) the lease classification for any expired or existing leases and (3) any initial direct costs for any existing leases as of the effective date. The Company has elected to apply the package of practical expedients, as well as the hindsight practical expedient, and land easement practical expedient.

The adoption of ASC 842 resulted in the recording of operating lease right-of-use assets of $103.7 million and operating lease liabilities of $110.5 million at January 1, 2019.

The Company determines if an arrangement is or contains a lease at inception. The Company's operating lease arrangements are primarily for real estate and facility leases as well as office equipment. The Company has applied an accounting policy election to combine its lease and nonlease components for its real estate and facility leases. Right-of-use assets represent the Company's right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company's variable lease payments consist of nonlease services related to the lease. Variable lease payments are excluded from the right-of-use asset and lease liabilities to the extent they are not based on a consumer priced index or a market index and are recognized in the period in which the obligation for those payments is incurred. As most of the Company's leases do not provide an implicit rate and the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Right-of-use assets also include any lease payments made and exclude lease incentives. Many of the Company's operating lease agreements include options to extend the lease, which the Company does not include in the determination of the minimum lease term unless the options are reasonably certain to be exercised. Expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term.

The Company reconciles the operating lease expense with operating lease payments by presenting the amortization of the operating Right-of-use asset and change in the operating lease liability in a single line item within the adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities in the accompanying Consolidated Statements of Cash Flows.

Please refer to Note 23 for information on the Company's finance leases (formerly capital leases).

v. 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: Op Co and Asset Co as more fully described below. Revenue from contracts with customers includes management fees, incentive income, investment banking

F-23

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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, separated by business segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 27.

Operating Company

The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606.

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 agency placement 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 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

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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. Commissions 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.

•Principal transactions. Principal transactions revenue includes 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.

•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 Company’s international 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.

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.

Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

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 or debt 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

F-25

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 0.5% 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 utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month.

•Cowen trading strategies. Advisory fees for the Company's collateral management advisory business are typically paid quarterly based on utilized invested capital or committed capital, generally subject to a minimum fee.

Incentive income

The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreements) with respect to certain of the Company's investment funds and managed accounts.  The incentive income is either allocated to the Company or is charged to the investment funds in accordance with their respective investment management or partnership agreements. 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. For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 20% of the distributions made to investors after return of their contributed capital and generally a preferred return. With respect to the Company's private equity investment management strategies, the Company grants its employees that act as portfolio managers for its private equity fund products membership into the respective general partner entities that are the general partner of the funds they manage. These awards entitle the employees to share in future distributions of carried interest earned by the general partners. These arrangements are accounted for as profit sharing awards and accordingly amounts are reflected in compensation payable in the accompanying consolidated financial statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. 

In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income.  Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company’s ownership interests in the investment funds.

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 crystalized. For a majority of the 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."

Investment income

Investment income earned by the Op Co segment is earned from investing the Company's capital in various strategies which align to existing businesses within Op Co and from investments in private capital raising transactions of its investment banking clients.

Asset Company

The Asset Co segment generates revenue through three principal sources: management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606.

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 management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the

F-26

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company.

Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

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:

•Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month.

•Real estate. Management fees from the Company's real estate investments are generally charged at an annual rate from 0.25% to 1.50% of total capital commitments during the investment period and of invested capital or net asset value of the applicable real estate fund after the investment period has ended. Management fees are typically paid to the general partners on a quarterly basis, at the beginning of the quarter in arrears.

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 either allocated to the Company or 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.  For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 20% of the distributions made to investors after return of their contributed capital and generally a preferred return.

In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income.  Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company's ownership interests in the investment funds.

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 crystalized. 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 or carried interest is earned 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.

Several investment managers and/or general partners of the Company's investment funds are jointly owned by the Company and third parties. Accordingly, the incentive fees generated by these investment funds are split between the Company and these third parties.  Pursuant to US GAAP, incentive income received by the general partners that are accounted for under the equity method of accounting are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.   

Investment Income

Investment income earned by the Asset Co segment is earned from investing the Company's capital in various strategies.

F-27

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Revenue from contracts with customers

For the years ended December 31, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Year Ended December 31,
		2019		2018
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	211,666	$	215,723
Strategic/financial advisory fees		79,208		81,733
Placement and sales agent fees		69,070		46,888
Expense reimbursements from clients		15,081		12,878
	Total investment banking revenue	375,025		357,222
Brokerage
Commissions		356,668		366,090
Trade conversion revenue		12,531		17,061
Equity research fees		19,006		20,184
	Total brokerage revenue from customers	388,205		403,335
Management fees		31,361		26,080
Incentive income		1,532		3,117
Total revenue from contracts with customers - Op Co		$	796,123	$	789,754
		Asset Company
Management fees		1,248		3,578
Incentive income		15		—
Total revenue from contracts with customers - Asset Co		1,263		3,578
Total revenue from contracts with customers		$	797,386	$	793,332

Investments transactions and related income/expenses

Purchases and sales of securities, net of commissions, and 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 net gains (losses) on securities, derivatives and other investments, and with respect to the Consolidated Funds and other real estate entities as a component of net realized and unrealized gains (losses) on investments and other transactions and net realized and unrealized gains (losses) on derivatives, respectively, in the accompanying consolidated statements of operations.

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.

Reimbursement from affiliates

The Company allocates, at its discretion, certain expenses incurred on behalf of its investment management businesses. These expenses relate to the administration of such subsidiaries and assets that the Company manages for its investment funds. In addition, pursuant to the investment funds' offering documents, the Company charges certain allowable expenses to the investment funds, including charges and personnel costs for legal, compliance, accounting, tax compliance, risk and technology expenses that directly relate to administering the assets of the investment funds. Such expenses that have been reimbursed at their actual costs are included in the accompanying consolidated statements of operations as employee compensation and benefits, professional, advisory and other fees, communications, occupancy and equipment, client services and business development and other expenses.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Reinsurance-related contracts

        Premiums for reinsurance-related 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 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 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 consolidated statements of financial condition.

Impacts of adopting ASC Topic 606

The following tables summarize the impacts of adopting ASC Topic 606 on the Company’s consolidated financial statements.

Consolidated Statements of Financial Condition	As of December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Assets
Fees receivable, net of allowance	$	111,946	$	17,995	$	129,941
Other investments	181,407		(17,995)		163,412
Stockholder's equity	$	794,407	$	1,002	$	795,409

Consolidated Statements of Operation	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Revenues
Investment banking	$	357,222	$	(28,160)	$	329,062
Incentive income	3,117		15,911		19,028
Total revenues	966,916		(12,249)		954,667
Expenses
Underwriting expenses	15,282		(15,282)		—
Professional, advisory and other fees	40,957		(7,861)		33,096
Service fees	20,198		(42)		20,156
Communications	30,801		(1,449)		29,352
Occupancy and equipment	41,602		(14)		41,588
Client services and business development	35,927		(3,373)		32,554
Other expenses	22,014		(139)		21,875
Total expenses	890,944		(28,160)		862,784
Net gains (losses) on securities, derivatives and other investments	68,043		15,469		83,512
Net income (loss) attributable to Cowen Inc. common stockholders	$	36,027	$	442	$	36,469

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Consolidated Statements of Cash Flows	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Cash flows from operating activities:
Net income (loss)	$	79,879	$	442	$	80,321
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Net (gains) losses on securities, derivatives, and other investments	(54,032)		12,331		(41,701)
(Increase) decrease in operating assets:
Fees receivable, net of allowance	(6,401)		(11,962)		(18,363)
Net cash provided by / (used in) operating activities	324,176		811		324,987
Cash flows from investing activities:
Purchase of other investments	(28,092)		(812)		(28,904)
Net cash provided by / (used in) investing activities	$	(17,882)	$	(812)	$	(18,694)

(a) The amounts reflected above represent items as they would have been reported prior to adoption of ASC 606.

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.

w. Share-based compensation

The Company accounts for its share-based awards granted to individuals as payment for employee services and values such awards based on grant date fair value. Unearned compensation associated with share-based awards is amortized over the vesting period of the option or award. The Company estimates forfeiture for equity-based awards that are not expected to vest. See Note 19 for further information regarding the Company's share-based compensation plans.

x. 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 our deferred tax assets for recoverability considering negative and positive evidence, including our 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 our deferred tax assets to bring them to a level that it is more likely than not to be utilized. In evaluating the need for a valuation allowance, the Company estimates future taxable income based on management-approved business plans. This process involves significant management judgment about assumptions that are subject to change from period to period. Because the recognition of deferred tax assets requires management to make significant judgments about future earnings, the periods in which items will impact taxable income and the application of inherently complex tax laws, we have identified the assessment of deferred tax assets and the need for any related valuation allowance as a critical accounting estimate.

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 resident in foreign countries where tax filings have to be submitted on a stand-alone or combined 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 in the consolidated statement of operations. The countries where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Germany, Switzerland, South Africa, Canada and Hong Kong.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

y. Foreign currency transactions

The Company consolidates certain foreign subsidiaries that have designated a foreign currency as their functional currency. For entities that have designated a foreign currency as their functional currency, assets and liabilities are translated into U.S. dollars based on current rates, which are the spot rates prevailing at the end of each statement of financial condition date, and revenues and expenses are translated at historical rates, which are the average rates for the relevant periods. The resulting translation gains and losses, and the tax effects of such gains and losses, are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity.

For subsidiaries that have designated the U.S. Dollar as their functional currency, securities and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollar amounts at the date of valuation. Purchases and sales of securities and other assets and liabilities and the related income and expenses denominated in foreign currencies are translated into U.S. Dollar amounts on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on these balances from fluctuations arising from changes in market prices of securities and other assets/liabilities held or sold. Such fluctuations are included in the accompanying consolidated statements of operations as a component of net gains (losses) on securities, derivatives and other investments. Gains and losses primarily relating to foreign currency broker balances are included in other income (loss) in the accompanying consolidated statements of operations.

z. Recent pronouncements

Recently adopted

In 2018, the FASB issued guidance related to the Tax Cuts and Jobs Act of 2017 ("TCJ Act") for the optional reclassification of the residual tax effects, arising from the change in corporate tax rate, in accumulated other comprehensive loss to retained earnings. The reclassification is the difference between the amount previously recorded in other comprehensive income at the historical U.S. federal tax rate that remains in accumulated other comprehensive loss at the time the TCJ Act was effective and the amount that would have been recorded using the newly enacted rate. This guidance became effective during the first quarter of 2019; however, the Company did not elect to make the optional reclassification.

In 2018, the FASB issued final guidance aligning the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which may lower their cost and reduce volatility in the income statement. The guidance became effective during the first quarter of 2019 and impacted the Company's recognition and measurement of the retention bonus pool established in connection with the Company's acquisition of Quarton International AG, which includes share-based payment to employees and nonemployees. Please refer to Note 3 for more information.

In 2018, as part of its disclosure framework project, the FASB amended the disclosure requirements for fair value measurement. The amendments update and eliminate various disclosure requirements that improve the overall usefulness of the disclosure requirement for financial statement users and reduce costs by eliminating disclosures that may not be useful. The new guidance eliminates the requirement to disclose the amounts and reasons for transfers between level 1 and level 2 of the fair value hierarchy and modifies the disclosure requirement relating to investments in funds at NAV. The Company early adopted this guidance in 2019 and it did not have a material impact on the Company's consolidated financial statements.

In 2017, the FASB issued guidance to amend the amortization period for certain purchased callable debt securities held at a premium. Under prior guidance, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. The new guidance shortened the amortization period for the premium to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This guidance became effective during the first quarter of 2019; however, the guidance did not have an impact on the Company's financials as it does not have investments in callable debt securities measured on an amortized cost basis.

In 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entitites to compute the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019. Please refer to Note 2v for more information.

F-31

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

In 2016, the FASB issued guidance that amends and supersedes its previous guidance regarding leases. The new guidance requires the lessee to recognize the right to use lease assets and lease liabilities that arise from leases greater than one year, and present them in its statement of financial condition. The guidance became effective during the first quarter of 2019. Please refer to Note 22 for more information.

Recently issued

        In October 2018, the FASB issued guidance that made targeted changes to the related party consolidation guidance.  The new guidance changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity will consider indirect interests held through related parties under common control on a proportionate basis under the new guidance, rather than in their entirety, as has been the case under current guidance. The guidance is effective in annual periods beginning after December 15, 2019 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance and does not expect this guidance to have a material impact on its consolidated statements of financial condition or its consolidated statements of operations.

In August 2018, the FASB issued guidance for accounting for upfront costs and fees paid by a customer in a cloud computing arrangement. The guidance requires capitalization of implementation costs incurred in connection with a hosting arrangement or the development or obtainment of internal use software. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years for any implementation costs incurred after adoption. The Company is currently evaluating the impact of this guidance on the Company's consolidated financial statements and does not expect this guidance to have a material impact on its consolidated statements of financial condition or its consolidated statements of operations.

In June 2016, the FASB issued guidance that impacts 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. The Company has performed a scoping assessment and identified securities borrowed and other financial instruments carried at amortized cost as impacted. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances, e.g., based on collateral arrangements for lending and financing transactions or based on the credit quality of the borrower or issuer. For securities borrowed, the Company will apply 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 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 CECL model will be applied only to the shortfall between the fair value of the collateral and amortized cost. For public companies, the guidance is effective for reporting periods beginning after December 15, 2019 and interim periods within those fiscal years.  Based on the Company's scoping analysis and impact assessment, the Company does not expect the increase in the allowance for credit losses, resulting from the adoption of this standard, to be significant to its consolidated statements of financial condition or its consolidated statements of operations.

In December 2019, the FASB issued guidance simplifying the accounting for income taxes. The guidance simplifies the accounting for income taxes by removing the exceptions (i) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income), (ii) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (iii) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and (iv) general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally the guidance requires that an entity (a) recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (b) evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction and (c) reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date as well as specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. The guidance also makes minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of this guidance on the Company's consolidated financial statements.

F-32

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

3. Acquisition

Quarton

On January 2, 2019 (the "Acquisition Date"), the Company, together with its indirect wholly owned subsidiaries, Cowen International Ltd and Cowen QN Acquisition LLC, completed its previously announced acquisition (the "Acquisition") of Quarton International AG through the acquisition of all of the outstanding equity interest of Quarton International AG's affiliated combining companies, Quarton Management AG, Quarton International Europe AG, Quarton Partners, LLC and Quarton Securities GP, LLC (which owns a formerly U.S. Securities Exchange Commission ("SEC") registered broker-dealer that was subsequently renamed to Cowen Securities L.P. ("Cowen Securities") (see Note 28), comprising the U.S. and European operations of the acquired combining companies (collectively "Quarton"). Quarton is a group of leading global financial advisory companies serving the middle market. Quarton's operations were primarily conducted through eight entities based in the United States, Switzerland, and Germany.

The Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, results of operations for Quarton are included in the accompanying consolidated statements of operations since the Acquisition Date, and the assets acquired and liabilities assumed were recorded at their fair value as of the Acquisition Date. Subsequent to the Acquisition, the operations of Quarton were integrated within the Company's existing businesses.

The aggregate estimated purchase price of the Acquisition was $103.0 million. On the Acquisition Date the Company paid upfront consideration of $75.3 million subject to certain net working capital and other customary adjustments, with additional maximum contingent consideration of $40.0 million that will become payable dependent on the achievement of certain milestones by Quarton in each of the first four years (five years if certain conditions are met) following the Acquisition Date subject to a $10 million maximum in each year and a $40.0 million cumulative maximum. The Company estimated the contingent consideration at $27.7 million using the Monte Carlo valuation model which requires the Company to make estimates and assumptions regarding the future cash flows and profits. The contingent consideration liability is included within accounts payable, accrued expenses and other liabilities on the consolidated statements of financial condition. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. A portion of the preliminary purchase price was deposited into escrow, in the amount of $0.6 million, as a reserve for any future claims against the sellers of Quarton.  All consideration, including the upfront consideration and contingent consideration, consists of a combination of 80% cash and 20% shares of the Company's Class A common stock. Shares issued on the Acquisition Date of 1,033,350 were valued based on the 30-trading day volume-weighted average price per share of $14.52 as of December 31, 2018. The fair value of the shares of Class A common stock issued was determined on the basis of the closing market price of the Company's shares on the Acquisition Date. Any shares of Class A common stock issued in connection with any such contingent payments will be valued based on the 30-trading day volume-weighted average price per share as of the day immediately prior to the date on which such shares are to be issued. In addition, Quarton and the Company have established a retention bonus pool, for Quarton employees that remain employed at the end of each year there is a contingent payment which will be settled in a combination of 80% cash and 20% shares of the Company's Class A common stock based on Quarton meeting certain economic performance hurdles. The bonus pool has an aggregate maximum of $10.0 million over a five-year period with $2.5 million maximum in each year. The Company is recognizing the retention bonus over each contingent payment period based upon the Company's revenue projections for Quarton.

The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of January 2, 2019:

	(dollars in thousands)
Cash and cash equivalents	$	12,236
Fees receivable	7,269
Fixed assets	1,085
Operating lease right-of-use assets	3,200
Intangible assets	22,200
Other assets	667
Compensation payable	(637)
Operating lease liabilities	(3,200)
Due to related parties	(4,750)
Accounts payable, accrued expenses and other liabilities	(16,257)
Total identifiable net assets acquired and liabilities assumed	21,813
Goodwill	81,150
Total estimated purchase price	$	102,963

F-33

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

As of the Acquisition Date, the estimated fair value of the Company's intangible assets, as acquired through the Acquisition, was $22.2 million. The allocation of the intangible assets is shown within the following table:

	Estimated intangible assets acquired		Estimated average remaining useful lives
	(dollars in thousands)		(in years)
Intangible asset class
Trade name	$	900	3
Customer relationships	7,100		4
Backlog	12,600		2
Proprietary software	1,600		3
Total intangible assets	$	22,200

Amortization expense for the year ended December 31, 2019 was $8.9 million, and is included in depreciation and amortization in the accompanying consolidated statements of operations. The estimated amortization expense related to these intangible assets in future periods is as follows:

	(dollars in thousands)
2020	$	8,908
2021	2,608
2022	1,775
2023	—
2024	—
Thereafter	—
	$	13,291

In addition to the purchase price consideration, for the year ended December 31, 2019, the Company has incurred acquisition-related expenses of $1.2 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying consolidated statements of operations.

Included in the accompanying consolidated statements of operations for the year ended December 31, 2019 is revenue of $34.8 million and net income of $5.7 million related to the results of operations of Quarton.

Subsequent to the Acquisition, Quarton's businesses were integrated within the Op Co segment and therefore are included within their respective line items in the accompanying consolidated statements of operations. The following table provides supplemental pro forma financial information for the year ended December 31, 2018, as if the acquisition were completed as of January 1, 2018. This unaudited supplemental pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's financial results would have been had the acquisition been completed on January 1, 2018, nor does it purport to be indicative of any future results.

	Year Ended December 31, 2018
	(dollars in thousands, except per share data)
Net revenues	$	922,001
Net income (loss) attributable to Cowen Inc. common stockholders	35,616
Net income (loss) per common share:
Basic	$	1.20
Diluted	1.15

4. Cash Collateral Pledged 

As of December 31, 2019 and 2018, the Company pledged cash collateral in the amount of $4.6 million and $5.3 million, respectively, which relates to letters of credit issued to the landlords of the Company's premises in New York City, Boston, Stamford and San Francisco. The Company also has pledged collateral for reinsurance agreements which amounted to $2.0 million, as of December 31, 2019, and $1.0 million, as of December 31, 2018, which are released annually between March 2020 and March 2023 based on the policy periods covered by the reinsurance agreements (see Note 23).

F-34

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

5. Segregated Cash

As of December 31, 2019 and 2018, cash segregated in compliance with federal regulations and other restricted deposits of $107.3 million and $176.6 million, respectively, consisted of cash deposited in Special Reserve Accounts for the exclusive benefit of customers under SEC Rule 15c3-3 and cash held in accounts designated as Special Reserve Bank Accounts for Proprietary Accounts of Broker-Dealers ("PAB").

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 December 31, 2019 and 2018, securities owned, at fair value consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Common stock (*)	$	1,546,484	$	472,299
Preferred stock (*)	12,656		5,617
Warrants and rights (*)	22,109		7,990
Government bonds (a)	15,916		13,398
Corporate bonds (c)	25,500		13,041
Convertible bonds (b) (*)	2,500		3,000
Term loan (*)	1,067		—
Trade claims (*)	7,320		5,543
	$	1,633,552	$	520,888

(a)As of December 31, 2019, maturities ranged from January 2020 to June 2020 with an interest rate of 0%. As of December 31, 2018, maturities ranged from April 2019 to August 2019 with an interest rate of 0%.

(b)As of December 31, 2019, maturities ranged from April 2020 to March 2022 with an interest rate of 8%. As of December 31, 2018, the maturity was June 2020 with an interest rate of 8%.

(c)As of December 31, 2019, maturities ranged from January 2020 to May 2037 and interest rates ranged from 0% to 15%. As of December 31, 2018, maturities ranged from April 2019 to April 2049 and interest rates ranged from 2% to 15.5%.

* The Company has elected the fair value option for securities owned, at fair value with a fair value of $14.9 million and $9.4 million, respectively, at December 31, 2019 and 2018.

Receivable on and Payable for derivative contracts, at fair value

The Company's direct involvement with derivative financial instruments includes total return swaps, futures, currency forwards, equity swaps, credit default 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:

F-35

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Receivable on derivative contracts	As of December 31,
	2019				2018
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	—	$	—	$	42,288	$	334
Currency forwards	$	—	—		$	395	1
Swaps	$	383,752	2,911		$	13,702	917
Options other (a)	550,188		60,066		654,506		23,130
Pay to hold	$	—	—		$	—	743
			$	62,977			$	25,125

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

Payable for derivative contracts	As of December 31,
	2019				2018
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	10,224	$	217	$	—	$	—
Currency forwards	$	77,790	851		$	96,406	709
Swaps	$	607,717	23,169		$	52,905	2,162
Options other (a)	306,306		36,524		90,730		13,211
			$	60,761			$	16,082

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

The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2019 and 2018. This table does not include the impact of over-collateralization.

							Gross amounts not offset in the Consolidated Statements of Financial Condition
	Gross amounts recognized		Gross amounts offset on the Consolidated Statements of Financial Condition (a)		Net amounts included on the Consolidated Statements of Financial Condition		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of December 31, 2019
Receivable on derivative contracts, at fair value	$	66,217	$	3,240	$	62,977	$	—	$	2,911	$	60,066
Payable for derivative contracts, at fair value	64,001		3,240		60,761		—		24,020		36,741
As of December 31, 2018
Receivable on derivative contracts, at fair value	$	25,125	$	—	$	25,125	$	—	$	1,662	$	23,463
Payable for derivative contracts, at fair value	16,082		—		16,082		—		2,871		13,211

(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 collateral held or posted.

The realized and unrealized gains/(losses) related to derivatives trading activities were $(13.0) million, $14.3 million, and $3.9 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in other income in the accompanying consolidated statements of operations.

Pursuant to the various derivatives transactions discussed above, except for exchange traded derivatives and certain options, the Company is required to post/receive collateral. As of December 31, 2019 and 2018, collateral consisting of $10.5 million and $11.2 million of cash is included in receivable from brokers, dealers and clearing organizations of $681.7 million

F-36

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

and $786.1 million, respectively, and payable to brokers, dealers and clearing organizations, of $271.0 million and $228.7 million, respectively, on the accompanying consolidated statements of financial condition. As of December 31, 2019 and 2018, all derivative contracts were with major financial institutions.

Other investments

As of December 31, 2019 and 2018, other investments included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Portfolio funds, at fair value (1)	$	114,504	$	124,741
Carried interest (2)	30,360		17,995
Equity method investments (3)	40,858		38,671
	$	185,722	$	181,407

(1) Portfolio Funds, at fair value

The Portfolio Funds, at fair value as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Starboard Value and Opportunity Fund LP (c)(*)	$	37,895	$	32,579
Formation8 Partners Fund I, L.P. (f)	33,613		34,099
RCG Longview Debt Fund V, L.P. (g)(*)	1,732		4,394
RCG Longview II LP (g) (*)	110		4,400
Cowen Healthcare Investments II LP (i) (*)	14,652		14,939
Eclipse Ventures Fund I, L.P. (b)	3,960		4,412
HealthCare Royalty Partners LP (a)(*)	1,326		1,833
Lagunita Biosciences, LLC (d)	4,802		3,833
Starboard Leaders Fund LP (e)(*)	1,560		1,230
Eclipse SPV I, LP (j)(*)	1,447		1,447
Triartisan ES Partners LLC (k)(*)	1,082		1,500
Triartisan PFC Partners LLC (l)(*)	909		—
RCG Longview Equity Fund, LP (g) (*)	835		802
RCG Longview Debt Fund VI, LP (g) (*)	—		1,586
RCG Park Liberty GP Member LLC (g) (*)	—		1,023
HealthCare Royalty Partners II LP (a)(*)	1,781		1,037
RCGL PE MPA, LLC (g)(*)	—		618
RCG LPP2 PNW5 Co-Invest, L.P. (h)(*)	—		296
Cowen Healthcare Investments III LP	1,398		—
Difesa Partners, LP (o) (*)	508		—
Other private investment (m)(*)	4,448		11,625
Other affiliated funds (n)(*)	2,446		3,088
	$	114,504	$	124,741

* 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)Eclipse Ventures Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated.

F-37

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

(c)Starboard Value and Opportunity Fund LP 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)RCG Longview Debt Fund V, L.P., RCG Longview II LP, RCG Park Liberty GP Member LLC, RCG Longview Equity Fund, LP, RCGL PE MPA, LLC and RCG Longview Debt Fund VI, LP are real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated.

(h)RCG LPP2 PNW5 Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired five multi-unit residential rental properties located in the Pacific Northwest. RCG LPP2 PNW5 Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

(i)Cowen Healthcare Investments II LP is a private equity fund.  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)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.

(n)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.

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

(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 consolidated statements of financial condition (see Note 2v). 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.

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 are recorded within compensation payable in the accompanying consolidated statements of financial condition. 

F-38

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

The carried interest as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Cowen Healthcare Investments II LP (*)	$	23,759	$	6,778
Other private investment (a) (*)	4,737		4,273
RCG IO Renergys Sarl	1,251		6,369
Ramius Multi-Strategy Fund LP (*)	613		575
	$	30,360	$	17,995

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

* These carried interest balances are earned from affiliates of the Company.

(3)Equity method investments

Equity method investments include investments held by the Company in several operating companies whose operations primarily include the day to day management of a number of real estate funds, including the portfolio management and administrative services related to the acquisition, disposition, and active monitoring of the real estate funds' underlying debt and equity investments. The Company's ownership interests in these equity method investments range from 15% to 55%. The Company holds a majority of the outstanding ownership interest (i.e., more than 50%) in RCG Longview Partners II, LLC and 40% in Surf House Ocean Views Holdings, LLC (which is a joint venture in a real estate development project). 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. Also included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners and (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. During 2019, the Company completed the sale of its interests in RCG Longview Management, the management company for certain real estate investment funds in which the Company was invested, and various other real estate assets held by the Company for which an impairment charge was recognized at September 30, 2019.  The transactions resulted in the recognition of a $0.2 million loss for the year ended December 31, 2019.

During the third quarter of 2018, the Company completed an assessment of the recoverability of the Company's equity method investments and determined that the carrying value of the investment in Surf House Ocean View Holdings, LLC exceeded the estimated fair value of the Company's interest, which was other than temporary. Accordingly, an other than temporary impairment charge of $7.1 million was recognized to reduce the carrying value of the investment to fair value at December 31, 2018 and an additional other than temporary impairment charge of $2.6 million was recognized during the fourth quarter of 2019.

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.

F-39

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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

	As of December 31,
	2019		2018
	(dollars in thousands)
Surf House Ocean Views Holdings, LLC	$	7,804	$	7,589
Starboard Value LP	24,292		12,699
RCG Longview Debt Fund V Partners, LLC	2,889		11,000
RCG Longview Management, LLC	583		1,167
RCG Longview Debt Fund VI Partners LLC	—		1,254
HealthCare Royalty GP, LLC	108		149
HealthCare Royalty GP II, LLC	302		176
RCG Longview Debt Fund IV Management, LLC	331		331
HealthCare Royalty GP III, LLC	2,230		1,573
RCG Kennedy House, LLC	—		131
RCG Longview Equity Management, LLC	105		114
RCG LPP II GP, LLC	—		272
RCG Park Liberty GP Member Manager, LLC	—		1,248
HCR Stafford Fund GP, LLC	880		—
Liberty Harbor North	292		—
Other	1,042		968
	$	40,858	$	38,671

The Company's income (loss) from equity method investments was $24.6 million, $6.4 million and $21.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in net gains (losses) on securities, derivatives and other investments on the accompanying consolidated statements of operations.

For financial reporting purposes, the general partners of a real estate fund had recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the real estate fund's remaining investments and where the real estate fund's general partner has previously received carried interest distributions. The clawback liability was not realized until the end of the real estate fund's life. The clawback obligations for the real estate fund were $6.5 million at December 31, 2018, which is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. The liability was fully repaid in December 2019 (see Note 22 to the Company's consolidated financial statements).

Regulation S-X Rule 4-08(g)

For the period ended December 31, 2019, certain investments subject to Regulation S-X Rule 4-08(g) held by the Company in aggregate have met the significance criteria as defined under SEC guidance. As such, the Company is required to present summarized financial information for these significant investees for the years ended December 31, 2019, 2018, and 2017, and such information is as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Assets	$	1,374,077	$	1,189,669
Liabilities	205,873		244,088
Equity	$	1,168,204	$	945,581

F-40

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Revenues	$	200,854	$	105,499	$	165,550
Expenses	(79,811)		(67,893)		(62,175)
Net realized and unrealized gains (losses)	221,616		95,855		133,695
Income (loss) before income taxes	342,659		133,461		237,070
Income tax expense	(2,234)		(51)		(99)
Net income	$	340,425	$	133,410	$	236,971

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 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 consolidated statements of financial condition. Substantially all equity securities and options are pledged to the clearing broker under terms which permit the clearing broker to sell or re-pledge the securities to others subject to certain limitations. As of December 31, 2019 and 2018, securities sold, not yet purchased, at fair value consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Common stock	$	425,448	$	194,305
Corporate bonds (a)	5,933		750
Government bonds (b)	1,950		—
Preferred stock	3,686		199
Warrants and rights	14,819		53
	$	451,836	$	195,307

(a)As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%. As of December 31, 2018, the maturities ranged from October 2022 to January 2034 and interest rates ranged from 2.25% to 9.38%.

(b)As of December 31, 2019, the maturities ranged from October 2024 to March 2038 and interest rates ranged from 7.00% to 8.25%.

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 December 31, 2019 and 2018.

F-41

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

							Gross amounts not offset on the Consolidated Statements of Financial Condition
	Gross amounts recognized		Gross amounts offset on the Consolidated Statements of Financial Condition (a)		Net amounts included on the Consolidated Statements of Financial Condition		Additional Amounts Available		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of December 31, 2019
Securities borrowed	$	754,441	$	—	$	754,441	$	—	$	751,913	$	—	$	2,528
Securities loaned	1,601,866		—		1,601,866		—		1,585,036		—		16,830
Securities sold under agreements to repurchase	23,244		—		23,244		—		27,384		—		(4,140)
As of December 31, 2018
Securities borrowed	$	407,795	$	—	$	407,795	$	—	$	383,593	$	—	$	24,202
Securities loaned	414,852		—		414,852		—		391,310		—		23,542

(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 December 31, 2019 and 2018:

	Open and Overnight		Up to 30 days		31 - 90 days		Greater than 90 days		Total
	(dollars in thousands)
As of December 31, 2019
Securities loaned
Common stock	$	1,343,478	$	—	$	—	$	—	$	1,343,478
Corporate bonds	258,388		—		—		—		258,388
Securities sold under agreements to repurchase	—		—		23,244		—		23,244
As of December 31, 2018
Securities loaned
Common stock	$	414,852	$	—	$	—	$	—	$	414,852

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 $6.1 billion and $617.5 million as of December 31, 2019 and $5.4 billion and $377.2 million as of December 31, 2018, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of December 31, 2019 was $241.2 million, and as of December 31, 2018 was $301.4 million, all of which is included in other investments, at fair value in the accompanying consolidated statements of financial condition. The exposure to loss primarily relates to the Consolidated Fund's investment in the Unconsolidated Master Fund and the Company's investment in unconsolidated investment companies. Additionally, the Company's maximum exposure to loss for the variable interest entities noted above as of December 31, 2019 and 2018, was $261.7 million and $332.4 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

Securities owned, at fair value

As of December 31, 2019 and 2018, securities owned, at fair value, held by the Consolidated Funds consisted of the following:

F-42

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	As of December 31,
	2019		2018
	(dollars in thousands)
Preferred stock	$	4,393	$	24,314
Common stock	200,306		95,565
Government bonds (a)	161,607		38,377
Corporate bonds (b)	3,405		24,098
Warrants and rights	5,567		5,279
	$	375,278	$	187,633

(a)As of December 31, 2019, maturities ranged from February 2020 to March 2020 and interest rates were 0%. As of December 31, 2018, maturities ranged from January 2019 to April 2019 and interest rates were 0%.

(b)As of December 31, 2019, the maturity was July 2023 with an interest rate of 7.50%. As of December 31, 2018, maturities ranged from August 2020 to March 2026 and interest rates ranged from 5.88% to 7.63%.

Receivable on derivative contracts

As of December 31, 2019 and 2018, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:

	As of December 31,
	2019		2018
	(dollars in thousands)
Currency forwards	$	3,302	$	186
Equity swaps	927		2,477
Options	1,604		1,753
	$	5,833	$	4,416

Payable for derivative contracts

As of December 31, 2019 and 2018, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:

	As of December 31,
	2019		2018
	(dollars in thousands)
Currency forwards	$	88	$	96
Equity swaps	3,931		713
Options	750		854
	$	4,769	$	1,663

Other investments, at fair value

Investments in Portfolio Funds, at fair value

As of December 31, 2019 and 2018, investments in Portfolio Funds, at fair value, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Investments of Enterprise LP	$	99,153	$	97,656
Investments of Merger Fund	76,616		88,739
	$	175,769	$	186,395

Consolidated portfolio fund investments of Enterprise LP 

On May 12, 2010, the Company announced its intention to close 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 December 31, 2019, 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

F-43

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

directly as well as through affiliated portfolio funds. As of December 31, 2018, the consolidated investments in Portfolio Funds included Enterprise LP's investment of $97.7 million in Enterprise Master. Prior to liquidation, strategies utilized by Enterprise Master included merger arbitrage and activist investing, investments in distressed securities, convertible hedging, capital structure arbitrage, equity market neutral, investments in private placements of convertible securities, proprietary mortgages, structured credit investments, investments in mortgage backed securities and other structured finance products, investments in real estate and real property interests, structured private placements and other relative value strategies. Enterprise Master had broad investment powers and maximum flexibility in seeking to achieve its investment objective. Enterprise Master was permitted to invest in equity securities, debt instruments, options, futures, swaps, credit default swaps and other derivatives. There are no unfunded commitments at Enterprise LP.

Consolidated portfolio fund investments of Merger Fund 

The Merger Fund operates under a "master-feeder" structure, whereby Merger Master shareholders are Merger Fund and Ramius Merger Fund Ltd. The consolidated investments in Portfolio Funds include Merger Fund's investment of $76.6 million and $88.7 million in Merger Master as of December 31, 2019 and 2018, respectively. The Merger Master's investment objective is to achieve consistent absolute returns while emphasizing the preservation of investor capital. The Merger Master seeks to achieve these objectives by taking a fundamental, research-driven approach to investing, primarily in the securities of issuers engaged in, or subject to, announced (or unannounced but otherwise anticipated) extraordinary corporate transactions, which may include, but are not limited to, mergers, acquisitions, leveraged buyouts, tender offers, hostile takeover bids, sale processes, exchange offers, and recapitalizations. Merger Master invests in the securities of one or more issuers engaged in or subject to such extraordinary corporate transactions. Merger Master typically seeks to derive a profit by realizing the price differential, or "spread," between the market price of securities purchased or sold short and the market price or value of securities realized in connection with the completion or termination of the extraordinary corporate transaction, or in connection with the adjustment of market prices in anticipation thereof, while seeking to minimize the market risk associated with the aforementioned investment activities. Merger Master will, depending on market conditions, generally focus the majority of its investment program on announced transactions. If the investment manager of Merger Master considers it necessary, it may either alone or as part of a group, also initiate shareholder actions seeking to maximize value. Such shareholder actions may include, but are not limited to, re-orienting management's focus or initiating the sale of the company (or one or more of its divisions) to a third party. There are no unfunded commitments at Merger Fund.

Indirect Concentration of the Underlying Investments Held by Consolidated Funds

From time to time, either directly 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 December 31, 2019 and 2018, 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 December 31, 2019 and one at December 31, 2018.

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 December 31, 2019	Linkem	Equity	Italy	Wireless Broadband	8.94	%	$	72,404
As of December 31, 2018	Linkem	Equity	Italy	Wireless Broadband	8.36	%	$	66,439

Underlying Investments of Unconsolidated Funds Held by Consolidated Funds

Enterprise Master and Merger Master

At December 31, 2018, Enterprise LP's investment in Enterprise Master represented Enterprise LP's proportionate share of Enterprise Master's net assets; as a result, the investment balances of Enterprise Master reflected below may exceed the net investment which Enterprise LP has recorded. Merger Fund's investment in Merger Master represents Merger Fund's proportionate share of Merger Master's net assets; as a result, the investment balances of Merger Master reflected below may exceed the net investment which Merger Fund has recorded. The following tables present summarized investment information for the underlying investments and derivatives held by Enterprise Master and Merger Master as of December 31, 2019 and 2018:

F-44

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Securities owned by Enterprise Master, at fair value

	As of December 31,
	2018
	(dollars in thousands)
Common stock	$	469
	$	469

Portfolio Funds, owned by Enterprise Master, at fair value

		As of December 31, 2018
	Strategy	(dollars in thousands)
RCG Special Opportunities Fund, Ltd*	Multi-Strategy	$	111,548
Other Private Investments	Various	846
		$	112,394

* Affiliates of the Company.

Merger Master

	As of December 31,
	2019		2018
	(dollars in thousands)
Securities owned by Merger Master, at fair value
Common stock	$	76,531	$	162,811
Warrants and rights	748		—
Corporate bonds	2,074		116,488
	$	79,353	$	279,299
Securities sold, not yet purchased, by Merger Master, at fair value
Common stock	$	29,623	$	4,959
Exchange traded funds	38,527		4,651
	$	68,150	$	9,610

Receivable on derivative contracts, at fair value, owned by Merger Master

	As of December 31,
	2019		2018
Description	(dollars in thousands)
Options	$	2,047	$	3,450
Equity swaps	406		5,320
	$	2,453	$	8,770

Payable for derivative contracts, at fair value, owned by Merger Master

	As of December 31,
	2019		2018
Description	(dollars in thousands)
Options	$	1,158	$	1,430
Currency forwards	—		270
Equity swaps	268		28
	$	1,426	$	1,728

F-45

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 consolidated statements of financial condition by caption and by level within the valuation hierarchy as of December 31, 2019 and 2018:

	Assets at Fair Value as of December 31, 2019
	Level 1			Level 2			Level 3			Total
				(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	15,916		$	—		$	—		$	15,916
Preferred stock	4,821			—			7,835			12,656
Common stock	1,527,769			1,249			17,466			1,546,484
Convertible bonds	—			—			2,500			2,500
Corporate bonds	—			23,079			2,421			25,500
Trade claims	—			—			7,320			7,320
Term loan	—			1,067			—			1,067
Warrants and rights	21,515			—			594			22,109
Receivable on derivative contracts, at fair value
Swaps	—			2,911			—			2,911
Options	59,730			—			336			60,066
Consolidated Funds
Securities owned, at fair value
Government bonds	161,607			—			—			161,607
Preferred stock	—			—			4,393			4,393
Common stock	200,306			—			—			200,306
Corporate bonds	—			3,405			—			3,405
Warrants and rights	—			—			5,567			5,567
Receivable on derivative contracts, at fair value
Currency forwards	—			3,302			—			3,302
Equity swaps	—			927			—			927
Options	1,604			—			—			1,604
	$	1,993,268		$	35,940		$	48,432		$	2,077,640
Percentage of total assets measured at fair value on a recurring basis	95.9		%	1.7		%	2.3		%
Portfolio Funds measured at net asset value (a)										114,504
Carried interest (a)										30,360
Consolidated Funds' Portfolio Funds measured at net asset value (a)										175,769
Equity method investments										40,858
Total investments										$	2,439,131

F-46

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Liabilities at Fair Value as of December 31, 2019
	Level 1			Level 2			Level 3			Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Government bonds	$	—		$	—		$	1,950		$	1,950
Common stock	425,448			—			—			425,448
Corporate bonds	—			4,933			1,000			5,933
Preferred stock	3,686			—			—			3,686
Warrants and rights	14,819			—			—			14,819
Payable for derivative contracts, at fair value
Futures	217			—			—			217
Currency forwards	—			851			—			851
Swaps	—			23,169			—			23,169
Options	33,604			—			2,920			36,524
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—			—			30,896			30,896
Consolidated Funds
Payable for derivative contracts, at fair value
Currency forwards	—			88			—			88
Options	750			—			—			750
Equity swaps	—			3,931			—			3,931
	$	478,524		$	32,972		$	36,766		$	548,262
Percentage of total liabilities measured at fair value	87.3		%	6.0		%	6.7		%

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

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the second quarter of 2016 and the first quarter of 2019, 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 December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million.

F-47

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Assets at Fair Value as of December 31, 2018
	Level 1			Level 2			Level 3			Total
				(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	13,398		$	—		$	—		$	13,398
Preferred stock	449			—			5,168			5,617
Common stock	459,601			2,848			9,850			472,299
Convertible bonds	—			—			3,000			3,000
Corporate bonds	—			13,041			—			13,041
Trade claims	—			—			5,543			5,543
Warrants and rights	6,324			—			1,666			7,990
Receivable on derivative contracts, at fair value
Futures	334			—			—			334
Currency forwards	—			1			—			1
Swaps	—			917			—			917
Options	23,130			—			—			23,130
Pay to hold	—			743			—			743
Consolidated Funds
Securities owned, at fair value
Government bonds	38,377			—			—			38,377
Preferred stock	—			—			24,314			24,314
Common stock	95,471			—			94			95,565
Corporate bonds	—			24,098			—			24,098
Warrants and rights	—			—			5,279			5,279
Receivable on derivative contracts, at fair value
Currency forwards	—			186			—			186
Equity swaps	—			2,477			—			2,477
Options	1,753			—			—			1,753
	$	638,837		$	44,311		$	54,914		$	738,062
Percentage of total assets measured at fair value on a recurring basis	86.6		%	6.0		%	7.4		%
Portfolio Funds measured at net asset value (a)										124,741
Carried interest (a)										17,995
Consolidated Funds' Portfolio Funds measured at net asset value (a)										186,395
Equity method investments										38,671
Total investments										$	1,105,864

F-48

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Liabilities at Fair Value as of December 31, 2018
	Level 1			Level 2			Level 3			Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	194,305		$	—		$	—		$	194,305
Corporate bonds	—			750			—			750
Preferred stock	199			—			—			199
Warrants and rights	53			—			—			53
Payable for derivative contracts, at fair value
Currency forwards	—			709			—			709
Swaps	—			2,162			—			2,162
Options	11,115			—			2,096			13,211
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—			—			3,070			3,070
Consolidated Funds
Payable for derivative contracts, at fair value
Currency forwards	—			96			—			96
Options	854			—			—			854
Equity swaps	—			713			—			713
	$	206,526		$	4,430		$	5,166		$	216,122
Percentage of total liabilities measured at fair value	95.6		%	2.0		%	2.4		%

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

(b) In accordance with the terms of the purchase agreements for the acquisition that closed during the second quarter of 2016, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired business, if certain targets are achieved through the periods ended December 31, 2020. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires 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 as of December 31, 2018 can range from $2.8 million to $3.4 million.

The following table includes a roll forward of the amounts for the years ended December 31, 2019 and 2018 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.

F-49

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Year Ended December 31, 2019
	Balance at December 31, 2018		Transfers in			Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at December 31, 2019		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	5,168	$	—		$	(1,000)	(e)	$	3,513	$	(1,270)	$	1,424	$	7,835	$	2,285
Common stock	9,850		10,242		(d)(g)	(3)		(f)	11,477		(11,002)		(3,098)		17,466		(3,098)
Convertible bonds	3,000		—			(4,826)		(b) (e)	11,354		(7,072)		44		2,500		(25)
Corporate bond	—		4		(d)	—			2,811		(533)		139		2,421		140
Options, asset	—		330		(g)	—			—		—		6		336		6
Options, liability	2,096		—			—			—		(4)		828		2,920		828
Warrants and rights	1,666		—			—			—		(189)		(883)		594		31
Trade claims	5,543		—			—			7,205		(5,506)		78		7,320		76
Corporate bond, liability	—		2,525		(d)	—			—		—		(1,525)		1,000		(1,525)
Government bonds, liability	—		4,681		(d)	—			—		—		(2,731)		1,950		(2,731)
Contingent consideration liability	3,070		—			—			27,700		(1,234)		1,360		30,896		1,360
Consolidated Funds
Preferred stock	24,314		—			(19,929)		(e)	—		—		8		4,393		—
Common stock	94		—			(94)		(e)	407		(958)		551		—		—
Warrants and rights	$	5,279	$	—		$	—		$	—	$	(1,758)	$	2,046	$	5,567	$	289

	Year Ended December 31, 2018
	Balance at December 31, 2017		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at December 31, 2018		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	8,115	$	—	$	(1,141)	(b)	$	1,415	$	(695)	$	(2,526)	$	5,168	$	860
Common stock	7,570		—		(569)			3,324		(1,416)		941		9,850		1,797
Convertible bonds	282		—		—			3,000		(307)		25		3,000		—
Options, asset	1,455		—		—			—		(1,455)		—		—		—
Options, liability	22,401		—		(28,973)		(c)	—		(259)		8,927		2,096		8,927
Warrants and rights	2,517		—		—			—		(143)		(708)		1,666		(850)
Trade claim	5,950		—		—			44		(536)		85		5,543		—
Lehman claim	301		—		—			—		(234)		(67)		—		—
Contingent consideration liability	3,440		—		—			427		(797)		—		3,070		—
Consolidated Funds
Preferred stock	50,445		—		(38,552)		(a)	3,066		—		9,355		24,314		9,355
Common stock	50		—		—			—		—		44		94		44
Warrants and rights	$	3,568	$	—	$	(20)	(a)	$	—	$	(1,340)	$	3,071	$	5,279	$	1,730

(1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations.

        (a) The Company deconsolidated an investment fund.

        (b) The investments were converted to common stock. 

(c) On June 26, 2018, the Company received shareholder approval which allows the Company to settle its convertible note (see Note 23) entirely in class A common shares. Upon receiving shareholder approval, the Company reclassified the embedded conversion option, associated with the convertible debt, to equity (see Note 24).

(d) The investments had a change of valuation methodology due to increased activity in foreign market.

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

(f) Shares of common stock were exchanged for liquid warrants and rights of an acquired company.

(g) The holding Company which held common stock and options was liquidated.

F-50

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

All realized and unrealized gains (losses) in the table above are reflected in other income (loss) in the accompanying consolidated statements of operations.

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 1 and 2 generally relate to whether the principal market for the security becomes active or inactive. 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 December 31, 2019 and 2018 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 December 31, 2019		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	10,876	Discounted cash flows Guideline companies	Discount rate Market Multiples	8% - 11.25% 6.5x - 7x	10.4% 6.75x
Options	336		Discounted cash flows Guideline companies	Discount rate Market Multiples	9.75% - 11.25% 6.5x - 7x	10.5% 6.75x
Trade claims	24		Discounted cash flows	Discount rate	20%	20%
Warrants and rights	6,162		Model based Discounted cash flows	Volatility Discount rate	30% 6% to 7%	0% 6.1%
Corporate and convertible bonds	311		Discounted cash flows Recovery	Discount rate Probability of recovery	20% 1% to 3%	20% 2.3%
Other level 3 assets (a)	30,723
Total level 3 assets	$	48,432
Level 3 Liabilities
Options	2,920		Option pricing models	Volatility	35% to 40%	35%
Contingent consideration liability	30,896		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	15%-22% 17%	15% 17%
Other level 3 liabilities (a)	2,950
Total level 3 liabilities	$	36,766

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2018		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	4,323	Discounted cash flows / Guideline companies	Discount rate Market multiples	8%-14% 6.5x to 7x	8% 6.75x
Trade claims	25		Discounted cash flows	Discount rate	20%	20%
Warrants and rights	1,666		Model based Discounted cash flows	Discount rate	7% to 9%	7.8%
Other level 3 assets (a)	48,900
Total level 3 assets	$	54,914
Level 3 Liabilities
Options	2,096		Option pricing models	Volatility	35% to 40%	35%
Contingent consideration liability	3,070		Discounted cash flows	Projected cash flow and discount rate	21% to 23%	23%
Total level 3 liabilities	$	5,166

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

F-51

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

The Company has established valuation policies and procedures and an internal control infrastructure over its fair value measurement of financial instruments which includes ongoing oversight by the valuation committee as well as periodic audits performed by the Company's internal audit group. 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, including the review of the results of the independent price verification process, approval of new trading asset classes and use of applicable pricing models and approaches.

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 reviews a daily 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. Changes in capital rates, discount rates and replacement costs could significantly increase or decrease the valuation of the real estate investments. 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 December 31, 2019 and 2018, 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 2f).

	December 31, 2019						December 31, 2018						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	301,123		$	301,123		$	259,148		$	259,148		Level 1
Cash collateral pledged	6,563			6,563			6,318			6,318			Level 2
Segregated cash	107,328			107,328			176,647			176,647			Level 1
Securities borrowed	754,441			754,441			407,795			407,795			Level 2
Loans receivable	42,830			42,830		(d)	36,021			36,021		(d)	Level 3
Consolidated Funds
Cash and cash equivalents	30,874			30,874			38,118			38,118			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	23,244			27,384			—			—			Level 2
Securities loaned	1,601,866			1,601,866			414,852			414,852			Level 2
Convertible debt	118,688		(a)	148,786		(b)	134,489		(a)	157,433		(b)	Level 2
Notes payable and other debt	345,451		(e)	372,591		(c)	262,965			258,546		(c)	Level 2

(a)The carrying amount of the convertible debt includes an unamortized discount of $14.9 million and $19.5 million as of December 31, 2019 and 2018, respectively.

(b)The convertible debt includes the conversion option and is based on the last broker quote available.

F-52

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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

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

(e)The carrying amount of the notes payable and other debt includes an unamortized premium of $0.5 million as of December 31, 2019.

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 December 31, 2019 and 2018, the Company had a total of $91.8 million and $89.4 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 December 31, 2019 and 2018, amounts receivable from brokers, dealers and clearing organizations include:

	As of December 31,
	2019		2018
	(dollars in thousands)
Broker-dealers	$	623,523	$	692,581
Securities failed to deliver	45,673		72,918
Clearing organizations	3,180		15,319
Securities borrowed interest receivable	9,319		5,295
	$	681,695	$	786,113

As of December 31, 2019 and 2018, amounts payable to brokers, dealers and clearing organizations include:

	As of December 31,
	2019		2018
	(dollars in thousands)
Broker-dealers	$	185,838	$	159,443
Securities failed to receive	57,580		28,826
Clearing organizations	18,063		36,338
Securities loaned interest payable	9,537		4,124
	$	271,018	$	228,731

10. Receivable From and Payable To Customers

As of December 31, 2019 and 2018, receivable from customers of $105.6 million and $37.9 million, respectively, consist of amounts owed by customers relating to securities transactions not completed on settlement date and receivables arising from the prepayment of Commission Sharing Agreements ("CSA"), net of an allowance for credit losses. A prepaid CSA is established for research-related disbursements in advance of anticipated customer commission volumes.

As of December 31, 2019 and 2018, payable to customers of $430.2 million and $525.2 million, 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 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, for all intents and purposes, has no 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.

F-53

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

11. Fixed Assets

As of December 31, 2019 and 2018, fixed assets consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Telecommunication and computer equipment	$	7,556	$	3,301
Computer software	8,952		4,214
Furniture and fixtures	3,526		2,829
Leasehold improvements	40,301		37,652
Finance lease right-of-use asset (See Note 22)	6,172		10,077
	66,507		58,073
Less: Accumulated depreciation and amortization	(32,846)		(31,630)
	$	33,661	$	26,443

Depreciation and amortization expense related to fixed assets was $7.3 million, $7.4 million and $7.0 million for the years ended December 31, 2019, 2018, and 2017, respectively, and are included in depreciation and amortization expense in the accompanying consolidated statements of operations.

Assets acquired under finance leases were $6.2 million and $10.1 million as of December 31, 2019 and 2018, respectively. If the assets acquired under finance leases transfer title at the end of the lease term or contain a bargain purchase option, the assets are amortized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. The depreciation of assets capitalized under finance leases is included in depreciation and amortization expenses and was $1.3 million, $1.6 million, and $1.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. As of December 31, 2019 and 2018, accumulated depreciation related to assets acquired under finance leases was $2.2 million and $5.0 million, respectively.

12. Goodwill and Intangible Assets

Goodwill

In accordance with US GAAP, 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. Under US GAAP, the Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amounts as a basis for determining if it is necessary to perform a quantitative impairment test. Periodically estimating the fair value of a reporting unit requires significant judgment and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge.

Change in Segments

During the second quarter of 2019, the Company realigned its business segments to Op Co and Asset Co (See Note 1). Prior to the reorganization, the Investment Management segment was also a reporting unit for purposes of measuring and reporting goodwill.  The goodwill that was previously attributable to the Investment Management reporting unit was reallocated to the CIM reporting unit within the Op Co segment and the Asset Co reporting unit based on the relative fair value of the respective portions that became attributable to those reporting units.  The Asset Co segment is also a reporting unit for purposes of measuring and reporting goodwill.

Based on the change in segments and restructuring of reporting units, the Company determined that it was necessary to perform a quantitative impairment test which involved estimates of future cash flows, discount rates, economic forecast and other assumptions which are then used in the market approach (earnings and / or transactions multiples) and / or income approach (discounted cash flow method).

Based on the results of the impairment analysis, the Company recognized a goodwill impairment, during the second quarter of 2019, in the amount of $4.1 million within the Asset Co reporting unit.

F-54

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Annual impairment test

The Company performed its annual impairment test at December 31, 2019 by assessing qualitative factors to determine whether it is more likely than not that the fair value of its reporting units is less than their carrying amounts. The Company determined that a quantitative impairment test was not necessary based on the analysis.

Based on the results of the annual impairment analysis at December 31, 2019, the Company did not recognize any additional impairment relating to the CIM or Investment Bank reporting units. Additionally, no impairment charges for goodwill were recognized during the years ended December 31, 2018 and 2017 respectively.

The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2019 and 2018:

	Investment Management		Investment Bank		Cowen Investment Management		Asset Co		Total
	(dollars in thousands)
Beginning balance - December 31, 2017
Goodwill	$	29,026	$	51,337	$	—	$	—	80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2018
Recognized goodwill	—		—		—		—		—
Goodwill impairment charges	—		—		—		—		—
Ending balance: December 31, 2018
Goodwill	29,026		51,337		—		—		80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2019
Recognized goodwill (See note 3)	—		81,150		—		—		81,150
Realignment of segment goodwill:
Goodwill	(29,026)		—		22,705		6,321		—
Accumulated impairment charges	10,200		—		(7,979)		(2,221)		—
Goodwill impairment charges	—		—		—		(4,100)		(4,100)
Ending balance: December 31, 2019
Goodwill	—		132,487		22,705		6,321		161,513
Accumulated impairment charges	—		(9,485)		(7,979)		(6,321)		(23,785)
Net	$	—	$	123,002	$	14,726	$	—	$	137,728

In connection with the Quarton transaction (see Note 3), in January 2019, the Company recognized goodwill of $81.2 million and intangible assets (including customer relationships, trade name, backlog and proprietary software) with an estimated fair value of $22.2 million which are included within intangible assets, net in the consolidated statements of financial condition with the expected useful lives ranging from 2 to 4 years with a weighted average useful life of 2.8 years. Amortization expense related to intangibles from the Quarton acquisition for the year ended December 31, 2019 is $8.9 million. Goodwill, the excess of the purchase price over the fair value of net assets, primarily relates to expected synergies from combining operations and has been assigned to the Op Co segment of the Company. Tax deductible goodwill will differ from goodwill recognized by the Company in an amount equal to the difference between actual contingent consideration and estimated contingent consideration (see Note 3).

Intangible assets

Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2019 and 2018.

F-55

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

		December 31, 2019						December 31, 2018
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in thousands)						(in thousands)
Trade names	2.6 - 3	$	960	$	(360)	$	600	$	10,622	$	(10,599)	$	23
Customer relationships	2 - 14	51,724		(21,065)		30,659		41,134		(18,960)		22,174
Customer contracts	1.2	—		—		—		800		(800)		—
Non compete agreements and covenants with limiting conditions acquired	5	400		(347)		53		2,237		(2,055)		182
Intellectual property	8	1,188		(119)		1,069		—		—		—
Acquired software	3 - 10	7,323		(4,504)		2,819		8,243		(5,679)		2,564
		$	61,595	$	(26,395)	$	35,200	$	63,036	$	(38,093)	$	24,943

The Company tests intangible assets for impairment if events or circumstances suggest that the asset groups carrying value may not be fully recoverable. For the years ended December 31, 2019 and 2018, no impairment charge for intangible assets was recognized.

Amortization expense related to intangible assets was $13.1 million, $5.0 million, and $6.1 million for the years ended December 31, 2019, 2018, and 2017, respectively, which is included in depreciation and amortization expense in the accompanying consolidated statements of operations. All of the Company's intangible assets have finite lives.

The estimated future amortization expense for the Company's intangible assets placed in service as of December 31, 2019 is as follows:

	(dollars in thousands)
2020	$	13,035
2021	6,735
2022	5,120
2023	3,006
2024	2,707
Thereafter	4,597
	$	35,200

13. Other Assets

Other assets in Operating Entities are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Prepaid expenses	$	9,957	$	11,989
Reinsurance business receivables (b)	14,688		18,167
Tax receivables	8,464		7,029
Interest and dividends receivable	1,944		2,413
Deferred acquisition costs (b)	4,808		4,696
The Military Mutual loan (a)	27,459		21,504
Other (c)	16,838		13,216
	$	84,158	$	79,014

(a) The terms of the loan were revised as of December 31, 2019 to a maturity date of December 2029 and interest rate of 3%, related to the Company's commercial reinsurance activities.

(b) Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

(c) As of December 31, 2019 and 2018, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.5 million and$4.9 million, respectively.

F-56

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

14. Commission Management Payable

The Company receives a gross commission from various clearing 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 $71.6 million and $95.3 million, as of December 31, 2019 and 2018, respectively, are classified as commission management payable in the accompanying consolidated statements of financial condition.

15. Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred rent obligations	$	—	$	8,242
Contingent consideration payable (see Note 3)	30,896		3,070
Equity in RCG Longview Partners II, LLC (see Note 6)	—		6,367
Interest and dividends payable	5,828		2,483
Loss reserves and claims incurred but not reported (a)	30,282		23,714
Professional fees payable	4,789		5,177
Unearned premiums (a)	16,092		12,483
Fees payable	4,628		594
Accrued tax liabilities	2,778		1,742
Software contracts payable	2,884		—
Performance fees payable	3,708		5,959
Accrued expenses and accounts payable (b)	39,671		40,592
	$	141,556	$	110,423

(a) Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

(b) As of December 31, 2019 and 2018, the balance includes reinsurance premiums payable of $13.2 million and $15.7 million, respectively.

16. 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 December 31,
	2019		2018
	(dollars in thousands)
Redeemable non-controlling interests in consolidated subsidiaries and investment funds
Consolidated Funds	$	391,275	$	216,923
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds
Operating companies	11,513		7,457
Consolidated Funds	82,807		57,423
	$	485,595	$	281,803

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds
Operating companies	$	(3,264)	$	3,177	$	2,353
Consolidated Funds	34,503		33,883		21,438
	$	31,239	$	37,060	$	23,791

F-57

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

17. Reinsurance

The Company's wholly-owned Luxembourg subsidiary, Hollenfels Re SA ("Hollenfels") provides reinsurance to third party insurance and reinsurance companies. Hollenfels's share of incurred and paid claims, as well as claims incurred but not reported plus expected development on reported claims ("Claims IBNR") were as follows:

	Year Ended December 31,
	2019		2018
	(dollars in thousands)
Incurred and paid claims	$	24,380	$	14,800
Claims IBNR	$	5,647	$	11,800

Hollenfels utilizes several methods to determine its Claims IBNR. It generally employs 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, Hollenfels employs a method to average claims ratios derived through different actuarial calculation methods. Also, 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 Hollenfels's Claims IBNR. During the year ended December 31, 2019, Hollenfels calculated its claim liability or claim adjustment expenses using the above-mentioned methods consistent with prior years.

While Hollenfels typically settles its premiums and claim payments on a quarterly basis, the frequency of claims in the underlying policies is impractical for Hollenfels to obtain. Certain contracts Hollenfels has written are on a quota-share basis while the rest of the policies provide aggregate loss protection, rendering the collection of information for all underlying contracts impracticable. Hollenfels did not discount any of its reserves and did not cede any portion of its exposures during the years ended December 31, 2019, 2018 and 2017.

18. Other Revenues and Expenses

Other expenses, during the years ended December 31, 2019, 2018, and 2017, are primarily the general administrative expenses of the various operating company subsidiaries or the Consolidated Funds.

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

The Company issues share-based compensation under the 2010 Equity and Incentive Plan (the "Equity Plan"). The Equity Plan permits the grant of options, restricted shares, restricted stock units, stock appreciation rights ("SARs") 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 may be immediately vested or may generally vest over a two-to-five-year period. SARs vest and expire after five years from grant date. Awards are subject to the risk of forfeiture. As of December 31, 2019, there were no shares available for future issuance under the Equity Plan.

Under the Equity Plan, the Company awarded $42.5 million of deferred cash awards to its employees during the year ended December 31, 2019. These awards vest over a four-year period and accrue interest at 0.70% per year. As of December 31, 2019, the Company had unrecognized compensation expense related to the Equity Plan deferred cash awards of $60.3 million.

The Company measures compensation cost for share-based awards according to the equity method. In accordance with the expense recognition provisions of those standards, the Company amortizes unearned compensation associated with share-based 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 $34.0 million, $37.0 million, and $28.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. The income tax effect recognized for the Equity Plan was a benefit of $8.8 million, $9.7 million, and $7.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

F-58

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

The following table summarizes the Company's SARs for the years ended December 31, 2019 and 2018:

	Class A Common Shares Subject to Option	Weighted Average Exercise Price/Share		Weighted Average Remaining Term	Aggregate Intrinsic Value
				(in years)	(dollars in thousands)
Balance outstanding at December 31, 2017	75,000	$	11.60	0.21	$	173
SARs vested	(75,000)	14.21		—	—
Balance outstanding at December 31, 2018	—	$	—	0	$	—
SARs granted	—	—		—	—
SARs vested	—	—		—	—
SARs expired	—	—		—	—
Balance outstanding at December 31, 2019	—	$	—	0	$	—
SARs exercisable at December 31, 2018	—	$	—	0	$	—
SARs exercisable at December 31, 2019	—	$	—	0	$	—

As of December 31, 2019 and 2018 the Company's SARs were fully expensed.

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 years ended December 31, 2019 and 2018:

	Year Ended December 31, 2019			Year Ended December 31, 2018
	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	5,962,295	$	15.73	5,579,293	$	16.33
Granted	2,435,058	16.58		2,413,727	14.20
Vested	(2,291,032)	15.63		(1,961,824)	15.60
Canceled	(584,333)	11.49		—	—
Forfeited	(157,502)	13.98		(68,901)	14.21
Ending balance outstanding	5,364,486	$	16.67	5,962,295	$	15.73

Included in the restricted share and restricted stock unit activity are performance linked restricted stock units of 481,438 which were awarded to employees of the Company in December 2013 and January 2014. An additional 700,000 performance linked restricted stock units were awarded in March 2016 and 333,333 in April of 2019. Of the awards granted, 130,438 have been forfeited and 584,333 have been canceled, as they did not meet the performance criteria, through December 31, 2019. The remaining awards, included in the outstanding balance as of December 31, 2019, vest between March 2020 and December 2021 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 RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the targeted award. Each RSU is equal to the one share of the Company's Class A common stock. 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 (excluding certain performance linked units which are valued using the Monte Carlo valuation model) 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 December 31, 2019, there was $62.6 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 2.11 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 year ended December 31, 2019 and 120,430 were delivered. As of December 31, 2019 there were 216,912 restricted stock units outstanding. There were

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

88,504 restricted stock units awarded during the year ended December 31, 2018. As of December 31, 2018 there were 253,772 restricted stock units outstanding.

20. Defined Contribution Plans

The Company sponsors a Retirement and Savings Plan which is a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code (the "401(k) Plans"). All full-time employees of the Company can contribute on a tax deferred basis and an after-tax basis to the 401(k) Plans up to federal contribution limits or up to 100% of their annual compensation, subject to certain limitations. The Company provides matching and profit sharing contributions to employees that are equal to a specified percentage of the eligible participant's contribution as defined by the 401(k) Plans. For the years ended December 31, 2019, 2018, and 2017, the Company's contributions to the 401(k) Plans were $1.0 million, $1.0 million, and $0.7 million, respectively.

21. 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 have to be submitted on a stand-alone or combined 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 with tax filing obligations are the United Kingdom, Luxembourg, Germany, Switzerland, South Africa, Canada and Hong Kong.

The Company has reflected the impact of the TCJ Act in the financial statements, including a policy election to account for taxes on Global Intangible Low Tax Income ("GILTI") as incurred on the current year basis and not included in deferred taxes. The Company continues to monitor the impact of the TCJ Act as additional regulations and formal guidance are provided.

The components of the Company's income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
	(dollars in thousands)
Current tax expense/(benefit)
Federal	$	(731)	$	(1,883)	$	421
State and local	457		(2,148)		2,034
Foreign	1,831		785		428
Total	$	1,557	$	(3,246)	$	2,883
Deferred tax expense/(benefit)
Federal	$	10,242	$	12,018	$	44,071
State and local	3,598		6,956		(2,938)
Foreign	(544)		(9)		37
Total	13,296		18,965		41,170
Total tax expense/(benefit)	$	14,853	$	15,719	$	44,053

Consolidated U.S. income/(loss) before income taxes was $68.9 million in 2019, $93.0 million in 2018, and $3.9 million in 2017. The corresponding amounts for non-U.S.-based income/(loss) were $2.2 million in 2019, $6.0 million in 2018, and $3.1 million in 2017.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2019, 2018, and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
Pre-tax loss at U.S. statutory rate	21.0	%	21.0	%	35.0	%
Dividend received deduction	—		—		(25.9)
Bargain purchase gain	—		—		(34.8)
Basis adjustment on investments	—		3.5		65.2
Nondeductible expenses	4.1		1.2		14.2
Goodwill impairment	1.2		—		—
Change in valuation allowance	(4.0)		7.1		—
Impact of tax law change	—		—		669.8
State and foreign tax	8.0		(10.0)		25.3
Reversal of income attributable to non-controlling interests	(9.2)		(8.6)		(119.6)
Other, net	(0.1)		1.7		3.7
Total	21.0	%	15.9	%	632.9	%

As of December 31, 2019, the Company has net income taxes receivable of approximately $6.5 million representing federal, state and foreign tax overpayments, which is included in other assets on the accompanying consolidated statements of financial condition.

The components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred tax assets, net of valuation allowance
Net operating loss	$	60,160	$	48,294
Deferred compensation	46,545		59,697
Intangible assets	2,969		—
Tax credits	6,716		9,036
Lease liability	24,623		2,098
Other	3,043		2,444
Total deferred tax assets	144,056		121,569
Valuation allowance	(5,234)		(9,135)
Deferred tax assets, net of valuation allowance	138,822		112,434
Deferred tax liabilities
Right-of-use assets	(23,028)		—
Unrealized gains on investments	(26,545)		(13,092)
Amortization of bond discount	(3,980)		(4,643)
Other	(6,103)		(1,642)
Total deferred tax liabilities	(59,656)		(19,377)
Deferred tax assets/(liabilities), net	$	79,166	$	93,057

Deferred tax assets, net of valuation allowance, are reported in the accompanying consolidated statements of financial condition. In addition to the deferred tax balances in the table above, the Company records balances related to its operating losses in Luxembourg, which are discussed below.

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. The Company recorded approximately $5.2 million valuation allowance against its deferred tax assets of $144.1 million as of December 31, 2019 and recorded approximately $9.1 million valuation

F-61

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

allowance against its deferred tax assets of $121.6 million as of December 31, 2018. Separately, the Company has deferred tax liabilities of $59.7 million as of December 31, 2019 and $19.4 million as of December 31, 2018.

For tax year 2019, the Company's total deferred tax expense of $13.3 million was derived by the reversal of timing differences in the normal course of business. The deferred tax expense of $19.0 million in 2018 was derived by the basis difference from the disposal of assets and the reversal of timing differences in the normal course of business. The deferred tax expense of $41.2 million in 2017 predominantly related to the impact of the TCJ Act, and the reversal of timing differences in the normal course of business.

As of December 31, 2019, the Company has foreign tax credit carryforwards of $5.6 million which expire between 2019 and 2029. Valuation allowance of $4.2 million was established against foreign tax credit carryforward as the Company determined that it is not more likely than not that the credits will be utilized.

The Company has the following net operating loss carryforwards at December 31, 2019:

Jurisdiction:	Federal	New York State	New York City	Hong Kong
Net operating loss (in millions)	$175.1	$67.9	$108.8	$12.5
Year of expiration	2037	2037	2037	Indefinite

In addition to the net operating loss carryforwards in the table above, the Company also has net operating loss carryforwards in Luxembourg. These loss carryforwards are only accessible to the extent of taxable income generated by the Luxembourg reinsurance companies, including any deferred income that will be generated in the future. Consequently, the Company recorded a deferred tax asset of $258.4 million, net of deferred tax liabilities of $224.5 million in connection with future taxable income, and an offsetting valuation allowance of $258.4 million against its Luxembourg net operating loss carryforwards that are in excess of such taxable income.

In June 2011, the Company underwent a change of control under Section 382 of the Internal Revenue Code by the acquisition of a subsidiary with net operating loss carryovers. According, a portion of the Company's deferred tax assets, are subject to an annual limitation under Section 382. The deduction limitation is approximately $6.7 million annually and applies to approximately $30.3 million of net operating losses. The Company is not expected to lose any deferred tax assets as a result of these limitations.

The components of unrecognized tax benefits are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Beginning balance at January 1	$	299	$	3,947
Increases/(Decreases) due to current year positions	—		(3,648)
Ending balance at December 31	$	299	$	299

No unrecognized tax benefit was recognized in the consolidated statement of operations for the year ended December 31, 2019. No income tax-related interest and penalties are recognized in the consolidated statement of financial condition at December 31, 2019.

The following are the major tax jurisdictions in which the Company has significant business operations and the earliest tax year subject to examination:

Jurisdiction:	Federal	New York State	New York City	United Kingdom	Luxembourg	Germany	Switzerland
Tax Year	2016	2013	2016	2015	2017	2015	2014

Currently, the Company is under audit by New York State for the 2013 to 2017 tax years. Management is not expecting a material tax liability from these audits.

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

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 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 consolidated statements of operations.

For the year ended December 31, 2019, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statement of operations were as follows:

	Year Ended December 31, 2019
	(dollars in thousands)
Lease cost
Operating lease cost	$	23,540
Short-term lease cost	253
Variable lease cost	1,017
Sublease income	(953)
Total lease costs	$	23,857

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the year ended December 31, 2019:

	Year Ended December 31, 2019
	(dollars in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,743
Weighted average remaining lease term - operating leases (in years)	5.34
Weighted average discount rate - operating leases	4.13		%

As of December 31, 2019, maturities of the outstanding operating lease liabilities for the Company were as follows:

	Equipment Leases (operating) (b)		Real Estate and Other Facility Rental (a)
	(dollars in thousands)
2020	$	360	$	22,848
2021	206		24,271
2022	73		20,766
2023	—		17,610
2024	—		14,789
Thereafter	—		10,225
Total operating leases	639		110,509
Less discount	24		13,290
Less short-term leases	—		253
Total lease liability	$	615	$	96,966

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

(b)During the twelve months ended December 31, 2019, the Company recognized operating right-of-use assets and leases liabilities of $6.9 million for equipment leases.

See Note 23 for further information on the finance lease minimum payments.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Prior to the adoption of the new lease accounting guidance, the minimum rental commitments under non-cancelable operating leases at December 31, 2018, were as follows:

	Equipment Leases (a)		Service Payments		Real Estate and Other Facility Rental (b)
	(dollars in thousands)
2019	$	2,434	$	21,758	$	24,584
2020	1,492		7,514		22,608
2021	1,382		1,877		22,321
2022	1,123		1,372		19,166
2023	374		735		16,204
Thereafter	—		735		21,478
	$	6,805	$	33,991	$	126,361

(a)Equipment Leases includes the Company's commitments relating to operating and finance leases. See Note 23 for further information on the finance lease minimum payments which are included in the table.

(b)The Company has entered into various agreements to sublease certain of its premises. The Company recorded sublease income related to these leases of $1.4 million and $1.1 million for the years ended December 31, 2018 and 2017, respectively.

Other Commitments

As of December 31, 2019, future minimum annual service payments for the Company were as follows:

	Service Payments
	(dollars in thousands)
2020	$	22,217
2021	14,674
2022	9,358
2023	4,095
2024	1,938
Thereafter	4,401
Total service payment commitments	$	56,683

Clawback Obligations

For financial reporting purposes, the general partners of a real estate fund had recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the real estate fund's remaining investments and where the real estate fund's general partner has previously received carried interest distributions. The clawback liability was not realized until the end of the real estate fund's life. The Company's share of the clawback obligations for the real estate fund, for which the Company has an interest in the general partner, was $6.5 million at December 31, 2018, which is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. The liability was fully repaid in December 2019 (see Note 6 to the Company's consolidated financial statements).

The Company serves as the general partner/managing member and/or investment manager to various affiliated and sponsored investment funds. As such, the Company is contingently liable for obligations for those entities. These amounts are not included above as the Company believes that the assets in these investment funds are sufficient to discharge any liabilities.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Unfunded Commitments

The following table summarizes unfunded commitments as of December 31, 2019:

Entity	Unfunded Commitments		Commitment Term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	7,605	5 years
Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.)	$	88	5 years
Lagunita Biosciences, LLC	$	500	4 years
Eclipse Fund II, L.P.	$	180	6 years
Eclipse Continuity Fund I, L.P.	$	152	7 years
Cowen Healthcare Investments II LP	$	3,406	2 years
Cowen Healthcare Investments III LP	$	8,602	7 years
Cowen Sustainable Investments I LP	$	25,000	10 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 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

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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. Convertible Debt and Notes Payable

As of December 31, 2019 and 2018, the Company's outstanding debt was as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Convertible debt	$	118,688	$	134,489
Notes payable	306,818		229,740
Term loan	32,180		28,200
Other notes payable	2,516		—
Finance lease obligations	3,937		5,025
	$	464,139	$	397,454

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 are due on 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 may be converted into cash or shares of Class A common stock at the Company's election based on the current conversion price. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock.

The Company used the net proceeds, together with cash on hand, from the offering for general corporate purposes, including the repurchase or repayment of $115.1 million of the Company's outstanding 3.0% cash convertible senior notes due March 2019 (the "March 2019 Convertible Notes") and the repurchase of approximately $19.5 million of the Company's shares of its Class A common stock, which were consummated substantially concurrently with the closing of the offering. As of December 31, 2019, the outstanding principal amount of the December 2022 Convertible Notes was $135.0 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 recorded interest expense of $4.1 million, $4.1 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. 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 consolidated statements of financial condition. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations is $4.3 million, $4.0 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively, 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 will be amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying consolidated statements of operations.

March 2019 Convertible Notes

On March 10, 2014, the Company issued $149.5 million of 3.0% cash convertible senior notes (the "March 2019 Convertible Notes"). The March 2019 Convertible Notes matured on March 15, 2019 and were fully repaid by the Company. The Company recorded interest expense of $0.1 million, $1.1 million, and $4.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations was $0.3 million, $1.5 million and $7.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, based on an effective interest rate of 8.89%.

F-66

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 consolidated statement of financial condition.   To date the May 2024 Notes have maintained their initial private rating, and the interest rate has remained unchanged. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $2.9 million for the year ended December 31, 2019. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in December 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 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 $7.7 million and $4.3 million for the years ended December 31, 2019 and 2018, 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 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 $10.1 million, $10.1 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. 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 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.

Term Loan

On June 30, 2017, a subsidiary of the Company borrowed $28.2 million to fund general corporate purposes. This term loan has an effective interest rate of LIBOR plus 3.75% with a lump sum payment of the entire principal amount due (as amended) on June 26, 2020. In July 2019, the subsidiary of the Company borrowed an additional $4.0 million to fund general corporate purposes. The loan is secured by the value of the Company's limited partnership interests in two affiliated investment funds. The Company has provided a guarantee for this loan. The Company recorded interest expense of $1.8 million, $1.6 million and $0.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Other Notes Payable

During January 2019, the Company borrowed $2.2 million to fund insurance premium payments. This note had an effective interest rate of 2.51% and was due on December 31, 2019, with monthly payment requirements of $0.2 million. As of December 31, 2019, the note was fully repaid. Interest expense was $0.1 million for the year ended December 31, 2019.

During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note is due November 2024, with monthly payment requirements of $0.1 million. As of December 31, 2019, the note had a balance of $2.5 million. Interest expense for the year ended December 31, 2019 was insignificant.

Revolver

The Company, in December 2019, entered into a two-year committed credit facility with a capacity of $25 million. This agreement has an effective interest rate of LIBOR plus 3.25% on any money drawn from the credit facility and the commitment or unused line fee is 50 basis points on the undrawn amount.

F-67

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 consolidated statements of financial condition, and have a weighted average lease term of 3.21 years and weighted average interest rate of 4.88% as of December 31, 2019.

For the years ended December 31, 2019, 2018 and 2017, quantitative information regarding the Company's finance lease obligations reflected in the accompanying consolidated statement of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Year Ended December 31,
	2019		2018
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	1,266	$	1,627
Interest on lease liabilities	227		231
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	227		231
Financing cash flows from finance leases	$	1,266	$	2,186

Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of December 31, 2019, are as follows:

	Convertible Debt		Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2020	$	4,050	$	23,548	$	33,126	$	593	$	1,290
2021	4,050		23,548		—		593		1,398
2022	139,050		23,548		—		593		1,166
2023	—		23,548		—		593		411
2024	—		98,721		—		543		11
Thereafter	—		334,304		—		—		—
Subtotal	147,150		527,217		33,126		2,915		4,276
Less (a)	(28,462)		(220,399)		(946)		(399)		(339)
Total	$	118,688	$	306,818	$	32,180	$	2,516	$	3,937

(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 convertible debt.

Letters of Credit

As of December 31, 2019, the Company has the following 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 collateral for reinsurance agreements which amounted to $2.0 million as of December 31, 2019, and $1.0 million as of December 31, 2018, which are released annually between March 2020 and March 2023 based on the policy periods covered by the reinsurance agreements.

Location	Amount		Maturity
	(dollars in thousands)
Boston	$	382	March 2020
New York	$	359	April 2020
New York	$	398	October 2020
New York	$	1,125	October 2020
New York	$	1,629	November 2020
San Francisco	$	716	October 2025

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2019 and 2018 there were no amounts due related to these letters of credit.

24. 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. The Company is also 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 common stock or 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.

Common stock

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.

Each holder of Class B common stock is not 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.

Preferred stock

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.

Preferred Stock and Purchase of Capped Call Option

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 ("Series A Convertible Preferred Stock") that provided $117.2 million of proceeds, net of

F-69

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 accrued a cash dividend of $6.8 million $6.8 million, and $6.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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.

Each share of Series A Convertible Preferred Stock is 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, the Company may 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.

In connection with the issuance and sale of the Series A Convertible Preferred Stock, the Company entered into a capped call option transaction (the "Capped Call Option Transaction") with Nomura Global Financial Products Inc. for $15.9 million. The Capped Call Option Transaction is expected generally to reduce the potential dilution to the Company's Class A common stock (if the Company elects to convert to common shares) and/or offset any cash payments that the Company is required to make upon conversion of any Series A Convertible Preferred Stock. The Capped Call Option Transaction has an initial effective strike price of $26.27 per share, which matches the initial conversion price of the Series A Convertible Preferred Stock, and a cap price of $33.54 per share. However, to the extent that the market price of Class A common stock, as measured under the terms of the Capped Call Option Transaction, exceeds the cap price thereof, there would nevertheless be dilution and/or such cash payments would not be offset. As the Capped Call Option Transaction is a free standing derivative that is indexed to the Company's own stock price and the Company controls if it is settled in cash or stock it qualifies for equity classification as a reduction to additional paid in capital.

Embedded Cash Conversion Option on the December 2022 Convertible Notes

Upon issuance of the December 2022 Convertible Notes (see Note 23), 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.

Treasury Stock

Treasury stock of $284.3 million as of December 31, 2019, compared to $234.1 million as of December 31, 2018, resulted from $15.2 million acquired through repurchases of shares to cover employee minimum tax withholding obligations related to stock compensation vesting events under the Company's Equity Plan or other similar transactions, $0.5 million received 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 and $34.5 million purchased in connection with a share repurchase program.

F-70

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

The following represents the activity relating to the treasury stock held by the Company during the year ended December 31, 2019:

	Treasury stock shares	Cost (dollars in thousands)		Average cost per share
Balance outstanding at December 31, 2018	15,336,871	$	234,142	$	15.27
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions	1,005,387	15,217		15.14
Shares of stock received in respect of indemnification claims	29,687	457		15.39
Purchase of treasury stock	2,233,636	34,485		15.44
Balance outstanding at December 31, 2019	18,605,581	$	284,301	$	15.28

25. Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income includes the after tax change in unrealized gains and losses on foreign currency translation adjustments. During the periods presented, the Company did not have material reclassifications out of other comprehensive income.

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Beginning Balance	$	(5)	$	(8)	$	(2)
Foreign currency translation	—		3		(6)
Ending Balance	$	(5)	$	(5)	$	(8)

26. 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 common shares outstanding for the period. As of December 31, 2019, there were 28,610,357 shares of Class A common stock outstanding. As of December 31, 2019, the Company has included 216,912 fully vested, unissued restricted stock units in its calculation of basic earnings per share. As of December 31, 2018, there were 28,437,860 shares of Class A common stock outstanding. As of December 31, 2018, the Company has included 253,772 fully vested, unissued restricted stock units 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, restricted stock units, and SARs. 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, and options and warrants are assumed to have been exercised, 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 can elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. The Company's intent is to settle in cash and, based on current and projected liquidity needs, the Company has the ability to do so.

F-71

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

The computation of earnings per share is as follows:

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands, except share and per share data)
Net income (loss)	$	55,870	79,879		$	(37,091)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	31,239		37,060		23,791
Net income (loss) attributable to Cowen Inc.	24,631		42,819		(60,882)
Preferred stock dividends	6,792		6,792		6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$	17,839	$	36,027	$	(67,674)
Shares for basic and diluted calculations:
Weighted average shares used in basic computation	29,525		29,545		29,492
Contingently issuable common stock in connection with an acquisition (see Note 3)	26		—		—
Restricted stock	1,735		1,190		—
Weighted average shares used in diluted computation	31,286		30,735		29,492
Earnings (loss) per share:
Basic	$	0.60	$	1.22	$	(2.29)
Diluted	$	0.57	$	1.17	$	(2.29)

27. Segment Reporting

Change in Segments

During the second quarter of 2019 the Company realigned the information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including evaluation and allocation of resources. As a result of this change in segment reporting, the Company retrospectively revised prior period results, by segment, to conform to the current period presentation (see Note 1). This structure includes two business segments: Op Co and Asset Co. The structure is based on the Company's domain expertise as a driver of balance sheet harmonization and repeatable revenues for its operating business versus the Company's long-term monetization strategies.

The Op Co segment consists of 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.

Performance Measures

The performance measure 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 a pre-tax measure that (i) eliminates the impact of consolidation for Consolidated Funds and excludes (ii) goodwill and intangible impairment (iii) certain other transaction-related adjustments and/or reorganization expenses and (iv) certain costs associated with debt. Economic Operating Income (Loss) represents Economic Income (Loss) before depreciation and amortization expenses. In addition, Economic Income (Loss) revenues include investment income that represents the income the Company has earned in investing its own capital, including realized and unrealized gains and losses, interest and dividends, net of associated investment related expenses. For US GAAP purposes, these items are included in each of their respective line items. Economic Income (Loss) revenues also include management fees, incentive income and investment income earned through the Company's investment as a general partner in certain real estate entities and the Company's investment in the activist business and certain investment funds. For US GAAP purposes, all of these items, are recorded in other income (loss). Economic Income (Loss) recognizes (a) incentive fees during periods when the fees are not yet crystallized for US GAAP reporting, (b) start-up costs of a fund over the expected life of the fund and (c) retainer fees, relating to investment banking activities, earned during the period that would otherwise be deferred until closing for US GAAP reporting. In addition, Economic Income (Loss) expenses are reduced by reimbursement from affiliates, which for US GAAP purposes is presented gross as part of revenue.

F-72

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

As further stated below, one major difference between Economic Income (Loss) and US GAAP net income (loss) is that Economic Income (Loss) presents the segments' results of operations without the impact resulting from the full consolidation of any of the Consolidated Funds. The consolidation of these investment funds' results include the pro rata share of the income or loss attributable to other owners of such entities which is reflected in net income (loss) attributable to non-controlling interest in consolidated subsidiaries in the accompanying consolidated statements of operations. This pro rata share has no effect on the overall financial performance for the segments, as ultimately, this income or loss is not income or loss for the segments themselves. Included in Economic Income (Loss) is the actual pro rata share of the income or loss attributable to the Company as an investor in such entities, which is relevant in management making operating decisions and evaluating financial performance. The Company does not disclose total asset information for its business segments as the information is not reviewed by the CODM.

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

F-73

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Year Ended December 31, 2019
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	352,192	$	—	$	352,192	$	—	$	22,833	(a)	$	375,025
Brokerage	440,413		—		440,413		—		(37,666)		(b)	402,747
Management fees	43,698		1,976		45,674		(2,270)		(10,796)		(c)	32,608
Incentive income (loss)	45,041		1,152		46,193		(600)		(44,046)		(c)	1,547
Investment income (loss)	51,344		3,111		54,455		—		(54,455)		(d)	—
Interest and dividends	—		—		—		—		174,913		(b)(d)	174,913
Reimbursement from affiliates	—		—		—		(122)		1,148		(e)	1,026
Reinsurance premiums	—		—		—		—		46,335		(f)	46,335
Other revenue	5,785		58		5,843		(14)		(396)		(f)	5,433
Consolidated Funds revenues	—		—		—		9,809		—			9,809
Total revenues	938,473		6,297		944,770		6,803		97,870			1,049,443
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	22,576		5,449		28,025		—		140,603		(b)(d)	168,628
Total net revenues	915,897		848		916,745		6,803		(42,733)			880,815
Expenses
Non interest expense	847,485		9,030		856,515		—		79,286		(a)(e)(h)(i)	935,801
Goodwill impairment	—		—		—		—		4,100			4,100
Consolidated Funds expenses	—		—		—		8,963		—			8,963
Total expenses	847,485		9,030		856,515		8,963		83,386			948,864
Total other income (loss)	—		—		—		36,663		102,109		(c)(d)(i)	138,772
Income taxes expense / (benefit)	—		—		—		—		14,853		(h)	14,853
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	4,796		—		4,796		34,503		(8,060)			31,239
Income (loss) attributable to Cowen Inc.	63,616		(8,182)		55,434		—		(30,803)			$	24,631
Less: Preferred stock dividends	5,434		1,358		6,792		—		—			6,792
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	58,182		(9,540)		48,642		$	—	$	(30,803)		$	17,839
Add back: Depreciation and Amortization expense	20,403		36		20,439
Economic operating income (loss)	$	78,585	$	(9,504)	$	69,081

F-74

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Year Ended December 31, 2018
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	329,061	$	—	$	329,061	$	—	$	28,161	(a)	$	357,222
Brokerage	452,299		—		452,299		—		(38,717)		(b)	413,582
Management fees	43,466		5,709		49,175		(2,513)		(17,004)		(c)	29,658
Incentive income (loss)	16,851		6,896		23,747		(52)		(20,578)		(c)	3,117
Investment income (loss)	53,593		2,753		56,346		—		(56,346)		(d)(g)	—
Interest and dividends	—		—		—		—		108,009		(d)	108,009
Reimbursement from affiliates	—		—		—		(269)		1,307		(e)	1,038
Aircraft lease revenue	—		—		—		—		1,852		(g)	1,852
Reinsurance premiums	—		—		—		—		38,096		(f)	38,096
Other revenue	(1,619)		451		(1,168)		—		5,672		(f)	4,504
Consolidated Funds revenues	—		—		—		9,838		—			9,838
Total revenues	893,651		15,809		909,460		7,004		50,452			966,916
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	17,489		5,524		23,013		—		81,103		(d)	104,116
Total net revenues	876,162		10,285		886,447		7,004		(30,651)			862,800
Expenses
Non interest expense	788,272		17,087		805,359		—		76,970		(a)(e)(h)(i)	882,329
Consolidated Funds expenses	—		—		—		8,615		—			8,615
Total expenses	788,272		17,087		805,359		8,615		76,970			890,944
Total other income (loss)	—		—		—		35,494		88,248		(c)(d)(i)(j)	123,742
Income taxes expense / (benefit)	—		—		—		—		15,719		(h)	15,719
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	4,212		742		4,954		33,883		(1,777)			37,060
Income (loss) attributable to Cowen Inc.	83,678		(7,544)		76,134		—		(33,315)			42,819
Less: Preferred stock dividends	5,162		1,630		6,792		—		—			6,792
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	78,516		(9,174)		69,342		$	—	$	(33,315)		$	36,027
Add back: Depreciation and Amortization expense	11,402		181		11,583
Economic operating income (loss)	$	89,918	$	(8,993)	$	80,925

F-75

Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

	Year Ended December 31, 2017
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	223,614	$	—	$	223,614	$	—	$	—		$	223,614
Brokerage	312,780		—		312,780		—		(19,170)		(b)	293,610
Management fees	45,007		10,380		55,387		(2,593)		(19,549)		(c)	33,245
Incentive income (loss)	17,872		8,156		26,028		(1,739)		(18,906)		(c)	5,383
Investment income (loss)	7,204		37,938		45,142		—		(45,142)		(d)(g)	—
Interest and dividends	—		—		—		—		49,440		(b)(d)	49,440
Reimbursement from affiliates	—		—		—		(297)		3,157		(e)	2,860
Aircraft lease revenue	—		—		—		—		3,751		(g)	3,751
Reinsurance premiums	—		—		—		—		30,996		(f)	30,996
Other revenue	3,307		(76)		3,231		—		5,330		(f)	8,561
Consolidated Funds revenues	—		—		—		7,321		—			7,321
Total revenues	609,784		56,398		666,182		2,692		(10,093)			658,781
Interest expense	13,599		5,289		18,888		—		42,061		(d)	60,949
Total net revenues	596,185		51,109		647,294		2,692		(52,154)			597,832
Expenses
Non interest expense	584,816		40,571		625,387		(199)		58,935		(a)(e)(h)(i)	684,123
Consolidated Funds expenses	—		—		—		12,526		—			12,526
Total expenses	584,816		40,571		625,387		12,327		58,935			696,649
Total other income (loss)	—		—		—		31,073		74,706		(c)(d)(i)(j)(k)	105,779
Income taxes expense / (benefit)	—		—		—		—		44,053		(h)	44,053
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	5,178		894		6,072		21,438		(3,719)			23,791
Income (Loss) attributable to Cowen Inc.	6,191		9,644		$	15,835	$	—	$	(76,717)		$	(60,882)
Less: Preferred stock dividends	4,890		1,902		6,792							6,792
Income (Loss) attributable to Cowen Inc. common stockholders	1,301		7,742		9,043							$	(67,674)
Add back: Depreciation and amortization expense	11,211		347		11,558
Economic Operating Income (Loss) attributable to Cowen Inc. common stockholders	$	12,512	$	8,089	$	20,601

The following is a summary of the adjustments made to US GAAP net income (loss) to arrive at Economic Income (Loss):

Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) 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).

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Other Adjustments:

(a)	Economic Income (Loss) presents underwriting expenses net of investment banking revenues, expenses reimbursed from clients within their respective expense category. Economic Income (Loss) also records retainer fees, relating to investment banking activities, collectible during the period that would otherwise be deferred until closing for US GAAP reporting.
(b)	Economic Income (Loss) brokerage revenues included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP.
(c)	Economic Income (Loss) recognizes revenues (i) net of fund start-up costs and distribution fees paid to agents, (ii) records income from uncrystallized incentive fees and (iii) the Company's proportionate share of management and incentive fees of certain real estate operating entities, the healthcare royalty business and the activist business.
(d)	Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) for which the majority of this activity is shown in other income (loss) for US GAAP reporting.
(e)	Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP.
(f)	Economic Income (Loss) recognizes underwriting income from the Company's insurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting.
(g)	Aircraft lease revenue is shown net of expenses in investment income for Economic Income (Loss).
(h)	Economic Income (Loss) excludes income taxes and acquisition related adjustments as management does not consider these items when evaluating the performance of the segment.
(i)	Economic Income (Loss) recognizes the Company's proportionate share of expenses, for certain real estate operating entities and the activist business, for which the investments are recorded under the equity method of accounting for investments.
(j)	Economic Income (Loss) excludes gain/(loss) on debt extinguishment.
(k)	Economic Income (Loss) excludes the bargain purchase gain which resulted from the Convergex Group acquisition.

For the years ended December 31, 2019 and 2018, there was no one investment fund or other customer which represented more than 10% of the Company's total revenues.

28. Regulatory Requirements

As registered broker-dealers, Cowen and Company, Cowen Execution, ATM Execution, Cowen Prime and Westminster are subject to the SEC's Uniform Net Capital Rule 15c3-1 ("SEC Rule 15c3-1"), 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. Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEC Rule 15c3-1, is $1.0 million. Cowen Execution, ATM Execution, Cowen Prime and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEC 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 SEC Rule 15c3-1 and other regulatory bodies.

On February 7, 2019, FINRA approved the transfer of all of Cowen Securities' business and personnel to Cowen and Company. Cowen Securities subsequently filed a Form BDW, pursuant to Section 15(b) of the Securities Exchange Act of 1934, with FINRA to withdraw its status as a broker-dealer given that it will no longer conduct a securities business. On May 21, 2019, Cowen Securities Form BDW was approved and officially deregistered with the SEC. As of December 31, 2019, the entity has been dissolved.

Cowen Prime is also subject to Commodity Futures Trading Commission Regulation 1.17 ("Regulation 1.17"). Regulation 1.17 requires net capital equal to or in excess of $45,000 or the amount of net capital required by SEC Rule 15c3-1, whichever is greater. Cowen Execution is also subject to Options Clearing Corporation ("OCC") Rule 302. OCC Rule 302 requires maintenance of net capital equal to the greater of $2.0 million or 2% of aggregate debit items. At December 31, 2019, Cowen Execution had $103.2 million of net capital in excess of this minimum requirement.

Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the FCA, as defined, and must exceed the minimum capital requirement set forth by the FCA. Effective June 1, 2018, the FCA approved Ramius UK’s

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

application to cancel all of its FCA authorization permissions. Accordingly, Ramius UK is no longer an FCA regulated and authorized firm. In April 2019, Cowen Execution Ltd was formally approved to trade in a principal capacity.

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 December 31, 2019, these regulated broker-dealers had regulatory net capital or financial resources, regulatory net capital requirements or minimum FCA or SFC requirement and excess as follows:

Subsidiary	Net Capital		Minimum Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	91,348	$	1,000	$	90,348
Cowen Execution	$	105,822	$	2,673	$	103,149
ATM Execution	$	5,354	$	250	$	5,104
Cowen Prime	$	13,659	$	250	$	13,409
Westminster	$	14,797	$	250	$	14,547
Cowen International Ltd	$	15,988	$	7,597	$	8,391
Cowen Execution Ltd	$	11,808	$	2,509	$	9,299
Cowen Asia	$	1,307	$	385	$	922

The Company's U.S. broker-dealers must also comply with SEC Rule 15c3-3 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. Cowen and Company, Cowen Prime and ATM Execution claim the (k)(2)(ii) exemption with regards to some or all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Cowen and Company, Cowen Prime and Westminster claim the (k)(2)(i) exemption with regards to customer transactions and balances that are cleared, settled and custodied in Special Bank Accounts.

In accordance with the requirements of SEC Rule 15c3-3, Cowen Execution may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of December 31, 2019, Cowen Execution had segregated approximately $17.6 million of cash, while its required deposit was $5.5 million.

As a clearing broker-dealer, Cowen Execution is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEC Rule 15c3-3. Cowen Execution conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEC Rule 15c3-3. This allows each correspondent firm that uses Cowen Execution as its clearing broker-dealer to classify its PAB account assets held at Cowen Execution as allowable assets in the correspondent's net capital calculation. At December 31, 2019, Cowen Execution had $22.5 million of cash on deposit in PAB Reserve Bank Accounts, which was more than its required deposit of $14.8 million.

Cowen and Company, ATM Execution, Cowen Prime and Cowen 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's Luxembourg reinsurance companies, Vianden RCG Re SCA and Hollenfels, individually and their Luxembourg parent holding company, Ramius Enterprise Luxembourg Holdco S.à r.l., on a combined basis with the reinsurance companies, are required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Luxembourg. Each reinsurance company's individual solvency capital ratio as well as the combined solvency capital ratio of the holding and reinsurance companies calculated as of December 31 of each year must exceed a minimum requirement. As of the last testing date, December 31, 2019, all of these entities were in excess of this minimum requirement. The companies are currently, and management expects they will be at the next testing date of December 31, 2020, in compliance with these 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 December 31, 2019. RCG Insurance Company’s capital and surplus as of December 31, 2019 totaled approximately $32.8 million.

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Notes to Consolidated Financial Statements (Continued)

29. 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 December 31, 2019 and 2018, $20.5 million and $19.4 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 years ended December 31, 2019, 2018 and 2017, 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 consolidated statements of financial condition. As of December 31, 2019 and 2018, loans to employees of $14.9 million and $17.0 million, respectively, were included in due from related parties on the accompanying consolidated statements of financial condition. Of these amounts $7.1 million and $8.8 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 $3.8 million, $3.1 million, and $2.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. This expense is included in employee compensation and benefits in the accompanying consolidated statement of operations. For the year ended December 31, 2019, the interest income was $0.1 million for these related party loans and advances, respectively, and are included in interest and dividends in the accompanying consolidated statement of operations. For the year ended December 31, 2018, the interest income was immaterial, and for the year ended December 31, 2017, the interest income was $0.1 million for these related party loans and advances. This income is included in interest and dividends in the accompanying consolidated statement of operations.

As of December 31, 2019 and 2018, included in due from related parties is $6.5 million and $7.7 million, respectively, related to the sales of portions of the Company's ownership interest in the activist business of Starboard Value to the Starboard principals. It is being financed through the profits of the relevant Starboard entities over a 5 year period and earns interest at 5% per annum.  The interest income for the years ended December 31, 2019, 2018, and 2017, was $0.3 million, $0.4 million, and $0.8 million, respectively.

The remaining balance included in due from related parties of $5.3 million and $8.9 million as of December 31, 2019 and 2018, respectively, relates to amounts due to the Company from affiliated investment funds and real estate entities due to expenses paid on their behalf. Included in due to related parties is approximately $0.3 million and $0.6 million as of December 31, 2019 and 2018, respectively, related to a subordination agreement with an investor in certain real estate funds. This total is based on a hypothetical liquidation of the real estate funds as of the balance sheet date.

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 December 31, 2019 and 2018, such investments aggregated $36.0 million and $25.1 million, respectively, were included in non-controlling interests on the accompanying consolidated statements of financial condition. Their share of the net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds aggregated $7.9 million, $7.6 million, and $7.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company may, at times, have unfunded commitment amounts pertaining to related parties. See Note 22 "Commitments and Contingencies" for amounts committed as of December 31, 2019.

30. 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

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

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 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 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 December 31, 2019 and 2018. 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

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

are collateralized by the securities. The Company maintains uncommitted financing arrangements with large financial institutions, the details of which are summarized below as of December 31, 2019.

Lender	Contractual Amount		Available Amount		Maturity Date	Description
Pledge Lines	(dollars in thousands)
Texas Capital Bank	$	75,000	$	75,000	None	Secured Depository Trust Company Pledge Line
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	300,000		300,000
Revolving Credit Facility
BMO Harris Bank Canadian Imperial Bank of Commerce Texas Capital Bank	70,000		70,000		August 21, 2020	(Syndicated) Unsecured liquidity facility to cover increases in National Securities Clearing Corporation margin deposit requirements
BMO Harris Bank	25,000		25,000		December 2, 2021	Secured Corporate Revolver
Total	95,000		95,000
Total Credit Lines	$	395,000	$	395,000

31. Subsequent Events

On February 11, the Board of Directors declared a quarterly cash dividend payable on its common stock of $1.3 million, or $0.04 per common share, payable on March 16, 2020, to stockholders of record on March 2, 2020. During the same meeting, the Board of Directors also approved a $12.1 million increase in the Company's share repurchase program (see Note 19) bringing the total remaining shares available for repurchase to $25.0 million.

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 consolidated financial statements.

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Cowen Inc.

Notes to Consolidated Financial Statements (Continued)

Supplemental Financial Information

The following table presents unaudited quarterly results of operations for 2019 and 2018. These quarterly results reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results. Revenues and net income (loss) can vary significantly from quarter to quarter due to the nature of the Company's business activities.

Cowen Inc.

Quarterly Financial Information (Unaudited)

	Quarter Ended
	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2019
	(dollars in thousands, except per share data)
Total revenues	$	224,097	$	292,164	$	252,047	$	281,135
Income (loss) before income taxes	13,472		14,792		7,948		34,511
Income tax expense (benefit)	3,177		5,073		1,365		5,238
Net income (loss)	10,295		9,719		6,583		29,273
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	512		3,907		2,770		24,050
Net income (loss) attributable to Cowen Inc.	9,783		5,812		3,813		5,223
Preferred stock dividends	1,698		1,698		1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders	$	8,085	$	4,114	$	2,115	$	3,525
Earnings (loss) per share:
Basic	$	0.27	$	0.14	$	0.07	$	0.12
Diluted	$	0.26	$	0.13	$	0.07	$	0.11
Weighted average number of common shares:
Basic	29,750		29,769		29,529		29,046
Diluted	31,625		31,522		31,264		30,722

	Quarter Ended
	March 31, 2018		June 30, 2018		September 30, 2018		December 31, 2018
	(dollars in thousands, except per share data)
Total revenues	$	251,384	$	234,573	$	221,028	$	259,931
Income (loss) before income taxes	35,417		35,588		24,680		4,061
Income tax expense (benefit)	6,923		3,993		5,083		(280)
Net income (loss)	27,524		28,417		19,597		4,341
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	10,671		23,018		4,109		(738)
Net income (loss) attributable to Cowen Inc.	16,853		5,399		15,488		5,079
Preferred stock dividends	1,698		1,698		1,698		1,698
Net income (loss) attributable to Cowen Inc. common stockholders	$	15,155	$	3,701	$	13,790	$	3,381
Earnings (loss) per share:
Basic	$	0.51	$	0.12	$	0.47	$	0.12
Diluted	$	0.50	$	0.12	$	0.45	$	0.11
Weighted average number of common shares:
Basic	29,625		29,769		29,610		29,194
Diluted	30,492		30,720		30,844		30,955

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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
Date:	March 4, 2020	Title:	Chairman of the Board and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities indicated and on the dates indicated.

Signature	Title	Date
/s/ JEFFREY M. SOLOMON	Chairman of the Board and Chief Executive Officer (Principal Executive Officer)
Jeffrey M. Solomon		March 4, 2020
/s/ STEPHEN A. LASOTA	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
Stephen A. Lasota		March 4, 2020
/s/ BRETT H. BARTH
Brett H. Barth	Director	March 4, 2020
/s/ KATHERINE E. DIETZE
Katherine E. Dietze	Director	March 4, 2020
/s/ STEVEN KOTLER
Steven Kotler	Director	March 4, 2020
/s/ LAWRENCE E. LEIBOWITZ
Lawrence E. Leibowitz	Director	March 4, 2020
/s/ JEROME S. MARKOWITZ
Jerome S. Markowitz	Director	March 4, 2020
/s/ JACK H. NUSBAUM
Jack H. Nusbaum	Director	March 4, 2020
/s/ MARGARET L. POSTER
Margaret L. Poster	Director	March 4, 2020
/s/ DOUGLAS A. REDIKER
Douglas A. Rediker	Director	March 4, 2020

EX-4.11

Exhibit 4.11

DESCRIPTION OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO

SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following description of Cowen Inc.’s securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is a summary and does not purport to be complete. It is qualified in its entirety by reference to our amended and restated certificate of incorporation, as amended (our “amended and restated certificate of incorporation”), our second amended and restated by-laws (our “second amended and restated bylaws”), the indenture applicable to each series of our debt securities described below, in each case, which we have previously filed with the Securities and Exchange Commission (the “Commission”), and applicable law.

Cowen Inc. is authorized to issue 135,000,000 shares of common stock, which consists of 62,500,000 shares of Class A common stock, par value $0.01 per share (“Class A common stock”), 62,500,000 shares of Class B common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share (“preferred stock”). As of March 3, 2020, Cowen Inc. had three classes of securities registered pursuant to Section 12 of the Exchange Act:

•Class A common stock, of which 28,656,136 shares were outstanding as of March 3, 2020.

•7.35% Senior Notes Due 2027 (the “2027 Notes”).

•7.75% Senior Notes Due 2033 (the “2033 Notes” and, together with the 2027 Notes, the “Notes”).

Exhibit 4.11

DESCRIPTION OF COMMON STOCK

References to “we,” “us,” “our,” “Cowen”, “our company” and the “Company” in this section are to Cowen Inc. and its subsidiaries, unless we specify otherwise or the context indicates otherwise.

Authorized Capital Stock

Cowen Inc. is authorized to issue 135,000,000 shares of common stock, which consists of 62,500,000 shares of Class A common stock, par value $0.01 per share (referred to herein as our Class A common stock), 62,500,000 shares of Class B common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share (referred to herein as our preferred stock). Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of common stock or 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.

Class A Common Stock

Voting Rights

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 our amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of preferred stock, if holders of preferred stock are entitled to vote on the amendment under our amended and restated certificate of incorporation or Delaware law. No holder of Class A common stock may cumulate votes in voting for our directors.

Stockholders may only take action at an annual or special meeting of stockholders and are not authorized to take action by written consent or electronic transmission.

Dividend Rights

Subject to the preferences of the holders of preferred stock that may be outstanding from time to time, each share of Class A common stock has an equal and ratable right to receive dividends and other distributions in cash, property or shares of stock as may be declared by our board of directors out of assets or funds legally available for the payment of dividends and other distributions. There is no requirement or assurance that we will declare and pay any dividend.

Subject to certain limited exceptions, unless all accumulated and unpaid dividends for all prior dividend periods on our 5.625% Series A Cumulative Perpetual Convertible Preferred Stock (our “Series A Preferred Stock”) have been, or contemporaneously are declared and paid in cash, or declared and a sum sufficient for the payment thereof in cash is set apart for payment, the Company may not, among other things, declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of our Class A common stock. If dividends on our Series A Convertible Preferred Stock are in arrears and unpaid for at least six or more quarterly periods, the holders (voting as a single class) of our outstanding Series A Convertible Preferred Stock will be entitled to elect two additional directors to our board of directors until paid in full.

Liquidation Rights

In the event of the liquidation, dissolution or winding up of the Company, subject to the preferences of the holders of any preferred stock that may be outstanding from time to time, including the preferences of our outstanding Series A Preferred Stock, holders of Class A common stock are entitled to share equally and ratably in the assets available for distribution to our stockholders.

Redemption and Sinking Fund

There are no redemption or sinking fund provisions applicable to the Class A common stock.

Exchange Listing

Our Class A common stock is listed on the NASDAQ Global Market under the symbol “COWN.”

Exhibit 4.11

Transfer Agent and Registrar

The transfer agent and registrar for our Class A common stock is Computershare Investor Services.

Antitakeover Effects of Delaware Law and Our Amended and Restated Certificate of Incorporation and Second Amended and Restated Bylaws

Our amended and restated certificate of incorporation and our second amended and restated bylaws contain provisions, which are summarized below, that may make it more difficult for a third party to acquire control of the Company, even if such acquisition would be financially beneficial to the Company’s stockholders. These provisions may also delay, prevent or deter a merger, acquisition, tender offer, proxy contest or other transaction that might otherwise result in the Company’s stockholders receiving a premium over the then-current trading price of our Class A common stock. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they also give our board of directors the power to discourage acquisitions that some stockholders may favor.

Undesignated Preferred Stock

The ability to authorize undesignated preferred stock makes it possible for our board of directors to issue preferred stock with super voting, special approval, dividend or other rights or preferences on a discriminatory basis that could impede the success of any attempt to acquire us. Stockholder approval is not required for our board of directors to authorize the issuance of such preferred stock. These and other provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our company.

Requirements for Advance Notification of Stockholder Meetings, Nominations and Proposals

Our amended and restated certificate of incorporation and second amended and restated bylaws provide that special meetings of the stockholders may be called at the exclusive request of our board of directors, of the chairman of our board of directors or the Company’s chief executive officer. Our amended and restated certificate of incorporation and second amended and restated bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting at the exclusive request of our board of directors, of the chairman of our board of directors or the Company’s chief executive officer. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our company.

Our second amended and restated bylaws has established advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be “properly brought” before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Additionally, vacancies and newly created directorships may be filled only by a vote of a majority of the directors then in office, even though less than a quorum, and not by the stockholders. Our second amended and restated bylaws allow the presiding officer at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquiror from conducting a solicitation of proxies to elect the acquiror’s own slate of directors or otherwise attempting to obtain control of our company.

Stockholder Action by Written Consent

Pursuant to Section 228 of the Delaware General Corporation Law, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of our stock entitled to vote thereon were present and voted, unless our amended and restated certificate of incorporation provides otherwise. Our amended and restated certificate of incorporation provides that any action required or permitted to be taken by our stockholders may be effected at a duly called annual or special meeting of our stockholders and may not be effected by consent in writing or electronic transmission by such stockholders.

Exhibit 4.11

DESCRIPTION OF NOTES

References to “we,” “us,” “our,” “Cowen” and the “Company” in this section are only to Cowen Inc. and not to its subsidiaries, unless we specify otherwise or the context indicates otherwise. For the definition of certain capitalized terms used in this section, see “—Certain Definitions” below.

General

Each series of Notes was issued under an indenture dated as of October 10, 2014 (the “Base Indenture”), between us and The Bank of New York Mellon, as trustee (the “Trustee”), as amended and supplemented by, in the case of the 2027 Notes, a second supplemental indenture, dated as of December 8, 2017 (the “Second Supplemental Indenture”), and, in the case of the 2033 Notes, a third supplemental indenture dated as of June 11, 2018 (the “Third Supplemental Indenture” and, together with the Base Indenture and the Second Supplemental Indenture, each an “Indenture” and collectively, the “Indentures”), in each case of the Second Supplemental Indenture and the Third Supplemental Indenture, between us and the Trustee . The Notes are each a separate series of our “senior debt securities”.

As of March 3, 2020, we have issued a total of $138,000,000 aggregate principal amount of the 2027 Notes and a total of $100,000,000 aggregate principal amount of the 2033 Notes.

Each Indenture permits us to issue debt securities from time to time in one or more series under such Indenture. We may from time to time, without giving notice to or seeking the consent of the holders of Notes in a series of Notes, issue additional senior debt securities under the Indenture applicable to such series of Notes, which additional Notes will have the same terms (except for the issue date, and, in some cases, the public offering price, the initial interest accrual date, and the first interest payment date) as, and ranking equally and ratably with, such series of Notes (such additional Notes, the “Additional Notes”), provided that such Additional Notes are fungible, for U.S. federal income tax purposes, with the series of Notes to which they are issued as Additional Notes. Any Additional Notes that may be issued will, together with the Notes in the series of Notes to which such Additional Notes are issued, be treated as a single class for all purposes under the applicable Indenture, including with respect to waivers, amendments and redemptions.

The Notes in each series of Notes were sold in denominations of $25.00 and integral multiples of $25.00 in book-entry form only. See “—Book-Entry System; Delivery and Form.”

None of the Indentures contains any provisions that would necessarily protect holders of Notes if we become involved in a highly leveraged transaction, reorganization, merger or other similar transaction that adversely affects us or them.

Maturity

The 2027 Notes mature on December 15, 2027 and the 2033 Notes mature on June 15, 2033.

Interest

Interest on the 2027 Notes began accruing on December 8, 2017 at a rate of 7.35% per year and is payable quarterly in arrears on March 15, June 15, September 15 and December 15 (each, a “2027 Notes Interest Payment Date”). On a 2027 Notes Interest Payment Date, interest is paid to the persons in whose names the 2027 Notes were registered as of the record date, which is the first day of the month preceding the respective 2027 Notes Interest Payment Date (whether or not a business day).

Exhibit 4.11

Interest on the 2033 Notes began accruing on June 11, 2018 at a rate of 7.75% per year and is payable quarterly in arrears on March 15, June 15, September 15 and December 15 (each, a “2033 Notes Interest Payment Date” and, together with the 2027 Notes Interest Payment Date, an “Interest Payment Date”). On a 2033 Notes Interest Payment Date, interest is paid to the persons in whose names the 2033 Notes were registered as of the record date, which is the first day of the month of the respective 2033 Interest Payment Date (whether or not a business day).

The amount of interest payable with respect to the Notes for any period is computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any period shorter than a full quarterly interest period is computed on the basis of the number of days elapsed in a 90-day quarter of three 30-day months. If any Interest Payment Date falls on a Saturday, Sunday, legal holiday in the City of New York or a day on which banking institutions in the City of New York are authorized by law, regulation or executive order to close, then payment of interest is made on the next succeeding business day and no additional interest accrues because of the delayed payment.

Ranking

The Notes are our senior unsecured obligations, and each series of Notes ranks equal in right of payment with the other series of Notes and with all of our current and future senior unsecured obligations. Because the Notes are unsecured, the Notes also effectively rank junior in right of payment to any secured indebtedness that we have outstanding to the extent of the value of the assets securing such indebtedness.

The Notes are not guaranteed by any of our subsidiaries. As a result, the Notes effectively rank junior in right of payment to all existing and future indebtedness and other liabilities (including trade payables and leases) of our subsidiaries. Substantially all of our operations are conducted through our subsidiaries. Our subsidiaries are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any amounts due with respect to the Notes or to make any funds available therefor, whether by dividends, loans or other payments. In addition, the payment of dividends and the making of loans and advances to us by our subsidiaries may be subject to statutory, contractual or other restrictions, may depend on the earnings or financial condition of our subsidiaries and are subject to various business considerations. As a result, we may be unable to gain significant, if any, access to the cash flow or assets of our subsidiaries. In addition, our right to receive any assets of any of our subsidiaries upon their liquidation or reorganization, and, therefore, the right of the holders of any Notes to participate in those assets is subject to prior claims of creditors of the subsidiary.

No Indenture limits the amount of additional indebtedness, including senior or secured indebtedness, which we can create, incur, assume or guarantee, and no Indenture limits the amount of indebtedness or other liabilities that our subsidiaries can create, incur, assume or guarantee.

Listing

Each series of Notes is listed on the Nasdaq Global Select Market.

Trading Characteristics

The trading price of the Notes reflects the value, if any, of accrued and unpaid interest on such Notes. This means that purchasers do not pay, and sellers do not receive, accrued and unpaid interest on such Notes that is not included in their trading price. Any portion of the trading price of such Notes that is attributable to accrued and unpaid interest is treated as a payment of interest for U.S. federal income tax purposes and is not treated as part of the amount realized for purposes of determining gain or loss on the disposition of such Notes.

Exhibit 4.11

Optional Redemption

We may, at our option, at any time and from time to time, on or after December 15, 2020, redeem the 2027 Notes, and, on or after June 15, 2023, redeem the 2033 Notes. Each series of Notes may be redeemed in whole or in part on not less than 30 nor more than 60 days’ prior notice to the holders of such Notes. The Notes in each series of Notes are redeemable at a redemption price equal to 100% of the principal amount of such Notes to be redeemed plus accrued and unpaid interest to, but not including, the date of redemption of such Notes.

On and after the redemption date for any Notes to be redeemed, interest will cease to accrue on such Notes. On or prior to the redemption date of such Notes to be redeemed, we are required to deposit with a paying agent money sufficient to pay the redemption price of and accrued interest on such Notes to be redeemed on such date. If we are redeeming less than all of the Notes in a series of Notes, such Notes to be redeemed will be selected in accordance with the procedures of the Depositary.

Mandatory Redemption; Open Market and Other Purchases

With respect to each series of Notes, the Company is not required to repurchase any of the Notes in such series of Notes or make any mandatory redemption or sinking fund payments with respect to such Notes. The Company or any affiliate of the Company may at any time and from time to time acquire such Notes by means other than a redemption, whether by tender offer, purchases in the open market, negotiated transactions or otherwise, in accordance with applicable securities laws. Such Notes may, at the option of the Company or the relevant affiliate of the Company, be held, resold, or surrendered to the trustee for cancellation. With respect to each series of Notes, in determining whether the holders of the requisite principal amount of outstanding Notes of such series of Notes have consented to or voted in favor of any request, direction, notice, waiver, amendment or modification under the applicable Indenture, any Notes of such series of Notes that a trust officer of the Trustee actually knows to be held by the Company or an affiliate of the Company shall not be considered outstanding

Certain Covenants

The following covenants apply to the Notes:

Reports to Holders

With respect to each series of Notes, whether or not required by the rules and regulations of the Commission, so long as any Notes of such series of Notes are outstanding, the Company will furnish the Trustee, for delivery to the holders of such Notes upon their written request therefor:

(1)

all quarterly and annual financial information that would be required to be contained in a filing with the Commission on Forms 10-Q and 10-K if the Company were required to file such Forms, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” that describes the financial condition and results of operations of the Company and its consolidated Subsidiaries, and, with respect to the annual information only, a report thereon by the Company’s certified independent accountants; and

(2)

all current reports that would be required to be filed with the Commission on Form 8-K if the Company were required to file such reports,

in the case of each of clauses (1) and (2), within 30 days after the Company files the same with the Commission (or if not subject to the periodic reporting requirements of the Exchange Act, within 30 days after it would have been required to file the same with the Commission);provided, that the delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein,

Exhibit 4.11

including the Company’s compliance with any of its covenants under the applicable Indenture (as to which the Trustee is entitled to rely exclusively on officers’ certificates).

In addition, whether or not required by the rules and regulations of the Commission, the Company will file a copy of all such information and reports with the Commission for public availability (unless the Commission will not accept such a filing) and make such information available to securities analysts and prospective investors upon request. To the extent that the Company files such information and reports with the Commission and such information and reports are publicly available via EDGAR on the Commission’s website, then the Company shall not be required to furnish such information and reports to the Trustee for delivery to the holders of the Notes in the applicable series of Notes.

Merger, Consolidation and Sale of Assets

The Company will not, in a single transaction or series of related transactions, consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the Company’s assets whether as an entirety or substantially as an entirety to any Person unless:

(1)	either:
	(a)	the Company is the surviving or continuing corporation; or
	(b)	the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or other disposition the properties and assets of the Company (the “Surviving Entity”):
		(i)	is a corporation organized and validly existing under the laws of the United States or any State thereof or the District of Columbia; and
		(ii)	expressly assumes, by supplemental indenture (in form and substance reasonably satisfactory to the Trustee), executed and delivered to the Trustee, the due and punctual payment of the principal of, and premium, if any, and interest on outstanding Notes and the performance of every covenant applicable to such outstanding Notes and the Indenture applicable thereto on the Company’s part to be performed or observed;
(2)	immediately before and immediately after giving effect to such transaction and the assumption contemplated by clause (1)(b)(ii) above, no default or Event of Default shall have occurred or be continuing; and
(3)	the Company or the Surviving Entity delivers to the Trustee an officers’ certificate and an opinion of counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with the applicable provisions of the applicable Indenture and that all conditions precedent in such Indenture relating to such transaction have been satisfied.

For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or substantially all of the properties or assets of one or more Subsidiaries the Capital Stock of which constitutes all or substantially all of the Company’s properties and assets, shall be deemed to be the transfer of all or substantially all of the Company’s properties and assets.

Upon any consolidation, combination or merger or any transfer of all or substantially all of the Company’s assets in accordance with the foregoing in which the Company is not the continuing corporation, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, lease or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company

Exhibit 4.11

under each Indenture and the series of Notes applicable to such Indenture with the same effect as if such surviving entity had been named as such.

The phrase “all or substantially all” of the assets of the Company will likely be interpreted under applicable state law and will be dependent upon particular facts and circumstances. As a result, there may be a degree of uncertainty in ascertaining whether a sale or transfer of “all or substantially all” of the assets of the Company has occurred.

Amendment, Supplement and Waiver

Except as provided in the next two succeeding paragraphs, each Indenture or series of Notes may be amended or supplemented with the consent of the holders of at least a majority in aggregate principal amount of the then outstanding Notes in such series of Notes (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, such Notes), and any existing default or compliance with any provision of such Indenture or such series of Notes may be waived with the consent of the holders of a majority in aggregate principal amount of the then outstanding Notes in such series of Notes (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, such Notes).

With respect to any series of Notes, without the consent of each holder thereof who is affected, an amendment or waiver may not (with respect to any such Notes held by a non-consenting holder):

(1)	reduce the principal amount of such Notes whose holders must consent to an amendment, supplement or waiver;
(2)	change the stated maturity of the principal of, or any installment of interest on, any such Note;
(3)	reduce the principal amount of, or premium, if any, or interest on, any such Note;
(4)	change the optional redemption price (or the method of calculating the redemption price) of such Notes from those stated above under the caption “—Optional Redemption”;
(5)	waive a default or Event of Default in the payment of principal of, or interest, or premium, if any, on, such Notes (except, upon a rescission of acceleration of such Notes by the holders of at least a majority in aggregate principal amount of the then outstanding Notes in such series of Notes, a waiver of the payment default that resulted from such acceleration) or in respect of any other covenant or provision that cannot be amended or modified without the consent of all holders;
(6)	make any such Note payable in money other than U.S. dollars;
(7)	make any change in the amendment and waiver provisions of the Indenture applicable to such Notes; or
(8)	impair the right to institute suit for the enforcement of any payment on or with respect to such Notes.

Notwithstanding the preceding, with respect to the Notes in any series of Notes, without the consent of any holder thereof, the Company and the Trustee may amend or supplement the applicable Indenture applicable or such Notes themselves:

Exhibit 4.11

(1)	to cure any ambiguity, omission, mistake, defect or inconsistency;
(2)	to provide for uncertificated Notes in addition to or in place of certificated Notes;
(3)	to provide for the assumption of the Company’s obligations to holders of such Notes in accordance with such Indenture in the case of a merger or consolidation or sale of all or substantially all of the Company’s properties or assets;
(4)	to make any change that would provide any additional rights or benefits to the holders of such Notes or that does not materially, in the good faith determination of the Board of Directors of the Company, adversely affect the legal rights under such Indenture of any such holder of such Notes;
(5)	to comply with requirements of the Commission in order to effect or maintain the qualification of such Indenture under the Trust Indenture Act;
(6)	to add covenants for the benefit of the holders of such Notes or to surrender any right or power conferred upon the Company;
(7)	to evidence and provide for the acceptance of appointment by a successor Trustee;
(8)	to comply with the rules of any applicable securities depositary;
(9)	to add a Guarantor of such Notes;
(10)	to secure such Notes;
(11)	to provide for the issuance of Additional Notes in accordance with such Indenture; or
(12)	to conform such Indenture or such Notes to the description thereof set forth under the heading “Description of Notes” contained in the applicable prospectus or prospectus supplement to the extent any provision of such Indenture or such Notes is expressly inconsistent with any provision of such description contained in the applicable prospectus or prospectus supplement.

Events of Default and Remedies

Each of the following is an Event of Default under each Indenture:

Exhibit 4.11

(1)	default for 30 days in the payment when due of interest on the applicable Notes;
(2)	default in payment when due (whether at maturity, upon acceleration, redemption or otherwise) of the principal of, or premium, if any, on the applicable Notes;
(3)	failure by the Company to comply with the provisions described above under the caption “—Certain Covenants—Merger, Consolidation or Sale of Assets;”
(4)	failure by the Company, for 60 days after written notice by the Trustee or holders representing 25% or more of the aggregate principal amount of the then outstanding Notes in the applicable series of Notes, to comply with any of the other covenants or agreements in such Indenture;
(5)	default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for borrowed money by the Company or any of its Significant Subsidiaries (or the payment of which is Guaranteed by the Company or any of its Significant Subsidiaries) other than indebtedness for borrowed money owed to the Company or any of its Significant Subsidiaries, whether such indebtedness for borrowed money or Guarantee existed prior to or was or is created after the Issue Date, if that default:
	(a)	is caused by a failure to make any payment of principal or interest when due at the stated maturity thereof (giving effect to any applicable grace periods and any extensions thereof) of such indebtedness for borrowed money (a “Payment Default”); or
	(b)	results in the acceleration of such indebtedness for borrowed money prior to its express maturity,

and, in each case, the amount of any such indebtedness for borrowed money, together with the amount of any other such indebtedness for borrowed money that is then subject to a Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more in the case of the 2027 Notes, and aggregates $35.0 million or more in the case of the 2033 Notes;

(6)

failure by the Company or any of its Significant Subsidiaries to pay final judgments (to the extent such judgments are not paid or covered by insurance provided by a reputable carrier) aggregating in excess of $25.0 million in the case of the 2027 Notes, and aggregating in excess of $35.0 million in the case of the 2033 Notes, which judgments are not paid, discharged or stayed for a period of 60 days; and

(7)

certain events of bankruptcy or insolvency with respect to the Company or any of its Significant Subsidiaries.

Under each Indenture, in the case of an Event of Default described in clause (7) above, all of the then outstanding Notes in the applicable series of Notes will become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the holders of at least 25% in principal amount of the then outstanding Notes in such series of Notes may declare all such Notes to be due and payable immediately by notice in writing to the Company specifying the Event of Default.

Notwithstanding the paragraph above, for the first 365 days immediately following an Event of Default relating to (i) our failure to file with the Trustee any documents or reports that we are required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act or (ii) our failure to comply with our reporting obligations to the Trustee set forth under the caption “—Certain Covenants—Reports to Holders” above, the sole remedy for any such Event of Default shall be the accrual of additional interest on the Notes in the applicable series of Notes at a rate per year equal to (i) 0.25% of the outstanding principal amount of such Notes for the first 180 days following the occurrence of such Event of Default and (ii) 0.50% of the outstanding principal amount of such Notes for the next 180 days after the first 180 days following the occurrence of such Event of Default, in each case, payable quarterly at the same time and in the same manner as regular interest on such Notes. This additional interest will accrue on all outstanding Notes in such series of Notes from, and including the date on which such Event of

Exhibit 4.11

Default first occurs to, and including, the 365th day thereafter (or such earlier date on which such Event of Default shall have been cured or waived). In addition to the accrual of such additional interest, on and after the 360th day immediately following an Event of Default relating to such reporting obligations, either the Trustee or the holders of at least 25% in aggregate principal amount of outstanding Notes in such series of Notes may declare the principal amount of such Notes and any accrued and unpaid interest through the date of such declaration, to be immediately due and payable.

With respect to each series of Notes and the Indentures applicable to such series of Notes, holders of such Notes may not enforce such Indenture or such Notes except as provided in such Indenture. Subject to certain limitations, holders of a majority in aggregate principal amount of the then outstanding Notes in such series of Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of such Notes notice of any default or Event of Default (except a default or Event of Default relating to the payment of principal or interest) if it determines that withholding notice is in their interest.

With respect to the Notes in each series of Notes and the Indentures applicable to such series of Notes, the holders of a majority in aggregate principal amount of the then outstanding Notes in such series of Notes may, by notice to the Trustee on behalf of the holders thereof, waive any existing default or Event of Default and its consequences under such Indenture, except a continuing default or Event of Default in the payment of premium, interest or the principal of, such Notes or a default or Event of Default in respect of a provision that under such Indenture cannot be amended without the consent of each affected holder of such Notes, and may rescind any related acceleration of such Notes if such rescission would not conflict with any judgment or decree of any court of competent jurisdiction and other conditions set forth in such Indenture are satisfied. The holders of a majority in aggregate principal amount of the then outstanding Notes in such series of Notes will have the right to direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or the applicable Indenture, that may involve the Trustee in personal liability, or that the Trustee determines in good faith may be unduly prejudicial to the rights of holders of such Notes not joining in the giving of such direction and may take any other action it deems proper that is not inconsistent with any such direction received from holders of such Notes.

With respect to the Notes in each series of Notes, a holder of such Notes may not pursue any remedy with respect to the applicable Indenture or such Notes unless:

(1)	the holder of such Notes gives the Trustee written notice of a continuing Event of Default;
(2)	the holders of at least 25% in aggregate principal amount of outstanding Notes in such series of Notes make a written request to the Trustee to pursue the remedy;
(3)	such holder or holders of such Notes offer the Trustee indemnity reasonably satisfactory to the Trustee against any costs, liability or expense;
(4)	the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and
(5)	during such 60-day period, the holders of a majority in aggregate principal amount of the outstanding Notes in such series of Notes do not give the Trustee a direction that is inconsistent with the request.

However, such limitations do not apply to the right of any holder of a Note in such series of Notes to receive payment of the principal of, premium or interest on, such Note or to bring suit for the enforcement of any such payment, on or after the due date expressed in such Notes, which right will not be impaired or affected without the consent of the holder of such Note.

Exhibit 4.11

Under each Indenture, the Company is required to deliver to the Trustee annually within 120 days after the end of each fiscal year a statement regarding compliance with such Indenture. Within 10 business days after our becoming aware of the occurrence of any default or Event of Default, the Company is required to deliver to the Trustee a statement specifying such default or Event of Default.

Legal Defeasance and Covenant Defeasance

With respect to each Indenture and the Notes governed thereby, such Indenture provides that, at its option, the Company:

• will be discharged from any and all obligations in respect of such Notes, except for certain obligations set forth in such Indenture that survive such discharge (“legal defeasance”); or

• may terminate their obligations under certain restrictive covenants of such Indenture, and the occurrence of an event described in clause (3) or (4) under “—Events of Default” with respect to any such covenants or in clause (5), (6) or (7) (other than in the case of clause (7) with respect to the Company) under “—Events of Default” will no longer be an event of default (“covenant defeasance”);

in each case, if

Exhibit 4.11

(1)	the Company irrevocably deposits with the Trustee, in trust, specifically pledged as security for, and dedicated solely to, the benefit of the holders of such Notes, (i) cash in U.S. dollars, (ii) non-callable U.S. government securities or (iii) a combination thereof, in each case in an amount sufficient, in the opinion of a nationally-recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay when due the principal, premium, if any, and interest to maturity or to the redemption date, as the case may be, with respect to such Notes then outstanding, and any mandatory sinking fund payments or similar payments or payment pursuant to any call for redemption applicable to such Notes on the day on which such payments are due and payable in accordance with the terms of such Indenture and such Notes;
(2)	no default or Event of Default shall have occurred and be continuing on the date of the deposit or insofar as an Event of Default resulting from certain events involving our bankruptcy or insolvency are concerned, at any time during the period ending on the 91st day after the date of the deposit or, if longer, ending on the day following the expiration date of the longest preference period applicable to the Company in respect of the deposit (and this condition will not be deemed satisfied until the expiration of such period);
(3)	the defeasance will not cause the Trustee to have any conflicting interest with respect to any of securities of the Company or result in the trust arising from the deposit to constitute, unless it is qualified as, a regulated investment company under the Investment Company Act of 1940, as amended;
(4)	the defeasance will not result in a default or Event of Default under such Indenture with respect to such Notes (other than a default or Event of Default resulting from the borrowing of funds to be applied to such deposit) and the deposit will not result in a breach or violation of, or constitute a default under, any other material agreement or instrument to which the Company or any Significant Subsidiary is a party or by which the Company or any Significant Subsidiary is bound;
(5)	the Company shall have delivered an opinion of counsel to the effect that the holders of such Notes will not recognize income, gain or loss for federal income tax purposes as a result of the defeasance and will be subject to federal income tax in the same manner as if the defeasance had not occurred, which opinion of counsel, in the case of legal defeasance, must refer to and be based upon a published ruling of the Internal Revenue Service, a private ruling of the Internal Revenue Service addressed to us, or otherwise a change in applicable federal income tax law occurring after the date of such Indenture; and
(6)	the Company shall have delivered an officers’ certificate and an opinion of counsel stating that the conditions to such defeasance set forth in such Indenture have been complied with.

If the Company fails to comply with its remaining obligations under such Indenture after a covenant defeasance with respect to such Notes and such Notes are declared due and payable because of the occurrence of any Event of Default, the amount of money and government obligations on deposit with the Trustee may be insufficient to pay amounts due on such Notes at the time of the acceleration resulting from the Event of Default. We will, however, remain liable for those payments.

Satisfaction and Discharge

With respect to each Indenture, such Indenture will be discharged and will cease to be of further effect (except as to surviving rights of registration of transfer or exchange of any applicable Notes, as expressly provided for in such Indenture) as to all outstanding Notes in the applicable series of Notes when:

Exhibit 4.11

(1)	either (a) all of such Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid and Notes for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company) have been delivered to the Trustee for cancellation or (b) all of such Notes (i) have become due and payable, (ii) will become due and payable at their stated maturity within one year or (iii) if redeemable at the Company’s option, are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, and the Company shall have irrevocably deposited or caused to be deposited with the Trustee lawful money, direct or guaranteed government obligations, or a combination thereof, of the nature and in the amounts described above under the caption “—Legal Defeasance and Covenant Defeasance” in an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest on such Notes to the date of deposit together with irrevocable instructions from us directing the Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be;
(2)	no default or Event of Default under such Indenture with respect to such Notes shall have occurred and be continuing (other than a default or Event of Default resulting from the borrowing of funds to be applied to such deposit) and the deposit will not result in a breach or violation of, or constitute a default under, any other material agreement or instrument to which the Company or any Significant Subsidiary is a party or by which the Company or any Significant Subsidiary is bound;
(3)	the Company shall have paid all other sums payable under such Indenture in respect of such Notes; and
(4)	the Company shall have delivered to the Trustee an officers’ certificate and an opinion of counsel stating that all conditions precedent under such Indenture relating to the satisfaction and discharge of such Indenture with respect to such Notes have been complied with.

No Personal Liability of Directors, Officers, Employees and Stockholders

No director, officer, employee, incorporator, stockholder, member, manager or partner of the Company, as such, has any liability for any obligations of the Company under any series of Notes or the Indenture applicable to any series of Notes or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each holder of a Note, by accepting such Note, waived and released all such liability. Such waiver and release were part of the consideration for issuance of such Note. The waiver may not be effective to waive liabilities under the federal securities laws.

Concerning the Trustee

If the Trustee becomes a creditor of the Company, each Indenture and the Trust Indenture Act limit its right to obtain payment of claims in certain cases, or to realize on certain property received in respect of any such claim as security or otherwise. The Trustee will be permitted to engage in other transactions; however, if it acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the Commission for permission to continue or resign.

Each Indenture provides that in case an Event of Default will occur and be continuing thereunder, the Trustee will be required, in the exercise of its power, to use the degree of care of a prudent man in the conduct of his own affairs. Subject to such provisions, the Trustee will be under no obligation to exercise any of its rights or powers under such Indenture at the request of any holder of Notes applicable to such Indenture, unless the holder of such Notes will have offered to the Trustee security and indemnity satisfactory to it against any loss, liability or expense.

Exhibit 4.11

Book-Entry System; Delivery and Form

The Notes in each series of Notes were issued only in book-entry form through the facilities of The Depository Trust Company (the “Depositary”) and are in denominations of $25.00 and integral multiples of $25.00 in excess thereof. The Notes in each series of Notes are represented by a Global Security (the “Global Security”) and are registered in the name of a nominee of the Depositary.

The Depositary advised the Company that it is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of section 17A of the Exchange Act. The Depositary holds securities that its participants deposit with the Depositary. The Depositary also facilitates the settlement among its participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in its participants’ accounts, thereby eliminating the need for physical movement of securities. The Depositary’s participants include securities brokers and dealers (including the underwriters), banks, trust companies, clearing corporations, and certain other organizations. The Depositary is owned by The Depository Trust & Clearing Corporation, which is owned by the users of its regulated subsidiaries. Access to the Depositary’s system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a participant, either directly or indirectly. Persons who are not participants may beneficially own securities held by the Depositary only through participants. The rules applicable to the Depositary and its participants are on file with the Commission.

Upon the issuance of a Global Security for each series of Notes, the Depositary credited its participants’ accounts on its book-entry registration and transfer system with their respective principal amounts of such Notes represented by such Global Security. The underwriters designated which participants’ accounts were to be credited. The only persons who may own beneficial interests in such Global Security are the Depositary’s participants or persons that hold interests through such participants. Ownership of beneficial interests in such Global Security is shown on, and the transfer of that ownership is effected only through, records maintained by the Depositary or its nominee (with respect to interests of its participants), and on the records of its participants (with respect to interests of persons other than such participants). The laws of some jurisdictions may require that some purchasers of securities take physical delivery of those securities in definitive form. These limits and laws may impair your ability to pledge your interest in the Notes represented by such Global Security.

With respect to the Notes in any series of Notes, so long as the Depositary or its nominee is the registered owner of the Global Security representing such Notes, the Depositary or its nominee is considered the sole owner or holder of such Notes represented by such Global Security for all purposes under such Notes and the applicable Indenture. Except as provided below or as the Company may otherwise agree in its sole discretion, owners of beneficial interests in a Global Security are not entitled to have the applicable Notes represented by such Global Security registered in their names, do not receive nor are entitled to receive physical delivery of such Notes in definitive form and are not considered the owners or holders thereof under the applicable Indenture. Accordingly, each person owning a beneficial interest in a Global Security relies on the procedures of the Depositary and, if that person is not a participant, on the procedures of the participant through which that person owns its interest, to exercise any rights of a holder under the applicable Indenture.

Principal and interest payments on any Notes registered in the name of the Depositary or its nominee are made to the Depositary or its nominee, as the case may be, as the registered owner of the Global Security representing such Notes. None of the Company, the Trustee, any paying agent or the registrar for such Notes has any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial interests in such Global Security representing such Notes or for maintaining, supervising or reviewing any records relating to such beneficial interests.

Exhibit 4.11

With respect to the Notes in each series of Notes and the Global Security representing such Notes, the Depositary of such Notes, or its nominee, upon receipt of any payment of principal or interest, credited immediately its participants’ accounts with payments in amounts proportionate to their respective beneficial interests in the principal amount of such Global Security representing such Notes as shown on the records of the Depositary or its nominee. Payments by such participants to owners of beneficial interests in such Global Security held through such participants are governed by standing instructions and customary practices. These payments are the responsibility of the participants. Such Global Security may not be transferred except as a whole to the Depositary, to another nominee of the Depositary or to a successor Depositary selected or approved by the Company or to a nominee of that successor Depositary. Such Global Security is exchangeable for the applicable definitive Notes in registered form in authorized denominations only if:

• the Depositary notifies the Company that it is unwilling or unable to continue as Depositary and a successor Depositary is not appointed by the Company within 90 days;

• the Depositary ceases to be a clearing agency registered or in good standing under the Exchange Act, or other applicable statute or regulation and a successor corporation is not appointed by the Company within 90 days; or

• the Company, in its sole discretion and subject to the procedures of the Depositary, determines not to require that all of such Notes be represented by a Global Security.

Governing Law

New York law governs each Indenture and the Notes in each series of Notes without regard to conflicts of laws principles thereof. 

Certain Definitions

Set forth below are certain defined terms used in each Indenture. Reference is made to each Indenture for a full description of all such terms, as well as any other capitalized terms used herein for which no definition is provided.

“Board of Directors” means:

(1)	with respect to a corporation, the board of directors of the corporation or a duly authorized committee thereof;
(2)	with respect to a partnership, the board of directors of the general partner of the partnership; and
(3)	with respect to any other Person, the board or committee of such Person serving a similar function.

“Capital Stock” means:

(1)	in the case of a corporation, corporate stock;
(2)	in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;
(3)	in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and
(4)	any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

Exhibit 4.11

“GAAP” means generally accepted accounting principles in the United States, which are in effect from time to time.

“Guarantee” means, as to any Person, a guarantee, direct or indirect, in any manner, including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any indebtedness for borrowed money of another Person, but excluding endorsements for collection or deposit in the normal course of business.

“Guarantor” means any Subsidiary of the Company that fully and unconditionally Guarantees the payment of principal of, premium, if any, and accrued and unpaid interest on the applicable Notes by executing and delivering to the Trustee a supplemental indenture, until such time as such Subsidiary is released from its applicable Note Guarantee.

“Issue Date” means the first date that the Notes are issued under the applicable Indenture.

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder from time to time.

“Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the date of the Indenture.

“Subsidiary” means, with respect to any Person:

(1)

a corporation a majority of whose Voting Stock is at the time owned or controlled, directly or indirectly, by such Person, one or more Subsidiaries thereof or such Person and one or more Subsidiaries thereof; and

(2)

any other Person (other than a corporation), including, without limitation, a partnership, limited liability company, business trust or joint venture, in which such Person, one or more Subsidiaries thereof or such Person and one or more Subsidiaries thereof, directly or indirectly, at the date of determination thereof, has at least majority ownership interest entitled to vote in the election of directors, managers or trustees thereof (or other Person performing similar functions).

“Voting Stock” of any Person as of any date means the Capital Stock of such Person that is ordinarily entitled to vote in the election of the Board of Directors of such Person.

EX-10.22

Exhibit 10.22

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 19, 2020 (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. 2010 Equity and Incentive Plan, as amended from time to time (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

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Exhibit 10.22

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 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 December 1, 2020; (ii) twelve and one half percent (12.5%) on September 1, 2021; (iii) twenty-five percent (25%) on September 1, 2022; (iv) twenty-five percent (25%) on September 1, 2023; (v) twenty-five percent (25%) on September 1, 2024; and the Deferred Cash will vest as follows: (vi) twelve and one half percent (12.5%) on November 15, 2020; (vii) twelve and one half percent (12.5%) on August 15, 2021; (viii) twenty-five percent (25%) on August 15, 2022; (ix) twenty-five percent (25%) on August 15, 2023; and (x) twenty-five percent (25%) on August 15, 2024 (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

2

Exhibit 10.22

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 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

3

Exhibit 10.22

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, 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.

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Exhibit 10.22

(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 Company, LLC, Cowen Prime Services LLC, ATM Execution LLC, Cowen Execution Services LLC, Westminster Research Associates, Cowen Execution International, 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; 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.

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Exhibit 10.22

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:

Corporate Title	Front Office	Business Operations/ Shared Services
Managing Director	4 months	2 months
Director	3 months	45 days
Investment Banking - Vice President, Associate and Analyst Equities - Vice President, Associate and Analyst Equity Research – Vice President and Associate Business Operations – Vice President, Assistant Vice President, Associate and Analyst All other titles (less senior than Director) not otherwise listed on this chart	2 months	1 month

Examples of Front Office include positions within Investment Management, Investment Banking, Equities, Sales and Trading, Research, Algorithmic Trading, Electronic Trading, Credit, Cowen Prime Services, Cowen Execution Services or positions in any other revenue generating Affiliates. Business Operations and Shared Services positions include areas such as Information Technology, Operations, Finance, Human Resources, Accounting and Legal and Compliance. 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

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Exhibit 10.22

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.

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

7

Exhibit 10.22

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 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

8

Exhibit 10.22

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; 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

9

Exhibit 10.22

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.

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). 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

10

Exhibit 10.22

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.

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 thirty (30) 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

11

Exhibit 10.22

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.

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.

12

Exhibit 10.22

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

13

EX-21.1

Exhibit 21.1

List of Subsidiaries of Cowen, Inc.

(as of December 31, 2019)

Name of Subsidiary	Jurisdiction
8995 Collins LLC	Delaware
Algo Trading Management Inc.	New Jersey
Algorithmic Trading Management, LLC	Delaware
ATM Execution LLC	New York
BNS Co-Investment LLC	Delaware
CHI EF II LP	Delaware
CHI EF III LP	Delaware
CHI II Aggregator LLC	Delaware
Cowen AB Investment LLC	Delaware
Cowen AC Corp.	Delaware
Cowen AC II Corp.	Delaware
Cowen AC III Corp.	Delaware
Cowen Advisors LLC	Delaware
Cowen Alternative Investments, LLC	Delaware
Cowen and Company (Asia) Limited	Hong Kong
Cowen and Company, LLC	Delaware
Cowen Asia Limited	Hong Kong
Cowen AT Investments LLC	Delaware
Cowen Auto LLC	Delaware
Cowen AW Investments LLC	Delaware
Cowen Capital Partners II, LLC	Delaware
Cowen CV Acquisition LLC	Delaware
Cowen DAVE LLC	Delaware
Cowen Energy Opportunities LLC	Delaware
Cowen Eolia LLC	Delaware
Cowen Execution Holdco LLC	Delaware
Cowen Execution Services Limited	England
Cowen Execution Services LLC	Delaware
Cowen Finance Company LLC	Delaware
Cowen Finance Holdings LLC	Delaware
Cowen Financial Products LLC	Delaware
Cowen Financial Technology LLC	Delaware
Cowen Healthcare Investments II GP LLC	Delaware
Cowen Healthcare Investments II LP	Delaware
Cowen Healthcare Investments III GP LLC	Delaware
Cowen Healthcare Investments III LP	Delaware
Cowen Holdings, Inc.	Delaware
Cowen International (Luxembourg) S.a.r.l	Luxembourg
Cowen International Limited	England and Wales
Cowen Investment Advisors LLC	Delaware
Cowen Investment II LLC	Delaware
Cowen Investment Management LLC	Delaware

Exhibit 21.1

List of Subsidiaries of Cowen, Inc.

(as of December 31, 2019)

(continued)

Name of Subsidiary	Jurisdiction
Cowen Investments LLC	Delaware
Cowen Lagunita Investment LLC	Delaware
Cowen Latitude Capital Group, LLC	Delaware
Cowen OJ Investment LLC	Delaware
Cowen Overseas Investment LP	Cayman Islands
Cowen PB Holdings LLC	Delaware
Cowen Prime Services LLC	Delaware
Cowen Prime Services Trading LLC	California
Cowen Private Investments GP LLC	Delaware
Cowen Private Investments LP	Delaware
Cowen QN Acquisition LLC	Delaware
Cowen Services Company, LLC	Delaware
Cowen Special Investments LLC	Delaware
Cowen Structured Holdings Inc.	Delaware
Cowen Structured Holdings LLC	Delaware
Cowen Structured Products Specialists, LLC	Delaware
Cowen Sustainable Advisors LLC	Delaware
Cowen Sustainable Investments Offshore I LP	Cayman Islands
Cowen Trading Strategies LLC	Delaware
CSI GP I LLC	Delaware
CSI I Intermediate (Cayman) LP	Cayman Islands
CSI I Master Fund B LP	Cayman Islands
CSI Intermediate (US) LP	Delaware
CSI Master Fund LP	Cayman Islands
CSI Phoenix Holdco LLC	Delaware
Erdos Capital GP LLC	Delaware
Erdos Capital LP	Delaware
Erdos Capital Partners LLC	Delaware
FDM Co-Investment LLC	Delaware
GB Co Investment-LLC	Delaware
GLA Co-Investment LLC	Delaware
Healthcare Royalty GP IV, LLC	Delaware
Healthcare Royalty Management, LLC	Delaware
Healthcare Royalty Partners IV, L.P.	Delaware
Hollenfels Re SA	Luxembourg
Kyber Aesthetic Data LLC	Delaware
Kyber Data Science LLC	Delaware
Kyber Data Sub LLC	Delaware
Kyber Health Data LLC	Delaware
Kyber Survey Data LLC	Delaware
Margate Capital Partners Fund LP	Delaware
Margate Capital Partners Fund Ltd	Delaware
Margate Capital Partners Master Fund Ltd	Delaware

Exhibit 21.1

List of Subsidiaries of Cowen, Inc.

(as of December 31, 2019)

(continued)

Name of Subsidiary	Jurisdiction
Morish Insurance Company	New York
NS Co-Investment LLC	Delaware
October LLC	Delaware
PFC Acquisition Corp	Delaware
PFC Associates LLC	Delaware
PFC Intermediate Corp.	Delaware
PFC Parent Corp	Delaware
PX Co-Investment LLC	Delaware
Quarton International AG	Germany
Quarton International AG	Switzerland
Quarton International Europe AG	Switzerland
Ramius Enterprise Investments Gibraltar Ltd	Gibraltar
Ramius Enterprise Luxembourg Holdco II SARL	Luxembourg
Ramius Enterprise Luxembourg Holdco SARL	Luxembourg
Ramius Enterprise Master Fund Ltd	Cayman Islands
Ramius Gibraltar Solution LLC	Delaware
Ramius Merger Fund LLC	Delaware
Ramius Optimum Investments LLC	Delaware
Ramius UK Limited	England
Ramius V&O Holdings LLC	Delaware
RCG Endeavor LLC	Delaware
RCG Insurance Company	New York
RCG IO Equity S.a.r.l.	Luxembourg
RCG IO Renergys S.a.r.l	Luxembourg
RCG Linkem II LLC	Delaware
RCG Linkem LLC	Delaware
RCG LV Pearl LLC	Delaware
RCG MFI Peachers Mills, LLC	Delaware
RCG RE Manager LLC	Delaware
RCG Re S.a.r.l.	Luxembourg
RCG Renergys LLC	Delaware
RLS Co-Investment LLC	Delaware
SG Co-Investment LLC	Delaware
Silver Strike Capital Inc.	British Columbia
Surfside Lender LLC	Delaware
Tomahawk SA LLC	Delaware
Tramz Loan Partners, LLC	Delaware
TriArtisan Capital Advisors LLC	Delaware
TriArtisan ES MM LLC	Delaware
TriArtisan ES Partners LLC	Delaware
TriArtisan Orlando MM LLC	Delaware
TriArtisan Orlando Partners LLC	Delaware
TriArtisan PFC MM LLC	Delaware
TriArtisan PFC Partners LLC	Delaware

Exhibit 21.1

List of Subsidiaries of Cowen, Inc.

(as of December 31, 2019)

(continued)

Name of Subsidiary	Jurisdiction
TriArtisan TGIF MM LLC	Delaware
TriArtisan TGIF Partners LLC	Delaware
Vianden RCG Re SCA	Luxembourg
Westminster Research Associates LLC	Delaware

The foregoing does not constitute a complete list of all subsidiaries of the registrant. The subsidiaries that have been omitted do not, if considered in the aggregate as a single subsidiary, constitute a “Significant Subsidiary” as defined by the SEC.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors

Cowen Inc.:

        We consent to the incorporation by reference in the registration statement (No. 333-225167, No. 333-221496, No. 333-197513, No. 333-177492, and No. 333-170591) on Form S-3 and (No. 333-230135, No. 333-223490, No. 333-216440, No. No. 333-209939, No. 333-202529, No. 333-194520, No. 333-187355, No. 333-180046, No. 333-174283, No. 333-167360 and No. 333-162785) on Form S-8 of Cowen Inc. of our report dated March 4, 2020, with respect to the consolidated statements of financial condition of Cowen Inc. as of December 31, 2019 and 2018, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for the years then ended, and the related notes, and the effectiveness of internal control over financial reporting as of December 31, 2019, which report appears in the December 31, 2019 Form 10-K of Cowen Inc.

/s/ KPMG

New York, New York

March 4, 2020

EX-31.1

Exhibit 31.1

Certification

I, Jeffrey M. Solomon, certify that:

1.  I have reviewed this Annual Report on Form 10-K 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:	March 4, 2020	/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 Annual Report on Form 10-K 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:	March 4, 2020	/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 Annual Report of Cowen Inc. (the "Company") on Form 10-K for the year ended December 31, 2019, 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:	March 4, 2020	/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

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2019

Other Assets [Abstract]

Schedule of Other Assets [Table Text Block]

	As of December 31,
	2019		2018
	(dollars in thousands)
Prepaid expenses	$	9,957	$	11,989
Reinsurance business receivables (b)	14,688		18,167
Tax receivables	8,464		7,029
Interest and dividends receivable	1,944		2,413
Deferred acquisition costs (b)	4,808		4,696
The Military Mutual loan (a)	27,459		21,504
Other (c)	16,838		13,216
	$	84,158	$	79,014

(a) The terms of the loan were revised as of December 31, 2019 to a maturity date of December 2029 and interest rate of 3%, related to the Company's commercial reinsurance activities.

(b) Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

(c) As of December 31, 2019 and 2018, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.5 million and$4.9 million, respectively.

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Fair Value Measurements for Operating Entities and Consolidated Funds (Tables)

12 Months Ended

Dec. 31, 2019

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 consolidated statements of financial condition by caption and by level within the valuation hierarchy as of December 31, 2019 and 2018:

	Assets at Fair Value as of December 31, 2019
	Level 1			Level 2			Level 3			Total
				(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	15,916		$	—		$	—		$	15,916
Preferred stock	4,821			—			7,835			12,656
Common stock	1,527,769			1,249			17,466			1,546,484
Convertible bonds	—			—			2,500			2,500
Corporate bonds	—			23,079			2,421			25,500
Trade claims	—			—			7,320			7,320
Term loan	—			1,067			—			1,067
Warrants and rights	21,515			—			594			22,109
Receivable on derivative contracts, at fair value
Swaps	—			2,911			—			2,911
Options	59,730			—			336			60,066
Consolidated Funds
Securities owned, at fair value
Government bonds	161,607			—			—			161,607
Preferred stock	—			—			4,393			4,393
Common stock	200,306			—			—			200,306
Corporate bonds	—			3,405			—			3,405
Warrants and rights	—			—			5,567			5,567
Receivable on derivative contracts, at fair value
Currency forwards	—			3,302			—			3,302
Equity swaps	—			927			—			927
Options	1,604			—			—			1,604
	$	1,993,268		$	35,940		$	48,432		$	2,077,640
Percentage of total assets measured at fair value on a recurring basis	95.9		%	1.7		%	2.3		%
Portfolio Funds measured at net asset value (a)										114,504
Carried interest (a)										30,360
Consolidated Funds' Portfolio Funds measured at net asset value (a)										175,769
Equity method investments										40,858
Total investments										$	2,439,131

	Liabilities at Fair Value as of December 31, 2019
	Level 1			Level 2			Level 3			Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Government bonds	$	—		$	—		$	1,950		$	1,950
Common stock	425,448			—			—			425,448
Corporate bonds	—			4,933			1,000			5,933
Preferred stock	3,686			—			—			3,686
Warrants and rights	14,819			—			—			14,819
Payable for derivative contracts, at fair value
Futures	217			—			—			217
Currency forwards	—			851			—			851
Swaps	—			23,169			—			23,169
Options	33,604			—			2,920			36,524
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—			—			30,896			30,896
Consolidated Funds
Payable for derivative contracts, at fair value
Currency forwards	—			88			—			88
Options	750			—			—			750
Equity swaps	—			3,931			—			3,931
	$	478,524		$	32,972		$	36,766		$	548,262
Percentage of total liabilities measured at fair value	87.3		%	6.0		%	6.7		%

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

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the second quarter of 2016 and the first quarter of 2019, 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 December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million.

	Assets at Fair Value as of December 31, 2018
	Level 1			Level 2			Level 3			Total
				(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	13,398		$	—		$	—		$	13,398
Preferred stock	449			—			5,168			5,617
Common stock	459,601			2,848			9,850			472,299
Convertible bonds	—			—			3,000			3,000
Corporate bonds	—			13,041			—			13,041
Trade claims	—			—			5,543			5,543
Warrants and rights	6,324			—			1,666			7,990
Receivable on derivative contracts, at fair value
Futures	334			—			—			334
Currency forwards	—			1			—			1
Swaps	—			917			—			917
Options	23,130			—			—			23,130
Pay to hold	—			743			—			743
Consolidated Funds
Securities owned, at fair value
Government bonds	38,377			—			—			38,377
Preferred stock	—			—			24,314			24,314
Common stock	95,471			—			94			95,565
Corporate bonds	—			24,098			—			24,098
Warrants and rights	—			—			5,279			5,279
Receivable on derivative contracts, at fair value
Currency forwards	—			186			—			186
Equity swaps	—			2,477			—			2,477
Options	1,753			—			—			1,753
	$	638,837		$	44,311		$	54,914		$	738,062
Percentage of total assets measured at fair value on a recurring basis	86.6		%	6.0		%	7.4		%
Portfolio Funds measured at net asset value (a)										124,741
Carried interest (a)										17,995
Consolidated Funds' Portfolio Funds measured at net asset value (a)										186,395
Equity method investments										38,671
Total investments										$	1,105,864

	Liabilities at Fair Value as of December 31, 2018
	Level 1			Level 2			Level 3			Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	194,305		$	—		$	—		$	194,305
Corporate bonds	—			750			—			750
Preferred stock	199			—			—			199
Warrants and rights	53			—			—			53
Payable for derivative contracts, at fair value
Currency forwards	—			709			—			709
Swaps	—			2,162			—			2,162
Options	11,115			—			2,096			13,211
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—			—			3,070			3,070
Consolidated Funds
Payable for derivative contracts, at fair value
Currency forwards	—			96			—			96
Options	854			—			—			854
Equity swaps	—			713			—			713
	$	206,526		$	4,430		$	5,166		$	216,122
Percentage of total liabilities measured at fair value	95.6		%	2.0		%	2.4		%

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

(b) In accordance with the terms of the purchase agreements for the acquisition that closed during the second quarter of 2016, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired business, if certain targets are achieved through the periods ended December 31, 2020. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires 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 as of December 31, 2018 can range from $2.8 million to $3.4 million.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table includes a roll forward of the amounts for the years ended December 31, 2019 and 2018 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.

	Year Ended December 31, 2019
	Balance at December 31, 2018		Transfers in			Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at December 31, 2019		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	5,168	$	—		$	(1,000)	(e)	$	3,513	$	(1,270)	$	1,424	$	7,835	$	2,285
Common stock	9,850		10,242		(d)(g)	(3)		(f)	11,477		(11,002)		(3,098)		17,466		(3,098)
Convertible bonds	3,000		—			(4,826)		(b) (e)	11,354		(7,072)		44		2,500		(25)
Corporate bond	—		4		(d)	—			2,811		(533)		139		2,421		140
Options, asset	—		330		(g)	—			—		—		6		336		6
Options, liability	2,096		—			—			—		(4)		828		2,920		828
Warrants and rights	1,666		—			—			—		(189)		(883)		594		31
Trade claims	5,543		—			—			7,205		(5,506)		78		7,320		76
Corporate bond, liability	—		2,525		(d)	—			—		—		(1,525)		1,000		(1,525)
Government bonds, liability	—		4,681		(d)	—			—		—		(2,731)		1,950		(2,731)
Contingent consideration liability	3,070		—			—			27,700		(1,234)		1,360		30,896		1,360
Consolidated Funds
Preferred stock	24,314		—			(19,929)		(e)	—		—		8		4,393		—
Common stock	94		—			(94)		(e)	407		(958)		551		—		—
Warrants and rights	$	5,279	$	—		$	—		$	—	$	(1,758)	$	2,046	$	5,567	$	289

	Year Ended December 31, 2018
	Balance at December 31, 2017		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at December 31, 2018		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	8,115	$	—	$	(1,141)	(b)	$	1,415	$	(695)	$	(2,526)	$	5,168	$	860
Common stock	7,570		—		(569)			3,324		(1,416)		941		9,850		1,797
Convertible bonds	282		—		—			3,000		(307)		25		3,000		—
Options, asset	1,455		—		—			—		(1,455)		—		—		—
Options, liability	22,401		—		(28,973)		(c)	—		(259)		8,927		2,096		8,927
Warrants and rights	2,517		—		—			—		(143)		(708)		1,666		(850)
Trade claim	5,950		—		—			44		(536)		85		5,543		—
Lehman claim	301		—		—			—		(234)		(67)		—		—
Contingent consideration liability	3,440		—		—			427		(797)		—		3,070		—
Consolidated Funds
Preferred stock	50,445		—		(38,552)		(a)	3,066		—		9,355		24,314		9,355
Common stock	50		—		—			—		—		44		94		44
Warrants and rights	$	3,568	$	—	$	(20)	(a)	$	—	$	(1,340)	$	3,071	$	5,279	$	1,730

(1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations.

        (a) The Company deconsolidated an investment fund.

        (b) The investments were converted to common stock. 

(c) On June 26, 2018, the Company received shareholder approval which allows the Company to settle its convertible note (see Note 23) entirely in class A common shares. Upon receiving shareholder approval, the Company reclassified the embedded conversion option, associated with the convertible debt, to equity (see Note 24).

(d) The investments had a change of valuation methodology due to increased activity in foreign market.

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

(f) Shares of common stock were exchanged for liquid warrants and rights of an acquired company.

(g) The holding Company which held common stock and options was liquidated.

Fair Value Inputs, Assets, Quantitative Information

The following table includes quantitative information as of December 31, 2019 and 2018 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 December 31, 2019		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	10,876	Discounted cash flows Guideline companies	Discount rate Market Multiples	8% - 11.25% 6.5x - 7x	10.4% 6.75x
Options	336		Discounted cash flows Guideline companies	Discount rate Market Multiples	9.75% - 11.25% 6.5x - 7x	10.5% 6.75x
Trade claims	24		Discounted cash flows	Discount rate	20%	20%
Warrants and rights	6,162		Model based Discounted cash flows	Volatility Discount rate	30% 6% to 7%	0% 6.1%
Corporate and convertible bonds	311		Discounted cash flows Recovery	Discount rate Probability of recovery	20% 1% to 3%	20% 2.3%
Other level 3 assets (a)	30,723
Total level 3 assets	$	48,432
Level 3 Liabilities
Options	2,920		Option pricing models	Volatility	35% to 40%	35%
Contingent consideration liability	30,896		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	15%-22% 17%	15% 17%
Other level 3 liabilities (a)	2,950
Total level 3 liabilities	$	36,766

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2018		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	4,323	Discounted cash flows / Guideline companies	Discount rate Market multiples	8%-14% 6.5x to 7x	8% 6.75x
Trade claims	25		Discounted cash flows	Discount rate	20%	20%
Warrants and rights	1,666		Model based Discounted cash flows	Discount rate	7% to 9%	7.8%
Other level 3 assets (a)	48,900
Total level 3 assets	$	54,914
Level 3 Liabilities
Options	2,096		Option pricing models	Volatility	35% to 40%	35%
Contingent consideration liability	3,070		Discounted cash flows	Projected cash flow and discount rate	21% to 23%	23%
Total level 3 liabilities	$	5,166

(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

The following table presents the carrying values and fair values, at December 31, 2019 and 2018, 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 2f).

	December 31, 2019						December 31, 2018						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	301,123		$	301,123		$	259,148		$	259,148		Level 1
Cash collateral pledged	6,563			6,563			6,318			6,318			Level 2
Segregated cash	107,328			107,328			176,647			176,647			Level 1
Securities borrowed	754,441			754,441			407,795			407,795			Level 2
Loans receivable	42,830			42,830		(d)	36,021			36,021		(d)	Level 3
Consolidated Funds
Cash and cash equivalents	30,874			30,874			38,118			38,118			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	23,244			27,384			—			—			Level 2
Securities loaned	1,601,866			1,601,866			414,852			414,852			Level 2
Convertible debt	118,688		(a)	148,786		(b)	134,489		(a)	157,433		(b)	Level 2
Notes payable and other debt	345,451		(e)	372,591		(c)	262,965			258,546		(c)	Level 2

(a)The carrying amount of the convertible debt includes an unamortized discount of $14.9 million and $19.5 million as of December 31, 2019 and 2018, respectively.

(b)The convertible debt includes the conversion option and is based on the last broker quote available.

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

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

(e)The carrying amount of the notes payable and other debt includes an unamortized premium of $0.5 million as of December 31, 2019.

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Organization and Business (Details)	12 Months Ended
	Dec. 31, 2019 division segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments | segment	2
Number of divisions | division	4

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Goodwill and Intangibles Schedule of Goodwill by Segment (Details) (Annual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill, gross	$ 161,513	$ 80,363	$ 80,363
Accumulated impairment charges	(23,785)	(19,685)	(19,685)
Goodwill, net	(137,728)	(60,678)	(60,678)
Recognized goodwill	81,150	0
Realignment, goodwill	0
Realignment goodwill, accumulated impairment charges	0
Goodwill Impairment	(4,100)	0	0
Investment Management Reporting Unit
Goodwill [Line Items]
Goodwill, gross	0	29,026	29,026
Accumulated impairment charges	0	(10,200)	(10,200)
Goodwill, net	0	(18,826)	18,826
Recognized goodwill	0	0
Realignment, goodwill	(29,026)
Realignment goodwill, accumulated impairment charges	10,200
Goodwill Impairment	0	0
Investment Bank Reporting Unit
Goodwill [Line Items]
Goodwill, gross	132,487	51,337	51,337
Accumulated impairment charges	(9,485)	(9,485)	(9,485)
Goodwill, net	(123,002)	(41,852)	(41,852)
Recognized goodwill	81,150	0
Realignment, goodwill	0
Realignment goodwill, accumulated impairment charges	0
Goodwill Impairment	0	0
Cowen Investment Management Reporting Unit
Goodwill [Line Items]
Goodwill, gross	22,705	0	0
Accumulated impairment charges	(7,979)	0	0
Goodwill, net	(14,726)	0	0
Recognized goodwill	0
Realignment, goodwill	22,705
Realignment goodwill, accumulated impairment charges	(7,979)
Goodwill Impairment	0
Asset Company Reporting Unit
Goodwill [Line Items]
Goodwill, gross	6,321	0	0
Accumulated impairment charges	(6,321)	0	0
Goodwill, net	0	$ 0	$ 0
Recognized goodwill	0
Realignment, goodwill	6,321
Realignment goodwill, accumulated impairment charges	(2,221)
Goodwill Impairment	(4,100)
Quarton
Goodwill [Line Items]
Recognized goodwill	81,200
Finite-lived Intangible Assets Acquired	$ 22,200
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	2 years 9 months 18 days
Quarton | Minimum
Goodwill [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years
Quarton | Maximum
Goodwill [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years

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Commission Management Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Commission Management Payable [Abstract]
Commission management payable	$ 71,620	$ 95,270

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Acquisition (Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 02, 2019	Dec. 31, 2018
Quarton
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		$ 22,200
Trade name
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross	$ 960		$ 10,622
Trade name | Quarton
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		900
Finite-Lived Intangible Asset, Useful Life	3 years
Customer relationships
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross	$ 51,724		$ 41,134
Customer relationships | Quarton
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		7,100
Finite-Lived Intangible Asset, Useful Life	4 years
Backlog | Quarton
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		12,600
Finite-Lived Intangible Asset, Useful Life	2 years
Proprietary software | Quarton
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross		$ 1,600
Finite-Lived Intangible Asset, Useful Life	3 years

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Segregated Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segregated Cash [Abstract]
Segregated cash	$ 107,328	$ 176,647	$ 116,268

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Share-Based Compensation and Employee Ownership Plans Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	0	88,504
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	0
Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-compensation expense recognized in connection with compensation plan	$ 34.0	$ 37.0	$ 28.4
Tax benefit of stock-compensation expense recognized in connection with compensation plan	$ 8.8	$ 9.7	$ 7.7
Equity Plans | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, initial term	7 years
Equity Plans | Employee Stock Option | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	2 years
Equity Plans | Employee Stock Option | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	5 years
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 62.6
Vested, shares	2,291,032	1,961,824
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	5,364,486	5,962,295	5,579,293
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 | Restricted Stock Units (RSUs) | Non-employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	216,912	253,772
Equity Plans | Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
SAR's, initial term	5 years
Vested, shares		75,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	0	0	75,000
Deferred Cash Award | Cowen Group, Inc. 2010 Equity and Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation award, vesting period	4 years
Deferred cash awards granted	$ 42.5
Deferred cash award, interest rate	0.70%
Deferred cash awards, unrecognized compensation expense	$ 60.3

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Guarantees and Off-Balance Sheet Arrangements (Details)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	$ 395,000,000
Line of credit facility, remaining borrowing capacity	395,000,000
Pledge Lines
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	300,000,000
Line of credit facility, remaining borrowing capacity	300,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	95,000,000
Line of credit facility, remaining borrowing capacity	95,000,000
Texas Capital Bank | Pledge Lines
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	75,000,000
Line of credit facility, remaining borrowing capacity	75,000,000
BMO Harris Bank | Pledge Lines
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	150,000,000
Line of credit facility, remaining borrowing capacity	150,000,000
BMO Harris Bank | Tri-Party Pledge Line
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	75,000,000
Line of credit facility, remaining borrowing capacity	75,000,000
BMO Harris Bank | Revolving Credit Facility
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	70,000,000
Line of credit facility, remaining borrowing capacity	70,000,000
BMO Harris Bank | Revolving Credit Facility
Debt Instrument [Line Items]
Letter of credit, borrowing capacity	25,000,000
Line of credit facility, remaining borrowing capacity	$ 25,000,000

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Computation of earnings per share:
Net income (loss)	$ 55,870	$ 79,879	$ (37,091)
Net Income (Loss) Attributable to Noncontrolling Interest	31,239	37,060	23,791
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds	8,442	24,752	7,657
Net income (loss) attributable to Cowen Inc.	24,631	42,819	(60,882)
Preferred stock dividends	6,792	6,792	6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$ 17,839	$ 36,027	$ (67,674)
Shares for basic and diluted calculations:
Weighted average shares used in basic computation, shares	29,525,000	29,545,000	29,492,000
Weighted average shares used in diluted computation, shares	31,286,000	30,735,000	29,492,000
Earnings (loss) per share:
Earnings Per Share, Basic (in dollars per share)	$ 0.60	$ 1.22	$ (2.29)
Earnings Per Share, Diluted (in dollars per share)	$ 0.57	$ 1.17	$ (2.29)
Quarton
Computation of earnings per share:
Net income (loss) attributable to Cowen Inc.	$ 5,700
Restricted Stock
Shares for basic and diluted calculations:
Shares attributable to share-based payment awards, shares	1,735,000	1,190,000	0
Restricted Stock | Quarton
Shares for basic and diluted calculations:
Shares attributable to share-based payment awards, shares	26,000	0	0
Common Stock Class A
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Common stock, shares outstanding, shares	28,610,357	28,437,860	29,632,020	26,731,289
Common stock, restricted shares, shares	216,912	253,772

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Commitments and Contingencies Schedules of Unfunded Commitments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Healthcare Royalty Partners | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 7,605	[1]
Healthcare Royalty Partners | Commitment to Invest
Other Commitments [Line Items]
Commitments term	5 years
Eclipse Ventures Fund I, L.P. | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 88
Eclipse Ventures Fund I, L.P. | Commitment to Invest
Other Commitments [Line Items]
Commitments term	5 years
Lagunita Biosciences, LLC | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 500
Lagunita Biosciences, LLC | Commitment to Invest
Other Commitments [Line Items]
Commitments term	4 years
Eclipse Fund II, L.P. | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 180
Eclipse Fund II, L.P. | Commitment to Invest
Other Commitments [Line Items]
Commitments term	6 years
Eclipse Continuity Fund I, L.P. | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 152
Eclipse Continuity Fund I, L.P. | Commitment to Invest
Other Commitments [Line Items]
Commitments term	7 years
Cowen Healthcare Investments II LP | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 3,406
Cowen Healthcare Investments II LP | Commitment to Invest
Other Commitments [Line Items]
Commitments term	2 years
Cowen Healthcare Investments III LP | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 8,602
Cowen Healthcare Investments III LP | Commitment to Invest
Other Commitments [Line Items]
Commitments term	7 years
Cowen Sustainable Investments I LP | Unfunded Commitments
Other Commitments [Line Items]
Other commitments, unfunded amount	$ 25,000
Cowen Sustainable Investments I LP | Commitment to Invest
Other Commitments [Line Items]
Commitments term	10 years

[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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Accounts Payable, Accrued Expenses and Other Liabilities (Notes)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure

Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred rent obligations	$	—	$	8,242
Contingent consideration payable (see Note 3)	30,896		3,070
Equity in RCG Longview Partners II, LLC (see Note 6)	—		6,367
Interest and dividends payable	5,828		2,483
Loss reserves and claims incurred but not reported (a)	30,282		23,714
Professional fees payable	4,789		5,177
Unearned premiums (a)	16,092		12,483
Fees payable	4,628		594
Accrued tax liabilities	2,778		1,742
Software contracts payable	2,884		—
Performance fees payable	3,708		5,959
Accrued expenses and accounts payable (b)	39,671		40,592
	$	141,556	$	110,423

(a) Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

(b) As of December 31, 2019 and 2018, the balance includes reinsurance premiums payable of $13.2 million and $15.7 million, respectively.

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Share-Based Compensation and Employee Ownership Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Compensation and Employee Ownership Plans

Share-Based and Deferred Compensation and Employee Ownership Plans

The Company issues share-based compensation under the 2010 Equity and Incentive Plan (the "Equity Plan"). The Equity Plan permits the grant of options, restricted shares, restricted stock units, stock appreciation rights ("SARs") 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 may be immediately vested or may generally vest over a two-to-five-year period. SARs vest and expire after five years from grant date. Awards are subject to the risk of forfeiture. As of December 31, 2019, there were no shares available for future issuance under the Equity Plan.

Under the Equity Plan, the Company awarded $42.5 million of deferred cash awards to its employees during the year ended December 31, 2019. These awards vest over a four-year period and accrue interest at 0.70% per year. As of December 31, 2019, the Company had unrecognized compensation expense related to the Equity Plan deferred cash awards of $60.3 million.

The Company measures compensation cost for share-based awards according to the equity method. In accordance with the expense recognition provisions of those standards, the Company amortizes unearned compensation associated with share-based 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 $34.0 million, $37.0 million, and $28.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. The income tax effect recognized for the Equity Plan was a benefit of $8.8 million, $9.7 million, and $7.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The following table summarizes the Company's SARs for the years ended December 31, 2019 and 2018:

	Class A Common Shares Subject to Option	Weighted Average Exercise Price/Share		Weighted Average Remaining Term	Aggregate Intrinsic Value
				(in years)	(dollars in thousands)
Balance outstanding at December 31, 2017	75,000	$	11.60	0.21	$	173
SARs vested	(75,000)	14.21		—	—
Balance outstanding at December 31, 2018	—	$	—	0	$	—
SARs granted	—	—		—	—
SARs vested	—	—		—	—
SARs expired	—	—		—	—
Balance outstanding at December 31, 2019	—	$	—	0	$	—
SARs exercisable at December 31, 2018	—	$	—	0	$	—
SARs exercisable at December 31, 2019	—	$	—	0	$	—

As of December 31, 2019 and 2018 the Company's SARs were fully expensed.

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 years ended December 31, 2019 and 2018:

	Year Ended December 31, 2019			Year Ended December 31, 2018
	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	5,962,295	$	15.73	5,579,293	$	16.33
Granted	2,435,058	16.58		2,413,727	14.20
Vested	(2,291,032)	15.63		(1,961,824)	15.60
Canceled	(584,333)	11.49		—	—
Forfeited	(157,502)	13.98		(68,901)	14.21
Ending balance outstanding	5,364,486	$	16.67	5,962,295	$	15.73

Included in the restricted share and restricted stock unit activity are performance linked restricted stock units of 481,438 which were awarded to employees of the Company in December 2013 and January 2014. An additional 700,000 performance linked restricted stock units were awarded in March 2016 and 333,333 in April of 2019. Of the awards granted, 130,438 have been forfeited and 584,333 have been canceled, as they did not meet the performance criteria, through December 31, 2019. The remaining awards, included in the outstanding balance as of December 31, 2019, vest between March 2020 and December 2021 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 RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the targeted award. Each RSU is equal to the one share of the Company's Class A common stock. 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 (excluding certain performance linked units which are valued using the Monte Carlo valuation model) 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 December 31, 2019, there was $62.6 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 2.11 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 year ended December 31, 2019 and 120,430 were delivered. As of December 31, 2019 there were 216,912 restricted stock units outstanding. There were

88,504 restricted stock units awarded during the year ended December 31, 2018. As of December 31, 2018 there were 253,772 restricted stock units outstanding.

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Share-Based Compensation and Employee Ownership Plans Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		0 years
Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	0 years	0 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 0	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	0	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	0 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 0	$ 0

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Acquisition

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions

Acquisition

Quarton

On January 2, 2019 (the "Acquisition Date"), the Company, together with its indirect wholly owned subsidiaries, Cowen International Ltd and Cowen QN Acquisition LLC, completed its previously announced acquisition (the "Acquisition") of Quarton International AG through the acquisition of all of the outstanding equity interest of Quarton International AG's affiliated combining companies, Quarton Management AG, Quarton International Europe AG, Quarton Partners, LLC and Quarton Securities GP, LLC (which owns a formerly U.S. Securities Exchange Commission ("SEC") registered broker-dealer that was subsequently renamed to Cowen Securities L.P. ("Cowen Securities") (see Note 28), comprising the U.S. and European operations of the acquired combining companies (collectively "Quarton"). Quarton is a group of leading global financial advisory companies serving the middle market. Quarton's operations were primarily conducted through eight entities based in the United States, Switzerland, and Germany.

The Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, results of operations for Quarton are included in the accompanying consolidated statements of operations since the Acquisition Date, and the assets acquired and liabilities assumed were recorded at their fair value as of the Acquisition Date. Subsequent to the Acquisition, the operations of Quarton were integrated within the Company's existing businesses.

The aggregate estimated purchase price of the Acquisition was $103.0 million. On the Acquisition Date the Company paid upfront consideration of $75.3 million subject to certain net working capital and other customary adjustments, with additional maximum contingent consideration of $40.0 million that will become payable dependent on the achievement of certain milestones by Quarton in each of the first four years (five years if certain conditions are met) following the Acquisition Date subject to a $10 million maximum in each year and a $40.0 million cumulative maximum. The Company estimated the contingent consideration at $27.7 million using the Monte Carlo valuation model which requires the Company to make estimates and assumptions regarding the future cash flows and profits. The contingent consideration liability is included within accounts payable, accrued expenses and other liabilities on the consolidated statements of financial condition. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. A portion of the preliminary purchase price was deposited into escrow, in the amount of $0.6 million, as a reserve for any future claims against the sellers of Quarton.  All consideration, including the upfront consideration and contingent consideration, consists of a combination of 80% cash and 20% shares of the Company's Class A common stock. Shares issued on the Acquisition Date of 1,033,350 were valued based on the 30-trading day volume-weighted average price per share of $14.52 as of December 31, 2018. The fair value of the shares of Class A common stock issued was determined on the basis of the closing market price of the Company's shares on the Acquisition Date. Any shares of Class A common stock issued in connection with any such contingent payments will be valued based on the 30-trading day volume-weighted average price per share as of the day immediately prior to the date on which such shares are to be issued. In addition, Quarton and the Company have established a retention bonus pool, for Quarton employees that remain employed at the end of each year there is a contingent payment which will be settled in a combination of 80% cash and 20% shares of the Company's Class A common stock based on Quarton meeting certain economic performance hurdles. The bonus pool has an aggregate maximum of $10.0 million over a five-year period with $2.5 million maximum in each year. The Company is recognizing the retention bonus over each contingent payment period based upon the Company's revenue projections for Quarton.

The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of January 2, 2019:

	(dollars in thousands)
Cash and cash equivalents	$	12,236
Fees receivable	7,269
Fixed assets	1,085
Operating lease right-of-use assets	3,200
Intangible assets	22,200
Other assets	667
Compensation payable	(637)
Operating lease liabilities	(3,200)
Due to related parties	(4,750)
Accounts payable, accrued expenses and other liabilities	(16,257)
Total identifiable net assets acquired and liabilities assumed	21,813
Goodwill	81,150
Total estimated purchase price	$	102,963

As of the Acquisition Date, the estimated fair value of the Company's intangible assets, as acquired through the Acquisition, was $22.2 million. The allocation of the intangible assets is shown within the following table:

	Estimated intangible assets acquired		Estimated average remaining useful lives
	(dollars in thousands)		(in years)
Intangible asset class
Trade name	$	900	3
Customer relationships	7,100		4
Backlog	12,600		2
Proprietary software	1,600		3
Total intangible assets	$	22,200

Amortization expense for the year ended December 31, 2019 was $8.9 million, and is included in depreciation and amortization in the accompanying consolidated statements of operations. The estimated amortization expense related to these intangible assets in future periods is as follows:

	(dollars in thousands)
2020	$	8,908
2021	2,608
2022	1,775
2023	—
2024	—
Thereafter	—
	$	13,291

In addition to the purchase price consideration, for the year ended December 31, 2019, the Company has incurred acquisition-related expenses of $1.2 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying consolidated statements of operations.

Included in the accompanying consolidated statements of operations for the year ended December 31, 2019 is revenue of $34.8 million and net income of $5.7 million related to the results of operations of Quarton.

Subsequent to the Acquisition, Quarton's businesses were integrated within the Op Co segment and therefore are included within their respective line items in the accompanying consolidated statements of operations. The following table provides supplemental pro forma financial information for the year ended December 31, 2018, as if the acquisition were completed as of January 1, 2018. This unaudited supplemental pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's financial results would have been had the acquisition been completed on January 1, 2018, nor does it purport to be indicative of any future results.

	Year Ended December 31, 2018
	(dollars in thousands, except per share data)
Net revenues	$	922,001
Net income (loss) attributable to Cowen Inc. common stockholders	35,616
Net income (loss) per common share:
Basic	$	1.20
Diluted	1.15

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Fair Value Measurements for Operating Entities and Consolidated Funds

12 Months Ended

Dec. 31, 2019

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 consolidated statements of financial condition by caption and by level within the valuation hierarchy as of December 31, 2019 and 2018:

	Assets at Fair Value as of December 31, 2019
	Level 1			Level 2			Level 3			Total
				(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	15,916		$	—		$	—		$	15,916
Preferred stock	4,821			—			7,835			12,656
Common stock	1,527,769			1,249			17,466			1,546,484
Convertible bonds	—			—			2,500			2,500
Corporate bonds	—			23,079			2,421			25,500
Trade claims	—			—			7,320			7,320
Term loan	—			1,067			—			1,067
Warrants and rights	21,515			—			594			22,109
Receivable on derivative contracts, at fair value
Swaps	—			2,911			—			2,911
Options	59,730			—			336			60,066
Consolidated Funds
Securities owned, at fair value
Government bonds	161,607			—			—			161,607
Preferred stock	—			—			4,393			4,393
Common stock	200,306			—			—			200,306
Corporate bonds	—			3,405			—			3,405
Warrants and rights	—			—			5,567			5,567
Receivable on derivative contracts, at fair value
Currency forwards	—			3,302			—			3,302
Equity swaps	—			927			—			927
Options	1,604			—			—			1,604
	$	1,993,268		$	35,940		$	48,432		$	2,077,640
Percentage of total assets measured at fair value on a recurring basis	95.9		%	1.7		%	2.3		%
Portfolio Funds measured at net asset value (a)										114,504
Carried interest (a)										30,360
Consolidated Funds' Portfolio Funds measured at net asset value (a)										175,769
Equity method investments										40,858
Total investments										$	2,439,131

	Liabilities at Fair Value as of December 31, 2019
	Level 1			Level 2			Level 3			Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Government bonds	$	—		$	—		$	1,950		$	1,950
Common stock	425,448			—			—			425,448
Corporate bonds	—			4,933			1,000			5,933
Preferred stock	3,686			—			—			3,686
Warrants and rights	14,819			—			—			14,819
Payable for derivative contracts, at fair value
Futures	217			—			—			217
Currency forwards	—			851			—			851
Swaps	—			23,169			—			23,169
Options	33,604			—			2,920			36,524
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—			—			30,896			30,896
Consolidated Funds
Payable for derivative contracts, at fair value
Currency forwards	—			88			—			88
Options	750			—			—			750
Equity swaps	—			3,931			—			3,931
	$	478,524		$	32,972		$	36,766		$	548,262
Percentage of total liabilities measured at fair value	87.3		%	6.0		%	6.7		%

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

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the second quarter of 2016 and the first quarter of 2019, 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 December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million.

	Assets at Fair Value as of December 31, 2018
	Level 1			Level 2			Level 3			Total
				(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	13,398		$	—		$	—		$	13,398
Preferred stock	449			—			5,168			5,617
Common stock	459,601			2,848			9,850			472,299
Convertible bonds	—			—			3,000			3,000
Corporate bonds	—			13,041			—			13,041
Trade claims	—			—			5,543			5,543
Warrants and rights	6,324			—			1,666			7,990
Receivable on derivative contracts, at fair value
Futures	334			—			—			334
Currency forwards	—			1			—			1
Swaps	—			917			—			917
Options	23,130			—			—			23,130
Pay to hold	—			743			—			743
Consolidated Funds
Securities owned, at fair value
Government bonds	38,377			—			—			38,377
Preferred stock	—			—			24,314			24,314
Common stock	95,471			—			94			95,565
Corporate bonds	—			24,098			—			24,098
Warrants and rights	—			—			5,279			5,279
Receivable on derivative contracts, at fair value
Currency forwards	—			186			—			186
Equity swaps	—			2,477			—			2,477
Options	1,753			—			—			1,753
	$	638,837		$	44,311		$	54,914		$	738,062
Percentage of total assets measured at fair value on a recurring basis	86.6		%	6.0		%	7.4		%
Portfolio Funds measured at net asset value (a)										124,741
Carried interest (a)										17,995
Consolidated Funds' Portfolio Funds measured at net asset value (a)										186,395
Equity method investments										38,671
Total investments										$	1,105,864

	Liabilities at Fair Value as of December 31, 2018
	Level 1			Level 2			Level 3			Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Common stock	$	194,305		$	—		$	—		$	194,305
Corporate bonds	—			750			—			750
Preferred stock	199			—			—			199
Warrants and rights	53			—			—			53
Payable for derivative contracts, at fair value
Currency forwards	—			709			—			709
Swaps	—			2,162			—			2,162
Options	11,115			—			2,096			13,211
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—			—			3,070			3,070
Consolidated Funds
Payable for derivative contracts, at fair value
Currency forwards	—			96			—			96
Options	854			—			—			854
Equity swaps	—			713			—			713
	$	206,526		$	4,430		$	5,166		$	216,122
Percentage of total liabilities measured at fair value	95.6		%	2.0		%	2.4		%

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

(b) In accordance with the terms of the purchase agreements for the acquisition that closed during the second quarter of 2016, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired business, if certain targets are achieved through the periods ended December 31, 2020. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires 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 as of December 31, 2018 can range from $2.8 million to $3.4 million.

The following table includes a roll forward of the amounts for the years ended December 31, 2019 and 2018 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.

	Year Ended December 31, 2019
	Balance at December 31, 2018		Transfers in			Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at December 31, 2019		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	5,168	$	—		$	(1,000)	(e)	$	3,513	$	(1,270)	$	1,424	$	7,835	$	2,285
Common stock	9,850		10,242		(d)(g)	(3)		(f)	11,477		(11,002)		(3,098)		17,466		(3,098)
Convertible bonds	3,000		—			(4,826)		(b) (e)	11,354		(7,072)		44		2,500		(25)
Corporate bond	—		4		(d)	—			2,811		(533)		139		2,421		140
Options, asset	—		330		(g)	—			—		—		6		336		6
Options, liability	2,096		—			—			—		(4)		828		2,920		828
Warrants and rights	1,666		—			—			—		(189)		(883)		594		31
Trade claims	5,543		—			—			7,205		(5,506)		78		7,320		76
Corporate bond, liability	—		2,525		(d)	—			—		—		(1,525)		1,000		(1,525)
Government bonds, liability	—		4,681		(d)	—			—		—		(2,731)		1,950		(2,731)
Contingent consideration liability	3,070		—			—			27,700		(1,234)		1,360		30,896		1,360
Consolidated Funds
Preferred stock	24,314		—			(19,929)		(e)	—		—		8		4,393		—
Common stock	94		—			(94)		(e)	407		(958)		551		—		—
Warrants and rights	$	5,279	$	—		$	—		$	—	$	(1,758)	$	2,046	$	5,567	$	289

	Year Ended December 31, 2018
	Balance at December 31, 2017		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at December 31, 2018		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	8,115	$	—	$	(1,141)	(b)	$	1,415	$	(695)	$	(2,526)	$	5,168	$	860
Common stock	7,570		—		(569)			3,324		(1,416)		941		9,850		1,797
Convertible bonds	282		—		—			3,000		(307)		25		3,000		—
Options, asset	1,455		—		—			—		(1,455)		—		—		—
Options, liability	22,401		—		(28,973)		(c)	—		(259)		8,927		2,096		8,927
Warrants and rights	2,517		—		—			—		(143)		(708)		1,666		(850)
Trade claim	5,950		—		—			44		(536)		85		5,543		—
Lehman claim	301		—		—			—		(234)		(67)		—		—
Contingent consideration liability	3,440		—		—			427		(797)		—		3,070		—
Consolidated Funds
Preferred stock	50,445		—		(38,552)		(a)	3,066		—		9,355		24,314		9,355
Common stock	50		—		—			—		—		44		94		44
Warrants and rights	$	3,568	$	—	$	(20)	(a)	$	—	$	(1,340)	$	3,071	$	5,279	$	1,730

(1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations.

        (a) The Company deconsolidated an investment fund.

        (b) The investments were converted to common stock. 

(c) On June 26, 2018, the Company received shareholder approval which allows the Company to settle its convertible note (see Note 23) entirely in class A common shares. Upon receiving shareholder approval, the Company reclassified the embedded conversion option, associated with the convertible debt, to equity (see Note 24).

(d) The investments had a change of valuation methodology due to increased activity in foreign market.

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

(f) Shares of common stock were exchanged for liquid warrants and rights of an acquired company.

(g) The holding Company which held common stock and options was liquidated.

All realized and unrealized gains (losses) in the table above are reflected in other income (loss) in the accompanying consolidated statements of operations.

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 1 and 2 generally relate to whether the principal market for the security becomes active or inactive. 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 December 31, 2019 and 2018 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 December 31, 2019		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	10,876	Discounted cash flows Guideline companies	Discount rate Market Multiples	8% - 11.25% 6.5x - 7x	10.4% 6.75x
Options	336		Discounted cash flows Guideline companies	Discount rate Market Multiples	9.75% - 11.25% 6.5x - 7x	10.5% 6.75x
Trade claims	24		Discounted cash flows	Discount rate	20%	20%
Warrants and rights	6,162		Model based Discounted cash flows	Volatility Discount rate	30% 6% to 7%	0% 6.1%
Corporate and convertible bonds	311		Discounted cash flows Recovery	Discount rate Probability of recovery	20% 1% to 3%	20% 2.3%
Other level 3 assets (a)	30,723
Total level 3 assets	$	48,432
Level 3 Liabilities
Options	2,920		Option pricing models	Volatility	35% to 40%	35%
Contingent consideration liability	30,896		Discounted cash flows Monte Carlo simulation	Discount rate Volatility	15%-22% 17%	15% 17%
Other level 3 liabilities (a)	2,950
Total level 3 liabilities	$	36,766

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2018		Valuation Techniques	Unobservable Inputs	Range	Weighted Average
Level 3 Assets	(dollars in thousands)
Common and preferred stocks	$	4,323	Discounted cash flows / Guideline companies	Discount rate Market multiples	8%-14% 6.5x to 7x	8% 6.75x
Trade claims	25		Discounted cash flows	Discount rate	20%	20%
Warrants and rights	1,666		Model based Discounted cash flows	Discount rate	7% to 9%	7.8%
Other level 3 assets (a)	48,900
Total level 3 assets	$	54,914
Level 3 Liabilities
Options	2,096		Option pricing models	Volatility	35% to 40%	35%
Contingent consideration liability	3,070		Discounted cash flows	Projected cash flow and discount rate	21% to 23%	23%
Total level 3 liabilities	$	5,166

(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 and procedures and an internal control infrastructure over its fair value measurement of financial instruments which includes ongoing oversight by the valuation committee as well as periodic audits performed by the Company's internal audit group. 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, including the review of the results of the independent price verification process, approval of new trading asset classes and use of applicable pricing models and approaches.

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 reviews a daily 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. Changes in capital rates, discount rates and replacement costs could significantly increase or decrease the valuation of the real estate investments. 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 December 31, 2019 and 2018, 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 2f).

	December 31, 2019						December 31, 2018						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	301,123		$	301,123		$	259,148		$	259,148		Level 1
Cash collateral pledged	6,563			6,563			6,318			6,318			Level 2
Segregated cash	107,328			107,328			176,647			176,647			Level 1
Securities borrowed	754,441			754,441			407,795			407,795			Level 2
Loans receivable	42,830			42,830		(d)	36,021			36,021		(d)	Level 3
Consolidated Funds
Cash and cash equivalents	30,874			30,874			38,118			38,118			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	23,244			27,384			—			—			Level 2
Securities loaned	1,601,866			1,601,866			414,852			414,852			Level 2
Convertible debt	118,688		(a)	148,786		(b)	134,489		(a)	157,433		(b)	Level 2
Notes payable and other debt	345,451		(e)	372,591		(c)	262,965			258,546		(c)	Level 2

(a)The carrying amount of the convertible debt includes an unamortized discount of $14.9 million and $19.5 million as of December 31, 2019 and 2018, respectively.

(b)The convertible debt includes the conversion option and is based on the last broker quote available.

(c)Notes payable and other debt are based on the last broker quote available.(d)The fair market value of level 3 loans is calculated using discounted cash flows where applicable.

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Income Taxes Income Tax Expense (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Unrecognized Tax Benefits

$ 299

$ 299

$ 3,947

Income (Loss) from Continuing Operations before Income Taxes, Domestic

68,900

93,000

3,900

Income (Loss) from Continuing Operations before Income Taxes, Foreign

2,200

6,000

3,100

Income Taxes Receivable

6,500

Current Federal Tax Expense (Benefit)

(731)

(1,883)

421

Current State and Local Tax Expense (Benefit)

457

(2,148)

2,034

Current Foreign Tax Expense (Benefit)

1,831

785

428

Current Income Tax Expense (Benefit)

1,557

(3,246)

2,883

Deferred Federal Income Tax Expense (Benefit)

10,242

12,018

44,071

Deferred State and Local Income Tax Expense (Benefit)

3,598

6,956

(2,938)

Deferred Foreign Income Tax Expense (Benefit)

(544)

(9)

37

Deferred Income Tax Expense (Benefit)

13,296

18,965

41,170

Total tax expense/(benefit)

14,853

15,719

$ 44,053

Deferred Tax Assets, Valuation Allowance

5,234

9,135

Deferred Tax Assets, Other

$ 3,043

$ 2,444

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of the Company's income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
	(dollars in thousands)
Current tax expense/(benefit)
Federal	$	(731)	$	(1,883)	$	421
State and local	457		(2,148)		2,034
Foreign	1,831		785		428
Total	$	1,557	$	(3,246)	$	2,883
Deferred tax expense/(benefit)
Federal	$	10,242	$	12,018	$	44,071
State and local	3,598		6,956		(2,938)
Foreign	(544)		(9)		37
Total	13,296		18,965		41,170
Total tax expense/(benefit)	$	14,853	$	15,719	$	44,053

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred tax assets, net of valuation allowance
Net operating loss	$	60,160	$	48,294
Deferred compensation	46,545		59,697
Intangible assets	2,969		—
Tax credits	6,716		9,036
Lease liability	24,623		2,098
Other	3,043		2,444
Total deferred tax assets	144,056		121,569
Valuation allowance	(5,234)		(9,135)
Deferred tax assets, net of valuation allowance	138,822		112,434
Deferred tax liabilities
Right-of-use assets	(23,028)		—
Unrealized gains on investments	(26,545)		(13,092)
Amortization of bond discount	(3,980)		(4,643)
Other	(6,103)		(1,642)
Total deferred tax liabilities	(59,656)		(19,377)
Deferred tax assets/(liabilities), net	$	79,166	$	93,057

Summary of Operating Loss Carryforwards [Table Text Block]

The Company has the following net operating loss carryforwards at December 31, 2019:

Jurisdiction:	Federal	New York State	New York City	Hong Kong
Net operating loss (in millions)	$175.1	$67.9	$108.8	$12.5
Year of expiration	2037	2037	2037	Indefinite

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Fixed Assets

12 Months Ended

Dec. 31, 2019

Fixed Assets [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Fixed Assets

As of December 31, 2019 and 2018, fixed assets consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Telecommunication and computer equipment	$	7,556	$	3,301
Computer software	8,952		4,214
Furniture and fixtures	3,526		2,829
Leasehold improvements	40,301		37,652
Finance lease right-of-use asset (See Note 22)	6,172		10,077
	66,507		58,073
Less: Accumulated depreciation and amortization	(32,846)		(31,630)
	$	33,661	$	26,443

Depreciation and amortization expense related to fixed assets was $7.3 million, $7.4 million and $7.0 million for the years ended December 31, 2019, 2018, and 2017, respectively, and are included in depreciation and amortization expense in the accompanying consolidated statements of operations.

Assets acquired under finance leases were $6.2 million and $10.1 million as of December 31, 2019 and 2018, respectively. If the assets acquired under finance leases transfer title at the end of the lease term or contain a bargain purchase option, the assets are amortized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. The depreciation of assets capitalized under finance leases is included in depreciation and amortization expenses and was $1.3 million, $1.6 million, and $1.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. As of December 31, 2019 and 2018, accumulated depreciation related to assets acquired under finance leases was $2.2 million and $5.0 million, respectively.

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Income Taxes Unrecognized Tax Benefits - Annual (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits	$ 299	$ 299	$ 3,947
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions	$ 0	$ (3,648)

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Guarantees and Off-Balance Sheet Arrangements

12 Months Ended

Dec. 31, 2019

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 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 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 December 31, 2019 and 2018. 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 December 31, 2019.

Lender	Contractual Amount		Available Amount		Maturity Date	Description
Pledge Lines	(dollars in thousands)
Texas Capital Bank	$	75,000	$	75,000	None	Secured Depository Trust Company Pledge Line
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	300,000		300,000
Revolving Credit Facility
BMO Harris Bank Canadian Imperial Bank of Commerce Texas Capital Bank	70,000		70,000		August 21, 2020	(Syndicated) Unsecured liquidity facility to cover increases in National Securities Clearing Corporation margin deposit requirements
BMO Harris Bank	25,000		25,000		December 2, 2021	Secured Corporate Revolver
Total	95,000		95,000
Total Credit Lines	$	395,000	$	395,000

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Earnings Per Share

12 Months Ended

Dec. 31, 2019

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 common shares outstanding for the period. As of December 31, 2019, there were 28,610,357 shares of Class A common stock outstanding. As of December 31, 2019, the Company has included 216,912 fully vested, unissued restricted stock units in its calculation of basic earnings per share. As of December 31, 2018, there were 28,437,860 shares of Class A common stock outstanding. As of December 31, 2018, the Company has included 253,772 fully vested, unissued restricted stock units 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, restricted stock units, and SARs. 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, and options and warrants are assumed to have been exercised, 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 can elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. The Company's intent is to settle in cash and, based on current and projected liquidity needs, the Company has the ability to do so.

The computation of earnings per share is as follows:

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands, except share and per share data)
Net income (loss)	$	55,870	79,879		$	(37,091)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	31,239		37,060		23,791
Net income (loss) attributable to Cowen Inc.	24,631		42,819		(60,882)
Preferred stock dividends	6,792		6,792		6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$	17,839	$	36,027	$	(67,674)
Shares for basic and diluted calculations:
Weighted average shares used in basic computation	29,525		29,545		29,492
Contingently issuable common stock in connection with an acquisition (see Note 3)	26		—		—
Restricted stock	1,735		1,190		—
Weighted average shares used in diluted computation	31,286		30,735		29,492
Earnings (loss) per share:
Basic	$	0.60	$	1.22	$	(2.29)
Diluted	$	0.57	$	1.17	$	(2.29)

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Operating Lease, Lease Income [Table Text Block]

For the year ended December 31, 2019, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statement of operations were as follows:

	Year Ended December 31, 2019
	(dollars in thousands)
Lease cost
Operating lease cost	$	23,540
Short-term lease cost	253
Variable lease cost	1,017
Sublease income	(953)
Total lease costs	$	23,857

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the year ended December 31, 2019:

	Year Ended December 31, 2019
	(dollars in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,743
Weighted average remaining lease term - operating leases (in years)	5.34
Weighted average discount rate - operating leases	4.13		%

Future Minimum Annual Lease and Service Payments

As of December 31, 2019, maturities of the outstanding operating lease liabilities for the Company were as follows:

	Equipment Leases (operating) (b)		Real Estate and Other Facility Rental (a)
	(dollars in thousands)
2020	$	360	$	22,848
2021	206		24,271
2022	73		20,766
2023	—		17,610
2024	—		14,789
Thereafter	—		10,225
Total operating leases	639		110,509
Less discount	24		13,290
Less short-term leases	—		253
Total lease liability	$	615	$	96,966

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

(b)During the twelve months ended December 31, 2019, the Company recognized operating right-of-use assets and leases liabilities of $6.9 million for equipment leases.

Prior to the adoption of the new lease accounting guidance, the minimum rental commitments under non-cancelable operating leases at December 31, 2018, were as follows:

	Equipment Leases (a)		Service Payments		Real Estate and Other Facility Rental (b)
	(dollars in thousands)
2019	$	2,434	$	21,758	$	24,584
2020	1,492		7,514		22,608
2021	1,382		1,877		22,321
2022	1,123		1,372		19,166
2023	374		735		16,204
Thereafter	—		735		21,478
	$	6,805	$	33,991	$	126,361

(a)Equipment Leases includes the Company's commitments relating to operating and finance leases. See Note 23 for further information on the finance lease minimum payments which are included in the table.

(b)The Company has entered into various agreements to sublease certain of its premises. The Company recorded sublease income related to these leases of $1.4 million and $1.1 million for the years ended December 31, 2018 and 2017, respectively.

Other Commitments

As of December 31, 2019, future minimum annual service payments for the Company were as follows:

	Service Payments
	(dollars in thousands)
2020	$	22,217
2021	14,674
2022	9,358
2023	4,095
2024	1,938
Thereafter	4,401
Total service payment commitments	$	56,683

^[1],[2]

Other Commitments

The following table summarizes unfunded commitments as of December 31, 2019:

Entity	Unfunded Commitments		Commitment Term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	7,605	5 years
Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.)	$	88	5 years
Lagunita Biosciences, LLC	$	500	4 years
Eclipse Fund II, L.P.	$	180	6 years
Eclipse Continuity Fund I, L.P.	$	152	7 years
Cowen Healthcare Investments II LP	$	3,406	2 years
Cowen Healthcare Investments III LP	$	8,602	7 years
Cowen Sustainable Investments I LP	$	25,000	10 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.

[1] During the twelve months ended December 31, 2019, the Company recognized operating right-of-use assets and leases liabilities of $6.9 million for equipment leases.

[2] The Company has entered into various agreements to sublease certain of its premises.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share, Basic and Diluted

The computation of earnings per share is as follows:

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands, except share and per share data)
Net income (loss)	$	55,870	79,879		$	(37,091)
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	31,239		37,060		23,791
Net income (loss) attributable to Cowen Inc.	24,631		42,819		(60,882)
Preferred stock dividends	6,792		6,792		6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$	17,839	$	36,027	$	(67,674)
Shares for basic and diluted calculations:
Weighted average shares used in basic computation	29,525		29,545		29,492
Contingently issuable common stock in connection with an acquisition (see Note 3)	26		—		—
Restricted stock	1,735		1,190		—
Weighted average shares used in diluted computation	31,286		30,735		29,492
Earnings (loss) per share:
Basic	$	0.60	$	1.22	$	(2.29)
Diluted	$	0.57	$	1.17	$	(2.29)

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Fixed Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 66,507,000	$ 58,073,000
Less: Accumulated depreciation and amortization	(32,846,000)	(31,630,000)
Fixed assets, net	33,661,000	26,443,000
Net loss (gain) on disposal of fixed assets	(233,000)	(15,343,000)	$ 2,346,000
Depreciation, Amortization and Accretion, Net	7,300,000	7,400,000	7,000,000.0
Depreciation, Amortization and Accretion, Net	7,300,000	7,400,000	7,000,000.0
Telephone and computer equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	7,556,000	3,301,000
Computer software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	8,952,000	4,214,000
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,526,000	2,829,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	40,301,000	37,652,000
Assets acquired under capital leases-equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,172,000	10,077,000
Depreciation	1,300,000	1,600,000	$ 1,000,000.0
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	$ 2,200,000	$ 5,000,000.0

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Investments of Operating Entities and Consolidated Funds - Merger Master Narrative (Details) - USD ($)		Dec. 31, 2019	Dec. 31, 2018
Investment [Line Items]
Trading securities		$ 1,633,552,000	$ 520,888,000
Securities sold, not yet purchased, at fair value		451,836,000	195,307,000
Merger Master
Investment [Line Items]
Trading securities		79,353,000	279,299,000
Securities sold, not yet purchased, at fair value		68,150,000	9,610,000
Common Stock
Investment [Line Items]
Securities sold, not yet purchased, at fair value		425,448,000	194,305,000
Common Stock | Merger Master
Investment [Line Items]
Trading securities		76,531,000	162,811,000
Securities sold, not yet purchased, at fair value		29,623,000	4,959,000
Corporate Bonds
Investment [Line Items]
Securities sold, not yet purchased, at fair value	[1]	5,933,000	750,000
Corporate Bonds | Merger Master
Investment [Line Items]
Trading securities		2,074,000	116,488,000
Exchange Traded Funds | Merger Master
Investment [Line Items]
Securities sold, not yet purchased, at fair value		38,527,000	4,651,000
Warrants and Rights [Member]
Investment [Line Items]
Securities sold, not yet purchased, at fair value		14,819,000	53,000
Warrants and Rights [Member] | Merger Master
Investment [Line Items]
Trading securities		$ 748,000	$ 0

[1] As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%. As of December 31, 2018, the maturities ranged from October 2022 to January 2034 and interest rates ranged from 2.25% to 9.38%.

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Investment banking	$ 375,025	$ 357,222	$ 223,614
Brokerage	402,747	413,582	293,610
Management fees	32,608	29,658	33,245
Incentive income	1,547	3,117	5,383
Interest and dividends	174,913	108,009	49,440
Reimbursement from affiliates	1,026	1,038	2,860
Aircraft lease revenue	0	1,852	3,751
Reinsurance premiums	46,335	38,096	30,996
Other revenues	5,433	4,504	8,561
Consolidated Funds
Interest and dividends	9,772	9,816	5,870
Other revenues	37	22	1,451
Total revenues	1,049,443	966,916	658,781
Interest and dividends expense	168,628	104,116	60,949
Total net revenues	880,815	862,800	597,832
Expenses
Employee compensation and benefits	535,772	512,627	404,087
Brokerage and trade execution costs	103,235	109,399	75,601
Underwriting expenses	15,067	15,282	0
Professional, advisory and other fees	48,385	40,957	31,942
Service fees	23,707	20,198	14,999
Communications	31,894	30,801	23,460
Occupancy and equipment	39,726	41,602	35,184
Depreciation and amortization	20,460	12,436	13,078
Client services and business development	50,371	35,927	28,327
Goodwill Impairment	4,100	0	0
Reinsurance claims, commissions and amortization of deferred acquisition costs	44,070	41,086	30,486
Restructuring Costs	0	0	8,763
Other expenses	23,114	22,014	18,196
Consolidated Funds
Interest and dividends	4,602	6,534	9,836
Professional, advisory and other fees	2,426	938	1,145
Brokerage and trade execution costs	122	256	318
Other expenses	1,813	887	1,227
Total expenses	948,864	890,944	696,649
Other income (loss)
Net gains (losses) on securities, derivatives and other investments	80,409	68,043	76,179
Goodwill	0	0	6,914
Gain (loss) on debt extinguishment	0	(556)	(16,039)
Consolidated Funds
Net realized and unrealized gains (losses) on investments and other transactions	59,384	46,656	19,660
Net realized and unrealized gains (losses) on derivatives	(1,003)	9,408	19,476
Net gains (losses) on foreign currency transactions	(18)	191	(411)
Total other income (loss)	138,772	123,742	105,779
Income (loss) before income taxes	70,723	95,598	6,962
Income tax expense (benefit)	14,853	15,719	44,053
Net income (loss)	55,870	79,879	(37,091)
Net Income (Loss) Attributable to Noncontrolling Interest	31,239	37,060	23,791
Net income (loss) attributable to Cowen Inc.	24,631	42,819	(60,882)
Preferred stock dividends	6,792	6,792	6,792
Net income (loss) attributable to Cowen Inc. common stockholders	$ 17,839	$ 36,027	$ (67,674)
Weighted average common shares outstanding:
Basic (in shares)	29,525	29,545	29,492
Diluted (in shares)	31,286	30,735	29,492
Earnings (loss) per share:
Earnings Per Share, Basic (in dollars per share)	$ 0.60	$ 1.22	$ (2.29)
Earnings Per Share, Diluted (in dollars per share)	$ 0.57	$ 1.17	$ (2.29)

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Organization and Business

12 Months Ended

Dec. 31, 2019

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 and 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 investment banking, research, sales and trading, prime brokerage, global execution, clearing and commission management services to companies and primarily institutional investor clients. Sectors covered by Op Co's investment banking business include healthcare, technology, media and telecommunications, consumer, industrials, information and technology 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 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.

Change in Segments

The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable segments. Because of the change in the Chief Operating Decision Maker ("CODM") of the Company at the end of 2017, the Company experienced a strategic shift to refocus the Company's businesses on a set of differentiated products which are aligned to the content and insight within the Company's domain of expertise.

During the second quarter of 2019, the Company realigned the business and reportable segment information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including evaluation and allocation of resources.  As a result, the Company changed its segment reporting structure based on the Company's domain expertise as a driver of balance sheet harmonization and repeatable revenues for its operating business versus the Company's long-term monetization strategies.

As a result of the change in segments during the second quarter of 2019, the Company has the following business segments:

•The Op Co segment consists of four divisions: Investment Banking, Markets, Research and Cowen Investment Management. Each of Op Co's four divisions leverage the Research division’s core domain expertise to drive harmonized repeatable revenue for the segment.

◦The Investment Banking division includes public and private capital raising transactions and providing strategic advisory services.

◦The Markets division includes trading equity, equity-linked and fixed income securities on behalf of institutional investors as well as a full-service suite of prime brokerage services, cross-asset trading, securities finance, global execution, clearing and commission management businesses.

◦The Research division provides thought leadership and domain expertise. The research content that is created helps to facilitate brokerage revenue in the Markets division, provides research coverage for clients of the Investment Banking division and facilitate investor relationships and investing within CIM's innovative investment products and solutions.

◦The CIM division offers innovative investment products and solutions across the liquidity spectrum to institutional and private clients. CIM offers investors access to a number of strategies to meet their specific needs including merger arbitrage, activism, healthcare royalties, private healthcare investing and private sustainable investing many of which leverage the content and domain expertise that are aligned with the Company's core areas of expertise, which the Company refers to as Cowen DNA.

•The Asset Co segment consists of certain of the Company's private investments, private real estate investments and other legacy investment strategies.

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Investments of Operating Entities and Consolidated Funds - Securities borrowed and securities loaned (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Securities borrowed		$ 754,441	$ 407,795
Securities Borrowed, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	[1]	0	0
Securities borrowed, net amounts included on the condensed consolidated statements of financial condition		754,441	407,795
Securities borrowed, additional amounts, asset		0	0
Securities Borrowed, Collateral, Obligation to Return Cash	[2]	0	0
Securities Borrowed, Amount Offset Against Collateral		2,528	24,202
Securities borrowed, cash collateral pledged		0
Securities Loaned		1,601,866	414,852
Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election	[1]	0	0
Securities Loaned, Gross amounts recognized		1,601,866	414,852
Securities Loaned, Additional Amounts Available		0	0
Securities Loaned, Collateral, Right to Reclaim Cash	[2]	0	0
Securities Loaned, Amount Offset Against Collateral		16,830	23,542
Securities Sold under Agreements to Repurchase, Asset		23,244
Securities Loaned, Net amounts		(4,140)
Securities Sold under Agreements to Repurchase		23,244	0
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement		0
Securities sold under agreements to repurchase, additional amounts		0
Securities Borrowed, Not Offset, Policy Election Deduction		751,913	383,593
Securities Loaned, Not Offset, Policy Election Deduction		$ 1,585,036	$ 391,310

[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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Fair Value Measurements for Operating Entities and Consolidated Funds Carrying Value Disclosures (Details) - USD ($) $ in Thousands		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Cash and cash equivalents		$ 301,123		$ 259,148	$ 130,052
Cash collateral pledged		6,563		6,318	17,888
Segregated cash		107,328		176,647	$ 116,268
Securities borrowed		754,441		407,795
Loans Receivable, Net		42,830		36,021
Cash and cash equivalents, Consolidated Funds		30,874		38,118
Securities Sold under Agreements to Repurchase		23,244		0
Securities Loaned		1,601,866		414,852
Convertible debt	[1]	118,688		134,489
Notes payable and other debt		345,451	[2]	262,965
Convertible Debt
Convertible debt, unamortized discount		14,900		19,500
Notes Payable, Other Payables [Member]
Debt Instrument, Unamortized Premium		500
Level 1
Cash and cash equivalents, Fair Value		301,123		259,148
Segregated cash fair value disclosures		107,328		176,647
Cash and cash equivalents, Consolidated Funds, Fair Value		30,874		38,118
Level 2
Cash collateral pledged, Fair Value		6,563		6,318
Securities Borrowed, Fair Value Disclosure		754,441		407,795
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities		27,384		0
Securities loaned, fair value disclosure		1,601,866		414,852
Convertible debt, Fair Value	[3]	148,786		157,433
Notes payable and other debt, Fair Value	[4]	372,591		258,546
Level 3
Loans Receivable, Fair Value Disclosure	[5]	$ 42,830		$ 36,021

[1] The carrying amount of the convertible debt includes an unamortized discount of $14.9 million and $19.5 million as of December 31, 2019 and 2018, respectively.

[2] The carrying amount of the notes payable and other debt includes an unamortized premium of $0.5 million as of December 31, 2019.

[3] The convertible debt includes the conversion option and is based on the last broker quote available.

[4] Notes payable and other debt are based on the last broker quote available.

[5] The fair market value of level 3 loans is calculated using discounted cash flows where applicable.

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Investments of Operating Entities and Consolidated Funds Carried Interest (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Carried Interest [Abstract]

Carried Interest

The carried interest as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Cowen Healthcare Investments II LP (*)	$	23,759	$	6,778
Other private investment (a) (*)	4,737		4,273
RCG IO Renergys Sarl	1,251		6,369
Ramius Multi-Strategy Fund LP (*)	613		575
	$	30,360	$	17,995

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

* These carried interest balances are earned from affiliates of the Company.

Investment [Line Items]

Other investments

$ 185,722

$ 181,407

Carried interest [Member]

Investment [Line Items]

Other investments

30,360

^[1]

17,995

^[2]

Cowen Healthcare Investments II LP | Carried interest [Member] | Affiliated Entity

Investment [Line Items]

Other investments

^[3]

23,759

6,778

Other Private Investment | Carried interest [Member] | Affiliated Entity

Investment [Line Items]

Other investments

^[3],[4]

4,737

4,273

RCG IO Renergys Sarl | Carried interest [Member] | Affiliated Entity

Investment [Line Items]

Other investments

^[3]

1,251

6,369

Ramius Mutli-Strategy Fund LP [Member] | Carried interest [Member] | Affiliated Entity

Investment [Line Items]

Other investments

^[3]

$ 613

$ 575

[1] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[2] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[3] These carried interest balances are earned from affiliates of the Company.

[4] Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.

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Investments of Operating Entities and Consolidated Funds - Other Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2019		Dec. 31, 2018
Investment Holdings [Line Items]
Other investments	$ 185,722		$ 181,407
Portfolio Funds, Consolidated Funds	175,769		186,395
Portfolio Funds
Investment Holdings [Line Items]
Other investments	114,504	[1]	124,741	[2]
Carried interest [Member]
Investment Holdings [Line Items]
Other investments	30,360	[1]	17,995	[2]
Equity Method Investments
Investment Holdings [Line Items]
Other investments	40,858		38,671
Enterprise LP [Member]
Investment Holdings [Line Items]
Portfolio Funds, Consolidated Funds	99,153		97,656
Merger Fund [Member]
Investment Holdings [Line Items]
Portfolio Funds, Consolidated Funds	$ 76,616		$ 88,739

[1] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[2] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

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Commitments and Contingencies (Details) - USD ($)		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Contractual Commitments, Commitment [Line Items]
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability		$ 6,900,000
Operating Lease, Payments		24,743
Lease cost		23,540,000
Variable lease cost		1,017,000
Sublease income		(953,000)
Total lease costs		$ 23,857,000
Weighted average remaining lease term - operating leases (in years)		5 years 4 months 2 days
Weighted average discount rate - operating leases		4.13%
Future minimum annual lease and service payments
Total lease liability		$ 97,581,000	$ 0		$ 110,505,000
Sublease income related to operating leases			1,400,000	$ 1,100,000
Operating lease liabilities		97,581,000	0		$ 110,505,000
Clawback Obligation
Future minimum annual lease and service payments
Other Commitment			6,500,000
RCG Longview Partners II, LLC | Clawback Obligation
Future minimum annual lease and service payments
Other Commitment			6,500,000
Equipment Leases
Contractual Commitments, Commitment [Line Items]
Contractual Obligation, Due in Next Fiscal Year			2,434,000
Contractual Obligation, Due in Second Year			1,492,000
Contractual Obligation, Due in Third Year			1,382,000
Contractual Obligation, Due in Fourth Year			1,123,000
Contractual Obligation, Due in Fifth Year			374,000
Contractual Obligation, Due after Fifth Year			0
Contractual Obligation			6,805,000
Short-term lease cost		0
Future minimum annual lease and service payments
2020		360,000
2021		206,000
2022		73,000
2023		0
2024		0
Thereafter		0
Future minimum annual lease and service payments		639,000
Less discount		24,000
Total lease liability		615,000
Lessee, Operating Lease, Liability, Payments, Due		639,000
Less discount		24,000
Operating lease liabilities		615,000
Service Payments
Contractual Commitments, Commitment [Line Items]
Contractual Obligation, Due in Next Fiscal Year		22,217,000	21,758,000
Contractual Obligation, Due in Second Year		14,674,000	7,514,000
Contractual Obligation, Due in Third Year		9,358,000	1,877,000
Contractual Obligation, Due in Fourth Year		4,095,000	1,372,000
Contractual Obligation, Due in Fifth Year		1,938,000	735,000
Contractual Obligation, Due after Fifth Year		4,401,000	735,000
Contractual Obligation		56,683,000	33,991,000
Facility Leases
Contractual Commitments, Commitment [Line Items]
Contractual Obligation, Due in Next Fiscal Year			24,584,000
Contractual Obligation, Due in Second Year			22,608,000
Contractual Obligation, Due in Third Year			22,321,000
Contractual Obligation, Due in Fourth Year			19,166,000
Contractual Obligation, Due in Fifth Year			16,204,000
Contractual Obligation, Due after Fifth Year			21,478,000
Contractual Obligation			$ 126,361,000
Short-term lease cost		253,000
Future minimum annual lease and service payments
2020	[1]	22,848,000
2021	[1]	24,271,000
2022	[1]	20,766,000
2023	[1]	17,610,000
2024	[1]	14,789,000
Thereafter	[1]	10,225,000
Future minimum annual lease and service payments	[1]	110,509,000
Less discount		13,290,000
Total lease liability		96,966,000
Lessee, Operating Lease, Liability, Payments, Due	[1]	110,509,000
Less discount		13,290,000
Operating lease liabilities		$ 96,966,000

[1] The Company has entered into various agreements to sublease certain of its premises.

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Goodwill and Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill and Intangibles [Abstract]

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 January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entities to calculate the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019 in conjunction with a quantitative goodwill test performed due to the Company's change in operating segments and restructuring of reporting units. See Note 12 for the impact of the goodwill impairment test.

In accordance with US GAAP requirements for testing for impairment of goodwill, inclusive of the newly adopted amendments, 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. See Note 12 for further discussion.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. The Company does not have any intangible assets deemed to have indefinite 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 consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to 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.

Goodwill and Intangible Assets

Goodwill

In accordance with US GAAP, 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. Under US GAAP, the Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amounts as a basis for determining if it is necessary to perform a quantitative impairment test. Periodically estimating the fair value of a reporting unit requires significant judgment and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge.

Change in Segments

During the second quarter of 2019, the Company realigned its business segments to Op Co and Asset Co (See Note 1). Prior to the reorganization, the Investment Management segment was also a reporting unit for purposes of measuring and reporting goodwill.  The goodwill that was previously attributable to the Investment Management reporting unit was reallocated to the CIM reporting unit within the Op Co segment and the Asset Co reporting unit based on the relative fair value of the respective portions that became attributable to those reporting units.  The Asset Co segment is also a reporting unit for purposes of measuring and reporting goodwill.

Based on the change in segments and restructuring of reporting units, the Company determined that it was necessary to perform a quantitative impairment test which involved estimates of future cash flows, discount rates, economic forecast and other assumptions which are then used in the market approach (earnings and / or transactions multiples) and / or income approach (discounted cash flow method).

Based on the results of the impairment analysis, the Company recognized a goodwill impairment, during the second quarter of 2019, in the amount of $4.1 million within the Asset Co reporting unit.

Annual impairment test

The Company performed its annual impairment test at December 31, 2019 by assessing qualitative factors to determine whether it is more likely than not that the fair value of its reporting units is less than their carrying amounts. The Company determined that a quantitative impairment test was not necessary based on the analysis.

Based on the results of the annual impairment analysis at December 31, 2019, the Company did not recognize any additional impairment relating to the CIM or Investment Bank reporting units. Additionally, no impairment charges for goodwill were recognized during the years ended December 31, 2018 and 2017 respectively.

The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2019 and 2018:

	Investment Management		Investment Bank		Cowen Investment Management		Asset Co		Total
	(dollars in thousands)
Beginning balance - December 31, 2017
Goodwill	$	29,026	$	51,337	$	—	$	—	80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2018
Recognized goodwill	—		—		—		—		—
Goodwill impairment charges	—		—		—		—		—
Ending balance: December 31, 2018
Goodwill	29,026		51,337		—		—		80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2019
Recognized goodwill (See note 3)	—		81,150		—		—		81,150
Realignment of segment goodwill:
Goodwill	(29,026)		—		22,705		6,321		—
Accumulated impairment charges	10,200		—		(7,979)		(2,221)		—
Goodwill impairment charges	—		—		—		(4,100)		(4,100)
Ending balance: December 31, 2019
Goodwill	—		132,487		22,705		6,321		161,513
Accumulated impairment charges	—		(9,485)		(7,979)		(6,321)		(23,785)
Net	$	—	$	123,002	$	14,726	$	—	$	137,728

In connection with the Quarton transaction (see Note 3), in January 2019, the Company recognized goodwill of $81.2 million and intangible assets (including customer relationships, trade name, backlog and proprietary software) with an estimated fair value of $22.2 million which are included within intangible assets, net in the consolidated statements of financial condition with the expected useful lives ranging from 2 to 4 years with a weighted average useful life of 2.8 years. Amortization expense related to intangibles from the Quarton acquisition for the year ended December 31, 2019 is $8.9 million. Goodwill, the excess of the purchase price over the fair value of net assets, primarily relates to expected synergies from combining operations and has been assigned to the Op Co segment of the Company. Tax deductible goodwill will differ from goodwill recognized by the Company in an amount equal to the difference between actual contingent consideration and estimated contingent consideration (see Note 3).

Intangible assets

Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2019 and 2018.

		December 31, 2019						December 31, 2018
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in thousands)						(in thousands)
Trade names	2.6 - 3	$	960	$	(360)	$	600	$	10,622	$	(10,599)	$	23
Customer relationships	2 - 14	51,724		(21,065)		30,659		41,134		(18,960)		22,174
Customer contracts	1.2	—		—		—		800		(800)		—
Non compete agreements and covenants with limiting conditions acquired	5	400		(347)		53		2,237		(2,055)		182
Intellectual property	8	1,188		(119)		1,069		—		—		—
Acquired software	3 - 10	7,323		(4,504)		2,819		8,243		(5,679)		2,564
		$	61,595	$	(26,395)	$	35,200	$	63,036	$	(38,093)	$	24,943

The Company tests intangible assets for impairment if events or circumstances suggest that the asset groups carrying value may not be fully recoverable. For the years ended December 31, 2019 and 2018, no impairment charge for intangible assets was recognized.

Amortization expense related to intangible assets was $13.1 million, $5.0 million, and $6.1 million for the years ended December 31, 2019, 2018, and 2017, respectively, which is included in depreciation and amortization expense in the accompanying consolidated statements of operations. All of the Company's intangible assets have finite lives.

The estimated future amortization expense for the Company's intangible assets placed in service as of December 31, 2019 is as follows:

	(dollars in thousands)
2020	$	13,035
2021	6,735
2022	5,120
2023	3,006
2024	2,707
Thereafter	4,597
	$	35,200

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Cash Collateral Pledged	12 Months Ended
	Dec. 31, 2019
Cash and Cash Equivalents [Abstract]
Cash Collateral Pledged	Cash Collateral Pledged As of December 31, 2019 and 2018, the Company pledged cash collateral in the amount of $4.6 million and $5.3 million, respectively, which relates to letters of credit issued to the landlords of the Company's premises in New York City, Boston, Stamford and San Francisco. The Company also has pledged collateral for reinsurance agreements which amounted to $2.0 million, as of December 31, 2019, and $1.0 million, as of December 31, 2018, which are released annually between March 2020 and March 2023 based on the policy periods covered by the reinsurance agreements (see Note 23).

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Share-Based Compensation and Employee Ownership Plans SARs (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term		0 years
Stock Appreciation Rights
Weighted Average Exercise Price/Share
Exercisable, weighted remaining contractual term	0	0
Equity Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	0	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 0	$ 0	$ 0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	0 years	0 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	0 years
Weighted Average Exercise Price/Share
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0	0
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs)
Shares Subject to Option
Balance outstanding, beginning of period, shares	5,962,295	5,579,293
Acquired, shares	(2,291,032)	(1,961,824)
Balance outstanding, end of period, shares	5,364,486	5,962,295	5,579,293
Weighted Average Exercise Price/Share
Balance outstanding, beginning of period, in dollars per share	$ 15.73	$ 16.33
Acquired, in dollars per share	15.63	15.60
Balance outstanding, end of period, in dollars per share	$ 16.67	$ 15.73	$ 16.33
Granted, shares	2,435,058	2,413,727
Granted, in dollars per share	$ 16.58	$ 14.20
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	157,502	68,901
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 13.98	$ 14.21
Equity Plans | Stock Appreciation Rights
Shares Subject to Option
Balance outstanding, beginning of period, shares	0	75,000
Acquired, shares		(75,000)
Balance outstanding, end of period, shares	0	0	75,000
Balance exercisable, shares	0	0
Weighted Average Exercise Price/Share
Balance outstanding, beginning of period, in dollars per share		$ 11.60
Acquired, in dollars per share		$ 14.21
Balance outstanding, end of period, in dollars per share			$ 11.60
Weighted Average Remaining Term Outstanding	0 years	0 years	2 months 15 days
Aggregate intrinsic value, outstanding	$ 0	$ 0	$ 173
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercisable, Weighted Average Grant Date Fair Value	$ 0	$ 0

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Income Taxes Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Pre-tax loss at U.S. statutory rate	21.00%	21.00%	35.00%
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent	0.00%	0.00%	(25.90%)
Effective Income Tax Rate Reconciliation, Bargain Purchase Gain, Percent	0.00%	0.00%	(34.80%)
Effective Income Tax Rate Reconciliation, Basis Adjustment on Investment, Percent	0.00%	3.50%	65.20%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent	4.10%	1.20%	14.20%
Effective Income Tax Rate Reconciliation - goodwill impairment	1.20%	0.00%	0.00%
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	(4.00%)	7.10%	0.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	0.00%	0.00%	669.80%
Effective Income Tax Rate Reconciliation, State and Foreign Income Taxes, Percent	8.00%	(10.00%)	25.30%
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent	(9.20%)	(8.60%)	(119.60%)
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	(0.10%)	1.70%	3.70%
Total	21.00%	15.90%	632.90%

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Deposits with Clearing Organizations, Brokers and Banks	12 Months Ended
	Dec. 31, 2019
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 December 31, 2019 and 2018, the Company had a total of $91.8 million and $89.4 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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Related Party Transactions

12 Months Ended

Dec. 31, 2019

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 December 31, 2019 and 2018, $20.5 million and $19.4 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 years ended December 31, 2019, 2018 and 2017, 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 consolidated statements of financial condition. As of December 31, 2019 and 2018, loans to employees of $14.9 million and $17.0 million, respectively, were included in due from related parties on the accompanying consolidated statements of financial condition. Of these amounts $7.1 million and $8.8 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 $3.8 million, $3.1 million, and $2.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. This expense is included in employee compensation and benefits in the accompanying consolidated statement of operations. For the year ended December 31, 2019, the interest income was $0.1 million for these related party loans and advances, respectively, and are included in interest and dividends in the accompanying consolidated statement of operations. For the year ended December 31, 2018, the interest income was immaterial, and for the year ended December 31, 2017, the interest income was $0.1 million for these related party loans and advances. This income is included in interest and dividends in the accompanying consolidated statement of operations.

As of December 31, 2019 and 2018, included in due from related parties is $6.5 million and $7.7 million, respectively, related to the sales of portions of the Company's ownership interest in the activist business of Starboard Value to the Starboard principals. It is being financed through the profits of the relevant Starboard entities over a 5 year period and earns interest at 5% per annum.  The interest income for the years ended December 31, 2019, 2018, and 2017, was $0.3 million, $0.4 million, and $0.8 million, respectively.

The remaining balance included in due from related parties of $5.3 million and $8.9 million as of December 31, 2019 and 2018, respectively, relates to amounts due to the Company from affiliated investment funds and real estate entities due to expenses paid on their behalf. Included in due to related parties is approximately $0.3 million and $0.6 million as of December 31, 2019 and 2018, respectively, related to a subordination agreement with an investor in certain real estate funds. This total is based on a hypothetical liquidation of the real estate funds as of the balance sheet date.

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 December 31, 2019 and 2018, such investments aggregated $36.0 million and $25.1 million, respectively, were included in non-controlling interests on the accompanying consolidated statements of financial condition. Their share of the net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds aggregated $7.9 million, $7.6 million, and $7.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company may, at times, have unfunded commitment amounts pertaining to related parties. See Note 22 "Commitments and Contingencies" for amounts committed as of December 31, 2019.

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

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 unrealized gains and losses on foreign currency translation adjustments. During the periods presented, the Company did not have material reclassifications out of other comprehensive income.

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Beginning Balance	$	(5)	$	(8)	$	(2)
Foreign currency translation	—		3		(6)
Ending Balance	$	(5)	$	(5)	$	(8)

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Convertible Debt and Notes Payable (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Direct Financing Lease, Lease Income [Table Text Block]

For the years ended December 31, 2019, 2018 and 2017, quantitative information regarding the Company's finance lease obligations reflected in the accompanying consolidated statement of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Year Ended December 31,
	2019		2018
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	1,266	$	1,627
Interest on lease liabilities	227		231
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	227		231
Financing cash flows from finance leases	$	1,266	$	2,186

Schedule of Debt and Capital Lease Obligations

As of December 31, 2019 and 2018, the Company's outstanding debt was as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Convertible debt	$	118,688	$	134,489
Notes payable	306,818		229,740
Term loan	32,180		28,200
Other notes payable	2,516		—
Finance lease obligations	3,937		5,025
	$	464,139	$	397,454

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 December 31, 2019, are as follows:

	Convertible Debt		Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2020	$	4,050	$	23,548	$	33,126	$	593	$	1,290
2021	4,050		23,548		—		593		1,398
2022	139,050		23,548		—		593		1,166
2023	—		23,548		—		593		411
2024	—		98,721		—		543		11
Thereafter	—		334,304		—		—		—
Subtotal	147,150		527,217		33,126		2,915		4,276
Less (a)	(28,462)		(220,399)		(946)		(399)		(339)
Total	$	118,688	$	306,818	$	32,180	$	2,516	$	3,937

(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 convertible debt.

Schedule of Line of Credit Facilities

As of December 31, 2019, the Company has the following 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 collateral for reinsurance agreements which amounted to $2.0 million as of December 31, 2019, and $1.0 million as of December 31, 2018, which are released annually between March 2020 and March 2023 based on the policy periods covered by the reinsurance agreements.

Location	Amount		Maturity
	(dollars in thousands)
Boston	$	382	March 2020
New York	$	359	April 2020
New York	$	398	October 2020
New York	$	1,125	October 2020
New York	$	1,629	November 2020
San Francisco	$	716	October 2025

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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

	Year Ended December 31, 2019
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	352,192	$	—	$	352,192	$	—	$	22,833	(a)	$	375,025
Brokerage	440,413		—		440,413		—		(37,666)		(b)	402,747
Management fees	43,698		1,976		45,674		(2,270)		(10,796)		(c)	32,608
Incentive income (loss)	45,041		1,152		46,193		(600)		(44,046)		(c)	1,547
Investment income (loss)	51,344		3,111		54,455		—		(54,455)		(d)	—
Interest and dividends	—		—		—		—		174,913		(b)(d)	174,913
Reimbursement from affiliates	—		—		—		(122)		1,148		(e)	1,026
Reinsurance premiums	—		—		—		—		46,335		(f)	46,335
Other revenue	5,785		58		5,843		(14)		(396)		(f)	5,433
Consolidated Funds revenues	—		—		—		9,809		—			9,809
Total revenues	938,473		6,297		944,770		6,803		97,870			1,049,443
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	22,576		5,449		28,025		—		140,603		(b)(d)	168,628
Total net revenues	915,897		848		916,745		6,803		(42,733)			880,815
Expenses
Non interest expense	847,485		9,030		856,515		—		79,286		(a)(e)(h)(i)	935,801
Goodwill impairment	—		—		—		—		4,100			4,100
Consolidated Funds expenses	—		—		—		8,963		—			8,963
Total expenses	847,485		9,030		856,515		8,963		83,386			948,864
Total other income (loss)	—		—		—		36,663		102,109		(c)(d)(i)	138,772
Income taxes expense / (benefit)	—		—		—		—		14,853		(h)	14,853
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	4,796		—		4,796		34,503		(8,060)			31,239
Income (loss) attributable to Cowen Inc.	63,616		(8,182)		55,434		—		(30,803)			$	24,631
Less: Preferred stock dividends	5,434		1,358		6,792		—		—			6,792
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	58,182		(9,540)		48,642		$	—	$	(30,803)		$	17,839
Add back: Depreciation and Amortization expense	20,403		36		20,439
Economic operating income (loss)	$	78,585	$	(9,504)	$	69,081

	Year Ended December 31, 2018
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	329,061	$	—	$	329,061	$	—	$	28,161	(a)	$	357,222
Brokerage	452,299		—		452,299		—		(38,717)		(b)	413,582
Management fees	43,466		5,709		49,175		(2,513)		(17,004)		(c)	29,658
Incentive income (loss)	16,851		6,896		23,747		(52)		(20,578)		(c)	3,117
Investment income (loss)	53,593		2,753		56,346		—		(56,346)		(d)(g)	—
Interest and dividends	—		—		—		—		108,009		(d)	108,009
Reimbursement from affiliates	—		—		—		(269)		1,307		(e)	1,038
Aircraft lease revenue	—		—		—		—		1,852		(g)	1,852
Reinsurance premiums	—		—		—		—		38,096		(f)	38,096
Other revenue	(1,619)		451		(1,168)		—		5,672		(f)	4,504
Consolidated Funds revenues	—		—		—		9,838		—			9,838
Total revenues	893,651		15,809		909,460		7,004		50,452			966,916
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	17,489		5,524		23,013		—		81,103		(d)	104,116
Total net revenues	876,162		10,285		886,447		7,004		(30,651)			862,800
Expenses
Non interest expense	788,272		17,087		805,359		—		76,970		(a)(e)(h)(i)	882,329
Consolidated Funds expenses	—		—		—		8,615		—			8,615
Total expenses	788,272		17,087		805,359		8,615		76,970			890,944
Total other income (loss)	—		—		—		35,494		88,248		(c)(d)(i)(j)	123,742
Income taxes expense / (benefit)	—		—		—		—		15,719		(h)	15,719
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	4,212		742		4,954		33,883		(1,777)			37,060
Income (loss) attributable to Cowen Inc.	83,678		(7,544)		76,134		—		(33,315)			42,819
Less: Preferred stock dividends	5,162		1,630		6,792		—		—			6,792
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	78,516		(9,174)		69,342		$	—	$	(33,315)		$	36,027
Add back: Depreciation and Amortization expense	11,402		181		11,583
Economic operating income (loss)	$	89,918	$	(8,993)	$	80,925

	Year Ended December 31, 2017
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	223,614	$	—	$	223,614	$	—	$	—		$	223,614
Brokerage	312,780		—		312,780		—		(19,170)		(b)	293,610
Management fees	45,007		10,380		55,387		(2,593)		(19,549)		(c)	33,245
Incentive income (loss)	17,872		8,156		26,028		(1,739)		(18,906)		(c)	5,383
Investment income (loss)	7,204		37,938		45,142		—		(45,142)		(d)(g)	—
Interest and dividends	—		—		—		—		49,440		(b)(d)	49,440
Reimbursement from affiliates	—		—		—		(297)		3,157		(e)	2,860
Aircraft lease revenue	—		—		—		—		3,751		(g)	3,751
Reinsurance premiums	—		—		—		—		30,996		(f)	30,996
Other revenue	3,307		(76)		3,231		—		5,330		(f)	8,561
Consolidated Funds revenues	—		—		—		7,321		—			7,321
Total revenues	609,784		56,398		666,182		2,692		(10,093)			658,781
Interest expense	13,599		5,289		18,888		—		42,061		(d)	60,949
Total net revenues	596,185		51,109		647,294		2,692		(52,154)			597,832
Expenses
Non interest expense	584,816		40,571		625,387		(199)		58,935		(a)(e)(h)(i)	684,123
Consolidated Funds expenses	—		—		—		12,526		—			12,526
Total expenses	584,816		40,571		625,387		12,327		58,935			696,649
Total other income (loss)	—		—		—		31,073		74,706		(c)(d)(i)(j)(k)	105,779
Income taxes expense / (benefit)	—		—		—		—		44,053		(h)	44,053
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	5,178		894		6,072		21,438		(3,719)			23,791
Income (Loss) attributable to Cowen Inc.	6,191		9,644		$	15,835	$	—	$	(76,717)		$	(60,882)
Less: Preferred stock dividends	4,890		1,902		6,792							6,792
Income (Loss) attributable to Cowen Inc. common stockholders	1,301		7,742		9,043							$	(67,674)
Add back: Depreciation and amortization expense	11,211		347		11,558
Economic Operating Income (Loss) attributable to Cowen Inc. common stockholders	$	12,512	$	8,089	$	20,601

The following is a summary of the adjustments made to US GAAP net income (loss) to arrive at Economic Income (Loss):

Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) 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).

Other Adjustments:

(a)	Economic Income (Loss) presents underwriting expenses net of investment banking revenues, expenses reimbursed from clients within their respective expense category. Economic Income (Loss) also records retainer fees, relating to investment banking activities, collectible during the period that would otherwise be deferred until closing for US GAAP reporting.
(b)	Economic Income (Loss) brokerage revenues included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP.
(c)	Economic Income (Loss) recognizes revenues (i) net of fund start-up costs and distribution fees paid to agents, (ii) records income from uncrystallized incentive fees and (iii) the Company's proportionate share of management and incentive fees of certain real estate operating entities, the healthcare royalty business and the activist business.
(d)	Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) for which the majority of this activity is shown in other income (loss) for US GAAP reporting.
(e)	Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP.
(f)	Economic Income (Loss) recognizes underwriting income from the Company's insurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting.
(g)	Aircraft lease revenue is shown net of expenses in investment income for Economic Income (Loss).
(h)	Economic Income (Loss) excludes income taxes and acquisition related adjustments as management does not consider these items when evaluating the performance of the segment.
(i)	Economic Income (Loss) recognizes the Company's proportionate share of expenses, for certain real estate operating entities and the activist business, for which the investments are recorded under the equity method of accounting for investments.
(j)	Economic Income (Loss) excludes gain/(loss) on debt extinguishment.
(k)	Economic Income (Loss) excludes the bargain purchase gain which resulted from the Convergex Group acquisition.

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

a. Basis of presentation

These 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 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 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 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 Company serves as the managing member/general partner and/or investment manager to investment funds which it sponsors and manages. Investment funds in which the Company has a controlling financial interest are consolidated with the Company. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these investment funds on a gross basis. The ownership interests in these investment funds that are not owned by the Company are reflected as redeemable or nonredeemable non-controlling interests, dependent on the non-controlling interest holder's redemption rights, in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these investment funds are eliminated in consolidation.

During 2019, the Company carried out an analysis to evaluate instances where non-controlling interest parties have the unilateral right to redeem their ownership interest for cash, which resulted in a change to the presentation of certain nonredeemable non-controlling interests into permanent equity. Accordingly, prior period amounts have been recast to be presented separately from redeemable non-controlling interests within the permanent equity section of the accompanying consolidated statements of financial condition. The change to the presentation of nonredeemable non-controlling interests has no impact on net income (loss) attributable to Cowen Inc. common stockholders, total assets or total liabilities.

With respect to the Company's private equity investment management strategies, 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 consolidated statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. Prior period amounts have been recast to reflect this accounting treatment.

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 consolidates five investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2019, the Company consolidated the following investment funds: Ramius Enterprise LP (“Enterprise LP”), Ramius Merger Fund LLC (the "Merger Fund"), Cowen Private Investments LP ("Cowen Private"), Ramius Merger Arbitrage UCITS Fund ("UCITS Fund"), and Cowen Sustainable Investments I LP ("CSI I LP") (each a "Consolidated Fund" and collectively the "Consolidated Funds").

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. As of December 31, 2019, the total assets and total liabilities of the consolidated VIEs were $685.4 million and $24.9 million, respectively. As of December 31, 2018, the total assets and total liabilities of the consolidated VIEs were $468.0 million and $40.5 million, respectively. The increase is primarily related to other investors' subscriptions which increased overall VIEs net assets. The VIEs act as investment managers and/or investment companies that may be managed by the Company or the Company may have equity interest in those investment companies. The VIEs are financed through their operations and/or loan agreements with the Company.

At December 31, 2019, the Company held a variable interest in Ramius Merger Master Fund Ltd ("Merger Master") (the "Unconsolidated Master Fund") through the consolidated Merger Fund. At December 31, 2018, the Company held variable interests in Ramius Enterprise Master Fund Ltd ("Enterprise Master") and Merger Master (collectively the "Unconsolidated Master Funds") through two Consolidated Funds. 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. Therefore, the Company has not consolidated the Unconsolidated Master Funds.

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 does not consolidate the Unconsolidated Master Fund or real estate funds that are VIEs due to the Company's conclusion that it is not the primary beneficiary of these funds in each instance. Investment fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company has equity interests in the funds as both general partner and limited partner. In these instances the Company has concluded that the variable interests are not potentially significant to the VIE. Although the Company may advance amounts and pay certain expenses on behalf of the investment funds that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services (see Note 6 for additional disclosures on VIEs).

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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying 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 such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying

consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.

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

c. Use of estimates

The preparation of the accompanying 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, disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, 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. Cash and cash equivalents

The Company considers investments in money market funds and other highly liquid investments with original maturities of three months or less which are deposited with a bank or prime broker to be cash equivalents. Cash and cash equivalents held at Consolidated Funds, although not legally restricted, are not available to fund the general liquidity needs of the Company. The Company may also be exposed to credit risk as a result of cash being held at several banks.

e. Allowance for credit losses

The allowance for credit losses is based on the Company's assessment of the collectability of receivables related to securities transactions, prepaid research and other receivables. The Company considers factors such as historical experience, credit quality, age of balances and current economic conditions that may affect collectability in determining the allowance for credit losses. Specifically, for prepaid research, the Company reviews clients' historical, current and forecasted trading activity in determining the allowance for credit losses. 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 consolidated statements of operations.

f. 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 1 Inputs 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 2 Inputs 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 3 Fair 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. However, the determination of what constitutes "observable" requires significant judgment by the Company. 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.

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 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 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, have inputs which can generally be corroborated by market data and are therefore classified within level 2. OTC derivatives, such as swaps and options where market data is not readily available or observable are classified as level 3.

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

i. Portfolio funds—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 guidance permits an entity holding investments in certain entities that either are investment companies as defined by the American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide, Investment Companies, or have attributes similar to an investment company, and calculate net asset value 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. Real estate investments—Real estate debt and equity investments are measured at fair value. The fair value of real estate investments is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Real estate investments without a public market are valued based on assumptions and valuation techniques used by the Company. Such valuation techniques may include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence, as well as independent external appraisals. In general, the Company considers several valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate. Real estate investments are reviewed on a quarterly basis by the Company for significant changes at the property level or a significant change in the overall market which would impact the value of the real estate investment resulting in unrealized appreciation or depreciation.

Real estate and capital markets are cyclical in nature. Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates. In addition, the Company invests in real estate and real estate-related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. Amounts ultimately realized by the Company from investments sold may differ from the fair values presented, and the differences could be material.

The Company's real estate investments are typically categorized as level 3 investments within the fair value hierarchy as management uses significant unobservable inputs in determining their estimated fair value.

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

iii. 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 of 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.

iv. 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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

g. Due from/due to related parties

The Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition.

h. 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.

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 account of brokers and dealers.

Pursuant to the master netting agreements the Company has entered into with its brokers, dealers and clearing organizations, receivables and payables arising from unsettled trade 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.

i. Receivable from and payable to customers

Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settle-date basis on the statement of financial condition.

Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settle-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.

j. Fees receivable

Fees related to security transactions are reported net of an allowance for credit losses.  An allowance for credit losses is assessed on any commission receivables aged over 180 days. 

Corporate finance and syndicate receivables, include receivables relating to the Company's investment banking and advisory engagements net of allowance for credit losses. The Company records this allowance for credit losses on these receivables on a specific identification basis. The future collectability of the receivables is reviewed on a monthly basis based on the following factors: aging (usually if outstanding greater than 90 days), known financial stability of the paying company, as well as any other factors that might impact the collection of the outstanding fees.

Management and incentive fees 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 2v).

k. 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 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. The Company minimizes its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional or returning excess collateral in accordance with the netting provisions available in the master securities lending contracts in place with the counterparties.

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 consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition. At December 31, 2019 and 2018, the Company did not have any securities lending transactions for which fair value basis of accounting was elected.

l.  Securities sold under agreements to repurchase

        Securities sold under agreements to repurchase ("repos") are accounted for as collateralized financing transactions and are recorded at their contracted repurchase amount plus accrued interest. A repo is a transaction in which a firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from such buyer 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 sold in the transaction. The Company typically enters into repo transactions with counterparties that prefer repo transactions to securities loaned transactions. The Company has executed master repo agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repo for matched book purposes. The Company monitors the market value of repos on a daily basis, with additional collateral obtained or returned, as necessary. Repos 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 repo contracts in place with the counterparties.

        Interest paid is recorded in interest and dividends expense on an accrual basis in the accompanying consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. At December 31, 2019 and 2018, the Company did not have any repos for which fair value basis of accounting was elected.

m. Fixed assets

Fixed assets are stated at cost less accumulated depreciation or amortization. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or lease term. When the Company commits to a plan to abandon fixed assets or leasehold improvements before the end of its original useful life, the estimated depreciation or amortization period is revised to reflect the shortened useful life of the asset. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives.

Asset	Depreciable Lives	Depreciation and/or Amortization Method
Telecommunication and computer equipment	5 years	Straight-line
Computer software	4 years	Straight-line
Furniture and fixtures	5 years	Straight-line
Leasehold improvements	Term of Lease	Straight-line
Finance lease right-of-use asset	Term of Lease	Straight-line

n. 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 January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entities to calculate the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019 in conjunction with a quantitative goodwill test performed due to the Company's change in operating segments and restructuring of reporting units. See Note 12 for the impact of the goodwill impairment test.

In accordance with US GAAP requirements for testing for impairment of goodwill, inclusive of the newly adopted amendments, 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. See Note 12 for further discussion.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. The Company does not have any intangible assets deemed to have indefinite 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 consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to 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.

o. Debt

Long-term debt is carried at the principal amount borrowed net of any unamortized discount/premium. The discount is accreted to interest expense using the effective interest method over the remaining life of the underlying debt obligations. Accrued but unpaid coupon interest is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition.

p. Legal reserves

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 reserve nor disclosure is required for losses that are deemed remote.

q. Capital withdrawals payable

Capital withdrawals from the Consolidated Funds are recognized as liabilities, net of any incentive income, when the amount requested in the withdrawal notice represents an unconditional obligation at a specified or determined date (or dates) or upon an event certain to occur. This generally may occur either at the time of the receipt of the notice, or on the last day of a reporting period, depending on the nature of the request. As a result, withdrawals paid after the end of the year, but based upon year-end capital balances are reflected as liabilities at the balance sheet date.

r. 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 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 temporary equity. The remaining non-controlling interests have been classified in permanent equity as the non-controlling interests are either not redeemable at the option of the holder or the holder does not have the unilateral right to redeem their ownership interests.

s. Treasury stock

In accordance with US GAAP relating to repurchases of an entity's own outstanding common stock, the Company records the purchases of stock held in treasury at cost and reports them separately as a deduction from total stockholders' equity on the accompanying consolidated statements of financial condition and changes in equity.

t. Comprehensive income (loss)

Comprehensive income (loss) consists of net income and other comprehensive income (loss). The Company's other comprehensive income (loss) is comprised of foreign currency cumulative translation adjustments.

u. Right-of-use assets and lease liabilities

Effective January 1, 2019, the Company adopted ASC Topic 842, Leases ("ASC 842"). The new guidance increases transparency and comparability by requiring the recognition of right-of-use assets and lease liabilities on the consolidated

statements of financial condition. The recognition of these lease assets and lease liabilities represents a change from previous US GAAP requirements, which did not require lease assets and lease liabilities to be recognized for most leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee, have not significantly changed from previous US GAAP requirements.

Under the effective date transition method selected by the Company, leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior reported financial statements, including footnotes, have not been recast to the reflect the impact of ASC 842 to all comparative periods presented. In applying ASC 842, the Company made an accounting policy election not to recognize the right-of-use assets and lease liabilities relating to short-term leases. Implementation of ASC 842 included an analysis of contracts, including real estate leases and service contracts to identify embedded leases, to determine the initial recognition of right-of-use assets and lease liabilities, which required subjective assessment over the determination of the associated discount rates. ASC 842 also provided various practical expedients which were assessed to determine the ultimate impact of ASC 842 upon adoption. The standard includes a package of three practical expedients which permit the Company to not reassess (1) whether any expired or existing contracts are or contain a lease, (2) the lease classification for any expired or existing leases and (3) any initial direct costs for any existing leases as of the effective date. The Company has elected to apply the package of practical expedients, as well as the hindsight practical expedient, and land easement practical expedient.

The adoption of ASC 842 resulted in the recording of operating lease right-of-use assets of $103.7 million and operating lease liabilities of $110.5 million at January 1, 2019.

The Company determines if an arrangement is or contains a lease at inception. The Company's operating lease arrangements are primarily for real estate and facility leases as well as office equipment. The Company has applied an accounting policy election to combine its lease and nonlease components for its real estate and facility leases. Right-of-use assets represent the Company's right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company's variable lease payments consist of nonlease services related to the lease. Variable lease payments are excluded from the right-of-use asset and lease liabilities to the extent they are not based on a consumer priced index or a market index and are recognized in the period in which the obligation for those payments is incurred. As most of the Company's leases do not provide an implicit rate and the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Right-of-use assets also include any lease payments made and exclude lease incentives. Many of the Company's operating lease agreements include options to extend the lease, which the Company does not include in the determination of the minimum lease term unless the options are reasonably certain to be exercised. Expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term.

The Company reconciles the operating lease expense with operating lease payments by presenting the amortization of the operating Right-of-use asset and change in the operating lease liability in a single line item within the adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities in the accompanying Consolidated Statements of Cash Flows.

Please refer to Note 23 for information on the Company's finance leases (formerly capital leases).

v. 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: Op Co and Asset Co as more fully described below. 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, separated by business segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 27.

Operating Company

The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606.

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 agency placement 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 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. Commissions 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.

•Principal transactions. Principal transactions revenue includes 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.

•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 Company’s international 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.

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.

Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

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 or debt 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 0.5% 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 utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month.

•Cowen trading strategies. Advisory fees for the Company's collateral management advisory business are typically paid quarterly based on utilized invested capital or committed capital, generally subject to a minimum fee.

Incentive income

The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreements) with respect to certain of the Company's investment funds and managed accounts.  The incentive income is either allocated to the Company or is charged to the investment funds in accordance with their respective investment management or partnership agreements. 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. For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 20% of the distributions made to investors after return of their contributed capital and generally a preferred return. With respect to the Company's private equity investment management strategies, the Company grants its employees that act as portfolio managers for its private equity fund products membership into the respective general partner entities that are the general partner of the funds they manage. These awards entitle the employees to share in future distributions of carried interest earned by the general partners. These arrangements are accounted for as profit sharing awards and accordingly amounts are reflected in compensation payable in the accompanying consolidated financial statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. 

In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income.  Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company’s ownership interests in the investment funds.

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 crystalized. For a majority of the 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."

Investment income

Investment income earned by the Op Co segment is earned from investing the Company's capital in various strategies which align to existing businesses within Op Co and from investments in private capital raising transactions of its investment banking clients.

Asset Company

The Asset Co segment generates revenue through three principal sources: management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606.

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 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.

Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

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:

•Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month.

•Real estate. Management fees from the Company's real estate investments are generally charged at an annual rate from 0.25% to 1.50% of total capital commitments during the investment period and of invested capital or net asset value of the applicable real estate fund after the investment period has ended. Management fees are typically paid to the general partners on a quarterly basis, at the beginning of the quarter in arrears.

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 either allocated to the Company or 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.  For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 20% of the distributions made to investors after return of their contributed capital and generally a preferred return.

In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income.  Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company's ownership interests in the investment funds.

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 crystalized. 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 or carried interest is earned 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.

Several investment managers and/or general partners of the Company's investment funds are jointly owned by the Company and third parties. Accordingly, the incentive fees generated by these investment funds are split between the Company and these third parties.  Pursuant to US GAAP, incentive income received by the general partners that are accounted for under the equity method of accounting are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.   

Investment Income

Investment income earned by the Asset Co segment is earned from investing the Company's capital in various strategies.

Revenue from contracts with customers

For the years ended December 31, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Year Ended December 31,
		2019		2018
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	211,666	$	215,723
Strategic/financial advisory fees		79,208		81,733
Placement and sales agent fees		69,070		46,888
Expense reimbursements from clients		15,081		12,878
	Total investment banking revenue	375,025		357,222
Brokerage
Commissions		356,668		366,090
Trade conversion revenue		12,531		17,061
Equity research fees		19,006		20,184
	Total brokerage revenue from customers	388,205		403,335
Management fees		31,361		26,080
Incentive income		1,532		3,117
Total revenue from contracts with customers - Op Co		$	796,123	$	789,754
		Asset Company
Management fees		1,248		3,578
Incentive income		15		—
Total revenue from contracts with customers - Asset Co		1,263		3,578
Total revenue from contracts with customers		$	797,386	$	793,332

Investments transactions and related income/expenses

Purchases and sales of securities, net of commissions, and 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 net gains (losses) on securities, derivatives and other investments, and with respect to the Consolidated Funds and other real estate entities as a component of net realized and unrealized gains (losses) on investments and other transactions and net realized and unrealized gains (losses) on derivatives, respectively, in the accompanying consolidated statements of operations.

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.

Reimbursement from affiliates

The Company allocates, at its discretion, certain expenses incurred on behalf of its investment management businesses. These expenses relate to the administration of such subsidiaries and assets that the Company manages for its investment funds. In addition, pursuant to the investment funds' offering documents, the Company charges certain allowable expenses to the investment funds, including charges and personnel costs for legal, compliance, accounting, tax compliance, risk and technology expenses that directly relate to administering the assets of the investment funds. Such expenses that have been reimbursed at their actual costs are included in the accompanying consolidated statements of operations as employee compensation and benefits, professional, advisory and other fees, communications, occupancy and equipment, client services and business development and other expenses.

Reinsurance-related contracts

        Premiums for reinsurance-related 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 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 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 consolidated statements of financial condition.

Impacts of adopting ASC Topic 606

The following tables summarize the impacts of adopting ASC Topic 606 on the Company’s consolidated financial statements.

Consolidated Statements of Financial Condition	As of December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Assets
Fees receivable, net of allowance	$	111,946	$	17,995	$	129,941
Other investments	181,407		(17,995)		163,412
Stockholder's equity	$	794,407	$	1,002	$	795,409

Consolidated Statements of Operation	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Revenues
Investment banking	$	357,222	$	(28,160)	$	329,062
Incentive income	3,117		15,911		19,028
Total revenues	966,916		(12,249)		954,667
Expenses
Underwriting expenses	15,282		(15,282)		—
Professional, advisory and other fees	40,957		(7,861)		33,096
Service fees	20,198		(42)		20,156
Communications	30,801		(1,449)		29,352
Occupancy and equipment	41,602		(14)		41,588
Client services and business development	35,927		(3,373)		32,554
Other expenses	22,014		(139)		21,875
Total expenses	890,944		(28,160)		862,784
Net gains (losses) on securities, derivatives and other investments	68,043		15,469		83,512
Net income (loss) attributable to Cowen Inc. common stockholders	$	36,027	$	442	$	36,469

Consolidated Statements of Cash Flows	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Cash flows from operating activities:
Net income (loss)	$	79,879	$	442	$	80,321
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Net (gains) losses on securities, derivatives, and other investments	(54,032)		12,331		(41,701)
(Increase) decrease in operating assets:
Fees receivable, net of allowance	(6,401)		(11,962)		(18,363)
Net cash provided by / (used in) operating activities	324,176		811		324,987
Cash flows from investing activities:
Purchase of other investments	(28,092)		(812)		(28,904)
Net cash provided by / (used in) investing activities	$	(17,882)	$	(812)	$	(18,694)

(a) The amounts reflected above represent items as they would have been reported prior to adoption of ASC 606.

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.

w. Share-based compensation

The Company accounts for its share-based awards granted to individuals as payment for employee services and values such awards based on grant date fair value. Unearned compensation associated with share-based awards is amortized over the vesting period of the option or award. The Company estimates forfeiture for equity-based awards that are not expected to vest. See Note 19 for further information regarding the Company's share-based compensation plans.

x. 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 our deferred tax assets for recoverability considering negative and positive evidence, including our 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 our deferred tax assets to bring them to a level that it is more likely than not to be utilized. In evaluating the need for a valuation allowance, the Company estimates future taxable income based on management-approved business plans. This process involves significant management judgment about assumptions that are subject to change from period to period. Because the recognition of deferred tax assets requires management to make significant judgments about future earnings, the periods in which items will impact taxable income and the application of inherently complex tax laws, we have identified the assessment of deferred tax assets and the need for any related valuation allowance as a critical accounting estimate.

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 resident in foreign countries where tax filings have to be submitted on a stand-alone or combined 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 in the consolidated statement of operations. The countries where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Germany, Switzerland, South Africa, Canada and Hong Kong.

y. Foreign currency transactions

The Company consolidates certain foreign subsidiaries that have designated a foreign currency as their functional currency. For entities that have designated a foreign currency as their functional currency, assets and liabilities are translated into U.S. dollars based on current rates, which are the spot rates prevailing at the end of each statement of financial condition date, and revenues and expenses are translated at historical rates, which are the average rates for the relevant periods. The resulting translation gains and losses, and the tax effects of such gains and losses, are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity.

For subsidiaries that have designated the U.S. Dollar as their functional currency, securities and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollar amounts at the date of valuation. Purchases and sales of securities and other assets and liabilities and the related income and expenses denominated in foreign currencies are translated into U.S. Dollar amounts on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on these balances from fluctuations arising from changes in market prices of securities and other assets/liabilities held or sold. Such fluctuations are included in the accompanying consolidated statements of operations as a component of net gains (losses) on securities, derivatives and other investments. Gains and losses primarily relating to foreign currency broker balances are included in other income (loss) in the accompanying consolidated statements of operations.

z. Recent pronouncements

Recently adopted

In 2018, the FASB issued guidance related to the Tax Cuts and Jobs Act of 2017 ("TCJ Act") for the optional reclassification of the residual tax effects, arising from the change in corporate tax rate, in accumulated other comprehensive loss to retained earnings. The reclassification is the difference between the amount previously recorded in other comprehensive income at the historical U.S. federal tax rate that remains in accumulated other comprehensive loss at the time the TCJ Act was effective and the amount that would have been recorded using the newly enacted rate. This guidance became effective during the first quarter of 2019; however, the Company did not elect to make the optional reclassification.

In 2018, the FASB issued final guidance aligning the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which may lower their cost and reduce volatility in the income statement. The guidance became effective during the first quarter of 2019 and impacted the Company's recognition and measurement of the retention bonus pool established in connection with the Company's acquisition of Quarton International AG, which includes share-based payment to employees and nonemployees. Please refer to Note 3 for more information.

In 2018, as part of its disclosure framework project, the FASB amended the disclosure requirements for fair value measurement. The amendments update and eliminate various disclosure requirements that improve the overall usefulness of the disclosure requirement for financial statement users and reduce costs by eliminating disclosures that may not be useful. The new guidance eliminates the requirement to disclose the amounts and reasons for transfers between level 1 and level 2 of the fair value hierarchy and modifies the disclosure requirement relating to investments in funds at NAV. The Company early adopted this guidance in 2019 and it did not have a material impact on the Company's consolidated financial statements.

In 2017, the FASB issued guidance to amend the amortization period for certain purchased callable debt securities held at a premium. Under prior guidance, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. The new guidance shortened the amortization period for the premium to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This guidance became effective during the first quarter of 2019; however, the guidance did not have an impact on the Company's financials as it does not have investments in callable debt securities measured on an amortized cost basis.

In 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entitites to compute the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019. Please refer to Note 2v for more information.

In 2016, the FASB issued guidance that amends and supersedes its previous guidance regarding leases. The new guidance requires the lessee to recognize the right to use lease assets and lease liabilities that arise from leases greater than one year, and present them in its statement of financial condition. The guidance became effective during the first quarter of 2019. Please refer to Note 22 for more information.

Recently issued

        In October 2018, the FASB issued guidance that made targeted changes to the related party consolidation guidance.  The new guidance changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity will consider indirect interests held through related parties under common control on a proportionate basis under the new guidance, rather than in their entirety, as has been the case under current guidance. The guidance is effective in annual periods beginning after December 15, 2019 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance and does not expect this guidance to have a material impact on its consolidated statements of financial condition or its consolidated statements of operations.

In August 2018, the FASB issued guidance for accounting for upfront costs and fees paid by a customer in a cloud computing arrangement. The guidance requires capitalization of implementation costs incurred in connection with a hosting arrangement or the development or obtainment of internal use software. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years for any implementation costs incurred after adoption. The Company is currently evaluating the impact of this guidance on the Company's consolidated financial statements and does not expect this guidance to have a material impact on its consolidated statements of financial condition or its consolidated statements of operations.

In June 2016, the FASB issued guidance that impacts 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. The Company has performed a scoping assessment and identified securities borrowed and other financial instruments carried at amortized cost as impacted. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances, e.g., based on collateral arrangements for lending and financing transactions or based on the credit quality of the borrower or issuer. For securities borrowed, the Company will apply 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 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 CECL model will be applied only to the shortfall between the fair value of the collateral and amortized cost. For public companies, the guidance is effective for reporting periods beginning after December 15, 2019 and interim periods within those fiscal years.  Based on the Company's scoping analysis and impact assessment, the Company does not expect the increase in the allowance for credit losses, resulting from the adoption of this standard, to be significant to its consolidated statements of financial condition or its consolidated statements of operations.

In December 2019, the FASB issued guidance simplifying the accounting for income taxes. The guidance simplifies the accounting for income taxes by removing the exceptions (i) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income), (ii) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (iii) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and (iv) general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally the guidance requires that an entity (a) recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (b) evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction and (c) reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date as well as specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. The guidance also makes minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of this guidance on the Company's consolidated financial statements.

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Investments of Operating Entities and Consolidated Funds - Securities Sold, Not Yet Purchased (Details) - USD ($)		Dec. 31, 2019	Dec. 31, 2018
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value		$ 451,836,000	$ 195,307,000
Common Stock
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value		425,448,000	194,305,000
Corporate Bonds
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	[1]	$ 5,933,000	$ 750,000
Corporate Bonds | Minimum
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, interest rate		4.88%	2.25%
Corporate Bonds | Maximum
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, interest rate		6.25%	9.38%
Government Securities | Minimum
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, interest rate		7.00%
Government Securities | Maximum
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, interest rate		8.25%
US Government Debt Securities
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value	[2]	$ 1,950,000	$ 0
Preferred Stock
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value		3,686,000	199,000
Warrants and Rights
Investments Sold, Not yet Purchased [Line Items]
Securities sold, not yet purchased, at fair value		$ 14,819,000	$ 53,000

[1] As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%. As of December 31, 2018, the maturities ranged from October 2022 to January 2034 and interest rates ranged from 2.25% to 9.38%.

[2] As of December 31, 2019, the maturities ranged from October 2024 to March 2038 and interest rates ranged from 7.00% to 8.25%.

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Fair Value Measurements for Operating Entities and Consolidated Funds Fair Value Inputs, Unobservable Inputs, Quantitative Information (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Contingent liability payable
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value		$ 30,896	$ 3,070	$ 3,440
Corporate Bonds
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		2,421	0
Balance Liability Value		1,000	0
Trade Claims
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		7,320	5,543	5,950
Warrants and Rights [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		594	1,666	2,517
Options
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		336	0	$ 1,455
Level 3
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		48,432	54,914
Balance Liability Value		$ 36,766	5,166
Level 3 | Contingent liability payable | Monte Carlo [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		17.00%
Weighted average percent Fair Value technique		17.00%
Level 3 | Contingent liability payable | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value			$ 3,070
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		15.00%	23.00%
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		15.00%	21.00%
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		22.00%	23.00%
Level 3 | Other Liabilities [Member] | Income Approach and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value	[1]	$ 2,950
Level 3 | Corporate Bonds | Income Approach and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		311
Level 3 | Common and Preferred Stock | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 10,876	$ 4,323
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		10.40%	8.00%
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		8.00%	8.00%
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		11.25%	14.00%
Level 3 | Common and Preferred Stock | Valuation, Market Approach
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		675.00%	6.75%
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		650.00%	650.00%
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		700.00%	700.00%
Level 3 | Trade Claims | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 24	$ 25
Level 3 | Warrants and Rights [Member] | Income Approach and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 6,162
Level 3 | Warrants and Rights [Member] | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value			$ 1,666
Level 3 | Warrants and Rights [Member] | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		6.10%	7.80%
Level 3 | Warrants and Rights [Member] | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		6.00%	7.00%
Level 3 | Warrants and Rights [Member] | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		7.00%	9.00%
Level 3 | Other Investments | Income Approach and Market Approach Valuation Techniques
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value	[1]	$ 30,723
Level 3 | Other Investments | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value	[1]		$ 48,900
Level 3 | Options | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Asset Value		$ 336
Level 3 | Options | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		10.50%
Level 3 | Options | Valuation Technique, Discounted Cash Flow | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		9.75%
Level 3 | Options | Valuation Technique, Discounted Cash Flow | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		11.25%
Level 3 | Bonds | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		20.00%
Weighted average percent Fair Value technique		20.00%
Level 3 | Bonds | Probability of recovery valuation technique
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		2.30%
Level 3 | Bonds | Probability of recovery valuation technique | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		1.00%
Level 3 | Bonds | Probability of recovery valuation technique | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		3.00%
Level 3 | Options | Valuation, Market Approach
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		675.00%
Level 3 | Options | Valuation, Market Approach | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		650.00%
Level 3 | Options | Valuation, Market Approach | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		700.00%
Level 3 | Option | Options
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Balance Liability Value		$ 2,920
Fair Value, Measurements, Recurring | Level 3 | Option | Options | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member]
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Financial Liabilities Fair Value Disclosure			$ 2,096
Discount rate | Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		20.00%	20.00%
Weighted average percent Fair Value technique		20.00%	20.00%
Volatility | Level 3 | Warrants and Rights [Member] | Market Approach Valuation Technique
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		30.00%
Weighted average percent Fair Value technique		0.00%
Volatility | Level 3 | Option | Market Approach Valuation Technique
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Weighted average percent Fair Value technique		35.00%	35.00%
Volatility | Level 3 | Option | Market Approach Valuation Technique | Minimum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		35.00%	35.00%
Volatility | Level 3 | Option | Market Approach Valuation Technique | Maximum
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items]
Fair value inputs		40.00%	40.00%

[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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Investments of Operating Entities and Consolidated Funds - Merger Master Derivatives (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Derivative Asset		$ 62,977	$ 25,125
Derivative Liability		60,761	16,082
Merger Master
Derivative [Line Items]
Derivative Asset		2,453	8,770
Derivative Liability		1,426	1,728
Option
Derivative [Line Items]
Derivative Liability	[1]	36,524	13,211
Option | Merger Master
Derivative [Line Items]
Derivative Liability		1,158	1,430
Options
Derivative [Line Items]
Derivative Asset	[2]	60,066	23,130
Options | Merger Master
Derivative [Line Items]
Derivative Asset		2,047	3,450
Swaps
Derivative [Line Items]
Derivative Asset		2,911	917
Derivative Liability		23,169	2,162
Swaps | Merger Master
Derivative [Line Items]
Derivative Asset		406	5,320
Derivative Liability		268	28
Currency Forwards
Derivative [Line Items]
Derivative Asset		0	1
Derivative Liability		851	709
Currency Forwards | Merger Master
Derivative [Line Items]
Derivative Liability		$ 0	$ 270

[1] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

[2] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

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Investments of Operating Entities and Consolidated Funds - Derivatives (Details)			12 Months Ended
		Dec. 05, 2016	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract	Dec. 31, 2017 USD ($)
Derivative [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio		0.25
Receivable on derivative contracts, at fair value			$ 62,977,000	$ 25,125,000
Payable for derivative contracts, at fair value			60,761,000	16,082,000
Receivable on derivative contracts, at fair value			5,833,000	4,416,000
Payable for derivative contracts, at fair value, Consolidated Funds			4,769,000	1,663,000
Payables to brokers, dealers and clearing organizations			271,018,000	228,731,000
Receivable from brokers, dealers and clearing organizations, net of allowance of $721 and $472, respectively			681,695,000	786,113,000
Equity Swap
Derivative [Line Items]
Receivable on derivative contracts, at fair value			927,000	2,477,000
Payable for derivative contracts, at fair value, Consolidated Funds			3,931,000	713,000
Futures
Derivative [Line Items]
Derivative Asset, Notional Amount			0	42,288,000
Receivable on derivative contracts, at fair value			0	334,000
Derivative Liability, Notional Amount			10,224,000	0
Payable for derivative contracts, at fair value			217,000	0
Currency Forwards
Derivative [Line Items]
Derivative Asset, Notional Amount			0	395,000
Receivable on derivative contracts, at fair value			0	1,000
Derivative Liability, Notional Amount			77,790,000	96,406,000
Payable for derivative contracts, at fair value			851,000	709,000
Receivable on derivative contracts, at fair value			3,302,000	186,000
Payable for derivative contracts, at fair value, Consolidated Funds			88,000	96,000
Swaps
Derivative [Line Items]
Derivative Asset, Notional Amount			383,752,000	13,702,000
Receivable on derivative contracts, at fair value			2,911,000	917,000
Derivative Liability, Notional Amount			607,717,000	52,905,000
Payable for derivative contracts, at fair value			$ 23,169,000	$ 2,162,000
Options
Derivative [Line Items]
Derivative Asset, Number of Instruments Held | contract	[1]		550,188	654,506
Receivable on derivative contracts, at fair value	[1]		$ 60,066,000	$ 23,130,000
Receivable on derivative contracts, at fair value			1,604,000	1,753,000
Payable for derivative contracts, at fair value, Consolidated Funds			$ 750,000	$ 854,000
Option
Derivative [Line Items]
Derivative Liability, Number of Instruments Held | contract	[2]		306,306	90,730
Payable for derivative contracts, at fair value	[2]		$ 36,524,000	$ 13,211,000
Pay to hold
Derivative [Line Items]
Derivative Asset, Number of Instruments Held | contract			0	0
Receivable on derivative contracts, at fair value			$ 0	$ 743,000
Receivable on derivatives contracts, at fair value [Member]
Derivative [Line Items]
Receivable on derivative contracts, at fair value			62,977,000	25,125,000
Derivative Asset, Fair Value, Gross Asset			66,217,000	25,125,000
Derivative Asset, Fair Value, Amount Offset Against Collateral	[3]		3,240,000	0
Financial Instruments, Owned and Pledged as Collateral, at Fair Value			0	0
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[4]		2,911,000	1,662,000
Derivative asset, net of offset			60,066,000	23,463,000
Payable for derivatives contracts, at fair value [Member]
Derivative [Line Items]
Payable for derivative contracts, at fair value			60,761,000	16,082,000
Financial Instruments, Owned and Pledged as Collateral, at Fair Value			0	0
Derivative Liability, Fair Value, Gross Liability			64,001,000	16,082,000
Derivative Liability, Fair Value, Amount Offset Against Collateral	[3]		3,240,000	0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	[4]		24,020,000	2,871,000
Derivative Liability, net of offset			36,741,000	13,211,000
Receivables from Brokers-Dealers and Clearing Organizations
Derivative [Line Items]
Collateral posted			10,500,000	11,200,000
Other Income [Member]
Derivative [Line Items]
Realized and unrealized gains/(losses) related to derivatives trading activities			$ (13,000,000.0)	$ 14,300,000	$ 3,900,000

[1] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

[2] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

[3] Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.

[4] Includes the amount of collateral held or posted.

XML

Receivable from and Payable to Customers (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Receivables and Payable to Customers [Abstract]
Receivable from customers	$ 105,647	$ 37,858
Payable to customers	$ 430,224	$ 525,153

XML

Investments of Operating Entities and Consolidated Funds - Indirect Concentration of the Underlying Investments Held by Consolidated Funds (Details) $ in Thousands	Dec. 31, 2019 USD ($) investments	Dec. 31, 2018 USD ($) investments
Investment [Line Items]
Concentration of risk, number of investments | investments	1	1
Equity Securities | Linkem | ITALY | 517312 Wireless Telecommunications Carriers (except Satellite) [Member]
Investment [Line Items]
Percentage of Stockholders' Equity	8.94%	8.36%
Market Value | $	$ 72,404	$ 66,439

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 55,870	$ 79,879	$ (37,091)
Other comprehensive income (loss), net of tax:
Foreign currency translation	0	3	(6)
Total other comprehensive income (loss), net of tax	0	3	(6)
Comprehensive income (loss)	55,870	79,882	(37,097)
Net Income (Loss) Attributable to Noncontrolling Interest	31,239	37,060	23,791
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 24,631	$ 42,822	$ (60,888)

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 03, 2020	Jun. 30, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
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	212
Local Phone Number	845-7900
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 488,181,217
Entity Common Stock, Shares Outstanding		28,656,136
Entity Central Index Key	0001466538
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Class A Common Stock, par value $0.01 per share | 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
7.35% Senior Notes due 2027 | The Nasdaq Global Market
Entity Information [Line Items]
Title of 12(b) Security	7.35% Senior Notes due 2027
Trading Symbol	COWNZ
Security Exchange Name	NASDAQ
7.75% Senior Notes due 2033 | 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

Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangibles [Abstract]

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The estimated future amortization expense for the Company's intangible assets placed in service as of December 31, 2019 is as follows:

	(dollars in thousands)
2020	$	13,035
2021	6,735
2022	5,120
2023	3,006
2024	2,707
Thereafter	4,597
	$	35,200

Intangible Assets Disclosure [Text Block]

Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2019 and 2018.

		December 31, 2019						December 31, 2018
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in thousands)						(in thousands)
Trade names	2.6 - 3	$	960	$	(360)	$	600	$	10,622	$	(10,599)	$	23
Customer relationships	2 - 14	51,724		(21,065)		30,659		41,134		(18,960)		22,174
Customer contracts	1.2	—		—		—		800		(800)		—
Non compete agreements and covenants with limiting conditions acquired	5	400		(347)		53		2,237		(2,055)		182
Intellectual property	8	1,188		(119)		1,069		—		—		—
Acquired software	3 - 10	7,323		(4,504)		2,819		8,243		(5,679)		2,564
		$	61,595	$	(26,395)	$	35,200	$	63,036	$	(38,093)	$	24,943

Goodwill Disclosure [Text Block]

The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2019 and 2018:

	Investment Management		Investment Bank		Cowen Investment Management		Asset Co		Total
	(dollars in thousands)
Beginning balance - December 31, 2017
Goodwill	$	29,026	$	51,337	$	—	$	—	80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2018
Recognized goodwill	—		—		—		—		—
Goodwill impairment charges	—		—		—		—		—
Ending balance: December 31, 2018
Goodwill	29,026		51,337		—		—		80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2019
Recognized goodwill (See note 3)	—		81,150		—		—		81,150
Realignment of segment goodwill:
Goodwill	(29,026)		—		22,705		6,321		—
Accumulated impairment charges	10,200		—		(7,979)		(2,221)		—
Goodwill impairment charges	—		—		—		(4,100)		(4,100)
Ending balance: December 31, 2019
Goodwill	—		132,487		22,705		6,321		161,513
Accumulated impairment charges	—		(9,485)		(7,979)		(6,321)		(23,785)
Net	$	—	$	123,002	$	14,726	$	—	$	137,728

XML

Investments of Operating Entities and Consolidated Funds - (Tables)

12 Months Ended

Dec. 31, 2019

Investment Holdings [Line Items]

Carried Interest

The carried interest as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Cowen Healthcare Investments II LP (*)	$	23,759	$	6,778
Other private investment (a) (*)	4,737		4,273
RCG IO Renergys Sarl	1,251		6,369
Ramius Multi-Strategy Fund LP (*)	613		575
	$	30,360	$	17,995

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

* These carried interest balances are earned from affiliates of the Company.

Marketable Securities

As of December 31, 2019 and 2018, securities owned, at fair value consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Common stock (*)	$	1,546,484	$	472,299
Preferred stock (*)	12,656		5,617
Warrants and rights (*)	22,109		7,990
Government bonds (a)	15,916		13,398
Corporate bonds (c)	25,500		13,041
Convertible bonds (b) (*)	2,500		3,000
Term loan (*)	1,067		—
Trade claims (*)	7,320		5,543
	$	1,633,552	$	520,888

(a)As of December 31, 2019, maturities ranged from January 2020 to June 2020 with an interest rate of 0%. As of December 31, 2018, maturities ranged from April 2019 to August 2019 with an interest rate of 0%.

(b)As of December 31, 2019, maturities ranged from April 2020 to March 2022 with an interest rate of 8%. As of December 31, 2018, the maturity was June 2020 with an interest rate of 8%.

(c)As of December 31, 2019, maturities ranged from January 2020 to May 2037 and interest rates ranged from 0% to 15%. As of December 31, 2018, maturities ranged from April 2019 to April 2049 and interest rates ranged from 2% to 15.5%.

* The Company has elected the fair value option for securities owned, at fair value with a fair value of $14.9 million and $9.4 million, respectively, at December 31, 2019 and 2018.

Schedule of Derivative Instruments

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

Receivable on derivative contracts	As of December 31,
	2019				2018
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	—	$	—	$	42,288	$	334
Currency forwards	$	—	—		$	395	1
Swaps	$	383,752	2,911		$	13,702	917
Options other (a)	550,188		60,066		654,506		23,130
Pay to hold	$	—	—		$	—	743
			$	62,977			$	25,125

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

Payable for derivative contracts	As of December 31,
	2019				2018
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	10,224	$	217	$	—	$	—
Currency forwards	$	77,790	851		$	96,406	709
Swaps	$	607,717	23,169		$	52,905	2,162
Options other (a)	306,306		36,524		90,730		13,211
			$	60,761			$	16,082

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

The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2019 and 2018. This table does not include the impact of over-collateralization.

							Gross amounts not offset in the Consolidated Statements of Financial Condition
	Gross amounts recognized		Gross amounts offset on the Consolidated Statements of Financial Condition (a)		Net amounts included on the Consolidated Statements of Financial Condition		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of December 31, 2019
Receivable on derivative contracts, at fair value	$	66,217	$	3,240	$	62,977	$	—	$	2,911	$	60,066
Payable for derivative contracts, at fair value	64,001		3,240		60,761		—		24,020		36,741
As of December 31, 2018
Receivable on derivative contracts, at fair value	$	25,125	$	—	$	25,125	$	—	$	1,662	$	23,463
Payable for derivative contracts, at fair value	16,082		—		16,082		—		2,871		13,211

(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 collateral held or posted.

Schedule of Other Investments

As of December 31, 2019 and 2018, other investments included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Portfolio funds, at fair value (1)	$	114,504	$	124,741
Carried interest (2)	30,360		17,995
Equity method investments (3)	40,858		38,671
	$	185,722	$	181,407

Schedule of Other Investments, Portfolio Funds

The Portfolio Funds, at fair value as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Starboard Value and Opportunity Fund LP (c)(*)	$	37,895	$	32,579
Formation8 Partners Fund I, L.P. (f)	33,613		34,099
RCG Longview Debt Fund V, L.P. (g)(*)	1,732		4,394
RCG Longview II LP (g) (*)	110		4,400
Cowen Healthcare Investments II LP (i) (*)	14,652		14,939
Eclipse Ventures Fund I, L.P. (b)	3,960		4,412
HealthCare Royalty Partners LP (a)(*)	1,326		1,833
Lagunita Biosciences, LLC (d)	4,802		3,833
Starboard Leaders Fund LP (e)(*)	1,560		1,230
Eclipse SPV I, LP (j)(*)	1,447		1,447
Triartisan ES Partners LLC (k)(*)	1,082		1,500
Triartisan PFC Partners LLC (l)(*)	909		—
RCG Longview Equity Fund, LP (g) (*)	835		802
RCG Longview Debt Fund VI, LP (g) (*)	—		1,586
RCG Park Liberty GP Member LLC (g) (*)	—		1,023
HealthCare Royalty Partners II LP (a)(*)	1,781		1,037
RCGL PE MPA, LLC (g)(*)	—		618
RCG LPP2 PNW5 Co-Invest, L.P. (h)(*)	—		296
Cowen Healthcare Investments III LP	1,398		—
Difesa Partners, LP (o) (*)	508		—
Other private investment (m)(*)	4,448		11,625
Other affiliated funds (n)(*)	2,446		3,088
	$	114,504	$	124,741

* 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)Eclipse Ventures Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated.

(c)Starboard Value and Opportunity Fund LP 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)RCG Longview Debt Fund V, L.P., RCG Longview II LP, RCG Park Liberty GP Member LLC, RCG Longview Equity Fund, LP, RCGL PE MPA, LLC and RCG Longview Debt Fund VI, LP are real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated.

(h)RCG LPP2 PNW5 Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired five multi-unit residential rental properties located in the Pacific Northwest. RCG LPP2 PNW5 Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

(i)Cowen Healthcare Investments II LP is a private equity fund.  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)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.

(n)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.

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

Schedule Equity Method Investments

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

	As of December 31,
	2019		2018
	(dollars in thousands)
Surf House Ocean Views Holdings, LLC	$	7,804	$	7,589
Starboard Value LP	24,292		12,699
RCG Longview Debt Fund V Partners, LLC	2,889		11,000
RCG Longview Management, LLC	583		1,167
RCG Longview Debt Fund VI Partners LLC	—		1,254
HealthCare Royalty GP, LLC	108		149
HealthCare Royalty GP II, LLC	302		176
RCG Longview Debt Fund IV Management, LLC	331		331
HealthCare Royalty GP III, LLC	2,230		1,573
RCG Kennedy House, LLC	—		131
RCG Longview Equity Management, LLC	105		114
RCG LPP II GP, LLC	—		272
RCG Park Liberty GP Member Manager, LLC	—		1,248
HCR Stafford Fund GP, LLC	880		—
Liberty Harbor North	292		—
Other	1,042		968
	$	40,858	$	38,671

Schedule of Securities Sold, Not yet Purchased

As of December 31, 2019 and 2018, securities sold, not yet purchased, at fair value consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Common stock	$	425,448	$	194,305
Corporate bonds (a)	5,933		750
Government bonds (b)	1,950		—
Preferred stock	3,686		199
Warrants and rights	14,819		53
	$	451,836	$	195,307

(a)As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%. As of December 31, 2018, the maturities ranged from October 2022 to January 2034 and interest rates ranged from 2.25% to 9.38%.

(b)As of December 31, 2019, the maturities ranged from October 2024 to March 2038 and interest rates ranged from 7.00% to 8.25%.

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 December 31, 2019 and 2018.

							Gross amounts not offset on the Consolidated Statements of Financial Condition
	Gross amounts recognized		Gross amounts offset on the Consolidated Statements of Financial Condition (a)		Net amounts included on the Consolidated Statements of Financial Condition		Additional Amounts Available		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of December 31, 2019
Securities borrowed	$	754,441	$	—	$	754,441	$	—	$	751,913	$	—	$	2,528
Securities loaned	1,601,866		—		1,601,866		—		1,585,036		—		16,830
Securities sold under agreements to repurchase	23,244		—		23,244		—		27,384		—		(4,140)
As of December 31, 2018
Securities borrowed	$	407,795	$	—	$	407,795	$	—	$	383,593	$	—	$	24,202
Securities loaned	414,852		—		414,852		—		391,310		—		23,542

(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 December 31, 2019 and 2018:

	Open and Overnight		Up to 30 days		31 - 90 days		Greater than 90 days		Total
	(dollars in thousands)
As of December 31, 2019
Securities loaned
Common stock	$	1,343,478	$	—	$	—	$	—	$	1,343,478
Corporate bonds	258,388		—		—		—		258,388
Securities sold under agreements to repurchase	—		—		23,244		—		23,244
As of December 31, 2018
Securities loaned
Common stock	$	414,852	$	—	$	—	$	—	$	414,852

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 December 31, 2019	Linkem	Equity	Italy	Wireless Broadband	8.94	%	$	72,404
As of December 31, 2018	Linkem	Equity	Italy	Wireless Broadband	8.36	%	$	66,439

Significant subsidiary - equity method [Member]

Investment Holdings [Line Items]

Schedule Equity Method Investments

For the period ended December 31, 2019, certain investments subject to Regulation S-X Rule 4-08(g) held by the Company in aggregate have met the significance criteria as defined under SEC guidance. As such, the Company is required to present summarized financial information for these significant investees for the years ended December 31, 2019, 2018, and 2017, and such information is as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Assets	$	1,374,077	$	1,189,669
Liabilities	205,873		244,088
Equity	$	1,168,204	$	945,581

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Revenues	$	200,854	$	105,499	$	165,550
Expenses	(79,811)		(67,893)		(62,175)
Net realized and unrealized gains (losses)	221,616		95,855		133,695
Income (loss) before income taxes	342,659		133,461		237,070
Income tax expense	(2,234)		(51)		(99)
Net income	$	340,425	$	133,410	$	236,971

Consolidated Funds

Investment Holdings [Line Items]

Marketable Securities

As of December 31, 2019 and 2018, securities owned, at fair value, held by the Consolidated Funds consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Preferred stock	$	4,393	$	24,314
Common stock	200,306		95,565
Government bonds (a)	161,607		38,377
Corporate bonds (b)	3,405		24,098
Warrants and rights	5,567		5,279
	$	375,278	$	187,633

(a)As of December 31, 2019, maturities ranged from February 2020 to March 2020 and interest rates were 0%. As of December 31, 2018, maturities ranged from January 2019 to April 2019 and interest rates were 0%.

(b)As of December 31, 2019, the maturity was July 2023 with an interest rate of 7.50%. As of December 31, 2018, maturities ranged from August 2020 to March 2026 and interest rates ranged from 5.88% to 7.63%.

Schedule of Derivative Instruments

As of December 31, 2019 and 2018, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:

	As of December 31,
	2019		2018
	(dollars in thousands)
Currency forwards	$	3,302	$	186
Equity swaps	927		2,477
Options	1,604		1,753
	$	5,833	$	4,416

Payable for derivative contracts

As of December 31, 2019 and 2018, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:

	As of December 31,
	2019		2018
	(dollars in thousands)
Currency forwards	$	88	$	96
Equity swaps	3,931		713
Options	750		854
	$	4,769	$	1,663

Schedule of Other Investments, Portfolio Funds

Investments in Portfolio Funds, at fair value

As of December 31, 2019 and 2018, investments in Portfolio Funds, at fair value, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Investments of Enterprise LP	$	99,153	$	97,656
Investments of Merger Fund	76,616		88,739
	$	175,769	$	186,395

Enterprise Master

Investment Holdings [Line Items]

Marketable Securities

Securities owned by Enterprise Master, at fair value

	As of December 31,
	2018
	(dollars in thousands)
Common stock	$	469
	$	469

Schedule of Other Investments, Portfolio Funds

Portfolio Funds, owned by Enterprise Master, at fair value

		As of December 31, 2018
	Strategy	(dollars in thousands)
RCG Special Opportunities Fund, Ltd*	Multi-Strategy	$	111,548
Other Private Investments	Various	846
		$	112,394

* Affiliates of the Company.

Merger Master

Investment Holdings [Line Items]

Marketable Securities

Merger Master

	As of December 31,
	2019		2018
	(dollars in thousands)
Securities owned by Merger Master, at fair value
Common stock	$	76,531	$	162,811
Warrants and rights	748		—
Corporate bonds	2,074		116,488
	$	79,353	$	279,299
Securities sold, not yet purchased, by Merger Master, at fair value
Common stock	$	29,623	$	4,959
Exchange traded funds	38,527		4,651
	$	68,150	$	9,610

Schedule of Derivative Instruments

Receivable on derivative contracts, at fair value, owned by Merger Master

	As of December 31,
	2019		2018
Description	(dollars in thousands)
Options	$	2,047	$	3,450
Equity swaps	406		5,320
	$	2,453	$	8,770

Payable for derivative contracts, at fair value, owned by Merger Master

	As of December 31,
	2019		2018
Description	(dollars in thousands)
Options	$	1,158	$	1,430
Currency forwards	—		270
Equity swaps	268		28
	$	1,426	$	1,728

XML

Investments of Operating Entities and Consolidated Funds - Securities Owned at Fair Value (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Investment Holdings [Line Items]
Securities owned, at fair value ($112,451 and $57,583 were pledged to various parties)		$ 1,633,552	$ 520,888
Securities owned, at fair value		375,278	187,633
Estimate of Fair Value Measurement [Member]
Investment Holdings [Line Items]
Securities owned, at fair value ($112,451 and $57,583 were pledged to various parties)		14,900	9,400
Clawback Obligation
Investment Holdings [Line Items]
Other Commitment			6,500
Schedule of Equity Method Investments [Line Items]
Other Commitment			6,500
Preferred Stock
Investment Holdings [Line Items]
Trading Securities, Equity	[1]	12,656	5,617
Securities owned, at fair value		4,393	24,314
Common Stock
Investment Holdings [Line Items]
Trading Securities, Equity	[1]	1,546,484	472,299
Securities owned, at fair value		200,306	95,565
Warrants and Rights
Investment Holdings [Line Items]
Trading Securities, Equity	[1]	22,109	7,990
Securities owned, at fair value		5,567	5,279
Government Securities
Investment Holdings [Line Items]
Debt Securities, Trading	[2]	$ 15,916	$ 13,398
Investment Interest Rate		0.00%	0.00%
Securities owned, at fair value	[3]	$ 161,607	$ 38,377
Corporate Bonds
Investment Holdings [Line Items]
Debt Securities, Trading	[4]	25,500	13,041
Securities owned, at fair value	[5]	$ 3,405	$ 24,098
Corporate Bonds | Minimum
Investment Holdings [Line Items]
Investment Interest Rate		0.00%	2.00%
Corporate Bonds | Maximum
Investment Holdings [Line Items]
Investment Interest Rate		15.00%	15.50%
Convertible Bonds
Investment Holdings [Line Items]
Debt Securities, Trading	[1],[6]	$ 2,500	$ 3,000
Investment Interest Rate		8.00%	8.00%
Trade Claims
Investment Holdings [Line Items]
Debt Securities, Trading	[1]	$ 7,320	$ 5,543
Loans
Investment Holdings [Line Items]
Debt Securities, Trading	[1]	$ 1,067	$ 0
Consolidated Funds | Government Securities
Investment Holdings [Line Items]
Investment Interest Rate		0.00%	0.00%
Consolidated Funds | Corporate Bonds
Investment Holdings [Line Items]
Investment Interest Rate		7.50%
Consolidated Funds | Corporate Bonds | Minimum
Investment Holdings [Line Items]
Investment Interest Rate			5.88%
Consolidated Funds | Corporate Bonds | Maximum
Investment Holdings [Line Items]
Investment Interest Rate			7.63%
Enterprise Master
Investment Holdings [Line Items]
Securities owned, at fair value ($112,451 and $57,583 were pledged to various parties)			$ 469
Enterprise Master | Common Stock
Investment Holdings [Line Items]
Securities owned, at fair value ($112,451 and $57,583 were pledged to various parties)			469
RCG Longview Partners II, LLC | Clawback Obligation
Investment Holdings [Line Items]
Other Commitment			6,500
Schedule of Equity Method Investments [Line Items]
Other Commitment			$ 6,500

[1] * The Company has elected the fair value option for securities owned, at fair value with a fair value of $14.9 million and $9.4 million, respectively, at December 31, 2019 and 2018.

[2] As of December 31, 2019, maturities ranged from January 2020 to June 2020 with an interest rate of 0%. As of December 31, 2018, maturities ranged from April 2019 to August 2019 with an interest rate of 0%.

[3] As of December 31, 2019, maturities ranged from February 2020 to March 2020 and interest rates were 0%. As of December 31, 2018, maturities ranged from January 2019 to April 2019 and interest rates were 0%.

[4] As of December 31, 2019, maturities ranged from January 2020 to May 2037 and interest rates ranged from 0% to 15%. As of December 31, 2018, maturities ranged from April 2019 to April 2049 and interest rates ranged from 2% to 15.5%.

[5] As of December 31, 2019, the maturity was July 2023 with an interest rate of 7.50%. As of December 31, 2018, maturities ranged from August 2020 to March 2026 and interest rates ranged from 5.88% to 7.63%.

[6] As of December 31, 2019, maturities ranged from April 2020 to March 2022 with an interest rate of 8%. As of December 31, 2018, the maturity was June 2020 with an interest rate of 8%

XML

Share-Based Compensation and Employee Ownership Plans Deferred Cash (Details) - Cowen Group, Inc. 2010 Equity and Incentive Plan - Deferred Cash Award $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred cash awards granted	$ 42.5
Deferred cash awards, vesting period	4 years
Deferred cash award, interest rate	0.70%
Deferred cash awards, unrecognized compensation expense	$ 60.3

XML

Significant Accounting Policies - Annual (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) cowenfund	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2019 USD ($)
Organization [Line Items]
Operating right of use assets	$ 92,852	$ 0		$ 103,694
Operating lease liabilities	97,581	0		$ 110,505
Revenue from Contract with Customer, Excluding Assessed Tax	797,386	793,332
Accrued Fees and Other Revenue Receivable	126,358	111,946
Other investments	185,722	181,407
Total Stockholders' Equity	809,855	794,407
Management Fees	32,608	29,658	$ 33,245
Investment banking	375,025	357,222	223,614
Incentive income	1,547	3,117	5,383
Revenues	1,049,443	966,916	658,781
Underwriting expenses	15,067	15,282	0
Professional, advisory and other fees	48,385	40,957	31,942
Service fees	23,707	20,198	14,999
Communications	31,894	30,801	23,460
Occupancy and equipment	39,726	41,602	35,184
Client services and business development	50,371	35,927	28,327
Other expenses	23,114	22,014	18,196
Costs and Expenses	948,864	890,944	696,649
Net gains (losses) on securities, derivatives and other investments	80,409	68,043	76,179
Net income (loss) attributable to Cowen Inc. common stockholders	17,839	36,027	(67,674)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	55,870	79,879	(37,091)
Gain (Loss) on Investments (excluding broker dealer)	74,284	54,032	78,303
Increase (Decrease) in Fees Receivable	7,143	6,401	29,669
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	(179,910)	324,176	3,398
Payments to Acquire Other Investments	19,812	28,092	10,419
Net Cash Provided by (Used in) Investing Activities	(47,627)	(17,882)	$ (2,397)
Liabilities	3,866,575	2,270,093
Assets	5,162,025	3,346,303
Variable Interest Entity, Primary Beneficiary [Member]
Organization [Line Items]
Liabilities	24,900	40,500
Assets	685,400	468,000
Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	796,123	789,754
Management Fees	31,361	26,080
Incentive income	1,532	3,117
Asset Company
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	1,263	3,578
Management Fees	1,248	3,578
Incentive income	$ 15	0
Minimum
Organization [Line Items]
Redeemable Noncontrolling Interest, Redemption Fee, Percent	1.00%
Maximum
Organization [Line Items]
Redeemable Noncontrolling Interest, Redemption Fee, Percent	5.00%
Telephone and computer equipment
Organization [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Proprietary software
Organization [Line Items]
Property, Plant and Equipment, Useful Life	4 years
Furniture and Fixtures
Organization [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Real Estate Funds | Minimum | Asset Company
Organization [Line Items]
Asset Management Fees, Percent Fee	0.25%
Real Estate Funds | Maximum | Asset Company
Organization [Line Items]
Asset Management Fees, Percent Fee	1.50%
Hedge Funds | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	2.00%
Hedge Funds | Asset Company
Organization [Line Items]
Asset Management Fees, Percent Fee	2.00%
During investment period | Healthcare Royalty Partners | Minimum | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	1.00%
During investment period | Healthcare Royalty Partners | Maximum | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	2.00%
After investment period | Healthcare Royalty Partners | Minimum | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	0.50%
After investment period | Healthcare Royalty Partners | Maximum | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	2.00%
After investment period | Other Healthcare Royalty Partners | Minimum | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	0.20%
After investment period | Other Healthcare Royalty Partners | Maximum | Operating Company [Member]
Organization [Line Items]
Asset Management Fees, Percent Fee	1.00%
Other investment companies
Organization [Line Items]
Number of funds, Consolidated | cowenfund	5
Accounting Standards Update 2014-09
Organization [Line Items]
Accrued Fees and Other Revenue Receivable		129,941
Other investments		163,412
Total Stockholders' Equity		795,409
Investment banking		329,062
Incentive income		19,028
Revenues		954,667
Underwriting expenses		0
Professional, advisory and other fees		33,096
Service fees		20,156
Communications		29,352
Occupancy and equipment		41,588
Client services and business development		32,554
Other expenses		21,875
Costs and Expenses		862,784
Net gains (losses) on securities, derivatives and other investments		83,512
Net income (loss) attributable to Cowen Inc. common stockholders		36,469
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		80,321
Gain (Loss) on Investments (excluding broker dealer)		41,701
Increase (Decrease) in Fees Receivable		18,363
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		324,987
Payments to Acquire Other Investments		28,904
Net Cash Provided by (Used in) Investing Activities		(18,694)
Underwriting fees | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 211,666	215,723
Strategic/financial advisory fees | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	79,208	81,733
Placement and sales agent fees | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	69,070	46,888
Expense reimbursements from clients | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	15,081	12,878
Investment banking revenue | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	375,025	357,222
Brokerage | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	388,205	403,335
Commissions | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	356,668	366,090
Trade conversion | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	12,531	17,061
Equity and credit research fees | Operating Company [Member]
Organization [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 19,006	20,184
Adjustment | Accounting Standards Update 2014-09
Organization [Line Items]
Accrued Fees and Other Revenue Receivable		17,995
Other investments		(17,995)
Total Stockholders' Equity		1,002
Investment banking		(28,160)
Incentive income		15,911
Revenues		(12,249)
Underwriting expenses		(15,282)
Professional, advisory and other fees		(7,861)
Service fees		(42)
Communications		(1,449)
Occupancy and equipment		(14)
Client services and business development		(3,373)
Other expenses		(139)
Costs and Expenses		(28,160)
Net gains (losses) on securities, derivatives and other investments		15,469
Net income (loss) attributable to Cowen Inc. common stockholders		442
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		442
Gain (Loss) on Investments (excluding broker dealer)		(12,331)
Increase (Decrease) in Fees Receivable		11,962
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		811
Payments to Acquire Other Investments		812
Net Cash Provided by (Used in) Investing Activities		$ (812)

XML

Goodwill and Intangibles Schedule of Intangible Assets (Details) (Annual) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Acquired Finite-Lived Intangible Assets [Line Items]

Intangible Assets Disclosure [Text Block]

Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2019 and 2018.

		December 31, 2019						December 31, 2018
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in thousands)						(in thousands)
Trade names	2.6 - 3	$	960	$	(360)	$	600	$	10,622	$	(10,599)	$	23
Customer relationships	2 - 14	51,724		(21,065)		30,659		41,134		(18,960)		22,174
Customer contracts	1.2	—		—		—		800		(800)		—
Non compete agreements and covenants with limiting conditions acquired	5	400		(347)		53		2,237		(2,055)		182
Intellectual property	8	1,188		(119)		1,069		—		—		—
Acquired software	3 - 10	7,323		(4,504)		2,819		8,243		(5,679)		2,564
		$	61,595	$	(26,395)	$	35,200	$	63,036	$	(38,093)	$	24,943

Amortization of Intangible Assets

$ 13,100

$ 5,000

$ 6,100

Intangible assets, accumulated amortization (in dollars)

(26,395)

(38,093)

Intangible Assets, Net

35,200

24,943

Trade name

Acquired Finite-Lived Intangible Assets [Line Items]

Intangible assets, accumulated amortization (in dollars)

(360)

(10,599)

Intangible Assets, Net

600

23

Finite-Lived Intangible Assets, Gross

960

10,622

Customer relationships

Acquired Finite-Lived Intangible Assets [Line Items]

Intangible assets, accumulated amortization (in dollars)

(21,065)

(18,960)

Intangible Assets, Net

30,659

22,174

Finite-Lived Intangible Assets, Gross

$ 51,724

41,134

Customer Contracts [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

1 year 2 months 12 days

Intangible assets, accumulated amortization (in dollars)

$ 0

(800)

Intangible Assets, Net

0

0

Finite-Lived Intangible Assets, Gross

$ 0

800

Noncompete Agreements [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

5 years

Intangible assets, accumulated amortization (in dollars)

$ (347)

(2,055)

Intangible Assets, Net

53

182

Finite-Lived Intangible Assets, Gross

$ 400

2,237

Intellectual Property

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

8 years

Intangible assets, accumulated amortization (in dollars)

$ (119)

0

Intangible Assets, Net

1,069

0

Finite-Lived Intangible Assets, Gross

1,188

0

Software Development

Acquired Finite-Lived Intangible Assets [Line Items]

Intangible assets, accumulated amortization (in dollars)

(4,504)

(5,679)

Intangible Assets, Net

2,819

2,564

Finite-Lived Intangible Assets, Gross

7,323

8,243

Developed Technology Rights [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Intangible assets, accumulated amortization (in dollars)

(26,395)

(38,093)

Intangible Assets, Net

35,200

24,943

Finite-Lived Intangible Assets, Gross

$ 61,595

$ 63,036

Minimum | Trade name

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

2 years 7 months 6 days

Minimum | Customer relationships

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

2 years

Minimum | Developed Technology Rights [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

3 years

Maximum | Trade name

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

3 years

Maximum | Customer relationships

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

14 years

Maximum | Developed Technology Rights [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Finite-Lived Intangible Asset, Useful Life

10 years

XML

Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Accounts Payable [Line Items]
Deferred rent obligations		$ 0	$ 8,242
Business Combination, Contingent Consideration, Liability		30,896	3,070
Equity in RCG Longview partners II, LLC		0	6,367
Interest and Dividends Payable		5,828	2,483
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount	[1]	30,282	23,714
Accrued Professional Fees		4,789	5,177
Unearned Premiums	[1]	16,092	12,483
Fees Payable		4,628	594
Accrued tax liabilities		2,778	1,742
Software contracts payable		2,884	0
Performance fees payable		3,708	5,959
Accrued expenses and accounts payable	[2]	39,671	40,592
Accounts payable, accrued expenses and other liabilities		141,556	110,423
Hollenfels
Accounts Payable [Line Items]
Accrued Liabilities		$ 13,200	$ 15,700

[1] Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

[2] As of December 31, 2019 and 2018, the balance includes reinsurance premiums payable of $13.2 million and $15.7 million, respectively.

XML

Acquisition (Pro Forma) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Revenues	$ 1,049,443	$ 966,916	$ 658,781
Net income (loss) attributable to Cowen Inc.	24,631	42,819	$ (60,882)
Quarton
Business Acquisition [Line Items]
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed	1,200
Net revenues		922,001
Net income (loss)		$ 35,616
Basic (usd per share)		$ 1.20
Diluted (usd per share)		$ 1.15
Revenues	34,800
Net income (loss) attributable to Cowen Inc.	$ 5,700

XML

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income / (Loss) [Abstract]
Beginning Balance	$ (5)	$ (8)	$ (2)
Foreign currency translation	0	3	(6)
Ending Balance	$ (5)	$ (5)	$ (8)

XML

Commitments and Contingencies Service Payments (Details) - Service Payments - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Commitments [Line Items]
Contractual Obligation, Due in Next Fiscal Year	$ 22,217	$ 21,758
Contractual Obligation, Due in Second Year	14,674	7,514
Contractual Obligation, Due in Third Year	9,358	1,877
Contractual Obligation, Due in Fourth Year	4,095	1,372
Contractual Obligation, Due in Fifth Year	1,938	735
Thereafter	4,401	735
Total service payment commitments	$ 56,683	$ 33,991

XML

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Fees receivable	$ (126,358)	$ (111,946)
Interest Income, Related Party	100		$ 100
Due from related parties	26,749	33,870
Redeemable non-controlling interests, Related Party	391,275	216,923
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	(8,442)	(24,752)	(7,657)
Employees
Related Party Transaction [Line Items]
Redeemable non-controlling interests, Related Party	36,000	25,100
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	(7,900)	(7,600)	(7,200)
Employee Loans
Related Party Transaction [Line Items]
Due from employees	14,900	17,000
Forgivable Loan Balances	7,100	8,800
Amortization on Forgivable Loans	$ 3,800	3,100	2,100
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	$ (20,500)	(19,400)
Investor
Related Party Transaction [Line Items]
Due to Affiliate	300	600
Other Funds
Related Party Transaction [Line Items]
Due from related parties	5,300	$ 8,900
Starboard Value LP
Related Party Transaction [Line Items]
Effective interest rate		5.00%
Interest Income, Related Party	300	$ 400	$ 800
Due from related parties	$ 6,500	$ 7,700
Finance Period	5 years

XML

Non-Controlling Interests in Consolidated Subsidiaries and Funds

12 Months Ended

Dec. 31, 2019

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 December 31,
	2019		2018
	(dollars in thousands)
Redeemable non-controlling interests in consolidated subsidiaries and investment funds
Consolidated Funds	$	391,275	$	216,923
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds
Operating companies	11,513		7,457
Consolidated Funds	82,807		57,423
	$	485,595	$	281,803

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds
Operating companies	$	(3,264)	$	3,177	$	2,353
Consolidated Funds	34,503		33,883		21,438
	$	31,239	$	37,060	$	23,791

XML

Defined Contribution Plans	12 Months Ended
	Dec. 31, 2019
Defined Contribution Plans [Abstract]
Defined Contribution Plans [Text Block]	Defined Contribution PlansThe Company sponsors a Retirement and Savings Plan which is a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code (the "401(k) Plans"). All full-time employees of the Company can contribute on a tax deferred basis and an after-tax basis to the 401(k) Plans up to federal contribution limits or up to 100% of their annual compensation, subject to certain limitations. The Company provides matching and profit sharing contributions to employees that are equal to a specified percentage of the eligible participant's contribution as defined by the 401(k) Plans. For the years ended December 31, 2019, 2018, and 2017, the Company's contributions to the 401(k) Plans were $1.0 million, $1.0 million, and $0.7 million, respectively.

XML

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On February 11, the Board of Directors declared a quarterly cash dividend payable on its common stock of $1.3 million, or $0.04 per common share, payable on March 16, 2020, to stockholders of record on March 2, 2020. During the same meeting, the Board of Directors also approved a $12.1 million increase in the Company's share repurchase program (see Note 19) bringing the total remaining shares available for repurchase to $25.0 million.

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 consolidated financial statements.

XML

Segment Reporting

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Change in Segments

During the second quarter of 2019 the Company realigned the information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including evaluation and allocation of resources. As a result of this change in segment reporting, the Company retrospectively revised prior period results, by segment, to conform to the current period presentation (see Note 1). This structure includes two business segments: Op Co and Asset Co. The structure is based on the Company's domain expertise as a driver of balance sheet harmonization and repeatable revenues for its operating business versus the Company's long-term monetization strategies.

The Op Co segment consists of 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.

Performance Measures

The performance measure 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 a pre-tax measure that (i) eliminates the impact of consolidation for Consolidated Funds and excludes (ii) goodwill and intangible impairment (iii) certain other transaction-related adjustments and/or reorganization expenses and (iv) certain costs associated with debt. Economic Operating Income (Loss) represents Economic Income (Loss) before depreciation and amortization expenses. In addition, Economic Income (Loss) revenues include investment income that represents the income the Company has earned in investing its own capital, including realized and unrealized gains and losses, interest and dividends, net of associated investment related expenses. For US GAAP purposes, these items are included in each of their respective line items. Economic Income (Loss) revenues also include management fees, incentive income and investment income earned through the Company's investment as a general partner in certain real estate entities and the Company's investment in the activist business and certain investment funds. For US GAAP purposes, all of these items, are recorded in other income (loss). Economic Income (Loss) recognizes (a) incentive fees during periods when the fees are not yet crystallized for US GAAP reporting, (b) start-up costs of a fund over the expected life of the fund and (c) retainer fees, relating to investment banking activities, earned during the period that would otherwise be deferred until closing for US GAAP reporting. In addition, Economic Income (Loss) expenses are reduced by reimbursement from affiliates, which for US GAAP purposes is presented gross as part of revenue.

As further stated below, one major difference between Economic Income (Loss) and US GAAP net income (loss) is that Economic Income (Loss) presents the segments' results of operations without the impact resulting from the full consolidation of any of the Consolidated Funds. The consolidation of these investment funds' results include the pro rata share of the income or loss attributable to other owners of such entities which is reflected in net income (loss) attributable to non-controlling interest in consolidated subsidiaries in the accompanying consolidated statements of operations. This pro rata share has no effect on the overall financial performance for the segments, as ultimately, this income or loss is not income or loss for the segments themselves. Included in Economic Income (Loss) is the actual pro rata share of the income or loss attributable to the Company as an investor in such entities, which is relevant in management making operating decisions and evaluating financial performance. The Company does not disclose total asset information for its business segments as the information is not reviewed by the CODM.

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

	Year Ended December 31, 2019
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	352,192	$	—	$	352,192	$	—	$	22,833	(a)	$	375,025
Brokerage	440,413		—		440,413		—		(37,666)		(b)	402,747
Management fees	43,698		1,976		45,674		(2,270)		(10,796)		(c)	32,608
Incentive income (loss)	45,041		1,152		46,193		(600)		(44,046)		(c)	1,547
Investment income (loss)	51,344		3,111		54,455		—		(54,455)		(d)	—
Interest and dividends	—		—		—		—		174,913		(b)(d)	174,913
Reimbursement from affiliates	—		—		—		(122)		1,148		(e)	1,026
Reinsurance premiums	—		—		—		—		46,335		(f)	46,335
Other revenue	5,785		58		5,843		(14)		(396)		(f)	5,433
Consolidated Funds revenues	—		—		—		9,809		—			9,809
Total revenues	938,473		6,297		944,770		6,803		97,870			1,049,443
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	22,576		5,449		28,025		—		140,603		(b)(d)	168,628
Total net revenues	915,897		848		916,745		6,803		(42,733)			880,815
Expenses
Non interest expense	847,485		9,030		856,515		—		79,286		(a)(e)(h)(i)	935,801
Goodwill impairment	—		—		—		—		4,100			4,100
Consolidated Funds expenses	—		—		—		8,963		—			8,963
Total expenses	847,485		9,030		856,515		8,963		83,386			948,864
Total other income (loss)	—		—		—		36,663		102,109		(c)(d)(i)	138,772
Income taxes expense / (benefit)	—		—		—		—		14,853		(h)	14,853
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	4,796		—		4,796		34,503		(8,060)			31,239
Income (loss) attributable to Cowen Inc.	63,616		(8,182)		55,434		—		(30,803)			$	24,631
Less: Preferred stock dividends	5,434		1,358		6,792		—		—			6,792
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	58,182		(9,540)		48,642		$	—	$	(30,803)		$	17,839
Add back: Depreciation and Amortization expense	20,403		36		20,439
Economic operating income (loss)	$	78,585	$	(9,504)	$	69,081

	Year Ended December 31, 2018
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	329,061	$	—	$	329,061	$	—	$	28,161	(a)	$	357,222
Brokerage	452,299		—		452,299		—		(38,717)		(b)	413,582
Management fees	43,466		5,709		49,175		(2,513)		(17,004)		(c)	29,658
Incentive income (loss)	16,851		6,896		23,747		(52)		(20,578)		(c)	3,117
Investment income (loss)	53,593		2,753		56,346		—		(56,346)		(d)(g)	—
Interest and dividends	—		—		—		—		108,009		(d)	108,009
Reimbursement from affiliates	—		—		—		(269)		1,307		(e)	1,038
Aircraft lease revenue	—		—		—		—		1,852		(g)	1,852
Reinsurance premiums	—		—		—		—		38,096		(f)	38,096
Other revenue	(1,619)		451		(1,168)		—		5,672		(f)	4,504
Consolidated Funds revenues	—		—		—		9,838		—			9,838
Total revenues	893,651		15,809		909,460		7,004		50,452			966,916
Interest expense (Economic Income/(Loss)) / Interest and dividend expense (US GAAP)	17,489		5,524		23,013		—		81,103		(d)	104,116
Total net revenues	876,162		10,285		886,447		7,004		(30,651)			862,800
Expenses
Non interest expense	788,272		17,087		805,359		—		76,970		(a)(e)(h)(i)	882,329
Consolidated Funds expenses	—		—		—		8,615		—			8,615
Total expenses	788,272		17,087		805,359		8,615		76,970			890,944
Total other income (loss)	—		—		—		35,494		88,248		(c)(d)(i)(j)	123,742
Income taxes expense / (benefit)	—		—		—		—		15,719		(h)	15,719
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	4,212		742		4,954		33,883		(1,777)			37,060
Income (loss) attributable to Cowen Inc.	83,678		(7,544)		76,134		—		(33,315)			42,819
Less: Preferred stock dividends	5,162		1,630		6,792		—		—			6,792
Economic Income (Loss)/ Income (loss) attributable to Cowen Inc. common stockholders	78,516		(9,174)		69,342		$	—	$	(33,315)		$	36,027
Add back: Depreciation and Amortization expense	11,402		181		11,583
Economic operating income (loss)	$	89,918	$	(8,993)	$	80,925

	Year Ended December 31, 2017
							Adjustments
	Operating Company		Asset Company		Total Economic Income (Loss)		Funds Consolidation		Other Adjustments			US GAAP Net Income (Loss)
	(dollars in thousands)
Revenues
Investment banking	$	223,614	$	—	$	223,614	$	—	$	—		$	223,614
Brokerage	312,780		—		312,780		—		(19,170)		(b)	293,610
Management fees	45,007		10,380		55,387		(2,593)		(19,549)		(c)	33,245
Incentive income (loss)	17,872		8,156		26,028		(1,739)		(18,906)		(c)	5,383
Investment income (loss)	7,204		37,938		45,142		—		(45,142)		(d)(g)	—
Interest and dividends	—		—		—		—		49,440		(b)(d)	49,440
Reimbursement from affiliates	—		—		—		(297)		3,157		(e)	2,860
Aircraft lease revenue	—		—		—		—		3,751		(g)	3,751
Reinsurance premiums	—		—		—		—		30,996		(f)	30,996
Other revenue	3,307		(76)		3,231		—		5,330		(f)	8,561
Consolidated Funds revenues	—		—		—		7,321		—			7,321
Total revenues	609,784		56,398		666,182		2,692		(10,093)			658,781
Interest expense	13,599		5,289		18,888		—		42,061		(d)	60,949
Total net revenues	596,185		51,109		647,294		2,692		(52,154)			597,832
Expenses
Non interest expense	584,816		40,571		625,387		(199)		58,935		(a)(e)(h)(i)	684,123
Consolidated Funds expenses	—		—		—		12,526		—			12,526
Total expenses	584,816		40,571		625,387		12,327		58,935			696,649
Total other income (loss)	—		—		—		31,073		74,706		(c)(d)(i)(j)(k)	105,779
Income taxes expense / (benefit)	—		—		—		—		44,053		(h)	44,053
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	5,178		894		6,072		21,438		(3,719)			23,791
Income (Loss) attributable to Cowen Inc.	6,191		9,644		$	15,835	$	—	$	(76,717)		$	(60,882)
Less: Preferred stock dividends	4,890		1,902		6,792							6,792
Income (Loss) attributable to Cowen Inc. common stockholders	1,301		7,742		9,043							$	(67,674)
Add back: Depreciation and amortization expense	11,211		347		11,558
Economic Operating Income (Loss) attributable to Cowen Inc. common stockholders	$	12,512	$	8,089	$	20,601

The following is a summary of the adjustments made to US GAAP net income (loss) to arrive at Economic Income (Loss):

Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) 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).

Other Adjustments:

(a)	Economic Income (Loss) presents underwriting expenses net of investment banking revenues, expenses reimbursed from clients within their respective expense category. Economic Income (Loss) also records retainer fees, relating to investment banking activities, collectible during the period that would otherwise be deferred until closing for US GAAP reporting.
(b)	Economic Income (Loss) brokerage revenues included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP.
(c)	Economic Income (Loss) recognizes revenues (i) net of fund start-up costs and distribution fees paid to agents, (ii) records income from uncrystallized incentive fees and (iii) the Company's proportionate share of management and incentive fees of certain real estate operating entities, the healthcare royalty business and the activist business.
(d)	Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) for which the majority of this activity is shown in other income (loss) for US GAAP reporting.
(e)	Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP.
(f)	Economic Income (Loss) recognizes underwriting income from the Company's insurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting.
(g)	Aircraft lease revenue is shown net of expenses in investment income for Economic Income (Loss).
(h)	Economic Income (Loss) excludes income taxes and acquisition related adjustments as management does not consider these items when evaluating the performance of the segment.
(i)	Economic Income (Loss) recognizes the Company's proportionate share of expenses, for certain real estate operating entities and the activist business, for which the investments are recorded under the equity method of accounting for investments.
(j)	Economic Income (Loss) excludes gain/(loss) on debt extinguishment.
(k)	Economic Income (Loss) excludes the bargain purchase gain which resulted from the Convergex Group acquisition.

For the years ended December 31, 2019 and 2018, there was no one investment fund or other customer which represented more than 10% of the Company's total revenues.

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Convertible Debt and Notes Payable

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Convertible Debt and Notes Payable

Convertible Debt and Notes Payable

As of December 31, 2019 and 2018, the Company's outstanding debt was as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Convertible debt	$	118,688	$	134,489
Notes payable	306,818		229,740
Term loan	32,180		28,200
Other notes payable	2,516		—
Finance lease obligations	3,937		5,025
	$	464,139	$	397,454

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 are due on 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 may be converted into cash or shares of Class A common stock at the Company's election based on the current conversion price. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock.

The Company used the net proceeds, together with cash on hand, from the offering for general corporate purposes, including the repurchase or repayment of $115.1 million of the Company's outstanding 3.0% cash convertible senior notes due March 2019 (the "March 2019 Convertible Notes") and the repurchase of approximately $19.5 million of the Company's shares of its Class A common stock, which were consummated substantially concurrently with the closing of the offering. As of December 31, 2019, the outstanding principal amount of the December 2022 Convertible Notes was $135.0 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 recorded interest expense of $4.1 million, $4.1 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. 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 consolidated statements of financial condition. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations is $4.3 million, $4.0 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively, 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 will be amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying consolidated statements of operations.

March 2019 Convertible Notes

On March 10, 2014, the Company issued $149.5 million of 3.0% cash convertible senior notes (the "March 2019 Convertible Notes"). The March 2019 Convertible Notes matured on March 15, 2019 and were fully repaid by the Company. The Company recorded interest expense of $0.1 million, $1.1 million, and $4.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations was $0.3 million, $1.5 million and $7.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, based on an effective interest rate of 8.89%.

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 consolidated statement of financial condition.   To date the May 2024 Notes have maintained their initial private rating, and the interest rate has remained unchanged. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $2.9 million for the year ended December 31, 2019. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in December 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 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 $7.7 million and $4.3 million for the years ended December 31, 2019 and 2018, 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 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 $10.1 million, $10.1 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. 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 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.

Term Loan

On June 30, 2017, a subsidiary of the Company borrowed $28.2 million to fund general corporate purposes. This term loan has an effective interest rate of LIBOR plus 3.75% with a lump sum payment of the entire principal amount due (as amended) on June 26, 2020. In July 2019, the subsidiary of the Company borrowed an additional $4.0 million to fund general corporate purposes. The loan is secured by the value of the Company's limited partnership interests in two affiliated investment funds. The Company has provided a guarantee for this loan. The Company recorded interest expense of $1.8 million, $1.6 million and $0.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Other Notes Payable

During January 2019, the Company borrowed $2.2 million to fund insurance premium payments. This note had an effective interest rate of 2.51% and was due on December 31, 2019, with monthly payment requirements of $0.2 million. As of December 31, 2019, the note was fully repaid. Interest expense was $0.1 million for the year ended December 31, 2019.

During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note is due November 2024, with monthly payment requirements of $0.1 million. As of December 31, 2019, the note had a balance of $2.5 million. Interest expense for the year ended December 31, 2019 was insignificant.

Revolver

The Company, in December 2019, entered into a two-year committed credit facility with a capacity of $25 million. This agreement has an effective interest rate of LIBOR plus 3.25% on any money drawn from the credit facility and the commitment or unused line fee is 50 basis points on the undrawn amount.

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 consolidated statements of financial condition, and have a weighted average lease term of 3.21 years and weighted average interest rate of 4.88% as of December 31, 2019.

For the years ended December 31, 2019, 2018 and 2017, quantitative information regarding the Company's finance lease obligations reflected in the accompanying consolidated statement of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:

	Year Ended December 31,
	2019		2018
	(dollars in thousands)
Lease cost
Finance lease cost:
Amortization of finance lease right-of-use assets	$	1,266	$	1,627
Interest on lease liabilities	227		231
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	227		231
Financing cash flows from finance leases	$	1,266	$	2,186

Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of December 31, 2019, are as follows:

	Convertible Debt		Notes Payable		Term Loan		Other Notes Payable		Finance Lease Obligation
	(dollars in thousands)
2020	$	4,050	$	23,548	$	33,126	$	593	$	1,290
2021	4,050		23,548		—		593		1,398
2022	139,050		23,548		—		593		1,166
2023	—		23,548		—		593		411
2024	—		98,721		—		543		11
Thereafter	—		334,304		—		—		—
Subtotal	147,150		527,217		33,126		2,915		4,276
Less (a)	(28,462)		(220,399)		(946)		(399)		(339)
Total	$	118,688	$	306,818	$	32,180	$	2,516	$	3,937

(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 convertible debt.

Letters of Credit

As of December 31, 2019, the Company has the following 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 collateral for reinsurance agreements which amounted to $2.0 million as of December 31, 2019, and $1.0 million as of December 31, 2018, which are released annually between March 2020 and March 2023 based on the policy periods covered by the reinsurance agreements.

Location	Amount		Maturity
	(dollars in thousands)
Boston	$	382	March 2020
New York	$	359	April 2020
New York	$	398	October 2020
New York	$	1,125	October 2020
New York	$	1,629	November 2020
San Francisco	$	716	October 2025

To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2019 and 2018 there were no amounts due related to these letters of credit.

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Subsequent Events - Narrative (Details) - Subsequent Event $ / shares in Units, $ in Millions	Feb. 11, 2020 USD ($) $ / shares
Subsequent Event [Line Items]
Stock Repurchase Program Additional Authorized Amount	$ 12.1
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 25.0
Dividends Payable, Amount Per Share | $ / shares	$ 0.04
Dividends Payable	$ 1.3

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Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plans [Abstract]
Defined Contribution Plan, Cost	$ 1.0	$ 1.0	$ 0.7

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Investments of Operating Entities and Consolidated Funds

12 Months Ended

Dec. 31, 2019

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 December 31, 2019 and 2018, securities owned, at fair value consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Common stock (*)	$	1,546,484	$	472,299
Preferred stock (*)	12,656		5,617
Warrants and rights (*)	22,109		7,990
Government bonds (a)	15,916		13,398
Corporate bonds (c)	25,500		13,041
Convertible bonds (b) (*)	2,500		3,000
Term loan (*)	1,067		—
Trade claims (*)	7,320		5,543
	$	1,633,552	$	520,888

(a)As of December 31, 2019, maturities ranged from January 2020 to June 2020 with an interest rate of 0%. As of December 31, 2018, maturities ranged from April 2019 to August 2019 with an interest rate of 0%.

(b)As of December 31, 2019, maturities ranged from April 2020 to March 2022 with an interest rate of 8%. As of December 31, 2018, the maturity was June 2020 with an interest rate of 8%.

(c)As of December 31, 2019, maturities ranged from January 2020 to May 2037 and interest rates ranged from 0% to 15%. As of December 31, 2018, maturities ranged from April 2019 to April 2049 and interest rates ranged from 2% to 15.5%.

* The Company has elected the fair value option for securities owned, at fair value with a fair value of $14.9 million and $9.4 million, respectively, at December 31, 2019 and 2018.

Receivable on and Payable for derivative contracts, at fair value

The Company's direct involvement with derivative financial instruments includes total return swaps, futures, currency forwards, equity swaps, credit default 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 December 31,
	2019				2018
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	—	$	—	$	42,288	$	334
Currency forwards	$	—	—		$	395	1
Swaps	$	383,752	2,911		$	13,702	917
Options other (a)	550,188		60,066		654,506		23,130
Pay to hold	$	—	—		$	—	743
			$	62,977			$	25,125

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

Payable for derivative contracts	As of December 31,
	2019				2018
	Number of contracts / Notional Value		Fair value		Number of contracts / Notional Value		Fair value
	(dollars in thousands)
Futures	$	10,224	$	217	$	—	$	—
Currency forwards	$	77,790	851		$	96,406	709
Swaps	$	607,717	23,169		$	52,905	2,162
Options other (a)	306,306		36,524		90,730		13,211
			$	60,761			$	16,082

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

The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2019 and 2018. This table does not include the impact of over-collateralization.

							Gross amounts not offset in the Consolidated Statements of Financial Condition
	Gross amounts recognized		Gross amounts offset on the Consolidated Statements of Financial Condition (a)		Net amounts included on the Consolidated Statements of Financial Condition		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of December 31, 2019
Receivable on derivative contracts, at fair value	$	66,217	$	3,240	$	62,977	$	—	$	2,911	$	60,066
Payable for derivative contracts, at fair value	64,001		3,240		60,761		—		24,020		36,741
As of December 31, 2018
Receivable on derivative contracts, at fair value	$	25,125	$	—	$	25,125	$	—	$	1,662	$	23,463
Payable for derivative contracts, at fair value	16,082		—		16,082		—		2,871		13,211

(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 collateral held or posted.

The realized and unrealized gains/(losses) related to derivatives trading activities were $(13.0) million, $14.3 million, and $3.9 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in other income in the accompanying consolidated statements of operations.

Pursuant to the various derivatives transactions discussed above, except for exchange traded derivatives and certain options, the Company is required to post/receive collateral. As of December 31, 2019 and 2018, collateral consisting of $10.5 million and $11.2 million of cash is included in receivable from brokers, dealers and clearing organizations of $681.7 million

and $786.1 million, respectively, and payable to brokers, dealers and clearing organizations, of $271.0 million and $228.7 million, respectively, on the accompanying consolidated statements of financial condition. As of December 31, 2019 and 2018, all derivative contracts were with major financial institutions.

Other investments

As of December 31, 2019 and 2018, other investments included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Portfolio funds, at fair value (1)	$	114,504	$	124,741
Carried interest (2)	30,360		17,995
Equity method investments (3)	40,858		38,671
	$	185,722	$	181,407

(1) Portfolio Funds, at fair value

The Portfolio Funds, at fair value as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Starboard Value and Opportunity Fund LP (c)(*)	$	37,895	$	32,579
Formation8 Partners Fund I, L.P. (f)	33,613		34,099
RCG Longview Debt Fund V, L.P. (g)(*)	1,732		4,394
RCG Longview II LP (g) (*)	110		4,400
Cowen Healthcare Investments II LP (i) (*)	14,652		14,939
Eclipse Ventures Fund I, L.P. (b)	3,960		4,412
HealthCare Royalty Partners LP (a)(*)	1,326		1,833
Lagunita Biosciences, LLC (d)	4,802		3,833
Starboard Leaders Fund LP (e)(*)	1,560		1,230
Eclipse SPV I, LP (j)(*)	1,447		1,447
Triartisan ES Partners LLC (k)(*)	1,082		1,500
Triartisan PFC Partners LLC (l)(*)	909		—
RCG Longview Equity Fund, LP (g) (*)	835		802
RCG Longview Debt Fund VI, LP (g) (*)	—		1,586
RCG Park Liberty GP Member LLC (g) (*)	—		1,023
HealthCare Royalty Partners II LP (a)(*)	1,781		1,037
RCGL PE MPA, LLC (g)(*)	—		618
RCG LPP2 PNW5 Co-Invest, L.P. (h)(*)	—		296
Cowen Healthcare Investments III LP	1,398		—
Difesa Partners, LP (o) (*)	508		—
Other private investment (m)(*)	4,448		11,625
Other affiliated funds (n)(*)	2,446		3,088
	$	114,504	$	124,741

* 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)Eclipse Ventures Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated.

(c)Starboard Value and Opportunity Fund LP 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)RCG Longview Debt Fund V, L.P., RCG Longview II LP, RCG Park Liberty GP Member LLC, RCG Longview Equity Fund, LP, RCGL PE MPA, LLC and RCG Longview Debt Fund VI, LP are real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated.

(h)RCG LPP2 PNW5 Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired five multi-unit residential rental properties located in the Pacific Northwest. RCG LPP2 PNW5 Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

(i)Cowen Healthcare Investments II LP is a private equity fund.  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)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.

(n)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.

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

(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 consolidated statements of financial condition (see Note 2v). 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.

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 are recorded within compensation payable in the accompanying consolidated statements of financial condition. 

The carried interest as of December 31, 2019 and 2018, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Cowen Healthcare Investments II LP (*)	$	23,759	$	6,778
Other private investment (a) (*)	4,737		4,273
RCG IO Renergys Sarl	1,251		6,369
Ramius Multi-Strategy Fund LP (*)	613		575
	$	30,360	$	17,995

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

* These carried interest balances are earned from affiliates of the Company.

(3)Equity method investments

Equity method investments include investments held by the Company in several operating companies whose operations primarily include the day to day management of a number of real estate funds, including the portfolio management and administrative services related to the acquisition, disposition, and active monitoring of the real estate funds' underlying debt and equity investments. The Company's ownership interests in these equity method investments range from 15% to 55%. The Company holds a majority of the outstanding ownership interest (i.e., more than 50%) in RCG Longview Partners II, LLC and 40% in Surf House Ocean Views Holdings, LLC (which is a joint venture in a real estate development project). 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. Also included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners and (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. During 2019, the Company completed the sale of its interests in RCG Longview Management, the management company for certain real estate investment funds in which the Company was invested, and various other real estate assets held by the Company for which an impairment charge was recognized at September 30, 2019.  The transactions resulted in the recognition of a $0.2 million loss for the year ended December 31, 2019.

During the third quarter of 2018, the Company completed an assessment of the recoverability of the Company's equity method investments and determined that the carrying value of the investment in Surf House Ocean View Holdings, LLC exceeded the estimated fair value of the Company's interest, which was other than temporary. Accordingly, an other than temporary impairment charge of $7.1 million was recognized to reduce the carrying value of the investment to fair value at December 31, 2018 and an additional other than temporary impairment charge of $2.6 million was recognized during the fourth quarter of 2019.

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 December 31,
	2019		2018
	(dollars in thousands)
Surf House Ocean Views Holdings, LLC	$	7,804	$	7,589
Starboard Value LP	24,292		12,699
RCG Longview Debt Fund V Partners, LLC	2,889		11,000
RCG Longview Management, LLC	583		1,167
RCG Longview Debt Fund VI Partners LLC	—		1,254
HealthCare Royalty GP, LLC	108		149
HealthCare Royalty GP II, LLC	302		176
RCG Longview Debt Fund IV Management, LLC	331		331
HealthCare Royalty GP III, LLC	2,230		1,573
RCG Kennedy House, LLC	—		131
RCG Longview Equity Management, LLC	105		114
RCG LPP II GP, LLC	—		272
RCG Park Liberty GP Member Manager, LLC	—		1,248
HCR Stafford Fund GP, LLC	880		—
Liberty Harbor North	292		—
Other	1,042		968
	$	40,858	$	38,671

The Company's income (loss) from equity method investments was $24.6 million, $6.4 million and $21.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in net gains (losses) on securities, derivatives and other investments on the accompanying consolidated statements of operations.

For financial reporting purposes, the general partners of a real estate fund had recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the real estate fund's remaining investments and where the real estate fund's general partner has previously received carried interest distributions. The clawback liability was not realized until the end of the real estate fund's life. The clawback obligations for the real estate fund were $6.5 million at December 31, 2018, which is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. The liability was fully repaid in December 2019 (see Note 22 to the Company's consolidated financial statements).

Regulation S-X Rule 4-08(g)

For the period ended December 31, 2019, certain investments subject to Regulation S-X Rule 4-08(g) held by the Company in aggregate have met the significance criteria as defined under SEC guidance. As such, the Company is required to present summarized financial information for these significant investees for the years ended December 31, 2019, 2018, and 2017, and such information is as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Assets	$	1,374,077	$	1,189,669
Liabilities	205,873		244,088
Equity	$	1,168,204	$	945,581

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Revenues	$	200,854	$	105,499	$	165,550
Expenses	(79,811)		(67,893)		(62,175)
Net realized and unrealized gains (losses)	221,616		95,855		133,695
Income (loss) before income taxes	342,659		133,461		237,070
Income tax expense	(2,234)		(51)		(99)
Net income	$	340,425	$	133,410	$	236,971

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 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 consolidated statements of financial condition. Substantially all equity securities and options are pledged to the clearing broker under terms which permit the clearing broker to sell or re-pledge the securities to others subject to certain limitations. As of December 31, 2019 and 2018, securities sold, not yet purchased, at fair value consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Common stock	$	425,448	$	194,305
Corporate bonds (a)	5,933		750
Government bonds (b)	1,950		—
Preferred stock	3,686		199
Warrants and rights	14,819		53
	$	451,836	$	195,307

(a)As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%. As of December 31, 2018, the maturities ranged from October 2022 to January 2034 and interest rates ranged from 2.25% to 9.38%.

(b)As of December 31, 2019, the maturities ranged from October 2024 to March 2038 and interest rates ranged from 7.00% to 8.25%.

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 December 31, 2019 and 2018.

							Gross amounts not offset on the Consolidated Statements of Financial Condition
	Gross amounts recognized		Gross amounts offset on the Consolidated Statements of Financial Condition (a)		Net amounts included on the Consolidated Statements of Financial Condition		Additional Amounts Available		Financial instruments		Cash Collateral pledged (b)		Net amounts
	(dollars in thousands)
As of December 31, 2019
Securities borrowed	$	754,441	$	—	$	754,441	$	—	$	751,913	$	—	$	2,528
Securities loaned	1,601,866		—		1,601,866		—		1,585,036		—		16,830
Securities sold under agreements to repurchase	23,244		—		23,244		—		27,384		—		(4,140)
As of December 31, 2018
Securities borrowed	$	407,795	$	—	$	407,795	$	—	$	383,593	$	—	$	24,202
Securities loaned	414,852		—		414,852		—		391,310		—		23,542

(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 December 31, 2019 and 2018:

	Open and Overnight		Up to 30 days		31 - 90 days		Greater than 90 days		Total
	(dollars in thousands)
As of December 31, 2019
Securities loaned
Common stock	$	1,343,478	$	—	$	—	$	—	$	1,343,478
Corporate bonds	258,388		—		—		—		258,388
Securities sold under agreements to repurchase	—		—		23,244		—		23,244
As of December 31, 2018
Securities loaned
Common stock	$	414,852	$	—	$	—	$	—	$	414,852

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 $6.1 billion and $617.5 million as of December 31, 2019 and $5.4 billion and $377.2 million as of December 31, 2018, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of December 31, 2019 was $241.2 million, and as of December 31, 2018 was $301.4 million, all of which is included in other investments, at fair value in the accompanying consolidated statements of financial condition. The exposure to loss primarily relates to the Consolidated Fund's investment in the Unconsolidated Master Fund and the Company's investment in unconsolidated investment companies. Additionally, the Company's maximum exposure to loss for the variable interest entities noted above as of December 31, 2019 and 2018, was $261.7 million and $332.4 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

Securities owned, at fair value

As of December 31, 2019 and 2018, securities owned, at fair value, held by the Consolidated Funds consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Preferred stock	$	4,393	$	24,314
Common stock	200,306		95,565
Government bonds (a)	161,607		38,377
Corporate bonds (b)	3,405		24,098
Warrants and rights	5,567		5,279
	$	375,278	$	187,633

(a)As of December 31, 2019, maturities ranged from February 2020 to March 2020 and interest rates were 0%. As of December 31, 2018, maturities ranged from January 2019 to April 2019 and interest rates were 0%.

(b)As of December 31, 2019, the maturity was July 2023 with an interest rate of 7.50%. As of December 31, 2018, maturities ranged from August 2020 to March 2026 and interest rates ranged from 5.88% to 7.63%.

Receivable on derivative contracts

As of December 31, 2019 and 2018, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:

	As of December 31,
	2019		2018
	(dollars in thousands)
Currency forwards	$	3,302	$	186
Equity swaps	927		2,477
Options	1,604		1,753
	$	5,833	$	4,416

Payable for derivative contracts

As of December 31, 2019 and 2018, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:

	As of December 31,
	2019		2018
	(dollars in thousands)
Currency forwards	$	88	$	96
Equity swaps	3,931		713
Options	750		854
	$	4,769	$	1,663

Other investments, at fair value

Investments in Portfolio Funds, at fair value

As of December 31, 2019 and 2018, investments in Portfolio Funds, at fair value, included the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Investments of Enterprise LP	$	99,153	$	97,656
Investments of Merger Fund	76,616		88,739
	$	175,769	$	186,395

Consolidated portfolio fund investments of Enterprise LP 

On May 12, 2010, the Company announced its intention to close 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 December 31, 2019, 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. As of December 31, 2018, the consolidated investments in Portfolio Funds included Enterprise LP's investment of $97.7 million in Enterprise Master. Prior to liquidation, strategies utilized by Enterprise Master included merger arbitrage and activist investing, investments in distressed securities, convertible hedging, capital structure arbitrage, equity market neutral, investments in private placements of convertible securities, proprietary mortgages, structured credit investments, investments in mortgage backed securities and other structured finance products, investments in real estate and real property interests, structured private placements and other relative value strategies. Enterprise Master had broad investment powers and maximum flexibility in seeking to achieve its investment objective. Enterprise Master was permitted to invest in equity securities, debt instruments, options, futures, swaps, credit default swaps and other derivatives. There are no unfunded commitments at Enterprise LP.

Consolidated portfolio fund investments of Merger Fund 

The Merger Fund operates under a "master-feeder" structure, whereby Merger Master shareholders are Merger Fund and Ramius Merger Fund Ltd. The consolidated investments in Portfolio Funds include Merger Fund's investment of $76.6 million and $88.7 million in Merger Master as of December 31, 2019 and 2018, respectively. The Merger Master's investment objective is to achieve consistent absolute returns while emphasizing the preservation of investor capital. The Merger Master seeks to achieve these objectives by taking a fundamental, research-driven approach to investing, primarily in the securities of issuers engaged in, or subject to, announced (or unannounced but otherwise anticipated) extraordinary corporate transactions, which may include, but are not limited to, mergers, acquisitions, leveraged buyouts, tender offers, hostile takeover bids, sale processes, exchange offers, and recapitalizations. Merger Master invests in the securities of one or more issuers engaged in or subject to such extraordinary corporate transactions. Merger Master typically seeks to derive a profit by realizing the price differential, or "spread," between the market price of securities purchased or sold short and the market price or value of securities realized in connection with the completion or termination of the extraordinary corporate transaction, or in connection with the adjustment of market prices in anticipation thereof, while seeking to minimize the market risk associated with the aforementioned investment activities. Merger Master will, depending on market conditions, generally focus the majority of its investment program on announced transactions. If the investment manager of Merger Master considers it necessary, it may either alone or as part of a group, also initiate shareholder actions seeking to maximize value. Such shareholder actions may include, but are not limited to, re-orienting management's focus or initiating the sale of the company (or one or more of its divisions) to a third party. There are no unfunded commitments at Merger Fund.

Indirect Concentration of the Underlying Investments Held by Consolidated Funds

From time to time, either directly 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 December 31, 2019 and 2018, 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 December 31, 2019 and one at December 31, 2018.

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 December 31, 2019	Linkem	Equity	Italy	Wireless Broadband	8.94	%	$	72,404
As of December 31, 2018	Linkem	Equity	Italy	Wireless Broadband	8.36	%	$	66,439

Underlying Investments of Unconsolidated Funds Held by Consolidated Funds

Enterprise Master and Merger Master

At December 31, 2018, Enterprise LP's investment in Enterprise Master represented Enterprise LP's proportionate share of Enterprise Master's net assets; as a result, the investment balances of Enterprise Master reflected below may exceed the net investment which Enterprise LP has recorded. Merger Fund's investment in Merger Master represents Merger Fund's proportionate share of Merger Master's net assets; as a result, the investment balances of Merger Master reflected below may exceed the net investment which Merger Fund has recorded. The following tables present summarized investment information for the underlying investments and derivatives held by Enterprise Master and Merger Master as of December 31, 2019 and 2018:

Securities owned by Enterprise Master, at fair value

	As of December 31,
	2018
	(dollars in thousands)
Common stock	$	469
	$	469

Portfolio Funds, owned by Enterprise Master, at fair value

		As of December 31, 2018
	Strategy	(dollars in thousands)
RCG Special Opportunities Fund, Ltd*	Multi-Strategy	$	111,548
Other Private Investments	Various	846
		$	112,394

* Affiliates of the Company.

Merger Master

	As of December 31,
	2019		2018
	(dollars in thousands)
Securities owned by Merger Master, at fair value
Common stock	$	76,531	$	162,811
Warrants and rights	748		—
Corporate bonds	2,074		116,488
	$	79,353	$	279,299
Securities sold, not yet purchased, by Merger Master, at fair value
Common stock	$	29,623	$	4,959
Exchange traded funds	38,527		4,651
	$	68,150	$	9,610

Receivable on derivative contracts, at fair value, owned by Merger Master

	As of December 31,
	2019		2018
Description	(dollars in thousands)
Options	$	2,047	$	3,450
Equity swaps	406		5,320
	$	2,453	$	8,770

Payable for derivative contracts, at fair value, owned by Merger Master

	As of December 31,
	2019		2018
Description	(dollars in thousands)
Options	$	1,158	$	1,430
Currency forwards	—		270
Equity swaps	268		28
	$	1,426	$	1,728

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Receivable from and Payable to Customers	12 Months Ended
	Dec. 31, 2019
Receivables and Payable to Customers [Abstract]
Receivable from and Payables to Customers [Text Block]	Receivable From and Payable To CustomersAs of December 31, 2019 and 2018, receivable from customers of $105.6 million and $37.9 million, respectively, consist of amounts owed by customers relating to securities transactions not completed on settlement date and receivables arising from the prepayment of Commission Sharing Agreements ("CSA"), net of an allowance for credit losses. A prepaid CSA is established for research-related disbursements in advance of anticipated customer commission volumes. As of December 31, 2019 and 2018, payable to customers of $430.2 million and $525.2 million, 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 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, for all intents and purposes, has no 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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Income Taxes Summary of Operating Loss Carryforwards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Income Taxes Receivable	$ 6,500,000
Deferred Tax Assets, Gross	144,056,000	$ 121,569,000
Deferred Tax Liabilities, Gross	59,656,000	19,377,000
Income (Loss) from Continuing Operations before Income Taxes, Domestic	68,900,000	93,000,000	$ 3,900,000
Deferred Tax Assets, Other	3,043,000	2,444,000
Deferred Tax Assets, Valuation Allowance	5,234,000	9,135,000
Deferred Income Tax Expense (Benefit)	13,296,000	18,965,000	41,170,000
Income (Loss) from Continuing Operations before Income Taxes, Foreign	2,200,000	$ 6,000,000.0	$ 3,100,000
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Amount	5,600,000
Tax Credit Carryforward, Valuation Allowance	4,200,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	108,800,000
Inland Revenue, Hong Kong [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	12,500,000
New York State Division of Taxation and Finance [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	67,900,000
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	175,100,000
Luxembourg Reinsurance Companies [Member]
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Other	258,400,000
Deferred Tax Liabilities, Gross, Current	224,500,000
Deferred Tax Assets, Valuation Allowance	258,400,000
LaBranche and Co Inc. [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	30,300,000
Deferred tax asset, deduction limitation	$ 6,700,000

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Investments of Operating Entities and Consolidated Funds - Securities loaned transactions by remaining contractual maturity and class of collateral pledged (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	$ 1,601,866	$ 414,852
Securities sold, not yet purchased, at fair value	451,836	195,307
Common stock
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	1,343,478	414,852
Common stock | Open and Overnight
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	1,343,478	414,852
Common stock | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Common stock | 31 - 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	0
Common stock | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0	$ 0
Corporate Bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	258,388
Securities sold, not yet purchased, at fair value	23,244
Corporate Bonds | Open and Overnight
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	258,388
Securities sold, not yet purchased, at fair value	0
Corporate Bonds | Up to 30 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	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
Securities sold, not yet purchased, at fair value	23,244
Corporate Bonds | Greater than 90 days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Common stock	0
Securities sold, not yet purchased, at fair value	$ 0

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Deposits with Clearing Organizations, Brokers and Banks (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits with Clearing Organizations, Brokers and Banks [Abstract]
Deposits with clearing organizations, brokers and banks	$ 91,755	$ 89,423

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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		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		$ 451,836		$ 195,307
Securities sold, not yet purchased, at fair value		451,836		195,307
Derivative Liability		60,761		16,082
Derivative Asset		62,977		25,125
Business Combination, Contingent Consideration, Liability		30,896		3,070
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low		1,300		2,800
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		40,000		3,400
Other investments		185,722		181,407
Other Investments, Consolidated Funds		175,769		186,395
Investments		$ 2,439,131		$ 1,105,864
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of Total Assets at Fair Value		95.90%		86.60%
Percentage of Total Liabilities at Fair Value		87.30%		95.60%
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of Total Assets at Fair Value		1.70%		6.00%
Percentage of Total Liabilities at Fair Value		6.00%		2.00%
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance Liability Value		$ 36,766		$ 5,166
Percentage of Total Assets at Fair Value		2.30%		7.40%
Percentage of Total Liabilities at Fair Value		6.70%		2.40%
Contingent liability payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance Liability Value		$ 30,896		$ 3,070		$ 3,440
Futures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		217		0
Derivative Asset		0		334
Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		23,169		2,162
Derivative Asset		2,911		917
Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	[1]	60,066		23,130
Pay to hold
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0		743
Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance Liability Value		1,000		0
Portfolio Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments		114,504	[2]	124,741	[3]
Other Investments, Consolidated Funds		175,769	[2]	186,395	[3]
Carried interest [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments		30,360	[2]	17,995	[3]
Equity Method Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments		40,858		38,671
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		548,262		216,122
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31)		2,077,640		738,062
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		478,524		206,526
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31)		1,993,268		638,837
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		32,972		4,430
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31)		35,940		44,311
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value		36,766		5,166
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31)		48,432		54,914
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		3,686		199
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		3,686		199
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 | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		425,448		194,305
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		425,448		194,305
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		0		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		5,933		750
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		4,933		750
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		1,000		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		14,819		53
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		14,819		53
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]
Business Combination, Contingent Consideration, Liability		30,896	[4]	3,070
Fair Value, Measurements, Recurring | Contingent liability payable | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability		0	[4]	0	[5]
Fair Value, Measurements, Recurring | Contingent liability payable | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability		0	[4]	0	[5]
Fair Value, Measurements, Recurring | Contingent liability payable | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability		30,896	[4]	3,070	[5]
Fair Value, Measurements, Recurring | Futures | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		217
Fair Value, Measurements, Recurring | Futures | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		217
Fair Value, Measurements, Recurring | Futures | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0
Fair Value, Measurements, Recurring | Futures | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0
Fair Value, Measurements, Recurring | Currency forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				1
Fair Value, Measurements, Recurring | Currency forward | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Currency forward | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				1
Fair Value, Measurements, Recurring | Currency forward | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Currency forward | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		851		709
Fair Value, Measurements, Recurring | Currency forward | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Currency forward | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		851		709
Fair Value, Measurements, Recurring | Currency forward | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		2,911
Fair Value, Measurements, Recurring | Swaps | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0
Fair Value, Measurements, Recurring | Swaps | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		2,911
Fair Value, Measurements, Recurring | Swaps | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0
Fair Value, Measurements, Recurring | Swaps | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		23,169		2,162
Fair Value, Measurements, Recurring | Swaps | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Swaps | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		23,169		2,162
Fair Value, Measurements, Recurring | Swaps | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		60,066
Fair Value, Measurements, Recurring | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		59,730
Fair Value, Measurements, Recurring | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0
Fair Value, Measurements, Recurring | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		336
Fair Value, Measurements, Recurring | Options | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		36,524		13,211
Fair Value, Measurements, Recurring | Options | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		33,604		11,115
Fair Value, Measurements, Recurring | Options | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Options | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability				2,096
Fair Value, Measurements, Recurring | Pay to hold
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				743
Fair Value, Measurements, Recurring | Pay to hold | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Pay to hold | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				743
Fair Value, Measurements, Recurring | Pay to hold | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		15,916		13,398
Fair Value, Measurements, Recurring | Government Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		15,916		13,398
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		12,656		5,617
Fair Value, Measurements, Recurring | Preferred Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		4,821		449
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		7,835		5,168
Fair Value, Measurements, Recurring | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		1,546,484		472,299
Fair Value, Measurements, Recurring | Common Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		1,527,769		459,601
Fair Value, Measurements, Recurring | Common Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		1,249		2,848
Fair Value, Measurements, Recurring | Common Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		17,466		9,850
Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		25,500		13,041
Fair Value, Measurements, Recurring | Corporate 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 | Corporate Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		23,079		13,041
Fair Value, Measurements, Recurring | Corporate Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		2,421		0
Fair Value, Measurements, Recurring | Convertible Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		2,500		3,000
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		2,500		3,000
Fair Value, Measurements, Recurring | Trade Claims
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		7,320		5,543
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		7,320		5,543
Fair Value, Measurements, Recurring | Warrants and Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		22,109		7,990
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		21,515		6,324
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		594		1,666
Fair Value, Measurements, Recurring | Derivative Assets | Futures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				334
Fair Value, Measurements, Recurring | Derivative Assets | Futures | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				334
Fair Value, Measurements, Recurring | Derivative Assets | Futures | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Derivative Assets | Futures | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Derivative Assets | Swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				917
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				917
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Derivative Assets | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				23,130
Fair Value, Measurements, Recurring | Derivative Assets | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				23,130
Fair Value, Measurements, Recurring | Derivative Assets | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Derivative Assets | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset				0
Fair Value, Measurements, Recurring | Term loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		1,067
Fair Value, Measurements, Recurring | Term loan | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0
Fair Value, Measurements, Recurring | Term loan | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		1,067
Fair Value, Measurements, Recurring | Term loan | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0
Fair Value, Measurements, Recurring | Operating Companies [Member] | US Government Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		1,950
Fair Value, Measurements, Recurring | Operating Companies [Member] | US Government Debt Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0
Fair Value, Measurements, Recurring | Operating Companies [Member] | US Government Debt Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		0
Fair Value, Measurements, Recurring | Operating Companies [Member] | US Government Debt Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities sold, not yet purchased, at fair value		1,950
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		88		96
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		88		96
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Equity Swap | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		3,931		713
Fair Value, Measurements, Recurring | Consolidated Funds | Equity Swap | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Equity Swap | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		3,931		713
Fair Value, Measurements, Recurring | Consolidated Funds | Equity Swap | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Options | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		750		854
Fair Value, Measurements, Recurring | Consolidated Funds | Options | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		750		854
Fair Value, Measurements, Recurring | Consolidated Funds | Options | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Options | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Government Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		161,607		38,377
Fair Value, Measurements, Recurring | Consolidated Funds | Government Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		161,607		38,377
Fair Value, Measurements, Recurring | Consolidated Funds | 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 | Consolidated Funds | 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 | Consolidated Funds | Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		4,393		24,314
Fair Value, Measurements, Recurring | Consolidated Funds | Preferred Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | 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 | Consolidated Funds | Preferred Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		4,393		24,314
Fair Value, Measurements, Recurring | Consolidated Funds | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		200,306		95,565
Fair Value, Measurements, Recurring | Consolidated Funds | Common Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		200,306		95,471
Fair Value, Measurements, Recurring | Consolidated Funds | Common 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 | Consolidated Funds | Common Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		94
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		3,405		24,098
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate 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 | Consolidated Funds | Corporate Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		3,405		24,098
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Trading		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Warrants and Rights
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		5,567		5,279
Fair Value, Measurements, Recurring | Consolidated Funds | Warrants and Rights | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | 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 | Consolidated Funds | Warrants and Rights | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities, Equity		5,567		5,279
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		3,302		186
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		3,302		186
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		927		2,477
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		927		2,477
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		1,604		1,753
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		1,604		1,753
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		0		0
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset		$ 0		$ 0

[1] Includes the volume of contracts for index, equity, commodity future and cash conversion options.

[2] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[3] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[4] In accordance with the terms of the purchase agreements for acquisitions that closed during the second quarter of 2016 and the first quarter of 2019, 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 December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million.

[5] In accordance with the terms of the purchase agreements for the acquisition that closed during the second quarter of 2016, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired business, if certain targets are achieved through the periods ended December 31, 2020. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires 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 as of December 31, 2018 can range from $2.8 million to $3.4 million.

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Investments of Operating Entities and Consolidated Funds - Portfolio Funds - (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018
Investment Holdings [Line Items]
Other investments		$ 185,722		$ 181,407
Portfolio Funds
Investment Holdings [Line Items]
Other investments		114,504	[1]	124,741	[2]
Portfolio Funds | Starboard Value and Opportunity Fund LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[3],[4]	$ 37,895		32,579
Required notice period, withdrawal		90 days
Portfolio Funds | Formation 8 Partners Fund I LP
Investment Holdings [Line Items]
Other investments	[5]	$ 33,613		34,099
Portfolio Funds | RCGLongview Debt Fund V, L.P. | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[6]	1,732		4,394
Portfolio Funds | RCG Longview II, LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[6]	110		4,400
Portfolio Funds | Cowen Healthcare Investments II LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments		14,652	[4],[7]	14,939
Portfolio Funds | Eclipse Ventures Fund I, L.P.
Investment Holdings [Line Items]
Other investments	[8]	3,960		4,412
Portfolio Funds | Healthcare Royalty Partners | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[9]	1,326		1,833
Portfolio Funds | Lagunita Biosciences, LLC
Investment Holdings [Line Items]
Other investments	[10]	4,802		3,833
Portfolio Funds | Starboard Leaders Fund LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[11]	$ 1,560		1,230
Unfunded Commitment cancellation		30 days
Portfolio Funds | Elipse SPV I,LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments		$ 1,447	[4],[12]	1,447
Portfolio Funds | Triartisan PFC Partners, LLC | Affiliated Entity
Investment Holdings [Line Items]
Other investments		909		0
Portfolio Funds | Triartisan ES Partners, LLC | Affiliated Entity
Investment Holdings [Line Items]
Other investments		1,082		1,500
Portfolio Funds | RCG Longview Equity Fund, LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments		835	[4],[6]	802
Portfolio Funds | RCG Longview Debt Fund VI, LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[6]	0		1,586
Portfolio Funds | RCG Park Liberty GP Member LLC | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[6]	0		1,023
Portfolio Funds | Healthcare Royalty Partners II | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[9]	1,781		1,037
Portfolio Funds | RCGL PE MPA LLC | Affiliated Entity
Investment Holdings [Line Items]
Other investments		0	[4],[6]	618
Portfolio Funds | RCG LPP2 PNW5 Co-Invest, L.P. | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[13]	0		296
Portfolio Funds | Cowen Healthcare Investments III LP | Affiliated Entity
Investment Holdings [Line Items]
Other investments		1,398		0
Portfolio Funds | Difesa Partners LP [Member] | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[14]	508		0
Portfolio Funds | Other Private Investment | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[15]	4,448		11,625
Portfolio Funds | Other Funds | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[4],[16]	$ 2,446		3,088
Enterprise Master | Portfolio Funds
Investment Holdings [Line Items]
Other investments				112,394
Multi-strategy | Enterprise Master | Portfolio Funds | RCG Special Opportunities Fund, Ltd | Affiliated Entity
Investment Holdings [Line Items]
Other investments	[17]			111,548
Various Strategies | Enterprise Master | Portfolio Funds | Other Private Investment
Investment Holdings [Line Items]
Other investments				$ 846

[1] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[2] In accordance with US GAAP, certain investments are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Carried interest in portfolio funds have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition.

[3] Starboard Value and Opportunity Fund LP permits quarterly withdrawals upon 90 days' notice.

[4] These Portfolio Funds are affiliates of the Company.

[5] 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.

[6] RCG Longview Debt Fund V, L.P., RCG Longview II LP, RCG Park Liberty GP Member LLC, RCG Longview Equity Fund, LP, RCGL PE MPA, LLC and RCG Longview Debt Fund VI, LP are real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated.

[7] Cowen Healthcare Investments II LP is a private equity fund.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights

[8] Eclipse Ventures Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated.

[9] 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.

[10] 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.

[11] 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.

[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. (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.

[13] RCG LPP2 PNW5 Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired five multi-unit residential rental properties located in the Pacific Northwest. RCG LPP2 PNW5 Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.

[14] Difesa Partners, LP permits semi annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.

[15] Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.

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

[17] Affiliates of the Company.

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 55,870	$ 79,879	$ (37,091)
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Depreciation and amortization	20,460	12,436	13,078
Amortization of debt issuance costs	1,129	1,153	1,261
Amortization of debt discount	4,598	5,473	7,435
Noncash lease expense	(2,148)	0	0
Gain / (loss) on extinguishment of debt	0	(652)	(10,551)
Share-based compensation	33,918	37,018	28,443
Change in deferred taxes	13,295	15,486	45,856
Deferred rent obligations	0	(3,036)	(2,192)
Net loss (gain) on disposal of fixed assets	(233)	(15,343)	2,346
Goodwill Impairment	4,100	0	0
Purchases of securities owned, at fair value	(2,107,956)	(3,830,757)	(4,943,394)
Proceeds from sales of securities owned, at fair value	2,042,946	4,032,937	5,131,938
Proceeds from sales of securities sold, not yet purchased, at fair value	1,360,075	2,794,434	2,455,876
Payments to cover securities sold, not yet purchased, at fair value	(1,408,043)	(2,927,916)	(2,444,010)
Proceeds from other investments	23,886	10,157	0
Net (gains) losses on securities, derivatives and other investments	(74,284)	(54,032)	(78,303)
Consolidated Funds
Purchases of securities owned, at fair value	(2,725,439)	(887,728)	(385,544)
Proceeds from sales of securities owned, at fair value	2,618,200	835,002	338,268
Purchases of other investments	(3,408)	(2,835)	(26,206)
Proceeds from other investments	23,954	231,559	64,867
Net realized and unrealized (gains) losses on investments and other transactions	(90,900)	(52,807)	(28,267)
(Increase) decrease in operating assets:
Securities owned, at fair value, held at broker-dealer	(990,356)	(57,732)	(102,137)
Receivable on derivative contracts, at fair value	(37,522)	44,053	(46,277)
Securities borrowed	(346,646)	35,353	(184,827)
Deposits with clearing organizations, brokers and banks	(2,332)	4,573	(32,460)
Receivable from brokers, dealers and clearing organizations	104,418	(277,935)	(366,297)
Receivable from customers, net of allowance	(67,789)	12,033	(6,422)
Fees receivable, net of allowance	(7,143)	(6,401)	(29,669)
Due from related parties	7,120	1,405	4,815
Other assets	(6,501)	6,017	(33,454)
Consolidated Funds
Cash and cash equivalents	7,299	(19,501)	(4,227)
Receivable on derivative contracts, at fair value	(1,417)	(1,896)	(1,627)
Receivable from brokers	(17,636)	(2,684)	334
Other assets	(159)	(538)	123
Increase (decrease) in operating liabilities:
Securities sold, not yet purchased, at fair value, held at broker dealer	277,119	26,232	19,226
Payable for derivative contracts, at fair value	44,679	2,305	(1,399)
Securities loaned	1,187,014	(41,979)	170,472
Payable to brokers, dealers and clearing organizations	42,287	(23,422)	(32,440)
Payable to customers	(94,929)	172,686	340,666
Commission management payable	(23,650)	24,819	(15,857)
Compensation payable	(38,954)	64,456	9,150
Fees payable	(1,025)	14,518	(639)
Due to related parties	(5,320)	1	(3)
Accounts payable, accrued expenses and other liabilities	(3,148)	17,723	13,046
Increase (Decrease) in contributions received in advance, Consolidated Funds	50	0	(2,000)
Consolidated Funds
Payable to brokers	(22,657)	22,770	(2,949)
Payable for derivative contracts, at fair value	3,106	(5,467)	6,558
Due To Related Parties, Consolidated Funds	581	0	(189)
Accounts payable, accrued expenses and other liabilities	(129)	369	(330)
Net Cash Provided by (Used in) Operating Activities	(179,910)	324,176	3,398
Cash flows from investing activities:
Purchases of other investments	(19,812)	(28,092)	(10,419)
Purchase of business	(48,581)	0	(55,049)
Proceeds from sales of other investments	35,648	18,782	71,749
Payments to Acquire Loans Receivable	0	0	13,745
Proceeds from loans held for investment	0	14	3,203
Purchase of fixed assets	(14,882)	(8,586)	(5,986)
Proceeds from Sale of Property, Plant, and Equipment	0	0	7,850
Net Cash Provided by (Used in) Investing Activities	(47,627)	(17,882)	(2,397)
Proceeds from Convertible Debt	0	0	135,000
Cash flows from financing activities:
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase	23,244	0	0
Repayments on convertible debt	(20,860)	(13,500)	(115,140)
Deferred debt issuance cost	(2,077)	(3,985)	(7,176)
Borrowings on notes and other debt	87,365	102,382	171,148
Repayments on notes and other debt	(10,263)	(16,601)
Purchase of treasury stock	(15,217)	(31,762)	(19,662)
Contingent liability payment	(1,234)	(797)	(393)
Capital contributions by redeemable non-controlling interests in operating entities	11,110	941	0
Capital withdrawals to redeemable non-controlling interests in operating entities	(3,785)	(2,774)	(5,178)
Consolidated Funds
Capital contributions by redeemable non-controlling interests in Consolidated Funds	267,049	114,064	117,812
Capital withdrawals to redeemable non-controlling interests in Consolidated Funds	(111,650)	(276,357)	(65,803)
Net Cash Provided by (Used in) Financing Activities	200,438	(128,389)	137,851
Change in cash and cash equivalents	(27,099)	177,905	138,852
Total cash beginning of period	442,113	264,208	125,356
Cash and cash equivalents	301,123	259,148	130,052
Cash collateral pledged	6,563	6,318	17,888
Segregated cash	107,328	176,647	116,268
Total cash at end of period	415,014	442,113	264,208
Supplemental information
Cash paid during the year for interest	145,877	90,843	26,632
Cash paid during the year for taxes	4,310	3,881	2,172
Purchase of treasury stock, at cost, through net settlement	15,217	12,310	11,889
Preferred stock dividends	6,792	6,792	6,792
Net assets (liabilities) acquired upon acquisition (net of cash)	90,727	0	77,790
Operating right of use assets	92,852	0
Operating lease liabilities	97,581	0
Transfer of investment from consolidated funds, securities owned, fair value to securities owned, fair value	97,655	8,820	0
Net decrease in redeemable non-controlling interests in Consolidated Funds due to deconsolidation of consolidated fund	0	32,559
Separately recognized conversion option reclassification from a derivative liability to equity	(596)	28,974
Common stock issuance upon close of acquisition	14,446	0	47,607
ProceedsFromSecuritiesSoldNotYetPurchasedAtFairValue,ConsolidatedFunds	0	0	217
Payments to Acquire Securities Sold Not Yet Purchased at Fair Value, Consolidated Funds	0	0	899
Cash Acquired from Acquisition	$ 0	$ 0	159,587
Excess Tax Benefit from Share-based Compensation, Financing Activities			$ (72,757)

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Consolidated Statements of Financial Condition (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Security Owned and Pledged as Collateral, Fair Value	$ 112,451,000	$ 57,583,000
Allowance for receivable from customers	650,000	516,000
Allowance for fees receivable	2,620,000	1,569,000
Allowance for receivable from brokers	721,000	472,000
Assets
Fixed assets, accumulated depreciation and amortization (in dollars)	32,846,000	31,630,000
Intangible assets, accumulated amortization (in dollars)	$ 26,395,000	$ 38,093,000
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, shares outstanding	120,750	120,750
Preferred Stock, Liquidation Preference, Value	$ 120,750,000	$ 120,750,000
Common stock, shares authorized	125,000,000
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	47,215,938	43,774,371
Common stock, shares outstanding	28,610,357	28,437,860
Common stock, restricted shares	216,912	253,772
Treasury Stock, Shares	18,605,581	15,336,871
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

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of the Company's income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
	(dollars in thousands)
Current tax expense/(benefit)
Federal	$	(731)	$	(1,883)	$	421
State and local	457		(2,148)		2,034
Foreign	1,831		785		428
Total	$	1,557	$	(3,246)	$	2,883
Deferred tax expense/(benefit)
Federal	$	10,242	$	12,018	$	44,071
State and local	3,598		6,956		(2,938)
Foreign	(544)		(9)		37
Total	13,296		18,965		41,170
Total tax expense/(benefit)	$	14,853	$	15,719	$	44,053

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2019, 2018, and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
Pre-tax loss at U.S. statutory rate	21.0	%	21.0	%	35.0	%
Dividend received deduction	—		—		(25.9)
Bargain purchase gain	—		—		(34.8)
Basis adjustment on investments	—		3.5		65.2
Nondeductible expenses	4.1		1.2		14.2
Goodwill impairment	1.2		—		—
Change in valuation allowance	(4.0)		7.1		—
Impact of tax law change	—		—		669.8
State and foreign tax	8.0		(10.0)		25.3
Reversal of income attributable to non-controlling interests	(9.2)		(8.6)		(119.6)
Other, net	(0.1)		1.7		3.7
Total	21.0	%	15.9	%	632.9	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred tax assets, net of valuation allowance
Net operating loss	$	60,160	$	48,294
Deferred compensation	46,545		59,697
Intangible assets	2,969		—
Tax credits	6,716		9,036
Lease liability	24,623		2,098
Other	3,043		2,444
Total deferred tax assets	144,056		121,569
Valuation allowance	(5,234)		(9,135)
Deferred tax assets, net of valuation allowance	138,822		112,434
Deferred tax liabilities
Right-of-use assets	(23,028)		—
Unrealized gains on investments	(26,545)		(13,092)
Amortization of bond discount	(3,980)		(4,643)
Other	(6,103)		(1,642)
Total deferred tax liabilities	(59,656)		(19,377)
Deferred tax assets/(liabilities), net	$	79,166	$	93,057

Summary of Operating Loss Carryforwards [Table Text Block]

The Company has the following net operating loss carryforwards at December 31, 2019:

Jurisdiction:	Federal	New York State	New York City	Hong Kong
Net operating loss (in millions)	$175.1	$67.9	$108.8	$12.5
Year of expiration	2037	2037	2037	Indefinite

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

The components of unrecognized tax benefits are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Beginning balance at January 1	$	299	$	3,947
Increases/(Decreases) due to current year positions	—		(3,648)
Ending balance at December 31	$	299	$	299

Summary of Income Tax Examinations

The following are the major tax jurisdictions in which the Company has significant business operations and the earliest tax year subject to examination:

Jurisdiction:	Federal	New York State	New York City	United Kingdom	Luxembourg	Germany	Switzerland
Tax Year	2016	2013	2016	2015	2017	2015	2014

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income / (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Beginning Balance	$	(5)	$	(8)	$	(2)
Foreign currency translation	—		3		(6)
Ending Balance	$	(5)	$	(5)	$	(8)

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Guarantees and Off-Balance Sheet Arrangements Details (Tables)

12 Months Ended

Dec. 31, 2019

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 December 31, 2019.

Lender	Contractual Amount		Available Amount		Maturity Date	Description
Pledge Lines	(dollars in thousands)
Texas Capital Bank	$	75,000	$	75,000	None	Secured Depository Trust Company Pledge Line
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	300,000		300,000
Revolving Credit Facility
BMO Harris Bank Canadian Imperial Bank of Commerce Texas Capital Bank	70,000		70,000		August 21, 2020	(Syndicated) Unsecured liquidity facility to cover increases in National Securities Clearing Corporation margin deposit requirements
BMO Harris Bank	25,000		25,000		December 2, 2021	Secured Corporate Revolver
Total	95,000		95,000
Total Credit Lines	$	395,000	$	395,000

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Acquisition (Preliminary Purchase Price Allocation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 02, 2019	Jan. 01, 2019
Business Acquisition [Line Items]
Operating lease right-of-use assets	$ 92,852	$ 0			$ 103,694
Operating lease liabilities	(97,581)	0			$ (110,505)
Goodwill	0	$ 0	$ 6,914
Quarton
Business Acquisition [Line Items]
Operating lease right-of-use assets				$ 3,200
Intangible assets				22,200
Operating lease liabilities				(3,200)
Total estimated purchase price	103,000
Scenario, Plan | Quarton
Business Acquisition [Line Items]
Cash and cash equivalents				12,236
Fees receivable				7,269
Fixed assets				1,085
Intangible assets				22,200
Other assets				667
Compensation payable				637
Due to related parties				4,750
Accounts payable, accrued expenses and other liabilities				16,257
Total identifiable net assets acquired and liabilities assumed				$ 21,813
Goodwill	81,150
Total estimated purchase price	$ 102,963

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Other Assets (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2019
Prepaid Expense		$ 11,989	$ 9,957
Reinsurance Recoverables, Including Reinsurance Premium Paid	[1]	18,167	14,688
Tax receivables		7,029	8,464
Interest and dividends receivable		2,413	1,944
Reinsurance Recoverables, Incurred but Not Reported Claims	[1]	4,696	4,808
Financing Receivable, before Allowance for Credit Loss, Current	[2]	21,504	27,459
Other Assets, Miscellaneous		13,216	16,838
Other Assets		$ 79,014	$ 84,158
Convertible Bonds
Investment Interest Rate		8.00%	8.00%
Reinsurance assets [Member]
Investment Interest Rate			3.00%
Reinsurance assets [Member]
Other Assets, Miscellaneous		$ 4,900	$ 7,500
Loans | Hollenfels | Minimum
Effective interest rate		8.00%
Loans | Hollenfels | Maximum
Effective interest rate		8.50%

[1] Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).(c) As of December 31, 2019 and 2018, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.5 million and$4.9 million, respectively.

[2] The terms of the loan were revised as of December 31, 2019 to a maturity date of December 2029 and interest rate of 3%, related to the Company's commercial reinsurance activities.

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Reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Incurred and paid claims	$ 24,380	$ 14,800
Historical Average Claims Ratios, Period, Maximum	10 years
Hollenfels
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items]
Claims IBNR	$ 5,647	$ 11,800

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Cash Collateral Pledged (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash collateral pledged	$ 6,563	$ 6,318	$ 17,888
Facility Leases
Cash collateral pledged	4,600	5,300
Collateral Reinsurance Agreement
Cash collateral pledged	$ 2,000	$ 1,000

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Accounts Payable, Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred rent obligations	$	—	$	8,242
Contingent consideration payable (see Note 3)	30,896		3,070
Equity in RCG Longview Partners II, LLC (see Note 6)	—		6,367
Interest and dividends payable	5,828		2,483
Loss reserves and claims incurred but not reported (a)	30,282		23,714
Professional fees payable	4,789		5,177
Unearned premiums (a)	16,092		12,483
Fees payable	4,628		594
Accrued tax liabilities	2,778		1,742
Software contracts payable	2,884		—
Performance fees payable	3,708		5,959
Accrued expenses and accounts payable (b)	39,671		40,592
	$	141,556	$	110,423

(a) Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

(b) As of December 31, 2019 and 2018, the balance includes reinsurance premiums payable of $13.2 million and $15.7 million, respectively.

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Receivables from and payables to brokers, dealers and clearing organizations receivables from brokers, dealers, and clearing organization (Tables)

12 Months Ended

Dec. 31, 2019

Receivables from Brokers-Dealers and Clearing Organizations [Abstract]

Schedule of Due to (from) Broker-Dealers and Clearing Organizations

As of December 31, 2019 and 2018, amounts receivable from brokers, dealers and clearing organizations include:

	As of December 31,
	2019		2018
	(dollars in thousands)
Broker-dealers	$	623,523	$	692,581
Securities failed to deliver	45,673		72,918
Clearing organizations	3,180		15,319
Securities borrowed interest receivable	9,319		5,295
	$	681,695	$	786,113

As of December 31, 2019 and 2018, amounts payable to brokers, dealers and clearing organizations include:

	As of December 31,
	2019		2018
	(dollars in thousands)
Broker-dealers	$	185,838	$	159,443
Securities failed to receive	57,580		28,826
Clearing organizations	18,063		36,338
Securities loaned interest payable	9,537		4,124
	$	271,018	$	228,731

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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Property, Plant and Equipment Useful Life

Asset	Depreciable Lives	Depreciation and/or Amortization Method
Telecommunication and computer equipment	5 years	Straight-line
Computer software	4 years	Straight-line
Furniture and fixtures	5 years	Straight-line
Leasehold improvements	Term of Lease	Straight-line
Finance lease right-of-use asset	Term of Lease	Straight-line

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following tables summarize the impacts of adopting ASC Topic 606 on the Company’s consolidated financial statements.

Consolidated Statements of Financial Condition	As of December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Assets
Fees receivable, net of allowance	$	111,946	$	17,995	$	129,941
Other investments	181,407		(17,995)		163,412
Stockholder's equity	$	794,407	$	1,002	$	795,409

Consolidated Statements of Operation	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Revenues
Investment banking	$	357,222	$	(28,160)	$	329,062
Incentive income	3,117		15,911		19,028
Total revenues	966,916		(12,249)		954,667
Expenses
Underwriting expenses	15,282		(15,282)		—
Professional, advisory and other fees	40,957		(7,861)		33,096
Service fees	20,198		(42)		20,156
Communications	30,801		(1,449)		29,352
Occupancy and equipment	41,602		(14)		41,588
Client services and business development	35,927		(3,373)		32,554
Other expenses	22,014		(139)		21,875
Total expenses	890,944		(28,160)		862,784
Net gains (losses) on securities, derivatives and other investments	68,043		15,469		83,512
Net income (loss) attributable to Cowen Inc. common stockholders	$	36,027	$	442	$	36,469

Consolidated Statements of Cash Flows	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Cash flows from operating activities:
Net income (loss)	$	79,879	$	442	$	80,321
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Net (gains) losses on securities, derivatives, and other investments	(54,032)		12,331		(41,701)
(Increase) decrease in operating assets:
Fees receivable, net of allowance	(6,401)		(11,962)		(18,363)
Net cash provided by / (used in) operating activities	324,176		811		324,987
Cash flows from investing activities:
Purchase of other investments	(28,092)		(812)		(28,904)
Net cash provided by / (used in) investing activities	$	(17,882)	$	(812)	$	(18,694)

(a) The amounts reflected above represent items as they would have been reported prior to adoption of ASC 606.

Revenue from External Customers by Products and Services

For the years ended December 31, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Year Ended December 31,
		2019		2018
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	211,666	$	215,723
Strategic/financial advisory fees		79,208		81,733
Placement and sales agent fees		69,070		46,888
Expense reimbursements from clients		15,081		12,878
	Total investment banking revenue	375,025		357,222
Brokerage
Commissions		356,668		366,090
Trade conversion revenue		12,531		17,061
Equity research fees		19,006		20,184
	Total brokerage revenue from customers	388,205		403,335
Management fees		31,361		26,080
Incentive income		1,532		3,117
Total revenue from contracts with customers - Op Co		$	796,123	$	789,754
		Asset Company
Management fees		1,248		3,578
Incentive income		15		—
Total revenue from contracts with customers - Asset Co		1,263		3,578
Total revenue from contracts with customers		$	797,386	$	793,332

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Commission Management Payable (Notes)	12 Months Ended
	Dec. 31, 2019
Commission Management Payable [Abstract]
Commission management payable [Text Block]	Commission Management PayableThe Company receives a gross commission from various clearing 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 $71.6 million and $95.3 million, as of December 31, 2019 and 2018, respectively, are classified as commission management payable in the accompanying consolidated statements of financial condition.

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Other Revenues and Expenses	12 Months Ended
	Dec. 31, 2019
Other Revenues and Expenses [Abstract]
Other Income and Other Expense Disclosure [Text Block]	Other Revenues and ExpensesOther expenses, during the years ended December 31, 2019, 2018, and 2017, are primarily the general administrative expenses of the various operating company subsidiaries or the Consolidated Funds.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

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 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 consolidated statements of operations.

For the year ended December 31, 2019, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statement of operations were as follows:

	Year Ended December 31, 2019
	(dollars in thousands)
Lease cost
Operating lease cost	$	23,540
Short-term lease cost	253
Variable lease cost	1,017
Sublease income	(953)
Total lease costs	$	23,857

The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the year ended December 31, 2019:

	Year Ended December 31, 2019
	(dollars in thousands)
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,743
Weighted average remaining lease term - operating leases (in years)	5.34
Weighted average discount rate - operating leases	4.13		%

As of December 31, 2019, maturities of the outstanding operating lease liabilities for the Company were as follows:

	Equipment Leases (operating) (b)		Real Estate and Other Facility Rental (a)
	(dollars in thousands)
2020	$	360	$	22,848
2021	206		24,271
2022	73		20,766
2023	—		17,610
2024	—		14,789
Thereafter	—		10,225
Total operating leases	639		110,509
Less discount	24		13,290
Less short-term leases	—		253
Total lease liability	$	615	$	96,966

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

(b)During the twelve months ended December 31, 2019, the Company recognized operating right-of-use assets and leases liabilities of $6.9 million for equipment leases.

See Note 23 for further information on the finance lease minimum payments.

Prior to the adoption of the new lease accounting guidance, the minimum rental commitments under non-cancelable operating leases at December 31, 2018, were as follows:

	Equipment Leases (a)		Service Payments		Real Estate and Other Facility Rental (b)
	(dollars in thousands)
2019	$	2,434	$	21,758	$	24,584
2020	1,492		7,514		22,608
2021	1,382		1,877		22,321
2022	1,123		1,372		19,166
2023	374		735		16,204
Thereafter	—		735		21,478
	$	6,805	$	33,991	$	126,361

(a)Equipment Leases includes the Company's commitments relating to operating and finance leases. See Note 23 for further information on the finance lease minimum payments which are included in the table.

(b)The Company has entered into various agreements to sublease certain of its premises. The Company recorded sublease income related to these leases of $1.4 million and $1.1 million for the years ended December 31, 2018 and 2017, respectively.

Other Commitments

As of December 31, 2019, future minimum annual service payments for the Company were as follows:

	Service Payments
	(dollars in thousands)
2020	$	22,217
2021	14,674
2022	9,358
2023	4,095
2024	1,938
Thereafter	4,401
Total service payment commitments	$	56,683

Clawback Obligations

For financial reporting purposes, the general partners of a real estate fund had recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the real estate fund's remaining investments and where the real estate fund's general partner has previously received carried interest distributions. The clawback liability was not realized until the end of the real estate fund's life. The Company's share of the clawback obligations for the real estate fund, for which the Company has an interest in the general partner, was $6.5 million at December 31, 2018, which is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. The liability was fully repaid in December 2019 (see Note 6 to the Company's consolidated financial statements).

The Company serves as the general partner/managing member and/or investment manager to various affiliated and sponsored investment funds. As such, the Company is contingently liable for obligations for those entities. These amounts are not included above as the Company believes that the assets in these investment funds are sufficient to discharge any liabilities.

Unfunded Commitments

The following table summarizes unfunded commitments as of December 31, 2019:

Entity	Unfunded Commitments		Commitment Term
	(dollars in thousands)
HealthCare Royalty Partners funds (a)	$	7,605	5 years
Eclipse Ventures Fund I, L.P. (formerly Formation8 Partners Hardware Fund I, L.P.)	$	88	5 years
Lagunita Biosciences, LLC	$	500	4 years
Eclipse Fund II, L.P.	$	180	6 years
Eclipse Continuity Fund I, L.P.	$	152	7 years
Cowen Healthcare Investments II LP	$	3,406	2 years
Cowen Healthcare Investments III LP	$	8,602	7 years
Cowen Sustainable Investments I LP	$	25,000	10 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 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 (Details)		12 Months Ended
		Dec. 31, 2019 USD ($) segment customer		Dec. 31, 2018 USD ($)		Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment		2
Entity-wide revenue, major customer, number | customer		0
Revenues
Investment banking		$ 375,025,000		$ 357,222,000		$ 223,614,000
Brokerage		402,747,000		413,582,000		293,610,000
Management fees		32,608,000		29,658,000		33,245,000
Incentive income		1,547,000		3,117,000		5,383,000
Investment Income		0		0		0
Interest and dividends		174,913,000		108,009,000		49,440,000
Reimbursement from affiliates		1,026,000		1,038,000		2,860,000
Aircraft lease revenue		0		1,852,000		3,751,000
Reinsurance premiums		46,335,000		38,096,000		30,996,000
Other revenues		5,433,000		4,504,000		8,561,000
Total revenues		1,049,443,000		966,916,000		658,781,000
Interest expense		168,628,000		104,116,000		60,949,000
Total net revenues		880,815,000		862,800,000		597,832,000
Expenses
Non-interest expense		935,801,000		882,329,000		684,123,000
Goodwill Impairment		4,100,000		0		0
Total expenses		948,864,000		890,944,000		696,649,000
Other income (loss)
Total other income (loss)		138,772,000		123,742,000		105,779,000
Income tax expense (benefit)		14,853,000		15,719,000		44,053,000
(Net Income (Loss) Attributable to Noncontrolling Interest		(31,239,000)		(37,060,000)		(23,791,000)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc.		24,631,000		42,819,000		(60,882,000)
Preferred stock dividends		6,792,000		6,792,000		6,792,000
Net income (loss) attributable to Cowen Inc. common stockholders		17,839,000		36,027,000		(67,674,000)
Consolidated Funds
Revenues
Total revenues		9,809,000		9,838,000		7,321,000
Expenses
Total expenses		8,963,000		8,615,000		12,526,000
Other income (loss)
(Net Income (Loss) Attributable to Noncontrolling Interest		(34,503,000)		(33,883,000)		(21,438,000)
Operating Company
Revenues
Management fees		31,361,000		26,080,000
Incentive income		1,532,000		3,117,000
Asset Company
Revenues
Management fees		1,248,000		3,578,000
Incentive income		15,000		0
Operating Segments
Revenues
Investment banking		352,192,000		329,061,000		223,614,000
Brokerage		440,413,000		452,299,000		312,780,000
Management fees		45,674,000		49,175,000		55,387,000
Incentive income		46,193,000		23,747,000		26,028,000
Investment Income		54,455,000		56,346,000		45,142,000
Interest and dividends		0		0		0
Reimbursement from affiliates		0		0		0
Aircraft lease revenue				0		0
Reinsurance premiums		0		0		0
Other revenues		5,843,000		(1,168,000)		3,231,000
Total revenues		944,770,000		909,460,000		666,182,000
Interest expense		28,025,000		23,013,000		18,888,000
Total net revenues		916,745,000		886,447,000		647,294,000
Expenses
Non-interest expense		856,515,000		805,359,000		625,387,000
Goodwill Impairment		0
Total expenses		856,515,000		805,359,000		625,387,000
Other income (loss)
Total other income (loss)		0		0		0
Income tax expense (benefit)		0		0		0
(Net Income (Loss) Attributable to Noncontrolling Interest		(4,796,000)		(4,954,000)		(6,072,000)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc.		55,434,000		76,134,000		15,835,000
Preferred stock dividends		6,792,000		6,792,000		6,792,000
Net income (loss) attributable to Cowen Inc. common stockholders		48,642,000		69,342,000		9,043,000
Other Depreciation and Amortization		20,439,000		11,583,000		11,558,000
Economic Operating Income		69,081,000		80,925,000		20,601,000
Operating Segments | Consolidated Funds
Revenues
Other revenues						0
Total revenues		0		0
Expenses
Total expenses		0		0		0
Operating Segments | Operating Company
Revenues
Investment banking		352,192,000		329,061,000		223,614,000
Brokerage		440,413,000		452,299,000		312,780,000
Management fees		43,698,000		43,466,000		45,007,000
Incentive income		45,041,000		16,851,000		17,872,000
Investment Income		51,344,000		53,593,000		7,204,000
Interest and dividends		0		0		0
Reimbursement from affiliates		0		0		0
Aircraft lease revenue				0		0
Reinsurance premiums		0		0		0
Other revenues		5,785,000		(1,619,000)		3,307,000
Total revenues		938,473,000		893,651,000		609,784,000
Interest expense		22,576,000		17,489,000		13,599,000
Total net revenues		915,897,000		876,162,000		596,185,000
Expenses
Non-interest expense		847,485,000		788,272,000		584,816,000
Goodwill Impairment		0
Total expenses		847,485,000		788,272,000		584,816,000
Other income (loss)
Total other income (loss)		0		0		0
Income tax expense (benefit)		0		0		0
(Net Income (Loss) Attributable to Noncontrolling Interest		(4,796,000)		(4,212,000)		(5,178,000)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc.		63,616,000		83,678,000		6,191,000
Preferred stock dividends		5,434,000		5,162,000		4,890,000
Net income (loss) attributable to Cowen Inc. common stockholders		58,182,000		78,516,000		1,301,000
Other Depreciation and Amortization		20,403,000		11,402,000		11,211,000
Economic Operating Income		78,585,000		89,918,000		12,512,000
Operating Segments | Operating Company | Consolidated Funds
Revenues
Other revenues						0
Total revenues		0		0
Expenses
Total expenses		0		0		0
Operating Segments | Asset Company
Revenues
Investment banking		0		0		0
Brokerage		0		0		0
Management fees		1,976,000		5,709,000		10,380,000
Incentive income		1,152,000		6,896,000		8,156,000
Investment Income		3,111,000		2,753,000		37,938,000
Interest and dividends		0		0		0
Reimbursement from affiliates		0		0		0
Aircraft lease revenue				0		0
Reinsurance premiums		0		0		0
Other revenues		58,000		451,000		(76,000)
Total revenues		6,297,000		15,809,000		56,398,000
Interest expense		5,449,000		5,524,000		5,289,000
Total net revenues		848,000		10,285,000		51,109,000
Expenses
Non-interest expense		9,030,000		17,087,000		40,571,000
Goodwill Impairment		0
Total expenses		9,030,000		17,087,000		40,571,000
Other income (loss)
Total other income (loss)		0		0		0
Income tax expense (benefit)		0		0		0
(Net Income (Loss) Attributable to Noncontrolling Interest		0		(742,000)		(894,000)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc.		(8,182,000)		(7,544,000)		9,644,000
Preferred stock dividends		1,358,000		1,630,000		1,902,000
Net income (loss) attributable to Cowen Inc. common stockholders		(9,540,000)		(9,174,000)		7,742,000
Other Depreciation and Amortization		36,000		181,000		347,000
Economic Operating Income		(9,504,000)		(8,993,000)		8,089,000
Operating Segments | Asset Company | Consolidated Funds
Revenues
Other revenues						0
Total revenues		0		0
Expenses
Total expenses		0		0		0
Adjustments | Funds Consolidation
Revenues
Investment banking		0		0		0
Brokerage		0		0		0
Management fees		(2,270,000)		(2,513,000)		(2,593,000)
Incentive income		(600,000)		(52,000)		(1,739,000)
Investment Income		0		0		0
Interest and dividends		0		0		0
Reimbursement from affiliates		(122,000)		(269,000)		(297,000)
Aircraft lease revenue				0		0
Reinsurance premiums		0		0		0
Other revenues		(14,000)		0		0
Total revenues		6,803,000		7,004,000		2,692,000
Interest expense		0		0		0
Total net revenues		6,803,000		7,004,000		2,692,000
Expenses
Non-interest expense		0		0		(199,000)
Goodwill Impairment		0
Total expenses		8,963,000		8,615,000		12,327,000
Other income (loss)
Total other income (loss)		36,663,000		35,494,000		31,073,000
Income tax expense (benefit)		0		0		0
(Net Income (Loss) Attributable to Noncontrolling Interest		(34,503,000)		(33,883,000)		(21,438,000)
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc.		0		0		0
Preferred stock dividends		0		0
Net income (loss) attributable to Cowen Inc. common stockholders		0		0
Adjustments | Funds Consolidation | Consolidated Funds
Revenues
Total revenues		9,809,000		9,838,000		7,321,000
Expenses
Total expenses		8,963,000		8,615,000		12,526,000
Adjustments | Other Adjustments
Revenues
Investment banking		22,833,000	[1]	28,161,000	[1]	0
Brokerage	[2]	(37,666,000)		(38,717,000)		(19,170,000)
Management fees	[3]	(10,796,000)		(17,004,000)		(19,549,000)
Incentive income	[3]	(44,046,000)		(20,578,000)		(18,906,000)
Investment Income	[4]	(54,455,000)		(56,346,000)	[5]	(45,142,000)	[5]
Interest and dividends	[2],[4]	174,913,000		108,009,000		49,440,000
Reimbursement from affiliates	[6]	1,148,000		1,307,000		3,157,000
Aircraft lease revenue	[5]			1,852,000		3,751,000
Reinsurance premiums	[7]	46,335,000		38,096,000		30,996,000
Other revenues	[7]	(396,000)		5,672,000		5,330,000
Total revenues		97,870,000		50,452,000		(10,093,000)
Interest expense	[4]	140,603,000	[2]	81,103,000		42,061,000
Total net revenues		(42,733,000)		(30,651,000)		(52,154,000)
Expenses
Non-interest expense	[1],[6],[8],[9]	79,286,000		76,970,000		58,935,000
Goodwill Impairment		4,100,000
Total expenses		83,386,000		76,970,000		58,935,000
Other income (loss)
Total other income (loss)	[3],[4],[9]	102,109,000		88,248,000	[10]	74,706,000	[10],[11]
Income tax expense (benefit)	[8]	14,853,000		15,719,000		44,053,000
(Net Income (Loss) Attributable to Noncontrolling Interest		8,060,000		1,777,000		3,719,000
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc.		(30,803,000)		(33,315,000)		(76,717,000)
Preferred stock dividends		0		0
Net income (loss) attributable to Cowen Inc. common stockholders		(30,803,000)		(33,315,000)
Adjustments | Other Adjustments | Consolidated Funds
Revenues
Total revenues		0		0		0
Expenses
Total expenses		$ 0		$ 0		$ 0

[1] Economic Income (Loss) presents underwriting expenses net of investment banking revenues, expenses reimbursed from clients within their respective expense category. Economic Income (Loss) also records retainer fees, relating to investment banking activities, collectible during the period that would otherwise be deferred until closing for US GAAP reporting.

[2] Economic Income (Loss) brokerage revenues included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP.

[3] Economic Income (Loss) recognizes revenues (i) net of fund start-up costs and distribution fees paid to agents, (ii) records income from uncrystallized incentive fees and (iii) the Company's proportionate share of management and incentive fees of certain real estate operating entities, the healthcare royalty business and the activist business.

[4] Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends ) for which the majority of this activity is shown in other income (loss) for US GAAP reporting.

[5] Aircraft lease revenue is shown net of expenses in investment income for Economic Income (Loss).

[6] Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP.

[7] Economic Income (Loss) recognizes underwriting income from the Company's insurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting.

[8] Economic Income (Loss) excludes income taxes and acquisition related adjustments as management does not consider these items when evaluating the performance of the segment.

[9] Economic Income (Loss) recognizes the Company's proportionate share of expenses, for certain real estate operating entities and the activist business, for which the investments are recorded under the equity method of accounting for investments.

[10] Economic Income (Loss) excludes gain/(loss) on debt extinguishment.

[11] Economic Income (Loss) excludes the bargain purchase gain which resulted from the Convergex Group acquisition

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Convertible Debt and Notes Payable (Details)		12 Months Ended
		Dec. 31, 2019 USD ($) letters_of_credit $ / shares	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($)	Jul. 01, 2019 USD ($)	May 07, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 11, 2018 USD ($)	Dec. 14, 2017 USD ($) $ / shares	Dec. 08, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 10, 2014 USD ($)
Debt and Capital Lease Obligations [Line Items]
Finance Lease, Right-of-Use Asset, Amortization		$ 1,266,000	$ 1,627,000
Finance Lease, Interest Expense		227,000	231,000
Finance Lease, Interest Payment on Liability		227,000	231,000
Finance Lease, Principal Payments		1,266,000	2,186,000
Components of short-term borrowings and other debt
Convertible debt	[1]	118,688,000	134,489,000
Note payable		306,818,000	229,740,000
Loans Payable to Bank		32,180,000	28,200,000
Other Notes Payable		2,516,000	0
Capital lease obligations		3,937,000	5,025,000
Debt, Long-term and Short-term, Combined Amount		464,139,000	397,454,000
Purchase of treasury stock, cost		34,500,000
Amortization of debt discount		4,598,000	5,473,000	$ 7,435,000
Debt Instrument, Periodic Payment, Principal		100,000
Letter of credit, borrowing capacity		395,000,000
Future minimum lease payments for capital lease obligations
2020		1,290,000
2021		1,398,000
2022		1,166,000
2023		411,000
2024		11,000
Thereafter		0
Subtotal		4,276,000
Less: Amount representing interest	[2]	(339,000)
Capital lease obligations		$ 3,937,000	5,025,000
Number of letters of credit | letters_of_credit		6
Cash collateral pledged		$ 6,563,000	$ 6,318,000	17,888,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01
Finance Lease, Weighted Average Remaining Lease Term		3 years 2 months 15 days
Finance Lease, Weighted Average Discount Rate, Percent		4.88%
Other Long-term Debt		$ 2,500,000
Borrowings on other long term debt		2,600,000
Letter of Credit, Boston Office, Expires March 2020 | Letter of Credit
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		382,000
Letter of Credit, NY Office 1, Expires April 2020 | Letter of Credit
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		359,000
Letter of Credit, NY Office 3, Expires October 2020 | Letter of Credit
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		398,000
Letter of Credit, NY Office 4, Expires October 2020 | Letter of Credit
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		1,125,000
Letter of Credit, NY Office 5, Expires November 2020 | Letter of Credit
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		1,629,000
Letter of Credit, San Francisco Office, Expires October 2025 | Letter of Credit
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		716,000
Convertible Debt
Components of short-term borrowings and other debt
Convertible debt, unamortized discount		14,900,000	$ 19,500,000
Repayments on long-term and short-term borrowings
2020		4,050,000
2021		4,050,000
2022		139,050,000
2023		0
2024		0
Thereafter		0
Subtotal		147,150,000
Less: Amount representing interest	[2]	(28,462,000)
Senior Notes
Components of short-term borrowings and other debt
Note payable		306,818,000
Repayments on long-term and short-term borrowings
2020		23,548,000
2021		23,548,000
2022		23,548,000
2023		23,548,000
2024		98,721,000
Thereafter		334,304,000
Subtotal		527,217,000
Less: Amount representing interest	[2]	(220,399,000)
Loans
Repayments on long-term and short-term borrowings
2020		33,126,000
2021		0
2022		0
2023		0
2024		0
Thereafter		0
Subtotal		33,126,000
Less: Amount representing interest	[2]	(946,000)
Insurance Note and Aircraft
Repayments on long-term and short-term borrowings
2020		593,000
2021		593,000
2022		593,000
2023		593,000
2024		543,000
Thereafter		0
Subtotal		2,915,000
Less: Amount representing interest	[2]	$ (399,000)
Insurance Note
Components of short-term borrowings and other debt
Interest rate		2.51%
Interest Expense, Debt, Excluding Amortization		$ 100,000
Debt Instrument, Periodic Payment, Principal		200,000
Notes Payable to Banks
Components of short-term borrowings and other debt
Debt Instrument, Face Amount					$ 4,000,000.0						$ 28,200,000
Interest Expense, Debt, Excluding Amortization		$ 1,800,000	1,600,000	700,000
Short-term Debt, Percentage Bearing Variable Interest Rate		3.75%
2022 convertible note | Convertible Debt
Components of short-term borrowings and other debt
Convertible debt		$ 135,000,000.0
Debt Instrument, Face Amount									$ 135,000,000.0
Debt Instrument, Convertible, Conversion Price | $ / shares									$ 17.375
Purchase of treasury stock, cost		19,500,000
Interest on Convertible Debt, Net of Tax		4,100,000	4,100,000	200,000
Convertible debt, unamortized discount									$ 23,400,000			$ 23,400,000
Amortization of debt discount		4,300,000	4,000,000.0	200,000
Debt Instrument, Interest Rate, Effective Percentage									7.13%
Debt Issuance Costs, Gross									$ 2,200,000
2019 convertible note | Convertible Debt
Components of short-term borrowings and other debt
Debt Instrument, Face Amount												$ 149,500,000
Debt Instrument, Repurchase Amount									115,100,000
Interest on Convertible Debt, Net of Tax		100,000	1,100,000	4,300,000
Amortization of debt discount		300,000	1,500,000	7,300,000
Debt Instrument, Interest Rate, Effective Percentage												8.89%
Interest rate												3.00%
2024 Notes | Senior Notes
Components of short-term borrowings and other debt
Debt Instrument, Face Amount						$ 53,000,000.0
Debt Issuance Costs, Gross		600,000				$ 1,500,000
Interest rate						7.25%
Debt Instrument, Additional amount issued		25,000,000.0
Debt Instrument, Unamortized Premium		500,000
Interest Expense, Debt, Excluding Amortization		2,900,000
2033 Notes | Senior Notes
Components of short-term borrowings and other debt
Debt Instrument, Face Amount							$ 10,000,000.0	$ 90,000,000.0
Debt Issuance Costs, Gross								$ 3,600,000
Interest rate								7.75%
Interest Expense, Debt, Excluding Amortization		7,700,000	4,300,000
2027 Notes | Senior Notes
Components of short-term borrowings and other debt
Debt Instrument, Face Amount									$ 18,000,000.0	$ 120,000,000.0
Debt Issuance Costs, Gross										$ 5,000,000.0
Interest rate										7.35%
Interest Expense, Debt, Excluding Amortization		10,100,000	10,100,000	$ 600,000
Insurance Note
Components of short-term borrowings and other debt
Short-term Debt, Maximum Amount Outstanding During Period		2,200,000
Revolving Credit Facility
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		95,000,000
Revolving Credit Facility | BMO Harris Bank
Components of short-term borrowings and other debt
Letter of credit, borrowing capacity		25,000,000
Collateral Reinsurance Agreement
Future minimum lease payments for capital lease obligations
Cash collateral pledged		$ 2,000,000.0	$ 1,000,000.0

[1] The carrying amount of the convertible debt includes an unamortized discount of $14.9 million and $19.5 million as of December 31, 2019 and 2018, respectively.

[2] 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 convertible debt.

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Acquisition (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 02, 2019	Jan. 01, 2019
Business Acquisition [Line Items]
Purchase of business	$ 48,581	$ 0	$ 55,049
Business combination, contingent consideration, liability	30,896	3,070
Amortization of Intangible Assets	13,100	5,000	6,100
Revenues	1,049,443	966,916	658,781
Net income (loss) attributable to Cowen Inc.	24,631	42,819	(60,882)
Operating lease right-of-use assets	92,852	0			$ 103,694
Business Combination, Bargain Purchase, Gain Recognized, Amount	0	0	6,914
Restructuring Costs	0	$ 0	$ 8,763
Quarton
Business Acquisition [Line Items]
Total estimated purchase price	103,000
Purchase of business	75,300
Business combination, contingent consideration, liability				$ 40,000
Other payments to acquire businesses	600
Business combination, contingency liability, retention of employee, bonus pool, maximum	$ 10,000
Business combination, contingency liability, retention of employee, bonus pool, period	5 years
Business combination, contingency liability, retention of employee, bonus pool, annual maximum payout	$ 2,500
Intangible assets				22,200
Amortization of Intangible Assets	8,900
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed	1,200
Revenues	34,800
Net income (loss) attributable to Cowen Inc.	$ 5,700
Operating lease right-of-use assets				3,200
Common Stock Class A | Quarton
Business Acquisition [Line Items]
Business acquisition, equity interest issued or issuable, number of shares	1,033,350
Business acquisition, share price		$ 14.52
Fair Value, Measurements, Recurring | Level 3 | Quarton
Business Acquisition [Line Items]
Business combination, contingent consideration, liability				27,700
Minimum | Quarton
Business Acquisition [Line Items]
Business combination, contingent consideration, liability				10,000
Maximum | Quarton
Business Acquisition [Line Items]
Business combination, contingent consideration, liability				$ 40,000

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Goodwill and Intangibles Amortization of Intangible Assets (Details) (Annual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 13,100	$ 5,000	$ 6,100
Impairment of Intangible Assets, Finite-lived	0	0
2020	13,035
2021	6,735
2022	5,120
2023	3,006
2024	2,707
Thereafter	4,597
Finite-Lived Intangible Assets, Net	35,200
Intangible Assets, Net (Excluding Goodwill)	35,200	24,943
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Net (Excluding Goodwill)	$ 35,200	$ 24,943

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Non-Controlling Interests in Consolidated Subsidiaries and Funds (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Noncontrolling Interest [Line Items]
Redeemable non-controlling interests in consolidated subsidiaries and funds	$ 391,275	$ 216,923
Nonredeemable Noncontrolling Interest	485,595	281,803
Net Income (Loss) Attributable to Noncontrolling Interest	31,239	37,060	$ 23,791
Operating Entities
Noncontrolling Interest [Line Items]
Nonredeemable Noncontrolling Interest	11,513	7,457
Net Income (Loss) Attributable to Noncontrolling Interest	(3,264)	3,177	2,353
Consolidated Funds
Noncontrolling Interest [Line Items]
Redeemable non-controlling interests in consolidated subsidiaries and funds	391,275	216,923
Nonredeemable Noncontrolling Interest	82,807	57,423
Net Income (Loss) Attributable to Noncontrolling Interest	$ 34,503	$ 33,883	$ 21,438

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Acquisition (Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Amortization of Intangible Assets	$ 13,100	$ 5,000	$ 6,100
2021	6,735
2022	5,120
2023	3,006
2024	2,707
Thereafter	4,597
Finite-Lived Intangible Assets, Net	35,200
Quarton
Business Acquisition [Line Items]
Amortization of Intangible Assets	8,900
Scenario, Plan | Quarton
Business Acquisition [Line Items]
2020	8,908
2021	2,608
2022	1,775
2023	0
2024	0
Thereafter	0
Finite-Lived Intangible Assets, Net	$ 13,291

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Fixed Assets (Tables)

12 Months Ended

Dec. 31, 2019

Fixed Assets [Abstract]

Property, Plant and Equipment [Table Text Block]

As of December 31, 2019 and 2018, fixed assets consisted of the following:

	As of December 31,
	2019		2018
	(dollars in thousands)
Telecommunication and computer equipment	$	7,556	$	3,301
Computer software	8,952		4,214
Furniture and fixtures	3,526		2,829
Leasehold improvements	40,301		37,652
Finance lease right-of-use asset (See Note 22)	6,172		10,077
	66,507		58,073
Less: Accumulated depreciation and amortization	(32,846)		(31,630)
	$	33,661	$	26,443

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Acquisition (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

The estimated amortization expense related to these intangible assets in future periods is as follows:

	(dollars in thousands)
2020	$	8,908
2021	2,608
2022	1,775
2023	—
2024	—
Thereafter	—
	$	13,291

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of January 2, 2019:

	(dollars in thousands)
Cash and cash equivalents	$	12,236
Fees receivable	7,269
Fixed assets	1,085
Operating lease right-of-use assets	3,200
Intangible assets	22,200
Other assets	667
Compensation payable	(637)
Operating lease liabilities	(3,200)
Due to related parties	(4,750)
Accounts payable, accrued expenses and other liabilities	(16,257)
Total identifiable net assets acquired and liabilities assumed	21,813
Goodwill	81,150
Total estimated purchase price	$	102,963

The allocation of the intangible assets is shown within the following table:

	Estimated intangible assets acquired		Estimated average remaining useful lives
	(dollars in thousands)		(in years)
Intangible asset class
Trade name	$	900	3
Customer relationships	7,100		4
Backlog	12,600		2
Proprietary software	1,600		3
Total intangible assets	$	22,200

Business Acquisition, Pro Forma Information

	Year Ended December 31, 2018
	(dollars in thousands, except per share data)
Net revenues	$	922,001
Net income (loss) attributable to Cowen Inc. common stockholders	35,616
Net income (loss) per common share:
Basic	$	1.20
Diluted	1.15

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Non-Controlling Interests in Consolidated Subsidiaries and Funds (Tables)

12 Months Ended

Dec. 31, 2019

Noncontrolling Interest [Abstract]

Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds

	Year Ended December 31,
	2019		2018		2017
	(dollars in thousands)
Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds
Operating companies	$	(3,264)	$	3,177	$	2,353
Consolidated Funds	34,503		33,883		21,438
	$	31,239	$	37,060	$	23,791

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 December 31,
	2019		2018
	(dollars in thousands)
Redeemable non-controlling interests in consolidated subsidiaries and investment funds
Consolidated Funds	$	391,275	$	216,923
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds
Operating companies	11,513		7,457
Consolidated Funds	82,807		57,423
	$	485,595	$	281,803

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Income Taxes

12 Months Ended

Dec. 31, 2019

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 have to be submitted on a stand-alone or combined 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 with tax filing obligations are the United Kingdom, Luxembourg, Germany, Switzerland, South Africa, Canada and Hong Kong.

The Company has reflected the impact of the TCJ Act in the financial statements, including a policy election to account for taxes on Global Intangible Low Tax Income ("GILTI") as incurred on the current year basis and not included in deferred taxes. The Company continues to monitor the impact of the TCJ Act as additional regulations and formal guidance are provided.

The components of the Company's income tax expense for the years ended December 31, 2019, 2018 and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
	(dollars in thousands)
Current tax expense/(benefit)
Federal	$	(731)	$	(1,883)	$	421
State and local	457		(2,148)		2,034
Foreign	1,831		785		428
Total	$	1,557	$	(3,246)	$	2,883
Deferred tax expense/(benefit)
Federal	$	10,242	$	12,018	$	44,071
State and local	3,598		6,956		(2,938)
Foreign	(544)		(9)		37
Total	13,296		18,965		41,170
Total tax expense/(benefit)	$	14,853	$	15,719	$	44,053

Consolidated U.S. income/(loss) before income taxes was $68.9 million in 2019, $93.0 million in 2018, and $3.9 million in 2017. The corresponding amounts for non-U.S.-based income/(loss) were $2.2 million in 2019, $6.0 million in 2018, and $3.1 million in 2017.

The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2019, 2018, and 2017 are as follows:

	Year ended December 31,
	2019		2018		2017
Pre-tax loss at U.S. statutory rate	21.0	%	21.0	%	35.0	%
Dividend received deduction	—		—		(25.9)
Bargain purchase gain	—		—		(34.8)
Basis adjustment on investments	—		3.5		65.2
Nondeductible expenses	4.1		1.2		14.2
Goodwill impairment	1.2		—		—
Change in valuation allowance	(4.0)		7.1		—
Impact of tax law change	—		—		669.8
State and foreign tax	8.0		(10.0)		25.3
Reversal of income attributable to non-controlling interests	(9.2)		(8.6)		(119.6)
Other, net	(0.1)		1.7		3.7
Total	21.0	%	15.9	%	632.9	%

As of December 31, 2019, the Company has net income taxes receivable of approximately $6.5 million representing federal, state and foreign tax overpayments, which is included in other assets on the accompanying consolidated statements of financial condition.

The components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Deferred tax assets, net of valuation allowance
Net operating loss	$	60,160	$	48,294
Deferred compensation	46,545		59,697
Intangible assets	2,969		—
Tax credits	6,716		9,036
Lease liability	24,623		2,098
Other	3,043		2,444
Total deferred tax assets	144,056		121,569
Valuation allowance	(5,234)		(9,135)
Deferred tax assets, net of valuation allowance	138,822		112,434
Deferred tax liabilities
Right-of-use assets	(23,028)		—
Unrealized gains on investments	(26,545)		(13,092)
Amortization of bond discount	(3,980)		(4,643)
Other	(6,103)		(1,642)
Total deferred tax liabilities	(59,656)		(19,377)
Deferred tax assets/(liabilities), net	$	79,166	$	93,057

Deferred tax assets, net of valuation allowance, are reported in the accompanying consolidated statements of financial condition. In addition to the deferred tax balances in the table above, the Company records balances related to its operating losses in Luxembourg, which are discussed below.

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. The Company recorded approximately $5.2 million valuation allowance against its deferred tax assets of $144.1 million as of December 31, 2019 and recorded approximately $9.1 million valuation

allowance against its deferred tax assets of $121.6 million as of December 31, 2018. Separately, the Company has deferred tax liabilities of $59.7 million as of December 31, 2019 and $19.4 million as of December 31, 2018.

For tax year 2019, the Company's total deferred tax expense of $13.3 million was derived by the reversal of timing differences in the normal course of business. The deferred tax expense of $19.0 million in 2018 was derived by the basis difference from the disposal of assets and the reversal of timing differences in the normal course of business. The deferred tax expense of $41.2 million in 2017 predominantly related to the impact of the TCJ Act, and the reversal of timing differences in the normal course of business.

As of December 31, 2019, the Company has foreign tax credit carryforwards of $5.6 million which expire between 2019 and 2029. Valuation allowance of $4.2 million was established against foreign tax credit carryforward as the Company determined that it is not more likely than not that the credits will be utilized.

The Company has the following net operating loss carryforwards at December 31, 2019:

Jurisdiction:	Federal	New York State	New York City	Hong Kong
Net operating loss (in millions)	$175.1	$67.9	$108.8	$12.5
Year of expiration	2037	2037	2037	Indefinite

In addition to the net operating loss carryforwards in the table above, the Company also has net operating loss carryforwards in Luxembourg. These loss carryforwards are only accessible to the extent of taxable income generated by the Luxembourg reinsurance companies, including any deferred income that will be generated in the future. Consequently, the Company recorded a deferred tax asset of $258.4 million, net of deferred tax liabilities of $224.5 million in connection with future taxable income, and an offsetting valuation allowance of $258.4 million against its Luxembourg net operating loss carryforwards that are in excess of such taxable income.

In June 2011, the Company underwent a change of control under Section 382 of the Internal Revenue Code by the acquisition of a subsidiary with net operating loss carryovers. According, a portion of the Company's deferred tax assets, are subject to an annual limitation under Section 382. The deduction limitation is approximately $6.7 million annually and applies to approximately $30.3 million of net operating losses. The Company is not expected to lose any deferred tax assets as a result of these limitations.

The components of unrecognized tax benefits are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Beginning balance at January 1	$	299	$	3,947
Increases/(Decreases) due to current year positions	—		(3,648)
Ending balance at December 31	$	299	$	299

No unrecognized tax benefit was recognized in the consolidated statement of operations for the year ended December 31, 2019. No income tax-related interest and penalties are recognized in the consolidated statement of financial condition at December 31, 2019.

The following are the major tax jurisdictions in which the Company has significant business operations and the earliest tax year subject to examination:

Jurisdiction:	Federal	New York State	New York City	United Kingdom	Luxembourg	Germany	Switzerland
Tax Year	2016	2013	2016	2015	2017	2015	2014

Currently, the Company is under audit by New York State for the 2013 to 2017 tax years. Management is not expecting a material tax liability from these audits.

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

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Other Assets

12 Months Ended

Dec. 31, 2019

Other Assets [Abstract]

Other Assets Disclosure [Text Block]

Other Assets

Other assets in Operating Entities are as follows:

	As of December 31,
	2019		2018
	(dollars in thousands)
Prepaid expenses	$	9,957	$	11,989
Reinsurance business receivables (b)	14,688		18,167
Tax receivables	8,464		7,029
Interest and dividends receivable	1,944		2,413
Deferred acquisition costs (b)	4,808		4,696
The Military Mutual loan (a)	27,459		21,504
Other (c)	16,838		13,216
	$	84,158	$	79,014

(a) The terms of the loan were revised as of December 31, 2019 to a maturity date of December 2029 and interest rate of 3%, related to the Company's commercial reinsurance activities.

(b) Balances relate to the Company's reinsurance business entered into during 2016 (See Note 17).

(c) As of December 31, 2019 and 2018, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.5 million and$4.9 million, respectively.

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Reinsurance

12 Months Ended

Dec. 31, 2019

Reinsurance [Abstract]

Reinsurance

Reinsurance

The Company's wholly-owned Luxembourg subsidiary, Hollenfels Re SA ("Hollenfels") provides reinsurance to third party insurance and reinsurance companies. Hollenfels's share of incurred and paid claims, as well as claims incurred but not reported plus expected development on reported claims ("Claims IBNR") were as follows:

	Year Ended December 31,
	2019		2018
	(dollars in thousands)
Incurred and paid claims	$	24,380	$	14,800
Claims IBNR	$	5,647	$	11,800

Hollenfels utilizes several methods to determine its Claims IBNR. It generally employs 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, Hollenfels employs a method to average claims ratios derived through different actuarial calculation methods. Also, 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 Hollenfels's Claims IBNR. During the year ended December 31, 2019, Hollenfels calculated its claim liability or claim adjustment expenses using the above-mentioned methods consistent with prior years.

While Hollenfels typically settles its premiums and claim payments on a quarterly basis, the frequency of claims in the underlying policies is impractical for Hollenfels to obtain. Certain contracts Hollenfels has written are on a quota-share basis while the rest of the policies provide aggregate loss protection, rendering the collection of information for all underlying contracts impracticable. Hollenfels did not discount any of its reserves and did not cede any portion of its exposures during the years ended December 31, 2019, 2018 and 2017.

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Regulatory Requirements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	$ 250,000
Interest Income, Related Party	100,000	$ 100,000
Cowen and Company
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital requirement under alternative method	1,000,000.0
Net capital	91,348,000
Excess capital	90,348,000
Cowen Execution
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital requirement under alternative method	2,673,000
Required net capital under commodity exchange act	103,200,000
Cash and securities segregated under securities exchange commission regulation	17,600,000
Net capital	105,822,000
Excess capital	103,149,000
Cowen and Company (Asia) Limited [Member]
Regulatory Requirements for Broker-Dealers [Line Items]
Financial resources	1,307,000
Financial resources requirement	385,000
Excess financial resources	922,000
ATM Execution LLC
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital requirement under alternative method	250,000
Net capital	5,354,000
Excess capital	5,104,000
Cowen Prime
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital requirement under alternative method	250,000
Net capital	13,659,000
Excess capital	13,409,000
Westminster Research
Regulatory Requirements for Broker-Dealers [Line Items]
Net capital requirement under alternative method	250,000
Net capital	14,797,000
Excess capital	14,547,000
RCG Insurance Company
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	300,000
Net capital	32,800,000
Options Clearing Corporation | Cowen Execution
Regulatory Requirements for Broker-Dealers [Line Items]
Minimum net capital required	$ 2,000,000.0
Minimum net capital required, percent	2.00%
U.K. Financial Services Authority | Cowen International Limited
Regulatory Requirements for Broker-Dealers [Line Items]
Financial resources	$ 15,988,000
Financial resources requirement	7,597,000
Excess financial resources	8,391,000
U.K. Financial Services Authority | Cowen Execution Services Ltd
Regulatory Requirements for Broker-Dealers [Line Items]
Financial resources	11,808,000
Financial resources requirement	2,509,000
Excess financial resources	9,299,000
Minimum | Cowen Execution
Regulatory Requirements for Broker-Dealers [Line Items]
Cash and securities segregated under securities exchange commission regulation	5,500,000
Minimum | Cowen Prime
Regulatory Requirements for Broker-Dealers [Line Items]
Required net capital under commodity exchange act	45,000
Special Reserve Accounts | Cowen Execution
Regulatory Requirements for Broker-Dealers [Line Items]
Cash and securities segregated under securities exchange commission regulation	22,500,000
Special Reserve Accounts | Minimum | Cowen Execution
Regulatory Requirements for Broker-Dealers [Line Items]
Cash and securities segregated under securities exchange commission regulation	$ 14,800,000

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Stockholders Equity - Annual (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	May 19, 2015 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) class $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Jun. 26, 2018 USD ($)
Equity, Class of Stock [Line Items]
Embedded Cash Conversion Option		$ (596)	$ 28,974
Common stock, shares authorized | shares		125,000,000
Preferred stock dividends declared		$ 6,792	6,792	$ 6,792
Convertible Preferred Stock, Shares Issued upon Conversion | shares	38.0619
Convertible Preferred Stock, Threshold Percentage of Stock Price Trigger		150.00%
Treasury Stock, Cost [Roll Forward]
Treasury stock, cost, beginning of period		$ 234,100
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions		15,217	12,310	11,889
Purchase of treasury stock, cost		34,500
Treasury stock, cost, end of period		$ 284,300	$ 234,100
Treasury Stock, Average Cost Per Share [Roll Forward]
Preferred stock, shares authorized | shares		10,000,000	10,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01
Number of classes | class		2
Treasury Stock
Treasury Stock, Shares [Roll Forward]
Treasury stock, shares, beginning of period | shares		15,336,871
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | shares		1,005,387
Treasury stock shares received, other | shares		29,687
Purchase of treasury stock, shares | shares		2,233,636
Treasury stock, shares, end of period | shares		18,605,581	15,336,871
Treasury Stock, Cost [Roll Forward]
Treasury stock, cost, beginning of period		$ 234,142
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions		15,217
Treasury stock received, value, other		457
Purchase of treasury stock, cost		34,485
Treasury stock, cost, end of period		$ 284,301	$ 234,142
Treasury Stock, Average Cost Per Share [Roll Forward]
Treasury stock, average cost per share, beginning of period, in dollars per share | $ / shares		$ 15.27
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions, Average Cost Per Share | $ / shares		15.14
Treasury stock received, per share, other | $ / shares		15.39
Purchase of treasury stock, average cost per share, in dollars per share | $ / shares		15.44
Treasury stock, average cost per share, end of period, in dollars per share | $ / shares		$ 15.28	$ 15.27
Convertible Preferred Stock
Equity, Class of Stock [Line Items]
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 | $ / shares	$ 1,000
Treasury Stock, Average Cost Per Share [Roll Forward]
Stock Issued During Period, Shares, Other | shares	120,750
Convertible Preferred Stock | Retained Earnings/(Accumulated deficit)
Equity, Class of Stock [Line Items]
Preferred stock dividends declared		$ 6,792	$ 6,792	$ 6,792
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		15,336,871
Treasury stock, shares, end of period | shares		18,605,581	15,336,871
Treasury Stock, Cost [Roll Forward]
Treasury stock, cost, beginning of period		$ 234,142
Treasury stock, cost, end of period		$ 284,301	$ 234,142
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
Call Option
Equity, Class of Stock [Line Items]
Option indexed to Issuer's Equity, Value	$ 15,900
Maximum
Equity, Class of Stock [Line Items]
Convertible Preferred Stock, Threshold Consecutive Trading Days		30 days
Maximum | Call Option
Equity, Class of Stock [Line Items]
Option Indexed to Issuer's Equity, Strike Price | $ / shares		$ 33.54
Minimum
Equity, Class of Stock [Line Items]
Convertible Preferred Stock, Threshold Consecutive Trading Days		20 days
Minimum | Call Option
Equity, Class of Stock [Line Items]
Option Indexed to Issuer's Equity, Strike Price | $ / shares		$ 26.27
Convertible Debt | 2022 convertible note
Treasury Stock, Cost [Roll Forward]
Purchase of treasury stock, cost		$ 19,500
Treasury Stock, Average Cost Per Share [Roll Forward]
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value					$ 29,000

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Regulatory Requirements

12 Months Ended

Dec. 31, 2019

Brokers and Dealers [Abstract]

Regulatory Requirements

Regulatory Requirements

As registered broker-dealers, Cowen and Company, Cowen Execution, ATM Execution, Cowen Prime and Westminster are subject to the SEC's Uniform Net Capital Rule 15c3-1 ("SEC Rule 15c3-1"), 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. Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEC Rule 15c3-1, is $1.0 million. Cowen Execution, ATM Execution, Cowen Prime and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEC 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 SEC Rule 15c3-1 and other regulatory bodies.

On February 7, 2019, FINRA approved the transfer of all of Cowen Securities' business and personnel to Cowen and Company. Cowen Securities subsequently filed a Form BDW, pursuant to Section 15(b) of the Securities Exchange Act of 1934, with FINRA to withdraw its status as a broker-dealer given that it will no longer conduct a securities business. On May 21, 2019, Cowen Securities Form BDW was approved and officially deregistered with the SEC. As of December 31, 2019, the entity has been dissolved.

Cowen Prime is also subject to Commodity Futures Trading Commission Regulation 1.17 ("Regulation 1.17"). Regulation 1.17 requires net capital equal to or in excess of $45,000 or the amount of net capital required by SEC Rule 15c3-1, whichever is greater. Cowen Execution is also subject to Options Clearing Corporation ("OCC") Rule 302. OCC Rule 302 requires maintenance of net capital equal to the greater of $2.0 million or 2% of aggregate debit items. At December 31, 2019, Cowen Execution had $103.2 million of net capital in excess of this minimum requirement.

Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the FCA, as defined, and must exceed the minimum capital requirement set forth by the FCA. Effective June 1, 2018, the FCA approved Ramius UK’s

application to cancel all of its FCA authorization permissions. Accordingly, Ramius UK is no longer an FCA regulated and authorized firm. In April 2019, Cowen Execution Ltd was formally approved to trade in a principal capacity.

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 December 31, 2019, these regulated broker-dealers had regulatory net capital or financial resources, regulatory net capital requirements or minimum FCA or SFC requirement and excess as follows:

Subsidiary	Net Capital		Minimum Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	91,348	$	1,000	$	90,348
Cowen Execution	$	105,822	$	2,673	$	103,149
ATM Execution	$	5,354	$	250	$	5,104
Cowen Prime	$	13,659	$	250	$	13,409
Westminster	$	14,797	$	250	$	14,547
Cowen International Ltd	$	15,988	$	7,597	$	8,391
Cowen Execution Ltd	$	11,808	$	2,509	$	9,299
Cowen Asia	$	1,307	$	385	$	922

The Company's U.S. broker-dealers must also comply with SEC Rule 15c3-3 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. Cowen and Company, Cowen Prime and ATM Execution claim the (k)(2)(ii) exemption with regards to some or all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Cowen and Company, Cowen Prime and Westminster claim the (k)(2)(i) exemption with regards to customer transactions and balances that are cleared, settled and custodied in Special Bank Accounts.

In accordance with the requirements of SEC Rule 15c3-3, Cowen Execution may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of December 31, 2019, Cowen Execution had segregated approximately $17.6 million of cash, while its required deposit was $5.5 million.

As a clearing broker-dealer, Cowen Execution is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEC Rule 15c3-3. Cowen Execution conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEC Rule 15c3-3. This allows each correspondent firm that uses Cowen Execution as its clearing broker-dealer to classify its PAB account assets held at Cowen Execution as allowable assets in the correspondent's net capital calculation. At December 31, 2019, Cowen Execution had $22.5 million of cash on deposit in PAB Reserve Bank Accounts, which was more than its required deposit of $14.8 million.

Cowen and Company, ATM Execution, Cowen Prime and Cowen 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's Luxembourg reinsurance companies, Vianden RCG Re SCA and Hollenfels, individually and their Luxembourg parent holding company, Ramius Enterprise Luxembourg Holdco S.à r.l., on a combined basis with the reinsurance companies, are required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Luxembourg. Each reinsurance company's individual solvency capital ratio as well as the combined solvency capital ratio of the holding and reinsurance companies calculated as of December 31 of each year must exceed a minimum requirement. As of the last testing date, December 31, 2019, all of these entities were in excess of this minimum requirement. The companies are currently, and management expects they will be at the next testing date of December 31, 2020, in compliance with these 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 December 31, 2019. RCG Insurance Company’s capital and surplus as of December 31, 2019 totaled approximately $32.8 million.

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Stockholder's Equity

12 Months Ended

Dec. 31, 2019

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. The Company is also 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 common stock or 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.

Common stock

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.

Each holder of Class B common stock is not 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.

Preferred stock

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.

Preferred Stock and Purchase of Capped Call Option

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 ("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 accrued a cash dividend of $6.8 million $6.8 million, and $6.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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.

Each share of Series A Convertible Preferred Stock is 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, the Company may 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.

In connection with the issuance and sale of the Series A Convertible Preferred Stock, the Company entered into a capped call option transaction (the "Capped Call Option Transaction") with Nomura Global Financial Products Inc. for $15.9 million. The Capped Call Option Transaction is expected generally to reduce the potential dilution to the Company's Class A common stock (if the Company elects to convert to common shares) and/or offset any cash payments that the Company is required to make upon conversion of any Series A Convertible Preferred Stock. The Capped Call Option Transaction has an initial effective strike price of $26.27 per share, which matches the initial conversion price of the Series A Convertible Preferred Stock, and a cap price of $33.54 per share. However, to the extent that the market price of Class A common stock, as measured under the terms of the Capped Call Option Transaction, exceeds the cap price thereof, there would nevertheless be dilution and/or such cash payments would not be offset. As the Capped Call Option Transaction is a free standing derivative that is indexed to the Company's own stock price and the Company controls if it is settled in cash or stock it qualifies for equity classification as a reduction to additional paid in capital.

Embedded Cash Conversion Option on the December 2022 Convertible Notes

Upon issuance of the December 2022 Convertible Notes (see Note 23), 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.

Treasury Stock

Treasury stock of $284.3 million as of December 31, 2019, compared to $234.1 million as of December 31, 2018, resulted from $15.2 million acquired through repurchases of shares to cover employee minimum tax withholding obligations related to stock compensation vesting events under the Company's Equity Plan or other similar transactions, $0.5 million received 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 and $34.5 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 year ended December 31, 2019:

	Treasury stock shares	Cost (dollars in thousands)		Average cost per share
Balance outstanding at December 31, 2018	15,336,871	$	234,142	$	15.27
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions	1,005,387	15,217		15.14
Shares of stock received in respect of indemnification claims	29,687	457		15.39
Purchase of treasury stock	2,233,636	34,485		15.44
Balance outstanding at December 31, 2019	18,605,581	$	284,301	$	15.28

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Significant Accounting Policies - Annual (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

These 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 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 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 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 Company serves as the managing member/general partner and/or investment manager to investment funds which it sponsors and manages. Investment funds in which the Company has a controlling financial interest are consolidated with the Company. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these investment funds on a gross basis. The ownership interests in these investment funds that are not owned by the Company are reflected as redeemable or nonredeemable non-controlling interests, dependent on the non-controlling interest holder's redemption rights, in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these investment funds are eliminated in consolidation.

During 2019, the Company carried out an analysis to evaluate instances where non-controlling interest parties have the unilateral right to redeem their ownership interest for cash, which resulted in a change to the presentation of certain nonredeemable non-controlling interests into permanent equity. Accordingly, prior period amounts have been recast to be presented separately from redeemable non-controlling interests within the permanent equity section of the accompanying consolidated statements of financial condition. The change to the presentation of nonredeemable non-controlling interests has no impact on net income (loss) attributable to Cowen Inc. common stockholders, total assets or total liabilities.

With respect to the Company's private equity investment management strategies, 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 consolidated statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. Prior period amounts have been recast to reflect this accounting treatment.

Principles of consolidation

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 consolidates five investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2019, the Company consolidated the following investment funds: Ramius Enterprise LP (“Enterprise LP”), Ramius Merger Fund LLC (the "Merger Fund"), Cowen Private Investments LP ("Cowen Private"), Ramius Merger Arbitrage UCITS Fund ("UCITS Fund"), and Cowen Sustainable Investments I LP ("CSI I LP") (each a "Consolidated Fund" and collectively the "Consolidated Funds").

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. As of December 31, 2019, the total assets and total liabilities of the consolidated VIEs were $685.4 million and $24.9 million, respectively. As of December 31, 2018, the total assets and total liabilities of the consolidated VIEs were $468.0 million and $40.5 million, respectively. The increase is primarily related to other investors' subscriptions which increased overall VIEs net assets. The VIEs act as investment managers and/or investment companies that may be managed by the Company or the Company may have equity interest in those investment companies. The VIEs are financed through their operations and/or loan agreements with the Company.

At December 31, 2019, the Company held a variable interest in Ramius Merger Master Fund Ltd ("Merger Master") (the "Unconsolidated Master Fund") through the consolidated Merger Fund. At December 31, 2018, the Company held variable interests in Ramius Enterprise Master Fund Ltd ("Enterprise Master") and Merger Master (collectively the "Unconsolidated Master Funds") through two Consolidated Funds. 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. Therefore, the Company has not consolidated the Unconsolidated Master Funds.

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 does not consolidate the Unconsolidated Master Fund or real estate funds that are VIEs due to the Company's conclusion that it is not the primary beneficiary of these funds in each instance. Investment fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company has equity interests in the funds as both general partner and limited partner. In these instances the Company has concluded that the variable interests are not potentially significant to the VIE. Although the Company may advance amounts and pay certain expenses on behalf of the investment funds that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services (see Note 6 for additional disclosures on VIEs).

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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying 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 such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying

consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company.In addition, the Company's broker-dealer subsidiaries, Cowen and Company, LLC ("Cowen and Company"), Cowen Execution Services LLC ("Cowen Execution"), Westminster Research Associates LLC ("Westminster"), Cowen Execution Services Limited ("Cowen Execution Ltd"), ATM Execution LLC ("ATM Execution"), Cowen International Limited ("Cowen International Ltd"), and Cowen Prime Services LLC ("Cowen Prime") apply the specialized industry accounting for brokers and dealers in securities. The Company also retains specialized accounting upon consolidation.

Use of estimates

Use of estimatesThe preparation of the accompanying 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, disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, 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.

Cash and Cash Equivalents, Policy

Cash and cash equivalents The Company considers investments in money market funds and other highly liquid investments with original maturities of three months or less which are deposited with a bank or prime broker to be cash equivalents. Cash and cash equivalents held at Consolidated Funds, although not legally restricted, are not available to fund the general liquidity needs of the Company. The Company may also be exposed to credit risk as a result of cash being held at several banks.

Allowance for doubtful accounts

Allowance for credit lossesThe allowance for credit losses is based on the Company's assessment of the collectability of receivables related to securities transactions, prepaid research and other receivables. The Company considers factors such as historical experience, credit quality, age of balances and current economic conditions that may affect collectability in determining the allowance for credit losses. Specifically, for prepaid research, the Company reviews clients' historical, current and forecasted trading activity in determining the allowance for credit losses. 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 consolidated statements of operations.

Valuation of investments and derivative contracts

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 1 Inputs 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 2 Inputs 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 3 Fair 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. However, the determination of what constitutes "observable" requires significant judgment by the Company. 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.

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 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 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, have inputs which can generally be corroborated by market data and are therefore classified within level 2. OTC derivatives, such as swaps and options where market data is not readily available or observable are classified as level 3.

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

i. Portfolio funds—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 guidance permits an entity holding investments in certain entities that either are investment companies as defined by the American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide, Investment Companies, or have attributes similar to an investment company, and calculate net asset value 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. Real estate investments—Real estate debt and equity investments are measured at fair value. The fair value of real estate investments is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Real estate investments without a public market are valued based on assumptions and valuation techniques used by the Company. Such valuation techniques may include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence, as well as independent external appraisals. In general, the Company considers several valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate. Real estate investments are reviewed on a quarterly basis by the Company for significant changes at the property level or a significant change in the overall market which would impact the value of the real estate investment resulting in unrealized appreciation or depreciation.

Real estate and capital markets are cyclical in nature. Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates. In addition, the Company invests in real estate and real estate-related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. Amounts ultimately realized by the Company from investments sold may differ from the fair values presented, and the differences could be material.

The Company's real estate investments are typically categorized as level 3 investments within the fair value hierarchy as management uses significant unobservable inputs in determining their estimated fair value.

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

iii. 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 of 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.

iv. 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 consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

Due From / Due to Related Parties [Policy Text Block]

Due from/due to related partiesThe Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition.

Receivable from and payable to brokers [Policy Text Block]

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.

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 account of brokers and dealers.

Pursuant to the master netting agreements the Company has entered into with its brokers, dealers and clearing organizations, receivables and payables arising from unsettled trade 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.

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 settle-date basis on the statement of financial condition.

Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settle-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 receivable

Fees related to security transactions are reported net of an allowance for credit losses.  An allowance for credit losses is assessed on any commission receivables aged over 180 days. 

Corporate finance and syndicate receivables, include receivables relating to the Company's investment banking and advisory engagements net of allowance for credit losses. The Company records this allowance for credit losses on these receivables on a specific identification basis. The future collectability of the receivables is reviewed on a monthly basis based on the following factors: aging (usually if outstanding greater than 90 days), known financial stability of the paying company, as well as any other factors that might impact the collection of the outstanding fees.

Management and incentive fees 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 2v).

Securities borrowed and securities loaned

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 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. The Company minimizes its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional or returning excess collateral in accordance with the netting provisions available in the master securities lending contracts in place with the counterparties.

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 consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying 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 consolidated statements of financial condition. At December 31, 2019 and 2018, the Company did not have any securities lending transactions for which fair value basis of accounting was elected.

Securities sold under agreements to repurchase

Securities sold under agreements to repurchase        Securities sold under agreements to repurchase ("repos") are accounted for as collateralized financing transactions and are recorded at their contracted repurchase amount plus accrued interest. A repo is a transaction in which a firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from such buyer 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 sold in the transaction. The Company typically enters into repo transactions with counterparties that prefer repo transactions to securities loaned transactions. The Company has executed master repo agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repo for matched book purposes. The Company monitors the market value of repos on a daily basis, with additional collateral obtained or returned, as necessary. Repos 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 repo contracts in place with the counterparties.

        Interest paid is recorded in interest and dividends expense on an accrual basis in the accompanying consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. At December 31, 2019 and 2018, the Company did not have any repos for which fair value basis of accounting was elected.

Fixed Assets

Fixed assets

Fixed assets are stated at cost less accumulated depreciation or amortization. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or lease term. When the Company commits to a plan to abandon fixed assets or leasehold improvements before the end of its original useful life, the estimated depreciation or amortization period is revised to reflect the shortened useful life of the asset. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives.

Asset	Depreciable Lives	Depreciation and/or Amortization Method
Telecommunication and computer equipment	5 years	Straight-line
Computer software	4 years	Straight-line
Furniture and fixtures	5 years	Straight-line
Leasehold improvements	Term of Lease	Straight-line
Finance lease right-of-use asset	Term of Lease	Straight-line

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 January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entities to calculate the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019 in conjunction with a quantitative goodwill test performed due to the Company's change in operating segments and restructuring of reporting units. See Note 12 for the impact of the goodwill impairment test.

In accordance with US GAAP requirements for testing for impairment of goodwill, inclusive of the newly adopted amendments, 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. See Note 12 for further discussion.

Intangible assets

Intangible assets with finite lives are amortized over their estimated average useful lives. The Company does not have any intangible assets deemed to have indefinite 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 consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to 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.

Goodwill and Intangible Assets

Goodwill

In accordance with US GAAP, 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. Under US GAAP, the Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amounts as a basis for determining if it is necessary to perform a quantitative impairment test. Periodically estimating the fair value of a reporting unit requires significant judgment and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge.

Change in Segments

During the second quarter of 2019, the Company realigned its business segments to Op Co and Asset Co (See Note 1). Prior to the reorganization, the Investment Management segment was also a reporting unit for purposes of measuring and reporting goodwill.  The goodwill that was previously attributable to the Investment Management reporting unit was reallocated to the CIM reporting unit within the Op Co segment and the Asset Co reporting unit based on the relative fair value of the respective portions that became attributable to those reporting units.  The Asset Co segment is also a reporting unit for purposes of measuring and reporting goodwill.

Based on the change in segments and restructuring of reporting units, the Company determined that it was necessary to perform a quantitative impairment test which involved estimates of future cash flows, discount rates, economic forecast and other assumptions which are then used in the market approach (earnings and / or transactions multiples) and / or income approach (discounted cash flow method).

Based on the results of the impairment analysis, the Company recognized a goodwill impairment, during the second quarter of 2019, in the amount of $4.1 million within the Asset Co reporting unit.

Annual impairment test

The Company performed its annual impairment test at December 31, 2019 by assessing qualitative factors to determine whether it is more likely than not that the fair value of its reporting units is less than their carrying amounts. The Company determined that a quantitative impairment test was not necessary based on the analysis.

Based on the results of the annual impairment analysis at December 31, 2019, the Company did not recognize any additional impairment relating to the CIM or Investment Bank reporting units. Additionally, no impairment charges for goodwill were recognized during the years ended December 31, 2018 and 2017 respectively.

The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2019 and 2018:

	Investment Management		Investment Bank		Cowen Investment Management		Asset Co		Total
	(dollars in thousands)
Beginning balance - December 31, 2017
Goodwill	$	29,026	$	51,337	$	—	$	—	80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2018
Recognized goodwill	—		—		—		—		—
Goodwill impairment charges	—		—		—		—		—
Ending balance: December 31, 2018
Goodwill	29,026		51,337		—		—		80,363
Accumulated impairment charges	(10,200)		(9,485)		—		—		(19,685)
Net	18,826		41,852		—		—		60,678
Activity: 2019
Recognized goodwill (See note 3)	—		81,150		—		—		81,150
Realignment of segment goodwill:
Goodwill	(29,026)		—		22,705		6,321		—
Accumulated impairment charges	10,200		—		(7,979)		(2,221)		—
Goodwill impairment charges	—		—		—		(4,100)		(4,100)
Ending balance: December 31, 2019
Goodwill	—		132,487		22,705		6,321		161,513
Accumulated impairment charges	—		(9,485)		(7,979)		(6,321)		(23,785)
Net	$	—	$	123,002	$	14,726	$	—	$	137,728

In connection with the Quarton transaction (see Note 3), in January 2019, the Company recognized goodwill of $81.2 million and intangible assets (including customer relationships, trade name, backlog and proprietary software) with an estimated fair value of $22.2 million which are included within intangible assets, net in the consolidated statements of financial condition with the expected useful lives ranging from 2 to 4 years with a weighted average useful life of 2.8 years. Amortization expense related to intangibles from the Quarton acquisition for the year ended December 31, 2019 is $8.9 million. Goodwill, the excess of the purchase price over the fair value of net assets, primarily relates to expected synergies from combining operations and has been assigned to the Op Co segment of the Company. Tax deductible goodwill will differ from goodwill recognized by the Company in an amount equal to the difference between actual contingent consideration and estimated contingent consideration (see Note 3).

Intangible assets

Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2019 and 2018.

		December 31, 2019						December 31, 2018
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in thousands)						(in thousands)
Trade names	2.6 - 3	$	960	$	(360)	$	600	$	10,622	$	(10,599)	$	23
Customer relationships	2 - 14	51,724		(21,065)		30,659		41,134		(18,960)		22,174
Customer contracts	1.2	—		—		—		800		(800)		—
Non compete agreements and covenants with limiting conditions acquired	5	400		(347)		53		2,237		(2,055)		182
Intellectual property	8	1,188		(119)		1,069		—		—		—
Acquired software	3 - 10	7,323		(4,504)		2,819		8,243		(5,679)		2,564
		$	61,595	$	(26,395)	$	35,200	$	63,036	$	(38,093)	$	24,943

The Company tests intangible assets for impairment if events or circumstances suggest that the asset groups carrying value may not be fully recoverable. For the years ended December 31, 2019 and 2018, no impairment charge for intangible assets was recognized.

Amortization expense related to intangible assets was $13.1 million, $5.0 million, and $6.1 million for the years ended December 31, 2019, 2018, and 2017, respectively, which is included in depreciation and amortization expense in the accompanying consolidated statements of operations. All of the Company's intangible assets have finite lives.

The estimated future amortization expense for the Company's intangible assets placed in service as of December 31, 2019 is as follows:

	(dollars in thousands)
2020	$	13,035
2021	6,735
2022	5,120
2023	3,006
2024	2,707
Thereafter	4,597
	$	35,200

Debt

Debt Long-term debt is carried at the principal amount borrowed net of any unamortized discount/premium. The discount is accreted to interest expense using the effective interest method over the remaining life of the underlying debt obligations. Accrued but unpaid coupon interest is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition.

Legal Costs, Policy [Policy Text Block]

Legal reservesThe 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 reserve nor disclosure is required for losses that are deemed remote.

Capital withdrawals payable [Policy Text Block]

Capital withdrawals payable Capital withdrawals from the Consolidated Funds are recognized as liabilities, net of any incentive income, when the amount requested in the withdrawal notice represents an unconditional obligation at a specified or determined date (or dates) or upon an event certain to occur. This generally may occur either at the time of the receipt of the notice, or on the last day of a reporting period, depending on the nature of the request. As a result, withdrawals paid after the end of the year, but based upon year-end capital balances are reflected as liabilities at the balance sheet date.

Stockholders' Equity, Policy [Policy Text Block]

Treasury stock In accordance with US GAAP relating to repurchases of an entity's own outstanding common stock, the Company records the purchases of stock held in treasury at cost and reports them separately as a deduction from total stockholders' equity on the accompanying consolidated statements of financial condition and changes in equity.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive income (loss)Comprehensive income (loss) consists of net income and other comprehensive income (loss). The Company's other comprehensive income (loss) is comprised of foreign currency cumulative translation adjustments.

Leases of Lessee Disclosure [Text Block]

Right-of-use assets and lease liabilities Effective January 1, 2019, the Company adopted ASC Topic 842, Leases ("ASC 842"). The new guidance increases transparency and comparability by requiring the recognition of right-of-use assets and lease liabilities on the consolidated

statements of financial condition. The recognition of these lease assets and lease liabilities represents a change from previous US GAAP requirements, which did not require lease assets and lease liabilities to be recognized for most leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee, have not significantly changed from previous US GAAP requirements.

Under the effective date transition method selected by the Company, leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior reported financial statements, including footnotes, have not been recast to the reflect the impact of ASC 842 to all comparative periods presented. In applying ASC 842, the Company made an accounting policy election not to recognize the right-of-use assets and lease liabilities relating to short-term leases. Implementation of ASC 842 included an analysis of contracts, including real estate leases and service contracts to identify embedded leases, to determine the initial recognition of right-of-use assets and lease liabilities, which required subjective assessment over the determination of the associated discount rates. ASC 842 also provided various practical expedients which were assessed to determine the ultimate impact of ASC 842 upon adoption. The standard includes a package of three practical expedients which permit the Company to not reassess (1) whether any expired or existing contracts are or contain a lease, (2) the lease classification for any expired or existing leases and (3) any initial direct costs for any existing leases as of the effective date. The Company has elected to apply the package of practical expedients, as well as the hindsight practical expedient, and land easement practical expedient.

The adoption of ASC 842 resulted in the recording of operating lease right-of-use assets of $103.7 million and operating lease liabilities of $110.5 million at January 1, 2019.

The Company determines if an arrangement is or contains a lease at inception. The Company's operating lease arrangements are primarily for real estate and facility leases as well as office equipment. The Company has applied an accounting policy election to combine its lease and nonlease components for its real estate and facility leases. Right-of-use assets represent the Company's right to use the underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company's variable lease payments consist of nonlease services related to the lease. Variable lease payments are excluded from the right-of-use asset and lease liabilities to the extent they are not based on a consumer priced index or a market index and are recognized in the period in which the obligation for those payments is incurred. As most of the Company's leases do not provide an implicit rate and the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Right-of-use assets also include any lease payments made and exclude lease incentives. Many of the Company's operating lease agreements include options to extend the lease, which the Company does not include in the determination of the minimum lease term unless the options are reasonably certain to be exercised. Expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term.

The Company reconciles the operating lease expense with operating lease payments by presenting the amortization of the operating Right-of-use asset and change in the operating lease liability in a single line item within the adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities in the accompanying Consolidated Statements of Cash Flows.

Please refer to Note 23 for information on the Company's finance leases (formerly capital leases).

Revenue recognition

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: Op Co and Asset Co as more fully described below. 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, separated by business segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 27.

Operating Company

The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606.

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 agency placement 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 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. Commissions 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.

•Principal transactions. Principal transactions revenue includes 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.

•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 Company’s international 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.

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.

Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

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 or debt 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 0.5% 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 utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month.

•Cowen trading strategies. Advisory fees for the Company's collateral management advisory business are typically paid quarterly based on utilized invested capital or committed capital, generally subject to a minimum fee.

Incentive income

The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreements) with respect to certain of the Company's investment funds and managed accounts.  The incentive income is either allocated to the Company or is charged to the investment funds in accordance with their respective investment management or partnership agreements. 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. For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 20% of the distributions made to investors after return of their contributed capital and generally a preferred return. With respect to the Company's private equity investment management strategies, the Company grants its employees that act as portfolio managers for its private equity fund products membership into the respective general partner entities that are the general partner of the funds they manage. These awards entitle the employees to share in future distributions of carried interest earned by the general partners. These arrangements are accounted for as profit sharing awards and accordingly amounts are reflected in compensation payable in the accompanying consolidated financial statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. 

In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income.  Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company’s ownership interests in the investment funds.

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 crystalized. For a majority of the 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."

Investment income

Investment income earned by the Op Co segment is earned from investing the Company's capital in various strategies which align to existing businesses within Op Co and from investments in private capital raising transactions of its investment banking clients.

Asset Company

The Asset Co segment generates revenue through three principal sources: management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606.

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 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.

Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.

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:

•Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month.

•Real estate. Management fees from the Company's real estate investments are generally charged at an annual rate from 0.25% to 1.50% of total capital commitments during the investment period and of invested capital or net asset value of the applicable real estate fund after the investment period has ended. Management fees are typically paid to the general partners on a quarterly basis, at the beginning of the quarter in arrears.

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 either allocated to the Company or 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.  For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 20% of the distributions made to investors after return of their contributed capital and generally a preferred return.

In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income.  Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company's ownership interests in the investment funds.

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 crystalized. 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 or carried interest is earned 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.

Several investment managers and/or general partners of the Company's investment funds are jointly owned by the Company and third parties. Accordingly, the incentive fees generated by these investment funds are split between the Company and these third parties.  Pursuant to US GAAP, incentive income received by the general partners that are accounted for under the equity method of accounting are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations.   

Investment Income

Investment income earned by the Asset Co segment is earned from investing the Company's capital in various strategies.

Revenue from contracts with customers

For the years ended December 31, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.

		Year Ended December 31,
		2019		2018
		(dollars in thousands)
Revenue from contracts with customers		Operating Company
Investment banking
Underwriting fees		$	211,666	$	215,723
Strategic/financial advisory fees		79,208		81,733
Placement and sales agent fees		69,070		46,888
Expense reimbursements from clients		15,081		12,878
	Total investment banking revenue	375,025		357,222
Brokerage
Commissions		356,668		366,090
Trade conversion revenue		12,531		17,061
Equity research fees		19,006		20,184
	Total brokerage revenue from customers	388,205		403,335
Management fees		31,361		26,080
Incentive income		1,532		3,117
Total revenue from contracts with customers - Op Co		$	796,123	$	789,754
		Asset Company
Management fees		1,248		3,578
Incentive income		15		—
Total revenue from contracts with customers - Asset Co		1,263		3,578
Total revenue from contracts with customers		$	797,386	$	793,332

Investments transactions and related income/expenses

Purchases and sales of securities, net of commissions, and 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 net gains (losses) on securities, derivatives and other investments, and with respect to the Consolidated Funds and other real estate entities as a component of net realized and unrealized gains (losses) on investments and other transactions and net realized and unrealized gains (losses) on derivatives, respectively, in the accompanying consolidated statements of operations.

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.

Reimbursement from affiliates

The Company allocates, at its discretion, certain expenses incurred on behalf of its investment management businesses. These expenses relate to the administration of such subsidiaries and assets that the Company manages for its investment funds. In addition, pursuant to the investment funds' offering documents, the Company charges certain allowable expenses to the investment funds, including charges and personnel costs for legal, compliance, accounting, tax compliance, risk and technology expenses that directly relate to administering the assets of the investment funds. Such expenses that have been reimbursed at their actual costs are included in the accompanying consolidated statements of operations as employee compensation and benefits, professional, advisory and other fees, communications, occupancy and equipment, client services and business development and other expenses.

Reinsurance-related contracts

        Premiums for reinsurance-related 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 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 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 consolidated statements of financial condition.

Impacts of adopting ASC Topic 606

The following tables summarize the impacts of adopting ASC Topic 606 on the Company’s consolidated financial statements.

Consolidated Statements of Financial Condition	As of December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Assets
Fees receivable, net of allowance	$	111,946	$	17,995	$	129,941
Other investments	181,407		(17,995)		163,412
Stockholder's equity	$	794,407	$	1,002	$	795,409

Consolidated Statements of Operation	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Revenues
Investment banking	$	357,222	$	(28,160)	$	329,062
Incentive income	3,117		15,911		19,028
Total revenues	966,916		(12,249)		954,667
Expenses
Underwriting expenses	15,282		(15,282)		—
Professional, advisory and other fees	40,957		(7,861)		33,096
Service fees	20,198		(42)		20,156
Communications	30,801		(1,449)		29,352
Occupancy and equipment	41,602		(14)		41,588
Client services and business development	35,927		(3,373)		32,554
Other expenses	22,014		(139)		21,875
Total expenses	890,944		(28,160)		862,784
Net gains (losses) on securities, derivatives and other investments	68,043		15,469		83,512
Net income (loss) attributable to Cowen Inc. common stockholders	$	36,027	$	442	$	36,469

Consolidated Statements of Cash Flows	Year Ended December 31, 2018
	As Reported		ASC 606 Impact		Adjusted (a)
	(dollars in thousands)
Cash flows from operating activities:
Net income (loss)	$	79,879	$	442	$	80,321
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities:
Net (gains) losses on securities, derivatives, and other investments	(54,032)		12,331		(41,701)
(Increase) decrease in operating assets:
Fees receivable, net of allowance	(6,401)		(11,962)		(18,363)
Net cash provided by / (used in) operating activities	324,176		811		324,987
Cash flows from investing activities:
Purchase of other investments	(28,092)		(812)		(28,904)
Net cash provided by / (used in) investing activities	$	(17,882)	$	(812)	$	(18,694)

(a) The amounts reflected above represent items as they would have been reported prior to adoption of ASC 606.

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.

Share-based Payment Arrangement [Policy Text Block]

Share-based compensationThe Company accounts for its share-based awards granted to individuals as payment for employee services and values such awards based on grant date fair value. Unearned compensation associated with share-based awards is amortized over the vesting period of the option or award. The Company estimates forfeiture for equity-based awards that are not expected to vest. See Note 19 for further information regarding the Company's share-based compensation plans.

Income Tax, Policy [Policy Text Block]

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 our deferred tax assets for recoverability considering negative and positive evidence, including our 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 our deferred tax assets to bring them to a level that it is more likely than not to be utilized. In evaluating the need for a valuation allowance, the Company estimates future taxable income based on management-approved business plans. This process involves significant management judgment about assumptions that are subject to change from period to period. Because the recognition of deferred tax assets requires management to make significant judgments about future earnings, the periods in which items will impact taxable income and the application of inherently complex tax laws, we have identified the assessment of deferred tax assets and the need for any related valuation allowance as a critical accounting estimate.

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 resident in foreign countries where tax filings have to be submitted on a stand-alone or combined 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 in the consolidated statement of operations. The countries where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Germany, Switzerland, South Africa, Canada and Hong Kong.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign currency transactions

The Company consolidates certain foreign subsidiaries that have designated a foreign currency as their functional currency. For entities that have designated a foreign currency as their functional currency, assets and liabilities are translated into U.S. dollars based on current rates, which are the spot rates prevailing at the end of each statement of financial condition date, and revenues and expenses are translated at historical rates, which are the average rates for the relevant periods. The resulting translation gains and losses, and the tax effects of such gains and losses, are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity.

For subsidiaries that have designated the U.S. Dollar as their functional currency, securities and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollar amounts at the date of valuation. Purchases and sales of securities and other assets and liabilities and the related income and expenses denominated in foreign currencies are translated into U.S. Dollar amounts on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on these balances from fluctuations arising from changes in market prices of securities and other assets/liabilities held or sold. Such fluctuations are included in the accompanying consolidated statements of operations as a component of net gains (losses) on securities, derivatives and other investments. Gains and losses primarily relating to foreign currency broker balances are included in other income (loss) in the accompanying consolidated statements of operations.

Recently issued accounting pronouncements

Recent pronouncements

Recently adopted

In 2018, the FASB issued guidance related to the Tax Cuts and Jobs Act of 2017 ("TCJ Act") for the optional reclassification of the residual tax effects, arising from the change in corporate tax rate, in accumulated other comprehensive loss to retained earnings. The reclassification is the difference between the amount previously recorded in other comprehensive income at the historical U.S. federal tax rate that remains in accumulated other comprehensive loss at the time the TCJ Act was effective and the amount that would have been recorded using the newly enacted rate. This guidance became effective during the first quarter of 2019; however, the Company did not elect to make the optional reclassification.

In 2018, the FASB issued final guidance aligning the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date, which may lower their cost and reduce volatility in the income statement. The guidance became effective during the first quarter of 2019 and impacted the Company's recognition and measurement of the retention bonus pool established in connection with the Company's acquisition of Quarton International AG, which includes share-based payment to employees and nonemployees. Please refer to Note 3 for more information.

In 2018, as part of its disclosure framework project, the FASB amended the disclosure requirements for fair value measurement. The amendments update and eliminate various disclosure requirements that improve the overall usefulness of the disclosure requirement for financial statement users and reduce costs by eliminating disclosures that may not be useful. The new guidance eliminates the requirement to disclose the amounts and reasons for transfers between level 1 and level 2 of the fair value hierarchy and modifies the disclosure requirement relating to investments in funds at NAV. The Company early adopted this guidance in 2019 and it did not have a material impact on the Company's consolidated financial statements.

In 2017, the FASB issued guidance to amend the amortization period for certain purchased callable debt securities held at a premium. Under prior guidance, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. The new guidance shortened the amortization period for the premium to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This guidance became effective during the first quarter of 2019; however, the guidance did not have an impact on the Company's financials as it does not have investments in callable debt securities measured on an amortized cost basis.

In 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The new guidance eliminated Step 2 from the goodwill impairment test, which required entitites to compute the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the new amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019. Please refer to Note 2v for more information.

In 2016, the FASB issued guidance that amends and supersedes its previous guidance regarding leases. The new guidance requires the lessee to recognize the right to use lease assets and lease liabilities that arise from leases greater than one year, and present them in its statement of financial condition. The guidance became effective during the first quarter of 2019. Please refer to Note 22 for more information.

Recently issued

        In October 2018, the FASB issued guidance that made targeted changes to the related party consolidation guidance.  The new guidance changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity will consider indirect interests held through related parties under common control on a proportionate basis under the new guidance, rather than in their entirety, as has been the case under current guidance. The guidance is effective in annual periods beginning after December 15, 2019 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance and does not expect this guidance to have a material impact on its consolidated statements of financial condition or its consolidated statements of operations.

In August 2018, the FASB issued guidance for accounting for upfront costs and fees paid by a customer in a cloud computing arrangement. The guidance requires capitalization of implementation costs incurred in connection with a hosting arrangement or the development or obtainment of internal use software. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years for any implementation costs incurred after adoption. The Company is currently evaluating the impact of this guidance on the Company's consolidated financial statements and does not expect this guidance to have a material impact on its consolidated statements of financial condition or its consolidated statements of operations.

In June 2016, the FASB issued guidance that impacts 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. The Company has performed a scoping assessment and identified securities borrowed and other financial instruments carried at amortized cost as impacted. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances, e.g., based on collateral arrangements for lending and financing transactions or based on the credit quality of the borrower or issuer. For securities borrowed, the Company will apply 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 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 CECL model will be applied only to the shortfall between the fair value of the collateral and amortized cost. For public companies, the guidance is effective for reporting periods beginning after December 15, 2019 and interim periods within those fiscal years.  Based on the Company's scoping analysis and impact assessment, the Company does not expect the increase in the allowance for credit losses, resulting from the adoption of this standard, to be significant to its consolidated statements of financial condition or its consolidated statements of operations.

In December 2019, the FASB issued guidance simplifying the accounting for income taxes. The guidance simplifies the accounting for income taxes by removing the exceptions (i) the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income), (ii) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (iii) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and (iv) general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally the guidance requires that an entity (a) recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (b) evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction and (c) reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date as well as specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. The guidance also makes minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of this guidance on the Company's consolidated financial statements.

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, restricted stock units, and SARs. 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, and options and warrants are assumed to have been exercised, 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.

Segment Reporting

Segment Reporting

Change in Segments

During the second quarter of 2019 the Company realigned the information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including evaluation and allocation of resources. As a result of this change in segment reporting, the Company retrospectively revised prior period results, by segment, to conform to the current period presentation (see Note 1). This structure includes two business segments: Op Co and Asset Co. The structure is based on the Company's domain expertise as a driver of balance sheet harmonization and repeatable revenues for its operating business versus the Company's long-term monetization strategies.

The Op Co segment consists of 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.

Performance Measures

The performance measure 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 a pre-tax measure that (i) eliminates the impact of consolidation for Consolidated Funds and excludes (ii) goodwill and intangible impairment (iii) certain other transaction-related adjustments and/or reorganization expenses and (iv) certain costs associated with debt. Economic Operating Income (Loss) represents Economic Income (Loss) before depreciation and amortization expenses. In addition, Economic Income (Loss) revenues include investment income that represents the income the Company has earned in investing its own capital, including realized and unrealized gains and losses, interest and dividends, net of associated investment related expenses. For US GAAP purposes, these items are included in each of their respective line items. Economic Income (Loss) revenues also include management fees, incentive income and investment income earned through the Company's investment as a general partner in certain real estate entities and the Company's investment in the activist business and certain investment funds. For US GAAP purposes, all of these items, are recorded in other income (loss). Economic Income (Loss) recognizes (a) incentive fees during periods when the fees are not yet crystallized for US GAAP reporting, (b) start-up costs of a fund over the expected life of the fund and (c) retainer fees, relating to investment banking activities, earned during the period that would otherwise be deferred until closing for US GAAP reporting. In addition, Economic Income (Loss) expenses are reduced by reimbursement from affiliates, which for US GAAP purposes is presented gross as part of revenue.

As further stated below, one major difference between Economic Income (Loss) and US GAAP net income (loss) is that Economic Income (Loss) presents the segments' results of operations without the impact resulting from the full consolidation of any of the Consolidated Funds. The consolidation of these investment funds' results include the pro rata share of the income or loss attributable to other owners of such entities which is reflected in net income (loss) attributable to non-controlling interest in consolidated subsidiaries in the accompanying consolidated statements of operations. This pro rata share has no effect on the overall financial performance for the segments, as ultimately, this income or loss is not income or loss for the segments themselves. Included in Economic Income (Loss) is the actual pro rata share of the income or loss attributable to the Company as an investor in such entities, which is relevant in management making operating decisions and evaluating financial performance. The Company does not disclose total asset information for its business segments as the information is not reviewed by the CODM. The following tables set forth operating results for the Company's Op Co and Asset Co segments and related adjustments necessary to reconcile the Company's Economic Income (Loss) measure to arrive at the Company's consolidated US GAAP net income (loss):

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Segregated Cash	12 Months Ended
	Dec. 31, 2019
Segregated Cash [Abstract]
Segregated Cash	Segregated CashAs of December 31, 2019 and 2018, cash segregated in compliance with federal regulations and other restricted deposits of $107.3 million and $176.6 million, respectively, consisted of cash deposited in Special Reserve Accounts for the exclusive benefit of customers under SEC Rule 15c3-3 and cash held in accounts designated as Special Reserve Bank Accounts for Proprietary Accounts of Broker-Dealers ("PAB").

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Share-Based Compensation and Employee Ownership Plans Restricted Shares and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		2 Months Ended	12 Months Ended
	Apr. 30, 2019	Mar. 31, 2016	Jan. 31, 2014	Dec. 31, 2019	Dec. 31, 2018
Weighted-Average Grant Date Fair Value
Granted, shares				0	88,504
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs)
Nonvested Restricted Shares and Restricted Stock Units
Balance outstanding, beginning of period, shares				5,962,295	5,579,293
Granted, shares				2,435,058	2,413,727
Vested, shares				(2,291,032)	(1,961,824)
Canceled, shares				(584,333)	0
Forfeited, shares				(157,502)	(68,901)
Balance outstanding, end of period, shares				5,364,486	5,962,295
Weighted-Average Grant Date Fair Value
Balance outstanding, beginning of period, in dollars per share				$ 15.73	$ 16.33
Granted, in dollars per share				16.58	14.20
Vested, in dollars per share				15.63	15.60
Canceled, in dollars per share				11.49	0
Forfeited, in dollars per share				13.98	14.21
Balance outstanding, end of period, in dollars per share				$ 16.67	$ 15.73
Unrecognized compensation expense				$ 62.6
Weighted-average recognition period for unrecognized compensation expense				2 years 1 month 9 days
Equity Plans | Performance based restricted stock
Nonvested Restricted Shares and Restricted Stock Units
Granted, shares	333,333	700,000	481,438
Vested, shares				(584,333)
Forfeited, shares				(130,438)
Non-employee Director | Equity Plans | Restricted Stock Units (RSUs)
Nonvested Restricted Shares and Restricted Stock Units
Balance outstanding, beginning of period, shares				253,772
Balance outstanding, end of period, shares				216,912	253,772
Weighted-Average Grant Date Fair Value
Granted, shares				0
Stock Issued During Period, Shares, Issued for Services				120,430
Maximum
Nonvested Restricted Shares and Restricted Stock Units
Percent of RSU's earned				200.00%
Minimum
Nonvested Restricted Shares and Restricted Stock Units
Percent of RSU's earned				0.00%

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Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards	$ 60,160	$ 48,294
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits	46,545	59,697
Deferred Tax Liabilities, Intangible Assets	2,969	0
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	6,716	9,036
Deferred Tax Assets, Acquired Lease Liability	24,623	2,098
Deferred Tax Assets, Other	3,043	2,444
Deferred Tax Assets, Gross	144,056	121,569
Deferred Tax Assets, Valuation Allowance	(5,234)	(9,135)
Deferred Tax Assets, Net of Valuation Allowance	138,822	112,434
Deferred Tax Liabilities, Investments	23,028	0
Deferred Tax Liabilities, Unrealized Gains on Trading Securities	26,545	13,092
Deferred Tax Liabilities, Other	6,103	1,642
Deferred Tax Liabilities, Gross	(59,656)	(19,377)
Deferred Income Tax Expense (Benefit)	13,296	18,965	$ 41,170
Preferred stock dividends	6,792	6,792	$ 6,792
Deferred tax assets/(liabilities), net	79,166	93,057
Deferred Tax Liabilities, Deferred Expense	$ 3,980	$ 4,643

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Receivables from and payables to brokers, dealers and clearing organizations

12 Months Ended

Dec. 31, 2019

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 December 31, 2019 and 2018, amounts receivable from brokers, dealers and clearing organizations include:

	As of December 31,
	2019		2018
	(dollars in thousands)
Broker-dealers	$	623,523	$	692,581
Securities failed to deliver	45,673		72,918
Clearing organizations	3,180		15,319
Securities borrowed interest receivable	9,319		5,295
	$	681,695	$	786,113

As of December 31, 2019 and 2018, amounts payable to brokers, dealers and clearing organizations include:

	As of December 31,
	2019		2018
	(dollars in thousands)
Broker-dealers	$	185,838	$	159,443
Securities failed to receive	57,580		28,826
Clearing organizations	18,063		36,338
Securities loaned interest payable	9,537		4,124
	$	271,018	$	228,731

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Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings/(Accumulated deficit)	Nonredeemable Noncontrolling Interests [Member]	Permanent Equity [Member]	Redeemable Noncontrolling Interests [Member]	Common Stock Class A	Preferred Stock	Convertible Preferred Stock Retained Earnings/(Accumulated deficit)
Common stock									$ 292
Stockholders' Equity Attributable to Noncontrolling Interest						$ 98,678
Common stock, shares outstanding, start at Dec. 31, 2016									26,731,289
Balance, start at Dec. 31, 2016	$ 772,650	$ (153,845)	$ 928,646	$ (2)	$ (2,442)				$ 871,328	$ 1
Preferred stock, shares outstanding, start at Dec. 31, 2016										120,750
Redeemable Non-controlling Interest, start at Dec. 31, 2016	280,527
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Cowen Inc.	(60,882)				(60,882)		$ (60,882)
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable						16,134	16,134
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	7,657
Foreign currency translation	(6)			(6)			(6)
Capital contributions	89,034					30,078	30,078
Capital withdrawals	(42,201)					39,303	39,303
Common stock issued during period, shares, acquisitions									3,162,278
Common stock issued during period, value, acquisitions	47,607		47,575				47,607		$ 32
Restricted stock awards issued, shares									2,060,927
Purchase of treasury stock, at cost, shares									(2,322,474)
Purchase of treasury stock, at cost	(33,001)	(33,001)					(33,001)
Preferred stock dividends	(6,792)						(6,792)				$ (6,792)
Amortization of share based compensation	28,443		28,443				28,443
Common stock, shares outstanding, end at Dec. 31, 2017									29,632,020
Balance, end at Dec. 31, 2017	748,019	(186,846)	1,004,664	(8)	(70,116)				$ 853,606	$ 1
Preferred stock, shares outstanding, end at Dec. 31, 2017										120,750
Redeemable Non-controlling Interest, end at Dec. 31, 2017	335,017
Common stock									$ 324
Stockholders' Equity Attributable to Noncontrolling Interest						105,587
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative Effect on Retained Earnings, Net of Tax	(559)						(559)
Net income (loss) attributable to Cowen Inc.	42,819				42,819		42,819
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable						12,308	12,308
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	24,752
Foreign currency translation	3			3			3
Capital contributions	107,117					7,888	7,888
Capital withdrawals	(249,963)					28,344	28,344
Deconsolidation of investment funds	(32,559)					(32,559)	(32,559)
Common stock issued during period, value, acquisitions	0
Restricted stock awards issued, shares									2,009,435
Purchase of treasury stock, at cost, shares									(3,203,595)
Purchase of treasury stock, at cost	(47,296)	(47,296)					47,296
Preferred stock dividends	(6,792)						6,792				(6,792)
Embedded Cash Conversion Option	28,974		21,195				21,195
Amortization of share based compensation	37,018		37,018				37,018
Common stock, shares outstanding, end at Dec. 31, 2018									28,437,860
Balance, end at Dec. 31, 2018	$ 859,287	(234,142)	1,062,877	(5)	(34,648)				$ 859,287	$ 1
Preferred stock, shares outstanding, end at Dec. 31, 2018	120,750									120,750
Redeemable Non-controlling Interest, end at Dec. 31, 2018								$ 216,923
Total Stockholders' Equity	$ 794,407
Common stock									$ 324
Stockholders' Equity Attributable to Noncontrolling Interest	64,880					64,880
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Cowen Inc.	24,631				24,631		24,631
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable						22,797	22,797
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds	8,442
Foreign currency translation	0			0			0
Capital contributions	266,504					11,655	11,655
Capital withdrawals	(100,594)					5,012	5,012
Deconsolidation of investment funds	0
Common stock issued during period, shares, acquisitions									1,033,350
Common stock issued during period, value, acquisitions	14,446		14,436				14,446		$ 10
Restricted stock awards issued, shares									2,407,857
Purchase of treasury stock, at cost, shares									(3,268,710)
Purchase of treasury stock, at cost	(50,159)	(50,159)					50,159
Preferred stock dividends	(6,792)						6,792				$ (6,792)
Embedded Cash Conversion Option	(596)		(596)				(596)
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	21,195
Amortization of share based compensation	33,918		33,918				$ 33,918
Common stock, shares outstanding, end at Dec. 31, 2019									28,610,357
Balance, end at Dec. 31, 2019	$ 904,175	$ (284,301)	$ 1,110,635	$ (5)	$ (16,809)				$ 904,175	$ 1
Preferred stock, shares outstanding, end at Dec. 31, 2019	120,750									120,750
Redeemable Non-controlling Interest, end at Dec. 31, 2019								$ 391,275
Total Stockholders' Equity	$ 809,855
Common stock									$ 334
Stockholders' Equity Attributable to Noncontrolling Interest	$ 94,320					$ 94,320

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Consolidated Statements of Financial Condition - USD ($) $ in Thousands		Dec. 31, 2019		Dec. 31, 2018
Assets
Cash and cash equivalents		$ 301,123		$ 259,148
Cash collateral pledged		6,563		6,318
Segregated cash		107,328		176,647
Securities owned, at fair value ($112,451 and $57,583 were pledged to various parties)		1,633,552		520,888
Receivable on derivative contracts, at fair value		62,977		25,125
Securities borrowed		754,441		407,795
Other investments ($125,240 and $123,241 at fair value, respectively)		185,722		181,407
Deposits with clearing organizations, brokers and banks		91,755		89,423
Receivable from brokers, dealers and clearing organizations, net of allowance of $721 and $472, respectively		681,695		786,113
Receivable from customers, net of allowance of $650 and $516, respectively		105,647		37,858
Fees receivable, net of allowance of $2,620 and $1,569, respectively		126,358		111,946
Due from related parties		26,749		33,870
Fixed assets, net of accumulated depreciation and amortization of $32,846 and $31,630, respectively		33,661		26,443
Operating right of use assets		92,852		0
Goodwill		137,728		60,678
Intangible assets, net of accumulated amortization of $26,395 and $38,093, respectively		35,200		24,943
Deferred tax asset, net		79,166		93,057
Other assets		84,158		79,014
Consolidated Funds
Cash and cash equivalents, Consolidated Funds		30,874		38,118
Securities owned, at fair value		375,278		187,633
Receivable on derivative contracts, at fair value		5,833		4,416
Other Investments, Consolidated Funds		175,769		186,395
Receivable from brokers, Consolidated Funds		25,964		8,328
Other assets, Consolidated Funds		1,632		740
Total Assets		5,162,025		3,346,303
Liabilities
Securities sold, not yet purchased, at fair value		451,836		195,307
Securities Sold under Agreements to Repurchase		23,244		0
Payable for derivative contracts, at fair value		60,761		16,082
Securities Loaned		1,601,866		414,852
Payables to brokers, dealers and clearing organizations		271,018		228,731
Payable to customers		430,224		525,153
Commission management payable		71,620		95,270
Compensation payable		223,139		226,971
Operating lease liabilities		97,581		0
Notes payable and other debt		345,451	[1]	262,965
Convertible debt	[2]	118,688		134,489
Fees payable		21,540		22,565
Due to related parties		1		571
Accounts payable, accrued expenses and other liabilities		141,556		110,423
Consolidated Funds
Due to related parties		581		0
Payable for derivative contracts, at fair value		4,769		1,663
Payable to brokers		864		23,521
Capital withdrawals payable		1,276		11,106
Accounts payable, accrued expenses and other liabilities		560		424
Total Liabilities		3,866,575		2,270,093
Commitments and Contingencies
Commitments and Contingencies (Note 22)		391,275		216,923
Stockholders' equity
Additional paid-in capital		1,110,635		1,062,877
(Accumulated deficit) retained earnings		(16,809)		(34,648)
Accumulated other comprehensive income (loss)		(5)		(5)
Less: Class A common stock held in treasury, at cost, 18,605,581 and 15,336,871 shares as of December 31, 2019 and December 31, 2018, respectively.		(284,300)		(234,100)
Cowen Inc. Stockholders' Equity		809,855		794,407
Nonredeemable non-controlling interests		94,320		64,880
Permanent Equity		904,175		859,287
Total Liabilities and Stockholders' Equity		5,162,025		3,346,303
Convertible Preferred Stock
Stockholders' equity
Preferred stock		1		1
Common Stock Class A
Stockholders' equity
Common stock		334		324
Less: Class A common stock held in treasury, at cost, 18,605,581 and 15,336,871 shares as of December 31, 2019 and December 31, 2018, respectively.		(284,301)		(234,142)
Permanent Equity		904,175		859,287
Common Stock Class B
Stockholders' equity
Common stock		$ 0		$ 0

[1] The carrying amount of the notes payable and other debt includes an unamortized premium of $0.5 million as of December 31, 2019.

[2] The carrying amount of the convertible debt includes an unamortized discount of $14.9 million and $19.5 million as of December 31, 2019 and 2018, respectively.

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Investments of Operating Entities and Consolidated Funds - Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Total assets of nonconsolidated variable interest entities	$ 6,100.0	$ 5,400.0
Total liabilities of nonconsolidated variable interest entities	617.5	377.2
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure	241.2	301.4
Maximum exposure regarding nonconsolidated variable interest entities	$ 261.7	$ 332.4

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Receivables from and payables to brokers, dealers and clearing organizations (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Brokers and Dealers [Abstract]
Receivable from Broker-dealers	$ 623,523	$ 692,581
Securities Failed-to-Deliver	45,673	72,918
Clearing organizations	3,180	15,319
Securities borrowed interest receivable	9,319	5,295
Receivable from brokers, dealers and clearing organizations	681,695	786,113
Payable to Broker-Dealers	185,838	159,443
Securities Failed-to-Receive	57,580	28,826
Clearing organizations	18,063	36,338
Securities loaned interest payable	9,537	4,124
Payables to brokers, dealers and clearing organizations	$ 271,018	$ 228,731

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Fair Value Measurements for Operating Entities and Consolidated Funds Unobservable Input Roll Forward (Details) - USD ($)		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018
Preferred Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		$ 5,168,000		$ 8,115,000
Asset, Transfers In		0		0
Asset, Transfers Out		(1,000,000)	[1]	(1,141,000)	[2]
Purchases/(covers)		3,513,000		1,415,000
(Sales)/short buys		(1,270,000)		(695,000)
Realized and unrealized gains (losses), asset		1,424,000		(2,526,000)
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	2,285,000		860,000
Balance Asset Value		7,835,000		5,168,000
Common Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		9,850,000		7,570,000
Asset, Transfers In		10,242,000	[4],[5]	0
Asset, Transfers Out		(3,000)	[6]	(569,000)
Purchases/(covers)		11,477,000		3,324,000
(Sales)/short buys		(11,002,000)		(1,416,000)
Realized and unrealized gains (losses), asset		(3,098,000)		941,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	(3,098,000)		1,797,000
Balance Asset Value		17,466,000		9,850,000
Corporate Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		0
Balance Liability Value		0
Asset, Transfers In	[5]	4,000
Liability, Transfers In	[5]	2,525,000
Liability, Transfers Out		0
Asset, Transfers Out		0
Purchases/(covers)		2,811,000
Liability, Purchases		0
(Sales)/short buys		(533,000)
Liability, Sales		0
Realized and unrealized gains (losses), asset		139,000
Realized and unrealized gains (losses), liability		1,525,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	140,000
Change in Unrealized Gain (Loss), instruments still held, liabilities	[3]	1,525,000
Balance Asset Value		2,421,000		0
Balance Liability Value		1,000,000		0
Convertible Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		3,000,000		282,000
Asset, Transfers In		0		0
Asset, Transfers Out		(4,826,000)	[1],[2]	0
Purchases/(covers)		11,354,000		3,000,000
(Sales)/short buys		(7,072,000)		(307,000)
Realized and unrealized gains (losses), asset		44,000		25,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	(25,000)		0
Balance Asset Value		2,500,000		3,000,000
Options
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		0		1,455,000
Asset, Transfers In		330,000	[4]	0
Asset, Transfers Out		0		0
Purchases/(covers)		0		0
(Sales)/short buys		0		(1,455,000)
Realized and unrealized gains (losses), asset		6,000		0
Change in Unrealized Gain (Loss), instruments still held, asset		6,000		0	[3]
Balance Asset Value		336,000		0
Warrants and Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		1,666,000		2,517,000
Asset, Transfers In		0		0
Asset, Transfers Out		0		0
Purchases/(covers)		0		0
(Sales)/short buys		(189,000)		(143,000)
Realized and unrealized gains (losses), asset		(883,000)		(708,000)
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	31,000		(850,000)
Balance Asset Value		594,000		1,666,000
Trade Claims
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		5,543,000		5,950,000
Asset, Transfers In		0		0
Asset, Transfers Out		0		0
Purchases/(covers)		7,205,000		44,000
(Sales)/short buys		(5,506,000)		(536,000)
Realized and unrealized gains (losses), asset		78,000		85,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	76,000		0
Balance Asset Value		7,320,000		5,543,000
Lehman claims, at fair value
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		0		301,000
Asset, Transfers In				0
Asset, Transfers Out				0
Purchases/(covers)				0
(Sales)/short buys				(234,000)
Realized and unrealized gains (losses), asset				(67,000)
Change in Unrealized Gain (Loss), instruments still held, asset	[3]			0
Balance Asset Value				0
US Government Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Liability Value		0
Liability, Transfers In	[5]	4,681,000
Liability, Transfers Out		0
Liability, Purchases		0
Liability, Sales		0
Realized and unrealized gains (losses), liability		(2,731,000)
Change in Unrealized Gain (Loss), instruments still held, liabilities	[3]	2,731,000
Balance Liability Value		1,950,000		0
Consolidated Funds | Preferred Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		24,314,000		50,445,000
Asset, Transfers In		0		0
Asset, Transfers Out		(19,929,000)	[1]	(38,552,000)	[7]
Purchases/(covers)		0		3,066,000
(Sales)/short buys		0		0
Realized and unrealized gains (losses), asset		8,000		9,355,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	0		9,355,000
Balance Asset Value		4,393,000		24,314,000
Consolidated Funds | Common Stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		94,000		50,000
Asset, Transfers In		0		0
Asset, Transfers Out		(94,000)	[1]	0
Purchases/(covers)		407,000		0
(Sales)/short buys		(958,000)		0
Realized and unrealized gains (losses), asset		551,000		44,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	0		44,000
Balance Asset Value		0		94,000
Consolidated Funds | Warrants and Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Asset Value		5,279,000		3,568,000
Asset, Transfers In		0		0
Asset, Transfers Out		0		(20,000)	[7]
Purchases/(covers)		0		0
(Sales)/short buys		(1,758,000)		(1,340,000)
Realized and unrealized gains (losses), asset		2,046,000		3,071,000
Change in Unrealized Gain (Loss), instruments still held, asset	[3]	289,000		1,730,000
Balance Asset Value		5,567,000		5,279,000
Options, liability
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Liability Value		2,096,000		22,401,000
Liability, Transfers In		0		0
Liability, Transfers Out		0		(28,973,000)	[8]
Liability, Purchases		0		0
Liability, Sales		(4,000)		(259,000)
Realized and unrealized gains (losses), liability		828,000		8,927,000
Change in Unrealized Gain (Loss), instruments still held, liabilities	[3]	(828,000)		(8,927,000)
Balance Liability Value		2,920,000		2,096,000
Contingent liability payable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance Liability Value		3,070,000		3,440,000
Liability, Transfers In		0		0
Liability, Transfers Out		0		0
Liability, Purchases		27,700,000		427,000
Liability, Sales		(1,234,000)		(797,000)
Realized and unrealized gains (losses), liability		1,360,000		0
Change in Unrealized Gain (Loss), instruments still held, liabilities	[3]	(1,360,000)		0
Balance Liability Value		$ 30,896,000		$ 3,070,000

[1] The entity in which the Company is invested completed an initial public offering

[2] The investments were converted to common stock.

[3] Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations.

[4] The holding Company which held common stock and options was liquidated

[5] The investments had a change of valuation methodology due to increased activity in foreign market.

[6] Shares of common stock were exchanged for liquid warrants and rights of an acquired company.

[7] The Company deconsolidated an investment fund.

[8] On June 26, 2018, the Company received shareholder approval which allows the Company to settle its convertible note (see Note 23) entirely in class A common shares. Upon receiving shareholder approval, the Company reclassified the embedded conversion option, associated with the convertible debt, to equity (see Note 24).

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Investments of Operating Entities and Consolidated Funds - Equity Method Investments - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 40,858	$ 38,671
Equity Method Investment, Summarized Financial Information, Assets	1,374,077	1,189,669
Liabilities	205,873	244,088
Other than Temporary Impairment Losses, Investments	2,600	7,100
Equity Method Investee, Exceeded Threshold for Income Test [Member]
Schedule of Equity Method Investments [Line Items]
Equity	1,168,204	945,581
Revenue	200,854	105,499	$ 165,550
Expenses	(79,811)	(67,893)	(62,175)
Net realized and unrealized gain (loss)	221,616	95,855	133,695
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations	342,659	133,461	237,070
Equity method investment, summarized financial information, income tax expense (benefit)	(2,234)	(51)	(99)
Net Income	340,425	133,410	236,971
Surf House Ocean Views Holdings, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	7,804	7,589
Starboard Value LP
Schedule of Equity Method Investments [Line Items]
Equity method investments	24,292	12,699
RCG Longview Debt Fund V Partners, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	2,889	11,000
RCG Longview Management, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	583	1,167
Income (Loss) from Equity Method Investments	200
RCG Longview Debt Fund VI, LP
Schedule of Equity Method Investments [Line Items]
Equity method investments	0	1,254
Healthcare Royalty GP, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	108	149
Healthcare Royalty GP II, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	302	176
RCG Longview Debt Fund IV Management, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	331	331
Healthcare Royalty GP III, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	2,230	1,573
RCG Kennedy House, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	0	131
RCG Longview Equity Management, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	105	114
RCG LPP II GP, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	0	272
RCG Park Liberty GP Member Manager, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	0	1,248
HCR Stafford Fund GP, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investments	880	0
Equity Method Investee, Other
Schedule of Equity Method Investments [Line Items]
Equity method investments	1,042	968
Liberty Harbor North
Schedule of Equity Method Investments [Line Items]
Equity method investments	292	0
Net Gains (Losses) on Securities, Derivatives and Other Investments
Schedule of Equity Method Investments [Line Items]
Income (Loss) from Equity Method Investments	$ 24,600	6,400	$ 21,300
Minimum
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	15.00%
Maximum
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	55.00%
Clawback Obligation
Schedule of Equity Method Investments [Line Items]
Other Commitment		6,500
Clawback Obligation | RCG Longview Partners II, LLC
Schedule of Equity Method Investments [Line Items]
Other Commitment		$ 6,500

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Regulatory Requirements Regulatory (Tables)

12 Months Ended

Dec. 31, 2019

Regulatory [Abstract]

Computation of Net Capital under Securities and Exchange Commission Regulation

As of December 31, 2019, these regulated broker-dealers had regulatory net capital or financial resources, regulatory net capital requirements or minimum FCA or SFC requirement and excess as follows:

Subsidiary	Net Capital		Minimum Net Capital Requirement		Excess Net Capital
	(dollars in thousands)
Cowen and Company	$	91,348	$	1,000	$	90,348
Cowen Execution	$	105,822	$	2,673	$	103,149
ATM Execution	$	5,354	$	250	$	5,104
Cowen Prime	$	13,659	$	250	$	13,409
Westminster	$	14,797	$	250	$	14,547
Cowen International Ltd	$	15,988	$	7,597	$	8,391
Cowen Execution Ltd	$	11,808	$	2,509	$	9,299
Cowen Asia	$	1,307	$	385	$	922

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Share-Based Compensation and Employee Ownership Plans (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Stock Appreciation Right, Activity [Table Text Block]

The following table summarizes the Company's SARs for the years ended December 31, 2019 and 2018:

	Class A Common Shares Subject to Option	Weighted Average Exercise Price/Share		Weighted Average Remaining Term	Aggregate Intrinsic Value
				(in years)	(dollars in thousands)
Balance outstanding at December 31, 2017	75,000	$	11.60	0.21	$	173
SARs vested	(75,000)	14.21		—	—
Balance outstanding at December 31, 2018	—	$	—	0	$	—
SARs granted	—	—		—	—
SARs vested	—	—		—	—
SARs expired	—	—		—	—
Balance outstanding at December 31, 2019	—	$	—	0	$	—
SARs exercisable at December 31, 2018	—	$	—	0	$	—
SARs exercisable at December 31, 2019	—	$	—	0	$	—

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 years ended December 31, 2019 and 2018:

	Year Ended December 31, 2019			Year Ended December 31, 2018
	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	5,962,295	$	15.73	5,579,293	$	16.33
Granted	2,435,058	16.58		2,413,727	14.20
Vested	(2,291,032)	15.63		(1,961,824)	15.60
Canceled	(584,333)	11.49		—	—
Forfeited	(157,502)	13.98		(68,901)	14.21
Ending balance outstanding	5,364,486	$	16.67	5,962,295	$	15.73

Included in the restricted share and restricted stock unit activity are performance linked restricted stock units of 481,438 which were awarded to employees of the Company in December 2013 and January 2014. An additional 700,000 performance linked restricted stock units were awarded in March 2016 and 333,333 in April of 2019. Of the awards granted, 130,438 have been forfeited and 584,333 have been canceled, as they did not meet the performance criteria, through December 31, 2019. The remaining awards, included in the outstanding balance as of December 31, 2019, vest between March 2020 and December 2021 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 RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the targeted award. Each RSU is equal to the one share of the Company's Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals.

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Stockholder's Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Treasury Stock Activity

The following represents the activity relating to the treasury stock held by the Company during the year ended December 31, 2019:

	Treasury stock shares	Cost (dollars in thousands)		Average cost per share
Balance outstanding at December 31, 2018	15,336,871	$	234,142	$	15.27
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions	1,005,387	15,217		15.14
Shares of stock received in respect of indemnification claims	29,687	457		15.39
Purchase of treasury stock	2,233,636	34,485		15.44
Balance outstanding at December 31, 2019	18,605,581	$	284,301	$	15.28