Cowen Group, Inc. (NASDAQ: COWN) (“Cowen” or “the Company”) today announced its operating results for the third quarter ended September 30, 2012.
2012 Third Quarter Highlights (1)
- Broker-dealer segment revenues increased by 34% in the 2012 third quarter compared to the prior year period (2)
- Investment banking revenues were $18.7 million, a $7.9 million increase from the prior year period. The increase was driven by our equity underwriting activity in the healthcare sector and debt capital markets product
- Brokerage revenues were $22.7 million, down $3.0 million compared to the 2011 third quarter
- Management fees were $13.4 million, down $5.1 million compared to the 2011 third quarter
- The decrease in management fees was primarily attributable to an increase in management fees in the prior year period for our healthcare royalty funds, as a result of an increase in committed capital that resulted in recognizing cumulative retrospective management fees
- Assets under management decreased by $1.1 billion during the 2012 third quarter to $10.4 billion at October 1, 2012 due to redemptions in the Company's cash management business
- Excluding cash management assets, the Company's assets under management at October 1, 2012 were approximately flat during the 2012 third quarter
- The Company's non-compensation expenses in the 2012 third quarter decreased by $6.1 million compared to the prior year period
- On September 28th, Cowen announced its entry into a definitive agreement to acquire KDC Securities, a securities lending business. The transaction was completed on November 1st
(1) All financial highlights are presented on an Economic Income basis.
(2) Includes broker-dealer segment's allocation of Investment Income (Loss) and Other Revenue.