Cowen : 3Q20 Financial Supplement

FINANCIAL SUPPLEMENT

2020 Third Quarter

OCTOBER 27, 2020

TABLE OF CONTENTS

1. COWEN INC.
2. • REVENUE METRICS (NON-GAAP)
   • SUMMARY OPERATING AND OTHER FINANCIAL INFORMATION (NON-GAAP)
   • RECONCILIATION OF US GAAP AND ECONOMIC INCOME (UNAUDITED)
3. OPERATING CO
4. • REVENUE METRICS (NON-GAAP)
   • SUMMARY OPERATING AND OTHER FINANCIAL INFORMATION (NON-GAAP)
5. ASSET CO
6. • REVENUE METRICS (NON-GAAP)
   • SUMMARY OPERATING AND OTHER FINANCIAL INFORMATION (NON-GAAP)
7. APPENDIX
8. • RETURN ON COMMON EQUITY (ROCE) DEFINITION
   • DEFINITION OF US GAAP TO NON-GAAP MEASURES
   • END NOTES
   • LEGAL NOTICE

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1. COWEN INC.

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Revenue Metrics (Non-GAAP Unaudited) - Cowen Inc.

	2018				2019						2020
$ thousands	FY		Q1	Q2	Q3	Q4		FY		Q1	Q2	Q3
INVESTMENT BANKING REVENUE	$329,062	$81,561	$103,379	$69,433	$96,711	$351,085	$99,197	$190,430	$185,151
M&A
Revenue	$81,733	$26,984	$11,021	$16,373	$28,773	$83,152	$19,773	$30,983	$32,476
Total transactions	30	10	9	13	16	48	12	9	10
Average fee (implied)	$2,724	$2,698	$1,225	$1,259	$1,798	1,732	$1,648	$3,443	$3,248
Median fee	$1,800	$1,117	$876	$1,059	$1,188	$1,008	$1,201	$1,295	$1,685
Transaction value (in M)	$10,889	$7,207	$716	$927	$1,592	$10,443	$1,114	$4,742	$6,011
Total Capital Markets Revenue	$247,329	$54,577	$92,358	$53,060	$67,938	$267,933	$79,424	$159,447	$152,675
Capital Markets Underwriting1
Revenue	--	$47,477	$72,402	$39,874	$59,144	$218,897	$65,725	$134,736	$123,053
Total transactions	--	25	42	22	25	114	24	48	50
Average fee (implied)	--	$1,899	$1,724	$1,812	$2,366	$1,920	$2,739	$2,807	$2,461
Median fee	--	$1,478	$1,527	$1,300	$1,924	$1,477	$2,309	$2,206	$2,033
Capital Markets Advisory2
Revenue	--	$7,100	$19,956	$13,186	$8,794	$49,036	$13,699	$24,711	$29,622
Total transactions	--	5	5	8	9	27	7	7	11
Average fee (implied)	--	$1,420	$3,991	$1,648	$977	$1,816	$1,957	$3,530	$2,693
Median fee	--	$700	$1,500	$1,173	$666	$900	$1,350	$1,880	$2,250
Total Capital Markets Revenue	$247,329	$54,577	$92,358	$53,060	$67,938	$267,933
MARKETS REVENUE	$472,490	$113,434	$125,276	$111,746	$115,097	$465,553	$132,385	$169,162	$167,441
Brokerage Revenue7	$467,117	$111,872	$124,044	$110,180	$113,047	$459,143	$132,672	$167,067	$167,084
Institutional brokerage3	$327,578	$78,304	$89,303	$75,907	$80,451	$323,965	$97,961	$119,064	$113,313
Institutional services	$139,539	$33,568	$34,741	$34,273	$32,596	$135,178	$34,711	$48,003	$53,771
Markets Other Revenue4	$5,373	$1,562	$1,387	$1,725	$2,051	$6,725	($287)	$2,095	$357
Markets revenue per trading day	$1,882	$1,860	$1,991	$1,749	$1,798	$1,849	$2,135	$2,685	$2,616
# Trading days	251	61	63	64	64	252	62	63	64
# Publishing analysts5	51	52	52	53	52	52	53	54	54
MANAGEMENT FEE	$49,175	$10,430	$10,468	$10,907	$10,492	$42,297	$13,320	$14,402	$14,636
Monthly run rate for period	$4,098	$3,477	$3,489	$3,636	$3,497	$3,525	$4,440	$4,801	$4,879
INCENTIVE INCOME	$23,304	$16,291	$4,080	$14,389	$10,973	$45,732	($4,086)	$46,375	($1,302)
INVESTMENT INCOME7	$41,528	$10,269	$(2,887)	$11,734	$16,611	$35,726	$(31,103)	$140,486	$(90,488)
OTHER REVENUE	-$1,169	$1,159	$4,318	$(126)	$491	$5,843	$562	$(60)	$(794)
TOTAL REVENUE6	$909,017	$231,582	$243,402	$216,517	$248,325	$939,827	$210,562	$558,700	$274,287

1. "Capital Markets Underwriting" includes IPOs, secondary offerings, convertible bonds, ATM offerings and publicly rated debt
2. "Capital Markets Advisory" includes private placements, PIPEs, private debt financings, debt advisory and other advisory fees
3. "Institutional Brokerage" includes: cash and electronic trading, options, ADR, special situations and credit; "Institutional Services" includes: prime services, clearing, securities finance, commission management and recapture.
4. "Markets Other Revenue" includes management fees for Prime Services and miscellaneous fees
5. Includes equity, credit and macro publishing analysts
6. Total revenue is the sum of investment banking, brokerage, management fee, incentive income, investment income and other revenue
7. For 2Q'20 and prior periods, investment income/losses related to Brokerage are now reflected in the Brokerage Revenue lines

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