(Mark One) | ||||||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the fiscal year ended: | ||||||||
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: |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Exchange on Which Registered | ||||||||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer (Do not check if a smaller reporting company) | ☐ | Smaller reporting company | Emerging growth company |
Item No. | Page No. | |||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
Month 1 (January 1, 2022 – January 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | 379,002 | $ | 33.23 | 379,002 | $ | 43,526,497 | ||||||||||||||||||||
Employee transactions(2) | — | $ | — | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 379,002 | $ | 33.23 | 379,002 | ||||||||||||||||||||||
Month 2 (February 1, 2022 – February 28, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | 30,000 | $ | 29.55 | 30,000 | $ | 42,639,886 | ||||||||||||||||||||
Employee transactions(2) | — | $ | — | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 30,000 | $ | 29.55 | 30,000.00 | ||||||||||||||||||||||
Month 3 (March 1, 2022 – March 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | 389,300 | $ | 27.38 | 389,300 | $ | 31,979,581 | ||||||||||||||||||||
Employee transactions(2) | 374,149 | $ | 32.83 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 763,449 | $ | 30.05 | 389,300 | ||||||||||||||||||||||
Month 4 (April 1, 2022 – April 30, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | 120,700 | $ | 27.24 | 120,700 | $ | 28,691,809 | ||||||||||||||||||||
Employee transactions(2) | 23 | $ | 26.22 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 120,723 | $ | 27.24 | — | ||||||||||||||||||||||
Month 5 (May 1, 2022 – May 31, 2022) |
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) | — | $ | — | — | $ | 28,691,809 | ||||||||||||||||||||
Employee transactions(2) | 164,490 | $ | 24.02 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 164,490 | $ | 24.02 | — | ||||||||||||||||||||||
Month 6 (June 1, 2022 – June 30, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | — | $ | — | — | $ | 28,691,809 | ||||||||||||||||||||
Employee transactions(2) | 12,537 | $ | 26.06 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | ||||||||||||||||||||||
Total | 12,537 | $ | 26.06 | — | ||||||||||||||||||||||
Month 7 (July 1, 2022 – July 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | 150,000 | $ | 24.33 | 150,000 | $ | 25,042,021 | ||||||||||||||||||||
Employee transactions(2) | — | $ | — | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 150,000 | $ | 24.33 | 150,000 | ||||||||||||||||||||||
Month 8 (August 1, 2022 – August 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | — | $ | — | — | $ | — | ||||||||||||||||||||
Employee transactions(2) | — | $ | — | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | — | $ | — | — | ||||||||||||||||||||||
Month 9 (September 1, 2022 – September 30, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | — | $ | — | — | $ | — | ||||||||||||||||||||
Employee transactions(2) | 314,052 | $ | 38.46 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 314,052 | $ | 38.46 | — | ||||||||||||||||||||||
Month 10 (October 1, 2022 – October 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | — | $ | — | — | $ | — | ||||||||||||||||||||
Employee transactions(2) | — | $ | — | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | — | $ | — | — | ||||||||||||||||||||||
Month 11 (November 1, 2022 – November 30, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | — | $ | — | — | $ | — | ||||||||||||||||||||
Employee transactions(2) | 203 | $ | 38.40 | — | — | |||||||||||||||||||||
Total | 203 | $ | — | — | ||||||||||||||||||||||
Month 12 (December 1, 2022 – December 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | — | $ | — | — | $ | — | ||||||||||||||||||||
Employee transactions(2) | 193,479 | $ | 38.42 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 193,479 | $ | — | — | ||||||||||||||||||||||
Total (January 1, 2022 – December 31, 2022) | ||||||||||||||||||||||||||
Common stock repurchases(1) | 1,069,002 | $ | 29.07 | 1,069,002 | $ | 25,042,024 | ||||||||||||||||||||
Employee transactions(2) | 1,058,933 | $ | 34.07 | — | — | |||||||||||||||||||||
Other (3) | — | $ | — | — | — | |||||||||||||||||||||
Total | 2,127,935 | $ | 31.56 | 1,069,002 |
Strategy | Healthcare Investments | Healthcare Royalties | Activism | Merger Arbitrage | Sustainable Investments | Other (a) | ||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||
AUM | $1,136 | $3,455 | $7,399 | $206 | $1,190 | $1,129 | ||||||||||||||||||||||||||||||||
Team | ||||||||||||||||||||||||||||||||||||||
Private Equity | ü | ü | ü | |||||||||||||||||||||||||||||||||||
Hedge Fund | ü | ü | ||||||||||||||||||||||||||||||||||||
Managed Account | ü | ü | ü | ü | ||||||||||||||||||||||||||||||||||
UCITS | ü | |||||||||||||||||||||||||||||||||||||
Other | ü |
Strategy | Net Value | % of Stockholders' Equity | |||||||||
(dollars in millions) | |||||||||||
Op Co | |||||||||||
Broker-dealer capital and related trading | $ | 713.2 | 67.0% | ||||||||
Public and Private Healthcare | 32.1 | 3.0% | |||||||||
Liquid Alternative Trading | 66.2 | 6.2% | |||||||||
Other | 17.0 | 1.6% | |||||||||
Asset Co | |||||||||||
Private Investments | 82.7 | 7.8% | |||||||||
Total | 911.2 | 85.6% | |||||||||
Cowen Inc. Stockholders' Equity | $ | 1,064.2 |
Consolidated Statements of Operations | |||||||||||||||||||||||
Year Ended December 31, | Period to Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Investment banking | $ | 494,842 | $ | 1,067,162 | $ | (572,320) | (54) | % | |||||||||||||||
Brokerage | 592,292 | 585,162 | 7,130 | 1 | % | ||||||||||||||||||
Investment income (loss) | |||||||||||||||||||||||
Securities principal transactions, net | 112,829 | 122,110 | (9,281) | (8) | % | ||||||||||||||||||
Portfolio fund principal transactions, net | (4,442) | 338 | (4,780) | (1,414) | % | ||||||||||||||||||
Carried interest allocations | (31,555) | 5,059 | (36,614) | (724) | % | ||||||||||||||||||
Total investment income (loss) | 76,832 | 127,507 | (50,675) | (40) | % | ||||||||||||||||||
Management fees | 66,670 | 72,287 | (5,617) | (8) | % | ||||||||||||||||||
Incentive income | 646 | 2,732 | (2,086) | (76) | % | ||||||||||||||||||
Interest and dividends | 312,134 | 219,292 | 92,842 | 42 | % | ||||||||||||||||||
Insurance and reinsurance premiums | 36,522 | 39,631 | (3,109) | (8) | % | ||||||||||||||||||
Other revenues, net | 7,010 | 5,211 | 1,799 | 35 | % | ||||||||||||||||||
Consolidated Funds revenues | (49,225) | (6,185) | (43,040) | (696) | % | ||||||||||||||||||
Total revenues | 1,537,723 | 2,112,799 | (575,076) | (27) | % | ||||||||||||||||||
Interest and dividends expense | 259,126 | 211,387 | 47,739 | 23 | % | ||||||||||||||||||
Total net revenues | 1,278,597 | 1,901,412 | (622,815) | (33) | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Employee compensation and benefits | 771,386 | 1,046,371 | (274,985) | (26) | % | ||||||||||||||||||
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs | (12,260) | 33,938 | (46,198) | (136) | % | ||||||||||||||||||
Operating, general, administrative and other expenses | 424,470 | 430,250 | (5,780) | (1) | % | ||||||||||||||||||
Depreciation and amortization expense | 27,725 | 19,004 | 8,721 | 46 | % | ||||||||||||||||||
Consolidated Funds expenses | 248 | 630 | (382) | (61) | % | ||||||||||||||||||
Total expenses | 1,211,569 | 1,530,193 | (318,624) | (21) | % | ||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||
Net gains (losses) on other investments | 9,613 | 35,494 | (25,881) | (73) | % | ||||||||||||||||||
Bargain purchase gain, net of tax | — | 3,855 | (3,855) | NM | |||||||||||||||||||
Gain/(loss) on debt extinguishment | — | (4,538) | 4,538 | NM | |||||||||||||||||||
Total other income (loss) | 9,613 | 34,811 | (25,198) | (72) | % | ||||||||||||||||||
Income (loss) before income taxes | 76,641 | 406,030 | (329,389) | (81) | % | ||||||||||||||||||
Income tax expense (benefit) | 10,786 | 102,039 | (91,253) | (89) | % | ||||||||||||||||||
Net income (loss) | 65,855 | 303,991 | (238,136) | (78) | % | ||||||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | (10,603) | 8,380 | (18,983) | (227) | % | ||||||||||||||||||
Net income (loss) attributable to Cowen Inc. | 76,458 | 295,611 | (219,153) | (74) | % | ||||||||||||||||||
Preferred stock dividends | 6,792 | 6,792 | — | — | % | ||||||||||||||||||
Net income (loss) attributable to Cowen Inc. common stockholders | $ | 69,666 | $ | 288,819 | $ | (219,153) | (76) | % |
Consolidated Statements of Operations | |||||||||||||||||||||||
Year Ended December 31, | Period to Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Investment banking | $ | 1,067,162 | $ | 769,486 | $ | 297,676 | 39 | % | |||||||||||||||
Brokerage | 585,162 | 524,361 | 60,801 | 12 | % | ||||||||||||||||||
Investment income (loss) | |||||||||||||||||||||||
Securities principal transactions, net | 122,110 | 124,667 | (2,557) | (2) | % | ||||||||||||||||||
Portfolio fund principal transactions, net | 338 | 20,434 | (20,096) | (98) | % | ||||||||||||||||||
Carried interest allocations | 5,059 | 59,250 | (54,191) | (91) | % | ||||||||||||||||||
Investment income (loss) | 127,507 | 204,351 | (76,844) | (38) | % | ||||||||||||||||||
Management fees | 72,287 | 47,515 | 24,772 | 52 | % | ||||||||||||||||||
Incentive income | 2,732 | 592 | 2,140 | 361 | % | ||||||||||||||||||
Interest and dividends | 219,292 | 187,459 | 31,833 | 17 | % | ||||||||||||||||||
Reinsurance premiums | 39,631 | 30,147 | 9,484 | 31 | % | ||||||||||||||||||
Other revenues, net | 5,211 | 10,503 | (5,292) | (50) | % | ||||||||||||||||||
Consolidated Funds revenues | (6,185) | (18,488) | 12,303 | (67) | % | ||||||||||||||||||
Total revenues | 2,112,799 | 1,755,926 | 356,873 | 20 | % | ||||||||||||||||||
Interest and dividends expense | 211,387 | 187,725 | 23,662 | 13 | % | ||||||||||||||||||
Total net revenues | 1,901,412 | 1,568,201 | 333,211 | 21 | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Employee compensation and benefits | 1,046,371 | 860,531 | 185,840 | 22 | % | ||||||||||||||||||
Reinsurance claims, commissions and amortization of deferred acquisition costs | 33,938 | 33,905 | 33 | — | % | ||||||||||||||||||
Operating, general, administrative and other expenses | 430,250 | 369,840 | 60,410 | 16 | % | ||||||||||||||||||
Depreciation and amortization expense | 19,004 | 22,677 | (3,673) | (16) | % | ||||||||||||||||||
Consolidated Funds expenses | 630 | 5,409 | (4,779) | (88) | % | ||||||||||||||||||
Total expenses | 1,530,193 | 1,292,362 | 237,831 | 18 | % | ||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||
Net gains (losses) on other investments | 35,494 | 18,879 | 16,615 | 88 | % | ||||||||||||||||||
Bargain purchase gain, net of tax | 3,855 | — | 3,855 | NM | |||||||||||||||||||
Gain/(loss) on debt extinguishment | (4,538) | 2,719 | (7,257) | NM | |||||||||||||||||||
Total other income (loss) | 34,811 | 21,598 | 13,213 | 61 | % | ||||||||||||||||||
Income (loss) before income taxes | 406,030 | 297,437 | 108,593 | 37 | % | ||||||||||||||||||
Income tax expense (benefit) | 102,039 | 90,373 | 11,666 | 13 | % | ||||||||||||||||||
Net income (loss) | 303,991 | 207,064 | 96,927 | 47 | % | ||||||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | 8,380 | (9,299) | 17,679 | (190) | % | ||||||||||||||||||
Net income (loss) attributable to Cowen Inc. | 295,611 | 216,363 | 79,248 | 37 | % | ||||||||||||||||||
Preferred stock dividends | 6,792 | 6,792 | — | — | % | ||||||||||||||||||
Net income (loss) attributable to Cowen Inc. common stockholders | $ | 288,819 | $ | 209,571 | $ | 79,248 | 38 | % |
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Proceeds | |||||||||||||||||||||||
Investment banking | $ | 478,184 | $ | 1,025,688 | $ | (547,504) | (53) | % | |||||||||||||||
Brokerage | 719,208 | 728,525 | (9,317) | (1) | % | ||||||||||||||||||
Management fees | 82,681 | 79,255 | 3,426 | 4 | % | ||||||||||||||||||
Incentive income (loss) | (12,678) | 34,579 | (47,257) | (137) | % | ||||||||||||||||||
Investment income (loss) | 21,226 | 8,542 | 12,684 | 148 | % | ||||||||||||||||||
Other income (loss) economic proceeds | 57,299 | 7,942 | 49,357 | 621 | % | ||||||||||||||||||
Total: Economic Proceeds | 1,345,920 | 1,884,531 | (538,611) | (29) | % | ||||||||||||||||||
Economic Interest Expense / (Income) | 5,233 | 23,914 | (18,681) | (78) | % | ||||||||||||||||||
Net Economic Proceeds | $ | 1,340,687 | $ | 1,860,617 | $ | (519,930) | (28) | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Economic Expenses | (dollars in thousands) | ||||||||||||||||||||||
Employee compensation and benefits | $ | 772,202 | $ | 1,046,730 | $ | (274,528) | (26) | % | |||||||||||||||
Non-Compensation Expense | 412,192 | 359,577 | 52,615 | 15 | % | ||||||||||||||||||
Depreciation & Amortization | 27,702 | 18,982 | 8,720 | 46 | % | ||||||||||||||||||
Non-Controlling Interest | 2,314 | 5,314 | (3,000) | (56) | % | ||||||||||||||||||
Total: Economic Expenses | $ | 1,214,410 | $ | 1,430,603 | $ | (216,193) | (15) | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Pre-tax Economic Income (Loss) | $ | 126,277 | $ | 430,014 | $ | (303,737) | (71) | % | |||||||||||||||
Economic income tax expense | 32,832 | 109,654 | (76,822) | (70) | % | ||||||||||||||||||
Preferred stock dividends | 5,943 | 5,841 | 102 | 2 | % | ||||||||||||||||||
Economic Income (Loss) | 87,502 | 314,519 | (227,017) | (72) | % | ||||||||||||||||||
Add back: Depreciation and amortization expense, net of taxes | 20,500 | 14,142 | 6,358 | 45 | % | ||||||||||||||||||
Economic Operating Income (Loss) | $ | 108,002 | $ | 328,661 | $ | (220,659) | (67) | % |
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
Economic Proceeds | (dollars in thousands) | ||||||||||||||||||||||
Management fees | $ | 850 | $ | 1,200 | $ | (350) | (29) | % | |||||||||||||||
Incentive income (loss) | (13,143) | (1,153) | (11,990) | 1,040 | % | ||||||||||||||||||
Investment income (loss) | (20,837) | 6,014 | (26,851) | (446) | % | ||||||||||||||||||
Other income (loss) economic proceeds | 7 | (2) | 9 | (450) | % | ||||||||||||||||||
Total: Economic Proceeds | (33,123) | 6,059 | (39,182) | (647) | % | ||||||||||||||||||
Economic Interest Expense / (Income) | 283 | 3,779 | (3,496) | (93) | % | ||||||||||||||||||
Net Economic Proceeds | $ | (33,406) | $ | 2,280 | $ | (35,686) | (1,565) | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Expenses | |||||||||||||||||||||||
Employee compensation and benefits | $ | 2,330 | $ | 3,871 | $ | (1,541) | (40) | % | |||||||||||||||
Non-Compensation Expense | 232 | 187 | 45 | 24 | % | ||||||||||||||||||
Depreciation & Amortization | 23 | 22 | 1 | 5 | % | ||||||||||||||||||
Total: Economic Expenses | $ | 2,585 | $ | 4,080 | $ | (1,495) | (37) | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Pre-tax Economic Income (Loss) | $ | (35,991) | $ | (1,800) | $ | (34,191) | 1,900 | % | |||||||||||||||
Economic income tax expense | (9,358) | (460) | (8,898) | 1,934 | % | ||||||||||||||||||
Preferred stock dividends | 849 | 951 | (102) | (11) | % | ||||||||||||||||||
Economic Income (Loss) | (27,482) | (2,291) | (25,191) | 1,100 | % | ||||||||||||||||||
Add back: Depreciation and amortization expense, net of taxes | 17 | 16 | 1 | 6 | % | ||||||||||||||||||
Economic Operating Income (Loss) | $ | (27,465) | $ | (2,275) | $ | (25,190) | 1,107 | % |
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Proceeds | |||||||||||||||||||||||
Investment banking | $ | 1,025,688 | $ | 729,180 | $ | 296,508 | 41 | % | |||||||||||||||
Brokerage | 728,525 | 652,647 | 75,878 | 12 | % | ||||||||||||||||||
Management fees | 79,255 | 58,154 | 21,101 | 36 | % | ||||||||||||||||||
Incentive income (loss) | 34,579 | 83,435 | (48,856) | (59) | % | ||||||||||||||||||
Investment income (loss) | 8,542 | 37,786 | (29,244) | (77) | % | ||||||||||||||||||
Other income (loss) economic proceeds | 7,942 | 775 | 7,167 | 925 | % | ||||||||||||||||||
Total: Economic Proceeds | 1,884,531 | 1,561,977 | 322,554 | 21 | % | ||||||||||||||||||
Economic Interest Expense / (Income) | 23,914 | 24,519 | (605) | (2) | % | ||||||||||||||||||
Net Economic Proceeds | $ | 1,860,617 | $ | 1,537,458 | $ | 323,159 | 21 | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Expenses | |||||||||||||||||||||||
Employee compensation and benefits | $ | 1,046,730 | $ | 860,753 | $ | 185,977 | 22 | % | |||||||||||||||
Non-Compensation Expense | 359,577 | 312,173 | 47,404 | 15 | % | ||||||||||||||||||
Depreciation & Amortization | 18,982 | 22,655 | (3,673) | (16) | % | ||||||||||||||||||
Non-Controlling Interest | 5,314 | 6,892 | (1,578) | (23) | % | ||||||||||||||||||
Total: Economic Expenses | $ | 1,430,603 | $ | 1,202,473 | $ | 228,130 | 19 | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Pre-tax Economic Income (Loss) | $ | 430,014 | $ | 334,985 | $ | 95,029 | 28 | % | |||||||||||||||
Economic income tax expense * | 109,654 | — | 109,654 | NM | |||||||||||||||||||
Preferred stock dividends | 5,841 | 5,604 | 237 | 4 | % | ||||||||||||||||||
Economic Income (Loss) | $ | 314,519 | $ | 329,381 | $ | (14,862) | (5) | % | |||||||||||||||
Add back: Depreciation and amortization expense | 14,142 | 22,655 | (8,513) | (38) | % | ||||||||||||||||||
Economic Operating Income (Loss) | $ | 328,661 | $ | 352,036 | $ | (23,375) | (7) | % |
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Economic Proceeds | (dollars in thousands) | ||||||||||||||||||||||
Management fees | $ | 1,200 | $ | 946 | $ | 254 | 27 | % | |||||||||||||||
Incentive income (loss) | (1,153) | 1,927 | (3,080) | (160) | % | ||||||||||||||||||
Investment income (loss) | 6,014 | (8,564) | 14,578 | 170 | % | ||||||||||||||||||
Other income (loss) economic proceeds | (2) | 5 | (7) | (140) | % | ||||||||||||||||||
Total: Economic Proceeds | 6,059 | (5,686) | 11,745 | (207) | % | ||||||||||||||||||
Economic Interest Expense / (Income) | 3,779 | 5,123 | (1,344) | (26) | % | ||||||||||||||||||
Net Economic Proceeds | $ | 2,280 | $ | (10,809) | $ | 13,089 | (121) | % | |||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Expenses | |||||||||||||||||||||||
Employee compensation and benefits | $ | 3,871 | $ | 3,767 | $ | 104 | 3 | % | |||||||||||||||
Non-Compensation Expenses | 187 | 350 | (163) | (47) | % | ||||||||||||||||||
Depreciation & Amortization | 22 | 22 | — | — | % | ||||||||||||||||||
Total: Economic Expenses | $ | 4,080 | $ | 4,139 | $ | (59) | (1) | % | |||||||||||||||
(unaudited) | |||||||||||||||||||||||
Year Ended December 31, | Total Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Pre-tax Economic Income (Loss) | $ | (1,800) | $ | (14,948) | 13,148 | (88) | % | ||||||||||||||||
Economic income tax expense * | (460) | — | (460) | NM | |||||||||||||||||||
Preferred stock dividends | 951 | 1,188 | (237) | (20) | % | ||||||||||||||||||
Economic Income (Loss) | $ | (2,291) | $ | (16,136) | $ | 13,845 | (86) | % | |||||||||||||||
Add back: Depreciation and amortization expense | 16 | 22 | (6) | (27) | % | ||||||||||||||||||
Economic Operating Income (Loss) | $ | (2,275) | $ | (16,114) | $ | 13,839 | (86) | % |
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment Banking | Brokerage | Investment Income | Management Fees | Incentive Income | Interest and Dividends | Reinsurance Premiums | Other Revenues, net | Consolidated Funds Revenues | Other Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total US GAAP Revenues and Other Income (Loss) | $ | 494,842 | $ | 592,292 | $ | 76,832 | $ | 66,670 | $ | 646 | $ | 312,134 | $ | 36,522 | $ | 7,010 | $ | (49,225) | $ | 9,613 | $ | 1,547,336 | ||||||||||||||||||||||||||||||||||||||||||||||
Management Presentation Reclassifications: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting expenses | a | (4,914) | — | — | — | — | — | — | — | — | — | (4,914) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reimbursable client expenses | b | (11,744) | — | — | — | — | — | — | (1,101) | — | — | (12,845) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities financing interest expense | c | — | (10,363) | — | — | — | (103,924) | — | — | — | — | (114,287) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund start-up costs, distribution and other fees | d | — | — | — | (1,513) | — | — | — | (2,445) | — | — | (3,958) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain equity method investments | e | — | — | — | 18,208 | 7,135 | — | — | — | — | (16,040) | 9,303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carried interest | f | — | — | 31,555 | — | (28,781) | — | — | — | — | — | 2,774 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proprietary trading, interest and dividends | g | — | (55,407) | (67,956) | — | (4,821) | (98,139) | — | 5,060 | — | 92,981 | (128,282) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance related activities expenses | h | — | — | — | — | — | — | (36,522) | 48,782 | — | — | 12,260 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facilitation trading gains and losses | i | — | 192,686 | (7,547) | — | — | (110,071) | — | — | — | (86,554) | (11,486) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Management Presentation Reclassifications: | (16,658) | 126,916 | (43,948) | 16,695 | (26,467) | (312,134) | (36,522) | 50,296 | — | (9,613) | (251,435) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund Consolidated Reclassifications | l | — | — | (32,495) | 166 | — | — | — | — | 49,225 | — | 16,896 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Economic Proceeds | $ | 478,184 | $ | 719,208 | $ | 389 | $ | 83,531 | $ | (25,821) | $ | — | $ | — | $ | 57,306 | $ | — | $ | — | $ | 1,312,797 |
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment Banking | Brokerage | Investment Income | Management Fees | Incentive Income | Interest and Dividends | Reinsurance Premiums | Other Revenues, net | Consolidated Funds Revenues | Other Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total US GAAP Revenues and Other Income (Loss) | $ | 1,067,162 | $ | 585,162 | $ | 127,507 | $ | 72,287 | $ | 2,732 | $ | 219,292 | $ | 39,631 | $ | 5,211 | $ | (6,185) | $ | 34,811 | $ | 2,147,610 | ||||||||||||||||||||||||||||||||||||||||||||||
Management Presentation Reclassifications: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting expenses | a | (24,978) | — | — | — | — | — | — | — | — | — | (24,978) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reimbursable client expenses | b | (16,496) | — | — | — | — | — | — | (1,206) | — | — | (17,702) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities financing interest expense | c | — | 8,006 | — | — | — | (153,928) | — | — | — | — | (145,922) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund start-up costs, distribution and other fees | d | — | (361) | — | (9,190) | — | — | — | (2,633) | — | — | (12,184) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain equity method investments | e | — | — | — | 15,142 | 25,802 | — | — | — | — | (32,261) | 8,683 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carried interest | f | — | — | (5,059) | — | 5,486 | — | — | — | — | — | 427 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proprietary trading, interest and dividends | g | — | 44,241 | (92,900) | — | (494) | (19,233) | — | 875 | — | 46,918 | (20,593) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance related activities expenses | h | — | — | — | — | — | — | (39,631) | 5,693 | — | — | (33,938) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facilitation trading gains and losses | i | — | 91,477 | (11,034) | — | — | (46,131) | — | — | — | (50,151) | (15,839) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Management Presentation Reclassifications: | (41,474) | 143,363 | (108,993) | 5,952 | 30,794 | (219,292) | (39,631) | 2,729 | — | (35,494) | (262,046) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund Consolidated Reclassifications | l | — | — | (3,958) | 2,216 | (100) | — | — | — | 6,185 | — | 4,343 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bargain purchase gain | n | — | — | — | — | — | — | — | — | — | (3,855) | (3,855) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt extinguishment loss | p | — | — | — | — | — | — | — | — | — | 4,538 | 4,538 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Income Statement Adjustments: | — | — | — | — | — | — | — | — | — | 683 | 683 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Economic Proceeds | $ | 1,025,688 | $ | 728,525 | $ | 14,556 | $ | 80,455 | $ | 33,426 | $ | — | $ | — | $ | 7,940 | $ | — | $ | — | $ | 1,890,590 |
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Investment Banking | Brokerage | Management Fees | Incentive Income | Investment Income | Interest and Dividends | Reinsurance Premiums | Other Revenues, net | Consolidated Funds Revenues | Other Income Gain/Loss | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total US GAAP Revenues and Other Income (Loss) | $ | 769,486 | $ | 524,361 | $ | 47,515 | $ | 592 | $ | 204,351 | $ | 187,459 | $ | 30,147 | $ | 10,503 | $ | (18,488) | $ | 21,598 | $ | 1,777,524 | ||||||||||||||||||||||||||||||||||||||||||||||
Management Presentation Reclassifications: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting expenses | a | (22,565) | — | — | — | — | — | — | — | — | — | (22,565) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reimbursable client expenses | b | (17,741) | — | — | — | — | — | — | (1,099) | — | — | (18,840) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities financing interest expense | c | — | 14,499 | — | — | — | (142,997) | — | — | — | — | (128,498) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund start-up costs and distribution fees | d | — | (293) | (3,970) | — | — | — | — | (2,529) | — | — | (6,792) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain equity method investments | e | — | — | 12,540 | 24,121 | — | — | — | — | — | (28,347) | 8,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carried interest | f | — | — | — | 60,649 | (61,367) | — | — | — | — | — | (718) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proprietary trading gains and losses | g | — | 79,955 | — | — | (102,381) | (17,443) | — | (2,346) | — | 9,468 | (32,747) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance related activities expenses | h | — | — | — | — | — | — | (30,147) | (3,759) | — | — | (33,906) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Facilitation trading gains and losses | i | — | 34,125 | — | — | (13,342) | (27,019) | — | — | — | — | (6,236) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Management Presentation Reclassifications: | (40,306) | 128,286 | 8,570 | 84,770 | (177,090) | (187,459) | (30,147) | (9,733) | — | (18,879) | (241,988) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fund Consolidated Reclassifications | l | — | — | 3,015 | — | 1,961 | — | — | 10 | 18,488 | — | 23,474 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt extinguishment | p | — | — | — | — | — | — | — | — | — | (2,719) | (2,719) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Income Statement Adjustments: | — | — | — | — | — | — | — | — | — | (2,719) | (2,719) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Economic Proceeds | $ | 729,180 | $ | 652,647 | $ | 59,100 | $ | 85,362 | $ | 29,222 | $ | — | $ | — | $ | 780 | $ | — | $ | — | $ | 1,556,291 | ||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(Dollar amounts in thousands) | 2022 | 2021 | 2020 | |||||||||||||||||
Total US GAAP Interest & Dividend Expense | $ | 259,126 | $ | 211,387 | $ | 187,725 | ||||||||||||||
Management Presentation Reclassifications: | ||||||||||||||||||||
Securities financing interest expense | c | (114,287) | (145,922) | (128,498) | ||||||||||||||||
Fund start-up costs, distribution and other fees | d | (3,204) | (2,257) | — | ||||||||||||||||
Proprietary trading gains and losses | g | (124,324) | (12,515) | (18,850) | ||||||||||||||||
Facilitation trading gains and losses | i | (11,486) | (15,839) | (6,236) | ||||||||||||||||
Total Management Presentation Reclassifications: | (253,301) | (176,533) | (153,584) | |||||||||||||||||
Income Statement Adjustments: | ||||||||||||||||||||
Accelerated debt costs | p | — | (5,557) | — | ||||||||||||||||
Amortization of discount/(premium) on debt | m | (309) | (1,604) | (4,499) | ||||||||||||||||
Total Income Statement Adjustments: | (309) | (7,161) | (4,499) | |||||||||||||||||
Total Economic Interest Expense | $ | 5,516 | $ | 27,693 | $ | 29,642 | ||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2022 | Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollar amounts in thousands) | Employee Compensation and Benefits | Non-compensation US GAAP Expenses | Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | Total | Employee Compensation and Benefits | Non-compensation US GAAP Expenses | Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | Total | ||||||||||||||||||||||||||||||||||||||||||
Total US GAAP | $ | 771,386 | $ | 440,183 | $ | (10,603) | $ | 1,200,966 | $ | 1,046,371 | $ | 483,822 | $ | 8,380 | $ | 1,538,573 | ||||||||||||||||||||||||||||||||||
Management Presentation Reclassifications: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting expenses | a | — | (4,914) | — | (4,914) | — | (24,978) | — | (24,978) | |||||||||||||||||||||||||||||||||||||||||
Reimbursable client expenses | b | — | (12,845) | — | (12,845) | — | (17,702) | — | (17,702) | |||||||||||||||||||||||||||||||||||||||||
Fund start-up costs, distribution and other fees | d | — | (754) | — | (754) | — | (9,927) | — | (9,927) | |||||||||||||||||||||||||||||||||||||||||
Certain equity method investments | e | — | 9,303 | — | 9,303 | — | 8,683 | — | 8,683 | |||||||||||||||||||||||||||||||||||||||||
Carried interest | f | — | 2,774 | — | 2,774 | — | 427 | — | 427 | |||||||||||||||||||||||||||||||||||||||||
Proprietary trading, interest and dividends | g | — | 2,583 | (6,541) | (3,958) | — | 5,275 | (13,353) | (8,078) | |||||||||||||||||||||||||||||||||||||||||
Insurance related activities expenses | h | — | 12,260 | — | 12,260 | — | (33,938) | — | (33,938) | |||||||||||||||||||||||||||||||||||||||||
Associated partner/banker compensation | j | 4,509 | (4,509) | — | — | 5,621 | (5,621) | — | — | |||||||||||||||||||||||||||||||||||||||||
Management company non-Controlling interest | k | (1,363) | (951) | 2,314 | — | (1,391) | (3,923) | 5,314 | — | |||||||||||||||||||||||||||||||||||||||||
Total Management Presentation Reclassifications: | 3,146 | 2,947 | (4,227) | 1,866 | 4,230 | (81,704) | (8,039) | (85,513) | ||||||||||||||||||||||||||||||||||||||||||
Fund Consolidated Reclassifications | l | — | (248) | 17,144 | 16,896 | — | (630) | 4,973 | 4,343 | |||||||||||||||||||||||||||||||||||||||||
Income Statement Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition related amounts | n | — | (16,293) | — | (16,293) | — | (6,593) | — | (6,593) | |||||||||||||||||||||||||||||||||||||||||
Contingent liability adjustments | n | — | 13,560 | — | 13,560 | — | (15,118) | — | (15,118) | |||||||||||||||||||||||||||||||||||||||||
Goodwill and/or other impairment | r | — | — | — | — | — | (1,009) | — | (1,009) | |||||||||||||||||||||||||||||||||||||||||
Total Income Statement Adjustments: | — | (2,733) | — | (2,733) | — | (22,720) | — | (22,720) | ||||||||||||||||||||||||||||||||||||||||||
Total Economic Expenses | $ | 774,532 | $ | 440,149 | $ | 2,314 | $ | 1,216,995 | $ | 1,050,601 | $ | 378,768 | $ | 5,314 | $ | 1,434,683 |
(unaudited) | ||||||||||||||||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||||||||||||
(Dollar amounts in thousands) | Employee Compensation and Benefits | Non-compensation US GAAP Expenses | Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | Total | ||||||||||||||||||||||
Total US GAAP | $ | 860,531 | $ | 431,831 | $ | (9,299) | $ | 1,283,063 | ||||||||||||||||||
Management Presentation Reclassifications: | ||||||||||||||||||||||||||
Underwriting expenses | a | — | (22,565) | — | (22,565) | |||||||||||||||||||||
Reimbursable client expenses | b | — | (18,840) | — | (18,840) | |||||||||||||||||||||
Securities financing interest expense | c | — | — | — | — | |||||||||||||||||||||
Fund start-up costs and distribution fees | d | — | (6,792) | — | (6,792) | |||||||||||||||||||||
Certain equity method investments | e | — | 8,314 | — | 8,314 | |||||||||||||||||||||
Carried interest | f | — | (718) | — | (718) | |||||||||||||||||||||
Proprietary trading gains and losses | g | — | 5,687 | (19,584) | (13,897) | |||||||||||||||||||||
Insurance related activities expenses | h | — | (33,906) | — | (33,906) | |||||||||||||||||||||
Facilitation trading gains and losses | i | — | — | — | — | |||||||||||||||||||||
Associated partner/banker compensation | j | 5,377 | (5,377) | — | — | |||||||||||||||||||||
Management company non-Controlling interest | k | (1,388) | (5,504) | 6,892 | — | |||||||||||||||||||||
Total Management Presentation Reclassifications: | 3,989 | (79,701) | (12,692) | (88,404) | ||||||||||||||||||||||
Fund Consolidated Reclassifications | l | — | (5,409) | 28,883 | 23,474 | |||||||||||||||||||||
Income Statement Adjustments: | ||||||||||||||||||||||||||
Acquisition adjustments | n | — | (606) | — | (606) | |||||||||||||||||||||
Contingent liability adjustments | n | — | (8,492) | — | (8,492) | |||||||||||||||||||||
Goodwill and/or other impairment | r | — | (2,423) | — | (2,423) | |||||||||||||||||||||
Total Income Statement Adjustments: | — | (11,521) | — | (11,521) | ||||||||||||||||||||||
Total Economic Expenses | $ | 864,520 | $ | 335,200 | $ | 6,892 | $ | 1,206,612 | ||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(Dollar amounts in thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||
US GAAP Net income (loss) attributable to Cowen Inc. common stockholders | $ | 69,666 | $ | 288,819 | $ | 209,571 | |||||||||||||||||
Income Statement Adjustments: | |||||||||||||||||||||||
US GAAP Income tax expense (benefit) | o | 10,786 | 102,039 | 90,373 | |||||||||||||||||||
Amortization of discount (premium) on debt | m | 309 | 1,604 | 4,499 | |||||||||||||||||||
Goodwill and/or other impairment | r | — | 1,009 | 2,423 | |||||||||||||||||||
Debt extinguishment gain (loss) and/or accelerated debt costs | p | — | 10,095 | — | |||||||||||||||||||
Bargain purchase gain | n | — | (3,855) | (2,719) | |||||||||||||||||||
Contingent liability adjustments | n | (13,560) | 15,118 | 8,492 | |||||||||||||||||||
Acquisition related amounts | n | 16,293 | 6,593 | 606 | |||||||||||||||||||
Preferred stock dividends | q | 6,792 | 6,792 | 6,792 | |||||||||||||||||||
Pre-tax Economic Income (Loss) | 90,286 | 428,214 | 320,037 | ||||||||||||||||||||
Economic income tax expense | (23,474) | (109,194) | — | ||||||||||||||||||||
Preferred stock dividends | (6,792) | (6,792) | (6,792) | ||||||||||||||||||||
Economic Income (Loss) | $ | 60,020 | $ | 312,228 | $ | 313,245 | |||||||||||||||||
Add back: Depreciation and amortization expense, net of taxes | 20,517 | 14,158 | 22,677 | ||||||||||||||||||||
Economic Operating Income (Loss) | $ | 80,537 | $ | 326,386 | $ | 335,922 |
Management Reclassifications | |||||
Management reclassification adjustments and fund consolidation reclassification adjustments have no effect on Economic Operating Income (Loss). These adjustments are reclassifications to change the location of certain line items. | |||||
a | Underwriting expenses: Economic Proceeds presents investment banking revenues net of underwriting expenses. | ||||
b | Reimbursable client expenses: Economic Proceeds presents expenses reimbursed from clients and affiliates within their respective expense category but is included as a part of revenues under US GAAP. | ||||
c | Securities financing interest expense: Brokerage within Economic Proceeds included net securities borrowed and securities loaned activities which are shown gross in interest income and interest expense for US GAAP. | ||||
d | Fund start-up costs, distribution and other fees: Economic Proceeds and Economic Interest Expense are net of fund start-up costs and distribution fees paid to agents and other debt service costs. | ||||
e | Certain equity method investments: Economic Proceeds and Economic Expenses recognize the Company's proportionate share of management and incentive fees and associated share of expenses on a gross basis for equity method investments within the activist business, real estate operating entities and the healthcare royalty business. The Company applies the equity method of accounting to these entities and accordingly the results from these businesses are recorded within Other Income (Loss) for US GAAP. | ||||
f | Carried interest: The Company applies an equity ownership model to carried interest which is recorded in Investment income - Carried interest allocation for US GAAP. The Company presents carried interest as Incentive Income Economic Proceeds. | ||||
g | Proprietary trading, interest and dividends: Economic Proceeds presents interest and dividends from the Company's proprietary trading in investment income. | ||||
h | Insurance related activities expenses: Economic Proceeds presents underwriting income from the Company's insurance and reinsurance related activities, net of expenses, within other revenue. The costs are recorded within expenses for US GAAP reporting. | ||||
i | Facilitation trading gains and losses: Economic Brokerage Proceeds presents gains and losses on investments held as part of the Company's facilitation and trading business within brokerage revenues as these investments are directly related to the markets business activities while these are presented in Investment income - Securities principal transactions, net for US GAAP reporting. | ||||
j | Associated partner/banker compensation reclassification: Economic Compensation Expense presents certain payments to associated banking partners as compensation rather than non-compensation expenses. | ||||
k | Management company non-controlling interest: Economic Expenses non-controlling interest represents only operating entities that are not wholly owned by the Company. The Company also presents non-controlling interests within total expenses for Economic Income (Loss). | ||||
Fund Consolidation Reclassifications | |||||
l | The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP Net Income (Loss) included elimination of incentive income and management fees earned from the Consolidated Funds and addition of investment fund expenses excluding management fees paid, investment fund revenues and investment income (loss). | ||||
Income Statement Adjustments | |||||
m | Pre-tax Economic Income (Loss) excludes the amortization of discount (premium) on debt. | ||||
n | Pre-tax Economic Income (Loss) excludes acquisition related adjustments (including bargain purchase gain and contingent liability adjustments). | ||||
o | Pre-tax Economic Income (Loss) excludes US GAAP income taxes. | ||||
p | Pre-tax Economic Income (Loss) excludes gain/(loss) on debt extinguishment and accelerated debt costs. | ||||
q | Pre-tax Economic income (Loss) excludes preferred stock dividends. | ||||
r | Economic Income (Loss) excludes goodwill and other impairments. |
Entity | Unfunded Commitments | Commitment term | ||||||||||||
(dollars in thousands) | ||||||||||||||
HealthCare Royalty Partners funds (a) | $ | 6,064 | 2.0 years | |||||||||||
Eclipse Ventures Fund I, L.P. | $ | 28 | 2.0 years | |||||||||||
Eclipse Fund II, L.P. | $ | 12 | 3.0 years | |||||||||||
Eclipse Continuity Fund I, L.P. | $ | 10 | 4.0 years | |||||||||||
Cowen Healthcare Investments III LP | $ | 1,552 | 4.0 years | |||||||||||
Cowen Healthcare Investments IV LP | $ | 4,758 | 5.0 years | |||||||||||
Cowen Sustainable Investments I LP | $ | 8,729 | 7.0 years |
Subsidiary | Net Capital (a) | Net Capital Requirement (b) | Excess Net Capital | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Cowen and Company | $ | 482,309 | $ | 4,052 | $ | 478,257 | ||||||||||||||
ATM Execution | $ | 5,775 | $ | 250 | $ | 5,525 | ||||||||||||||
Westminster | $ | 21,440 | $ | 250 | $ | 21,190 | ||||||||||||||
Cowen Financial Products | $ | 64,670 | $ | 20,000 | $ | 44,670 | ||||||||||||||
Cowen International Ltd (a) | $ | 48,554 | $ | 13,592 | $ | 34,962 | ||||||||||||||
Cowen Execution Ltd (a) | $ | 17,358 | $ | 7,022 | $ | 10,336 | ||||||||||||||
Cowen Asia (a) | $ | 2,710 | $ | 384 | $ | 2,326 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Lease cost | |||||||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of finance lease right-of-use assets | $ | 1,109 | $ | 1,274 | $ | 1,232 | |||||||||||
Interest on lease liabilities | 58 | 116 | 171 | ||||||||||||||
Weighted average remaining lease term - operating leases (in years) | 2.05 | 1.71 | 3.21 | ||||||||||||||
Weighted average discount rate - operating leases | 5.39 | % | 4.70 | % | 4.88 | % |
Location | Amount | Maturity | ||||||||||||
(dollars in thousands) | ||||||||||||||
New York | $ | 2,309 | December 2023 | |||||||||||
Boston | 382 | November 2023 | ||||||||||||
San Francisco | 455 | November 2023 | ||||||||||||
$ | 3,146 |
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 | $ | 93,702 | $ | 24,653 | $ | 34,231 | $ | 15,820 | $ | 18,998 | |||||||||||||||||||
Service Payments | 68,477 | 32,919 | 24,930 | 6,528 | 4,100 | ||||||||||||||||||||||||
Operating Equipment Leases | 1,795 | 523 | 994 | 278 | — | ||||||||||||||||||||||||
Total | 163,974 | 58,095 | 60,155 | 22,626 | 23,098 | ||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Notes Payable | 267,858 | 13,405 | 96,328 | 15,500 | 142,625 | ||||||||||||||||||||||||
Term Loan | 612,021 | 37,700 | 74,471 | 73,020 | 426,830 | ||||||||||||||||||||||||
Finance Lease Obligation | 721 | 458 | 185 | 78 | — | ||||||||||||||||||||||||
Other Notes Payable | 14,046 | 13,503 | 543 | — | — | ||||||||||||||||||||||||
Total | $ | 894,646 | $ | 65,066 | $ | 171,527 | $ | 88,598 | $ | 569,455 |
Notes Payable | Term Loan | Other Notes Payable | Finance Lease Obligation | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2023 | $ | 13,405 | $ | 37,700 | $ | 13,503 | $ | 458 | |||||||||||||||
2024 | 88,578 | 37,451 | 543 | 104 | |||||||||||||||||||
2025 | 7,750 | 37,020 | — | 81 | |||||||||||||||||||
2026 | 7,750 | 36,680 | — | 50 | |||||||||||||||||||
2027 | 7,750 | 36,340 | — | 28 | |||||||||||||||||||
Thereafter | 142,625 | 426,830 | — | — | |||||||||||||||||||
Subtotal | 267,858 | 612,021 | 14,046 | 721 | |||||||||||||||||||
Less (a) | (93,334) | (179,756) | (1,347) | (48) | |||||||||||||||||||
Total | $ | 174,524 | $ | 432,265 | $ | 12,699 | $ | 673 |
Chief Executive Officer | 8× Base Salary | $8,000,000 | ||||||
Other Named Executive Officers | 3× Base Salary | $2,175,000 |
Name & Principal Position | Year | Salary ($) | Bonus ($)(1) | Stock Awards ($)(2) | All Other Compensation ($)(3) | Total ($) | ||||||||||||||
Jeffrey M. Solomon Chief Executive Officer | 2022 | 1,000,000 | 4,500,000 | 6,388,083 | 3,605,888 | 15,493,973 | ||||||||||||||
2021 | 1,000,000 | 16,000,000 | 8,383,130 | 3,176,410 | 28,559,540 | |||||||||||||||
2020 | 1,000,000 | 13,000,000 | 3,157,115 | 1,833,388 | 18,990,503 | |||||||||||||||
Stephen A. Lasota Chief Financial Officer | 2022 | 725,000 | 1,965,000 | 849,759 | 357,603 | 3,897,362 | ||||||||||||||
2021 | 700,000 | 4,613,000 | 595,292 | 384,635 | 6,292,927 | |||||||||||||||
2020 | 700,000 | 4,847,295 | 899,110 | 373,870 | 6,820,275 | |||||||||||||||
John Holmes Chief Operating Officer | 2022 | 725,000 | 1,965,000 | 935,322 | 401,503 | 4,026,825 | ||||||||||||||
2021 | 700,000 | 5,056,000 | 595,292 | 405,860 | 6,757,152 | |||||||||||||||
2020 | 700,000 | 5,347,295 | 927,220 | 386,842 | 7,361,357 | |||||||||||||||
Owen S. Littman General Counsel and Secretary | 2022 | 725,000 | 1,965,000 | 849,759 | 369,384 | 3,909,143 | ||||||||||||||
2021 | 700,000 | 4,613,000 | 595,292 | 389,075 | 6,299,141 | |||||||||||||||
2020 | 700,000 | 4,847,295 | 899,110 | 366,686 | 6,818,910 |
Other Compensation ($) | Jeffrey M. Solomon | Stephen A. Lasota | John Holmes | Owen S. Littman | ||||||||||
Vested Deferred Cash Awards | 3,425,963 | 293,995 | 330,440 | 305,402 | ||||||||||
Dividend Equivalents | 179,925 | 63,608 | 71,063 | 63,982 |
Estimated Future Payouts Under Equity Incentive Plan Awards(1) | |||||||||||||||||||||||
Grant Date | Corporate Action Date | Threshold (#) | Target (#) | Maximum (#) | All Other Stock Awards: Number of Shares of Stock or Units (#)(2) | Grant Date Fair Value of Stock Awards ($)(3) | |||||||||||||||||
Jeffrey M. Solomon | 2/18/22 | 1/13/22 | — | — | 112,360 | 3,522,486 | |||||||||||||||||
3/1/22 | 2/25/22 | 49,993 | 99,986 | 199,972 | — | 2,865,599 | |||||||||||||||||
Stephen A. Lasota | 2/18/22 3/1/22 | 1/13/22 2/25/22 | 9,548 | — 19,095 | — 38,190 | 9,649 — | 302,496 547,263 | ||||||||||||||||
John Holmes | 2/18/22 3/1/22 | 1/13/22 2/25/22 | 10,601 | — 21,201 | — 42,402 | 10,453 — | 327,702 607,621 | ||||||||||||||||
Owen S. Littman | 2/18/22 3/1/22 | 1/13/22 2/25/22 | 9,548 | — 19,095 | — 38,190 | 9,649 — | 302,496 547,263 |
Stock Awards | ||||||||||||||||||||||||||
Number of Shares that Have Not Vested (#) | Market Value of Shares that Have Not Vested ($)(1) | Equity Incentive Plan Awards: Number of Unearned Units That Have Not Vested (#) | Equity Incentive Plan Awards: Market Value of Unearned Units That Have Not Vested ($)(1) | |||||||||||||||||||||||
Jeffrey M. Solomon | ||||||||||||||||||||||||||
2019 RSU Award(2) | 40,219 | 1,533,258 | — | — | ||||||||||||||||||||||
2020 RSU Award(3) | 64,967 | 2,509,026 | — | — | ||||||||||||||||||||||
2021 RSU Award(4) | 87,859 | 3,393,115 | — | — | ||||||||||||||||||||||
2021 PSA Award(5) | — | — | 33,250 | 1,284,115 | ||||||||||||||||||||||
2022 RSU Award(6) | 98,315 | 3,796,925 | — | |||||||||||||||||||||||
2022 PSA Award(7) | — | — | 49,993 | 1,930,730 | ||||||||||||||||||||||
Stephen A. Lasota | ||||||||||||||||||||||||||
2019 RSU Award(2) | 4,708 | 181,823 | — | — | ||||||||||||||||||||||
2020 RSU Award(3) | 9,746 | 376,391 | — | — | ||||||||||||||||||||||
2021 PSA Award(5) | — | — | 8,600 | 332,132 | ||||||||||||||||||||||
2022 RSU Award(6) | 8,443 | 326,069 | — | |||||||||||||||||||||||
2022 PSA Award(7) | — | — | 9,548 | 368,724 | ||||||||||||||||||||||
John Holmes | ||||||||||||||||||||||||||
2019 RSU Award(2) | 5,773 | 222,953 | — | — | ||||||||||||||||||||||
2020 RSU Award(3) | 10,551 | 407,480 | — | — | ||||||||||||||||||||||
2021 PSA Award(5) | — | — | 8,600 | 332,132 | ||||||||||||||||||||||
2022 RSU Award(6) | 9,147 | 353,257 | — | |||||||||||||||||||||||
2022 PSA Award(7) | — | — | 10,601 | 409,391 | ||||||||||||||||||||||
Owen S. Littman | ||||||||||||||||||||||||||
2019 RSU Award(2) | 5,238 | 202,292 | — | — | ||||||||||||||||||||||
2020 RSU Award(3) | 9,746 | 376,391 | — | — | ||||||||||||||||||||||
2021 PSA Award(5) | — | — | 8,600 | 332,132 | ||||||||||||||||||||||
2022 RSU Award(6) | 8,443 | 326,069 | — | — | ||||||||||||||||||||||
2022 PSA Award(7) | — | — | 9,548 | 368,724 |
Name | Number of Shares Acquired on Vesting | Value Realized on Vesting ($)(1) | ||||||
Jeffrey M. Solomon | 242,722 | 8,495,163 | ||||||
Stephen A. Lasota | 89,826 | 3,113,594 | ||||||
John Holmes | 100,386 | 3,396,977 | ||||||
Owen S. Littman | 90,359 | 3,126,397 |
Triggering Events | ||||||||||||||||||||
Name | Type of Payment | Voluntary Termination ($) | Involuntary Termination ($) | Involuntary Termination in Connection with a Change in Control(4)(5) ($) | Death ($) | Disability ($) | ||||||||||||||
Jeffrey M. Solomon | Cash Severance(1) | — | 41,907,227 | 62,907,207 | 34,407,227 | 34,407,227 | ||||||||||||||
Equity Acceleration(2) | — | 17,682,013 | 17,682,013 | 17,682,013 | 17,682,013 | |||||||||||||||
Total | — | 59,589,240 | 80,589,220 | 52,089,240 | 52,089,240 | |||||||||||||||
Stephen A. Lasota | Cash Severance(3) | — | 7,795,897 | 13,989,395 | 6,476,617 | 6,476,617 | ||||||||||||||
Equity Acceleration(2) | — | 2,285,995 | 2,285,995 | 2,285,995 | 2,285,995 | |||||||||||||||
Total | — | 10,261,892 | 16,275,390 | 8,762,612 | 8,762,612 | |||||||||||||||
John Holmes | Cash Severance(3) | — | 8,565,196 | 15,104,447 | 7,066,947 | 7,066,947 | ||||||||||||||
Equity Acceleration(2) | — | 2,446,737 | 2,446,737 | 2,446,737 | 2,446,737 | |||||||||||||||
Total | — | 11,031,933 | 17,571,184 | 9,533,684 | 9,533,684 | |||||||||||||||
Owen S. Littman | Cash Severance(3) | — | 8,010,153 | 14,012,401 | 6,510,153 | 6,510,153 | ||||||||||||||
Equity Acceleration(2) | — | 2,306,464 | 2,306,464 | 2,306,464 | 2,306,464 | |||||||||||||||
Total | — | 10,316,617 | 16,318,865 | 8,816,617 | 8,816,617 |
Director | Fees Earned Paid in Cash ($) | Stock Awards ($)(1) | All Other Compensation ($) | Total | ||||||||||||||||||||||
Brett H. Barth | 162,500 | 162,500 | 2,477 | (2) | 327,477 | |||||||||||||||||||||
Katherine E. Dietze | 142,500 | 142,500 | — | 285,000 | ||||||||||||||||||||||
Gregg A. Gonsalves | 125,000 | 125,000 | — | 250,000 | ||||||||||||||||||||||
Lorence Kim | 133,334 | (3) | 200,000 | — | 333,334 | |||||||||||||||||||||
Steven Kotler | 135,000 | 135,000 | — | 270,000 | ||||||||||||||||||||||
Lawrence E. Leibowitz | 62,500 | 187,500 | — | 250,000 | ||||||||||||||||||||||
Margart L. Poster | 125,000 | 125,000 | — | 250,000 | ||||||||||||||||||||||
Douglas A. Rediker(4) | — | 250,000 | — | 250,000 |
(1) | Represents the aggregate grant date fair value calculated in accordance with generally accepted accounting principles, disregarding for this purpose the estimate of forfeitures related to service-based vesting conditions. For information on the valuation assumptions with respect to awards made, refer to the Company’s Share-Based Compensation and Employee Ownership Plans Note __ in the Financial Statements. As of December 31, 2022, all outstanding stock awards held by our directors are fully vested. |
(2) | Represents dividend equivalent shares awarded on delivered RSUs. |
(3) | Dr. Kim received $83,334 for his Board service from February through June 2022. |
(4) | In 2022, Mr. Rediker elected to receive 100% of his director compensation in RSUs. Please see “Narrative Disclosure Relating to Director Compensation Table” below for additional information regarding non-employee director compensation in 2022. |
Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class | ||||||||||||
Brett H. Barth | 69,944 | (1) | * | |||||||||||
Katherine E. Dietze | 12,007 | (2) | * | |||||||||||
Gregg A. Gonsalves | 0 | (3) | * | |||||||||||
Lorence Kim | 30,000 | (4) | * | |||||||||||
Steven Kotler | 2,500 | (5) | * | |||||||||||
Lawrence E. Leibowitz | 8,000 | (6) | * | |||||||||||
Margaret L. Poster | 13,547 | (7) | * | |||||||||||
Douglas A. Rediker | 0 | (8) | * | |||||||||||
Jeffrey M. Solomon | 603,687 | 2.1% | ||||||||||||
John Holmes | 220,131 | * | ||||||||||||
Stephen A. Lasota | 257,055 | * | ||||||||||||
Owen S. Littman | 199,292 | (9) | * | |||||||||||
All directors and executive officers as a group (12 persons) | 1,438,663 | 5.0% |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percent of Class | ||||||||||||
BlackRock, Inc.(1) 55 East 52nd Street New York, NY 10055 | 2,334,921 | 8.27% |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under the Equity Compensation Plan (Excluding Shares in First Column) | |||||||||||||||||
Equity compensation plans approved by security holders | --- | ---- | 3,672,530 | |||||||||||||||||
Equity compensation plans not approved by security holders | None | N/A | None |
• | interests arising solely from the related person’s position as an executive officer of another entity (whether or not the person is also a director of such entity), that is a participant in the transaction, where (a) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (b) the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction and do not receive any special benefits as a result of the transaction, (c) the amount involved in the transaction equals less than the greater of $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction; |
• | a transaction with a significant stockholder, or such stockholder’s immediate family members, who has a current Schedule 13G filed with the SEC with respect to such stockholder’s ownership of our securities; and |
• | a transaction that is specifically contemplated by provisions of our charter or bylaws. |
2022 | 2021 | ||||||||||
Audit Fees(1) | $6,911,001 | $6,221,827 | |||||||||
Audit-Related Fees(2) | 39,569 | 50,156 | |||||||||
Tax Fees(3) | 973,673 | 1,096,363 | |||||||||
All Other Fees(4) | 49,023 | 235,422 | |||||||||
Total | 7,973,266 | 7,603,768 |
(1) | Audit fees reflect audit fees incurred for the Cowen Inc. integrated audit and quarterly reviews as well as the financial statement audits of its consolidated subsidiaries. | ||||
(2) | Audit-Related Fees reflect fees for attestation procedures required by local regulations for consolidated subsidiaries. | ||||
(3) | Tax fees reflect tax compliance and tax advisory services. | ||||
(4) | All Other Fees relate to due diligence and other non-tax advisory and consulting services. |
Exhibit No. | Description | |||||||
Exhibit No. | Description | |||||||
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) | |||||||
Consolidated Financial Statements | Page | |||||||
Report of Independent Registered Public Accounting Firm ( | ||||||||
Cowen Inc. Consolidated Statements of Financial Condition (dollars in thousands, except share and per share data) | |||||||||||
As of December 31, 2022 | As of December 31, 2021 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash collateral pledged | |||||||||||
Segregated cash | |||||||||||
Securities owned, at fair value ($ | |||||||||||
Securities purchased under agreements to resell | |||||||||||
Receivable on derivative contracts, at fair value | |||||||||||
Securities borrowed | |||||||||||
Other investments ($ | |||||||||||
Deposits with clearing organizations, brokers and banks | |||||||||||
Receivable from brokers, dealers and clearing organizations, net of allowance of $ | |||||||||||
Receivable from customers, net of allowance of $ | |||||||||||
Fees receivable, net of allowance of $ | |||||||||||
Insurance and reinsurance assets | |||||||||||
Due from related parties | |||||||||||
Fixed assets, net of accumulated depreciation and amortization of $ | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net of accumulated amortization of $ | |||||||||||
Deferred tax asset, net | |||||||||||
Other assets, net of allowance of $ | |||||||||||
Consolidated Funds | |||||||||||
Cash and cash equivalents | |||||||||||
Other investments | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities, Temporary Equity and Permanent Equity | |||||||||||
Liabilities | |||||||||||
Securities sold, not yet purchased, at fair value | $ | $ | |||||||||
Securities sold under agreements to repurchase | |||||||||||
Payable for derivative contracts, at fair value | |||||||||||
Securities loaned | |||||||||||
Payable to brokers, dealers and clearing organizations | |||||||||||
Payable to customers | |||||||||||
Commission management payable | |||||||||||
Insurance and reinsurance liabilities | |||||||||||
Compensation payable | |||||||||||
Operating lease liabilities | |||||||||||
Notes payable and other debt | |||||||||||
Fees payable | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Consolidated Funds | |||||||||||
Due to related parties | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Total Liabilities | $ | $ | |||||||||
Cowen Inc. Consolidated Statements of Financial Condition (dollars in thousands, except share and per share data) | |||||||||||
As of December 31, 2022 | As of December 31, 2021 | ||||||||||
(continued) | |||||||||||
Commitments and Contingencies (Note 27) | |||||||||||
Redeemable Series A Convertible Preferred stock, par value $ | $ | $ | |||||||||
Permanent Equity | |||||||||||
Class A common stock, par value $ | |||||||||||
Class B common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Less: Class A common stock held in treasury, at cost, | ( | ( | |||||||||
Total Cowen Inc. Stockholders' Equity | |||||||||||
Nonredeemable non-controlling interests | |||||||||||
Total Permanent Equity | $ | $ | |||||||||
Total Liabilities, Redeemable Preferred Stock and Permanent Equity | $ | $ |
Cowen Inc. Consolidated Statements of Operations (in thousands, except per share data) | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Revenues | |||||||||||||||||
Investment banking | $ | $ | $ | ||||||||||||||
Brokerage | |||||||||||||||||
Investment income (loss) | |||||||||||||||||
Securities principal transactions, net | |||||||||||||||||
Portfolio fund principal transactions, net | ( | ||||||||||||||||
Carried interest allocations | ( | ||||||||||||||||
Total investment income (loss) | |||||||||||||||||
Management fees | |||||||||||||||||
Incentive income | |||||||||||||||||
Interest and dividends | |||||||||||||||||
Insurance and reinsurance premiums | |||||||||||||||||
Other revenues, net | |||||||||||||||||
Consolidated Funds | |||||||||||||||||
Principal transactions, net | ( | ( | ( | ||||||||||||||
Interest and dividends | |||||||||||||||||
Other revenues | |||||||||||||||||
Total revenues | |||||||||||||||||
Interest and dividends expense | |||||||||||||||||
Total net revenues | |||||||||||||||||
Expenses | |||||||||||||||||
Employee compensation and benefits | |||||||||||||||||
Brokerage and trade execution costs | |||||||||||||||||
Underwriting expenses | |||||||||||||||||
Professional, advisory and other fees | |||||||||||||||||
Service fees | |||||||||||||||||
Communications | |||||||||||||||||
Occupancy and equipment | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Client services and business development | |||||||||||||||||
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs | ( | ||||||||||||||||
Change in fair value of contingent consideration | ( | ||||||||||||||||
Other expenses | |||||||||||||||||
Consolidated Funds | |||||||||||||||||
Interest and dividends | |||||||||||||||||
Professional, advisory and other fees | |||||||||||||||||
Brokerage and trade execution costs | |||||||||||||||||
Other expenses | |||||||||||||||||
Total expenses | |||||||||||||||||
Other income (loss) | |||||||||||||||||
Net gains (losses) on other investments | |||||||||||||||||
Bargain purchase gain, net of tax | |||||||||||||||||
Gain/(loss) on debt extinguishment | ( | ||||||||||||||||
Total other income (loss) | |||||||||||||||||
Income (loss) before income taxes | |||||||||||||||||
Income tax expense (benefit) | |||||||||||||||||
Net income (loss) | |||||||||||||||||
Cowen Inc. Consolidated Statements of Operations (in thousands, except per share data) | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(continued) | |||||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | ( | ( | |||||||||||||||
Net income (loss) attributable to Cowen Inc. | |||||||||||||||||
Preferred stock dividends | |||||||||||||||||
Net income (loss) attributable to Cowen Inc. common stockholders | $ | $ | $ | ||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted (See Note 26) | |||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | $ | $ | ||||||||||||||
Diluted (See Note 26) | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||||
Foreign currency translation | ( | ||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | ||||||||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | ( | ( | |||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Cowen Inc. | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||
Permanent Equity Shares | (in shares) | ||||||||||||||||||||||
Common Shares Outstanding | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Restricted stock awards issued | |||||||||||||||||||||||
Common stock issuance for purchase of investment | |||||||||||||||||||||||
Common stock issuance for partial settlement of contingent liability from prior acquisition | |||||||||||||||||||||||
Purchase of treasury stock, at cost | ( | ( | ( | ||||||||||||||||||||
Share settlement of convertible notes (See Note 18) | |||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Series A Convertible Preferred Shares Outstanding | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Reclassification of Series A Convertible Preferred Stock (See Note 17) | ( | ||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Permanent Equity | (in dollars) | ||||||||||||||||||||||
Total Cowen Inc. Stockholders' Equity (beginning of period) | $ | $ | $ | ||||||||||||||||||||
Class A Common stock | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Series A Convertible Preferred stock | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Reclassification of Series A Convertible Preferred Stock (See Note 17) | ( | ||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Treasury stock | |||||||||||||||||||||||
Beginning balance | ( | ( | ( | ||||||||||||||||||||
Purchase of treasury stock, at cost | ( | ( | ( | ||||||||||||||||||||
Ending balance | ( | ( | ( | ||||||||||||||||||||
Additional Paid-in Capital | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Reclassification of Series A Convertible Preferred Stock (See Note 17) | ( | ||||||||||||||||||||||
Common stock issuance for purchase of investment | |||||||||||||||||||||||
Common stock issuance for partial settlement of contingent liability from prior acquisition | |||||||||||||||||||||||
Equity portion of convertible note extinguishment (See Note 18) | ( | ||||||||||||||||||||||
Amortization of share based awards | |||||||||||||||||||||||
Ending balance | $ | $ | $ | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||
(in dollars) | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Beginning balance | ( | ( | ( | ||||||||||||||||||||
Foreign currency translation | ( | ||||||||||||||||||||||
Ending balance | $ | $ | ( | $ | ( | ||||||||||||||||||
Retained Earnings/ (Accumulated deficit) | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | ( | |||||||||||||||||||
Cumulative effect of the adoption of the new revenue recognition standard (See Note 2w) | ( | ||||||||||||||||||||||
Net income (loss) attributable to Cowen Inc. | |||||||||||||||||||||||
Preferred stock dividends (See Note 17) | ( | ( | ( | ||||||||||||||||||||
Cash dividends to common stockholders (See Note 18) | ( | ( | ( | ||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Total Cowen Inc. Stockholders' Equity (end of period) | |||||||||||||||||||||||
Nonredeemable Non-controlling Interests | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | ( | ||||||||||||||||||||||
Capital contributions | |||||||||||||||||||||||
Capital distributions | ( | ( | ( | ||||||||||||||||||||
Consolidation of entity | |||||||||||||||||||||||
Deconsolidation of entity | ( | ( | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Total Permanent Equity | $ | $ | $ |
Cowen Inc. Consolidated Statements of Cash Flows (dollars in thousands) | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | $ | $ | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities: | |||||||||||||||||
Bargain purchase gain, net of tax | ( | ||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Amortization of debt issuance costs | |||||||||||||||||
Amortization of debt discount (premium) | |||||||||||||||||
Noncash lease expense | ( | ||||||||||||||||
Asset impairment | |||||||||||||||||
(Gain) / loss on extinguishment of debt | ( | ||||||||||||||||
Share-based awards | |||||||||||||||||
Change in deferred taxes | ( | ( | |||||||||||||||
Net loss (gain) on disposal of fixed assets | |||||||||||||||||
Contingent liability adjustment | ( | ||||||||||||||||
Purchases of securities owned, at fair value | ( | ( | ( | ||||||||||||||
Proceeds from sales of securities owned, at fair value | |||||||||||||||||
Proceeds from sales of securities sold, not yet purchased, at fair value | |||||||||||||||||
Payments to cover securities sold, not yet purchased, at fair value | ( | ( | ( | ||||||||||||||
Proceeds from sales of other investments | |||||||||||||||||
Investment income (loss) principal transactions, net | ( | ( | ( | ||||||||||||||
Consolidated Funds | |||||||||||||||||
Purchases of securities owned, at fair value | ( | ( | |||||||||||||||
Proceeds from sales of securities owned, at fair value | |||||||||||||||||
Purchases of other investments | ( | ||||||||||||||||
Proceeds from other investments | |||||||||||||||||
Investment income (loss) principal transactions, net | |||||||||||||||||
(Increase) decrease in operating assets: | |||||||||||||||||
Securities owned, at fair value, held at broker-dealer | ( | ( | |||||||||||||||
Receivable on derivative contracts, at fair value | ( | ( | |||||||||||||||
Securities borrowed | ( | ||||||||||||||||
Deposits with clearing organizations, brokers and banks | ( | ( | |||||||||||||||
Securities purchased under agreement to resell | ( | ( | |||||||||||||||
Receivable from brokers, dealers and clearing organizations | ( | ( | |||||||||||||||
Receivable from customers, net of allowance | ( | ||||||||||||||||
Fees receivable, net of allowance | ( | ||||||||||||||||
Insurance and reinsurance assets | ( | ( | |||||||||||||||
Due from related parties | ( | ||||||||||||||||
Other assets | ( | ( | |||||||||||||||
Consolidated Funds | |||||||||||||||||
Receivable on derivative contracts, at fair value | ( | ( | |||||||||||||||
Receivable from brokers | ( | ||||||||||||||||
Other assets | |||||||||||||||||
Increase (decrease) in operating liabilities: | |||||||||||||||||
Securities sold, not yet purchased, at fair value, held at broker-dealer | ( | ||||||||||||||||
Securities sold under agreement to repurchase | ( | ||||||||||||||||
Payable for derivative contracts, at fair value | ( | ||||||||||||||||
Securities loaned | ( | ( | |||||||||||||||
Payable to brokers, dealers and clearing organizations | |||||||||||||||||
Payable to customers | |||||||||||||||||
Commission management payable | ( | ||||||||||||||||
Insurance and reinsurance liabilities | ( | ||||||||||||||||
Compensation payable | ( | ||||||||||||||||
Fees payable | ( | ||||||||||||||||
Due to related parties | ( | ( | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | |||||||||||||||
Cowen Inc. Consolidated Statements of Cash Flows (dollars in thousands) | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Consolidated Funds | |||||||||||||||||
Contributions received in advance | |||||||||||||||||
Payable to brokers | |||||||||||||||||
Payable for derivative contracts, at fair value | |||||||||||||||||
Due to related parties | ( | ( | |||||||||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | |||||||||||||||
Net cash provided by / (used in) operating activities | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of other investments | ( | ( | ( | ||||||||||||||
Purchase of business and/or asset acquisition | ( | ( | |||||||||||||||
Cash at deconsolidated entity | ( | ( | |||||||||||||||
Proceeds from sales of other investments | |||||||||||||||||
Purchase of fixed assets and intangibles | ( | ( | ( | ||||||||||||||
Sale of fixed assets | |||||||||||||||||
Net cash provided by / (used in) investing activities | ( | ( | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayments on convertible debt | ( | ( | |||||||||||||||
Deferred debt issuance cost | ( | ( | ( | ||||||||||||||
Borrowings on notes and other debt | |||||||||||||||||
Repayments on notes and other debt | ( | ( | ( | ||||||||||||||
Purchase of treasury stock | ( | ( | ( | ||||||||||||||
Cash dividends paid | ( | ( | ( | ||||||||||||||
Preferred stock dividends paid | ( | ( | ( | ||||||||||||||
Contingent liability payment | ( | ( | ( | ||||||||||||||
Capital contributions by non-controlling interests in operating entities | |||||||||||||||||
Capital distributions to non-controlling interests in operating entities | ( | ( | ( | ||||||||||||||
Consolidated Funds | |||||||||||||||||
Capital contributions by non-controlling interests in Consolidated Funds | |||||||||||||||||
Capital distributions to non-controlling interests in Consolidated Funds | ( | ( | |||||||||||||||
Net cash provided by / (used in) financing activities | ( | ( | |||||||||||||||
Change in cash and cash equivalents | |||||||||||||||||
Cash and cash equivalents, including cash collateral pledged and segregated cash, beginning of period | |||||||||||||||||
Cash and equivalents at end of period: | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash collateral pledged | |||||||||||||||||
Segregated cash | |||||||||||||||||
Cash and cash equivalents, Consolidated Funds | |||||||||||||||||
Cash and cash equivalents, including cash collateral pledged and segregated cash, end of period | $ | $ | $ | ||||||||||||||
Supplemental information | |||||||||||||||||
Cash paid during the year for interest | $ | $ | $ | ||||||||||||||
Cash paid during the year for taxes | $ | $ | $ | ||||||||||||||
Supplemental non-cash information | |||||||||||||||||
Purchase of treasury stock, at cost, through net settlement (See Note 18) | $ | $ | $ | ||||||||||||||
Preferred stock dividends declared (See Note 18) | $ | $ | $ | ||||||||||||||
Cash dividends declared (See Note 18) | $ | $ | $ | ||||||||||||||
Net assets (liabilities) acquired upon acquisition (net of cash) | $ | ( | $ | $ | |||||||||||||
Net increase in non-controlling interests due to consolidation of operating entity | $ | $ | $ | ||||||||||||||
Net decrease in non-controlling interests in Consolidated Fund due to deconsolidation of Consolidated Fund (See Note 2) | $ | $ | $ | ||||||||||||||
Common stock issuance for purchase of investment | $ | $ | $ | ||||||||||||||
Common stock issuance in relation to acquisitions | $ | $ | $ |
From | To | Income Streams | ||||||||||||
Other income - net gains (losses) on securities, derivatives and other investments | Investment income (loss) – securities principal transactions, net | proprietary trading gains and losses generated outside of the Company’s broker-dealer entities | ||||||||||||
Other income - net gains (losses) on securities, derivatives and other investments | Investment income (loss) – portfolio fund principal transactions, net | gains and losses from portfolio funds | ||||||||||||
Other income - net gains (losses) on securities, derivatives and other investments | Investment income (loss) – carried interest allocations | carried interest allocations | ||||||||||||
Other income - net gains (losses) on securities, derivatives and other investments | Other revenue, net | net gains and losses on foreign currency transactions | ||||||||||||
Brokerage revenue | Investment income (loss) – securities principal transactions, net | proprietary trading gains and losses generated by the Company’s broker-dealer entities | ||||||||||||
Other income – Consolidated Funds – net realized and unrealized gains (losses) on investments and other transactions and other income – Consolidated Funds – net realized and unrealized gains (losses) on derivatives | Consolidated Funds – principal transactions, net | proprietary trading gains and losses generated from the Consolidated Funds | ||||||||||||
Other income – Consolidated Funds – net gains (losses) on foreign currency transactions | Consolidated Funds – other revenue | net gains and losses on foreign currency transactions generated by the Consolidated Funds |
Asset | Depreciable Lives | Depreciation and/or Amortization Method | |||||||||
Telecommunication and computer equipment | Straight-line | ||||||||||
Computer software | Straight-line | ||||||||||
Furniture and fixtures | Straight-line | ||||||||||
Leasehold improvements | Term of Lease | Straight-line | |||||||||
Finance lease right-of-use asset | Term of Lease | Straight-line |
(dollars in thousands) | |||||
Cash and cash equivalents | $ | ||||
Cash collateral pledged | |||||
Premiums receivable from cedants | |||||
Claims recoverable from reinsurers | |||||
Insurance and reinsurance assets | |||||
Other assets | |||||
Premiums and other costs payable to reinsurers | ( | ||||
Claims liabilities | ( | ||||
Insurance and reinsurance liabilities | ( | ||||
Accounts payable, accrued expenses and other liabilities | ( | ||||
Total net assets acquired | $ |
(dollars in thousands) | |||||
Cash | $ | ||||
Operating lease right-of-use assets | |||||
Fixed assets | |||||
Intangible assets | |||||
Other assets | |||||
Operating lease liabilities | ( | ||||
Other liabilities | ( | ||||
Total net identifiable assets acquired and liabilities assumed | |||||
Goodwill | |||||
Total estimated purchase price | $ |
Estimated intangible assets acquired | Estimated average remaining useful lives | ||||||||||
(dollars in thousands) | (in years) | ||||||||||
Intangible asset class | |||||||||||
Trade name | $ | ||||||||||
Customer relationships | |||||||||||
Backlog | |||||||||||
Total intangible assets | $ |
(dollars in thousands) | |||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
$ |
(dollars in thousands) | |||||
Cash | $ | ||||
Securities owned, at fair value | |||||
Fixed assets | |||||
Intangible assets | |||||
Other assets | |||||
Compensation payable | ( | ||||
Other liabilities | ( | ||||
Total net identifiable assets acquired and liabilities assumed | |||||
Bargain purchase gain | ( | ||||
Total estimated purchase price | $ |
(dollars in thousands) | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
$ |
(dollars in thousands) | |||||
Fixed assets | $ | ||||
Operating lease right-of-use assets | |||||
Intangible assets | |||||
Other assets | |||||
Compensation payable | ( | ||||
Operating lease liabilities | ( | ||||
Total net identifiable assets acquired and liabilities assumed | |||||
Goodwill | |||||
Total estimated purchase price | $ |
Estimated intangible assets acquired | Estimated average remaining useful lives | ||||||||||
(dollars in thousands) | (in years) | ||||||||||
Intangible asset class | |||||||||||
Trade name | $ | ||||||||||
Customer relationships | |||||||||||
Non-compete agreements | |||||||||||
Total intangible assets | $ | ||||||||||
(dollars in thousands) | |||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
$ |
Location | Amount | Maturity | ||||||||||||
(dollars in thousands) | ||||||||||||||
New York | $ | December 2023 | ||||||||||||
Boston | November 2023 | |||||||||||||
San Francisco | November 2023 | |||||||||||||
$ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Common stock | $ | $ | |||||||||
Preferred stock | |||||||||||
Warrants and rights | |||||||||||
Government bonds | |||||||||||
Corporate bonds | |||||||||||
Convertible bonds | |||||||||||
Term loan (*) | |||||||||||
Trade claims (*) | |||||||||||
Private investments | |||||||||||
$ | $ |
Receivable on derivative contracts | As of December 31, | ||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Number of contracts / Notional Value | Fair value | Number of contracts / Notional Value | Fair value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Currency forwards | $ | $ | $ | $ | |||||||||||||||||||
Equity swaps | $ | $ | |||||||||||||||||||||
Options (a) | |||||||||||||||||||||||
Interest rate swap (c) | $ | $ | |||||||||||||||||||||
Netting - swaps (b) | ( | ( | |||||||||||||||||||||
$ | $ |
Payable for derivative contracts | As of December 31, | ||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Number of contracts / Notional Value | Fair value | Number of contracts / Notional Value | Fair value | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Futures | $ | $ | $ | $ | |||||||||||||||||||
Currency forwards | $ | $ | |||||||||||||||||||||
Equity swaps | $ | $ | |||||||||||||||||||||
Interest rate swaps (c) | $ | $ | |||||||||||||||||||||
Options (a) | |||||||||||||||||||||||
Netting - swap (b) | ( | ( | |||||||||||||||||||||
$ | $ |
Gross amounts offset on the Consolidated Statements of Financial Condition (a) | Net amounts included on the Consolidated Statements of Financial Condition | Gross amounts not offset in the Consolidated Statements of Financial Condition | |||||||||||||||||||||||||||||||||
Gross amounts recognized | Financial instruments (a) | Cash Collateral pledged (a) | Net amounts | ||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
Receivable on derivative contracts, at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Payable for derivative contracts, at fair value | |||||||||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||
Receivable on derivative contracts, at fair value | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Payable for derivative contracts, at fair value |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Portfolio funds, at fair value (1) | $ | $ | |||||||||
Carried interest (2) | |||||||||||
Equity method investments (3) | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
HealthCare Royalty Partners LP (a)(*) | $ | $ | |||||||||
HealthCare Royalty Partners II LP (a)(*) | |||||||||||
Eclipse Ventures Fund I, L.P. (b) | |||||||||||
Eclipse Ventures Fund II, L.P. (b) | |||||||||||
Eclipse Continuity Fund I, L.P. (b) | |||||||||||
Starboard Value and Opportunity Fund LP (c)(*) | |||||||||||
Starboard Value and Opportunity Fund Ltd (c) (*) | |||||||||||
Lagunita Biosciences, LLC (d) | |||||||||||
Starboard Leaders Fund LP (e)(*) | |||||||||||
Formation8 Partners Fund I, L.P. (f) | |||||||||||
BDC Fund I Coinvest 1, L.P. (g) | |||||||||||
Difesa Partners, LP (h) | |||||||||||
Cowen Sustainable Investments I LP (i)(*) | |||||||||||
Cowen Healthcare Investments II LP (i) (*) | |||||||||||
Cowen Healthcare Investments III LP (i)(*) | |||||||||||
Cowen Healthcare Investments IV LP (i)(*) | |||||||||||
Eclipse SPV I, LP (j)(*) | |||||||||||
TriArtisan ES Partners LLC (k)(*) | |||||||||||
TriArtisan PFC Partners LLC (l)(*) | |||||||||||
Ramius Merger Fund LLC (m)(*) | |||||||||||
Gaingels 10X Capital Diversity Fund I, LP (n)(*) | |||||||||||
HCRX Holdings, L.P. (o)(*) | |||||||||||
Other private investment (p)(*) | |||||||||||
Other affiliated funds (q)(*) | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Cowen Healthcare Investments II LP | $ | $ | |||||||||
Cowen Healthcare Investments III LP | |||||||||||
Cowen Sustainable Investments I LP | |||||||||||
Cowen Sustainable Investments Offshore I LP | |||||||||||
CSI I Prodigy Co-Investment LP | |||||||||||
CSI PRTA Co- Investment LP | |||||||||||
TriArtisan TGIF Partners LLC | |||||||||||
TriArtisan ES Partners LLC | |||||||||||
TriArtisan PFC Partners LLC | |||||||||||
TriArtisan SBE Partners LLC | |||||||||||
Ramius Multi-Strategy Fund LP | |||||||||||
Ramius Merger Fund LLC | |||||||||||
RCG IO Renergys Sarl | |||||||||||
Other affiliated funds | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Starboard Value LP | $ | $ | |||||||||
HealthCare Royalty GP III, LLC | |||||||||||
HCR Canary Fund GP, LLC | |||||||||||
HealthCare Royalty GP IV, LLC | |||||||||||
RCG Longview Debt Fund IV Management, LLC | |||||||||||
HCR Overflow Fund GP, LLC | |||||||||||
HCRP MGS Account Management, LLC | |||||||||||
HCR Stafford Fund GP, LLC | |||||||||||
HCR Potomac Fund, L.P. | |||||||||||
HCRX Master GP | |||||||||||
Other | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Common stock | $ | $ | |||||||||
Corporate bonds | |||||||||||
Preferred stock | |||||||||||
Warrants and rights | |||||||||||
$ | $ |
Gross amounts not offset on the Consolidated Statements of Financial Condition | |||||||||||||||||||||||||||||||||||||||||
Gross amounts recognized, net of allowance | 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, 2022 | |||||||||||||||||||||||||||||||||||||||||
Securities borrowed | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Securities loaned | |||||||||||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | |||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Securities borrowed | |||||||||||||||||||||||||||||||||||||||||
Securities loaned | |||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | $ | $ | $ | $ | $ | $ |
Open and Overnight | Up to 30 days | 31 - 90 days | Greater than 90 days | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||||||||
Securities loaned | |||||||||||||||||||||||||||||
Common stock | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Securities purchased under agreements to resell | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||
Securities loaned | |||||||||||||||||||||||||||||
Common stock | |||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||||||||
Common stock | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Investments of Enterprise LP | $ | $ | |||||||||
$ | $ |
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, 2022 | Polysign, Inc | Preferred - Series B and C | United States of America | Financial Technology | % | $ | |||||||||||||||||||||||||||||
As of December 31, 2021 | Linkem S.p.A. | Equity and warrants | Italy | Wireless Broadband | % | $ |
Assets at Fair Value as of December 31, 2022 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (c) | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Operating Entities | |||||||||||||||||||||||||||||
Securities owned, at fair value | |||||||||||||||||||||||||||||
Government bonds | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Preferred stock | — | ||||||||||||||||||||||||||||
Common stock | — | ||||||||||||||||||||||||||||
Convertible bonds | — | ||||||||||||||||||||||||||||
Corporate bonds | — | ||||||||||||||||||||||||||||
Trade claims | — | ||||||||||||||||||||||||||||
Term loan | — | ||||||||||||||||||||||||||||
Warrants and rights | — | ||||||||||||||||||||||||||||
Private investments | — | ||||||||||||||||||||||||||||
Receivable on derivative contracts, at fair value | |||||||||||||||||||||||||||||
Currency forwards | — | ||||||||||||||||||||||||||||
Equity swaps | ( | ||||||||||||||||||||||||||||
Options | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Portfolio funds measured at net asset value (a) | |||||||||||||||||||||||||||||
Consolidated Funds' portfolio funds measured at net asset value (a) | |||||||||||||||||||||||||||||
Carried interest (a) | |||||||||||||||||||||||||||||
Equity method investments (a) | |||||||||||||||||||||||||||||
Total investments | $ |
Liabilities at Fair Value as of December 31, 2022 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (c) | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Operating Entities | |||||||||||||||||||||||||||||
Securities sold, not yet purchased, at fair value | |||||||||||||||||||||||||||||
Common stock | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Corporate bonds | — | ||||||||||||||||||||||||||||
Preferred stock | — | ||||||||||||||||||||||||||||
Warrants and rights | — | ||||||||||||||||||||||||||||
Payable for derivative contracts, at fair value | |||||||||||||||||||||||||||||
Currency forwards | — | ||||||||||||||||||||||||||||
Equity swaps | ( | ||||||||||||||||||||||||||||
Interest rate swaps | — | ||||||||||||||||||||||||||||
Options | — | ||||||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||||||||||||||||||||
Contingent consideration liability (b) | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | ( | $ |
Assets at Fair Value as of December 31, 2021 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (c) | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Operating Entities | |||||||||||||||||||||||||||||
Securities owned, at fair value | |||||||||||||||||||||||||||||
Government bonds | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Preferred stock | — | ||||||||||||||||||||||||||||
Common stock | — | ||||||||||||||||||||||||||||
Convertible bonds | — | ||||||||||||||||||||||||||||
Corporate bonds | — | ||||||||||||||||||||||||||||
Trade claims | — | ||||||||||||||||||||||||||||
Term loan | — | ||||||||||||||||||||||||||||
Private investments | — | ||||||||||||||||||||||||||||
Warrants and rights | — | ||||||||||||||||||||||||||||
Receivable on derivative contracts, at fair value | |||||||||||||||||||||||||||||
Currency forwards | — | ||||||||||||||||||||||||||||
Equity swaps | ( | ||||||||||||||||||||||||||||
Options | — | ||||||||||||||||||||||||||||
Interest rate swap | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Portfolio funds measured at net asset value (a) | |||||||||||||||||||||||||||||
Consolidated Funds' portfolio funds measured at net asset value (a) | |||||||||||||||||||||||||||||
Carried interest (a) | |||||||||||||||||||||||||||||
Equity method investments (a) | |||||||||||||||||||||||||||||
Total investments | $ |
Liabilities at Fair Value as of December 31, 2021 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (c) | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Operating Entities | |||||||||||||||||||||||||||||
Securities sold, not yet purchased, at fair value | |||||||||||||||||||||||||||||
Common stock | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Corporate bonds | — | ||||||||||||||||||||||||||||
Preferred stock | — | ||||||||||||||||||||||||||||
Warrants and rights | — | ||||||||||||||||||||||||||||
Payable for derivative contracts, at fair value | |||||||||||||||||||||||||||||
Futures | — | ||||||||||||||||||||||||||||
Currency forwards | — | ||||||||||||||||||||||||||||
Equity swaps | ( | ||||||||||||||||||||||||||||
Options | — | ||||||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||||||||||||||||||||
Contingent consideration liability (b) | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | Transfers in | Transfers out | Purchases/(covers) | (Sales)/shorts | Realized and Unrealized gains/losses | Balance at December 31, 2022 | Change in unrealized gains/losses relating to instruments still held (1) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Operating Entities | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Common stock | (c) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Convertible bonds | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bond | (c) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Options, asset | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Options, liability | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Equity swap | |||||||||||||||||||||||||||||||||||||||||||||||
Term loan | |||||||||||||||||||||||||||||||||||||||||||||||
Warrants and rights | ( | (a)(c) | ( | ||||||||||||||||||||||||||||||||||||||||||||
Trade claims | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Private investments | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration liability | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | Transfers in | Transfers out | Purchases/(covers) | (Sales)/shorts | Realized and Unrealized gains/losses | Balance at December 31, 2021 | Change in unrealized gains/losses relating to instruments still held (1) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Operating Entities | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | $ | $ | $ | ( | (a) | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||
Common stock | (b) | ( | (a)(d) | ( | |||||||||||||||||||||||||||||||||||||||||||
Convertible bonds | ( | (d) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Corporate Bond, asset | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Options, asset | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Options, liability | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Warrants and rights | (b) (c) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Term Loan | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Trade claim | ( | (c) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Private investments | (c) | ( | |||||||||||||||||||||||||||||||||||||||||||||
Corporate bond, liability | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Government bonds, liability | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration liability | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Funds | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock | ( | (b) | |||||||||||||||||||||||||||||||||||||||||||||
Warrants and rights | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||
Fair Value December 31, 2022 | Valuation Techniques | Unobservable Inputs | Range | Weighted Average | |||||||||||||||||||||||||
Level 3 Assets | (dollars in thousands) | ||||||||||||||||||||||||||||
Common and preferred stocks | $ | Discounted cash flows Guideline companies | Discount rate EBITDA Market Multiples | ||||||||||||||||||||||||||
Options | Discounted cash flows Guideline companies Option pricing model | Discount rate EBITDA Market Multiples Volatility | |||||||||||||||||||||||||||
Trade claims | Discounted cash flows | Discount rate | |||||||||||||||||||||||||||
Warrants and rights | Discounted cash flows Guideline companies Option pricing model | Discount rate EBITDA Market Multiples Volatility | |||||||||||||||||||||||||||
Corporate, convertible bonds and term loan | Discounted cash flows Guideline companies | Discount rate EBITDA Market Multiples | |||||||||||||||||||||||||||
Other level 3 assets (a) | |||||||||||||||||||||||||||||
Total level 3 assets | $ | ||||||||||||||||||||||||||||
Level 3 Liabilities | |||||||||||||||||||||||||||||
Options | Option pricing model | Discount rate Volatility | |||||||||||||||||||||||||||
Contingent consideration liability | Discounted cash flows Monte Carlo simulation | Discount rate Volatility | |||||||||||||||||||||||||||
Total level 3 liabilities | $ |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||
Fair Value at December 31, 2021 | Valuation Techniques | Unobservable Inputs | Range | Weighted Average | |||||||||||||||||||||||||
Level 3 Assets | (dollars in thousands) | ||||||||||||||||||||||||||||
Common and preferred stocks | $ | Discounted cash flows Guideline companies | Discount rate EBITDA Market Multiples | ||||||||||||||||||||||||||
Trade claims | Discounted cash flows | Discount rate | |||||||||||||||||||||||||||
Warrants and rights | Discounted cash flows Guideline companies Option pricing model | Discount rate EBITDA Market Multiples Volatility | |||||||||||||||||||||||||||
Options | Discounted cash flows Guideline companies | Discount rate EBITDA Market Multiples | |||||||||||||||||||||||||||
Other level 3 assets (a) | |||||||||||||||||||||||||||||
Total level 3 assets | $ | ||||||||||||||||||||||||||||
Level 3 Liabilities | |||||||||||||||||||||||||||||
Options | Option pricing model | Volatility | |||||||||||||||||||||||||||
Contingent consideration liability | Discounted cash flows Monte Carlo simulation | Discount rate Volatility | |||||||||||||||||||||||||||
Total level 3 liabilities | $ |
December 31, 2022 | December 31, 2021 | Fair Value Hierarchy | |||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Operating companies | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | Level 1 | ||||||||||||||||||||||||
Cash collateral pledged | Level 2 | ||||||||||||||||||||||||||||
Segregated cash | Level 1 | ||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Level 2 | ||||||||||||||||||||||||||||
Securities borrowed | Level 2 | ||||||||||||||||||||||||||||
Loans receivable | (b) | (b) | Level 3 | ||||||||||||||||||||||||||
Consolidated Funds | |||||||||||||||||||||||||||||
Cash and cash equivalents | Level 1 | ||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Level 2 | ||||||||||||||||||||||||||||
Securities loaned | Level 2 | ||||||||||||||||||||||||||||
Notes payable and other debt | (c) | (a) | (c) | (a) | Level 2 |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Broker-dealers | $ | $ | |||||||||
Securities failed to deliver | |||||||||||
Clearing organizations | |||||||||||
Securities borrowed/loaned interest receivable | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Broker-dealers | $ | $ | |||||||||
Securities failed to receive | |||||||||||
Clearing organizations | |||||||||||
Securities borrowed/loaned interest payable | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Telecommunication and computer equipment | $ | $ | |||||||||
Computer software | |||||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Finance lease right-of-use asset (See Note 16) | |||||||||||
Other | |||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||
$ | $ | ||||||||||
Investment Bank | Cowen Investment Management | Total | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Beginning balance - December 31, 2020 | |||||||||||||||||
Goodwill | $ | $ | |||||||||||||||
Accumulated impairment charges | ( | ( | ( | ||||||||||||||
Net | |||||||||||||||||
Activity: 2021 | |||||||||||||||||
Recognized goodwill (See note 3) | |||||||||||||||||
Goodwill impairment charges | |||||||||||||||||
Beginning balance: December 31, 2021 | |||||||||||||||||
Goodwill | |||||||||||||||||
Accumulated impairment charges | ( | ( | ( | ||||||||||||||
Net | |||||||||||||||||
Activity: 2022 | |||||||||||||||||
Recognized goodwill (See note 3) | |||||||||||||||||
Goodwill impairment charges | |||||||||||||||||
Ending balance: December 31, 2022 | |||||||||||||||||
Goodwill | |||||||||||||||||
Accumulated impairment charges | ( | ( | ( | ||||||||||||||
Net | $ | $ | $ |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||||||||
Backlog | ( | ( | |||||||||||||||||||||||||||||||||||||||
Non-compete agreements and covenants with limiting conditions acquired | ( | ( | |||||||||||||||||||||||||||||||||||||||
Intellectual property | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquired software | ( | ||||||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
(dollars in thousands) | |||||
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
$ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Prepaid expenses | $ | $ | |||||||||
Tax receivables | |||||||||||
Interest and dividends receivable | |||||||||||
Receivable on sale of investment | |||||||||||
Other (b) | |||||||||||
$ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Contingent consideration payable (see Note 3) | $ | $ | |||||||||
Interest and dividends payable | |||||||||||
Professional fees payable | |||||||||||
Fees payable | |||||||||||
Accrued tax liabilities | |||||||||||
Deferred income | |||||||||||
SEC fees payable | |||||||||||
Technology costs and software contracts payable | |||||||||||
Litigation reserve | |||||||||||
Accrued expenses and accounts payable | |||||||||||
$ | $ | ||||||||||
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Notes payable | $ | $ | |||||||||
Term loan | |||||||||||
Other notes payable | |||||||||||
$ | $ |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Lease cost | |||||||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of finance lease right-of-use assets | $ | $ | $ | ||||||||||||||
Interest on lease liabilities | $ | $ | $ | ||||||||||||||
Other information | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows from finance leases | $ | $ | $ | ||||||||||||||
Financing cash flows from finance leases | $ | $ | $ | ||||||||||||||
Weighted average remaining lease term - operating leases (in years) | |||||||||||||||||
Weighted average discount rate - operating leases | % | % | % |
Notes Payable | Term Loan | Other Notes Payable | Finance Lease Obligation | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
2023 | $ | $ | $ | $ | |||||||||||||||||||
2024 | |||||||||||||||||||||||
2025 | |||||||||||||||||||||||
2026 | |||||||||||||||||||||||
2027 | |||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||
Less (a) | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ |
Treasury Stock Shares | Cost (dollars in thousands) | Average Cost per Share | |||||||||||||||
Balance outstanding at December 31, 2021 | $ | $ | |||||||||||||||
Shares purchased for minimum tax withholding under the 2010 and 2020 Equity Plans or other similar transactions | |||||||||||||||||
Purchase of treasury stock | |||||||||||||||||
Balance outstanding at December 31, 2022 | $ | $ |
As of December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Redeemable non-controlling interests in consolidated subsidiaries and investment funds | |||||||||||||||||
Consolidated Funds | |||||||||||||||||
Beginning balance | $ | $ | $ | ||||||||||||||
Capital contributions | |||||||||||||||||
Capital distributions | ( | ||||||||||||||||
Deconsolidation of entity | ( | ||||||||||||||||
Income (loss) attributable to non-controlling interests | ( | ||||||||||||||||
Ending balance | |||||||||||||||||
Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds | |||||||||||||||||
Operating companies | |||||||||||||||||
Beginning balance | $ | $ | |||||||||||||||
Capital contributions | |||||||||||||||||
Capital distributions | ( | ( | ( | ||||||||||||||
Consolidation of entity | |||||||||||||||||
Income (loss) attributable to non-controlling interests | |||||||||||||||||
Ending balance | |||||||||||||||||
Consolidated Funds | |||||||||||||||||
Beginning balance | |||||||||||||||||
Capital contributions | |||||||||||||||||
Capital distributions | ( | ( | |||||||||||||||
Deconsolidation of entity | ( | ( | |||||||||||||||
Income (loss) attributable to non-controlling interests | ( | ( | |||||||||||||||
Ending balance | |||||||||||||||||
Total Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds | $ | $ | $ | ||||||||||||||
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | |||||||||||
Foreign currency translation | ( | ||||||||||||||||
Ending balance | $ | $ | ( | $ | ( |
Year Ended December 31, | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Revenue from contracts with customers | Operating Company | |||||||||||||||||||||||||
Investment banking | ||||||||||||||||||||||||||
Underwriting fees | $ | $ | $ | |||||||||||||||||||||||
Strategic/financial advisory fees | ||||||||||||||||||||||||||
Placement and sales agent fees | ||||||||||||||||||||||||||
Expense reimbursements from clients | ||||||||||||||||||||||||||
Total investment banking revenue | ||||||||||||||||||||||||||
Brokerage | ||||||||||||||||||||||||||
Commissions | ||||||||||||||||||||||||||
Trade conversion revenue | ||||||||||||||||||||||||||
Equity research fees | ||||||||||||||||||||||||||
Total brokerage revenue from customers | ||||||||||||||||||||||||||
Management fees | ||||||||||||||||||||||||||
Incentive income | ||||||||||||||||||||||||||
Total revenue from contracts with customers - Op Co | $ | $ | $ | |||||||||||||||||||||||
Asset Company | ||||||||||||||||||||||||||
Management fees | ||||||||||||||||||||||||||
Total revenue from contracts with customers - Asset Co | ||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Paid claims | |||||||||||||||||
Insurance (net of Outward Reinsurance) | $ | $ | $ | ||||||||||||||
Inward Reinsurance | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Change in claims outstanding and claims IBNR | |||||||||||||||||
Insurance (net of Outward Reinsurance) | $ | $ | $ | ||||||||||||||
Inward Reinsurance | ( | ||||||||||||||||
Total | $ | ( | $ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
Insurance and reinsurance assets | |||||||||||
Reinsurance recoverable on paid claims | $ | $ | |||||||||
Deferred acquisition costs | |||||||||||
Cash advances held by cedants | |||||||||||
Reinsurance recoverable on claims reserves | |||||||||||
Total | $ | $ | |||||||||
Insurance and reinsurance liabilities | |||||||||||
Reinsurance payables on paid claims | $ | $ | |||||||||
Unearned Premium reserve | |||||||||||
Loss reserves (incurred claims and IBNR) | |||||||||||
Total | $ | $ |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
Insurance and reinsurance assets | |||||||||||
Beginning balance at January 1 | $ | $ | |||||||||
Increase/(Decreases) reinsurance recoverables | ( | ||||||||||
Total | $ | $ | |||||||||
Incurred related to: | |||||||||||
Current Years | $ | $ | |||||||||
Prior Years | ( | ||||||||||
Total | $ | ( | $ | ||||||||
Paid related to: | |||||||||||
Current Years | $ | $ | |||||||||
Prior Years | |||||||||||
Total | $ | $ | |||||||||
Acquired insurance and reinsurance liabilities net of reinsurance assets and liabilities | $ | 237,524 | $ | 1,009 | |||||||
Balance at December 31 | $ | $ | |||||||||
Increase/(Decreases) reinsurance recoverables | $ | ||||||||||
Ending balance at December 31 | $ | $ |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | ||||||||||||||||||||||
Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units | Weighted-Average Grant Date Fair Value | Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Beginning balance outstanding | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Canceled | |||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Ending balance outstanding | $ | $ |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Current tax expense/(benefit) | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State and local | |||||||||||||||||
Foreign | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Deferred tax expense/(benefit) | |||||||||||||||||
Federal | $ | ( | $ | ( | $ | ||||||||||||
State and local | ( | ( | |||||||||||||||
Foreign | ( | ( | |||||||||||||||
Total | ( | ( | |||||||||||||||
Total tax expense/(benefit) | $ | $ | $ | ||||||||||||||
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Pre-tax net income at U.S. statutory rate | % | % | % | ||||||||||||||
Nondeductible expenses | |||||||||||||||||
Change in valuation allowance | ( | ||||||||||||||||
Tax credits | ( | ||||||||||||||||
Stock compensation | ( | ( | ( | ||||||||||||||
State and foreign tax | ( | ||||||||||||||||
Reversal of income attributable to non-controlling interests | ( | ||||||||||||||||
Other, net | ( | ( | |||||||||||||||
Total | % | % | % |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets, net of valuation allowance | |||||||||||
Net operating loss | $ | $ | |||||||||
Deferred compensation | |||||||||||
Intangible assets | |||||||||||
Bad debt reserves | |||||||||||
Section 174 capitalization | |||||||||||
Tax credits | |||||||||||
Lease liability | |||||||||||
Other | |||||||||||
Total deferred tax assets | |||||||||||
Valuation allowance | ( | ( | |||||||||
Deferred tax assets, net of valuation allowance | |||||||||||
Deferred tax liabilities | |||||||||||
Right-of-use on certain assets | ( | ( | |||||||||
Goodwill | ( | ( | |||||||||
Unrealized gains on investments | ( | ( | |||||||||
Other | ( | ( | |||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Deferred tax assets/(liabilities), net | $ | $ |
Jurisdiction: | Federal | New York State | New York City | Hong Kong | |||||||||||||||||||
Net operating loss (in millions) | $ | $ | $ | $ | |||||||||||||||||||
Year of expiration | 2030 | 2034 | 2034 | Indefinite |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Beginning balance at January 1 | $ | $ | |||||||||
Settlement of positions | ( | ||||||||||
Increases/(Decreases) due to prior year positions | ( | ||||||||||
Ending balance at December 31 | $ | $ |
Jurisdiction: | Federal | New York State | New York City | United Kingdom | Luxembourg | Malta | Germany | Switzerland | |||||||||||||||||||||||||||||||||||||||
Tax Year | 2018 | 2019 | 2019 | 2019 | 2018 | 2017 | 2018 | 2018 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars and share data in thousands, except per share data) | |||||||||||||||||
Net income (loss) | $ | $ | $ | ||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | ( | ( | |||||||||||||||
Net income (loss) attributable to Cowen Inc. | |||||||||||||||||
Preferred stock dividends | |||||||||||||||||
Net income (loss) attributable to Cowen Inc. common stockholders for basic earnings per share | $ | ||||||||||||||||
Change in fair value of contingently issuable shares | |||||||||||||||||
Net income (loss) attributable to Cowen Inc. common stockholders for diluted earnings per share | $ | $ | $ | ||||||||||||||
Shares for basic and diluted calculations: | |||||||||||||||||
Weighted average shares used in basic computation | |||||||||||||||||
Performance based restricted stock | |||||||||||||||||
Contingently issuable common stock in connection with acquisitions | |||||||||||||||||
December 2022 Convertible Notes | |||||||||||||||||
Series A Convertible Preferred Stock | |||||||||||||||||
Restricted stock | |||||||||||||||||
Weighted average shares used in diluted computation | |||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | $ | $ | ||||||||||||||
Diluted | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Lease cost | |||||||||||||||||
Operating lease cost | $ | $ | $ | ||||||||||||||
Short-term lease cost | |||||||||||||||||
Variable lease cost | |||||||||||||||||
Sublease income | ( | ( | ( | ||||||||||||||
Total lease costs | $ | $ | $ |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Other information | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Weighted average remaining lease term - operating leases (in years) | |||||||||||
Weighted average discount rate - operating leases | % | % |
Equipment Leases (operating) | Real Estate and Other Facility Rental (a) (b) (c) | ||||||||||
(dollars in thousands) | |||||||||||
2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Thereafter | |||||||||||
Total operating leases | |||||||||||
Less discount | |||||||||||
Less short-term leases | |||||||||||
Total lease liability | $ | $ |
Service Payments | ||||||||
(dollars in thousands) | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total service payment commitments | $ |
Entity | Unfunded Commitments | Commitment Term | ||||||||||||
(dollars in thousands) | ||||||||||||||
HealthCare Royalty Partners funds (a) | $ | |||||||||||||
Eclipse Ventures Fund I, L.P. | $ | |||||||||||||
Eclipse Fund II, L.P. | $ | |||||||||||||
Eclipse Continuity Fund I, L.P. | $ | |||||||||||||
Cowen Healthcare Investments III LP | $ | |||||||||||||
Cowen Healthcare Investments IV LP | $ | |||||||||||||
Cowen Sustainable Investments I LP | $ |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Economic Income | |||||||||||||||||
Op Co | $ | $ | $ | ||||||||||||||
Asset Co | ( | ( | ( | ||||||||||||||
Adjustments applied to arrive at Net Income (loss) | |||||||||||||||||
Income attributable to non-controlling interest | ( | ( | |||||||||||||||
Preferred stock dividends | |||||||||||||||||
Amortization of (discount)/premium on convertible debt | ( | ( | ( | ||||||||||||||
Acquisition related amounts | ( | ( | ( | ||||||||||||||
Contingent liability adjustments | ( | ( | |||||||||||||||
Debt extinguishment gain (loss) and accelerated debt costs | ( | ||||||||||||||||
Bargain purchase gain | |||||||||||||||||
Goodwill and other impairment | ( | ( | |||||||||||||||
US GAAP Income tax expense | ( | ( | ( | ||||||||||||||
Economic income tax expense | |||||||||||||||||
Net income (loss) | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Op Co | |||||||||||||||||
Non-Interest Revenue | $ | $ | |||||||||||||||
Interest Revenue | |||||||||||||||||
Interest Revenue, Consolidated funds | |||||||||||||||||
Total Revenues | |||||||||||||||||
Interest Expense | |||||||||||||||||
Interest Expense, Consolidated funds | |||||||||||||||||
Depreciation and Amortization | |||||||||||||||||
Income Taxes | |||||||||||||||||
Asset Co | |||||||||||||||||
Non-Interest Revenue | ( | ||||||||||||||||
Interest Revenue | |||||||||||||||||
Interest Revenue, Consolidated funds | |||||||||||||||||
Total Revenues | ( | ||||||||||||||||
Interest Expense | |||||||||||||||||
Interest Expense, Consolidated funds | |||||||||||||||||
Depreciation and Amortization | |||||||||||||||||
Income Taxes | ( | ( | |||||||||||||||
Total Segment | |||||||||||||||||
Non-Interest Revenue * | |||||||||||||||||
Interest Revenue | |||||||||||||||||
Interest Revenue, Consolidated funds | |||||||||||||||||
Total Revenues | $ | $ | |||||||||||||||
Interest and Dividend Expense (includes dividend expense of $ | |||||||||||||||||
Interest and Dividend Expense, Consolidated funds (includes dividend expense of $ | |||||||||||||||||
Depreciation and Amortization | |||||||||||||||||
Income Taxes |
Subsidiary | Net Capital | Minimum Net Capital Requirement | Excess Net Capital | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Cowen and Company | $ | $ | $ | |||||||||||||||||
ATM Execution | $ | $ | $ | |||||||||||||||||
Westminster | $ | $ | $ | |||||||||||||||||
Cowen Financial Products | $ | $ | $ | |||||||||||||||||
Cowen International Ltd (a) | $ | $ | $ | |||||||||||||||||
Cowen Execution Ltd (a) | $ | $ | $ | |||||||||||||||||
Cowen Asia (a) | $ | $ | $ |
Lender | Contractual Amount | Available Amount | Maturity Date | Description | ||||||||||||||||||||||
Pledge Lines | (dollars in thousands) | |||||||||||||||||||||||||
BMO Harris Bank | $ | $ | None | Unsecured Broker Loan | ||||||||||||||||||||||
BMO Harris Bank | None | Secured Tri-Party Pledge Facility | ||||||||||||||||||||||||
BMO Harris Bank | None | Secured Depository Trust Company Pledge Line | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Spike Line | ||||||||||||||||||||||||||
BMO Harris Bank Canadian Imperial Bank of Commerce, in syndication | May 19, 2023 | Unsecured committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements | ||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||
Morgan Stanley | March 24, 2026 | Unsecured Corporate Revolver | ||||||||||||||||||||||||
Total Credit Lines | $ | $ |
COWEN INC. | |||||||||||||||||||||||
By: | /s/ JEFFREY M. SOLOMON | ||||||||||||||||||||||
Name: | Jeffrey M. Solomon | ||||||||||||||||||||||
Date: | February 28, 2023 | Title: | Chair and Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ JEFFREY M. SOLOMON | Chair and Chief Executive Officer (Principal Executive Officer) | |||||||||||||
Jeffrey M. Solomon | February 28, 2023 | |||||||||||||
/s/ STEPHEN A. LASOTA | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |||||||||||||
Stephen A. Lasota | February 28, 2023 | |||||||||||||
/s/ BRETT H. BARTH | ||||||||||||||
Brett H. Barth | Director | February 28, 2023 | ||||||||||||
/s/ KATHERINE E. DIETZE | ||||||||||||||
Katherine E. Dietze | Director | February 28, 2023 | ||||||||||||
/s/ GREGG A. GONSALVES | ||||||||||||||
Gregg A. Gonsalves | Director | February 28, 2023 | ||||||||||||
/s/ LORENCE KIM | ||||||||||||||
Lorence Kim | Director | February 28, 2023 | ||||||||||||
/s/ STEVEN KOTLER | ||||||||||||||
Steven Kotler | Director | February 28, 2023 | ||||||||||||
/s/ LAWRENCE E. LEIBOWITZ | ||||||||||||||
Lawrence E. Leibowitz | Director | February 28, 2023 | ||||||||||||
/s/ MARGARET L. POSTER | ||||||||||||||
Margaret L. Poster | Director | February 28, 2023 | ||||||||||||
/s/ DOUGLAS A. REDIKER | ||||||||||||||
Douglas A. Rediker | Director | February 28, 2023 |
(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, |
(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 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 Indenture and that all conditions precedent in the Indenture relating to such transaction have been satisfied. |
(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, 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; or | |||||||
(8) | impair the right to institute suit for the enforcement of any payment on or with respect to such Notes. |
(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 the 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 the Indenture; or | |||||||
(12) | to conform the 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. |
(1) | default for 30 days in the payment when due of interest on the 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 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, to comply with any of the other covenants or agreements in the 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, |
(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 $35.0 million, 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. |
(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 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 do not give the Trustee a direction that is inconsistent with the request. |
• | will be discharged from any and all obligations in respect of the Notes, except for certain obligations set forth in the Indenture that survive such discharge (“legal defeasance”); or | ||||||||||
• | may terminate their obligations under certain restrictive covenants of the 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”); |
(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 the 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 the Indenture with respect to the 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. |
(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 the 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 the 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 the Indenture relating to the satisfaction and discharge of the Indenture with respect to such Notes have been complied with. |
• | 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. |
(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. |
(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. |
(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). |
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 – all titles less senior than Director All other titles (less senior than Director) not otherwise listed on this chart | 2 months | 1 month |
Name of Subsidiary | Jurisdiction | |||||||
8995 Collins LLC | Delaware | |||||||
ACN Co-Investment LLC | Delaware | |||||||
Algorithmic Trading Management, LLC | Delaware | |||||||
ATM Execution LLC | New York | |||||||
BNS Co-Investment LLC | Delaware | |||||||
CA Co-Investment LLC | Delaware | |||||||
CA2 Co-Investment LLC | Delaware | |||||||
CB Co-Investment LLC | Delaware | |||||||
CDIG DP Investment LLC | Delaware | |||||||
CDIG RD Investment LLC | Delaware | |||||||
CDIG DL Investment LLC | Delaware | |||||||
CDIG Management Co. LLC | Delaware | |||||||
CDIG NF Investment LLC | Delaware | |||||||
CDIG PC Investment LLC | Delaware | |||||||
CH Co-Investment LLC, Delaware | Delaware | |||||||
CHI Advisors LLC | Delaware | |||||||
CHI EF II LP | Delaware | |||||||
CHI EF III LP | Delaware | |||||||
CHI EF IV LP | Delaware | |||||||
CHI IV Public Investments LP, | Delaware | |||||||
Cowen AC Corp. | Delaware | |||||||
Cowen AC II Corp. | Delaware | |||||||
Cowen AC III Corp. | Delaware | |||||||
Cowen Alternative Investments, LLC | Delaware | |||||||
Cowen and Company (Asia) Limited | Hong Kong | |||||||
Cowen and Company, LLC | Delaware | |||||||
Cowen Asia Limited | Hong Kong | |||||||
Cowen Auto LLC | Delaware | |||||||
Cowen Capital Partners II, LLC | Delaware | |||||||
Cowen CV Acquisition LLC | Delaware | |||||||
Cowen C3 Co-Investment LLC | Delaware | |||||||
Cowen DAVE LLC | Delaware | |||||||
Cowen Digital Asset Investment Company LLC | Delaware | |||||||
Cowen Digital Holdings LLC | Delaware | |||||||
Cowen Digital LLC | Delaware | |||||||
Cowen Europe AG | Switzerland | |||||||
Cowen Execution Holdco LLC | Delaware | |||||||
Cowen Execution Services Limited | England | |||||||
Cowen Finance Company LLC | Delaware | |||||||
Cowen Finance Holdings LLC | Delaware | |||||||
Cowen Financial Products LLC | Delaware | |||||||
Cowen Financial Technology LLC | Delaware | |||||||
Cowen Germany AG | Germany | |||||||
Cowen Healthcare Investments II GP LLC | Delaware | |||||||
Cowen Healthcare Investments II LP | Delaware |
Name of Subsidiary | Jurisdiction | |||||||
Cowen Healthcare Investments III GP LLC | Delaware | |||||||
Cowen Healthcare Investments III LP | Delaware | |||||||
Cowen Healthcare Investments IV GP LLC | Delaware | |||||||
Cowen Healthcare Investments IV LP, | Delaware | |||||||
Cowen Holdings, Inc. | Delaware | |||||||
Cowen International Limited | England and Wales | |||||||
Cowen Investment Advisors LLC (dba Ramius Advisors, LLC) | Delaware | |||||||
Cowen Investments II LLC | Delaware | |||||||
Cowen Investment Management LLC | Delaware | |||||||
Cowen Investments LLC | Delaware | |||||||
Cowen Israel Ltd. | Israel | |||||||
Cowen Lagunita Investment LLC | Delaware | |||||||
Cowen Latitude Capital Group, LLC | Delaware | |||||||
Cowen Malta Holdings Limited | Malta | |||||||
Cowen OJ Investment LLC | Delaware | |||||||
Cowen Overseas Investment LP | Cayman Islands | |||||||
Cowen PB Holdings LLC | Delaware | |||||||
Cowen PC Acquisition LLC | Delaware | |||||||
Cowen Prime Advisors LLC | Delaware | |||||||
Cowen Reinsurance S.A. (f/k/a Hollenfels Re SA) | Luxembourg | |||||||
Cowen Services Company, LLC | Delaware | |||||||
Cowen Special Investments LLC | Delaware | |||||||
Cowen Structured Holdings Inc. | Delaware | |||||||
Cowen Structured Holdings LLC | Delaware | |||||||
Cowen Sustainable Advisors LLC | Delaware | |||||||
Cowen Sustainable Investments Offshore I LP | Cayman Islands | |||||||
Cowen Switzerland AG | Switzerland | |||||||
Cowen Trading Strategies LLC | Delaware | |||||||
CSI Crown Co-Investment LP | Delaware | |||||||
CSI I Bubbles Holdco LP | Delaware | |||||||
CSI I Crown Holdco LP, | Delaware | |||||||
CSI GP I LLC | Delaware | |||||||
CSI I Coral Blue Co-Investment I LP | Delaware | |||||||
CSI I Golden Holdco LP | Delaware | |||||||
CSI I Intermediate (Cayman) LP | Cayman Islands | |||||||
CSI I Master Fund B LP | Cayman Islands | |||||||
CSI Intermediate (US) LP | Delaware | |||||||
CSI Master Fund C LP | Cayman Islands | |||||||
CSI Master Fund LP | Cayman Islands | |||||||
CSI Prodigy Co-Investment LP | Delaware | |||||||
CSI I Prodigy Holdco LP | Delaware | |||||||
CSI PRTA Co-Investment LP | Delaware | |||||||
DCL Co-Investment LLC | Delaware | |||||||
ES Partners Holdco LP | Delaware |
Name of Subsidiary | Jurisdiction | |||||||
ES Management Holder LLC | Delaware | |||||||
FA Co-Investment LLC | Delaware | |||||||
FL Co-Investment LLC | Delaware | |||||||
FS Co-Investment LLC | Delaware | |||||||
HCAP Co-Investment LLC | Delaware | |||||||
Healthcare Royalty Management, LLC | Delaware | |||||||
Healthcare Royalty Partners IV, L.P. | Delaware | |||||||
ION Co-Investment LLC | Delaware | |||||||
Kelvin Re Limited | Guernsey | |||||||
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 | |||||||
MC 2021 Co-Investment LLC (f/k/a Cowen MC Co-Investment LLC) | Delaware | |||||||
MC 2022 Co-Investment LLC | Delaware | |||||||
Medallion Finance Group LLC | Delaware | |||||||
Medallion Finance Holdings LLC LLC (n/k/a TriARtisan SOF GP LLC) | Delaware | |||||||
Morish Insurance Company | New York | |||||||
NCCII Co-Invest LLC | Delaware | |||||||
NF Co-Investment LLC | Delaware | |||||||
October LLC | Delaware | |||||||
PA 2 Co-Investment LLC | Delaware | |||||||
PA Co-Investment LLC | Delaware | |||||||
Ramius Enterprise Investments Gibraltar Ltd | Gibraltar | |||||||
Ramius Enterprise Luxembourg Holdco II SARL | Luxembourg | |||||||
Ramius Enterprise Luxembourg Holdco SARL | Luxembourg | |||||||
Ramius Enterprise LP | Delaware | |||||||
Ramius Enterprise Master Fund Ltd | Cayman Islands | |||||||
Ramius Merger Fund LLC | Delaware | |||||||
Ramius Optimum Investments LLC | Delaware | |||||||
Ramius UK Limited | England | |||||||
Ramius V&O Holdings LLC | Delaware | |||||||
RCG Insurance Company | New York | |||||||
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 | |||||||
RCL Linkem LLC | Delaware | |||||||
RCL Linkem II LLC | Delaware | |||||||
RD Co-Investment LLC | Delaware |
Name of Subsidiary | Jurisdiction | |||||||
RHR Co-Investment LLC | Delaware | |||||||
RLS Co-Investment LLC | Delaware | |||||||
Silver Strike Capital Inc. | British Columbia | |||||||
Surfside Lender LLC | Delaware | |||||||
Tramz Loan Partners, LLC | Delaware | |||||||
TriArtisan Capital Advisors LLC | Delaware | |||||||
TriArtisan Dionysus MM LLC | Delaware | |||||||
TriArtisan Dionysus Partners LLC | Delaware | |||||||
TriArtisan ES Partners LLC | Delaware | |||||||
TriArtisan ES Partners II LP | Delaware | |||||||
TriArtisan Orlando Partners LLC | Delaware | |||||||
TriArtisan PFC Partners LLC | Delaware | |||||||
TriArtisan SBE MM LLC (f/k/a TriArtisan Mint MM LLC | Delaware | |||||||
TriArtisan SBE Partners LLC (f/k/a Triartisan Mint Partners LLC | Delaware | |||||||
TriArtisan SOF GP LLC | Delaware | |||||||
TriArtisan Special Opportunities Fund I LP | Delaware | |||||||
TriArtisan TGIF Partners LLC | Delaware | |||||||
VBS Financial LLC | Delaware | |||||||
VBS Financial 5 LLC | Delaware | |||||||
VSN Co-Investment LLC | Delaware | |||||||
Westminster Research Associates LLC | Delaware |
Date: | February 28, 2023 | /s/ JEFFREY M. SOLOMON | ||||||||||||
Name: Jeffrey M. Solomon Title: Chief Executive Officer (principal executive officer) |
Date: | February 28, 2023 | /s/ STEPHEN A. LASOTA | ||||||||||||
Name: Stephen A. Lasota Title: Chief Financial Officer (principal financial officer and principal accounting officer) |
Date: | February 28, 2023 | /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) |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 65,855 | $ 303,991 | $ 207,064 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | 3 | 5 | (2) |
Total other comprehensive income (loss), net of tax | 3 | 5 | (2) |
Comprehensive income (loss) | 65,858 | 303,996 | 207,062 |
Less: Comprehensive income (loss) attributable to non-controlling interests | (10,603) | 8,380 | (9,299) |
Comprehensive income (loss) attributable to Cowen Inc. | $ 76,461 | $ 295,616 | $ 216,361 |
Organization and Business |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Cowen Inc., a Delaware corporation formed in 2009, is a diversified financial services firm that, together with its consolidated subsidiaries (collectively, "Cowen" or the "Company"), provides investment banking, research, sales and trading, prime brokerage, global clearing, securities financing, commission management services and investment management through its two business segments: the Operating Company ("Op Co") and the Asset Company ("Asset Co"). The Op Co segment consists of four divisions: the Investment Banking division, the Markets division, the Research division and the Cowen Investment Management ("CIM") division. The Company refers to the Investment Banking division, the Markets division and the Research division combined as its investment banking businesses. Op Co's investment banking businesses offer advisory and global capital markets origination, domain knowledge-driven research, sales and trading platforms for institutional investors, global clearing, commission management services and also a comprehensive suite of prime brokerage service. Sectors covered by Op Co's investment banking business include healthcare, technology, media and telecommunications, consumer, industrials, tech-enabled and business services, and energy. Op Co’s CIM division includes advisers to investment funds (including private equity structures and privately placed hedge funds) and registered funds. The Company has also invested capital in its insurance and reinsurance businesses. The Asset Co segment consists of certain of the Company's private investments, private real estate investments and other legacy investment strategies. The focus of Asset Co is to drive future monetization of the invested capital of the segment. On August 1, 2022, the Company, The Toronto-Dominion Bank, a Canadian chartered bank (“TD”), and Crimson Holdings Acquisition Co., a Delaware corporation and an indirect wholly owned subsidiary of TD (“Merger Sub”), entered into an Agreement and Plan of Merger pursuant to which, upon the terms and subject to the conditions set forth therein, Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of TD.
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Significant Accounting Policies |
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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 the Accounting Standards Codification (the "Accounting Standards" or "ASC") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying 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. 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. During the first quarter of 2021, the Company changed the presentation of certain income streams on its consolidated statements of operations by moving the income streams from Other income - net gains (losses) on securities, derivatives and other investments to Revenues. Additionally, the Company moved proprietary trading gains and losses generated by the Company’s broker-dealer entities from Brokerage revenue to Investment income (loss) – securities principal transactions, net. The specified presentation changes included the following:
The Company believes that these presentation changes provide a better representation of the Company’s operating results as it is used by management to monitor the Company’s financial performance and is consistent with industry practice. The changes in presentation have no impact on net income and prior period amounts have been recast to reflect such changes in presentation. b. Principles of consolidation The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a Voting Operating Entity ("VOE") or a Variable Interest Entity ("VIE") under US GAAP. Voting Operating Entities—VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns. Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units. Variable Interest Entities—VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE. The VIEs the Company has invested in act as investment managers and/or investment companies that may be managed by the Company. The VIEs are financed through their operations and/or loan agreements with the Company. In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company consolidates these investment funds when its variable interest is potentially significant to the entity (see Note 6 for additional disclosures on VIEs). As of December 31, 2022 and 2021, the total assets of the consolidated VIEs were $289.3 million and $304.1 million, respectively, and total liabilities of the consolidated VIEs were $4.2 million and $9.8 million, respectively. The Company consolidates investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2022, the Company consolidated Ramius Enterprise LP (“Enterprise LP”), an investment fund. At December 31, 2021, the Company consolidated the following investment funds: Enterprise LP and Cowen Private Investments LP ("Cowen Private"). During the first quarter of 2022, the Company deconsolidated Cowen Private as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP ("CSI I LP") due to the Company's ownership being diluted through a capital equalization event. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying consolidated statements of operations. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary. Other—If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for its investment in such entity (primarily consisting of securities of such entity which are purchased and held principally for the purpose of selling them in the near term and classified as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within Investment income (loss) - Securities principal transactions, net or Investment income (loss) - portfolio fund investment income (loss) in the accompanying 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 Consolidated Funds - Principal transactions, net in the accompanying consolidated statements of operations. 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. Certain portfolio fund investments qualify as equity method investments and are investment companies that apply specialized industry accounting. In applying equity method accounting guidance, the Company retains the specialized accounting of the investees and reports its investments on the consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Investment Income - portfolio fund principal transactions, net in the accompanying consolidated statements of operations. In addition, the Company's broker-dealer subsidiaries, Cowen and Company, LLC ("Cowen and Company"), Westminster Research Associates LLC ("Westminster"), Cowen Execution Services Limited ("Cowen Execution Ltd"), ATM Execution LLC ("ATM Execution"), Cowen and Company (Asia) Limited ("Cowen Asia"), and Cowen International Limited ("Cowen International Ltd"), apply the specialized industry accounting for brokers and dealers in securities, which the Company retains upon consolidation. c. Use of estimates The preparation of the accompanying consolidated financial statements in conformity with US GAAP requires the management of the Company to make estimates and assumptions that affect the fair value of securities and other investments, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, as well as the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. d. 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 ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”) prescribes the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update guidance, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer). The Company applies the guidance in ASC 326 to securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, underwriting fees, strategic/financial advisory fees and placement and sales agent fees, management fees and incentive fees receivable). The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company’s expectation of the collectability in determining the allowance for credit losses. The Company’s expectation is that the credit risk associated with fees and other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards. For securities borrowed, the Company applies a practical expedient to measure the allowance for credit losses based on the fair value of the collateral. If the fair value of the collateral held exceeds the amortized cost of the borrowing and the borrower is expected to continue to replenish the collateral as needed, the Company will not recognize an allowance. If the fair value of collateral is less than amortized cost and the borrower is expected to continue to replenish the collateral as needed, the Company applies the CECL model, utilizing a probability and loss given default methodology, only to the extent of the shortfall between the fair value of the collateral and amortized cost. The credit loss expense related to the allowance for credit losses as well as any recoveries of amounts previously charged is reflected in other expenses in the accompanying consolidated statements of operations. f. Valuation of investments and derivative contracts and other investments US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investment is based on their proportional rights of the underlying portfolio company and are valued using market quotations when readily available. When market quotations are unavailable or deemed not representative, the level 3 investments are valued using a market approach, an income approach, or a combination of both approaches. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future cash flows to a single present value. In following these approaches, the significant inputs and assumptions include the timing and expected amount of cash flows, the appropriateness of discount rates used, the premium ascribed to a controlling financial interest, selected equity volatilities 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, are classified as level 2 when their inputs can be corroborated by market data. OTC derivatives, such as swaps and options, with significant inputs that cannot be corroborated by readily available or observable market data are classified as level 3. Other investments—Other investments consist primarily of portfolio funds, carried interest and equity method investments, which are valued as follows: i. Portfolio funds—Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. ii. Carried Interest—For the private equity and debt fund products the Company offers, the Company is allocated incentive income by the investment funds based on the extent by which the investment funds' performance exceeds predetermined thresholds. Carried interest allocations are generally structured from a legal standpoint as an allocation of capital in the Company’s capital account. The Company accounts for carried interest allocations by applying an equity ownership model. Accordingly, the Company accrues performance allocations quarterly based on the fair value of the underlying investments assuming hypothetical liquidation at book value. iii. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company applies the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying consolidated statements of operations. See Notes 6 and 7 for further information regarding the Company's investments, including equity method investments and fair value measurements. Accounts payable, accrued expenses and other liabilities—Accounts payable, accrued expenses and other liabilities include contingent consideration liabilities related to terms of the purchase agreements of the Company's previous acquisitions. In each instance the Company is required to pay the sellers of such entities a portion of future net income and/or revenues of the acquired business if certain targets are met through December 24, 2024. For each acquisition the Company has estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits related to the ongoing operations of these acquired businesses. The Company updates its estimates and assumptions each reporting period and the associated change in fair value is shown in the accompanying consolidated statements of operations. g. Offsetting of derivative contracts To reduce credit exposures on derivatives, the Company may enter into master netting agreements with counterparties that permit the Company the right, in the event of a default by a counterparty, to offset the counterparty’s rights and obligations under the agreement and to liquidate and offset any collateral against any net amount owed by the counterparty. Derivatives are reported on a net-by-counterparty basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) in the consolidated statements of financial condition when a legal right of offset exists under an enforceable netting agreement. Additionally, derivatives are reported net of cash collateral received and posted under enforceable credit support agreements in the consolidated statements of financial condition, provided a legal right of offset exists. See Note 6 for further information about offsetting of derivative financial instruments. h. Due from 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 related parties on the accompanying consolidated statements of financial condition. i. Receivable from and payable to brokers Receivable from brokers, dealers, and clearing organizations includes amounts receivable for securities failed to deliver by the Company to a purchaser by the settlement date, amounts receivable from broker-dealers and clearing organizations, commissions receivable from broker-dealers, and interest receivable from securities financing arrangements and are reported net of an allowance for credit losses. Payable to brokers, dealers and clearing organizations includes amounts payable for securities failed to receive by the Company from a seller by the settlement date, amounts payable to broker-dealers and clearing organizations for unsettled trades, interest payable for securities financing arrangements, and payables of deposits held in proprietary accounts of brokers and dealers. Receivables and payables with brokers, dealers and clearing organizations arising from unsettled regular-way transactions are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held with multiple financial institutions. j. Receivable from and payable to customers Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settlement-date basis and prepaid research, net of allowance for credit losses. For prepaid research, a prepaid research asset is established for research and related services disbursed in advance of anticipated client commission volumes. Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settlement-date basis on the statement of financial condition, and other miscellaneous customer payables. Securities owned by customers, including those that collateralize margin, are not reflected as assets of the Company on the statement of financial condition. The Company holds these securities with the intention of settlement against customer orders and are held as collateral for customer receivables. k. Fees receivable Fees receivable primarily relate to securities transactions and are reported net of an allowance for credit losses. Fees receivable also include amounts due to the Company for underwriting fees, strategic/financial advisory fees and placement and sales agent fees. Additionally, management and incentive fees due to the Company are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 2w). l. 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. See Note 2e for further information. Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying 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. m. Securities purchased under agreement to resell and securities sold under agreements to repurchase Securities purchased under agreement to resell and securities sold under agreements to repurchase ("repurchase agreements") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. A repo is a transaction in which a firm buys or sells financial instruments from/to a counterparty, typically in exchange for cash, and simultaneously enters into an agreement to resell or repurchase the same or substantially the same financial instruments to/from such counterparty at a stated price plus accrued interest at a future date. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced approximates or is greater than the market value of securities purchased or sold in the transaction. The Company typically enters into repurchase transactions with counterparties that prefer repurchase transactions to securities borrowed and securities loaned transactions. The Company has executed master repurchase agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repurchase for matched book purposes. The Company monitors the market value of repurchases on a daily basis, with additional collateral obtained or returned, as necessary. Repurchases may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company mitigates its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional collateral or returning excess collateral in accordance with the netting provisions available in the master repurchase contracts in place with the counterparties. Interest paid is recorded in interest and dividends expense in accordance with US GAAP on repurchase agreement transactions on an accrual basis in the accompanying consolidated statements of operations. n. 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.
o. Goodwill and intangible assets Goodwill Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit. In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. See Note 12 for the impact of the goodwill impairment test. Intangible assets Intangible assets with finite lives are amortized over their estimated average useful lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying consolidated statements of operations if the sum of the estimated undiscounted cash flows from the use or disposition of the asset or asset group is less than the corresponding carrying value. The Company continually monitors the estimated average useful lives of existing intangible assets. p. Debt Long-term debt is carried at the principal amount borrowed net of any unamortized discount/premium. The discount or premium 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. q. 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. r. Temporary Equity Temporary equity consists of Redeemable 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock"). The Company has irrevocably elected to cash settle $1,000.00 of each conversion of any share of the Series A Convertible Preferred Stock. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company has classified the Series A Convertible Preferred Stock preferred stock in temporary equity. s. Non-controlling interests in consolidated subsidiaries Non-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities. When non-controlling interest holders do not have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as a component of permanent equity. Ownership which has been classified in permanent equity are non-controlling interests for which the holder does not have the unilateral right to redeem its ownership interests. t. 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. u. 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. v. Right-of-use assets and lease liabilities The Company accounts for leases in accordance with ASC Topic 842, Leases ("ASC 842"). The guidance requires the recognition of right-of-use assets and lease liabilities on the accompanying consolidated statements of financial condition. 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. On an ongoing basis the Company performs an analysis of new/modified 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. 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 non-lease 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 non-lease 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 16 for information on the Company's finance leases. w. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company follows a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, the Company includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgments are required in the application of the five-step model including: when determining whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The Company's principal sources of revenue are generated within two segments. The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, investment income (loss) and incentive income. Investment income is excluded from ASC Topic 606. The Asset Co segment generates revenue through investment income (loss), management fees and incentive income. Revenue from contracts with customers includes management fees, incentive income, investment banking revenue and brokerage services revenue excluding principal transactions. ASC Topic 606 does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The following is a description of principal activities, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 28. Investment banking The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from public and private small- and mid-capitalization companies within the Company's sectors. Investment banking revenue consists of underwriting fees, strategic/financial advisory fees, expenses reimbursed from clients and placement and sales agent fees. •Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible securities offerings. Fee revenue relating to underwriting commitments is recorded at the point in time when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; (iii) the Company has been informed of the number of securities that it has been allotted; and (iv) the issuer obtains control and benefits of the offering; which generally occurs on trade date. Underwriting fees are recognized gross of transaction-related expenses, and such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction. •Strategic/financial advisory fees. The Company's strategic advisory revenue includes success fees earned in connection with advising companies, principally in mergers, acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. A significant portion of the Company's advisory revenue (i.e., success-related advisory fees) is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is constrained until satisfaction of the performance obligation. The Company records strategic advisory revenues at the point in time, gross of related expenses, when the services for the transactions are completed or the contract is canceled under the terms of each assignment or engagement. •Placement and sales agent fees. The Company earns placement agency fees and sales agent commissions in non-underwritten transactions, such as private placements of loans and debt and equity securities, including private investment in public equity transactions ("PIPEs"), and as sales agent in at-the-market offerings of equity securities. The Company records placement revenues (which may be in cash and/or securities) at the point in time when the services for the transactions are completed under the terms of each assignment or engagement. The Company records sales agent commissions on a trade-date basis. •Expense reimbursements from clients. Investment banking revenue includes expense reimbursements for transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction. Expense reimbursements associated with investment banking engagements are recognized in revenue at the point in time when the Company is contractually entitled to reimbursement. The related expenses are presented gross within their respective expense category in the accompanying consolidated statements of operations. Brokerage Brokerage revenue consists of commissions, principal transactions, equity research fees and trade conversion revenue. •Commissions. Commission revenue includes fees from executing and clearing client transactions and commission sharing arrangements. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services on a standalone basis, are recognized at a point in time on trade-date. Commission revenues are generally paid on settlement date and the Company records a receivable between trade-date and payment on settlement date. The Company permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as "soft dollar arrangements". The Company also offers institutional clients the ability to allocate a portion of their gross commissions incurred on trades executed with various brokers to pay for research products and other services provided by third parties by entering into commission sharing arrangements. The Company acts as an agent in the soft dollar and commission sharing arrangements as the customer controls the use of the soft dollars and directs payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues and recorded on trade date. Commissions on soft dollar brokerage are recorded net of the related expenditures. The costs of commission sharing arrangements are recorded for each eligible trade and shown net of commission revenue. •Equity research fees. Equity research fees are paid to the Company for providing access to equity research. In the US, revenue is recognized once an arrangement exists, access to research has been provided and the customer has benefited from the research. As part of Markets in Financial Instruments Directive ("MiFID II"), the international customers of the Company's broker-dealers have executed equity research contracts with its clients. The contracts either contain a fixed price for providing access to research or a price at the discretion of the customer with a contract minimum. Fixed equity research fees are recognized over the contract period as the customer is benefiting from the research throughout the contract term. When the equity research fees are based on the customer’s discretion with a contract minimum, the Company recognizes the contract minimum over the life of the contract as the customer benefits from the research provided and adjusts the revenue when the Company can estimate the amount of equity research fees over the contract minimum. Additionally, the Company earns variable consideration for attending client conferences and events. Revenue is recognized when the Company attends a client conference or event. •Trade conversion revenue. Trade conversion revenue includes fees earned from converting foreign securities into an American Depository Receipt ("ADR") and fees earned from converting an ADR into foreign securities on behalf of customers, and margins earned from facilitating customer foreign exchange transactions. Trade conversion revenue is recognized on a trade-date basis. Investment Income •Securities principal transactions, net. Principal transactions, net includes realized gains and losses from transactions in financial instruments and unrealized gains and losses from ongoing changes in the fair value of the Company’s positions. Principal transactions, net generated by the Company's broker-dealers include net trading gains and losses from the Company's market-making activities in over-the-counter equity and fixed income securities, trading of convertible securities, and trading gains and losses on inventory and other Company positions, which include securities previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a short duration. With respects to the Company's proprietary trading strategies, purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Investment income - Securities principal transactions, net, in the accompanying consolidated statements of operations. •Portfolio Fund principal transactions, net. Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate NAV per share (or its equivalent). The practical expedient permits an entity holding certain investments that calculates NAV per share or its equivalent for which the fair value is not readily determinable and is considered an investment company under ASC 946 to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Investment income – portfolio fund principal transactions, net in the accompanying consolidated statements of operations. •Carried interest allocations. The Company is allocated carried interest based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's private equity investment funds. For the private equity fund products the Company offers, the carried interest earned is typically up to 30% of the distributions made to investors after return of their contributed capital and generally a preferred return. The Company recognizes carried interest allocated to the Company under an equity ownership model as investment income - carried interest allocations in the accompanying consolidated statements of operations accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures. Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within Investment Income - Carried interest allocations in the accompanying consolidated statements of operations along with the allocations proportionate to the Company's ownership interests in the investment funds. Generally, carried interest is recognized after the investor has received a full return of its invested capital, plus a preferred return. However, for certain private equity structures, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These private equity structures are generally subject to a potential clawback of these incentive fees upon the liquidation of the private equity structure if the investor has not received a full return of its invested capital plus the preferred return thereon. Management fees The Company earns management fees from investment funds and certain managed accounts for which it serves as the investment manager; such fees earned are typically based on committed or invested capital for private equity funds and net asset value for hedge funds. The Company has determined that the primary drivers of management fees are committed and invested capital relating to private equity funds and assets under management relating to hedge funds. The management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Management fees are generally paid on a quarterly basis and are prorated for capital inflows (or commitments) and redemptions (or distributions) and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. While some investors may have separately negotiated fees, in general the management fees are as follows: •Private equity funds. Management fees for the Company's private equity funds are generally charged at an annual rate of 1% to 2% of committed capital during the investment period (as defined in the relevant partnership agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 1% to 2% of the net asset value or the aggregate cost basis of the unrealized investments held by the private equity funds. For certain other private equity funds (and managed accounts), the management fees range from 0.2% to 1% and there is no adjustment based on the investment period. Management fees for the Company's private equity funds are generally paid on a quarterly basis. •Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of net asset value. Management fees are generally calculated monthly at the end of each month. Incentive income The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's investment funds and managed accounts. The incentive income is charged to the investment funds in accordance with their corresponding investment management or partnership agreement. For the hedge funds the Company offers, incentive income earned is typically up to 20% (in certain cases on performance in excess of a benchmark) of the net profits earned for the full year that are attributable to each fee-paying investor. The Company recognizes incentive income charged to the Company's hedge funds based on the net profits of the hedge funds. The Company recognizes such incentive income when the fees are no longer subject to reversal or are crystallized. For certain hedge funds, the incentive fee crystallizes annually when the high-water mark for such hedge funds is reset, which delays recognition of the incentive fee until year end. In periods following a period of a net loss attributable to an investor, the Company generally does not earn incentive income on any future profits attributable to such investor until the accumulated net loss from prior periods is recovered, an arrangement commonly referred to as a "high-water mark." Generally, incentive income is earned after the investor has received a full return of its invested capital, plus a preferred return. Interest and dividends Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from securities finance activities and securities held by the Company for purposes of investing capital, investments held by its Consolidated Funds and its brokerage balances. Interest is recognized in accordance with US GAAP and market convention for the imputation of interest of the host financial instrument. Interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date. Insurance and reinsurance Premiums for insurance and reinsurance contracts are earned over the coverage period. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly basis. For each of its contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with US GAAP. If the Company determines that a contract does not expose it to a reasonable possibility of a significant loss from insurance risk, the Company records the contract under the deposit method of accounting with any net amount receivable reflected as an asset in other assets, and any net amount payable reflected as a liability within accounts payable, accrued expenses and other liabilities on the 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. All of the items above are reported net of any Outward Reinsurance (see Note 22), which is determined as the portion of the Company’s premiums, liabilities for losses and loss adjustment expenses, provisions for losses and loss adjustment expenses, and costs of acquiring new policies that are ceded to providers of such Outward Reinsurance pursuant to their terms and conditions. These ceded amounts are calculated based on the same principles outlined above. Interest and dividends expense Interest and dividends expense relates primarily to securities finance activities, trading activity with respect to the Company's investments and interest expense on debt. x. 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 23 for further information regarding the Company's share-based compensation plans. y. Income taxes The Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company evaluates its deferred tax assets for recoverability considering negative and positive evidence, including its historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. The Company records a valuation allowance against its deferred tax assets to bring them to a level that it is more likely than not to be realized. 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, state and local tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand-alone state and local tax returns. The Company also has subsidiaries that are residents in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These foreign subsidiaries are subject to taxation in their respective resident countries, and the Company is responsible for, and therefore reports, all taxes incurred by these subsidiaries in the consolidated statements of operations. The foreign jurisdictions where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Malta, Guernsey, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong. z. 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. aa. Recent pronouncements Recently issued In August 2020, the FASB issued guidance simplifying an issuer’s accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features; separate accounting is still required in certain cases. The guidance also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The guidance requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of a public business entity’s convertible debt at the instrument level. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2021 and interim periods within those fiscal years with early adoption permitted. The Company adopted the guidance as of January 1, 2022 under the modified retrospective method. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. See Note 26 for the calculation of diluted earnings per share. In August 2018, the FASB issued guidance prescribing targeted improvements to financial services – insurance industry accounting guidance for long-duration contracts. The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred acquisition costs for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. For all entities, the guidance is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company is evaluating the impact of adopting the new guidance and has determined that the impact is not expected to be material to the consolidated financial statements. In June 2022, the FASB issued guidance that amends ASC 820 to clarify that when evaluating the fair value of an equity security a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. The guidance further prohibits an entity from recognizing a contractual sale restriction as a separate unit of account and requires specific disclosures related to the fair value; the nature and duration of the restrictions; and circumstances that could cause the restrictions to lapse on such an equity security. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2023 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance.
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Acquisitions | Acquisition Kelvin Re Limited On June 1, 2022 (the "Kelvin Acquisition Date"), the Company completed its acquisition of Kelvin Re Limited (“Kelvin”) by acquiring all of the issued and outstanding ordinary shares in Kelvin from CS IRIS A Fund Limited (the "Kelvin Acquisition"). Kelvin is a general reinsurance company incorporated and domiciled in Guernsey whose principal activity was the provision of property and natural catastrophe reinsurance business. In December 2020, Kelvin ceased underwriting new business and has been operating as a run-off entity. Cowen acquired Kelvin to manage the outstanding reinsurance claims arising from its existing portfolio. (See Note 22). In accordance with US GAAP and SEC Regulation S-X Rule 11-01(d), the Kelvin Acquisition is accounted for as an asset acquisition because the assets and liabilities of Kelvin do not meet the definition of a business, and accordingly the assets and liabilities acquired as part of the Kelvin Acquisition were measured based on their cost allocated to assets on a relative fair value basis, which included transaction costs of $1.6 million. The aggregate purchase price of the Kelvin Acquisition after transaction costs is $221.0 million. The purchase price was paid in cash by Kelvin on behalf of Cowen. The results of Kelvin are integrated within the Company's insurance business as of the Kelvin Acquisition Date, which is reported in the Company’s Operating Company segment. The table below summarizes the net tangible and intangible assets acquired and liabilities assumed as of June 1, 2022:
Portico On December 16, 2021 (the "Portico Acquisition Date"), the Company, through its indirect wholly owned subsidiary, Cowen PC Acquisition LLC, completed its previously announced acquisition (the "Portico Acquisition") of Portico Capital Advisors and certain assets and liabilities of its European operations (“Portico”). Portico was privately-held and was a leading mergers and acquisitions advisory firm focused on the verticalized software, data, and analytics sectors. The Portico Acquisition was completed for a combination of 75% cash and 25% stock. In the aggregate, the purchase price, specified assets acquired and liabilities assumed were not significant and the near-term impact to the Company and its consolidated results of operations and cash flows was not significant. The Portico Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. Accordingly, the Portico assets purchased and liabilities assumed were recorded on the Company's books at fair value as of the Portico Acquisition Date, and Portico's post-acquisition results were included in the Company's consolidated financial statements. Additionally, following the acquisition, the business acquired is included in the Investment Bank reporting unit within the Operating Company segment. The aggregate estimated purchase price of the Portico Acquisition was $112.0 million. On the Portico Acquisition Date the Company paid upfront consideration of $91.3 million subject to certain net working capital and other customary adjustments, with additional maximum contingent consideration of $58.0 million that will become payable dependent on the achievement of certain milestones by Portico in each of the first three years (four years if certain conditions are met) following the Portico Acquisition Date subject to a $19.3 million maximum in each year and a $58.0 million cumulative maximum, with the opportunity for additional consideration payable in each of the fourth and fifth years following the Portico Acquisition Date upon the achievement of certain additional milestones. The Company estimated the contingent consideration at $20.7 million using a 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 $4.4 million, as a reserve for any future claims against the sellers of Portico. The upfront consideration and contingent consideration, consists of a combination of 75% cash and 25% shares of the Company's Class A common stock and the potential additional consideration payable in each of the fourth and fifth years following the Portico Acquisition Date would be paid in cash. Shares issued on the Portico Acquisition Date of 586,061 were valued based on the 20-trading day volume-weighted average price per share of $37.11 as of December 13, 2021. 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 Portico Acquisition Date. Any shares of Class A common stock issued in connection with any such contingent payments will be valued based on the 20-trading day volume-weighted average price per share as of the date that in two business days immediately prior to the date on which such shares are to be issued. In addition, Portico and the Company have established a retention bonus pool, for Portico employees that remain employed at the end of each year there is a contingent payment which will be settled in a combination of 75% cash and 25% shares of the Company's Class A common stock based on Portico meeting certain economic performance hurdles. Part of the award is time based (60%) and part is performance and time based (40%). The time based portion of the award is accrued within compensation payable in the accompanying consolidated statements of financial condition utilizing a graded vesting attribution method over the three year vesting period. The total consideration payable under the time based portion of the award is $6 million in aggregate, and will not exceed $3.6 million in any annual period if all service conditions are met. The performance based portion of the award is accrued within compensation payable in the accompanying consolidated statements of financial condition based on a Monte Carlo simulation of the probability that the performance hurdles are met for each discrete year. Updates to the accrual will be made at each reporting period. The total consideration payable will not exceed $4 million if each of the economic performance hurdles are met. The Company is recognizing the retention bonus over each contingent payment period based upon the Company's revenue projections for Portico. The aggregate bonus pool has an aggregate maximum of $10.0 million over a four-year period. The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of December 16, 2021:
As of the Portico Acquisition Date, the estimated fair value of the Company's intangible assets, as acquired through the Portico Acquisition, was $19.9 million and had a weighted average useful life of 3.02 years. The allocation of the intangible assets is shown within the following table:
Amortization expense for the year ended December 31, 2022 and 2021 was $9.5 million and $0.4 million, respectively, 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:
In addition to the purchase price consideration, for the year ended December 31, 2021, the Company had incurred acquisition-related expenses of $4.2 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying consolidated statements of operations. Malta Holdings On February 26, 2021 (the "Malta Holdings Acquisition Date"), the Company, through its indirect wholly owned subsidiary, Cowen Malta Holdings Ltd. (“Malta Holdings”), completed the acquisition of all of the outstanding equity interest of Axeria Insurance Limited (the “Acquisition”), an insurance company organized under the laws of Malta whose principal business activity is to provide insurance coverage to third parties (see Note 22). Axeria Insurance Limited was renamed Cowen Insurance Company Ltd (“Cowen Insurance Co”) upon acquisition. The Acquisition was completed for a combination of cash and deferred consideration. In the aggregate, the purchase price, assets acquired, and liabilities assumed were not significant and near-term impact to the Company and its consolidated results of operations and cash flows was not significant. The aggregate estimated purchase price of the Acquisition was $12.7 million. On the Malta Holdings Acquisition Date, the Company paid upfront consideration of $12.5 million, with additional deferred consideration of $0.2 million which was paid during the second quarter of 2021. The Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, the results of operations of the business acquired is included in the accompanying consolidated statements of operations since the date of the Acquisition and the assets acquired, liabilities assumed recorded at their fair values within their respective line items on the accompanying consolidated statement of financial condition. The Company has recognized a bargain purchase gain of $5.2 million related to the Acquisition and is shown net of associated tax of $1.3 million in the consolidated statement of operations. The bargain purchase gain is primarily driven by the recognition of the customer relationships intangible asset and a contractual discount on the closing equity balance at the Malta Holdings Acquisition Date. Additionally, following the Acquisition, the business acquired is included in the Cowen Investment Management reporting unit within the Operating Company segment. The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of February 26, 2021:
As of the Malta Holdings Acquisition Date, the estimated fair value of the Company's intangible assets, which are primarily broker relationships, was $4.6 million and had a weighted average useful life of 10 years. The licenses of $0.2 million have indefinite life. Amortization expense for the years ended December 31, 2022 and 2021, was $0.4 million, respectively. As of December 31, 2022, the estimated amortization expense related to these intangible assets in future periods is as follows:
In addition to the purchase price consideration, for the year ended December 31, 2022, the Company had incurred acquisition-related expenses of $0.2 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying consolidated statements of operations. MHT On October 1, 2020 (the "MHT Acquisition Date"), the Company, through its indirect wholly owned subsidiary, Cowen and Company, completed its previously announced acquisition (the "MHT Acquisition") of certain assets and liabilities of MHT Partners, LP (“MHT Partners”). MHT Partners was an investment bank, based primarily in Dallas and San Francisco, focused on representing innovative companies in growing markets. The Acquisition was completed for a combination of cash and contingent consideration. In the aggregate, the purchase price, specified assets acquired and liabilities assumed were not significant and near-term impact to the Company and its consolidated results of operations and cash flows was not significant. The MHT Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, results of operations for the MHT Acquisition 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 the MHT Acquisition were integrated within the Company's existing businesses. Additionally, following the acquisition, the business acquired from MHT Partners is included in the Investment Bank reporting unit within the Operating Company segment. The aggregate estimated purchase price of the MHT Acquisition was $9.9 million. On the acquisition date, the Company paid an upfront consideration of $5.7 million, with additional contingent consideration to be paid after December 2023 valued based on a multiple of three-year average annual revenues of the acquired business less certain expenses. The Company estimated the fair value of the contingent consideration at $4.2 million using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. 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. In addition, the Company has established deferred compensation for specified previous MHT Partners employees which will be settled in cash over a three-year period. The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of October 1, 2020:
As of the MHT Acquisition Date, the estimated fair value of the Company's intangible assets, as acquired through the MHT Acquisition, was $1.2 million and had a weighted average useful life of 4.17 years . The allocation of the intangible assets is shown within the following table:
Amortization expense for the year ended December 31, 2022, 2021 and 2020 was $0.3 million, $0.3 million, and $0.1 million, respectively, 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: In addition to the purchase price consideration, for the year ended December 31, 2020, the Company had incurred acquisition-related expenses of $0.8 million, including financial advisory, legal and valuation services, which are included in professional, advisory and other fees in the accompanying consolidated statements of operations.
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Cash Collateral Pledged | Cash Collateral Pledged As of December 31, 2022 and 2021, the Company pledged cash collateral in the amount of $3.1 million and $3.4 million respectively, which relates to letters of credit issued to the landlords of the Company's premises in various locations. The Company also has pledged cash collateral for reinsurance agreements which amounted to $119.5 million (of which $24.4 million was in the form of letters of credit), as of December 31, 2022, and $44.1 million, as of December 31, 2021, which are expected to be released periodically as per the terms of the reinsurance policy (see Notes 16 and 22). As of December 31, 2022, the Company has the following irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit.
To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2022 and 2021 there were no amounts due related to these letters of credit.
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Segregated Cash |
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Segregated Cash [Abstract] | |
Segregated Cash | Segregated CashAs of December 31, 2022 and 2021, cash segregated under federal regulations and other restricted deposits of $185.9 million and $194.7 million, respectively, consisted of cash deposited in Special Reserve Bank Accounts for the exclusive benefit of customers under SEC Rule 15c3-3 and cash deposited in Special Reserve Bank Accounts for the exclusive benefit of Proprietary Accounts of Broker-Dealers ("PAB") under SEC Rule 15c3-3 (see Note 29). |
Investments of Operating Entities and Consolidated Funds |
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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. Certain securities owned, at fair value, 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, 2022 and 2021, securities owned, at fair value consisted of the following:
(*)The Company has elected the fair value option for securities owned, at fair value with a fair value of $7.9 million and $7.1 million as of December 31, 2022 and 2021, respectively. Receivable on and Payable for derivative contracts, at fair value The Company predominantly enters into derivative transactions to satisfy client needs and to manage its own exposure to market and credit risks resulting from its trading activities. The Company’s direct exposure to derivative financial instruments includes futures, currency forwards, equity swaps, interest rate swaps and options. The Company's derivatives trading activities expose the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets. The Company's long and short exposure to derivatives is as follows:
(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options. (b) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments. (c) Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 16. The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2022 and 2021. This table does not include the impact of over-collateralization.
(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. The realized and unrealized gains/(losses) related to derivatives trading activities were $(149.5) million, $(205.5) million and $(146.9) million for the years ended December 31, 2022, 2021 and 2020, respectively, and are included in Investment income- Securities principal transactions, net in the accompanying consolidated statements of operations. The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising the Company's business activities and are calculated before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. Pursuant to the various derivatives transactions discussed above, except for exchange traded derivatives and certain options, the Company is required to post/receive collateral. These amounts are recognized in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations respectively. As of December 31, 2022 and 2021, all derivative contracts were with major financial institutions. Other investments As of December 31, 2022 and 2021, other investments included the following:
(1) Portfolio funds, at fair value The portfolio funds, at fair value as of December 31, 2022 and 2021, included the following:
* 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 27. (a)HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. (b)Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated. (c)Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd are hedge funds with a focused and fundamental approach to investing in publicly traded US companies. Both funds permit quarterly withdrawals upon 90 days' notice. (d)Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (e)Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution. (f)Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. (g)BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated. (h)Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice. (i)Cowen Sustainable Investments I LP, Cowen Healthcare Investments II LP, Cowen Healthcare Investments III LP and Cowen Healthcare Investments IV LP are private equity funds. Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights. (j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects. Distributions will be made when the underlying investments are liquidated. (k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated. (l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated. (m)Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice. (n)Gaingels 10X Capital Diversity Fund I, LP is a venture capital fund that primarily invests in portfolio companies embracing diversity and inclusion. Distributions will be made when the underlying investments are liquidated. (o)HCRX Holdings, L.P. is a private operating company focusing primarily on healthcare royalty investments. Distributions upon realization will be made upon an investor's election subsequent to January 1st, 2026. (p)Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy. (q)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated. (2)Carried interest The Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model in other investments in the accompanying consolidated statements of financial condition (see Note 2w). Carried interest allocated to the Company from certain portfolio funds represents Cowen's general partner capital accounts from those funds. These balances are subject to change upon cash distributions, additional allocations or reallocations back to limited partners within the respective funds. All carried interest balances are earned from affiliates of the Company. A portion of the Company's carried interest is granted to employees through profit sharing awards designed to more closely align compensation with the overall realized performance of the Company. These arrangements enable certain employees to earn compensation based on performance revenue earned by the Company and are recorded within compensation payable in the accompanying 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. The carried interest as of December 31, 2022 and 2021, included the following:
(3) Equity method investments Equity method investments include investments held by the Company in several operating companies. The operating agreement that governs the management of day-to-day operations and affairs of these entities stipulates that certain decisions require support and approval from other members in addition to the support and approval of the Company. As a result, all operating decisions made in these entities requires the support of both the Company and an affirmative vote of a majority of the other managing members who are not affiliates of the Company. As the Company does not possess control over any of these entities, the presumption of consolidation has been overcome pursuant to current Accounting Standards and the Company accounts for these investments under the equity method of accounting. Included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners (b) Starboard Value (and certain related parties) which serves as an operating company whose operations primarily include the day-to-day management (including portfolio management) of several activist investment funds and related managed accounts and (c) operating companies whose operations primarily include the day-to-day management of real estate entities. The Company recorded no impairment charges in relation to its equity method investments for the year ended December 31, 2022, 2021 and 2020. 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:
The Company's income (loss) from equity method investments was December 31, 2022, 2021 and 2020 and $9.6 million, $35.5 million and $18.9 million, respectively, and is included in net gains (losses) on other investments on the accompanying consolidated statements of operations. Securities sold, not yet purchased, at fair value Securities sold, not yet purchased, at fair value represent obligations of the Company to deliver a specified security at a contracted price and, thereby, create a liability to purchase that security at prevailing prices. The Company's liability for securities to be delivered is measured at their fair value as of the date of the 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. As of December 31, 2022 and 2021, securities sold, not yet purchased, at fair value consisted of the following:
Securities purchased under agreements to resell/securities sold under agreements to repurchase and securities lending and borrowing transactions The following tables present the contractual gross and net securities borrowing and lending agreements and securities sold under agreements to repurchase and the related offsetting amount as of December 31, 2022 and 2021.
(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, 2022 and 2021:
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 $8.9 billion and $444.5 million as of December 31, 2022 and $9.7 billion and $744.5 million as of December 31, 2021, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of December 31, 2022 was $137.0 million, and as of December 31, 2021 was $165.5 million, all of which is included in other investments, at fair value in the accompanying consolidated statements of financial condition. Additionally, the Company's maximum exposure to loss for the variable interest entities noted above as of December 31, 2022 and 2021, was $215.0 million and $233.6 million, respectively. The maximum exposure to loss often differs from the carrying value of exposure to loss of the variable interests. The maximum exposure to loss is dependent on the nature of the variable interests in the VIEs and is limited to the notional amounts of certain commitments and guarantees. b. Consolidated Funds Other investments, at fair value Investments in portfolio funds, at fair value As of December 31, 2022 and 2021, investments in portfolio funds, at fair value, included the following:
Consolidated portfolio fund investments of Enterprise LP On May 12, 2010, the Company announced its intention to close its master fund, Ramius Enterprise Master Fund Ltd ("Enterprise Master"). Enterprise LP operated under a "master-feeder" structure up until January 1, 2019, when Enterprise Master distributed its capital to each feeder and was liquidated. As of December 31, 2022 and 2021, the consolidated investments in portfolio funds include Enterprise LP's investment in RCG Special Opportunities Fund, Ltd which is a portfolio fund that invests in a limited number of private equity investments directly as well as through affiliated portfolio funds. Indirect Concentration of the Underlying Investments Held by Consolidated Funds From time to time, either directly held by the Company, indirectly through the Company's consolidated entities or indirectly through its investments in the Consolidated Funds, the Company may maintain exposure to a particular issue or issuer (both long and/or short) which may account for 5% or more of the Company's equity. Based on information that is available to the Company as of December 31, 2022 and 2021, the Company assessed whether or not its interests in an issuer for which the Company's pro-rata share exceeds 5% of the Company's equity. There were two indirect concentrations that exceeded 5% of the Company's equity as of December 31, 2022 and one that exceeded 5% of the Company's equity at December 31, 2021. Through its investments in a Consolidated Fund and combined with direct Company investments, the Company maintained exposure to Linkem S.p.A which accounted for 5% or more of the Company's equity as of both December 31, 2021 and December 31, 2022. As of December 31, 2022, through its investments in a consolidated special purpose vehicle, the Company maintained exposure to Polysign, Inc which accounted for 5% or more of the Company's equity.
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Fair Value Measurements for Operating Entities and Consolidated Funds |
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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, 2022 and 2021:
(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the acquisition of Quarton International AG "Quarton"), the fourth quarter of 2020 (the acquisition of MHT Partners, LP "MHT") and the fourth quarter of 2021 (the acquisition of Portico Capital Advisors "Portico"), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $12.5 million to $14.9 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million. (c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.
(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the Quarton acquisition), the fourth quarter of 2020 (the MHT acquisition) and the fourth quarter of 2021 (the Portico acquisition), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $10.1 million to $25.0 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million. (c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments. The following table includes a roll forward of the amounts for the year ended December 31, 2022 and 2021 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.
(1) Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying consolidated statements of operations. (a) The entity in which the Company is invested completed an initial public offering. (b) Fair market value derived using models and private transactions. (c) The transfers between level 1, level 2 and level 3 are due to the change in the availability of observable inputs. (d) The Company deconsolidated an investment fund. Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. The Company recognizes all transfers and the related unrealized gain (loss) at the beginning of the reporting period. Transfers between level 2 and 3 generally relate to whether significant relevant observable inputs are available for the fair value measurements or due to change in liquidity restrictions for the investments. The following table includes quantitative information as of December 31, 2022 and 2021 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments.
(a)The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions. The Company has established valuation policies, procedures and internal control infrastructure over the fair value measurement of financial instruments. In the event that observable inputs are not available, the control processes are designed to ensure that the valuation approach utilized is applicable, reasonable and consistently applied. Where a pricing model is used to determine fair value, these control processes include reviews of the methodology and inputs for both reasonableness and applicability. Recently executed comparable transactions and other observable market data are used for the purposes of validating both the model and the assumptions used to calculate fair value. Independent of trading and valuation functions, the Company’s valuation committee in conjunction with its price verification team, plays an important role in determining that financial instruments are appropriately valued and that fair value measurements are both reasonable and reliable. This is particularly important where prices or valuations that require inputs are less observable. The valuation committee is comprised of senior management, including non-investment professionals, who are responsible for overseeing and monitoring the pricing of the Company's investments. The US GAAP fair value leveling hierarchy is designated and monitored on an ongoing basis. In determining the designation, the Company takes into consideration a number of factors including the observability of inputs, liquidity of the investment and the significance of a particular input to the fair value measurement. Designations, models, pricing vendors, third party valuation providers and inputs used to derive fair market value are subject to review by the valuation committee and the internal audit group. The Company reviews its valuation policy guidelines on an ongoing basis and may adjust them in light of improved valuation metrics and models, the availability of reliable inputs and information, and prevailing market conditions. The Company regularly reviews a profit and loss report, as well as other periodic reports, and analyzes material changes from period to period in the valuation of its investments as part of its control procedures. The Company also performs back testing on a regular basis by comparing prices observed in executed transactions to previous valuations. The fair market value for level 3 securities may be highly sensitive to the use of industry-standard models, unobservable inputs and subjective assumptions. The degree of fair market value sensitivity is also contingent upon the subjective weight given to specific inputs and valuation metrics. The Company holds various equity and debt instruments where different weight may be applied to industry-standard models representing standard valuation metrics such as: discounted cash flows, market multiples, comparative transactions, consideration for rounds of financing, capital rates, the premium ascribed to a controlling financial interest, selected equity volatilities, recovery rates and timing, and bid levels. Generally, changes in the weights ascribed to the various valuation metrics and the significant unobservable inputs in isolation may result in significantly lower or higher fair value measurements. Volatility levels for warrants and options are not readily observable and subject to interpretation. The interrelationship between unobservable inputs may vary significantly amongst level 3 securities as they are generally highly idiosyncratic. Significant increases (decreases) in any of those inputs in isolation can result in a significantly lower (higher) fair value measurement. Other financial assets and liabilities The following table presents the carrying values and fair values, at December 31, 2022 and 2021, of financial assets and liabilities and information on their classification within the fair value hierarchy which are not measured at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value (see Note 2f).
(a)Notes payable and other debt are based on the last broker quote available. (b)The fair market value of level 3 loans is calculated using discounted cash flows where applicable. (c)The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.4 million and $0.2 million as of December 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.
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Deposits with Clearing Organizations, Brokers and Banks |
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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, 2022 and 2021, the Company had a total of $87.9 million and $111.9 million, respectively, in deposit accounts with clearing organizations, brokers and banks that could be used as collateral to offset losses incurred by the clearing organizations, brokers and banks, on behalf of the Company's activities, if such losses were to occur. |
Receivables from and payables to brokers, dealers and clearing organizations |
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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, 2022 and 2021, amounts receivable from brokers, dealers and clearing organizations include:
As of December 31, 2022 and 2021, amounts payable to brokers, dealers and clearing organizations include:
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Receivable from and Payable to Customers |
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Dec. 31, 2022 | |
Receivables and Payable to Customers [Abstract] | |
Receivable from and Payables to Customers | Receivable From and Payable To CustomersAs of December 31, 2022 and 2021, receivable from customers of $41.7 million and $159.4 million, respectively, consist of amounts owed by customers relating to securities transactions not completed on settlement date and receivables arising from prepaid research. As of December 31, 2022 and 2021, payable to customers of $2.7 billion and $2.4 billion, respectively, include amounts due on cash and margin transactions to the Company's clients, some of which have their assets held by a Company omnibus account, which are included within receivables from brokers, dealers and clearing organizations in the accompanying consolidated statements of financial condition. In the omnibus structure, positions that are owned by Cowen International Ltd are fully cross collateralized by client funds, meaning that the Company does not have market risk. Additionally, Cowen International Ltd has no obligation to settle any trade that it deems inappropriate from a risk perspective, adding an important market and counterparty risk mitigating factor. |
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Property, Plant and Equipment Disclosure [Text Block] | Fixed Assets As of December 31, 2022 and 2021, fixed assets consisted of the following:
Depreciation and amortization expense related to fixed assets was $11.5 million, $11.0 million and $9.6 million for the years ended December 31, 2022, 2021, and 2020, respectively, and are included in depreciation and amortization expense in the accompanying consolidated statements of operations. During the fourth quarter of 2020 the Company purchased an aircraft and related equipment of $4.5 million. This aircraft was subsequently sold during the fourth quarter of 2021 for a gain of $0.3 million, within the accompanying consolidated statement of operations. Assets acquired under finance leases were $3.7 million and $6.5 million as of December 31, 2022 and 2021, 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 $1.1 million, $1.3 million, and $1.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022 and 2020, accumulated depreciation related to assets acquired under finance leases was $3.0 million and $4.7 million, respectively.
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Goodwill and Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and 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. Annual goodwill impairment test During the third quarter of 2021, the Company changed the date of its annual goodwill impairment test from December 31 to July 1. The Company believes the change in goodwill impairment date does not result in a material change in the method of applying the accounting principle. This change provides the Company additional time to complete the annual impairment test of goodwill in advance of our year end reporting. This change does not result in a delay, acceleration, or avoidance of an impairment charge. This change has been applied prospectively as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight. The Company performed its annual impairment test at July 1, 2022 through 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 annual impairment analysis at July 1, 2021, the Company did not recognize a goodwill impairment relating to any of the Company's reporting units. The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2022 and 2021:
In connection with the Portico transaction (see Note 3), in December 2021, the Company recognized goodwill of $86.9 million and intangible assets (including customer relationships, trade name, and backlog) with an estimated fair value of $19.9 million which are included within intangible assets in the consolidated statements of financial condition with the expected useful lives ranging from 1 to 4 years with a weighted average useful life of 3.02 years. Amortization expense related to intangibles from the Portico Acquisition for the year ended December 31, 2021 is $0.4 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). In connection with the MHT transaction (see Note 3), in October 2020, the Company recognized goodwill of $9.4 million and intangible assets (including customer relationships, trade name, and non-compete) with an estimated fair value of $1.2 million which are included within intangible assets, net in the consolidated statements of financial condition with the expected useful lives ranging from 3 to 5 years with a weighted average useful life of 4.17. Amortization expense related to intangibles from the MHT acquisition for the year ended December 31, 2022 totaled $0.3 million. Goodwill primarily relates to expected synergies from combining the acquired operations with our 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, 2022 and 2021.
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, 2022 and 2021, no impairment charge for intangible assets was recognized. The Company recognized impairment charges of $2.4 million during the year ended December 31, 2020. The impairment charges primarily related the Company’s decision to limit the activities of its clearing business, resulting in a $1.9 million impairment of a) intangible assets relating to customer lists and b) capitalized internally developed software costs. Amortization expense related to intangible assets was $16.2 million, $8.0 million, and $13.0 million for the years ended December 31, 2022, 2021 and 2020 , 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, 2022 is as follows:
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Other Assets Disclosure [Text Block] | Other AssetsOther assets in Operating Entities are as follows:
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Commission Management Payable [Abstract] | |
Commission Management Payable | Commission Management PayableThe Company receives a gross commission from various brokers, which is then used to fund commission sharing and recapture arrangements, less the portion retained as income to the Company. Accrued commission sharing and commission recapture payable of $115.9 million and $103.0 million, as of December 31, 2022 and 2021, respectively, are classified as commission management payable in the accompanying consolidated statements of financial condition. |
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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:
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Convertible Debt and Notes Payable | Convertible Debt and Notes Payable As of December 31, 2022 and 2021, the Company's outstanding debt was as follows:
Convertible Debt December 2022 Convertible Notes The Company, on December 14, 2017, issued $135.0 million aggregate principal amount of 3.00% convertible senior notes due December 2022 (the “December 2022 Convertible Notes”). The December 2022 Convertible Notes have a final maturity date of December 15, 2022 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such date. The interest on the December 2022 Convertible Notes is payable semi-annually on December 15 and June 15 of each year. The December 2022 Convertible Notes are senior unsecured obligations of Cowen. The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock. Pursuant to the indenture governing the December 2022 Convertible Notes, conversions of the December 2022 Convertible Notes will be settled by the delivery and/or payment, as the case may be, of Cowen’s Class A Common Stock, cash, or a combination thereof, at the Company's election. The Company recognized the embedded cash conversion option at issuance date fair value, which also represents the initial unamortized discount on the December 2022 Convertible Notes of $23.4 million and is shown net in convertible debt in the accompanying consolidated statements of financial condition. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity. During December 2020, the Company repurchased and extinguished $46.9 million of the outstanding principal amount of the December 2022 Convertible Notes for cash consideration of $70.5 million. In conjunction with the partial extinguishment of the December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $3.6 million and capitalized debt issuance costs of $0.4 million. The Company allocated $29.6 million of the cash consideration paid to the extinguishment of the equity component of the December 2022 Convertible Notes. The Company recognized $2.7 million of gain on debt extinguishment. On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes, and provided holders the option to elect to settle the as-converted value of the December 2022 Convertible Notes as allowed under the terms of the December 2022 Convertible Notes. As a result of the Company’s call for redemption of the December 2022 Convertible Notes, the December 2022 Convertible Notes were convertible, at the option of the holder at any time prior to June 22, 2021, the second business day prior to the December 2022 Convertible Notes' Redemption Date. On June 24, 2021 (the "Redemption Date"), the Company redeemed all of the outstanding principal amount of the December 2022 Convertible Notes. The redemption amount was determined based on the holders election to convert, which allowed for either 100.00% of the principal amount thereof plus accrued and unpaid interest on such principal amount up to June 15, 2021, to, but not including the Redemption Date of the December 2022 Convertible Notes, or the value of the Company's Class A common stock to be issued on conversion. The settlement method for the December 2022 Convertible Notes was $88.1 million in cash, (the outstanding principal amount of the December 2022 Convertible Notes) and 2,938,841 shares of the Company’s Class A common stock, (the remainder of the conversion obligation in excess of the principal amount). The conversion rate on the December 2022 Convertible Notes on the Redemption Date was 33.35 shares of the Company’s Class A common stock per $1,000.00 principal amount of December 2022 Convertible Notes converted. In conjunction with the redemption of the remaining December 2022 Convertible Notes, the Company accelerated the pro rata unamortized discount of $5.1 million and capitalized debt issuance costs of $0.5 million. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations is $6.7 million and $4.6 million for the years ended December 31, 2021 and 2020, based on an effective interest rate of 7.13%. The Company capitalized the debt issuance costs in the amount of $2.2 million, which is a direct deduction from the carrying value of the debt and was amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying consolidated statements of operations. The Company recorded interest expense of $1.2 million and $4.0 million for the years ended December 31, 2021 and 2020, respectively. 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. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $5.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in September 2019, which is a direct deduction from the carrying value of the debt and will be amortized over the life of the May 2024 Notes in interest and dividends expense in the accompanying 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, $7.7 million and $7.7 million for the years ended December 31, 2022, 2021 and 2020, 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 $2.5 million and $10.1 million for the years ended December 31, 2021 and 2020, 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. On March 24, 2021, the Company delivered payment of and discharged all $138.0 million outstanding aggregate principal of the December 2027 Notes plus accrued and unpaid interest through the effective redemption date of April 23, 2021. In conjunction with the extinguishment of the December 2027 Notes, the Company accelerated the pro-rata capitalized debt issuance costs. For the year ended December 31, 2021, the Company recognized $4.4 million of loss on debt extinguishment. Term Loan March 2028 Term Loan On March 24, 2021, the Company borrowed $300 million of first lien term loan due March 24, 2028. On December 15, 2021, the Company borrowed an additional $150 million first lien term loan under the same terms and conditions as, and fungible with, the initial first lien term loan (collectively, the “March 2028 Term Loan”). The aggregate amount borrowed under the March 2028 Term Loan is $450 million. The March 2028 Term Loan bears interest at an annual rate equal to, at the option of the Company, either the (a) London Inter-bank Offered Rate ("LIBOR") (adjusted for reserves and subject to a floor of 0.75%) plus a margin of 3.25% or (b) an alternate base rate plus a margin of 2.25%. The Company is required to pay amortization of approximately 1.00% per annum of the original principal amount of the March 2028 Term Loan. Additionally, the Company has entered into an interest rate swap to offset the floating interest rate of the March 2028 Term Loan (See Note 6). The obligations of the Company for the March 2028 Term Loan are guaranteed by certain of the Company’s wholly-owned domestic subsidiaries (excluding its broker-dealer subsidiaries) (the “Guarantors”) and secured by substantially all of the assets of the Company and the Guarantors, subject in each case to certain customary exceptions. The terms of the March 2028 Term Loan contain customary affirmative and negative covenants, subject to certain customary exceptions, thresholds, qualifications and “baskets”. Proceeds from the March 2028 Term Loan were used to (i) satisfy and discharge and redeem the Company’s 2027 Senior Notes, (ii) redeem the Company’s December 2022 Convertible Notes that remained outstanding as of March 31, 2021 and pay the cash settlement amount in connection with the conversion of December 2022 Convertible Notes prior to that redemption date, and (iii) for the payment of fees, commissions, premiums, expenses and other transaction costs (including original issue discount or upfront fees) payable in connection with the transactions related thereto. As of December 31, 2022, the outstanding principal amount of the March 2028 Term Loan was $442.1 million. Interest expense for the March 2028 Term Loan was $22.8 million and $9.7 million for the years ended December 31, 2022 and 2021, based on an effective interest rate of 4.46%. In March 2021, the Company capitalized debt issuance costs of approximately $6.6 million and initial unamortized discount of $1.5 million related to the March 2028 Term Loan which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying consolidated statements of operations. In December 2021, the Company capitalized debt issuance costs of approximately $2.7 million and unamortized discount of $1.5 million related to the additional borrowing of $150 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the March 2028 Term loan in interest and dividends expense in the accompanying consolidated statements of operations. The U.K. Financial Conduct Authority, which regulates LIBOR, has announced that all US Dollar LIBOR settings will either cease to be provided by any administrator or no longer be representative as of June 30, 2023. As the March 2028 Term Loan represents the Company’s only significant exposure to LIBOR, the transition to an alternative Inter-bank Offer Rate is not expected to have a material impact on Company's consolidated financial statements. Other Notes Payable During January 2022, the Company borrowed $4.0 million to fund insurance premium payments. This note had an effective interest rate of 2.01% and was due in December 2022, with monthly payment requirements of $0.4 million. As of December 31, 2022, the note was fully repaid. Interest expense for the year ended December 31, 2022 was insignificant. On September 30, 2020, the Company borrowed $72.0 million from Purple Protected Asset S-81 ("PPA S-81"), a Luxembourg entity unrelated to Cowen. The Company repaid $60.0 million of the PPA S-81 loan in June 2021. The loan is payable on September 30, 2023, had an initial interest rate of 1.4 times the Secured Overnight Financing Rate ("SOFR") plus 6.07% until December 31, 2020 and 1.4 times the SOFR plus 5.8% until June 30, 2021 and 3.65 times the SOFR plus 4.0% thereafter with quarterly interest payments. The loan obligation, as well as a loan issued by Cowen to The Military Mutual Ltd (a United Kingdom company unrelated to Cowen) with principal of $28.4 million that was sold by Cowen Re to PPA S-81 at fair value for no gain or loss on September 30, 2020, are fully cash collateralized through a reinsurance policy provided by Cowen Re which is reflected in cash collateral pledged in the consolidated statements of financial condition as of December 31, 2020 (see Notes 4 and 22). The Company capitalized debt issuance costs of approximately $1.7 million which is a direct deduction from the carrying value of the loan and will be amortized over the life of the loan in interest and dividends expense shown in the accompanying consolidated statements of operations. The Company recorded interest expense of $2.5 million, $3.0 million and $1.2 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to its loan payable to PPA S-81. During November 2019, the Company borrowed $2.6 million to fund general corporate capital expenditures. This note had an effective interest rate of 6% and is due in November 2024, with monthly payment requirements of $0.1 million. As of December 31, 2022, the outstanding balance on this note was $1.1 million. Interest expense for the years ended December 31, 2022, 2021 and 2020 was $0.1 million, respectively. 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. For the years ended December 31, 2022, 2021 and 2020, quantitative information regarding the Company's finance lease obligations reflected in the accompanying consolidated statements of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:
Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of December 31, 2022, are as follows:
(a)Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt. Letters of Credit As of December 31, 2022, the Company has four irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. The Company also has pledged cash collateral for reinsurance agreements (See Note 4). To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2022 and 2021, there were no amounts due related to these letters of credit.
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Redeemable Preferred Stock |
12 Months Ended |
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Dec. 31, 2022 | |
Equity [Abstract] | |
Redeemable Preferred Stock | Redeemable Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of preferred stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding. The Company's amended and restated certificate of incorporation permits the Company to issue up to 10,000,000 shares of preferred stock in one or more series with such designations, titles, voting powers, preferences and rights and such qualifications, limitations and restrictions as may be fixed by the board of directors of the Company without any further action by the Company's stockholders. The Company's board of directors may increase or decrease the number of shares of any series of preferred stock following the issuance of that series of preferred stock, but in no instance can the number of shares of a series of preferred stock be reduced below the number of shares of the series then outstanding. On May 19, 2015, the Company completed its offering of 120,750 shares of Series A Convertible Preferred Stock that provided $117.2 million of proceeds, net of underwriting fees and issuance costs of $3.6 million. Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum, which will be payable, when and if declared by the board of directors of the Company, quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Company may, at its option, pay dividends in cash, common stock or a combination thereof. The Company declared and paid a cash dividend in respect of the Series A Convertible Preferred Stock of $1.7 million and $6.8 million for the years ended December 31, 2022 and 2021. Each share of Series A Convertible Preferred Stock is non-voting and has a liquidity preference over the Company's Class A common stock and ranks senior to all classes or series of the Company's Class A common stock, but junior to all of the Company's existing and future indebtedness with respect to dividend rights and rights upon the Company's involuntary liquidation, dissolution or winding down. Upon issuance, each share of Series A Convertible Preferred Stock was convertible, at the option of the holder, into a number of shares of the Company's Class A common stock equal to the liquidation preference of $1,000.00 divided by the conversion rate. The initial conversion rate (subsequent to the December 5, 2016 reverse stock split) is 38.0619 shares (which equates to $26.27 per share) of the Company's Class A common stock for each share of the Series A Convertible Preferred Stock. At any time on or after May 20, 2020, when the Company's capped call option expired, the Company was able to elect to convert all outstanding shares of the Series A Convertible Preferred Stock into shares of the Company's Class A common stock, cash or a combination thereof, at the Company's election, in each case, based on the then-applicable conversion rate, if the last reported sale price of the Company's Class A common stock equals or exceeds 150% of the then-current conversion price on at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days (including on the last trading day of such period) immediately prior to such election. At the time of conversion, the conversion rate may be adjusted based on certain events, including but not limited to the issuance of cash dividends or Class A common stock as dividends to the Company's Class A common shareholders or a share split or combination. On December 31, 2021, the Company irrevocably elected that, upon the conversion of any share of the outstanding Series A Convertible Preferred Stock, the Company will settle $1,000.00 of its conversion obligation in cash. With respect to each conversion, to the extent the conversion obligation per share of Series A Convertible Preferred Stock is greater than $1,000.00, the Company may satisfy its conversion obligation in respect of such excess using any settlement method permitted under the Certificate of Designations. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company reclassified the Series A Convertible Preferred Stock to temporary equity at December 31, 2021.
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Stockholder's Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder's Equity | Stockholder's Equity The Company is authorized to issue 125,000,000 shares of common stock, which shall consist of 62,500,000 shares of Class A common stock, par value $0.01 per share, and 62,500,000 shares of Class B common stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of common stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding. The certificate of incorporation of the Company provides for two classes of common stock, and for the conversion of each class into the other, to provide a mechanism by which holders of Class A common stock of the Company who may be limited in the amount of voting common stock of the Company they can hold pursuant to federal, state or foreign bank laws, to convert their shares into non-voting Class B common stock to prevent being in violation of such laws. Each holder of Class A common stock is entitled to one vote per share in connection with the election of directors and on all other matters submitted to a stockholder vote, provided, however, that, except as otherwise required by law, holders of Class A common stock are not entitled to vote on any amendment to the Company's amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of the Company's preferred stock, if holders of the preferred stock series are entitled to vote on the amendment under the Company's certificate of incorporation or Delaware law. No holder of Class A common stock may accumulate votes in voting for directors of the Company. No holder of Class B common stock is entitled to vote except as otherwise provided by law, provided however that the Company must obtain the consent of a majority of the holders of Class B common stock to effect any amendment, alteration or repeal of any provision of the Company's amended and restated certificate of incorporation or amended and restated by-laws that would adversely affect the voting powers, preferences or rights of holders of Class B common stock. Except as otherwise provided by law, Class B common stock shares will not be counted as shares held by stockholders for purposes of determining whether a vote or consent has been approved or given by the requisite percentage of shares. Each share of Class A common stock is convertible at the option of the holder and at no cost into one share of Class B common stock, and each share of Class B common stock is convertible at the option of the holder and at no cost into one share of Class A common stock. The conversion ratios will be adjusted proportionally to reflect any stock split, stock dividend, merger, reorganization, recapitalization or other change in the Class A common stock and Class B common stock. Upon conversion, converted shares resume the status of authorized and unissued shares. Subject to the preferences of the holders of any of the Company's preferred stock that may be outstanding from time to time, each share of Class A common stock and Class B common stock will have an equal and ratable right to receive dividends and other distributions in cash, property or shares of stock as may be declared by the Company's board of directors out of assets or funds legally available for the payment of dividends and other distributions. In the event of the liquidation, dissolution or winding up of the Company, subject to the preferences of the holders of any preferred stock of the Company that may be outstanding from time to time, holders of Class A common stock and Class B common stock will be entitled to share equally and ratably in the assets available for distribution to the Company's stockholders. There are no redemption or sinking fund provisions applicable to the Class A or the Class B common stock. Embedded Cash Conversion Option on the December 2022 Convertible Notes Upon issuance of the December 2022 Convertible Notes (see Note 16), the Company recognized the embedded cash conversion option at fair value of $23.4 million which was valued as of June 26, 2018 at $29.0 million. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity. The Company allocated $29.6 million of the cash consideration paid on the December 2020 partial extinguishment of the Convertible Notes (see Note 16) to this equity component. The Company redeemed all of the remaining December 2022 Convertible Notes on June 24, 2021. Cash Dividends to Common Stockholders During the first quarter of 2020, the Company began the declaration of a quarterly cash dividend payable on its common stock. During February 2021, the Company's Board of Directors declared a cash dividend of $0.08 per share of Class A common stock. During April 2021, July 2021 and October 2021, the Company's Board of Directors declared a cash dividend of $0.10 per share of Class A common stock. During February 2022, April 2022, July 2022, and October 2022, the Company's Board of Directors declared a cash dividend of $0.12 per share of Class A common stock. Dividends are payable on all outstanding shares of Class A common stock and on granted but unvested shares of Class A common stock under the Equity Plans on the date of record (See Note 23). During the year ended December 31, 2022, the Company paid $15.2 million of cash dividends to its holders of Class A common stock. Treasury Stock Treasury stock of $614.3 million as of December 31, 2022, compared to $547.1 million as of December 31, 2021, resulted from $36.1 million acquired through repurchases of shares to cover employee minimum tax withholding obligations related to stock compensation vesting events under the Equity Plans or other similar transactions and $31.1 million purchased in connection with a share repurchase program. The following represents the activity relating to the treasury stock held by the Company during the year ended December 31, 2022:
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Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Controlling Interests in Consolidated Subsidiaries and Investment 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:
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss)Accumulated other comprehensive income includes the after tax change in Other revenues in the accompanying consolidated statement of operations. During the periods presented, the Company did not have material reclassifications out of other comprehensive income.
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Revenue from Contracts with Customers |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer | Revenue from Contracts with Customers For the year ended December 31, 2022, 2021 and 2020, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.
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Insurance and reinsurance |
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SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance and reinsurance | Insurance and reinsurance Cowen Insurance Co is a wholly owned Malta-based insurance company that reinsures a significant proportion of its portfolio (“Outward Reinsurance”). The Company's wholly owned subsidiaries, Cowen Reinsurance S.A. (based in Luxembourg) (“Cowen Re”) and Kelvin (based in Guernsey, see Note 3) provide reinsurance to third party insurance and reinsurance companies (“Inward Reinsurance”). Cowen Insurance Co's, Cowen Re's, and Kelvin's share of claims incurred and paid during the periods below, as well as the change in claims outstanding and claims incurred but not reported ("IBNR") during years ended December 31, 2022, 2021 and 2020, net of reinsurance, were as follows:
As of December 31, 2022 and 2021, insurance and reinsurance assets and liabilities consisted of the following:
Cowen Insurance Co, Cowen Re, and Kelvin utilize several methods to determine their claims IBNR. Cowen Insurance Co and Cowen Re generally employ an estimation methodology whereby historical average claims ratios over a period of up to 10 years are utilized, based on availability of data. In cases where current claims development contradicts historical results, Cowen Insurance Co and Cowen Re employ a method to determine average claims ratios derived through different actuarial calculation methods. If an event occurs that may give rise to significant future claims in excess of the amount calculated using the above-mentioned methodologies, the impact of such an event is calculated using existing claims data and actuarial estimation methods to adjust Cowen Insurance Co's and Cowen Re's IBNR provision. As Kelvin is in run-off Kelvin determines its IBNR liabilities based on figures provided by insurance companies that Kelvin reinsures as well as industry-wide information about claims development related to known events in the past, such as hurricanes, typhoons, earthquakes, etc. All entities utilize recognized actuarial methods and assumptions which are regularly reviewed through catastrophe models, own loss experience, historical industry loss experience, underwriter and originator experience, pricing adequacy trends and management’s professional judgement. During the year ended December 31, 2022, claims liability and claim adjustment expenses were calculated using the above-mentioned methods consistent with prior years. Cowen Insurance Co, Cowen Re, and Kelvin typically settle their premiums and claim payments on a quarterly basis. Cowen Insurance Co, Cowen Re, and Kelvin write contracts on both a proportional and non-proportional basis. The contracts contain inspection rights to allow the companies to inspect the policy documents that provide the source for the underlying data provided by the cedant. This negates the need for them to collect and hold the documents themselves which would be impracticable. Cowen Insurance Co, Kelvin, and Cowen Re do not discount any of its reserves and manage their exposure to insurance risk from higher than expected claims via the purchase of outward reinsurance. Cowen Insurance Co purchases such reinsurance on a program by program basis while Cowen Re and Kelvin have purchased whole account reinsurance which extends to their entire business. Cowen Insurance Co, Cowen Re and Kelvin have entered into insurance and reinsurance agreements that require them to post collateral of cash or U.S. government bonds to cover certain exposures as defined in the respective insurance and reinsurance agreements. As of December 31, 2022, Cowen Re had pledged $53.0 million of collateral towards such reinsurance obligations, of which $43.0 million was in cash and $10.1 million was in U.S. government bonds. As of December 31, 2021, total collateral pledged was $60.1 million, of which $44.1 million was cash and $16.0 million was U.S. government bonds. The collateral pledged as of December 31, 2022 was $7.1 million lower than the amounts pledged at December 31, 2021. This change is due to a release of collateral on three of its cedant contracts. Cowen Re expects $40.5 million of the cash collateral pledged to be released on September 30, 2023. The remaining collateral of $12.5 million is expected to be released periodically between December 31, 2022 and December 31, 2029 in accordance with the terms of the underlying insurance and reinsurance agreements. As of December 31, 2022, Kelvin had pledged $76.6 million of collateral towards its reinsurance obligations, of which $52.2 million was in cash and $24.4 million was in the form of letters of credit from major banks. As of December 31, 2022 and December 31, 2021, Cowen Insurance Co had no pledged collateral.
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Share-Based Payments, Deferred Compensation and Employee Ownership Plans |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payments, Deferred Compensation and Employee Ownership Plans | Share-Based Payments, Deferred Compensation and Employee Ownership Plans The Company has issued share-based compensation under the 2010 and 2020 Equity Incentive Plan (the "Equity Plans"). The Equity Plans permit the grant of options, restricted shares, restricted stock units, and other equity-based awards to the Company's employees and directors. Stock options granted generally vest over to five-year periods and expire seven years from the date of grant. Restricted shares and restricted share units issued, both of which are eligible to accrue dividend equivalents, may be immediately vested or may generally vest over a -to five-year period. Awards are subject to the risk of forfeiture, inclusive of accrued dividend equivalents. As of December 31, 2022, there were 3.7 million shares available for future issuance under only the 2020 Equity Incentive Plan. Under the Equity Plans, the Company awarded $50.1 million of deferred cash awards to its employees during the year ended December 31, 2022. These awards vest over a four-year period and accrue interest at 0.70% per year. As of December 31, 2022, the Company had unrecognized compensation expense related to the Equity Plans' deferred cash awards of $61.5 million. The Company measures compensation cost for equity classified share-based awards on grant date and amortizes the unearned compensation associated with such awards on a straight-line basis over the vesting period of the option or award, net of estimated forfeitures. In relation to awards under the Equity Plan, the Company recognized compensation expense of $66.7 million, $85.0 million and $48.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The income tax effect recognized for the Equity Plans was a benefit of $24.3 million, $33.5 million and $13.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Restricted Stock Units Granted to Employees Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the years ended December 31, 2022 and 2021:
Included in the restricted share and restricted stock unit activity are performance-linked restricted stock units of 1,974,217 which were awarded from March 2016 through March 2022. Certain of the awards granted have the ability to be cash settled when the attained award exceeds a certain percentage of granted amount. The cash portion of the award has been bifurcated from the equity component and recorded as a compensation payable in the accompanying consolidated statement of financial condition. Of the awards granted, 712,652 have vested and 320,681 have been canceled, as they did not meet the performance criteria, through December 31, 2022. Included in vested units are 233,333 units that had an attainable share value of 420,000, and were delivered in March 2021. Of this attainable share value 350,000 shares were settled in the issuance of the Company's Class A common stock and were delivered in March 2021 with the remaining 70,000 shares being settled in cash at the volume weighted average price on settlement date. Also included in vested units are 333,333 units that had an attainable share value of 666,666, due to reaching certain performance goals. Of this attainable value 528,800 shares were settled in the Company's Class A common stock and were delivered in March 2022 with the remaining 137,866 shares being settled in cash at the volume weighted average price of the Company's Class A common stock on settlement date. The remaining awards, included in the outstanding balance as of December 31, 2022, vest December 2023 and December 2024 and will be earned only to the extent that the Company attains specified market conditions relating to its volume-weighted average share price and total shareholder return in relation to certain benchmark indices and performance goals relating to aggregate net income and average return on shareholder equity. The actual number of attained shares ultimately earned could vary from zero, if performance goals are not met, to as much as 240% of the targeted award. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. The fair value of restricted stock is determined based on the number of shares granted and the quoted price of the Company's common stock on the date of grant. As of December 31, 2022, there was $77.9 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 1.64 years. Restricted Shares and Restricted Stock Units Granted to Non-Employee Board Members There were 64,370 and 28,463 restricted stock units awarded to non-employee board members during the year ended December 31, 2022 and 2021. The Company delivered 4,156 and 41,667 restricted stock units to non-employee board members during the year ended December 31, 2022 and 2021. As of December 31, 2022 and 2021, there were 306,547 and 246,333 restricted stock units outstanding for non-employee board members, respectively. Other Share Based Payments and Awards In certain circumstances, the Company grants carried interest in consolidated managing member/general partner subsidiaries to third parties through the grant of equity awards in exchange for professional, advisory and other services. The equity awards are recorded within additional paid in capital in the accompanying consolidated statements of financial condition and professional, advisory and other fees expense in the accompanying consolidated statements of operations based on the fair value of the award granted and expensed over the terms of the award. In addition, the equity awards provide the third parties profit points aligned to the allocated carried interest distributions. Upon vesting of the awards, the third parties' allocation of carried interest is determined by applying an equity ownership model. Accordingly, the Company accrues carried interest allocations based on the fair value of the underlying investments assuming hypothetical liquidation at book value upon vesting as nonredeemable non-controlling interest. On March 1, 2022, Cowen Digital Holdings LLC (“CDIG”) authorized 2,000,000 Class B Units, of which 1,487,500 Class B Units and an additional 29,250 on July 15, 2022, were issued to an affiliate, for which a subsidiary of the Company is the Managing Member, on behalf of the Company’s employees as incentive awards (the "Digital Awards") under the 2022 Equity Unit Incentive Plan. The Class B Units will, upon vesting, represent a 20% ownership of CDIG, a consolidated subsidiary of the Company upon vesting. Once the vesting conditions of the Digital Awards have been met, such awards will be presented as nonredeemable non-controlling interest in the accompanying consolidated statements of financial condition. Half of the Digital Awards vest over a period of time and are tied to service (time based) and the other half vest when a qualifying event as stipulated in the Digital Award documents occurs (performance based). Once vested, Class B units will not be entitled to distributions unless and until a profit distribution hurdle has been met. The Company recognized compensation expense of $0.8 million related to the time based Digital Awards for the year ended December 31, 2022. At December 31, 2022, there was $0.8 million of unrecognized compensation expense related to the time based Digital Awards which will be recognized over their five year vesting period. The fair value of time based Digital Awards is determined based on the fair market value of CDIG and its consolidated subsidiaries. The fair market value of CDIG and its consolidated subsidiaries is calculated utilizing recent transactions, discounted cash flows, and market multiples. The Digital Awards are then using a standard Black Scholes options pricing model. The primary input in determining the fair market value on grant date was recent/pending transactions in CDIG’s underlying investments. The expense related to the performance based component of the Digital Awards will be recognized when the qualifying event is considered to be probable. The income tax effect recognized for the Digital Awards was a benefit of $0.2 million for the year ended December 31, 2022.
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Defined Contribution Plans |
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Dec. 31, 2022 | |
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, 2022, 2021 and 2020, the Company's contributions to the 401(k) Plans were $3.0 million, $3.9 million, and $2.9 million, respectively. |
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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, Malta, Guernsey, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong. The Company is subject to U.S. tax on its Global Intangible Low Taxed Income ("GILTI"). The Company elected to account for taxes on GILTI inclusions in U.S. taxable income as incurred on the current year basis and not included any related amounts in deferred taxes. The components of the Company's income tax expense for the years ended December 31, 2022, 2021 and 2020 are as follows:
Consolidated U.S. income/(loss) before income taxes was $60.5 million in 2022, $385.1 million in 2021, and $289.6 million in 2020. The corresponding amounts for non-U.S.-based income/(loss) were $16.1 million in 2022, $20.9 million in 2021, and $7.9 million in 2020. The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2022, 2021, and 2020 are as follows:
As of December 31, 2022, the Company has income taxes receivable of approximately $10.9 million representing state tax overpayments, which is included in other assets on the accompanying consolidated statements of financial condition. The Company also has income taxes payable of $13.2 million representing federal, state and foreign payables, which is included in other liabilities on the accompany consolidated statements of financial condition. The components of the Company's deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows:
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 $1.9 million valuation allowance against its deferred tax assets of $84.2 million as of December 31, 2022 and recorded approximately $4.2 million valuation allowance against its deferred tax assets of $83.7 million as of December 31, 2021. Separately, the Company has deferred tax liabilities of $31.4 million as of December 31, 2022 and $57.7 million as of December 31, 2021. For tax year 2022, the Company's total deferred tax benefit of $28.9 million was derived by the recognition of Section 174 expenses and the reversal of timing differences in the normal course of business. The deferred tax benefit of $14.1 million in 2021 was derived by the reversal of timing differences in the normal course of business. The deferred tax expense of $70.1 million in 2020 was derived by the utilization of net operating losses and the reversal of timing differences in the normal course of business. As of December 31, 2022, the Company has foreign tax credit carryforwards of $1.1 million which expire between 2023 and 2030. Valuation allowance of $0.6 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, 2022:
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 $176.7 million, net of deferred tax liabilities of $39.7 million in connection with future taxable income, and an offsetting valuation allowance of $176.7 million against its Luxembourg net operating loss carryforwards that are in excess of such taxable income. In June 2011, the Company acquired a subsidiary with net operating loss carryovers that underwent a change of control under Section 382 of the Internal Revenue Code due to the acquisition. Accordingly, 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 $10.2 million of net operating losses. The Company is not expected to lose any deferred tax assets due to these limitations. As a result of the enactment of the Inflation Reduction Act signed on August 16, 2022, the Company is required to assess the tax impact of the Act in the quarter the law was enacted. Based on management’s analysis, there was no material impact on the Company's financial statements as of December 31, 2022. The components of unrecognized tax benefits are as follows:
The Company did not record any additions to its unrecognized tax benefit balances as a result of current or prior year tax positions in the consolidated statement of operations for the year ended December 31, 2022. No unrecognized tax benefit was recorded in the consolidated statement of financial condition as of December 31, 2022. The following are the major jurisdictions in which the Company has significant business operations and the earliest open tax year subject to examination in these jurisdictions: The Company continues to permanently reinvest the capital and accumulated earnings of its subsidiaries in the United Kingdom, Malta, Germany, Switzerland, Israel, Canada, and Hong Kong.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to the Company's common stockholders by the weighted average number of shares of Class A common stock outstanding for the period. As of December 31, 2022, there were 28,234,289 shares of Class A common stock outstanding. As of December 31, 2022, the Company has included 310,426 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share. As of December 31, 2021, there were 27,778,964 shares of Class A common stock outstanding. As of December 31, 2021, the Company has included 972,732 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share. Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares and restricted stock units. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized. The Company previously concluded that it had the intent and ability to settle the December 2022 Convertible Notes in cash and, as a result, the convertible notes did not have an impact on the Company's diluted earnings per share calculation. On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes (See Note 16). On June 24, 2021, the Company cash settled the December 2022 Convertible Notes up to the principal amount of the December 2022 Convertible Notes and share settled through the delivery of shares of the Company’s Class A common stock for the remainder of the conversion obligation in excess of the principal amount. The shares of the Company’s Class A common stock issued are within basic earnings per share subsequent to June 24, 2021. Prior to that date, the Company has applied the if-converted method to the portion of the December 2022 notes above the principal amount that settled in shares upon a conversion in dilutive earnings per share. On December 31, 2021, the Company irrevocably elected to cash settle $1,000.00 of its obligation in respect of each conversion of any share of the Series A Convertible Preferred Stock. Prior to this date, the Company could elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. Effective January 1, 2022, the Company adopted ASC 470-20, which requires the Company to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. As a result, the Series A Convertible Preferred Stock impacts the Company’s diluted earnings per share calculation for the period ended December 31, 2022 (See Note 2). The computation of earnings per share is as follows:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Operating Lease Obligations The Company has entered into leases for real estate and other facilities. These leases contain rent escalation clauses and options to extend the applicable lease term. The Company does not include renewal options in the lease term for calculating the Company's lease liability as the renewal options allow the Company operational flexibility and the Company is not reasonably certain to exercise these renewal options at this time. The Company records the expenses related to occupancy and equipment on a straight-line basis over the lease term and these expenses are included in occupancy and equipment expense and client services and business development expense in the accompanying consolidated statements of operations. For the year ended December 31, 2022 and 2021, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statements of operations were as follows:
The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the years ended December 31, 2022 and 2021:
As of December 31, 2022, maturities of the outstanding operating lease liabilities for the Company were as follows:
(a)The Company has entered into various agreements to sublease certain of its premises. (b)During the year ended December 31, 2022, the Company recognized an increase of $12.3 million of operating right-of-use assets and leases liabilities related to facility leases. (c)The Company has assigned a lease but has remained as the guarantor for performance of the assignee's rent payment obligations for the remainder of the term of the assigned lease at the maximum amount of $0.5 million. Other Commitments As of December 31, 2022, future minimum annual service payments for the Company were as follows:
Unfunded Commitments The following table summarizes unfunded commitments as of December 31, 2022:
(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. The Company is currently cooperating with the SEC in connection with an investigation of the Company’s business’ compliance with record preservation requirements relating to business communications and/or electronic messaging channels. The SEC is reportedly conducting similar investigations of record preservation practices at other broker-dealers and investment advisors. 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. For many legal and regulatory matters, we are unable to estimate a range of reasonably possible loss. 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 would include 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 |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company has two reportable business segments: Op Co and Asset Co. The Op Co segment consists of Cowen Investment Management ("CIM"), Investment Banking, Markets and Research. The Asset Co segment consists of the Company's private investments, private real estate investments and other legacy investment strategies. Segment Measures The measure of profit or loss for these segments is Economic Income (Loss), which management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors. In general, Economic Income (Loss) is an after tax measure (which represents the Company’s income tax expense or benefit calculated on Pre-tax Economic Income (Loss) once all currently available net operating losses have been utilized) and is presented after preferred stock dividends. Economic Income (Loss) (i) includes management reclassifications which the Company believes provides additional insight into the performance of the Company’s core businesses and divisions (ii) eliminates the impact of consolidation for Consolidated Funds and (iii) excludes goodwill and certain other impairments, certain other transaction-related adjustments and/or reorganization expenses and certain costs associated with debt. The Company does not disclose total asset information for its business segments as the information is not reviewed by the Chief Operating Decision Maker ("CODM"). The Op Co and Asset Co segments do not conduct inter-segment transactions. The following table sets forth operating results for the Company's consolidated US GAAP net income (loss) and related reclassifications and adjustments necessary to reconcile to the Company's Economic Income (Loss) measure which represents the Company's Op Co and Asset Co segments' results:
Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense, (iv) depreciation and amortization expense and (v) income taxes presented on an Economic Income (Loss) basis by Segment. The following table sets forth the included segment information on a US GAAP basis with reconciliations to consolidated amounts.
* Includes dividend revenue of $158.7 million, $26.0 million and $17.3 million for the year ended December 31, 2022, 2021 and 2020, respectively. Dividend revenue, consolidated funds, was $0.0 million, $0.0 million and $2.5 million for the year ended December 31, 2022, 2021 and 2020, respectively.
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Regulatory Requirements |
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Brokers and Dealers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Requirements | Regulatory Requirements Regulatory Capital As registered broker-dealers with the United States Securities and Exchange Commission ("SEC"), Cowen and Company, ATM Execution and Westminster are subject to the Uniform Net Capital Rule 15c3-1, "SEA Rule 15c3-1," under the Securities Exchange Act ("SEA") of 1934, which requires the maintenance of minimum net capital. Each registered broker-dealer has elected to compute net capital under the alternative method permitted by that rule. Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEA Rule 15c3-1, is equal to the greater of $1.5 million or 2% of aggregate debits arising from customer transactions. ATM Execution, and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEA Rule 15c3-1, equal to the greater of $250,000 or 2% of aggregate debits arising from customer transactions. Advances to affiliates, repayment of borrowings, distributions, dividend payments, and other equity withdrawals are subject to certain notification and other provisions of SEA Rule 15c3-1 and other regulatory bodies. Cowen and Company is also subject to certain net capital rule requirements under the Regulation 1.17 of the Commodity Futures Trading Commission ("CFTC") under Commodities Exchange Act (“CEA”) as an introducing broker. Under Regulation 1.17, Cowen and Company is required to maintain net capital equal to or in excess of $45,000 or the amount of net capital required by SEA Rule 15c3-1, whichever is greater. Additionally, as an options clearing member of the Options Clearing Corporation ("OCC") under OCC Rule 302, Cowen and Company is required to maintain net capital equal to the greater of $2.0 million or 2% of aggregate debit items. At December 31, 2022, Cowen and Company had $478.3 million of net capital in excess of its minimum requirements under SEA Rule 15c3-1. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010. The Dodd-Frank Act contains provisions that require the registration of all swap dealers, major swap participants, security-based swap dealers, and/or major security-based swap participants. Cowen Financial Products, LLC ("Cowen Financial Products") registered only with the SEC with an effective date of November 1, 2021 as a securities-based swap dealer and is not using models to compute its net capital. Under the rules there is a minimum net capital requirement for, among others, an entity that acts as a dealer in security-based swaps, which is the greater of $20 million or 2% of risk margin amount. The risk margin amount means the sum of (i) the total initial margin required to be maintained by the SEC securities-based swaps dealer at each clearing agency with respect to securities-based swaps transactions cleared for securities-based swap customers and (ii) the total initial margin amount calculated by the SEC securities-based swaps dealer swaps dealer with respect to non-cleared securities-based swaps under SEC rules. At December 31, 2022, Cowen Financial Products had $44.7 million of net capital in excess of its minimum requirements under SEA Rule 18a-1. Cowen International Ltd and Cowen Execution Ltd are subject to the capital requirements of the U.K. Financial Conduct Authority ("FCA"), as defined, and must exceed the minimum capital requirement set forth by the FCA. On 1 January 2022, the FCA adopted the Investment Firms Prudential Regime ("IFPR"). This is a new prudential regime which applies to MiFID investment firms authorized and regulated by the FCA in the UK. The IFPR refocuses prudential requirements and expectations away from the risks firms face, to also consider and look to manage the potential harm firms can pose to consumers and markets. Cowen International Ltd and Cowen Execution Ltd will both be designated as Class 2 firms under the new regime and will have a minimum capital requirement equal to the higher of; the Permanent minimum capital requirement, their respective Fixed Overhead requirement, and their Risk Responsive Computation ("K-factors"). Cowen Asia, a previously established entity, was re-registered with regulatory approval on May 17, 2019. Cowen Asia is subject to the financial resources requirements of the Securities and Futures Commission ("SFC") of Hong Kong. Financial Resources must exceed the Total Financial Resources requirement of the SFC. As of December 31, 2022, the regulatory net capital, minimum net capital requirement and excess net capital of U.S. regulated broker dealers and swap dealer together with the equivalent of capital requirements and compliance information for foreign broker dealers registered with the FCA and the SFC are presented as follows:
(a)The equivalent of Net Capital under FCA rules is referred as “capital resources” and under SFC rules is referred as “net liquid capital.” The equivalent of Minimum Net Capital Requirement under FCA rules is referred as “minimum capital resources requirement" and under SFC rules is referred as “net liquid capital requirement." Customer Protection The Company's U.S. broker-dealers must also comply with the customer protection provisions under SEA Rule 15c3-3 which requires a computation of a reserve requirement for customer and maintenance of a deposit of cash or securities into a special reserve bank account for the exclusive benefit of customers; or claim an exemption pursuant to subparagraphs (k)(2)(i) or (k)(2)(ii) of that rule. Firms can rely on more than one exemption. ATM Execution claims the (k)(2)(ii) exemption with regard to all of their customer accounts and transactions that are introduced on a fully-disclosed basis to their clearing agents for clearing, settlement and custody. Westminster claims the (k)(2)(i) exemption with regard to customer transactions and balances that are cleared, settled and custodied in bank accounts designated as Special Accounts for the Exclusive Benefit of Customers ("Special Bank Accounts"). Westminster also claims exemption for other business activities that are not covered under (k)(2)(i) contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 for receiving transaction-based compensation in return for providing commission management services. In accordance with the requirements of SEA Rule 15c3-3, Cowen and Company may be required to deposit in a Special Reserve Account cash or acceptable qualified securities for the exclusive benefit of customers. As of December 31, 2022, Cowen and Company had segregated approximately $49.4 million of cash to satisfy the customer reserve provision of SEA Rule 15c3-3. As a clearing and carrying broker-dealer, Cowen and Company is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEA Rule 15c3-3. Cowen and Company performs a PAB reserve computation in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEA Rule 15c3-3. This allows each correspondent firm that uses Cowen and Company as its clearing broker-dealer to classify its PAB account assets held at Cowen and Company as allowable assets in the correspondent's net capital calculation. At December 31, 2022, Cowen and Company had $40.4 million of cash on deposit in PAB Reserve Bank Accounts. Cowen and Company and ATM Execution also maintain certain assets in PAB accounts held at their respective clearing brokers. Each treats its assets held in those PAB accounts at the respective clearing brokers as allowable assets for net capital purposes. Cowen Financial Products, as a registered securities based swap dealer, claims Rule 18a-4(f) exemption under the Securities Exchange Act of 1934 (the “Act”) with regard to its swap counterparties on the basis that it has provided sufficient notice to its swap counterparties of their respective rights to require segregation of funds or other property used to secure uncleared security based swaps pursuant to section 3E(f)(1)(A)-(B) of the Act (15 U.S.C. 78c-5(f)(1)(A)). Any margin collateral received and held by the security-based swap dealer with respect to uncleared security-based swaps will not be subject to a segregation requirement. The notice outlines how a claim of those swap counterparties for the collateral would be treated in a bankruptcy or other formal liquidation proceeding of the security-based swap dealer. Other Regulatory Requirements Cowen Insurance Co and Cowen Re and Kelvin are individually required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Malta, Luxembourg and Guernsey, respectively. Each company's individual solvency capital ratio calculated at the end of each regulatory determined period must exceed a minimum requirement. As of December 31, 2021, the last testing date for Cowen Re, the solvency capital ratio was in excess of the minimum regulatory requirement. As of September 30, 2022, the last testing date for Cowen Insurance Co and Kelvin, the solvency capital ratios were in excess of the minimum regulatory requirement. 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, 2022. RCG Insurance Company’s capital and surplus as of December 31, 2022 totaled $4.6 million.
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Related Party Transactions |
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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, 2022 and 2021, $15.8 million and $16.6 million, respectively, included in fees receivable, are earned from related parties. The Company may, at its discretion, reimburse certain fees charged to the investment funds that it manages to avoid duplication of fees when such funds have an underlying investment in another affiliated investment fund. For the years ended December 31, 2022 and 2021, the amounts which the Company reimbursed the investment funds it manages were immaterial. Fees receivable and fees payable are recorded at carrying value, which approximates fair value. The Company may also make loans to employees or other affiliates, excluding executive officers of the Company. These loans are interest bearing and settle pursuant to the agreed-upon terms with such employees or affiliates, and are included in due from related parties in the accompanying consolidated statements of financial condition. As of December 31, 2022 and 2021, loans to employees of $11.8 million and $8.8 million, respectively, were included in due from related parties on the accompanying consolidated statements of financial condition. Of these amounts $6.1 million and $3.8 million, respectively, are related to forgivable loans. These forgivable loans provide for a cash payment up-front to employees, with the amount due back to the Company forgiven over a vesting period. An employee that voluntarily ceases employment, or is terminated with cause, is generally required to pay back to the Company any unvested forgivable loans granted to them. The forgivable loans are recorded as an asset to the Company on the date of grant and payment, and then amortized to compensation expense on a straight-line basis over the vesting period. The vesting period on forgivable loans is generally to three years. The Company recorded compensation expense of $4.5 million, $5.7 million and $3.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. This expense is included in employee compensation and benefits in the accompanying consolidated statements of operations. For the years ended December 31, 2022, 2021 and 2020 the interest income was $0.1 million, for these related party loans and advances, and are included in the interest and dividends in the accompanying consolidated statements of operations. The remaining balance included in due from related parties of $10.4 million and $22.6 million as of December 31, 2022 and 2021, respectively, relates to amounts due to the Company from affiliated investment funds and real estate entities due to expenses paid on their behalf. Employees and certain other related parties invest on a discretionary basis within consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of December 31, 2022 and 2021, such investments aggregated $53.5 million and $53.9 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 $24.7 million, $14.9 million and $21.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company may, at times, have unfunded commitment amounts pertaining to related parties. See Note 27 for amounts committed as of December 31, 2022.
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Guarantees and Off-Balance Sheet Arrangements |
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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, 2022 and December 31, 2021. Through indemnification provisions in clearing agreements with clients, customer activities may expose the Company to off-balance-sheet credit risk. Pursuant to the clearing agreement, the Company is required to reimburse the Company's clearing broker, without limit, for any losses incurred due to a counterparty's failure to satisfy its contractual obligations. However, these transactions are collateralized by the underlying security, thereby reducing the associated risk to changes in the market value of the security through the settlement date. The Company's customer securities activities are transacted on a delivery versus payment, cash or margin basis. In delivery versus payment transactions, the Company is exposed to risk of loss in the event of the customers' or brokers' inability to meet the terms of their contracts. In margin transactions, the Company extends credit to clients collateralized by cash and securities in their account. In the event the customers or brokers fail to satisfy their obligations, the Company may be required to purchase or sell securities at prevailing market prices in order to fulfill the obligations. The Company's exposure to credit risk can be directly impacted by volatile securities markets, which may impair the ability of counterparties to satisfy their contractual obligations. The Company seeks to control its credit risk through a variety of reporting and control procedures, including establishing credit limits based upon a review of the customers' financial condition and credit ratings. The Company seeks to manage 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, 2022.
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Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 14, 2023, the Board of Directors declared a cash dividend of $0.12 per common share. The dividend will be payable on March 15, 2023, to stockholders of record as of the close of trading on March 1, 2023. If the TD Merger is consummated prior to the close of trading on March 1, 2023, no dividend will be paid to stockholders of Cowen who hold common shares prior to the closing of the TD Merger (See Note 1). 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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Significant Accounting Policies - Annual (Policies) |
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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 the Accounting Standards Codification (the "Accounting Standards" or "ASC") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying 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. 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. During the first quarter of 2021, the Company changed the presentation of certain income streams on its consolidated statements of operations by moving the income streams from Other income - net gains (losses) on securities, derivatives and other investments to Revenues. Additionally, the Company moved proprietary trading gains and losses generated by the Company’s broker-dealer entities from Brokerage revenue to Investment income (loss) – securities principal transactions, net. The specified presentation changes included the following:
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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 determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a Voting Operating Entity ("VOE") or a Variable Interest Entity ("VIE") under US GAAP. Voting Operating Entities—VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns. Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units. Variable Interest Entities—VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE. The VIEs the Company has invested in act as investment managers and/or investment companies that may be managed by the Company. The VIEs are financed through their operations and/or loan agreements with the Company. In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company consolidates these investment funds when its variable interest is potentially significant to the entity (see Note 6 for additional disclosures on VIEs). As of December 31, 2022 and 2021, the total assets of the consolidated VIEs were $289.3 million and $304.1 million, respectively, and total liabilities of the consolidated VIEs were $4.2 million and $9.8 million, respectively. The Company consolidates investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2022, the Company consolidated Ramius Enterprise LP (“Enterprise LP”), an investment fund. At December 31, 2021, the Company consolidated the following investment funds: Enterprise LP and Cowen Private Investments LP ("Cowen Private"). During the first quarter of 2022, the Company deconsolidated Cowen Private as the fund was liquidated. During the first quarter of 2021, the Company deconsolidated Cowen Sustainable Investments I, LP ("CSI I LP") due to the Company's ownership being diluted through a capital equalization event. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying consolidated statements of operations. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary. Other—If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for its investment in such entity (primarily consisting of securities of such entity which are purchased and held principally for the purpose of selling them in the near term and classified as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within Investment income (loss) - Securities principal transactions, net or Investment income (loss) - portfolio fund investment income (loss) in the accompanying 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 Consolidated Funds - Principal transactions, net in the accompanying consolidated statements of operations. 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. Certain portfolio fund investments qualify as equity method investments and are investment companies that apply specialized industry accounting. In applying equity method accounting guidance, the Company retains the specialized accounting of the investees and reports its investments on the consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within Investment Income - portfolio fund principal transactions, net in the accompanying consolidated statements of operations. In addition, the Company's broker-dealer subsidiaries, Cowen and Company, LLC ("Cowen and Company"), Westminster Research Associates LLC ("Westminster"), Cowen Execution Services Limited ("Cowen Execution Ltd"), ATM Execution LLC ("ATM Execution"), Cowen and Company (Asia) Limited ("Cowen Asia"), and Cowen International Limited ("Cowen International Ltd"), apply the specialized industry accounting for brokers and dealers in securities, which the Company retains upon consolidation.
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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, and the disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, as well as the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 credit losses | Allowance for credit losses ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”) prescribes the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update guidance, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer). The Company applies the guidance in ASC 326 to securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, underwriting fees, strategic/financial advisory fees and placement and sales agent fees, management fees and incentive fees receivable). The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company’s expectation of the collectability in determining the allowance for credit losses. The Company’s expectation is that the credit risk associated with fees and other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards. For securities borrowed, the Company applies a practical expedient to measure the allowance for credit losses based on the fair value of the collateral. If the fair value of the collateral held exceeds the amortized cost of the borrowing and the borrower is expected to continue to replenish the collateral as needed, the Company will not recognize an allowance. If the fair value of collateral is less than amortized cost and the borrower is expected to continue to replenish the collateral as needed, the Company applies the CECL model, utilizing a probability and loss given default methodology, only to the extent of the shortfall between the fair value of the collateral and amortized cost. The credit loss expense related to the allowance for credit losses as well as any recoveries of amounts previously charged is reflected in other expenses in the accompanying consolidated statements of operations.
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Valuation of investments and derivative contracts | Valuation of investments and derivative contracts and other investments US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investment is based on their proportional rights of the underlying portfolio company and are valued using market quotations when readily available. When market quotations are unavailable or deemed not representative, the level 3 investments are valued using a market approach, an income approach, or a combination of both approaches. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future cash flows to a single present value. In following these approaches, the significant inputs and assumptions include the timing and expected amount of cash flows, the appropriateness of discount rates used, the premium ascribed to a controlling financial interest, selected equity volatilities 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, are classified as level 2 when their inputs can be corroborated by market data. OTC derivatives, such as swaps and options, with significant inputs that cannot be corroborated by readily available or observable market data are classified as level 3. Other investments—Other investments consist primarily of portfolio funds, carried interest and equity method investments, which are valued as follows: i. Portfolio funds—Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The practical expedient permits an entity holding investments in certain entities that either are investment companies or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. ii. Carried Interest—For the private equity and debt fund products the Company offers, the Company is allocated incentive income by the investment funds based on the extent by which the investment funds' performance exceeds predetermined thresholds. Carried interest allocations are generally structured from a legal standpoint as an allocation of capital in the Company’s capital account. The Company accounts for carried interest allocations by applying an equity ownership model. Accordingly, the Company accrues performance allocations quarterly based on the fair value of the underlying investments assuming hypothetical liquidation at book value. iii. Equity Method Investments—For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company applies the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in Net gains (losses) on other investments in the accompanying consolidated statements of operations. See Notes 6 and 7 for further information regarding the Company's investments, including equity method investments and fair value measurements.
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Accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities—Accounts payable, accrued expenses and other liabilities include contingent consideration liabilities related to terms of the purchase agreements of the Company's previous acquisitions. In each instance the Company is required to pay the sellers of such entities a portion of future net income and/or revenues of the acquired business if certain targets are met through December 24, 2024. For each acquisition the Company has estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits related to the ongoing operations of these acquired businesses. The Company updates its estimates and assumptions each reporting period and the associated change in fair value is shown in the accompanying consolidated statements of operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting of derivative contracts | Offsetting of derivative contracts To reduce credit exposures on derivatives, the Company may enter into master netting agreements with counterparties that permit the Company the right, in the event of a default by a counterparty, to offset the counterparty’s rights and obligations under the agreement and to liquidate and offset any collateral against any net amount owed by the counterparty. Derivatives are reported on a net-by-counterparty basis (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) in the consolidated statements of financial condition when a legal right of offset exists under an enforceable netting agreement. Additionally, derivatives are reported net of cash collateral received and posted under enforceable credit support agreements in the consolidated statements of financial condition, provided a legal right of offset exists. See Note 6 for further information about offsetting of derivative financial instruments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due From / Due to Related Parties [Policy Text Block] | Due from 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 related parties on the accompanying consolidated statements of financial condition. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivable from and payable to brokers | Receivable from and payable to brokers Receivable from brokers, dealers, and clearing organizations includes amounts receivable for securities failed to deliver by the Company to a purchaser by the settlement date, amounts receivable from broker-dealers and clearing organizations, commissions receivable from broker-dealers, and interest receivable from securities financing arrangements and are reported net of an allowance for credit losses. Payable to brokers, dealers and clearing organizations includes amounts payable for securities failed to receive by the Company from a seller by the settlement date, amounts payable to broker-dealers and clearing organizations for unsettled trades, interest payable for securities financing arrangements, and payables of deposits held in proprietary accounts of brokers and dealers. Receivables and payables with brokers, dealers and clearing organizations arising from unsettled regular-way transactions are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held with multiple financial institutions.
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Receivable from and payable to customers | Receivable from and payable to customersReceivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settlement-date basis and prepaid research, net of allowance for credit losses. For prepaid research, a prepaid research asset is established for research and related services disbursed in advance of anticipated client commission volumes. Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settlement-date basis on the statement of financial condition, and other miscellaneous customer payables. Securities owned by customers, including those that collateralize margin, are not reflected as assets of the Company on the statement of financial condition. The Company holds these securities with the intention of settlement against customer orders and are held as collateral for customer receivables.
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Fees receivable | Fees receivableFees receivable primarily relate to securities transactions and are reported net of an allowance for credit losses. Fees receivable also include amounts due to the Company for underwriting fees, strategic/financial advisory fees and placement and sales agent fees. Additionally, management and incentive fees due to the Company are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 2w). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities financing arrangements | 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. See Note 2e for further information.Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities purchased under agreement to resell and securities sold under agreements to repurchase Securities purchased under agreement to resell and securities sold under agreements to repurchase ("repurchase agreements") are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. A repo is a transaction in which a firm buys or sells financial instruments from/to a counterparty, typically in exchange for cash, and simultaneously enters into an agreement to resell or repurchase the same or substantially the same financial instruments to/from such counterparty at a stated price plus accrued interest at a future date. When the Company receives securities as collateral, and has concluded it (i) is the transferor and (ii) can pledge the securities to third parties, the Company recognizes the securities received as collateral at fair value in Securities owned, at fair value with the corresponding obligation to return the securities received as collateral at fair value in Securities sold, not yet purchased, at fair value. Securities received as collateral are not recognized when the Company either (i) is not the transferor or (ii) cannot pledge the securities to third parties. The initial collateral advanced approximates or is greater than the market value of securities purchased or sold in the transaction. The Company typically enters into repurchase transactions with counterparties that prefer repurchase transactions to securities borrowed and securities loaned transactions. The Company has executed master repurchase agreements with such counterparties and utilizes such counterparties to finance its own positions, or replace a securities lending transaction with a repurchase for matched book purposes. The Company monitors the market value of repurchases on a daily basis, with additional collateral obtained or returned, as necessary. Repurchases may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company mitigates its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional collateral or returning excess collateral in accordance with the netting provisions available in the master repurchase contracts in place with the counterparties. Interest paid is recorded in interest and dividends expense in accordance with US GAAP on repurchase agreement transactions on an accrual basis in the accompanying consolidated statements of operations.
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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.
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Goodwill and Intangible Assets | Goodwill and intangible assets Goodwill Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit. In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. See Note 12 for the impact of the goodwill impairment test. Intangible assets Intangible assets with finite lives are amortized over their estimated average useful lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. An impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying consolidated statements of operations if the sum of the estimated undiscounted cash flows from the use or disposition of the asset or asset group is less than the corresponding carrying value. The Company continually monitors the estimated average useful lives of existing intangible assets.
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Debt | Debt Long-term debt is carried at the principal amount borrowed net of any unamortized discount/premium. The discount or premium 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | Temporary EquityTemporary equity consists of Redeemable 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock"). The Company has irrevocably elected to cash settle $1,000.00 of each conversion of any share of the Series A Convertible Preferred Stock. As the holders can exercise the conversion option on their shares of Series A Convertible Preferred Stock at any time and require cash payment upon conversion, the Company has classified the Series A Convertible Preferred Stock preferred stock in temporary equity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interests in consolidated subsidiaries | Non-controlling interests in consolidated subsidiariesNon-controlling interests represent the pro rata share of the income or loss of the non-wholly owned consolidated entities attributable to the other owners of such entities. When non-controlling interest holders do not have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as a component of permanent equity. Ownership which has been classified in permanent equity are non-controlling interests for which the holder does not have the unilateral right to redeem its ownership interests. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Leases [Policy Text Block] | Right-of-use assets and lease liabilities The Company accounts for leases in accordance with ASC Topic 842, Leases ("ASC 842"). The guidance requires the recognition of right-of-use assets and lease liabilities on the accompanying consolidated statements of financial condition. 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. On an ongoing basis the Company performs an analysis of new/modified 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. 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 non-lease 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 non-lease 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 16 for information on the Company's finance leases.
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Revenue recognition | Revenue recognitionThe Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company follows a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, the Company includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgments are required in the application of the five-step model including: when determining whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The Company's principal sources of revenue are generated within two segments. The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, investment income (loss) and incentive income. Investment income is excluded from ASC Topic 606. The Asset Co segment generates revenue through investment income (loss), management fees and incentive income. Revenue from contracts with customers includes management fees, incentive income, investment banking revenue and brokerage services revenue excluding principal transactions. ASC Topic 606 does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The following is a description of principal activities, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 28. Investment banking The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from public and private small- and mid-capitalization companies within the Company's sectors. Investment banking revenue consists of underwriting fees, strategic/financial advisory fees, expenses reimbursed from clients and placement and sales agent fees. •Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible securities offerings. Fee revenue relating to underwriting commitments is recorded at the point in time when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; (iii) the Company has been informed of the number of securities that it has been allotted; and (iv) the issuer obtains control and benefits of the offering; which generally occurs on trade date. Underwriting fees are recognized gross of transaction-related expenses, and such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction. •Strategic/financial advisory fees. The Company's strategic advisory revenue includes success fees earned in connection with advising companies, principally in mergers, acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. A significant portion of the Company's advisory revenue (i.e., success-related advisory fees) is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is constrained until satisfaction of the performance obligation. The Company records strategic advisory revenues at the point in time, gross of related expenses, when the services for the transactions are completed or the contract is canceled under the terms of each assignment or engagement. •Placement and sales agent fees. The Company earns placement agency fees and sales agent commissions in non-underwritten transactions, such as private placements of loans and debt and equity securities, including private investment in public equity transactions ("PIPEs"), and as sales agent in at-the-market offerings of equity securities. The Company records placement revenues (which may be in cash and/or securities) at the point in time when the services for the transactions are completed under the terms of each assignment or engagement. The Company records sales agent commissions on a trade-date basis. •Expense reimbursements from clients. Investment banking revenue includes expense reimbursements for transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction. Expense reimbursements associated with investment banking engagements are recognized in revenue at the point in time when the Company is contractually entitled to reimbursement. The related expenses are presented gross within their respective expense category in the accompanying consolidated statements of operations. Brokerage Brokerage revenue consists of commissions, principal transactions, equity research fees and trade conversion revenue. •Commissions. Commission revenue includes fees from executing and clearing client transactions and commission sharing arrangements. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services on a standalone basis, are recognized at a point in time on trade-date. Commission revenues are generally paid on settlement date and the Company records a receivable between trade-date and payment on settlement date. The Company permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as "soft dollar arrangements". The Company also offers institutional clients the ability to allocate a portion of their gross commissions incurred on trades executed with various brokers to pay for research products and other services provided by third parties by entering into commission sharing arrangements. The Company acts as an agent in the soft dollar and commission sharing arrangements as the customer controls the use of the soft dollars and directs payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues and recorded on trade date. Commissions on soft dollar brokerage are recorded net of the related expenditures. The costs of commission sharing arrangements are recorded for each eligible trade and shown net of commission revenue. •Equity research fees. Equity research fees are paid to the Company for providing access to equity research. In the US, revenue is recognized once an arrangement exists, access to research has been provided and the customer has benefited from the research. As part of Markets in Financial Instruments Directive ("MiFID II"), the international customers of the Company's broker-dealers have executed equity research contracts with its clients. The contracts either contain a fixed price for providing access to research or a price at the discretion of the customer with a contract minimum. Fixed equity research fees are recognized over the contract period as the customer is benefiting from the research throughout the contract term. When the equity research fees are based on the customer’s discretion with a contract minimum, the Company recognizes the contract minimum over the life of the contract as the customer benefits from the research provided and adjusts the revenue when the Company can estimate the amount of equity research fees over the contract minimum. Additionally, the Company earns variable consideration for attending client conferences and events. Revenue is recognized when the Company attends a client conference or event. •Trade conversion revenue. Trade conversion revenue includes fees earned from converting foreign securities into an American Depository Receipt ("ADR") and fees earned from converting an ADR into foreign securities on behalf of customers, and margins earned from facilitating customer foreign exchange transactions. Trade conversion revenue is recognized on a trade-date basis. Investment Income •Securities principal transactions, net. Principal transactions, net includes realized gains and losses from transactions in financial instruments and unrealized gains and losses from ongoing changes in the fair value of the Company’s positions. Principal transactions, net generated by the Company's broker-dealers include net trading gains and losses from the Company's market-making activities in over-the-counter equity and fixed income securities, trading of convertible securities, and trading gains and losses on inventory and other Company positions, which include securities previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a short duration. With respects to the Company's proprietary trading strategies, purchases and sales of securities, net of commissions, derivative contracts, and the related revenues and expenses are recorded on a trade-date basis with net trading gains and losses included as a component of Investment income - Securities principal transactions, net, in the accompanying consolidated statements of operations. •Portfolio Fund principal transactions, net. Portfolio funds include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate NAV per share (or its equivalent). The practical expedient permits an entity holding certain investments that calculates NAV per share or its equivalent for which the fair value is not readily determinable and is considered an investment company under ASC 946 to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. Investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. Realized and unrealized gains (losses) resulting from changes in NAV per share are reflected within Investment income – portfolio fund principal transactions, net in the accompanying consolidated statements of operations. •Carried interest allocations. The Company is allocated carried interest based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's private equity investment funds. For the private equity fund products the Company offers, the carried interest earned is typically up to 30% of the distributions made to investors after return of their contributed capital and generally a preferred return. The Company recognizes carried interest allocated to the Company under an equity ownership model as investment income - carried interest allocations in the accompanying consolidated statements of operations accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures. Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within Investment Income - Carried interest allocations in the accompanying consolidated statements of operations along with the allocations proportionate to the Company's ownership interests in the investment funds. Generally, carried interest is recognized after the investor has received a full return of its invested capital, plus a preferred return. However, for certain private equity structures, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These private equity structures are generally subject to a potential clawback of these incentive fees upon the liquidation of the private equity structure if the investor has not received a full return of its invested capital plus the preferred return thereon. Management fees The Company earns management fees from investment funds and certain managed accounts for which it serves as the investment manager; such fees earned are typically based on committed or invested capital for private equity funds and net asset value for hedge funds. The Company has determined that the primary drivers of management fees are committed and invested capital relating to private equity funds and assets under management relating to hedge funds. The management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Management fees are generally paid on a quarterly basis and are prorated for capital inflows (or commitments) and redemptions (or distributions) and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. While some investors may have separately negotiated fees, in general the management fees are as follows: •Private equity funds. Management fees for the Company's private equity funds are generally charged at an annual rate of 1% to 2% of committed capital during the investment period (as defined in the relevant partnership agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 1% to 2% of the net asset value or the aggregate cost basis of the unrealized investments held by the private equity funds. For certain other private equity funds (and managed accounts), the management fees range from 0.2% to 1% and there is no adjustment based on the investment period. Management fees for the Company's private equity funds are generally paid on a quarterly basis. •Hedge funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of net asset value. Management fees are generally calculated monthly at the end of each month. Incentive income The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's investment funds and managed accounts. The incentive income is charged to the investment funds in accordance with their corresponding investment management or partnership agreement. For the hedge funds the Company offers, incentive income earned is typically up to 20% (in certain cases on performance in excess of a benchmark) of the net profits earned for the full year that are attributable to each fee-paying investor. The Company recognizes incentive income charged to the Company's hedge funds based on the net profits of the hedge funds. The Company recognizes such incentive income when the fees are no longer subject to reversal or are crystallized. For certain hedge funds, the incentive fee crystallizes annually when the high-water mark for such hedge funds is reset, which delays recognition of the incentive fee until year end. In periods following a period of a net loss attributable to an investor, the Company generally does not earn incentive income on any future profits attributable to such investor until the accumulated net loss from prior periods is recovered, an arrangement commonly referred to as a "high-water mark." Generally, incentive income is earned after the investor has received a full return of its invested capital, plus a preferred return. Interest and dividends Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from securities finance activities and securities held by the Company for purposes of investing capital, investments held by its Consolidated Funds and its brokerage balances. Interest is recognized in accordance with US GAAP and market convention for the imputation of interest of the host financial instrument. Interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date. Insurance and reinsurance Premiums for insurance and reinsurance contracts are earned over the coverage period. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly basis. For each of its contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with US GAAP. If the Company determines that a contract does not expose it to a reasonable possibility of a significant loss from insurance risk, the Company records the contract under the deposit method of accounting with any net amount receivable reflected as an asset in other assets, and any net amount payable reflected as a liability within accounts payable, accrued expenses and other liabilities on the 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. All of the items above are reported net of any Outward Reinsurance (see Note 22), which is determined as the portion of the Company’s premiums, liabilities for losses and loss adjustment expenses, provisions for losses and loss adjustment expenses, and costs of acquiring new policies that are ceded to providers of such Outward Reinsurance pursuant to their terms and conditions. These ceded amounts are calculated based on the same principles outlined above. Interest and dividends expense Interest and dividends expense relates primarily to securities finance activities, trading activity with respect to the Company's investments and interest expense on debt.
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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 23 for further information regarding the Company's share-based compensation plans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxesThe Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company evaluates its deferred tax assets for recoverability considering negative and positive evidence, including its historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. The Company records a valuation allowance against its deferred tax assets to bring them to a level that it is more likely than not to be realized. 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, state and local tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand-alone state and local tax returns. The Company also has subsidiaries that are residents in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These foreign subsidiaries are subject to taxation in their respective resident countries, and the Company is responsible for, and therefore reports, all taxes incurred by these subsidiaries in the consolidated statements of operations. The foreign jurisdictions where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Malta, Guernsey, Germany, Switzerland, Israel, South Africa, Canada and Hong Kong.
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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.
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Recent pronouncements | Recent pronouncements Recently issued In August 2020, the FASB issued guidance simplifying an issuer’s accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separate accounting for embedded conversion features; separate accounting is still required in certain cases. The guidance also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The guidance requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. The guidance requires new disclosures about events that occur during the reporting period and cause conversion contingencies to be met and about the fair value of a public business entity’s convertible debt at the instrument level. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2021 and interim periods within those fiscal years with early adoption permitted. The Company adopted the guidance as of January 1, 2022 under the modified retrospective method. With the adoption of this guidance, the Company is required to include the portion of the Series A Convertible Preferred Stock that can be settled in Class A common stock (the amount in excess of $1,000.00 per share of the Series A Convertible Preferred Stock) in the diluted earnings per share calculation. See Note 26 for the calculation of diluted earnings per share. In August 2018, the FASB issued guidance prescribing targeted improvements to financial services – insurance industry accounting guidance for long-duration contracts. The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred acquisition costs for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. For all entities, the guidance is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years with early adoption permitted. The Company is evaluating the impact of adopting the new guidance and has determined that the impact is not expected to be material to the consolidated financial statements. In June 2022, the FASB issued guidance that amends ASC 820 to clarify that when evaluating the fair value of an equity security a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value. The guidance further prohibits an entity from recognizing a contractual sale restriction as a separate unit of account and requires specific disclosures related to the fair value; the nature and duration of the restrictions; and circumstances that could cause the restrictions to lapse on such an equity security. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2023 and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of the new guidance.
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Earnings Per Share | Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares and restricted stock units. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized. The Company previously concluded that it had the intent and ability to settle the December 2022 Convertible Notes in cash and, as a result, the convertible notes did not have an impact on the Company's diluted earnings per share calculation. On March 24, 2021, the Company issued a redemption notice announcing that the Company would redeem all of the December 2022 Convertible Notes (See Note 16). On June 24, 2021, the Company cash settled the December 2022 Convertible Notes up to the principal amount of the December 2022 Convertible Notes and share settled through the delivery of shares of the Company’s Class A common stock for the remainder of the conversion obligation in excess of the principal amount. The shares of the Company’s Class A common stock issued are within basic earnings per share subsequent to June 24, 2021. Prior to that date, the Company has applied the if-converted method to the portion of the December 2022 notes above the principal amount that settled in shares upon a conversion in dilutive earnings per share.
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Significant Accounting Policies (Tables) - Annual |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Useful Life |
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Acquisition (Tables) |
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Kelvin Re Limited | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the net tangible and intangible assets acquired and liabilities assumed as of June 1, 2022:
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Cowen Insurance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of February 26, 2021:
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Finite-lived Intangible Assets Amortization Expense | As of December 31, 2022, the estimated amortization expense related to these intangible assets in future periods is as follows:
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MHT Partners | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of October 1, 2020:
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Finite-lived Intangible Assets Amortization Expense | The estimated amortization expense related to these intangible assets in future periods is as follows:
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Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The allocation of the intangible assets is shown within the following table:
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Portico | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of December 16, 2021:
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Finite-lived Intangible Assets Amortization Expense | The estimated amortization expense related to these intangible assets in future periods is as follows:
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Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The allocation of the intangible assets is shown within the following table:
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Cash Collateral Pledged (Tables) |
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Schedule of Cash Collateral Pledged | As of December 31, 2022, the Company has the following irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit.
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Investments of Operating Entities and Consolidated Funds - (Tables) |
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Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | As of December 31, 2022 and 2021, securities owned, at fair value consisted of the following:
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Schedule of Derivative Instruments | The Company's long and short exposure to derivatives is as follows:
(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options. (b) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments. (c) Interest rate swap offsetting the Company's floating rate debt on the Company's term loan. See Note 16. The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2022 and 2021. This table does not include the impact of over-collateralization. (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.
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Schedule of Other Investments | As of December 31, 2022 and 2021, other investments included the following:
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Schedule of Other Investments, Portfolio Funds | The portfolio funds, at fair value as of December 31, 2022 and 2021, included the following:
* 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 27. (a)HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. (b)Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated. (c)Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd are hedge funds with a focused and fundamental approach to investing in publicly traded US companies. Both funds permit quarterly withdrawals upon 90 days' notice. (d)Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (e)Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution. (f)Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. (g)BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated. (h)Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice. (i)Cowen Sustainable Investments I LP, Cowen Healthcare Investments II LP, Cowen Healthcare Investments III LP and Cowen Healthcare Investments IV LP are private equity funds. Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights. (j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects. Distributions will be made when the underlying investments are liquidated. (k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated. (l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated. (m)Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice. (n)Gaingels 10X Capital Diversity Fund I, LP is a venture capital fund that primarily invests in portfolio companies embracing diversity and inclusion. Distributions will be made when the underlying investments are liquidated. (o)HCRX Holdings, L.P. is a private operating company focusing primarily on healthcare royalty investments. Distributions upon realization will be made upon an investor's election subsequent to January 1st, 2026. (p)Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy. (q)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.
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Carried Interest | The carried interest as of December 31, 2022 and 2021, included the following:
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Schedule Equity Method Investments | The following table summarizes equity method investments held by the Company:
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Schedule of Securities Sold, Not yet Purchased | As of December 31, 2022 and 2021, securities sold, not yet purchased, at fair value consisted of the following:
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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, 2022 and 2021.
(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.
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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, 2022 and 2021:
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Fair Value, Concentration of Risk |
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Consolidated Funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Investments, Portfolio Funds | Investments in portfolio funds, at fair value As of December 31, 2022 and 2021, investments in portfolio funds, at fair value, included the following:
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Fair Value Measurements for Operating Entities and Consolidated Funds (Tables) |
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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, 2022 and 2021:
(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the acquisition of Quarton International AG "Quarton"), the fourth quarter of 2020 (the acquisition of MHT Partners, LP "MHT") and the fourth quarter of 2021 (the acquisition of Portico Capital Advisors "Portico"), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $12.5 million to $14.9 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million. (c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.
(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 (the Quarton acquisition), the fourth quarter of 2020 (the MHT acquisition) and the fourth quarter of 2021 (the Portico acquisition), the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended through December 31, 2024. For all acquisitions the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton acquisition can range from $10.1 million to $25.0 million. The undiscounted amounts for the MHT acquisition have no minimum or maximum as it is calculated based on revenue. The undiscounted amounts for the Portico acquisition can range from zero to $58.0 million. (c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table includes a roll forward of the amounts for the year ended December 31, 2022 and 2021 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.
(1) Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying consolidated statements of operations. (a) The entity in which the Company is invested completed an initial public offering. (b) Fair market value derived using models and private transactions. (c) The transfers between level 1, level 2 and level 3 are due to the change in the availability of observable inputs. (d) The Company deconsolidated an investment fund.
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Fair Value Inputs, Assets, Quantitative Information | The following table includes quantitative information as of December 31, 2022 and 2021 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments.
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Fair Value Measurements, Nonrecurring | For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value (see Note 2f).
(a)Notes payable and other debt are based on the last broker quote available. (b)The fair market value of level 3 loans is calculated using discounted cash flows where applicable. (c)The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $2.4 million and $0.2 million as of December 31, 2022, respectively, and unamortized discount and unamortized premium of $2.8 million and $0.3 million as of December 31, 2021, respectively.
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Receivables from and payables to brokers, dealers and clearing organizations (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokers and Dealers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Due to (from) Broker-Dealers and Clearing Organizations | As of December 31, 2022 and 2021, amounts receivable from brokers, dealers and clearing organizations include:
As of December 31, 2022 and 2021, amounts payable to brokers, dealers and clearing organizations include:
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Fixed Assets (Tables) |
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Fixed Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | As of December 31, 2022 and 2021, fixed assets consisted of the following:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2022 and 2021:
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Schedule of Finite-Lived Intangible Assets | Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2022 and 2021.
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the Company's intangible assets placed in service as of December 31, 2022 is as follows:
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Other Assets (Tables) |
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets [Table Text Block] | Other assets in Operating Entities are as follows:
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Accounts Payable, Accrued Expenses and Other Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Convertible Debt and Notes Payable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt and Capital Lease Obligations | As of December 31, 2022 and 2021, the Company's outstanding debt was as follows:
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Direct Financing Lease, Lease Income | For the years ended December 31, 2022, 2021 and 2020, quantitative information regarding the Company's finance lease obligations reflected in the accompanying consolidated statements of operations, the supplemental cash flow information and certain other information related to finance leases were as follows:
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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, 2022, are as follows:
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Stockholder's Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022:
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Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in consolidated subsidiaries and investment funds | Redeemable and nonredeemable non-controlling interests in consolidated subsidiaries and investment funds and the related net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds are comprised as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) |
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Revenue from Contracts with Customers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services | For the year ended December 31, 2022, 2021 and 2020, the following tables presents revenues from contracts with customers disaggregated by fee type and segment.
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Insurance and reinsurance (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Reinsurance |
As of December 31, 2022 and 2021, insurance and reinsurance assets and liabilities consisted of the following:
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Schedule of Liability for Unpaid Claims and Claims Adjustment Expense |
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Share-Based Payments, Deferred Compensation and Employee Ownership Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the years ended December 31, 2022 and 2021:
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Income Taxes (Tables) (annual) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022, 2021 and 2020 are as follows:
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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, 2022, 2021, and 2020 are as follows:
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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, 2022 and 2021 are as follows:
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Summary of Operating Loss Carryforwards [Table Text Block] | The Company has the following net operating loss carryforwards at December 31, 2022:
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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:
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Summary of Income Tax Examinations | The following are the major jurisdictions in which the Company has significant business operations and the earliest open tax year subject to examination in these jurisdictions:
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted | The computation of earnings per share is as follows:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease, Lease Income | For the year ended December 31, 2022 and 2021, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statements of operations were as follows:
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Future Minimum Annual Lease and Service Payments | As of December 31, 2022, maturities of the outstanding operating lease liabilities for the Company were as follows:
(a)The Company has entered into various agreements to sublease certain of its premises. (b)During the year ended December 31, 2022, the Company recognized an increase of $12.3 million of operating right-of-use assets and leases liabilities related to facility leases. (c)The Company has assigned a lease but has remained as the guarantor for performance of the assignee's rent payment obligations for the remainder of the term of the assigned lease at the maximum amount of $0.5 million. As of December 31, 2022, future minimum annual service payments for the Company were as follows:
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Other Commitments | The following table summarizes unfunded commitments as of December 31, 2022:
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Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, by Segment | The following table sets forth operating results for the Company's consolidated US GAAP net income (loss) and related reclassifications and adjustments necessary to reconcile to the Company's Economic Income (Loss) measure which represents the Company's Op Co and Asset Co segments' results:
Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense, (iv) depreciation and amortization expense and (v) income taxes presented on an Economic Income (Loss) basis by Segment. The following table sets forth the included segment information on a US GAAP basis with reconciliations to consolidated amounts.
* Includes dividend revenue of $158.7 million, $26.0 million and $17.3 million for the year ended December 31, 2022, 2021 and 2020, respectively. Dividend revenue, consolidated funds, was $0.0 million, $0.0 million and $2.5 million for the year ended December 31, 2022, 2021 and 2020, respectively.
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Regulatory Requirements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokers and Dealers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Net Capital under Securities and Exchange Commission Regulation | As of December 31, 2022, the regulatory net capital, minimum net capital requirement and excess net capital of U.S. regulated broker dealers and swap dealer together with the equivalent of capital requirements and compliance information for foreign broker dealers registered with the FCA and the SFC are presented as follows:
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Guarantees and Off-Balance Sheet Arrangements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees and Off Balance Sheet Arrangements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Borrowing | The Company maintains uncommitted financing arrangements with large financial institutions, the details of which are summarized below as of December 31, 2022.
|
Organization and Business (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022
division
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | segment | 2 |
Number of divisions | division | 4 |
Cash Collateral Pledged (Details) - USD ($) |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Cash collateral pledged | $ 122,687,000 | $ 47,494,000 | $ 110,743,000 |
Letter of credit, borrowing capacity | 425,000,000 | ||
Letters of Credit Outstanding, Amount | 0 | 0 | |
Letter of Credit | Letter of Credit, NY Office 1, Expires December 2023 | |||
Letter of credit, borrowing capacity | 2,309,000 | ||
Letter of Credit | Letter of Credit, Boston Office, Expires November 2023 | |||
Letter of credit, borrowing capacity | 382,000 | ||
Letter of Credit | Letter of Credit, San Francisco Office, Expires November 2023 | |||
Letter of credit, borrowing capacity | 455,000 | ||
Facility Leases | |||
Cash collateral pledged | 3,146,000 | 3,400,000 | |
Collateral Reinsurance Agreement | |||
Cash collateral pledged | 119,500,000 | $ 44,100,000 | |
Collateral Reinsurance Agreement | Letter of Credit | |||
Cash collateral pledged | $ 24,400,000 |
Segregated Cash (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Segregated Cash [Abstract] | |||
Segregated Cash | $ 185,872 | $ 194,701 | $ 185,141 |
Investments of Operating Entities And Consolidated Funds - Operating Entities - Receivable On And Payable For Derivative Contracts, At Fair Value (Details) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022
USD ($)
contract
|
Dec. 31, 2021
USD ($)
contract
|
Dec. 31, 2020
USD ($)
|
|||||||||
Derivative [Line Items] | |||||||||||
Receivable on derivative contracts, at fair value | $ 494,691 | $ 286,135 | |||||||||
Payable for derivative contracts, at fair value | 69,665 | 60,163 | |||||||||
Other Income | |||||||||||
Derivative [Line Items] | |||||||||||
Realized and unrealized gains/(losses) related to derivatives trading activities | (149,500) | (205,500) | $ (146,900) | ||||||||
Receivable on derivatives contracts, at fair value | |||||||||||
Derivative [Line Items] | |||||||||||
Receivable on derivative contracts, at fair value | 494,691 | 286,135 | |||||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1],[2] | (181,650) | (81,742) | ||||||||
Payable for derivatives contracts, at fair value | |||||||||||
Derivative [Line Items] | |||||||||||
Payable for derivative contracts, at fair value | 69,665 | 60,163 | |||||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1],[2] | (161,681) | (92,330) | ||||||||
Futures | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative Liability, Notional Amount | 0 | 9,378 | |||||||||
Payable for derivative contracts, at fair value | 0 | 266 | |||||||||
Currency Forwards | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative Asset, Notional Amount | 7,817 | 10,727 | |||||||||
Receivable on derivative contracts, at fair value | 44 | 80 | |||||||||
Derivative Liability, Notional Amount | 212,485 | 149,575 | |||||||||
Payable for derivative contracts, at fair value | 2,915 | 1,346 | |||||||||
Swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative Asset, Notional Amount | 1,460,575 | 1,950,181 | |||||||||
Receivable on derivative contracts, at fair value | 644,912 | 305,370 | |||||||||
Derivative Liability, Notional Amount | 1,377,169 | 988,329 | |||||||||
Payable for derivative contracts, at fair value | $ 218,747 | $ 114,689 | |||||||||
Options (held long) | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative Asset, Number of Instruments Held | contract | [3] | 116,707 | 217,393 | ||||||||
Receivable on derivative contracts, at fair value | [3] | $ 31,385 | $ 61,219 | ||||||||
Options (held short) | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative Liability, Number of Instruments Held | contract | [3] | 98,069 | 182,440 | ||||||||
Payable for derivative contracts, at fair value | [3] | $ 9,466 | $ 36,192 | ||||||||
Interest rate swap | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative Asset, Number of Instruments Held | contract | [4] | 0 | 285,000,000 | ||||||||
Receivable on derivative contracts, at fair value | [4] | $ 0 | $ 1,208 | ||||||||
Derivative Liability, Notional Amount | [4] | 400,000 | 0 | ||||||||
Payable for derivative contracts, at fair value | [4] | $ 218 | $ 0 | ||||||||
|
Investments of Operating Entities And Consolidated Funds - Operating Entities - Gross And Net Derivative Positions And The Related Offsetting Amount (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||
Receivable on derivative contracts, at fair value | $ 494,691 | $ 286,135 | ||||
Payable for derivative contracts, at fair value | 69,665 | 60,163 | ||||
Receivable on derivatives contracts, at fair value | ||||||
Derivative [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 676,341 | 367,877 | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1],[2] | 181,650 | 81,742 | |||
Receivable on derivative contracts, at fair value | 494,691 | 286,135 | ||||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | [2] | 8,227 | 1,421 | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | [2] | 426,168 | 211,442 | |||
Derivative asset, net of offset | 60,296 | 73,272 | ||||
Payable for derivatives contracts, at fair value | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 231,346 | 152,493 | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1],[2] | 161,681 | 92,330 | |||
Payable for derivative contracts, at fair value | 69,665 | 60,163 | ||||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | [2] | 2,922 | 2,839 | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | [2] | 0 | 0 | |||
Derivative Liability, net of offset | $ 66,743 | $ 57,324 | ||||
|
Investments of Operating Entities And Consolidated Funds - Operating Entities - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Other Income | |||
Derivative [Line Items] | |||
Realized and unrealized gains/(losses) related to derivatives trading activities | $ (149.5) | $ (205.5) | $ (146.9) |
Investments of Operating Entities And Consolidated Funds - Operating Entities - Other Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Investment Holdings [Line Items] | ||||
Other investments | $ 225,183 | $ 274,111 | ||
Portfolio Funds | ||||
Investment Holdings [Line Items] | ||||
Market Value | 132,285 | 137,986 | ||
Other investments | [1] | 132,285 | 137,986 | |
Carried interest | ||||
Investment Holdings [Line Items] | ||||
Other investments | [1] | 65,892 | 88,925 | |
Equity Method Investments | ||||
Investment Holdings [Line Items] | ||||
Other investments | [1] | $ 27,006 | $ 47,200 | |
|
Investments of Operating Entities And Consolidated Funds - Operating Entities - Portfolio Funds (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | $ 225,183 | $ 274,111 | |||||||||||||||||||||||||||||||||||
Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [1] | 132,285 | 137,986 | ||||||||||||||||||||||||||||||||||
Healthcare Royalty Partners | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [2],[3] | 578 | 832 | ||||||||||||||||||||||||||||||||||
Healthcare Royalty Partners II | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [2],[3] | 1,256 | 1,259 | ||||||||||||||||||||||||||||||||||
Eclipse Ventures Fund I, L.P. | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [4] | 5,361 | 5,829 | ||||||||||||||||||||||||||||||||||
Eclipse Venture Fund II, L.P. | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [4] | 2,441 | 2,354 | ||||||||||||||||||||||||||||||||||
Eclipse Continuity Fund I, L.P. | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [4] | 1,587 | 1,641 | ||||||||||||||||||||||||||||||||||
Starboard Value and Opportunity Fund LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[5] | $ 43,958 | 49,252 | ||||||||||||||||||||||||||||||||||
Required notice period, withdrawal | 90 days | ||||||||||||||||||||||||||||||||||||
Starboard Value and Opportunity Fund Ltd | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[5] | $ 2,434 | 2,732 | ||||||||||||||||||||||||||||||||||
Lagunita Biosciences, LLC | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [6] | 2,264 | 5,671 | ||||||||||||||||||||||||||||||||||
Starboard Leaders Fund LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[7] | $ 2,882 | 2,823 | ||||||||||||||||||||||||||||||||||
Unfunded Commitment cancellation | 30 days | ||||||||||||||||||||||||||||||||||||
Formation 8 Partners Fund I LP | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [8] | $ 16,379 | 20,992 | ||||||||||||||||||||||||||||||||||
BDC Fund I Coinvest 1, L.P. | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [9] | 1,250 | 1,250 | ||||||||||||||||||||||||||||||||||
Difesa Partners LP | Portfolio Funds | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [10] | $ 919 | 1,017 | ||||||||||||||||||||||||||||||||||
Difesa Partners LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Required notice period, withdrawal | 90 days | ||||||||||||||||||||||||||||||||||||
Cowen Sustainable Investments I LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[11] | $ 17,004 | 13,102 | ||||||||||||||||||||||||||||||||||
Cowen Healthcare Investments II LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[11] | 11,645 | 13,055 | ||||||||||||||||||||||||||||||||||
Cowen Healthcare Investments III LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[11] | 7,680 | 8,426 | ||||||||||||||||||||||||||||||||||
Cowen Healthcare Investments IV LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[11] | 3,397 | 1,071 | ||||||||||||||||||||||||||||||||||
Elipse SPV I,LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[12] | 1,445 | 1,445 | ||||||||||||||||||||||||||||||||||
Triartisan ES Partners, LLC | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[13] | 2,083 | 1,805 | ||||||||||||||||||||||||||||||||||
Triartisan PFC Partners, LLC | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[14] | 1,163 | 1,112 | ||||||||||||||||||||||||||||||||||
Ramius Merger Fund LLC | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[15] | $ 1,711 | 1,692 | ||||||||||||||||||||||||||||||||||
Required notice period, withdrawal | 45 days | ||||||||||||||||||||||||||||||||||||
Gaingels 10X Capital Diversity Fund I, LP | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | $ 600 | 0 | |||||||||||||||||||||||||||||||||||
HCRX Holdings, L.P. | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | 3,829 | [3],[9] | 0 | ||||||||||||||||||||||||||||||||||
Other Private Investment | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[16] | 121 | 303 | ||||||||||||||||||||||||||||||||||
Other Funds | Portfolio Funds | Affiliated Entity | |||||||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||||||
Other investments | [3],[17] | $ 298 | $ 323 | ||||||||||||||||||||||||||||||||||
|
Investments of Operating Entities and Consolidated Funds - Operating Entities - Carried Interest (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Investment Holdings [Line Items] | ||||
Other investments | $ 225,183 | $ 274,111 | ||
Carried interest | ||||
Investment Holdings [Line Items] | ||||
Other investments | [1] | 65,892 | 88,925 | |
Cowen Healthcare Investments II LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 19,112 | 23,327 | ||
Cowen Healthcare Investments III LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 25,671 | 18,523 | ||
Cowen Sustainable Investments I LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 0 | 7,436 | ||
Cowen Sustainable Investments Offshore I LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 0 | 9,196 | ||
CSI I Prodigy Co-Investment LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 1,000 | 2,436 | ||
CSI PRTA Co-Investment LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 3,677 | 9,535 | ||
Triartisan TGIF Partners LLC | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 4,290 | 4,047 | ||
Triartisan ES Partners, LLC | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 4,475 | 3,401 | ||
Triartisan PFC Partners, LLC | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 7,277 | 9,394 | ||
Triartisan SBE Partners, LLC | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 358 | 0 | ||
Ramius Multi-Strategy Fund LP | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 0 | 587 | ||
Ramius Merger Fund LLC | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 32 | 861 | ||
RCG IO Renergys Sarl | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | 0 | 136 | ||
Other Funds | Carried interest | Affiliated Entity | ||||
Investment Holdings [Line Items] | ||||
Other investments | $ 0 | $ 46 | ||
|
Investments of Operating Entities and Consolidated Funds - Operating Entities - Equity Method Investment - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | |||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 0 | $ 0 | $ 0 | |
Net gains (losses) on other investments | $ 9,613,000 | $ 35,494,000 | $ 18,879,000 |
Investments of Operating Entities and Consolidated Funds - Operating Entities - Equity Method Investment (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 27,006 | $ 47,200 |
Starboard Value LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 20,806 | 36,889 |
Healthcare Royalty GP III, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 1,631 | 1,957 |
HCR Canary Fund GP, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 319 | 458 |
Healthcare Royalty GP IV, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 1,923 | 1,716 |
RCG Longview Debt Fund IV Management, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 391 | 331 |
HCR Overflow Fund GP, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 578 | 839 |
HCRP MGS Account Management, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 472 | 598 |
HCR Stafford Fund GP, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 0 | 2,955 |
HCR Potomac Fund, L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 0 | 925 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 511 | 532 |
HCRX Master GP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 375 | $ 0 |
Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 913,574 | $ 1,201,448 |
Common Stock | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 910,458 | 1,192,396 |
Corporate Bonds | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 31 | 37 |
Preferred Stock | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 3,085 | 9,009 |
Warrants and Rights | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 0 | $ 6 |
Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Sold/Purchased Under Agreements To Repurchase/Resell And Securities Lending And Borrowing Transactions (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||||||
Securities borrowed | $ 1,298,056 | $ 1,704,603 | ||||
Securities Borrowed, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | [1] | 0 | 0 | |||
Securities Borrowed | 1,298,056 | 1,704,603 | ||||
Securities borrowed, additional amounts, asset | 0 | 0 | ||||
Securities Borrowed, Not Offset, Policy Election Deduction | 1,244,834 | 1,652,007 | ||||
Securities Borrowed, Collateral, Obligation to Return Cash | [2] | 0 | 0 | |||
Securities Borrowed, Amount Offset Against Collateral | 53,222 | 52,596 | ||||
Securities Loaned | 1,199,838 | 1,586,572 | ||||
Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | [1] | 0 | 0 | |||
Securities Loaned, Gross amounts recognized | 1,199,838 | 1,586,572 | ||||
Securities Loaned, Additional Amounts Available | 0 | 0 | ||||
Securities Loaned, Not Offset, Policy Election Deduction | 1,199,838 | 1,586,572 | ||||
Securities Loaned, Collateral, Right to Reclaim Cash | [2] | 0 | 0 | |||
Securities Loaned, Amount Offset Against Collateral | 0 | 0 | ||||
Securities Purchased under Agreements to Resell | 121,718 | 0 | ||||
Securities Sold under Agreements to Repurchase, Gross | 0 | |||||
Securities purchased under agreements to resell, additional amounts | 0 | |||||
Securities Purchased under Agreements to Resell, Fair Value of Collateral | 120,953 | |||||
Securities borrowed, cash collateral pledged | 0 | |||||
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Securities | 765 | |||||
Securities Sold under Agreements to Repurchase | 133,130 | 63,469 | ||||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | [1] | 0 | 0 | |||
Securities sold under agreements to repurchase, additional amounts | 0 | 0 | ||||
Securities sold under agreements to repurchase, Fair value | 133,130 | 63,469 | ||||
Securities Sold under Agreements to Repurchase, Cash collateral pledged | [2] | 0 | 0 | |||
Securities Loaned, Net amounts | $ 0 | $ 0 | ||||
|
Investments of Operating Entities and Consolidated Funds - Operating Entities - Gross Obligations For Securities Loaned And Securities Sold Under Agreements To Repurchase (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | $ 1,199,838 | $ 1,586,572 |
Securities Purchased under Agreements to Resell | 121,718 | 0 |
Securities sold, not yet purchased, at fair value | 913,574 | 1,201,448 |
Common Stock | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 992,173 | 1,570,835 |
Securities sold, not yet purchased, at fair value | 63,469 | |
Common Stock | Open and Overnight | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 992,173 | 1,570,835 |
Securities sold, not yet purchased, at fair value | 0 | |
Common Stock | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities sold, not yet purchased, at fair value | 20,906 | |
Common Stock | 31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities sold, not yet purchased, at fair value | 42,563 | |
Common Stock | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities sold, not yet purchased, at fair value | 0 | |
Corporate Bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 207,665 | 15,737 |
Securities Purchased under Agreements to Resell | 121,718 | |
Securities sold, not yet purchased, at fair value | 133,130 | |
Corporate Bonds | Open and Overnight | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 207,665 | 15,737 |
Securities Purchased under Agreements to Resell | 121,718 | |
Securities sold, not yet purchased, at fair value | 72,474 | |
Corporate Bonds | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities Purchased under Agreements to Resell | 0 | |
Securities sold, not yet purchased, at fair value | 60,656 | |
Corporate Bonds | 31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities Purchased under Agreements to Resell | 0 | |
Securities sold, not yet purchased, at fair value | 0 | |
Corporate Bonds | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | $ 0 |
Securities Purchased under Agreements to Resell | 0 | |
Securities sold, not yet purchased, at fair value | $ 0 |
Investments of Operating Entities and Consolidated Funds - Operating Entities - Variable Interest Entities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Assets | $ 8,828,774 | $ 8,748,814 |
Liabilities | 7,480,929 | 7,452,460 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 8,900,000 | 9,700,000 |
Liabilities | 444,500 | 744,500 |
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | 137,000 | 165,500 |
Maximum exposure regarding nonconsolidated variable interest entities | $ 215,000 | $ 233,600 |
Investments of Operating Entities And Consolidated Funds - Consolidated Funds - Other Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | $ 49,832 | $ 99,067 |
Enterprise LP | ||
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | $ 49,832 | $ 99,067 |
Investments of Operating Entities And Consolidated Funds - Consolidated Funds - Indirect Concentration of the Underlying Investments Held by Consolidated Funds (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity Securities | Linkem | ITALY | Wireless Broadband | ||
Investment Holdings [Line Items] | ||
Percentage of Stockholders' Equity | 8.22% | |
Market Value | $ 83,537 | $ 83,537 |
Preferred Stock | Polysign | UNITED STATES | Technology Sector | ||
Investment Holdings [Line Items] | ||
Percentage of Stockholders' Equity | 5.37% | |
Market Value | $ 57,165 |
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, 2022 |
Dec. 31, 2021 |
Dec. 16, 2021 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | $ 494,691 | $ 286,135 | ||||||||||||
Other investments | 225,183 | 274,111 | ||||||||||||
Other Investments, Consolidated Funds | 49,832 | 99,067 | ||||||||||||
Investments | 3,193,900 | 3,320,055 | ||||||||||||
Securities sold, not yet purchased, at fair value | 913,574 | 1,201,448 | ||||||||||||
Payable for derivative contracts, at fair value | 69,665 | 60,163 | ||||||||||||
Contingent Consideration Payable | 38,648 | 62,223 | ||||||||||||
Quarton | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 12,500 | 10,100 | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 14,900 | 25,000 | ||||||||||||
Portico | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 0 | 0 | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 58,000 | 58,000 | ||||||||||||
Futures | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | 266 | ||||||||||||
Options (held long) | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | [1] | 31,385 | 61,219 | |||||||||||
Interest rate swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | [2] | 0 | 1,208 | |||||||||||
Payable for derivative contracts, at fair value | [2] | 218 | 0 | |||||||||||
Swaps | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 644,912 | 305,370 | ||||||||||||
Payable for derivative contracts, at fair value | 218,747 | 114,689 | ||||||||||||
Portfolio Funds | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Other investments | [3] | 132,285 | 137,986 | |||||||||||
Other Investments, Consolidated Funds | [3] | 49,832 | 99,067 | |||||||||||
Carried interest | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Other investments | [3] | 65,892 | 88,925 | |||||||||||
Equity Method Investments | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Other investments | [3] | 27,006 | 47,200 | |||||||||||
Fair Value, Measurements, Recurring | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Assets, Fair Value Disclosure, Recurring | 2,918,885 | 2,946,877 | ||||||||||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 1,021,887 | 1,323,834 | ||||||||||||
Fair Value, Measurements, Recurring | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Assets, Fair Value Disclosure, Recurring | 1,952,120 | 2,516,383 | ||||||||||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 919,208 | 1,234,450 | ||||||||||||
Fair Value, Measurements, Recurring | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Assets, Fair Value Disclosure, Recurring | 870,404 | 329,949 | ||||||||||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 224,992 | 116,072 | ||||||||||||
Fair Value, Measurements, Recurring | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Assets, Fair Value Disclosure, Recurring | 278,011 | 182,287 | ||||||||||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 39,368 | 65,642 | ||||||||||||
Fair Value, Measurements, Recurring | Level 3 | Portico | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Contingent Consideration Payable | $ 20,700 | |||||||||||||
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 | 3,085 | 9,009 | ||||||||||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 4 | 9,009 | ||||||||||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 3,081 | 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 | 910,458 | 1,192,396 | ||||||||||||
Fair Value, Measurements, Recurring | Common Stock | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 910,458 | 1,192,396 | ||||||||||||
Fair Value, Measurements, Recurring | Common Stock | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 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 | 31 | 37 | ||||||||||||
Fair Value, Measurements, Recurring | Corporate Bonds | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Corporate Bonds | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 31 | 37 | ||||||||||||
Fair Value, Measurements, Recurring | Corporate Bonds | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 0 | 6 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 0 | 6 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Contingent liability payable | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Contingent Consideration Payable | 38,648 | [4] | 62,223 | |||||||||||
Fair Value, Measurements, Recurring | Contingent liability payable | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Contingent Consideration Payable | 0 | [4] | 0 | |||||||||||
Fair Value, Measurements, Recurring | Contingent liability payable | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Contingent Consideration Payable | 0 | [4] | 0 | |||||||||||
Fair Value, Measurements, Recurring | Contingent liability payable | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Contingent Consideration Payable | 38,648 | [4] | 62,223 | |||||||||||
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 266 | |||||||||||||
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 266 | |||||||||||||
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | |||||||||||||
Fair Value, Measurements, Recurring | Futures | Derivative Liabilities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | |||||||||||||
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 2,915 | 1,346 | ||||||||||||
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 2,915 | 1,346 | ||||||||||||
Fair Value, Measurements, Recurring | Currency forward | Derivative Liabilities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Equity Swap | Derivative Liabilities | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 57,066 | 22,359 | ||||||||||||
Fair Value, Measurements, Recurring | Equity Swap | Derivative Liabilities | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Equity Swap | Derivative Liabilities | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 218,747 | 114,689 | ||||||||||||
Fair Value, Measurements, Recurring | Equity Swap | Derivative Liabilities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | 0 | ||||||||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [5] | (161,681) | (92,330) | |||||||||||
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 9,466 | 36,192 | ||||||||||||
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 8,746 | 32,773 | ||||||||||||
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Options (held long) | Derivative Liabilities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 720 | 3,419 | ||||||||||||
Fair Value, Measurements, Recurring | Interest rate swap | Derivative Liabilities | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 218 | |||||||||||||
Fair Value, Measurements, Recurring | Interest rate swap | Derivative Liabilities | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | |||||||||||||
Fair Value, Measurements, Recurring | Interest rate swap | Derivative Liabilities | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 218 | |||||||||||||
Fair Value, Measurements, Recurring | Interest rate swap | Derivative Liabilities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Payable for derivative contracts, at fair value | 0 | |||||||||||||
Fair Value, Measurements, Recurring | Swaps | Derivative Liabilities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | (161,681) | (92,330) | ||||||||||||
Fair Value, Measurements, Recurring | Government Securities | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 113,529 | 16,002 | ||||||||||||
Fair Value, Measurements, Recurring | Government Securities | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 113,529 | 16,002 | ||||||||||||
Fair Value, Measurements, Recurring | Government Securities | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Government Securities | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Preferred Stock | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 196,807 | 137,757 | ||||||||||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 7 | 12,299 | ||||||||||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 3,496 | 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 | 193,304 | 125,458 | ||||||||||||
Fair Value, Measurements, Recurring | Common Stock | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 1,802,082 | 2,425,993 | ||||||||||||
Fair Value, Measurements, Recurring | Common Stock | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 1,775,689 | 2,396,041 | ||||||||||||
Fair Value, Measurements, Recurring | Common Stock | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 1,566 | 121 | ||||||||||||
Fair Value, Measurements, Recurring | Common Stock | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 24,827 | 29,831 | ||||||||||||
Fair Value, Measurements, Recurring | Convertible Bonds | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 13,479 | 5,250 | ||||||||||||
Fair Value, Measurements, Recurring | Convertible Bonds | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Convertible Bonds | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 1,511 | 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 | 11,968 | 5,250 | ||||||||||||
Fair Value, Measurements, Recurring | Corporate Bonds | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 219,316 | 21,468 | ||||||||||||
Fair Value, Measurements, Recurring | Corporate Bonds | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 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 | 215,907 | 19,049 | ||||||||||||
Fair Value, Measurements, Recurring | Corporate Bonds | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 3,409 | 2,419 | ||||||||||||
Fair Value, Measurements, Recurring | Trade Claims | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 5,440 | 2,988 | ||||||||||||
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 | 5,440 | 2,988 | ||||||||||||
Fair Value, Measurements, Recurring | Term Loans | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 12,468 | 4,121 | ||||||||||||
Fair Value, Measurements, Recurring | Term Loans | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Term Loans | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 2,502 | 4,121 | ||||||||||||
Fair Value, Measurements, Recurring | Term Loans | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Debt Securities, Trading | 9,966 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 59,051 | 46,459 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 32,114 | 31,056 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Warrants and Rights | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 26,937 | 15,403 | ||||||||||||
Fair Value, Measurements, Recurring | Private Investments | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 2,022 | 704 | ||||||||||||
Fair Value, Measurements, Recurring | Private Investments | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Private Investments | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 884 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Private Investments | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Trading Securities, Equity | 1,138 | 704 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 44 | 80 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 44 | 80 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Currency forward | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 463,262 | 223,628 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swap | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swap | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 644,033 | 305,370 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Equity Swap | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 879 | 0 | ||||||||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [5] | (181,650) | (81,742) | |||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 31,385 | 61,219 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 30,781 | 60,985 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 461 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Options (held long) | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 143 | 234 | ||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 1,208 | |||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | Level 1 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 0 | |||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | Level 2 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 1,208 | |||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Interest rate swap | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Receivable on derivative contracts, at fair value | 0 | |||||||||||||
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 3 | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ (181,650) | $ (81,742) | ||||||||||||
|
Fair Value Measurements for Operating Entities and Consolidated Funds - Unobservable Input Roll Forward (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||||||
Corporate Bonds | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Liability Value | $ 0 | $ 704 | |||||||||||||
Liability, Transfers In | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | ||||||||||||||
Liability, Purchases | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | (399) | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (305) | ||||||||||||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [1] | 0 | |||||||||||||
Options (held short) | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Liability Value | $ 720 | 3,419 | 3,915 | ||||||||||||
Liability, Transfers In | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | 0 | |||||||||||||
Liability, Purchases | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (2,699) | (496) | |||||||||||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [1] | (2,699) | (496) | ||||||||||||
Government Debt Securities | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Liability Value | 0 | 1,500 | |||||||||||||
Liability, Transfers In | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | ||||||||||||||
Liability, Purchases | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | (1,569) | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 69 | ||||||||||||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [1] | 0 | |||||||||||||
Contingent liability payable | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Liability Value | 38,648 | 62,223 | 36,718 | ||||||||||||
Liability, Transfers In | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | 0 | |||||||||||||
Liability, Purchases | 0 | 20,729 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | (29,169) | (10,077) | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 5,594 | 14,853 | |||||||||||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [1] | 5,594 | 14,853 | ||||||||||||
Equity Swap | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Liability Value | 879 | 0 | |||||||||||||
Liability, Transfers In | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | ||||||||||||||
Liability, Purchases | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 879 | ||||||||||||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 879 | ||||||||||||||
Preferred Stock | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 193,304 | 125,458 | 59,967 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | (1,531) | [2] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 26,164 | 78,389 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (1,347) | (9,828) | |||||||||||||
Realized and unrealized gains (losses), asset | 43,029 | (1,539) | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | 43,029 | (2,570) | ||||||||||||
Common Stock | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 24,827 | 29,831 | 23,786 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 893 | [3] | 3,409 | [4] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | (7,357) | [2],[5] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 5,031 | 16,245 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (950) | (13,582) | |||||||||||||
Realized and unrealized gains (losses), asset | (9,978) | 7,330 | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | (13,736) | 5,517 | ||||||||||||
Common Stock | Consolidated Funds | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 0 | 2,951 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | [4] | (4,000) | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | ||||||||||||||
Realized and unrealized gains (losses), asset | 1,049 | ||||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | 0 | |||||||||||||
Convertible Bonds | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 11,968 | 5,250 | 6,040 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | (4,031) | [5] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 6,636 | 11,802 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | (11,159) | |||||||||||||
Realized and unrealized gains (losses), asset | 82 | 2,598 | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | 0 | (975) | ||||||||||||
Corporate Bonds | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 3,409 | 2,419 | 135 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 1,082 | [3] | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 620 | 2,414 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (460) | (103) | |||||||||||||
Realized and unrealized gains (losses), asset | (252) | (27) | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | 64 | 6 | ||||||||||||
Options (held long) | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 143 | 234 | 251 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | |||||||||||||
Realized and unrealized gains (losses), asset | (91) | (17) | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | (90) | (17) | ||||||||||||
Term Loans | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 9,966 | 0 | 12,623 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 9,700 | 638 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | (12,162) | |||||||||||||
Realized and unrealized gains (losses), asset | 266 | (1,099) | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | 267 | [1] | 0 | ||||||||||||
Warrants and Rights | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 26,937 | 15,403 | 6,547 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 3,806 | [3],[4] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | (719) | [2],[3] | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 2,274 | 10,706 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (1,212) | (1,610) | |||||||||||||
Realized and unrealized gains (losses), asset | 11,191 | (4,046) | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | 14,614 | (2,812) | ||||||||||||
Warrants and Rights | Consolidated Funds | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 0 | 5,806 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (4,447) | ||||||||||||||
Realized and unrealized gains (losses), asset | (1,359) | ||||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | 0 | |||||||||||||
Trade Claims | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 5,440 | 2,988 | 8,713 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | (2,145) | [3] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 4,304 | 3,056 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (647) | (4,946) | |||||||||||||
Realized and unrealized gains (losses), asset | (1,205) | (1,690) | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | [1] | (1,561) | (2,757) | ||||||||||||
Private Investments | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||
Balance Asset Value | 1,138 | 704 | $ 642 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 543 | [3] | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 8,311 | 707 | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (8,978) | (1,462) | |||||||||||||
Realized and unrealized gains (losses), asset | 1,101 | 274 | |||||||||||||
Change in Unrealized Gain (Loss), instruments still held, asset | $ 405 | $ 0 | |||||||||||||
|
Fair Value Measurements for Operating Entities and Consolidated Funds - Fair Value Inputs, Unobservable Inputs, Quantitative Information (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
times
|
Dec. 31, 2020
USD ($)
|
||
---|---|---|---|---|---|
Contingent liability payable | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | $ 38,648 | $ 62,223 | $ 36,718 | ||
Trade Claims | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 5,440 | 2,988 | 8,713 | ||
Options (held long) | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 143 | 234 | 251 | ||
Warrants and Rights | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 26,937 | 15,403 | 6,547 | ||
Corporate Bonds | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 3,409 | 2,419 | $ 135 | ||
Level 3 | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 278,011 | 182,287 | |||
Balance Liability Value | $ 39,368 | $ 65,642 | |||
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.068 | 0.07 | |||
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.185 | 0.15 | |||
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.11 | 0.12 | |||
Level 3 | Contingent liability payable | Discount Cash Flow and Monte Carlo Technique | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | $ 38,648 | $ 62,223 | |||
Level 3 | Contingent liability payable | Volatility | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.21 | 0.20 | |||
Level 3 | Contingent liability payable | Volatility | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.24 | 0.24 | |||
Level 3 | Contingent liability payable | Volatility | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.22 | 0.22 | |||
Level 3 | Common and Preferred Stock | Discounted Cash Flow and Market Approach Valuation Techniques | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 61,807 | $ 76,491 | |||
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.115 | 0.125 | |||
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.125 | 0.20 | |||
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.12 | 0.13 | |||
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 3.7 | 6.25 | |||
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 9.5 | 6.75 | |||
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.55 | 6.5 | |||
Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 1,876 | $ 2,376 | |||
Level 3 | Options (held long) | Discounted Cash Flow and Market Approach Valuation Techniques | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 1,022 | $ 234 | |||
Level 3 | Options (held long) | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.115 | 0.125 | |||
Level 3 | Options (held long) | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.125 | 0.135 | |||
Level 3 | Options (held long) | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.12 | 0.13 | |||
Level 3 | Warrants and Rights | Discounted Cash Flow and Market Approach Valuation Techniques | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 10,351 | $ 4,483 | |||
Level 3 | Warrants and Rights | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.115 | 0.125 | |||
Level 3 | Warrants and Rights | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.125 | 0.135 | |||
Level 3 | Warrants and Rights | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.120 | 0.13 | |||
Level 3 | Warrants and Rights | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.0725 | 0.0625 | |||
Level 3 | Warrants and Rights | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.0775 | 0.0675 | |||
Level 3 | Warrants and Rights | Valuation, Market Approach | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.075 | 0.065 | |||
Level 3 | Warrants and Rights | Black Scholes Model | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.45 | 0.90 | |||
Level 3 | Warrants and Rights | Black Scholes Model | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 1.70 | 1 | |||
Level 3 | Warrants and Rights | Black Scholes Model | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.711 | 0.95 | |||
Level 3 | Corporate Bonds | Discounted Cash Flow and Market Approach Valuation Techniques | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 4,570 | ||||
Level 3 | Corporate Bonds | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.115 | ||||
Level 3 | Corporate Bonds | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.125 | ||||
Level 3 | Corporate Bonds | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.12 | ||||
Level 3 | Corporate Bonds | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.25 | ||||
Level 3 | Corporate Bonds | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.75 | ||||
Level 3 | Corporate Bonds | Valuation, Market Approach | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.5 | ||||
Level 3 | Other Investments | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | [1] | $ 198,385 | $ 98,703 | ||
Level 3 | Options (held long) | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.25 | 6.25 | |||
Level 3 | Options (held long) | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.75 | 6.75 | |||
Level 3 | Options (held long) | Valuation, Market Approach | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 7.5 | 6.5 | |||
Level 3 | Options (held short) | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.0401 | ||||
Level 3 | Options (held short) | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.0401 | ||||
Fair Value, Measurements, Recurring | Level 3 | Options (held short) | Derivative Liabilities | Valuation Technique, Option Pricing Model | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | $ 720 | $ 3,419 | |||
Discount rate | Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.54 | 0.40 | |||
Discount rate | Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.54 | 0.40 | |||
Volatility | Level 3 | Options (held long) | Valuation Technique, Option Pricing Model | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.45 | ||||
Volatility | Level 3 | Options (held long) | Valuation Technique, Option Pricing Model | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.45 | ||||
Volatility | Level 3 | Options (held short) | Valuation Technique, Option Pricing Model | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.35 | 0.35 | |||
Volatility | Level 3 | Options (held short) | Valuation Technique, Option Pricing Model | Weighted Average | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Measurement Input | 0.35 | 0.35 | |||
|
Fair Value Measurements for Operating Entities and Consolidated Funds - Carrying Value Disclosures (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||
---|---|---|---|---|---|---|---|
Cash and cash equivalents | $ 1,139,652 | $ 914,343 | $ 645,169 | ||||
Cash collateral pledged | 122,687 | 47,494 | 110,743 | ||||
Segregated Cash | 185,872 | 194,701 | 185,141 | ||||
Securities Purchased under Agreements to Resell | 121,718 | 0 | |||||
Securities borrowed | 1,298,056 | 1,704,603 | |||||
Loans Receivable, Net | 5,254 | 4,858 | |||||
Cash and cash equivalents, Consolidated Funds | 30 | 296 | $ 417 | ||||
Securities Sold under Agreements to Repurchase | 133,130 | 63,469 | |||||
Securities sold under agreements to repurchase, Fair value | 133,130 | 63,469 | |||||
Securities Loaned | 1,199,838 | 1,586,572 | |||||
Long-term Debt | 620,161 | 623,371 | |||||
Notes Payable, Other Payables | |||||||
Unamortized discount | 2,400 | 2,800 | |||||
Debt Instrument, Unamortized Premium | 200 | 300 | |||||
Level 1 | |||||||
Cash and cash equivalents, Fair Value | 1,139,652 | 914,343 | |||||
Segregated cash fair value disclosures | 185,872 | 194,701 | |||||
Cash and cash equivalents, Consolidated Funds, Fair Value | 30 | 296 | |||||
Level 2 | |||||||
Cash collateral pledged, Fair Value | 122,687 | 47,494 | |||||
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 121,718 | 0 | |||||
Securities Borrowed, Fair Value Disclosure | 1,298,056 | 1,704,603 | |||||
Securities sold under agreements to repurchase, Fair value | 133,130 | 63,469 | |||||
Securities loaned, fair value disclosure | 1,199,838 | 1,586,572 | |||||
Notes payable and other debt, Fair Value | [1] | 642,701 | 655,229 | ||||
Level 3 | |||||||
Loans Receivable, Fair Value Disclosure | [2] | $ 5,254 | $ 4,858 | ||||
|
Deposits with Clearing Organizations, Brokers and Banks (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deposits with Clearing Organizations, Brokers and Banks [Abstract] | ||
Deposits with clearing organizations, brokers and banks | $ 87,932 | $ 111,857 |
Receivables from and payables to brokers, dealers and clearing organizations (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Brokers and Dealers [Abstract] | ||
Broker-dealers | $ 1,789,526 | $ 1,533,713 |
Securities failed to deliver | 25,031 | 17,851 |
Clearing organizations | 43,915 | 56,075 |
Securities borrowed/loaned interest receivable | 6,353 | 6,708 |
Receivable from brokers, dealers and clearing organizations | 1,864,825 | 1,614,347 |
Broker-dealers | 720,138 | 483,112 |
Securities failed to receive | 26,984 | 57,894 |
Clearing organizations | 27,956 | 37,925 |
Securities borrowed/loaned interest payable | 8,831 | 7,622 |
Payables to brokers, dealers and clearing organizations | $ 783,909 | $ 586,553 |
Receivable from and Payable to Customers (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables and Payable to Customers [Abstract] | ||
Receivable from customers | $ 41,671 | $ 159,418 |
Payable to customers | $ 2,663,414 | $ 2,432,612 |
Fixed Assets (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Property, Plant and Equipment [Line Items] | |||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization | $ 76,223,000 | $ 75,993,000 | $ 76,223,000 | $ 75,993,000 | |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 3,737,000 | 6,468,000 | 3,737,000 | 6,468,000 | |
Less: Accumulated depreciation and amortization | (52,816,000) | (50,017,000) | (52,816,000) | (50,017,000) | |
Fixed assets, net | 23,407,000 | 25,976,000 | 23,407,000 | 25,976,000 | |
Depreciation, Amortization and Accretion, Net | 11,500,000 | 11,000,000 | $ 9,600,000 | ||
Finance Lease, Right-of-Use Asset, Amortization | 1,109,000 | 1,274,000 | $ 1,232,000 | ||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 3,000,000 | 4,700,000 | 3,000,000 | 4,700,000 | |
Telecommunication and computer equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 10,545,000 | 9,379,000 | 10,545,000 | 9,379,000 | |
Computer software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 13,684,000 | 13,715,000 | 13,684,000 | 13,715,000 | |
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 4,026,000 | 3,607,000 | 4,026,000 | 3,607,000 | |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 44,193,000 | 42,749,000 | 44,193,000 | 42,749,000 | |
Other Noncurrent Assets | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 38,000 | 75,000 | $ 38,000 | $ 75,000 | |
Airplane and related equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Payments to Acquire Productive Assets | $ 4,500,000 | ||||
Gain (Loss) on Disposition of Other Assets | $ 300,000 |
Goodwill and Intangibles Schedule of Goodwill by Segment (Details) (Annual) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 16, 2021 |
Oct. 01, 2020 |
|
Goodwill [Line Items] | |||||
Goodwill, gross | $ 251,469 | $ 251,469 | $ 164,548 | ||
Accumulated impairment charges | (17,464) | (17,464) | (17,464) | ||
Goodwill | 234,005 | 234,005 | 147,084 | ||
Recognized goodwill | 0 | 86,921 | |||
Goodwill Impairment | 0 | 0 | |||
Asset Impairment Charges | 0 | 0 | 2,425 | ||
Amortization of Intangible Assets | 16,200 | 8,000 | 13,000 | ||
Portico | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 86,921 | ||||
Recognized goodwill | 86,900 | ||||
Finite-lived Intangible Assets Acquired | $ 19,900 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 7 days | ||||
Amortization of Intangible Assets | $ 9,500 | 400 | |||
Portico | Minimum | |||||
Goodwill [Line Items] | |||||
Estimated average remaining useful lives | 1 year | ||||
Portico | Maximum | |||||
Goodwill [Line Items] | |||||
Estimated average remaining useful lives | 4 years | ||||
MHT Partners | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 9,356 | ||||
Recognized goodwill | 9,400 | ||||
Finite-lived Intangible Assets Acquired | $ 1,200 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 2 months 1 day | ||||
Amortization of Intangible Assets | $ 300 | $ 300 | 100 | ||
MHT Partners | Minimum | |||||
Goodwill [Line Items] | |||||
Estimated average remaining useful lives | 3 years | ||||
MHT Partners | Maximum | |||||
Goodwill [Line Items] | |||||
Estimated average remaining useful lives | 5 years | ||||
Investment Bank Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill, gross | $ 228,764 | 228,764 | 141,843 | ||
Accumulated impairment charges | (9,485) | (9,485) | (9,485) | ||
Goodwill | 219,279 | 219,279 | 132,358 | ||
Recognized goodwill | 0 | 86,921 | |||
Goodwill Impairment | 0 | 0 | |||
Cowen Investment Management Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill, gross | 22,705 | 22,705 | 22,705 | ||
Accumulated impairment charges | (7,979) | (7,979) | (7,979) | ||
Goodwill | 14,726 | 14,726 | $ 14,726 | ||
Recognized goodwill | 0 | 0 | |||
Goodwill Impairment | $ 0 | $ 0 |
Goodwill and Intangibles Schedule of Intangible Assets (Details) (Annual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 16,200 | $ 8,000 | $ 13,000 |
Intangible assets, accumulated amortization (in dollars) | (38,926) | (33,219) | |
Intangible Assets, Net | 31,337 | 44,167 | |
Estimated intangible assets acquired | 70,263 | 77,386 | |
Asset Impairment Charges | 0 | 0 | $ 2,425 |
Impairment of Intangible Assets, Finite-lived | 1,900 | ||
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, accumulated amortization (in dollars) | (491) | (970) | |
Intangible Assets, Net | 40 | 461 | |
Estimated intangible assets acquired | 531 | 1,431 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, accumulated amortization (in dollars) | (29,854) | (25,121) | |
Intangible Assets, Net | 24,066 | 32,513 | |
Estimated intangible assets acquired | $ 53,920 | 57,634 | |
Backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 1 year | ||
Intangible assets, accumulated amortization (in dollars) | $ (6,100) | (254) | |
Intangible Assets, Net | 0 | 5,846 | |
Estimated intangible assets acquired | $ 6,100 | 6,100 | |
Non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 5 years | ||
Intangible assets, accumulated amortization (in dollars) | $ (155) | (86) | |
Intangible Assets, Net | 189 | 258 | |
Estimated intangible assets acquired | $ 344 | 344 | |
Intellectual Property | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 8 years | ||
Intangible assets, accumulated amortization (in dollars) | $ (2,326) | (1,061) | |
Intangible Assets, Net | 7,042 | 4,959 | |
Estimated intangible assets acquired | 9,368 | 6,020 | |
Software Development | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, accumulated amortization (in dollars) | 0 | (5,727) | |
Intangible Assets, Net | 0 | 130 | |
Estimated intangible assets acquired | $ 0 | $ 5,857 | |
Minimum | Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 1 year | ||
Minimum | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 4 years | ||
Minimum | Software Development | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 3 years | ||
Maximum | Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 3 years | ||
Maximum | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 14 years | ||
Maximum | Software Development | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Estimated average remaining useful lives | 10 years |
Goodwill and Intangibles Amortization of Intangible Assets (Details) (Annual) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 8,368 |
2024 | 8,114 |
2025 | 6,953 |
2026 | 3,017 |
2027 | 1,705 |
Thereafter | 3,180 |
Finite-Lived Intangible Assets, Net | $ 31,337 |
Other Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Assets [Abstract] | ||
Prepaid Expense | $ 28,305 | $ 21,349 |
Tax receivables | 11,806 | 6,971 |
Interest and dividends receivable | 15,210 | 2,147 |
Accounts Receivable, Sale | 4,000 | 0 |
Other Assets, Miscellaneous | 25,642 | 24,288 |
Other Assets | $ 84,963 | $ 54,755 |
Commission Management Payable (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Commission Management Payable [Abstract] | ||
Commission management payable | $ 115,853 | $ 102,990 |
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Payables and Accruals [Abstract] | ||
Contingent Consideration Payable | $ 38,648 | $ 62,223 |
Interest and Dividends Payable | 34,224 | 28,948 |
Professional Fees Payable | 21,394 | 11,229 |
Fees Payable | 1,577 | 7,740 |
Accrued Income Taxes | 18,426 | 20,540 |
Deferred Income | 3,785 | 6,051 |
SEC fees payable | 14,850 | 10,804 |
Software contracts payable | 8,583 | 6,263 |
Estimated Litigation Liability | 0 | 1,082 |
Accrued expenses and accounts payable | 12,428 | 9,939 |
Accounts payable, accrued expenses and other liabilities | $ 153,915 | $ 164,819 |
Convertible Debt and Notes Payable - Outstanding Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
Note payable | $ 174,524 | $ 174,015 |
Term Loan | 432,265 | 435,147 |
Other Notes Payable | $ 12,699 | $ 12,537 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Outstanding debt | Outstanding debt |
Finance Lease, Liability | $ 673 | $ 1,672 |
Outstanding debt | $ 620,161 | $ 623,371 |
Convertible Debt and Notes Payable - Convertible Debt (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 24, 2021 |
Dec. 31, 2020 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 14, 2017 |
|
Debt and Capital Lease Obligations [Line Items] | ||||||
Gain/(loss) on debt extinguishment | $ 0 | $ (4,538,000) | $ 2,719,000 | |||
Amortization of debt discount (premium) | $ 309,000 | 6,727,000 | 4,490,000 | |||
2022 convertible note | Convertible Debt | ||||||
Debt and Capital Lease Obligations [Line Items] | ||||||
Debt Instrument, Face Amount | $ 135,000,000 | |||||
Interest rate | 3.00% | |||||
Debt Instrument, Convertible, Conversion Price | $ 17.375 | |||||
Unamortized discount | $ 5,100,000 | $ 23,400,000 | ||||
Debt Instrument, Repurchased Face Amount | $ 88,100,000 | $ 46,900,000 | 46,900,000 | |||
Extinguishment of Debt, Amount | 70,500,000 | |||||
Write off of pro rate unamortized discount while extinguishing debt | 3,600,000 | |||||
Write off of Deferred Debt Issuance Cost | 400,000 | |||||
Equity portion of convertible note extinguishment | 29,600,000 | |||||
Gain/(loss) on debt extinguishment | $ 2,700,000 | |||||
Debt instrument, redemption price, percentage | 100.00% | |||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 33.35% | |||||
Debt Issuance Costs, Net | $ 500,000 | |||||
Amortization of debt discount (premium) | 6,700,000 | 4,600,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 7.13% | |||||
Debt Issuance Costs, Gross | $ 2,200,000 | |||||
Interest Expense | $ 1,200,000 | $ 4,000,000 | ||||
2022 convertible note | Convertible Debt | Common Stock Class A | ||||||
Debt and Capital Lease Obligations [Line Items] | ||||||
Share settlement of convertible notes (in shares) | 2,938,841 |
Convertible Debt and Notes Payable - Notes Payable (Details) - USD ($) |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Oct. 31, 2021 |
Mar. 24, 2021 |
Sep. 30, 2019 |
May 07, 2019 |
Dec. 31, 2018 |
Jun. 11, 2018 |
Dec. 14, 2017 |
Dec. 08, 2017 |
|
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Gain/(loss) on debt extinguishment | $ 0 | $ (4,538,000) | $ 2,719,000 | ||||||||
2024 Notes | Senior Notes | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 53,000,000 | ||||||||||
Interest rate | 7.25% | ||||||||||
Debt Instrument, Additional amount issued | $ 25,000,000 | ||||||||||
Debt Instrument, Unamortized Premium | 500,000 | ||||||||||
Interest Expense, Debt, Excluding Amortization | 5,700,000 | 5,700,000 | 5,700,000 | ||||||||
Debt Issuance Costs, Gross | $ 600,000 | $ 1,500,000 | |||||||||
2033 Notes | Senior Notes | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 10,000,000 | $ 90,000,000 | |||||||||
Interest rate | 7.75% | ||||||||||
Interest Expense, Debt, Excluding Amortization | $ 7,700,000 | 7,700,000 | 7,700,000 | ||||||||
Debt Issuance Costs, Gross | $ 3,600,000 | ||||||||||
2027 Notes | Senior Notes | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 138,000,000 | $ 18,000,000 | $ 120,000,000 | ||||||||
Interest rate | 8.25% | 7.35% | |||||||||
Interest Expense, Debt, Excluding Amortization | 2,500,000 | $ 10,100,000 | |||||||||
Debt Issuance Costs, Gross | $ 5,000,000 | ||||||||||
Gain/(loss) on debt extinguishment | $ 4,400,000 |
Convertible Debt and Notes Payable - Term Loans, Other Notes Payable and Revolver (Details) - USD ($) |
1 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Jan. 31, 2022 |
Dec. 15, 2021 |
Mar. 24, 2021 |
Sep. 30, 2020 |
Nov. 01, 2019 |
|
Debt and Capital Lease Obligations [Line Items] | |||||||||
Other Notes Payable | $ 12,699,000 | $ 12,537,000 | |||||||
The Military Mutual Ltd [Member] | |||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||
Other Receivables | $ 28,400,000 | ||||||||
2028 Term Loan | Term Loan | |||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||
Debt Instrument, Original Amount | $ 300,000,000 | ||||||||
Debt Instrument, Additional amount issued | $ 150,000,000 | ||||||||
Debt Instrument, Face Amount | 450,000,000 | ||||||||
Debt Instrument, Interest Rate Floor | 0.75% | ||||||||
Interest rate | 3.25% | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 1.00% | ||||||||
Debt Instrument, principal amount outstanding | $ 442,100,000 | ||||||||
Interest Expense, Debt, Excluding Amortization | 22,800,000 | 9,700,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.46% | ||||||||
Debt Issuance Costs, Gross | 2,700,000 | $ 6,600,000 | |||||||
Unamortized discount | $ 1,500,000 | $ 1,500,000 | |||||||
Insurance Note | |||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||
Interest rate | 2.01% | ||||||||
Other Notes Payable | $ 4,000,000 | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 400,000 | ||||||||
Purple Protect Asset S-91 | |||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||
Interest rate | 5.80% | 4.00% | 6.07% | ||||||
Debt Issuance Costs, Gross | $ 1,700,000 | ||||||||
Other Notes Payable | $ 72,000,000 | ||||||||
Repayments of Other Debt | $ 60,000,000 | ||||||||
Interest Expense | $ 2,500,000 | 3,000,000 | 1,200,000 | ||||||
Corporate Debt | |||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||
Interest rate | 6.00% | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 100,000 | ||||||||
Interest Expense | 100,000 | $ 100,000 | $ 100,000 | ||||||
Other Long-term Debt | $ 1,100,000 | $ 2,600,000 |
Convertible Debt and Notes Payable - Finance Lease Obligations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Debt Disclosure [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 1,109 | $ 1,274 | $ 1,232 |
Finance Lease, Interest Expense | 58 | 116 | 171 |
Finance Lease, Interest Payment on Liability | 58 | 116 | 171 |
Finance Lease, Principal Payments | $ 1,206 | $ 1,532 | $ 1,033 |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 18 days | 1 year 8 months 15 days | 2 years 2 months 26 days |
Finance Lease, Weighted Average Discount Rate, Percent | 5.39% | 4.70% | 4.89% |
Convertible Debt and Notes Payable - Scheduled Maturities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Repayments on long-term and short-term borrowings | ||||
Note payable | $ 174,524 | $ 174,015 | ||
Term Loan | 432,265 | 435,147 | ||
Other Notes Payable | 12,699 | 12,537 | ||
Future minimum lease payments for finance lease obligations | ||||
2022 | 458 | |||
2023 | 104 | |||
2024 | 81 | |||
2025 | 50 | |||
2026 | 28 | |||
Thereafter | 0 | |||
Subtotal | 721 | |||
Finance Lease, Interest Payment on Liability | [1] | (48) | ||
Finance lease obligations | 673 | $ 1,672 | ||
Senior Notes | ||||
Repayments on long-term and short-term borrowings | ||||
2022 | 13,405 | |||
2023 | 88,578 | |||
2024 | 7,750 | |||
2025 | 7,750 | |||
2026 | 7,750 | |||
Thereafter | 142,625 | |||
Subtotal | 267,858 | |||
Long-term Debt and Short-term Borrowings, Amount Representing Interest | [1] | (93,334) | ||
Note payable | 174,524 | |||
Term Loan | ||||
Repayments on long-term and short-term borrowings | ||||
2022 | 37,700 | |||
2023 | 37,451 | |||
2024 | 37,020 | |||
2025 | 36,680 | |||
2026 | 36,340 | |||
Thereafter | 426,830 | |||
Subtotal | 612,021 | |||
Long-term Debt and Short-term Borrowings, Amount Representing Interest | [1] | (179,756) | ||
Term Loan | 432,265 | |||
Notes Payable, Other Payables | ||||
Repayments on long-term and short-term borrowings | ||||
2022 | 13,503 | |||
2023 | 543 | |||
2024 | 0 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 0 | |||
Subtotal | 14,046 | |||
Long-term Debt and Short-term Borrowings, Amount Representing Interest | [1] | (1,347) | ||
Other Notes Payable | $ 12,699 | |||
|
Convertible Debt and Notes Payable - Letters of Credit (Details) |
Dec. 31, 2022
letters_of_credit
|
---|---|
Debt Disclosure [Abstract] | |
Number of letters of credit | 4 |
Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
May 19, 2015 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 38.0619 | |||||
Convertible Preferred Stock, Threshold Percentage of Stock Price Trigger | 150.00% | |||||
Minimum | ||||||
Class of Stock [Line Items] | ||||||
Convertible Preferred Stock, Threshold | 20 days | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Convertible Preferred Stock, Threshold | 30 days | |||||
Call Option | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Option Indexed to Issuer's Equity, Strike Price | $ 26.27 | |||||
Retained Earnings/(Accumulated deficit) | ||||||
Class of Stock [Line Items] | ||||||
Preferred dividends paid | $ 6,792 | $ 6,792 | $ 6,792 | |||
Convertible Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock issuance for purchase of investment | 120,750 | |||||
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, Dividend Rate, Percentage | 5.625% | |||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |||||
Convertible Preferred Stock | Retained Earnings/(Accumulated deficit) | ||||||
Class of Stock [Line Items] | ||||||
Preferred dividends paid | $ 1,700 | $ 1,700 | $ 6,800 | $ 6,800 |
Stockholders Equity - (Details) |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2022
USD ($)
class
vote
$ / shares
shares
|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
$ / shares
|
Jun. 24, 2021
USD ($)
|
Jun. 26, 2018
USD ($)
|
Dec. 14, 2017
USD ($)
|
|
Equity, Class of Stock [Line Items] | |||||||
Common stock, shares authorized | shares | 125,000,000 | ||||||
Number of classes | class | 2 | ||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.12 | $ 0.10 | $ 0.08 | ||||
Cash dividends declared | $ 16,253,000 | $ 12,738,000 | $ 6,851 | ||||
Treasury Stock, Cost [Roll Forward] | |||||||
Treasury stock, cost, beginning of period | 547,100,000 | ||||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | 36,082,000 | 40,392,000 | 15,147,000 | ||||
Purchase of treasury stock, cost | 31,100,000 | ||||||
Treasury stock, cost, end of period | 614,300,000 | 547,100,000 | |||||
Dividend Paid | |||||||
Equity, Class of Stock [Line Items] | |||||||
Cash dividends declared | 15,200,000 | ||||||
Additional Paid-in Capital | |||||||
Equity, Class of Stock [Line Items] | |||||||
Equity portion of convertible note extinguishment | $ 0 | $ 0 | (29,645,000) | ||||
Treasury Stock | |||||||
Treasury Stock, Shares [Roll Forward] | |||||||
Treasury stock, shares, beginning of period | shares | 28,047,929 | ||||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | shares | 1,058,933 | ||||||
Purchase of treasury stock, shares | shares | 1,069,002 | ||||||
Treasury stock, shares, end of period | shares | 30,175,864 | 28,047,929 | |||||
Treasury Stock, Cost [Roll Forward] | |||||||
Treasury stock, cost, beginning of period | $ 547,112,000 | ||||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | 36,082,000 | ||||||
Purchase of treasury stock, cost | 31,078,000 | ||||||
Treasury stock, cost, end of period | $ 614,272,000 | $ 547,112,000 | |||||
Treasury Stock, Average Cost Per Share [Roll Forward] | |||||||
Treasury stock, average cost per share, beginning of period, in dollars per share | $ / shares | $ 19.51 | ||||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions, Average Cost Per Share | $ / shares | 34.07 | ||||||
Purchase of treasury stock, average cost per share, in dollars per share | $ / shares | 29.07 | ||||||
Treasury stock, average cost per share, end of period, in dollars per share | $ / shares | $ 20.36 | $ 19.51 | |||||
Convertible Debt | Additional Paid-in Capital | |||||||
Equity, Class of Stock [Line Items] | |||||||
Equity portion of convertible note extinguishment | $ 29,600,000 | ||||||
Convertible Debt | 2022 convertible note | |||||||
Equity, Class of Stock [Line Items] | |||||||
Unamortized discount | $ 5,100,000 | $ 23,400,000 | |||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 29,000,000 | ||||||
Equity portion of convertible note extinguishment | $ 29,600,000 | ||||||
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 | |||||
Common stock, number of votes per share | vote | 1 | ||||||
Common stock, conversion of shares (in shares) | shares | 1 | ||||||
Treasury Stock, Shares [Roll Forward] | |||||||
Treasury stock, shares, beginning of period | shares | 28,047,929 | ||||||
Treasury stock, shares, end of period | shares | 30,175,864 | 28,047,929 | |||||
Treasury Stock, Cost [Roll Forward] | |||||||
Treasury stock, cost, beginning of period | $ 547,112,000 | ||||||
Treasury stock, cost, end of period | $ 614,272,000 | $ 547,112,000 | |||||
Common Stock Class B | |||||||
Equity, Class of Stock [Line Items] | |||||||
Common stock, shares authorized | shares | 62,500,000 | 62,500,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Common stock, conversion of shares (in shares) | shares | 1 |
Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Noncontrolling Interest [Roll Forward] | ||||
Consolidation of entity | $ 0 | $ 0 | $ 48,596 | |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | (10,603) | 8,380 | (9,299) | |
Total Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds | 1,227,095 | 1,175,604 | 1,169,121 | |
Redeemable Noncontrolling Interests | ||||
Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 0 | 0 | 391,275 | |
Capital contributions | 0 | 0 | 184,223 | |
Capital withdrawals | 0 | 0 | (181,863) | |
Deconsolidation of entity | 0 | 0 | (360,711) | |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | 0 | 0 | (32,924) | |
Ending balance | 0 | 0 | 0 | |
Nonredeemable Noncontrolling Interests | ||||
Noncontrolling Interest [Roll Forward] | ||||
Capital contributions | 24,417 | 55,556 | 201,223 | |
Capital withdrawals | (10,626) | (29,012) | (78,251) | |
Deconsolidation of entity | 0 | (74,813) | (89,889) | |
Total Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds | 162,923 | 159,735 | 199,624 | $ 94,320 |
Nonredeemable Noncontrolling Interests | Operating Entities | ||||
Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 126,105 | 83,818 | 11,513 | |
Capital contributions | 24,417 | 36,539 | 9,730 | |
Capital withdrawals | (10,626) | (7,601) | (5,605) | |
Consolidation of entity | 0 | 48,596 | ||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | 6,540 | 13,349 | 19,584 | |
Ending balance | 146,436 | 126,105 | 83,818 | |
Nonredeemable Noncontrolling Interests | Consolidated Funds | ||||
Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 33,630 | 115,806 | 82,807 | |
Capital contributions | 0 | 19,017 | 191,493 | |
Capital withdrawals | 0 | (21,411) | (72,646) | |
Deconsolidation of entity | 0 | (74,813) | (89,889) | |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | (17,143) | (4,969) | 4,041 | |
Ending balance | $ 16,487 | $ 33,630 | $ 115,806 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |||
Beginning balance | $ (2) | $ (7) | $ (5) |
Foreign currency translation | 3 | 5 | (2) |
Ending balance | $ 1 | $ (2) | $ (7) |
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,139,172 | $ 1,718,221 | $ 1,338,501 |
Management Fees | 66,670 | 72,287 | 47,515 |
Incentive income | 646 | 2,732 | 592 |
Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,138,488 | 1,717,308 | 1,337,542 |
Management Fees | 65,986 | 71,374 | 46,556 |
Incentive income | 646 | 2,732 | 592 |
Operating Company | Investment banking revenue | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 494,842 | 1,067,162 | 769,486 |
Operating Company | Underwriting fees | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 114,201 | 421,081 | 427,670 |
Operating Company | Strategic/financial advisory fees | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 248,268 | 433,909 | 190,958 |
Operating Company | Placement and sales agent fees | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 120,629 | 195,676 | 133,171 |
Operating Company | Expense reimbursements from clients | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,744 | 16,496 | 17,687 |
Operating Company | Brokerage | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 577,014 | 576,040 | 520,908 |
Operating Company | Commissions | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 522,670 | 530,927 | 479,762 |
Operating Company | Trade conversion | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 30,233 | 24,098 | 21,389 |
Operating Company | Equity and credit research fees | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,111 | 21,015 | 19,757 |
Asset Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 684 | 913 | 959 |
Management Fees | $ 684 | $ 913 | $ 959 |
Insurance and reinsurance (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Incurred and paid claims | $ 33,111,000 | $ 20,425,000 | $ 14,838,000 |
Change in claims outstanding and claims IBNR | (55,270,000) | 3,416,000 | 11,599,000 |
Reinsurance Recoverable for Paid Claims and Claims Adjustments | 66,303 | 9,072 | |
Deferred Policy Acquisition Cost | 4,610 | 5,672 | |
Cash advances held by cedants | 2,684 | 3,523 | |
Reinsurance business receivable | 60,189 | 11,806 | 0 |
Insurance and reinsurance assets | 133,786 | 30,073 | |
Insurance and reinsurance assets | 27,030 | 3,837 | |
Unearned Premiums | 27,294 | 23,241 | |
Loss reserves and claims incurred but not reported | 263,223 | 44,191 | |
Insurance and reinsurance liabilities | 317,547 | 71,269 | |
Cash collateral pledged | $ 122,687 | 47,494 | 110,743 |
Cowen Insurance & Cowen Re | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Historical Average Claims Ratios, Period, Maximum | 10 years | ||
Total collateral posted for reinsurance business | $ 53,000 | 60,100 | |
Collateral released related to reinsurance business | 7,100 | ||
Cowen Insurance & Cowen Re | Collateral Reinsurance Agreement, Released September 30, 2023 | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Cash collateral pledged | 40,500 | ||
Cowen Insurance & Cowen Re | Collateral Reinsurance Agreement, Released March 31, 2024 | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Cash collateral pledged | 12,500 | ||
Cowen Insurance & Cowen Re | Cash and Cash Equivalents | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 43,000 | 44,100 | |
Cowen Insurance & Cowen Re | US Treasury Bond Securities | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 10,100 | 16,000 | |
Kelvin Re Limited | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 76,600 | ||
Kelvin Re Limited | Cash and Cash Equivalents | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 52,200 | ||
Kelvin Re Limited | Letter of Credit | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 24,400 | ||
Outward insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Incurred and paid claims | 4,496,000 | 3,285,000 | 0 |
Change in claims outstanding and claims IBNR | 533,000 | 112,000 | 0 |
Inward Reinsurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Incurred and paid claims | 28,615,000 | 17,140,000 | 14,838,000 |
Change in claims outstanding and claims IBNR | $ (55,803,000) | $ 3,304,000 | $ 11,599,000 |
Insurance and reinsurance - Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||
Insurance and reinsurance assets | $ 263,224 | $ 44,191 | $ 37,036 |
Increase/(Decreases) reinsurance recoverables | 60,189 | 11,806 | 0 |
Insurance and reinsurance assets, net | 203,035 | 32,385 | $ 37,036 |
Incurred related to: | |||
Current Years | 2,436 | 13,262 | |
Prior Years | (36,200) | 1,414 | |
Total | (33,764) | 14,676 | |
Paid related to: | |||
Current Years | 3,941 | 6,874 | |
Prior Years | 29,170 | 13,551 | |
Total | $ 33,111 | $ 20,425 |
Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Share-Based Payments and Deferred Compensation Narrative (Details) - Equity Plans - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-compensation expense recognized in connection with compensation plan | $ 66.7 | $ 85.0 | $ 48.1 |
Tax benefit of stock-compensation expense recognized in connection with compensation plan | $ 24.3 | $ 33.5 | $ 13.8 |
Employee Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation award, vesting period | 2 years | ||
Employee Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation award, vesting period | 5 years | ||
Expiration period | 7 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 3,700,000 | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation award, vesting period | 2 years | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation award, vesting period | 5 years | ||
Deferred Cash Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation award, vesting period | 4 years | ||
Deferred cash awards granted | $ 50.1 | ||
Deferred cash award, interest rate | 0.70% | ||
Deferred cash awards, unrecognized compensation expense | $ 61.5 |
Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Restricted Stock Units Rollforward (Details) - Equity Plans - Restricted Shares and Restricted Stock Units (RSUs) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Nonvested Restricted Shares and Restricted Stock Units | ||
Balance outstanding, beginning of period, shares | 4,595,342 | 5,450,191 |
Granted, shares | 2,054,563 | 2,092,904 |
Vested, shares | (2,134,692) | (2,785,535) |
Canceled, shares | 0 | 0 |
Forfeited, shares | (71,717) | (162,218) |
Balance outstanding, end of period, shares | 4,443,496 | 4,595,342 |
Weighted-Average Grant Date Fair Value | ||
Balance outstanding, beginning of period, in dollars per share | $ 24.33 | $ 17.56 |
Granted, in dollars per share | 31.62 | 35.31 |
Vested, in dollars per share | 21.46 | 19.46 |
Canceled, in dollars per share | 0 | 0 |
Forfeited, in dollars per share | 21.96 | 22.23 |
Balance outstanding, end of period, in dollars per share | $ 29.12 | $ 24.33 |
Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Performance Awards Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 28, 2021 |
Jul. 30, 2020 |
Apr. 30, 2019 |
Mar. 31, 2016 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Performance based restricted stock | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of RSU's earned | 0.00% | |||||
Performance based restricted stock | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of RSU's earned | 240.00% | |||||
Equity Plans | Performance based restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, shares | 1,974,217 | 1,974,217 | 1,974,217 | 1,974,217 | ||
Vested, shares | 712,652 | |||||
Forfeited, shares | 320,681 | |||||
Equity Plans | Performance based restricted stock | March 2016 Performance Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested, shares | 233,333 | |||||
Performance awards attained | 420,000 | |||||
Equity Plans | Performance based restricted stock | March 2016 Performance Awards | Share Distribution | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards attained | 350,000 | |||||
Equity Plans | Performance based restricted stock | March 2016 Performance Awards | Cash and Cash Equivalents | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards attained | 70,000 | |||||
Equity Plans | Performance based restricted stock | April 2019 Performance Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested, shares | 333,333 | |||||
Performance awards attained | 666,666 | |||||
Equity Plans | Performance based restricted stock | April 2019 Performance Awards | Share Distribution | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards attained | 528,800 | |||||
Equity Plans | Performance based restricted stock | April 2019 Performance Awards | Cash and Cash Equivalents | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards attained | 137,866 | |||||
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, shares | 2,054,563 | 2,092,904 | ||||
Vested, shares | 2,134,692 | 2,785,535 | ||||
Forfeited, shares | 71,717 | 162,218 | ||||
Unrecognized compensation expense | $ 77.9 | |||||
Period for recognition | 1 year 7 months 20 days |
Share-Based Payments, Deferred Compensation and Employee Ownership Plans - Restricted Shares and Other Share Based Payments Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 01, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Equity Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ 66,700 | $ 85,000 | $ 48,100 | |||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 24,300 | $ 33,500 | $ 13,800 | |||
Equity Plans | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 972,732 | 972,732 | ||||
Equity Plans | Restricted Stock Units (RSUs) | Non-employee Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, shares | 64,370 | 28,463 | ||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, other | 4,156 | 41,667 | ||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 306,547 | 246,333 | 306,547 | 246,333 | ||
2022 Equity Unit Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,000,000 | |||||
Granted, shares | 29,250 | 1,487,500 | ||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 20.00% | |||||
Share-based payment arrangement, expense | $ 800 | |||||
Unrecognized compensation expense | $ 800 | $ 800 | ||||
Period for recognition | 5 years | |||||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 200 |
Defined Contribution Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Defined Contribution Plans [Abstract] | |||
Defined Contribution Plan, Cost | $ 3.0 | $ 3.9 | $ 2.9 |
Income Taxes Income Tax Expense (Details) (annual) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 32,574 | $ 92,390 | $ 13,840 |
Current State and Local Tax Expense (Benefit) | 2,799 | 21,842 | 5,060 |
Current Foreign Tax Expense (Benefit) | 4,358 | 1,867 | 1,355 |
Current Income Tax Expense (Benefit) | 39,731 | 116,099 | 20,255 |
Deferred Federal Income Tax Expense (Benefit) | (23,194) | (9,860) | 53,231 |
Deferred State and Local Income Tax Expense (Benefit) | (5,705) | (4,861) | 17,337 |
Deferred Foreign Income Tax Expense (Benefit) | (46) | 661 | (450) |
Deferred Income Tax Expense (Benefit) | (28,945) | (14,060) | 70,118 |
Total tax expense/(benefit) | 10,786 | 102,039 | 90,373 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 60,500 | 385,100 | 289,600 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 16,100 | 20,900 | $ 7,900 |
Deferred Tax Assets, Valuation Allowance | 1,932 | 4,226 | |
Other | 5,926 | 3,643 | |
Deferred Tax Liabilities, Gross | $ 31,423 | $ 57,748 |
Income Taxes Income Tax Rate Reconciliation (Details) (annual) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Pre-tax net income at U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Nondeductible expenses | 11.30% | 2.60% | 1.50% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (3.20%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (4.60%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (7.40%) | (2.30%) | (0.30%) |
State and foreign tax | (4.40%) | 5.00% | 7.30% |
Reversal of income attributable to non-controlling interests | 2.90% | (0.40%) | 0.70% |
Other, net | (1.50%) | (0.80%) | 0.20% |
Total | 14.10% | 25.10% | 30.40% |
Income Taxes Deferred Tax Assets and Liabilities (Details) (annual) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 12,061 | $ 14,649 |
Deferred compensation | 29,967 | 34,342 |
Deferred Tax Assets, Goodwill and Intangible Assets | 4,894 | 2,732 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | 2,929 | 759 |
Deferred Tax Assets, Tax Deferred Expense | 9,460 | 0 |
Tax credits | 1,057 | 3,241 |
Lease liability | 17,871 | 24,373 |
Other | 5,926 | 3,643 |
Total deferred tax assets | 84,165 | 83,739 |
Valuation allowance | (1,932) | (4,226) |
Deferred tax assets, net of valuation allowance | 82,233 | 79,513 |
Right-of-use on certain assets | (16,498) | (22,568) |
Goodwill | (7,594) | (1,425) |
Unrealized gains on investments | (5,070) | (30,393) |
Other | (2,261) | (3,362) |
Total deferred tax liabilities | (31,423) | (57,748) |
Deferred tax assets/(liabilities), net | $ 50,810 | $ 21,765 |
Income Taxes Summary of Operating Loss Carryforwards (Details) (annual) - USD ($) |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Gross | $ 84,165,000 | $ 83,739,000 |
Deferred Tax Liabilities, Gross | 31,423,000 | 57,748,000 |
Other | 5,926,000 | 3,643,000 |
Deferred Tax Assets, Valuation Allowance | 1,932,000 | $ 4,226,000 |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax Credit Carryforward, Valuation Allowance | 600,000 | |
Tax Credit Carryforward, Amount | 1,100,000 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Taxes payable | 13,200,000 | |
Operating Loss Carryforwards | 24,700,000 | |
Inland Revenue, Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 11,700,000 | |
New York State Division of Taxation and Finance [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 16,000,000.0 | |
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income Taxes Receivable | 10,900,000 | |
Operating Loss Carryforwards | 15,200,000 | |
Luxembourg Reinsurance Companies [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Liabilities, Gross | 39,700,000 | |
Other | 176,700,000 | |
Deferred Tax Assets, Valuation Allowance | 176,700,000 | |
LaBranche and Co Inc. [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 10,200,000 | |
Deferred tax asset, deduction limitation | $ 6,700,000 |
Income Taxes Unrecognized Tax Benefits - (Details) (annual) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance at January 1 | $ 0 | $ 299 |
Settlement of positions | 0 | (64) |
Increases/(Decreases) due to prior year positions | 0 | (235) |
Ending balance at December 31 | $ 0 | $ 0 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Computation of earnings per share: | |||
Net income (loss) | $ 65,855 | $ 303,991 | $ 207,064 |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | (10,603) | 8,380 | (9,299) |
Net income (loss) attributable to Cowen Inc. | 76,458 | 295,611 | 216,363 |
Preferred stock dividends | 6,792 | 6,792 | 6,792 |
Net income (loss) attributable to Cowen Inc. common stockholders | 69,666 | 288,819 | 209,571 |
Dilutive Securities, Effect on Basic Earnings Per Share | 55 | 0 | 0 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 69,721 | $ 288,819 | $ 209,571 |
Shares for basic and diluted calculations: | |||
Weighted average shares used in basic computation, shares | 28,183,000 | 27,721,000 | 27,790,000 |
Weighted average shares used in diluted computation, shares | 31,544,000 | 32,628,000 | 29,519,000 |
Earnings (loss) per share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 2.47 | $ 10.42 | $ 7.54 |
Earnings Per Share, Diluted (in dollars per share) | $ 2.21 | $ 8.85 | $ 7.10 |
Convertible Debt | |||
Shares for basic and diluted calculations: | |||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 0 | 1,404,000 | 0 |
Convertible Preferred Stock | |||
Shares for basic and diluted calculations: | |||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 949,000 | 0 | 0 |
Restricted Stock | |||
Shares for basic and diluted calculations: | |||
Shares attributable to share-based payment awards, shares | 1,932,000 | 2,748,000 | 1,644,000 |
Restricted Stock | Quarton | |||
Shares for basic and diluted calculations: | |||
Shares attributable to share-based payment awards, shares | 50,000 | 0 | 85,000 |
Restricted Stock Units (RSUs) | Equity Plans | |||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 972,732 | ||
Performance based restricted stock | |||
Shares for basic and diluted calculations: | |||
Shares attributable to share-based payment awards, shares | 430,000 | 755,000 | 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 | 28,234,289 | 27,778,964 | |
Common stock, restricted shares, shares | 310,426 | ||
Common Stock Class A | Restricted Stock | |||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Common stock, shares outstanding, shares | 950,919 | 901,374 |
Commitments and Contingencies - Operating Lease Obligations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Contractual Commitments, Commitment [Line Items] | |||
Operating lease cost | $ 25,495 | $ 25,268 | $ 22,759 |
Variable lease cost | 2,527 | 3,526 | 3,550 |
Sublease income | (470) | (583) | (781) |
Total lease costs | 27,777 | 28,361 | 25,735 |
Facility Leases | |||
Contractual Commitments, Commitment [Line Items] | |||
Short-term lease cost | $ 225 | $ 150 | $ 207 |
Commitments and Contingencies - Supplemental Cash Flow Information And Certain Other Information (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Operating cash flows from operating leases | $ 26,046 | $ 27,429 |
Weighted average remaining lease term - operating leases (in years) | 5 years 4 months 6 days | 5 years 3 months 7 days |
Weighted average discount rate - operating leases | 4.23% | 4.06% |
Commitments and Contingencies - Outstanding Operating Lease Liabilities (Details) - USD ($) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|||||||
Future minimum annual lease and service payments | ||||||||
Total lease liability | $ 85,222,000 | $ 98,883,000 | ||||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 12,300,000 | |||||||
Operating Lease, Residual Value of Leased Asset | 500,000 | |||||||
Equipment Leases | ||||||||
Future minimum annual lease and service payments | ||||||||
2023 | 523,000 | |||||||
2024 | 515,000 | |||||||
2025 | 479,000 | |||||||
2026 | 278,000 | |||||||
2027 | 0 | |||||||
Thereafter | 0 | |||||||
Total operating leases | 1,795,000 | |||||||
Less discount | 41,000 | |||||||
Less short-term leases | 0 | |||||||
Total lease liability | 1,754,000 | |||||||
Facility Leases | ||||||||
Future minimum annual lease and service payments | ||||||||
2023 | [1],[2],[3] | 24,653,000 | ||||||
2024 | [1],[2],[3] | 22,450,000 | ||||||
2025 | [1],[2],[3] | 11,781,000 | ||||||
2026 | [1],[2],[3] | 8,607,000 | ||||||
2027 | [1],[2],[3] | 7,213,000 | ||||||
Thereafter | [1],[2],[3] | 18,998,000 | ||||||
Total operating leases | [1],[3] | 93,702,000 | ||||||
Less discount | [1],[3] | 10,097,000 | ||||||
Less short-term leases | 137,000 | |||||||
Total lease liability | [1],[3] | $ 83,468,000 | ||||||
|
Commitments and Contingencies - Service Payments (Details) - Service Payments $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Other Commitments [Line Items] | |
2023 | $ 32,919 |
2024 | 18,761 |
2025 | 6,169 |
2026 | 3,271 |
2027 | 3,257 |
Thereafter | 4,100 |
Total service payment commitments | $ 68,477 |
Commitments and Contingencies - Schedules of Unfunded Commitments (Details) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2022
USD ($)
| ||||
Healthcare Royalty Partners | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 6,064 | [1] | ||
Healthcare Royalty Partners | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 2 years | |||
Eclipse Ventures Fund I, L.P. | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 28 | |||
Eclipse Ventures Fund I, L.P. | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 2 years | |||
Eclipse Fund II, L.P. | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 12 | |||
Eclipse Fund II, L.P. | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 3 years | |||
Eclipse Continuity Fund I, L.P. | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 10 | |||
Eclipse Continuity Fund I, L.P. | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 4 years | |||
Cowen Healthcare Investments III LP | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 1,552 | |||
Cowen Healthcare Investments III LP | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 4 years | |||
Cowen Healthcare Investments IV LP | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 4,758 | |||
Cowen Healthcare Investments IV LP | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 5 years | |||
Cowen Sustainable Investments I LP | Unfunded Commitments | ||||
Other Commitments [Line Items] | ||||
Other commitments, unfunded amount | $ 8,729 | |||
Cowen Sustainable Investments I LP | Commitment to Invest | ||||
Other Commitments [Line Items] | ||||
Commitments term | 7 years | |||
|
Segment Reporting - Economic Income (Loss) to GAAP (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022
USD ($)
segment
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | |||
Preferred stock dividends | $ 6,792 | $ 6,792 | $ 6,792 |
Amortization of (discount)/premium on convertible debt | 309 | 6,727 | 4,490 |
Bargain purchase gain, net of tax | 0 | 3,855 | 0 |
Goodwill Impairment | 0 | 0 | |
Income tax expense (benefit) | 10,786 | 102,039 | 90,373 |
Net income (loss) | 65,855 | 303,991 | 207,064 |
Adjustments | |||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | |||
Noncontrolling Interest (Adjusted) | (10,603) | 8,380 | (9,299) |
Preferred stock dividends | 6,792 | 6,792 | 6,792 |
Amortization of (discount)/premium on convertible debt | (309) | (1,604) | (4,499) |
Acquisition related amounts | (16,293) | (6,593) | (606) |
Contingent Consideration Payable | 13,560 | (15,118) | (8,492) |
Debt extinguishment gain (loss) and accelerated debt costs | 0 | (10,095) | 2,719 |
Bargain purchase gain, net of tax | 0 | 3,855 | 0 |
Goodwill Impairment | 0 | (1,009) | (2,423) |
Income tax expense (benefit) | (10,786) | (102,039) | (90,373) |
Economic income tax expense | 23,474 | 109,194 | 0 |
OpCo | Operating Segments | |||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | |||
Economic Income | 87,502 | 314,519 | 329,381 |
Income tax expense (benefit) | 21,635 | 103,149 | 90,373 |
Asset Co | Operating Segments | |||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | |||
Economic Income | (27,482) | (2,291) | (16,136) |
Income tax expense (benefit) | $ (10,849) | $ (1,110) | $ 0 |
Segment Reporting - Segment Breakout (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
Segment Information | |||||
Total revenues | $ 1,537,723 | $ 2,112,799 | $ 1,755,926 | ||
Depreciation and Amortization | 27,725 | 19,004 | 22,677 | ||
Income tax expense (benefit) | 10,786 | 102,039 | 90,373 | ||
Interest and Dividend Expense | 259,126 | 211,387 | 187,725 | ||
Dividend expense | 73,000 | 6,800 | 8,100 | ||
Dividend revenue | 158,700 | 26,000 | 17,300 | ||
Consolidated Funds | |||||
Segment Information | |||||
Interest and Dividend Expense | 0 | 0 | 2,064 | ||
Dividend expense | 0 | 0 | 700 | ||
Dividend revenue | 0 | 0 | 2,500 | ||
Operating Segments | |||||
Segment Information | |||||
Non-Interest Revenue | [1] | 1,384,266 | 1,919,569 | 1,583,106 | |
Interest Revenue | 153,457 | 193,221 | 170,128 | ||
Total revenues | 1,537,723 | 2,112,799 | 1,755,926 | ||
Operating Segments | Consolidated Funds | |||||
Segment Information | |||||
Interest Revenue | 0 | 9 | 2,692 | ||
OpCo | Operating Segments | |||||
Segment Information | |||||
Non-Interest Revenue | 1,442,022 | 1,917,406 | 1,564,710 | ||
Interest Revenue | 153,050 | 192,756 | 169,358 | ||
Total revenues | 1,595,072 | 2,110,162 | 1,736,751 | ||
Interest Expense | 180,983 | 199,570 | 173,537 | ||
Depreciation and Amortization | 27,700 | 18,982 | 22,655 | ||
Income tax expense (benefit) | 21,635 | 103,149 | 90,373 | ||
OpCo | Operating Segments | Consolidated Funds | |||||
Segment Information | |||||
Interest Revenue | 0 | 0 | 2,683 | ||
Interest Expense | 0 | 0 | 1,376 | ||
Asset Co | Operating Segments | |||||
Segment Information | |||||
Non-Interest Revenue | (57,756) | 2,163 | 18,396 | ||
Interest Revenue | 407 | 465 | 770 | ||
Total revenues | (57,349) | 2,637 | 19,175 | ||
Interest Expense | 5,100 | 5,035 | 6,120 | ||
Depreciation and Amortization | 25 | 22 | 22 | ||
Income tax expense (benefit) | (10,849) | (1,110) | 0 | ||
Asset Co | Operating Segments | Consolidated Funds | |||||
Segment Information | |||||
Interest Revenue | 0 | 9 | 9 | ||
Interest Expense | $ 0 | $ 0 | $ 0 | ||
|
Regulatory Requirements (Details) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2022
USD ($)
| ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Minimum net capital required | $ 250,000 | |||
Cowen and Company | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Minimum net capital required | $ 1,500,000 | |||
Minimum net capital required, percent | 2.00% | |||
Net capital | $ 482,309,000 | |||
Net capital requirement under alternative method | 4,052,000 | |||
Excess capital | 478,257,000 | |||
ATM Execution LLC | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Net capital | 5,775,000 | |||
Net capital requirement under alternative method | 250,000 | |||
Excess capital | 5,525,000 | |||
Westminster Research | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Net capital | 21,440,000 | |||
Net capital requirement under alternative method | 250,000 | |||
Excess capital | $ 21,190,000 | |||
Cowen Financial Products LLC | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Minimum net capital required, percent | 2.00% | |||
minimum net capital required, amount | $ 20,000,000 | |||
Net capital | 64,670,000 | |||
Net capital requirement under alternative method | 20,000,000 | |||
Excess capital | 44,670,000 | |||
Cowen and Company (Asia) Limited | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Financial/Capital resources | 2,710,000 | [1] | ||
Financial/Capital resources requirement | 384,000 | [1] | ||
Excess financial/capital resources | 2,326,000 | [1] | ||
RCG Insurance Company | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Minimum net capital required | 300,000 | |||
Net capital | 4,600,000 | |||
Options Clearing Corporation | Cowen and Company | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Minimum net capital required | $ 2,000,000 | |||
Minimum net capital required, percent | 2.00% | |||
U.K. Financial Services Authority | Cowen International Limited | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Financial/Capital resources | $ 48,554,000 | [1] | ||
Financial/Capital resources requirement | 13,592,000 | [1] | ||
Excess financial/capital resources | 34,962,000 | [1] | ||
U.K. Financial Services Authority | Cowen Execution Services Ltd | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Financial/Capital resources | 17,358,000 | [1] | ||
Financial/Capital resources requirement | 7,022,000 | [1] | ||
Excess financial/capital resources | 10,336,000 | [1] | ||
Minimum | Cowen and Company | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Required net capital under commodity exchange act | 45,000 | |||
Special Reserve Accounts | Cowen and Company | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Cash and securities segregated under securities exchange commission regulation | 49,400,000 | |||
PAB Reserve Bank Accounts | Cowen and Company | ||||
Regulatory Requirements for Broker-Dealers [Line Items] | ||||
Cash and securities segregated under securities exchange commission regulation | $ 40,400,000 | |||
|
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Related Party Transaction [Line Items] | |||
Fees receivable | $ 113,217 | $ 145,809 | |
Due from related parties | 22,293 | 31,449 | |
Employees | |||
Related Party Transaction [Line Items] | |||
Redeemable non-controlling interests, Related Party | 53,500 | 53,900 | |
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | 24,700 | 14,900 | $ 21,200 |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Fees receivable | 15,800 | 16,600 | |
Employee Loans | |||
Related Party Transaction [Line Items] | |||
Due from employees | 11,800 | 8,800 | |
Forgivable Loan Balances | 6,100 | 3,800 | |
Amortization on Forgivable Loans | 4,500 | 5,700 | 3,700 |
Interest Income, Other | $ 100 | 100 | $ 100 |
Employee Loans | Minimum | |||
Related Party Transaction [Line Items] | |||
Forgivable Loans, Vesting Period | 1 year | ||
Employee Loans | Maximum | |||
Related Party Transaction [Line Items] | |||
Forgivable Loans, Vesting Period | 3 years | ||
Other Funds | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 10,400 | $ 22,600 |
Guarantees and Off-Balance Sheet Arrangements (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | $ 425,000 |
Line of credit facility, remaining borrowing capacity | 425,000 |
Pledge Lines | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 250,000 |
Line of credit facility, remaining borrowing capacity | 250,000 |
BMO Harris Bank | Broker Loan | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 25,000 |
Line of credit facility, remaining borrowing capacity | 25,000 |
BMO Harris Bank | Tri-Party Pledge Line | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 75,000 |
Line of credit facility, remaining borrowing capacity | 75,000 |
BMO Harris Bank | Pledge Lines | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 150,000 |
Line of credit facility, remaining borrowing capacity | 150,000 |
BMO Harris Bank | Spike Line | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 150,000 |
Line of credit facility, remaining borrowing capacity | 150,000 |
Morgan Stanley | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 25,000 |
Line of credit facility, remaining borrowing capacity | $ 25,000 |
Subsequent Events - Narrative (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Feb. 14, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Subsequent Event [Line Items] | ||||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.10 | $ 0.08 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends declared (in dollars per share) | $ 0.12 |
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