Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 02, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-34516 | ||
Entity Registrant Name | Cowen Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-0423711 | ||
Entity Address, Address Line One | 599 Lexington Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 646 | ||
Local Phone Number | 562-1010 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 429,938,446 | ||
Entity Common Stock, Shares Outstanding | 26,673,114 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Part III of this Annual Report on Form 10-K incorporates by reference information (to the extent specific sections are referred to herein) from the Registrant's Proxy Statement for its 2021 Annual Meeting of Stockholders. | ||
Entity Central Index Key | 0001466538 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock, par value $0.01 per share | The Nasdaq Global Market | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | ||
Trading Symbol | COWN | ||
Security Exchange Name | NASDAQ | ||
7.35% Senior Notes due 2027 | The Nasdaq Global Market | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.35% Senior Notes due 2027 | ||
Trading Symbol | COWNZ | ||
Security Exchange Name | NASDAQ | ||
7.75% Senior Notes due 2033 | The Nasdaq Global Market | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.75% Senior Notes due 2033 | ||
Trading Symbol | COWNL | ||
Security Exchange Name | NASDAQ |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | $ 645,169,000 | $ 301,123,000 | |
Cash collateral pledged | 110,743,000 | 6,563,000 | |
Segregated cash | 185,141,000 | 107,328,000 | |
Securities owned, at fair value ($1,218,947 and $941,595 were pledged to various parties) | 2,001,602,000 | 1,633,552,000 | |
Securities Purchased under Agreements to Resell | 191,000 | 0 | |
Receivable on derivative contracts, at fair value | 51,482,000 | 62,977,000 | |
Securities borrowed | 1,908,187,000 | 754,441,000 | |
Other investments ($133,454 and $114,504 at fair value, respectively) | 255,027,000 | 185,722,000 | |
Deposits with clearing organizations, brokers and banks | 104,952,000 | 91,755,000 | |
Receivable from brokers, dealers and clearing organizations, net of allowance of $885 and $721, respectively | 1,729,744,000 | 681,695,000 | |
Receivable from customers, net of allowance of $530 and $650, respectively | 103,963,000 | 105,647,000 | |
Fees receivable, net of allowance of $3,348 and $2,620, respectively | 160,349,000 | 126,358,000 | |
Due from related parties | 21,068,000 | 26,749,000 | |
Fixed assets, net of accumulated depreciation and amortization of $40,670 and $32,846, respectively | 33,023,000 | 33,661,000 | |
Operating lease right-of-use assets | 78,241,000 | 92,852,000 | |
Goodwill | 147,084,000 | 137,728,000 | |
Intangible assets, net of accumulated amortization of $37,884 and $26,395, respectively | 24,403,000 | 35,200,000 | |
Deferred tax asset, net | 9,030,000 | 79,166,000 | |
Other assets | 54,884,000 | 84,158,000 | |
Consolidated Funds | |||
Cash and cash equivalents, Consolidated Funds | 417,000 | 30,874,000 | |
Securities owned, at fair value | 10,622,000 | 375,278,000 | |
Receivable on derivative contracts, at fair value, Consolidated Funds | 0 | 5,833,000 | |
Other Investments, Consolidated Funds | 192,670,000 | 175,769,000 | |
Receivable from brokers, Consolidated Funds | 0 | 25,964,000 | |
Other assets, Consolidated Funds | 207,000 | 1,632,000 | |
Total Assets | 7,828,199,000 | 5,162,025,000 | |
Liabilities | |||
Securities sold, not yet purchased, at fair value | 728,115,000 | 451,836,000 | |
Securities Sold under Agreements to Repurchase | 5,036,000 | 23,244,000 | |
Payable for derivative contracts, at fair value | 76,160,000 | 60,761,000 | |
Securities Loaned | 2,476,414,000 | 1,601,866,000 | |
Payables to brokers, dealers and clearing organizations | 415,143,000 | 271,018,000 | |
Payable to customers | 1,680,326,000 | 430,224,000 | |
Commission management payable | 116,987,000 | 71,620,000 | |
Compensation payable | 373,339,000 | 223,139,000 | |
Operating lease liabilities | 82,735,000 | 97,581,000 | |
Notes payable and other debt | [1] | 383,067,000 | 345,451,000 |
Convertible debt | [2] | 80,808,000 | 118,688,000 |
Fees payable | 43,833,000 | 21,540,000 | |
Due to related parties | 51,000 | 1,000 | |
Accounts payable, accrued expenses and other liabilities | 196,479,000 | 141,556,000 | |
Consolidated Funds | |||
Due to related parties | 7,000 | 581,000 | |
Payable for derivative contracts, at fair value | 0 | 4,769,000 | |
Payable to brokers | 0 | 864,000 | |
Capital withdrawals payable | 0 | 1,276,000 | |
Accounts payable, accrued expenses and other liabilities | 578,000 | 560,000 | |
Total Liabilities | 6,659,078,000 | 3,866,575,000 | |
Commitments and Contingencies | |||
Redeemable non-controlling interests in consolidated subsidiaries and funds | 0 | 391,275,000 | |
Stockholders' equity | |||
Additional paid-in capital | 1,130,138,000 | 1,110,635,000 | |
(Accumulated deficit) retained earnings | 185,901,000 | (16,809,000) | |
Accumulated other comprehensive income (loss) | (7,000) | (5,000) | |
Less: Class A common stock held in treasury, at cost, 22,619,863 and 18,605,581 shares as of December 31, 2020 and December 31, 2019, respectively. | (346,900,000) | (284,300,000) | |
Cowen Inc. Stockholders' Equity | 969,497,000 | 809,855,000 | |
Nonredeemable non-controlling interests | 199,624,000 | 94,320,000 | |
Permanent Equity | 1,169,121,000 | 904,175,000 | |
Total Liabilities and Stockholders' Equity | 7,828,199,000 | 5,162,025,000 | |
Portfolio Funds | |||
Assets | |||
Other investments ($133,454 and $114,504 at fair value, respectively) | [3] | 133,454,000 | 114,504,000 |
Consolidated Funds | |||
Other Investments, Consolidated Funds | [3] | 192,670,000 | 175,769,000 |
Convertible Preferred Stock | |||
Stockholders' equity | |||
Preferred stock | 1,000 | 1,000 | |
Common Stock Class A | |||
Stockholders' equity | |||
Common stock | 334,000 | 334,000 | |
Less: Class A common stock held in treasury, at cost, 22,619,863 and 18,605,581 shares as of December 31, 2020 and December 31, 2019, respectively. | (346,870,000) | (284,301,000) | |
Common Stock Class B | |||
Stockholders' equity | |||
Common stock | $ 0 | $ 0 | |
[1] | The carrying amount of the notes payable and other debt includes an unamortized premium of $0.4 million and $0.5 million as of December 31, 2020 and 2019, respectively. | ||
[2] | The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. | ||
[3] | In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Security Owned and Pledged as Collateral, Fair Value | $ 1,218,947,000 | $ 941,595,000 |
Allowance for receivable from brokers | 885,000 | 721,000 |
Allowance for receivable from customers | 530,000 | 650,000 |
Allowance for fees receivable | 3,348,000 | 2,620,000 |
Fixed assets, accumulated depreciation and amortization (in dollars) | 40,670,000 | 32,846,000 |
Intangible assets, accumulated amortization (in dollars) | $ 37,884,000 | $ 26,395,000 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 120,750 | 120,750 |
Preferred Stock, Liquidation Preference, Value | $ 120,750,000 | $ 120,750,000 |
Common stock, shares authorized | 125,000,000 | |
Portfolio Funds | ||
Assets | ||
Investment Owned, at Fair Value | $ 133,454,000 | $ 114,504,000 |
Common Stock Class A | ||
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 62,500,000 | 62,500,000 |
Common stock, shares issued | 49,465,491 | 47,215,938 |
Common stock, shares outstanding | 26,845,628 | 28,610,357 |
Common stock, restricted shares | 334,230 | 216,912 |
Treasury Stock, Shares | 22,619,863 | 18,605,581 |
Common Stock Class B | ||
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 62,500,000 | 62,500,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Investment banking | $ 769,486 | $ 375,025 | $ 357,222 |
Brokerage | 572,548 | 402,747 | 413,582 |
Management fees | 47,515 | 32,608 | 29,658 |
Incentive income | 592 | 1,547 | 3,117 |
Interest and dividends | 187,459 | 174,913 | 108,009 |
Reimbursement from affiliates | 1,048 | 1,026 | 1,038 |
Operating Leases, Income Statement, Lease Revenue | 0 | 0 | 1,852 |
Reinsurance premiums | 30,147 | 46,335 | 38,096 |
Other revenues | 8,621 | 5,433 | 4,504 |
Consolidated Funds | |||
Interest and dividends | 5,218 | 9,772 | 9,816 |
Other revenues | 670 | 37 | 22 |
Total revenues | 1,623,304 | 1,049,443 | 966,916 |
Interest and dividends expense | 187,725 | 168,628 | 104,116 |
Total net revenues | 1,435,579 | 880,815 | 862,800 |
Expenses | |||
Employee compensation and benefits | 860,531 | 535,772 | 512,627 |
Brokerage and trade execution costs | 139,034 | 103,235 | 109,399 |
Underwriting expenses | 22,565 | 15,067 | 15,282 |
Professional, advisory and other fees | 59,990 | 48,385 | 40,957 |
Service fees | 25,378 | 23,707 | 20,198 |
Communications | 32,593 | 31,894 | 30,801 |
Occupancy and equipment | 36,559 | 39,726 | 41,602 |
Depreciation and amortization | 22,677 | 20,460 | 12,436 |
Client services and business development | 20,526 | 50,371 | 35,927 |
Goodwill Impairment | 0 | 4,100 | 0 |
Reinsurance claims, commissions and amortization of deferred acquisition costs | 33,905 | 44,070 | 41,086 |
Other expenses | 33,195 | 23,114 | 22,014 |
Consolidated Funds | |||
Interest and dividends | 2,064 | 4,602 | 6,534 |
Professional, advisory and other fees | 2,087 | 2,426 | 938 |
Brokerage and trade execution costs | 37 | 122 | 256 |
Other expenses | 1,221 | 1,813 | 887 |
Total expenses | 1,292,362 | 948,864 | 890,944 |
Other income (loss) | |||
Net gains (losses) on securities, derivatives and other investments | 175,877 | 80,409 | 68,043 |
Gain/(loss) on debt extinguishment | 2,719 | 0 | (556) |
Consolidated Funds | |||
Net realized and unrealized gains (losses) on investments and other transactions | (26,188) | 59,384 | 46,656 |
Net realized and unrealized gains (losses) on derivatives | 1,850 | (1,003) | 9,408 |
Net gains (losses) on foreign currency transactions | (38) | (18) | 191 |
Total other income (loss) | 154,220 | 138,772 | 123,742 |
Income (loss) before income taxes | 297,437 | 70,723 | 95,598 |
Income tax expense (benefit) | 90,373 | 14,853 | 15,719 |
Net income (loss) | 207,064 | 55,870 | 79,879 |
Net Income (Loss) Attributable to Noncontrolling Interest | (9,299) | 31,239 | 37,060 |
Net income (loss) attributable to Cowen Inc. | 216,363 | 24,631 | 42,819 |
Preferred stock dividends | 6,792 | 6,792 | 6,792 |
Net income (loss) attributable to Cowen Inc. common stockholders | $ 209,571 | $ 17,839 | $ 36,027 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 27,790 | 29,525 | 29,545 |
Diluted (in shares) | 29,519 | 31,286 | 30,735 |
Earnings (loss) per share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 7.54 | $ 0.60 | $ 1.22 |
Earnings Per Share, Diluted (in dollars per share) | $ 7.10 | $ 0.57 | $ 1.17 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 207,064 | $ 55,870 | $ 79,879 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | (2) | 0 | 3 |
Total other comprehensive income (loss), net of tax | (2) | 0 | 3 |
Comprehensive income (loss) | 207,062 | 55,870 | 79,882 |
Net Income (Loss) Attributable to Noncontrolling Interest | (9,299) | 31,239 | 37,060 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 216,361 | $ 24,631 | $ 42,822 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Convertible Debt | Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Additional Paid-in Capital | Additional Paid-in CapitalConvertible Debt | Accumulated Other Comprehensive Income (Loss) | Retained Earnings/(Accumulated deficit) | Retained Earnings/(Accumulated deficit)Cumulative Effect, Period of Adoption, Adjustment | Nonredeemable Noncontrolling Interests [Member] | Permanent Equity [Member] | Permanent Equity [Member]Convertible Debt | Common Stock Class A | Common Stock Class ACumulative Effect, Period of Adoption, Adjustment | Common Stock Class ARetained Earnings/(Accumulated deficit) | Preferred Stock | Convertible Preferred StockRetained Earnings/(Accumulated deficit) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total Stockholders' Equity | $ (559) | ||||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 105,587 | ||||||||||||||||
Common stock | $ 324 | ||||||||||||||||
Common stock, shares outstanding, start at Dec. 31, 2017 | 29,632,020 | ||||||||||||||||
Balance, start at Dec. 31, 2017 | $ 748,019 | $ (186,846) | $ 1,004,664 | $ (8) | $ (70,116) | $ (559) | $ 853,606 | $ (559) | $ 1 | ||||||||
Preferred stock, shares outstanding, start at Dec. 31, 2017 | 120,750 | ||||||||||||||||
Redeemable Non-controlling Interest, start at Dec. 31, 2017 | 335,017 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) attributable to Cowen Inc. | 42,819 | 42,819 | 42,819 | ||||||||||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable | 12,308 | 12,308 | |||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | 24,752 | ||||||||||||||||
Foreign currency translation | 3 | 3 | 3 | ||||||||||||||
Capital contributions | 107,117 | 7,888 | 7,888 | ||||||||||||||
Capital withdrawals | (249,963) | 28,344 | 28,344 | ||||||||||||||
Noncontrolling Interest, Decrease from Deconsolidation | 32,559 | 32,559 | |||||||||||||||
Restricted stock awards issued, shares | 2,009,435 | ||||||||||||||||
Purchase of treasury stock, at cost, shares | (3,203,595) | ||||||||||||||||
Purchase of treasury stock, at cost | (47,296) | (47,296) | (47,296) | ||||||||||||||
Common stock issued during period, value, acquisitions | 0 | ||||||||||||||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | (28,974) | ||||||||||||||||
Preferred dividends paid | (6,792) | (6,792) | $ (6,792) | ||||||||||||||
Embedded Cash Conversion Option | 21,195 | 21,195 | 21,195 | ||||||||||||||
Amortization of share based awards | 37,018 | 37,018 | 37,018 | ||||||||||||||
Common stock, shares outstanding, end at Dec. 31, 2018 | 28,437,860 | ||||||||||||||||
Balance, end at Dec. 31, 2018 | 794,407 | (234,142) | 1,062,877 | (5) | (34,648) | 859,287 | $ 1 | ||||||||||
Preferred stock, shares outstanding, end at Dec. 31, 2018 | 120,750 | ||||||||||||||||
Redeemable Non-controlling Interest, end at Dec. 31, 2018 | 216,923 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 64,880 | ||||||||||||||||
Common stock | $ 324 | ||||||||||||||||
Net income (loss) attributable to Cowen Inc. | 24,631 | 24,631 | 24,631 | ||||||||||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable | 22,797 | 22,797 | |||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | 8,442 | ||||||||||||||||
Foreign currency translation | 0 | ||||||||||||||||
Capital contributions | 266,504 | 11,655 | 11,655 | ||||||||||||||
Capital withdrawals | (100,594) | 5,012 | 5,012 | ||||||||||||||
Noncontrolling Interest, Decrease from Deconsolidation | 0 | ||||||||||||||||
Restricted stock awards issued, shares | 2,407,857 | ||||||||||||||||
Purchase of treasury stock, at cost, shares | (3,268,710) | ||||||||||||||||
Purchase of treasury stock, at cost | (50,159) | (50,159) | 50,159 | ||||||||||||||
Common stock issued during period, shares, acquisitions | 1,033,350 | ||||||||||||||||
Common stock issued during period, value, acquisitions | 14,446 | 14,436 | 14,446 | $ 10 | |||||||||||||
Preferred dividends paid | (6,792) | 6,792 | (6,792) | ||||||||||||||
Embedded Cash Conversion Option | (596) | (596) | (596) | ||||||||||||||
Amortization of share based awards | 33,918 | 33,918 | 33,918 | ||||||||||||||
Common stock, shares outstanding, end at Dec. 31, 2019 | 28,610,357 | ||||||||||||||||
Balance, end at Dec. 31, 2019 | 904,175 | (284,301) | 1,110,635 | (5) | (16,809) | $ (10) | 904,175 | $ (10) | $ 1 | ||||||||
Preferred stock, shares outstanding, end at Dec. 31, 2019 | 120,750 | ||||||||||||||||
Redeemable Non-controlling Interest, end at Dec. 31, 2019 | 391,275 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total Stockholders' Equity | 809,855 | $ (10) | |||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 94,320 | 94,320 | |||||||||||||||
Common stock | $ 334 | ||||||||||||||||
Net income (loss) attributable to Cowen Inc. | 216,363 | 216,363 | 216,363 | ||||||||||||||
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable | 23,625 | 23,625 | |||||||||||||||
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | (32,924) | ||||||||||||||||
Foreign currency translation | (2) | (2) | (2) | ||||||||||||||
Capital contributions | 184,223 | 201,223 | 201,223 | ||||||||||||||
Capital withdrawals | (181,863) | (78,251) | (78,251) | ||||||||||||||
Increase in noncontrolling interest due to consolidation of entity | 48,596 | 48,596 | 48,596 | ||||||||||||||
Noncontrolling Interest, Decrease from Deconsolidation | (360,711) | 89,889 | 89,889 | ||||||||||||||
Restricted stock awards issued, shares | 2,174,859 | ||||||||||||||||
Purchase of treasury stock, at cost, shares | (4,014,282) | ||||||||||||||||
Purchase of treasury stock, at cost | (62,569) | (62,569) | 62,569 | ||||||||||||||
Common stock issued during period, shares, acquisitions | 74,694 | ||||||||||||||||
Common stock issued during period, value, acquisitions | 926 | 926 | 926 | $ 0 | |||||||||||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | $ (29,645) | $ (29,645) | $ (29,645) | ||||||||||||||
Preferred dividends paid | (6,792) | (6,792) | $ (6,792) | ||||||||||||||
Dividends, Cash | (6,851) | (6,851) | $ (6,851) | ||||||||||||||
Amortization of share based awards | 48,222 | 48,222 | 48,222 | ||||||||||||||
Common stock, shares outstanding, end at Dec. 31, 2020 | 26,845,628 | ||||||||||||||||
Balance, end at Dec. 31, 2020 | 1,169,121 | $ (346,870) | $ 1,130,138 | $ (7) | $ 185,901 | $ 1,169,121 | $ 1 | ||||||||||
Preferred stock, shares outstanding, end at Dec. 31, 2020 | 120,750 | ||||||||||||||||
Redeemable Non-controlling Interest, end at Dec. 31, 2020 | 0 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Total Stockholders' Equity | 969,497 | ||||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 199,624 | $ 199,624 | |||||||||||||||
Common stock | $ 334 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ / shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 207,064 | $ 55,870 | $ 79,879 |
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities: | |||
Depreciation and amortization | 22,677 | 20,460 | 12,436 |
Goodwill Impairment | 0 | 4,100 | 0 |
Amortization of debt issuance costs | 1,512 | 1,129 | 1,153 |
Amortization of debt discount (premium) | 4,490 | 4,598 | 5,473 |
Noncash lease expense | (561) | (2,148) | 0 |
Impairment of Leasehold | 2,425 | 0 | 0 |
Gain (Loss) on Extinguishment of Debt, Cash Portion | (2,719) | 0 | 652 |
Share-based compensation | 48,222 | 33,918 | 37,018 |
Change in deferred taxes | 70,136 | 13,295 | 15,486 |
Deferred rent obligations | 0 | 0 | (3,036) |
Gain (Loss) on disposal of fixed assets | 0 | (233) | (15,343) |
Purchases of securities owned, at fair value | (1,682,598) | (2,107,956) | (3,830,757) |
Proceeds from sales of securities owned, at fair value | 1,793,934 | 2,042,946 | 4,032,937 |
Proceeds from sales of securities sold, not yet purchased, at fair value | 821,829 | 1,360,075 | 2,794,434 |
Payments to cover securities sold, not yet purchased, at fair value | (850,608) | (1,408,043) | (2,927,916) |
Proceeds from other investments | 22,453 | 23,886 | 10,157 |
Net (gains) losses on securities, derivatives and other investments | (161,699) | (74,284) | (54,032) |
Consolidated Funds | |||
Purchases of securities owned, at fair value | (1,912,137) | (2,725,439) | (887,728) |
Proceeds from sales of securities owned, at fair value | 1,793,528 | 2,618,200 | 835,002 |
Purchases of other investments | (2,090) | (3,408) | (2,835) |
Proceeds from other investments | 6,734 | 23,954 | 231,559 |
Net realized and unrealized (gains) losses on investments and other transactions | 21,597 | (90,900) | (52,807) |
(Increase) decrease in operating assets: | |||
Securities owned, at fair value, held at broker-dealer | (335,510) | (990,356) | (57,732) |
Receivable on derivative contracts, at fair value | 11,394 | (37,522) | 44,053 |
Securities borrowed | (1,153,746) | (346,646) | 35,353 |
Deposits with clearing organizations, brokers and banks | (13,197) | (2,332) | 4,573 |
Receivable from brokers, dealers and clearing organizations | (1,048,049) | 104,418 | (277,935) |
Receivable from customers, net of allowance | 1,684 | (67,789) | 12,033 |
Fees receivable, net of allowance | (33,991) | (7,143) | (6,401) |
Due from related parties | 5,498 | 7,120 | 1,405 |
Other assets | 63,626 | (6,501) | 6,017 |
Consolidated Funds | |||
Cash and cash equivalents | 8,075 | 7,299 | (19,501) |
Receivable on derivative contracts, at fair value | (19,710) | (1,417) | (1,896) |
Receivable from brokers | (961) | (17,636) | (2,684) |
Other assets | 564 | (159) | (538) |
Increase (decrease) in operating liabilities: | |||
Securities sold, not yet purchased, at fair value, held at broker dealer | 286,105 | 277,119 | 26,232 |
Securities sold under agreement to repurchase | (18,208) | 23,244 | 0 |
Payable for derivative contracts, at fair value | 15,399 | 44,679 | 2,305 |
Securities loaned | 874,548 | 1,187,014 | (41,979) |
Payable to brokers, dealers and clearing organizations | 144,125 | 42,287 | (23,422) |
Payable to customers | 1,250,102 | (94,929) | 172,686 |
Commission management payable | 45,367 | (23,650) | 24,819 |
Compensation payable | 134,522 | (38,954) | 64,456 |
Fees payable | 22,293 | (1,025) | 14,518 |
Due to related parties | 254 | (5,320) | 1 |
Accounts payable, accrued expenses and other liabilities | 55,879 | (3,148) | 17,723 |
Consolidated Funds | |||
Contributions received in advance | 450 | 50 | 0 |
Payable to brokers | 8,560 | (22,657) | 22,770 |
Payable for derivative contracts, at fair value | 11,967 | 3,106 | (5,467) |
Due To Related Parties, Consolidated Funds | (386) | 581 | 0 |
Accounts payable, accrued expenses and other liabilities | 436 | (129) | 369 |
Net Cash Provided by (Used in) Operating Activities | 521,279 | (179,910) | 324,176 |
Cash flows from investing activities: | |||
Securities purchased under agreement to resell | (191) | 0 | 0 |
Purchases of other investments | (48,634) | (19,812) | (28,092) |
Purchase of business | (5,647) | (48,581) | 0 |
Proceeds from sales of other investments | 44,371 | 35,648 | 18,782 |
Proceeds from loans held for investment | 0 | 0 | 14 |
Purchase of fixed assets and intangibles | (10,721) | (14,882) | (8,586) |
Net Cash Provided by (Used in) Investing Activities | (20,822) | (47,627) | (17,882) |
Cash flows from financing activities: | |||
Repayments on convertible debt | (69,841) | (14,068) | (6,708) |
Payments of Debt Issuance Costs | 1,700 | 2,077 | 3,985 |
Borrowings on notes and other debt | 159,821 | 87,365 | 102,382 |
Repayments on notes and other debt | (121,472) | (10,263) | (16,601) |
Purchase of treasury stock | $ (47,314) | $ (15,217) | $ (31,762) |
Cash dividends paid | $ (5,710) | $ 0 | $ 0 |
Preferred dividends paid | $ (6,792) | $ (6,792) | $ (6,792) |
Contingent liability payment | (5,653) | (1,234) | (797) |
Capital contributions by non-controlling interests in operating entities | 9,730 | 11,110 | 941 |
Capital withdrawals to non-controlling interests in operating entities | (5,605) | (3,785) | (2,774) |
Consolidated Funds | |||
Capital contributions by non-controlling interests in Consolidated Funds | 375,715 | 267,049 | 114,064 |
Capital withdrawals to non-controlling interests in Consolidated Funds | (255,597) | (111,650) | (276,357) |
Net Cash Provided by (Used in) Financing Activities | 25,582 | 200,438 | (128,389) |
Change in cash and cash equivalents | 526,039 | (27,099) | 177,905 |
Total cash beginning of period | 415,014 | 442,113 | 264,208 |
Cash and cash equivalents | 645,169 | 301,123 | 259,148 |
Cash collateral pledged | 110,743 | 6,563 | 6,318 |
Segregated cash | 185,141 | 107,328 | 176,647 |
Total cash at end of period | 941,053 | 415,014 | 442,113 |
Supplemental information | |||
Cash paid during the year for interest | 153,653 | 145,877 | 90,843 |
Cash paid during the year for taxes | 4,783 | 4,310 | 3,881 |
Purchase of treasury stock, at cost, through net settlement | 15,147 | 15,217 | 12,310 |
Dividends, Preferred Stock, Cash | (6,792) | (6,792) | (6,792) |
Net assets (liabilities) acquired upon acquisition (net of cash) | 9,865 | 90,727 | 0 |
Initial recognition of right of use asset | 103,694 | ||
Initial recognition of lease liability | 110,505 | ||
Noncash transfer of net assets from Unconsolidated Master Fund to Consolidated Fund | 8,820 | ||
Decrease in noncontrolling interest due to deconsolidation of entity | 450,600 | 32,559 | |
Increase in noncontrolling interest due to consolidation of entity | 48,596 | ||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | 28,974 | ||
Common stock issuance upon close of acquisition | $ 926 | 14,446 | 0 |
Noncash transfer of net assets from Unconsolidated Master Fund to Consolidated Fund | $ 8,820 | ||
Merger Master | |||
Supplemental information | |||
Noncash transfer of net assets from Unconsolidated Master Fund to Consolidated Fund | 97,655 | ||
Noncash transfer of net assets from Unconsolidated Master Fund to Consolidated Fund | $ 97,655 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2020 | |
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, information and technology services, and energy. Op Co’s CIM division includes advisers to investment funds (including private equity structures and privately placed hedge funds) and registered funds. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies a. Basis of presentation These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") as promulgated by the Financial Accounting Standards Board ("FASB") through Accounting Standards Codification (the "Accounting Standards") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to specialized industry accounting. The Company serves as the managing member/general partner and/or investment manager to investment funds which it sponsors and manages. Investment funds in which the Company has a controlling financial interest are consolidated with the Company. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these investment funds on a gross basis. The ownership interests in these investment funds that are not owned by the Company are reflected as redeemable or nonredeemable non-controlling interests, dependent on the non-controlling interest holder's redemption rights, in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these investment funds are eliminated in consolidation. During 2019, the Company carried out an analysis to evaluate instances where non-controlling interest parties have the unilateral right to redeem their ownership interest for cash, which resulted in a change to the presentation of certain nonredeemable non-controlling interests into permanent equity. Accordingly, prior period amounts have been recast to be presented separately from redeemable non-controlling interests within the permanent equity section of the accompanying consolidated statements of changes in equity. The change to the presentation of nonredeemable non-controlling interests has no impact on net income (loss) attributable to Cowen Inc. common stockholders, total assets or total liabilities. With respect to the Company's private equity investment management strategies, a portion of the Company's carried interest is granted to employees through profit-sharing awards designed to more closely align compensation with the overall realized performance of the Company. These arrangements enable certain employees to earn compensation based on performance revenue earned by the Company and are recorded within compensation payable in the accompanying consolidated statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. Prior period amounts have been recast to reflect this accounting treatment. b. Principles of consolidation The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary. The Company consolidates three investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2020, the Company consolidated the following investment funds: Ramius Enterprise LP (“Enterprise LP”), Cowen Private Investments LP ("Cowen Private"), and Cowen Sustainable Investments I LP ("CSI I LP"). These funds are referred to as each a "Consolidated Fund" and collectively the "Consolidated Funds". During the second quarter of 2020, the Company deconsolidated Ramius Merger Fund LLC (the "Merger Fund") and UCITS Fund ("UCITS Fund") due to a partial redemption of the Company’s direct portfolio fund investment in Merger Fund and a partial termination of the notional value of UCITS Fund units referenced in a total return swap with a third party. The Company continues to hold a direct retained portfolio fund investment in the Merger Fund and continues to have economic exposure to the returns of UCITS Fund through a total return swap with a third party. Both Merger Fund and UCITS Fund continue to be related parties of the Company after deconsolidation. CSI I Golden Holdco LP ("Golden HoldCo") and CSI I Prodigy Holdco LP ("Prodigy HoldCo") were consolidated through November 2020 when the Company raised additional capital within the sustainable investing strategy that diluted the Company's direct and indirect ownership. As a result, the Company's direct and indirect ownership in Golden Holdco and Prodigy Holdco is no longer expected to be significant to either entity and the entities were deconsolidated. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting operating entity ("VOE") or a variable interest entity ("VIE") under US GAAP. Voting Operating Entities —VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns. Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units. Variable Interest Entities— VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE. As of December 31, 2020, the total assets and total liabilities of the consolidated VIEs were $325.5 million and $10.1 million , respectively. As of December 31, 2019, the total assets and total liabilities of the consolidated VIEs were $685.4 million and $24.9 million, respectively. The deconsolidation of two Consolidated Funds decreased the overall VIEs net assets. The VIEs act as investment managers and/or investment companies that may be managed by the Company or the Company may have equity interest in those investment companies. The VIEs are financed through their operations and/or loan agreements with the Company. At December 31, 2019, the Company held a variable interest in Ramius Merger Master Fund Ltd ("Merger Master" or the "Unconsolidated Master Fund") through the consolidated the Merger Fund. Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. Therefore, the Company had not consolidated the Unconsolidated Master Fund. In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company does not consolidate the Unconsolidated Master Fund or real estate funds that are VIEs due to the Company's conclusion that it is not the primary beneficiary of these funds in each instance. Investment fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company has equity interests in the funds as both a general partner and a limited partner. In these instances the Company has concluded that the variable interests are not potentially significant to the VIE. Although the Company may advance amounts and pay certain expenses on behalf of the investment funds that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services. (see Note 6 for additional disclosures on VIEs). Equity Method Investments —For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary. Other —If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Retention of Specialized Accounting — The Consolidated Funds and certain other consolidated companies are investment companies and apply specialized industry accounting. The Company reports its investments on the consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company. 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 net realized and unrealized gains (losses) on investments and other transactions. 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 International Limited ("Cowen International Ltd"), and Cowen Prime Services LLC ("Cowen Prime") 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 Effective January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”). ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer). The Company identified securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, corporate finance and syndicate receivables, management fees and incentive fees receivable) as impacted by the new guidance. ASC 326 specifies that the Company adopt the new guidance prospectively by means of a cumulative-effect adjustment to the opening retained earnings as of the beginning of the first reporting period effective. Accordingly, the Company recognized a cumulative effective adjustment of $0.01 million upon adoption. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including securities borrowed and 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 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 US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is based on their proportional rights of the underlying portfolio company, and is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation impact the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the 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, real estate investments, carried interest and equity method investments, which are valued as follows: i. Portfolio funds— Portfolio funds (“Portfolio Funds”) include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The 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 securities, derivatives and 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. 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 position, provided a legal right of offset exists. See Notes 6 for further information about offsetting of derivative financial instruments. h. Due from/due to related parties The Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition. 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 account of brokers and dealers. Pursuant to the master netting agreements the Company has entered into with its brokers, dealers and clearing organizations, receivables and payables arising from unsettled trade are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held at multiple financial institutions. 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 related to security transactions are reported net of an allowance for credit losses. Management and incentive fees are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 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 2d for further information. Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Accrued interest income and expense are recorded in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations, respectively, on an accrual basis in the accompanying consolidated statements of financial condition. At December 31, 2020 and 2019, the Company did n |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisition 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 is not expected to be 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: (dollars in thousands) Fixed assets $ 101 Operating lease right-of-use assets 1,120 Intangible assets 1,224 Other assets 43 Compensation payable (533) Operating lease liabilities (1,446) Total net identifiable assets acquired and liabilities assumed 509 Goodwill 9,356 Total estimated purchase price $ 9,865 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: Estimated intangible assets acquired Estimated average remaining useful lives (dollars in thousands) (in years) Intangible asset class Trade name $ 131 3 Customer relationships 749 4 Non-compete agreements 344 5 Total intangible assets $ 1,224 Amortization expense for the year ended December 31, 2020 was $0.1 million, and is included in depreciation and amortization in the accompanying consolidated statements of operations. The estimated amortization expense related to these intangible assets in future periods is as follows: (dollars in thousands) 2021 $ 300 2022 300 2023 289 2024 209 2025 52 Thereafter — $ 1,150 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. Quarton On January 2, 2019 (the "Quarton Acquisition Date"), the Company, together with its indirect wholly owned subsidiaries, Cowen International Ltd and Cowen QN Acquisition LLC, completed its previously announced acquisition (the "Quarton Acquisition") of Quarton International AG through the acquisition of all of the outstanding equity interest of Quarton International AG's affiliated combining companies, Quarton Management AG, Quarton International Europe AG, Quarton Partners, LLC and Quarton Securities GP, LLC (which owns a formerly U.S. Securities Exchange Commission ("SEC") registered broker-dealer that was subsequently renamed to Cowen Securities L.P. ("Cowen Securities") (see Note 28), comprising the U.S. and European operations of the acquired combining companies (collectively "Quarton"). Quarton was a group of leading global financial advisory companies serving the middle market. Quarton's operations were primarily conducted through eight entities based in the United States, Switzerland, and Germany. The Quarton Acquisition was accounted for under the acquisition method of accounting in accordance with US GAAP. As such, results of operations for Quarton are included in the accompanying consolidated statements of operations since the Quarton Acquisition Date, and the assets acquired and liabilities assumed were recorded at their fair value as of the Quarton Acquisition Date. Subsequent to the Quarton Acquisition, the operations of Quarton were integrated within the Company's existing businesses. The aggregate estimated purchase price of the Quarton Acquisition was $103.0 million. On the Quarton Acquisition Date the Company paid upfront consideration of $75.3 million subject to certain net working capital and other customary adjustments, with additional maximum contingent consideration of $40.0 million that will become payable dependent on the achievement of certain milestones by Quarton in each of the first four years (five years if certain conditions are met) following the Quarton Acquisition Date subject to a $10 million maximum in each year and a $40.0 million cumulative maximum. The Company estimated the contingent consideration at $27.7 million using 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. A portion of the preliminary purchase price was deposited into escrow, in the amount of $0.6 million, as a reserve for any future claims against the sellers of Quarton. All consideration, including the upfront consideration and contingent consideration, consists of a combination of 80% cash and 20% shares of the Company's Class A common stock. Shares issued on the Quarton Acquisition Date of 1,033,350 were valued based on the 30-trading day volume-weighted average price per share of $14.52 as of December 31, 2018. The fair value of the shares of Class A common stock issued was determined on the basis of the closing market price of the Company's shares on the Quarton Acquisition Date. Any shares of Class A common stock issued in connection with any such contingent payments will be valued based on the 30-trading day volume-weighted average price per share as of the day immediately prior to the date on which such shares are to be issued. In addition, Quarton and the Company have established a retention bonus pool, for Quarton employees that remain employed at the end of each year there is a contingent payment which will be settled in a combination of 80% cash and 20% shares of the Company's Class A common stock based on Quarton meeting certain economic performance hurdles. The bonus pool has an aggregate maximum of $10.0 million over a five The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of January 2, 2019: (dollars in thousands) Cash and cash equivalents $ 12,236 Fees receivable 7,269 Fixed assets 1,085 Operating lease right-of-use assets 3,200 Intangible assets 22,200 Other assets 667 Compensation payable (637) Operating lease liabilities (3,200) Due to related parties (4,750) Accounts payable, accrued expenses and other liabilities (16,257) Total identifiable net assets acquired and liabilities assumed 21,813 Goodwill 81,150 Total estimated purchase price $ 102,963 As of the Quarton Acquisition Date, the estimated fair value of the Company's intangible assets, as acquired through the Quarton Acquisition, was $22.2 million and had a weighted average useful life of 2.8 years. The allocation of the intangible assets is shown within the following table: Estimated intangible assets acquired Estimated average remaining useful lives (dollars in thousands) (in years) Intangible asset class Trade name $ 900 3 Customer relationships 7,100 4 Backlog 12,600 2 Proprietary software 1,600 3 Total intangible assets $ 22,200 Amortization expense for the years ended December 31, 2020 and 2019 was $8.9 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: (dollars in thousands) 2021 $ 2,608 2022 1,775 2023 — 2024 — 2025 — Thereafter — $ 4,383 |
Cash Collateral Pledged
Cash Collateral Pledged | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash Collateral Pledged | Cash Collateral Pledged As of December 31, 2020 and 2019, the Company pledged cash collateral in the amount of $4.0 million and $4.6 million respectively, which relates to letters of credit issued to the landlords of the Company's premises in New York City, Boston and San Francisco. The Company also has pledged cash collateral for reinsurance agreements which amoun t ed to $106.8 million, as of December 31, 2020, and $2.0 million, as of December 31, 2019, which are expected to be released periodically as per the terms of the reinsurance policy between June 30, 2021 and March 31, 2024 (see Notes 18 and 23). As of December 31, 2020 , the Company has the following irrevocable letters of credit, rela ted to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. Location Amount Maturity (dollars in thousands) New York $ 208 April 2021 New York $ 1,424 October 2022 New York $ 1,252 November 2021 Boston $ 386 March 2021 San Francisco $ 712 October 2025 $ 3,982 To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2020 and 2019 there were no amounts due related to these letters of credit. |
Segregated Cash
Segregated Cash | 12 Months Ended |
Dec. 31, 2020 | |
Segregated Cash [Abstract] | |
Segregated Cash | Segregated CashAs of December 31, 2020 and 2019, cash segregated in compliance with federal regulations and other restricted deposits of $185.1 million and $107.3 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 |
Investments of Operating Entiti
Investments of Operating Entities and Consolidated Funds | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments of Operating Entities and Consolidated Funds | Investments of Operating Entities and Consolidated Funds a. Operating entities Securities owned, at fair value Securities owned, at fair value are held by the Company and are considered held for trading. Substantially all equity securities, which are not part of the Company's self-clearing securities finance activities, are pledged to external clearing brokers under terms which permit the external clearing broker to sell or re-pledge the securities to others subject to certain limitations. As of December 31, 2020 and 2019, securities owned, at fair value consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Common stock $ 1,770,451 $ 1,546,484 Preferred stock 69,358 12,656 Warrants and rights 27,701 22,109 Government bonds 19,721 15,916 Corporate bonds 86,503 25,500 Convertible bonds 6,040 2,500 Term loan (*) 12,623 1,067 Trade claims (*) 9,205 7,320 $ 2,001,602 $ 1,633,552 (*) The Company has elected the fair value option for securities owned, at fair value with a fair value of $8.8 million and $8.4 million, respectively, at December 31, 2020 and 2019. Receivable on and Payable for derivative contracts, at fair value The Company's direct involvement with derivative financial instruments includes futures, currency forwards, equity swaps, credit default swaps and options. The Company's derivatives trading activities expose the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets. The Company's long and short exposure to derivatives is as follows: Receivable on derivative contracts As of December 31, 2020 2019 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Currency forwards $ 4,902 $ 15 $ — $ — Swaps $ 944,544 64,634 $ 383,752 6,151 Options other (a) 371,188 49,102 550,188 60,066 Netting - swaps (b) (62,269) (3,240) $ 51,482 $ 62,977 Payable for derivative contracts As of December 31, 2020 2019 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Futures $ — $ — $ 10,224 $ 217 Currency forwards $ 123,346 3,067 $ 77,790 851 Swaps $ 896,863 43,560 $ 607,717 26,409 Options other (a) 198,320 66,566 306,306 36,524 Netting - swap (b) (37,033) (3,240) $ 76,160 $ 60,761 (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 2g for further information on offsetting of derivative financial instruments. The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2020 and 2019. This table does not include the impact of over-collateralization. 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, 2020 Receivable on derivative contracts, at fair value $ 113,751 $ 62,269 $ 51,482 $ 691 $ 169 $ 50,622 Payable for derivative contracts, at fair value 113,193 37,033 76,160 691 3,174 72,295 As of December 31, 2019 Receivable on derivative contracts, at fair value $ 66,217 $ 3,240 $ 62,977 $ — $ 2,911 $ 60,066 Payable for derivative contracts, at fair value 64,001 3,240 60,761 — 24,020 36,741 (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 $(146.9) million, $(13.0) million and $14.3 million for the years ended December 31, 2020, 2019, and 2018, respectively, and are included in other income 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 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, 2020 and 2019, all derivative contracts were with major financial institutions. Other investments As of December 31, 2020 and 2019, other investments included the following: As of December 31, 2020 2019 (dollars in thousands) Portfolio funds, at fair value (1) $ 133,454 $ 114,504 Carried interest (2) 82,892 30,360 Equity method investments (3) 38,681 40,858 $ 255,027 $ 185,722 (1) Portfolio Funds, at fair value The Portfolio Funds, at fair value as of December 31, 2020 and 2019, included the following: As of December 31, 2020 2019 (dollars in thousands) Starboard Value and Opportunity Fund LP (c)(*) $ 42,519 $ 37,895 Formation8 Partners Fund I, L.P. (f) 31,894 33,613 Cowen Healthcare Investments II LP (i) (*) 26,186 14,652 Lagunita Biosciences, LLC (d) 3,850 4,802 Eclipse Ventures Fund I, L.P. (b) 4,457 3,960 HealthCare Royalty Partners II LP (a)(*) 1,588 1,781 RCG Longview Debt Fund V, L.P. (g)(*) — 1,732 HealthCare Royalty Partners LP (a)(*) 1,072 1,326 Starboard Leaders Fund LP (e)(*) 2,020 1,560 Eclipse SPV I, LP (j)(*) 1,708 1,447 Ramius Merger Fund LLC (m)(*) 2,197 — TriArtisan ES Partners LLC (k)(*) 1,657 1,082 Cowen Healthcare Investments III LP (i)(*) 5,714 1,398 TriArtisan PFC Partners LLC (l)(*) 691 909 Starboard Value and Opportunity Fund Ltd (c) (*) 2,364 — Eclipse Ventures Fund II, L.P. (b) 1,733 1,330 Eclipse Continuity Fund I, L.P. (b) 1,101 823 Difesa Partners, LP (h) (*) 848 508 BDC Fund I Coinvest 1, L.P. (n) (*) 1,250 — Other private investment (o)(*) 326 4,448 Other affiliated funds (p)(*) 279 1,238 $ 133,454 $ 114,504 * These Portfolio Funds are affiliates of the Company. The Company has no unfunded commitments regarding the Portfolio Funds held by the Company except as noted in Note 22. (a) HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. (b) Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated. (c) Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice. (d) Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (e) Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution. (f) Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. (g) RCG Longview Debt Fund V, L.P. is a real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated. (h) Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice. (i) Cowen Healthcare Investments II LP and Cowen Healthcare Investments III 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) 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. (o) Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy. (p) 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, 2020 and 2019, included the following: As of December 31, 2020 2019 (dollars in thousands) Cowen Healthcare Investments II LP $ 62,112 $ 23,759 Cowen Healthcare Investments III LP 11,520 — TriArtisan TGIF Partners LLC 3,361 — TriArtisan ES Partners LLC 3,152 — TriArtisan PFC Partners LLC 1,455 — Ramius Multi-Strategy Fund LP 734 — Ramius Merger Fund LLC 368 — Other private investment (a) — 4,737 RCG IO Renergys Sarl 190 1,251 Ramius Multi-Strategy Fund LP — 613 $ 82,892 $ 30,360 (a) Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy. (3) Equity method investments Equity method investments include investments held by the Company in several operating companies whose operations primarily include the day-to-day management of a number of real estate funds, including the portfolio management and administrative services related to the acquisition, disposition, and active monitoring of the real estate funds' underlying debt and equity investments. The Company's ownership interests in these equity method investments range from 15% to 55%. The Company holds a majority of the outstanding ownership interest (i.e., more than 50%) in RCG Longview Partners II, LLC and 40% in Surf House Ocean Views Holdings, LLC (which is a joint venture in a real estate development project). The operating agreement that governs the management of day-to-day operations and affairs of these entities stipulates that certain decisions require support and approval from other members in addition to the support and approval of the Company. As a result, all operating decisions made in these entities requires the support of both the Company and an affirmative vote of a majority of the other managing members who are not affiliates of the Company. As the Company does not possess control over any of these entities, the presumption of consolidation has been overcome pursuant to current Accounting Standards and the Company accounts for these investments under the equity method of accounting. Also included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners and (b) Starboard Value (and certain related parties) which serves as an operating company whose operations primarily include the day-to-day management (including portfolio management) of several activist investment funds and related managed accounts. The Company completed assessments of the recoverability of the Company's equity method investments and determined that the carrying value of the investment in Surf House Ocean View Holdings, LLC exceeded the estimated fair value of the Company's interest, which was other than temporary. Accordingly, an other than temporary impairment charge of $11.3 million, $2.6 million, and $7.1 million, for the years ended December 31, 2020, 2019 and 2018, respectively, was recognized to reduce the carrying value of the investment to fair value. Impairment charges are included in net gains (losses) on securities, derivatives and other investments on the accompanying consolidated statements of operations. The Company elected to use the cumulative earnings approach for the distributions it receives from its equity method investments. Under the cumulative earnings approach, any distributions received up to the amount of cumulative earnings are treated as return on investment and classified in operating activities within the cash flows. Any excess distributions would be considered as return of investments and classified in investing activities. The following table summarizes equity method investments held by the Company: As of December 31, 2020 2019 (dollars in thousands) Starboard Value LP $ 31,528 $ 24,292 Surf House Ocean Views Holdings, LLC — 7,804 HealthCare Royalty GP III, LLC 2,213 2,230 RCG Longview Debt Fund V Partners, LLC — 2,889 RCG Longview Management, LLC 268 583 HealthCare Royalty GP, LLC 920 108 HealthCare Royalty GP II, LLC 269 302 RCG Longview Debt Fund IV Management, LLC 331 331 RCG Longview Equity Management, LLC 105 105 HCR Stafford Fund GP, LLC 1,025 880 Liberty Harbor North 222 292 Other 1,800 1,042 $ 38,681 $ 40,858 The Company's income (loss) from equity method investments was income of $18.9 million, $24.6 million and $6.4 million for the years ended December 31, 2020, 2019, and 2018, respectively, and is included in net gains (losses) on securities, derivatives and 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, 2020 and 2019, securities sold, not yet purchased, at fair value consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Common stock $ 699,894 $ 425,448 Corporate bonds 11,358 5,933 Government bonds 1,500 1,950 Preferred stock 6,589 3,686 Warrants and rights 8,774 14,819 $ 728,115 $ 451,836 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, 2020 and 2019. 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, 2020 Securities borrowed $ 1,908,187 $ — $ 1,908,187 $ — $ 1,809,399 $ — $ 98,788 Securities loaned 2,476,414 — 2,476,414 — 2,383,342 — 93,072 Securities purchased under agreements to resell 191 — 191 — 204 — (13) Securities sold under agreements to repurchase 5,036 — 5,036 — 5,544 — (508) As of December 31, 2019 Securities borrowed $ 754,441 $ — $ 754,441 $ — $ 751,913 $ — $ 2,528 Securities loaned 1,601,866 — 1,601,866 — 1,585,036 — 16,830 Securities sold under agreements to repurchase 23,244 — 23,244 — 27,384 — (4,140) (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, 2020 and 2019: Open and Overnight Up to 30 days 31 - 90 days Greater than 90 days Total (dollars in thousands) As of December 31, 2020 Securities loaned Common stock $ 2,232,687 $ — $ — $ — $ 2,232,687 Corporate bonds 243,726 — — — 243,726 Securities sold under agreements to repurchase Corporate bonds — — 5,036 — 5,036 As of December 31, 2019 Securities loaned Common stock 1,343,478 — — — 1,343,478 Corporate bonds 258,388 — — — 258,388 Securities sold under agreements to repurchase Common stock $ — $ — $ 23,244 $ — $ 23,244 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, ar e $8.0 billion and $1.3 billion as of December 31, 2020 and $6.1 billion and $617.5 million as of December 31, 2019, respectively. The carrying value of the Company's exposure to loss for these variable interest entities as of December 31, 2020 was $210.7 million , and as of December 31, 2019 was $241.2 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, 2020 and 2019, was $326.0 million and $261.7 million, respectively. The maximum exposure to loss often differs from the carrying value of exposure to loss of the variable interests. The maximum exposure to loss is dependent on the nature of the variable interests in the VIEs and is limited to the notional amounts of certain commitments and guarantees. b. Consolidated Funds Securities owned, at fair value As of December 31, 2020 and 2019, securities owned, at fair value, held by the Consolidated Funds consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Preferred stock $ — $ 4,393 Common stock 4,816 200,306 Government bonds — 161,607 Corporate bonds — 3,405 Warrants and rights 5,806 5,567 $ 10,622 $ 375,278 Receivable on derivative contracts As of December 31, 2020 and 2019, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of: As of December 31, 2020 2019 (dollars in thousands) Currency forwards $ — $ 3,302 Equity swaps — 927 Options — 1,604 $ — $ 5,833 Payable for derivative contracts As of December 31, 2020 and 2019, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of: As of December 31, 2020 2019 (dollars in thousands) Currency forwards $ — $ 88 Equity swaps — 3,931 Options — 750 $ — $ 4,769 Other investments, at fair value Investments in Portfolio Funds, at fair value As of December 31, 2020 and 2019, investments in Portfolio Funds, at fair value, included the following: As of December 31, 2020 2019 (dollars in thousands) Investments of Enterprise LP $ 104,475 $ 99,153 Investments of Merger Fund — 76,616 Investments of Cowen Sustainable Investments I LP 88,195 — $ 192,670 $ 175,769 Consolidated portfolio fund investments of Enterprise LP On May 12, 2010, the Company announced its intention to close Enterprise Master. Enterprise LP operated under a "master-feeder" structure up until January 1, 2019, when Enterprise Master distributed its capital to each feeder and was liquidated. As of December 31, 2020 and 2019, the consolidated investments in Portfolio Funds include Enterprise LP's investment in RCG Special Opportunities Fund, Ltd which is a portfolio fund that invests in a limited number of private equity investments directly as well as through affiliated portfolio funds. Consolidated portfolio fund investments of Merger Fund The Merger Fund, which was deconsolidated during the second quarter of 2020 (See Note 2b), operates under a "master-feeder" structure, whereby Merger Master shareholders are Merger Fund and Ramius Merger Fund Ltd. The consolidated investments in Portfolio Funds include Merger Fund's investment of $76.6 million in Merger Master as of December 31, 2019. The Merger Master's investment objective is to achieve consistent absolute returns while emphasizing the preservation of investor capital. The Merger Master seeks to achieve these objectives by taking a fundamental, research-driven approach to investing, primarily in the securities of issuers engaged in, or subject to, announced (or unannounced but otherwise anticipated) extraordinary corporate transactions, which may include, but are not limited to, mergers, acquisitions, leveraged buyouts, tender offers, hostile takeover bids, sale processes, exchange offers, and recapitalizations. Merger Master invests in the securities of one or more issuers engaged in or subject to such extraordinary corporate transactions. Merger Master typically seeks to derive a profit by realizing the price differential, or "spread," between the market price of securities purchased or sold short and the market price or value of securities realized in connection with the completion or termination of the extraordinary corporate transaction, or in connection with the adjustment of market prices in anticipation thereof, while seeking to minimize the market risk associated with the aforementioned investment activities. Merger Master will, depending on market conditions, generally focus the majority of its investment program on announced transactions. If the investment manager of Merger Master considers it necessary, it may either alone or as part of a group, also initiate shareholder actions seeking to maximize value. Such shareholder actions may include, but are not limited to, re-orienting management's focus or initiating the sale of the company (or one or more of its divisions) to a third party. Consolidated portfolio fund investments of Cowen Sustainable Investments I LP Cowen Sustainable Investments I LP ("CSI I LP") is a private investment fund making debt and equity investments in companies and real assets that are accelerating the global transition to a sustainable economy. The fund primarily focuses its investments around four themes: (i) renewable energy and battery storage; (ii) clean transportation; (iii) sustainable agriculture and food production; and (iv) resource and industrial efficiency. CSI I LP has made investments in ecoATM, LLC, a manufacturer and owner of automated kiosks that allow consumers to sell back unwanted smart phones, and Proterra, Inc, a designer and manufacturer of zero-emission electric transit vehicles and electric vehicle technology solutions for commercial applications. CSI I LP is a private equity-style vehicle that does not permit redemptions; proceeds realized from the fund’s investments are expected to be distributed after the end of the fund’s investment period. 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, 2020 and 2019, the Company assessed whether or not its interests in an issuer for which the Company's pro-rata share exceeds 5% of the Company's equity. There was one indirect concentration that exceeded 5% of the Company's equity as of December 31, 2020 and 2019, respectively. Through its investments in a Consolidated Fund and combined with direct Company investments, the Company maintained exposure to a particular investment which accounted for 5% or more of the Company's equity. Investment's percentage of the Company's stockholders' equity Issuer Security Type Country Industry Percentage of Stockholders' Equity Market Value (dollars in thousands) As of December 31, 2020 Linkem S.p.A. Equity, loans and warrants Italy Wireless Broadband 9.07 % $ 87,944 As of December 31, 2019 Linkem S.p.A. Equity, loans and warrants Italy Wireless Broadband 9.53 % $ 77,142 Underlying Investments of Unconsolidated Funds Held by Consolidated Funds During the second quarter of 2020, the Company deconsolidated the Merger Fund due to a partial redemption of the Company’s direct portfolio fund investment in Merger Fund. The Company continues to hold a direct retained portfolio fund investment in the Merger Fund. Merger Master As of December 31, 2019, Merger Fund's investment in Merger Master represented Merger Fund's proportionate share of Merger Master's net assets; as a result, the investment balances of Merger Master reflected below may exceed the net investment which Merger Fund has recorded. The following tables present summarized investment information for the underlying investments and derivatives held by Merger Master as of December 31, 2019: Merger Master As of December 31, 2019 Securities owned by Merger Master, at fair value (dollars in thousands) Common stock $ 76,531 Warrants and rights 748 Corporate bonds 2,074 $ 79,353 Securities sold, not yet purchased, by Merger Master, at fair value Common stock $ 29,623 Exchange traded funds 38,527 $ 68,150 Receivable on derivative contracts, at fair value, owned by Merger Master As of December 31, 2019 Description (dollars in thousands) Options $ 2,047 Equity swaps 406 $ 2,453 Payable for derivative contracts, at fair value, owned by Merger Master As of December 31, 2019 Description (dollars in thousands) Options $ 1,158 Equity swaps 268 $ 1,426 |
Fair Value Measurements for Ope
Fair Value Measurements for Operating Entities and Consolidated Funds | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements for Operating Entities and Consolidated Funds | Fair Value Measurements for Operating Entities and Consolidated FundsThe 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, 2020 and 2019: Assets at Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities owned, at fair value Government bonds $ 19,721 $ — $ — $ — $ 19,721 Preferred stock 9,391 — 59,967 — 69,358 Common stock 1,746,407 108 23,936 — 1,770,451 Convertible bonds — — 6,040 — 6,040 Corporate bonds — 86,368 135 — 86,503 Trade claims — — 9,205 — 9,205 Term loan — — 12,623 — 12,623 Warrants and rights 21,154 — 6,547 — 27,701 Receivable on derivative contracts, at fair value Currency forwards — 15 — — 15 Swaps — 64,634 — (62,269) 2,365 Options 48,851 — 251 — 49,102 Consolidated Funds Securities owned, at fair value Common stock 1,865 — 2,951 — 4,816 Warrants and rights — — 5,806 — 5,806 $ 1,847,389 $ 151,125 $ 127,461 $ (62,269) $ 2,063,706 Portfolio Funds measured at net asset value (a) 133,454 Consolidated Funds' Portfolio Funds measured at net asset value (a) 192,670 Carried interest (a) 82,892 Equity method investments (a) 38,681 Total investments $ 2,511,403 Liabilities at Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities sold, not yet purchased, at fair value Government bonds $ — $ — $ 1,500 $ — $ 1,500 Common stock 699,894 — — — 699,894 Corporate bonds — 10,654 704 — 11,358 Preferred stock 6,589 — — — 6,589 Warrants and rights 8,774 — — — 8,774 Payable for derivative contracts, at fair value Currency forwards — 3,067 — — 3,067 Swaps — 43,560 — (37,033) 6,527 Options 62,651 — 3,915 — 66,566 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 36,718 — 36,718 $ 777,908 $ 57,281 $ 42,837 $ (37,033) $ 840,993 (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 and the fourth quarter of 2020, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2020 and December 31, 2023. For both the Quarton Acquisition and the MHT Acquisition, 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 $35.1 million. The undiscounted amounts for the MHT Acquisition have no minimum or maximum as it is calculated based on revenue. (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 2g for further information on offsetting of derivative financial instruments. Assets at Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities owned, at fair value Government bonds $ 15,916 $ — $ — $ — $ 15,916 Preferred stock 4,821 — 7,835 — 12,656 Common stock 1,527,769 1,249 17,466 — 1,546,484 Convertible bonds — — 2,500 — 2,500 Corporate bonds — 23,079 2,421 — 25,500 Trade claims — — 7,320 — 7,320 Term loan — 1,067 — — 1,067 Warrants and rights 21,515 — 594 — 22,109 Receivable on derivative contracts, at fair value Swaps — 6,151 — (3,240) 2,911 Options 59,730 — 336 — 60,066 Consolidated Funds Securities owned, at fair value Government bonds 161,607 — — — 161,607 Preferred stock — — 4,393 — 4,393 Common stock 200,306 — — — 200,306 Corporate bonds — 3,405 — — 3,405 Warrants and rights — — 5,567 — 5,567 Receivable on derivative contracts, at fair value Currency forwards — 3,302 — — 3,302 Equity swaps — 927 — — 927 Options 1,604 — — — 1,604 $ 1,993,268 $ 39,180 $ 48,432 $ (3,240) $ 2,077,640 Portfolio Funds measured at net asset value (a) 114,504 Consolidated Funds' Portfolio Funds measured at net asset value (a) 175,769 Carried interest (a) 30,360 Equity method investments (a) 40,858 Total investments $ 2,439,131 Liabilities at Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities sold, not yet purchased, at fair value US Government securities $ — $ — $ 1,950 $ — $ 1,950 Common stock 425,448 — — — 425,448 Corporate bonds — 4,933 1,000 — 5,933 Preferred stock 3,686 — — — 3,686 Warrants and rights 14,819 — — — 14,819 Payable for derivative contracts, at fair value Futures 217 — — — 217 Currency forwards — 851 — — 851 Swaps — 26,409 — (3,240) 23,169 Options 33,604 — 2,920 — 36,524 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 30,896 — 30,896 Consolidated Funds Payable for derivative contracts, at fair value Currency forwards — 88 — — 88 Options 750 — — — 750 Equity swaps — 3,931 — — 3,931 $ 478,524 $ 36,212 $ 36,766 $ (3,240) $ 548,262 (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 second quarter of 2016 and the first quarter of 2019, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million. (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 2g for further information on offsetting of derivative financial instruments. The following table includes a roll forward of the amounts for the years ended December 31, 2020 and 2019 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement. Year Ended December 31, 2020 Balance at December 31, 2019 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2020 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 7,835 $ 45,530 (c) $ (1,653) (b) $ 5,891 $ (4,993) $ 7,357 $ 59,967 $ 10,846 Common stock 17,466 102 (l) (29) (a)(e) 7,288 (3,818) 2,927 23,936 1,990 Convertible bonds 2,500 — — 3,787 (1,050) 803 6,040 803 Corporate bond 2,421 — (312) (b) 666 (2,432) (208) 135 (180) Options, asset 336 — (102) (l) — — 17 251 (1) Options, liability 2,920 — — — — 995 3,915 995 Term loan — 11,149 (c) — 245 — 1,229 12,623 1,229 Warrants and rights 594 4,528 (a)(c) — — — 1,425 6,547 1,425 Trade claims 7,320 1,044 (a)(e) — 4,774 (2,944) (989) 9,205 (1,013) Corporate bond, liability 1,000 — — — — (296) 704 (248) Government bonds, liability 1,950 — — — — (450) 1,500 (450) Contingent consideration liability 30,896 — (1,235) (k) 4,218 (m) (5,653) 8,492 36,718 8,492 Consolidated Funds Preferred stock 4,393 — (4,000) (d) — — (393) — — Common stock — 4,000 (d) (100,000) (j) 100,000 — (1,049) 2,951 (1,049) Warrants and rights 5,567 — — — — 239 5,806 239 Convertible bonds $ — $ — $ (76,114) (j) $ 75,000 $ — $ 1,114 $ — $ — Year Ended December 31, 2019 Balance at December 31, 2018 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2019 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 5,168 $ — $ (1,000) (f) $ 3,513 $ (1,270) $ 1,424 $ 7,835 $ 2,285 Common stock 9,850 10,242 (g)(h) (3) (i) 11,477 (11,002) (3,098) 17,466 (3,098) Convertible bonds 3,000 — (4,826) (b)(f) 11,354 (7,072) 44 2,500 (25) Corporate bond — 4 (g) — 2,811 (533) 139 2,421 140 Options, asset — 330 (h) — — — 6 336 6 Options, liability 2,096 — — — (4) 828 2,920 828 Warrants and rights 1,666 — — — (189) (883) 594 31 Trade claim 5,543 — — 7,205 (5,506) 78 7,320 76 Corporate bond, liability — 2,525 (g) — — — (1,525) 1,000 (1,525) Government bonds, liability — 4,681 (g) — — — (2,731) 1,950 (2,731) Contingent consideration liability 3,070 — — 27,700 (1,234) 1,360 30,896 1,360 Consolidated Funds Preferred stock 24,314 — (19,929) (f) — — 8 4,393 — Common stock 94 — (94) (f) 407 (958) 551 — — Warrants and rights $ 5,279 $ — $ — $ — $ (1,758) $ 2,046 $ 5,567 $ 289 (1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations. (a) The security stopped trading on an open market. (b) The investments were converted to common stock. (c) The Company consolidated an operating entity which holds preferred stock, loans and warrants. (d) The investment was involved in a reverse merger and preferred stock was converted to common shares. (e) The transfers between level 1 and level 3 are due to the change in the availability of observable inputs. (f) The entity in which the Company is invested completed an initial public offering. (g) The investments had a change of valuation methodology due to increased activity in foreign market. (h) The holding Company which held common stock and options was liquidated. (i) Shares of common stock were exchanged for liquid warrants and rights of an acquired company. (j) The Company deconsolidated an investment fund. (k) The contingent liability reached the end of its earnout period and is now valued based on actual cash payout. (l) The options expired and converted into common stock. (m) See Note 3 (MHT Acquisition) for contingent consideration recorded. All realized and unrealized gains (losses) in the table above are reflected in other income (loss) in the accompanying consolidated statements of operations. Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. The Company recognizes all transfers and the related unrealized gain (loss) at the beginning of the reporting period. Transfers between level 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, 2020 and 2019 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments. Quantitative Information about Level 3 Fair Value Measurements Fair Value December 31, 2020 Valuation Techniques Unobservable Inputs Range Weighted Average Level 3 Assets (dollars in thousands) Common and preferred stocks $ 65,735 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 10% - 12% 6.25x - 6.75x 11% 6.5x Options 251 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 10% - 12% 6.25x - 6.75x 11% 6.5x Trade claims 3,500 Discounted cash flows Discount rate 15% 15% Warrants and rights 11,217 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 4% - 11% 6.25x - 6.75x 7.0% 6.5x Corporate, convertible bonds and term loan 12,623 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 10% - 12% 6.25x - 6.75x 11% 6.5x Other level 3 assets (a) 34,135 Total level 3 assets $ 127,461 Level 3 Liabilities Options 3,915 Option pricing models Volatility 35% 35% Contingent consideration liability 36,718 Discounted cash flows Monte Carlo simulation Discount rate Volatility 9% - 16% 22% - 24% 15% 22% Other level 3 liabilities (a) 2,204 Total level 3 liabilities $ 42,837 Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2019 Valuation Techniques Unobservable Inputs Range Weighted Average Level 3 Assets (dollars in thousands) Common and preferred stocks $ 10,876 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 8% - 11.25% 6.5x - 7x 10.4% 6.75x Trade claims 24 Discounted cash flows Discount rate 20% 20% Warrants and rights 6,162 Model based Discounted cash flows Volatility Discount rate 30% 6% - 7% —% 6.1% Options 336 Option pricing models Discount rate EBITDA Market Multiples 9.75% - 11.25% 6.5x - 7x 10.5% 6.75x Corporate and convertible bonds 311 Discounted cash flows Recovery Discount rate Probability of recovery 20% 1% - 3% 20% 2.3% Other level 3 assets (a) 30,723 Total level 3 assets $ 48,432 Level 3 Liabilities Options 2,920 Option pricing models Volatility 35% to 40% 35% Contingent consideration liability 30,896 Discounted cash flows Monte Carlo simulation Discount rate Volatility 15% - 22% 17% 15% 17% Other level 3 liabilities (a) 2,950 Total level 3 liabilities $ 36,766 (a) The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions. The Company has established valuation policies, procedures and internal control infrastructure over the fair value measurement of financial instruments. In the event that observable inputs are not available, the control processes are designed to ensure that the valuation approach utilized is applicable, reasonable and consistently applied. Where a pricing model is used to determine fair value, these control processes include reviews of the methodology and inputs for both reasonableness and applicability. Consistent with best practices, recently executed comparable transactions and other observable market data are used for the purposes of validating both the model and the assumptions used to calculate fair value. Independent of trading and valuation functions, the Company’s Valuation Committee in conjunction with its Price Verification team, plays an important role in determining that financial instruments are appropriately valued and that fair value measurements are both reasonable and reliable. This is particularly important where prices or valuations that require inputs are less observable. The Valuation Committee is comprised of senior management, including non-investment professionals, who are responsible for overseeing and monitoring the pricing of the Company's investments. The US GAAP fair value leveling hierarchy is designated and monitored on an ongoing basis. In determining the designation, the Company takes into consideration a number of factors including the observability of inputs, liquidity of the investment and the significance of a particular input to the fair value measurement. Designations, models, pricing vendors, third party valuation providers and inputs used to derive fair market value are subject to review by the valuation committee and the internal audit group. The Company reviews its valuation policy guidelines on an ongoing basis and may adjust them in light of improved valuation metrics and models, the availability of reliable inputs and information, and prevailing market conditions. The Company regularly reviews a profit and loss report, as well as other periodic reports, and analyzes material changes from period to period in the valuation of its investments as part of its control procedures. The Company also performs back testing on a regular basis by comparing prices observed in executed transactions to previous valuations. The fair market value for level 3 securities may be highly sensitive to the use of industry-standard models, unobservable inputs and subjective assumptions. The degree of fair market value sensitivity is also contingent upon the subjective weight given to specific inputs and valuation metrics. The Company holds various equity and debt instruments where different weight may be applied to industry-standard models representing standard valuation metrics such as: discounted cash flows, market multiples, comparative transactions, capital rates, recovery rates and timing, and bid levels. Generally, changes in the weights ascribed to the various valuation metrics and the significant unobservable inputs in isolation may result in significantly lower or higher fair value measurements. Volatility levels for warrants and options are not readily observable and subject to interpretation. Changes in capital rates, discount rates and replacement costs could significantly increase or decrease the valuation of the real estate investments. The interrelationship between unobservable inputs may vary significantly amongst level 3 securities as they are generally highly idiosyncratic. Significant increases (decreases) in any of those inputs in isolation can result in a significantly lower (higher) fair value measurement. Other financial assets and liabilities The following table presents the carrying values and fair values, at December 31, 2020 and 2019, 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 2g). December 31, 2020 December 31, 2019 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) Financial Assets Operating companies Cash and cash equivalents $ 645,169 $ 645,169 $ 301,123 $ 301,123 Level 1 Cash collateral pledged 110,743 110,743 6,563 6,563 Level 2 Segregated cash 185,141 185,141 107,328 107,328 Level 1 Securities purchased under agreements to resell 191 204 — — Level 2 Securities borrowed 1,908,187 1,908,187 754,441 754,441 Level 2 Loans receivable 7,682 7,682 (d) 42,830 42,830 (d) Level 3 Consolidated Funds Cash and cash equivalents 417 417 30,874 30,874 Level 1 Financial Liabilities Securities sold under agreements to repurchase 5,036 5,544 23,244 27,384 Level 2 Securities loaned 2,476,414 2,476,414 1,601,866 1,601,866 Level 2 Convertible debt 80,808 (a) 135,444 (b) 118,688 (a) 148,786 (b) Level 2 Notes payable and other debt 383,067 (e) 405,840 (c) 345,451 (e) 372,591 (c) Level 2 (a) The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. (b) The convertible debt includes the conversion option and is based on the last broker quote available. (c) Notes payable and other debt are based on the last broker quote available. (d) The fair market value of level 3 loans is calculated using discounted cash flows where applicable. |
Deposits with Clearing Organiza
Deposits with Clearing Organizations, Brokers and Banks | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, the Company had a total of $105.0 million and $91.8 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 t
Receivables from and payables to brokers, dealers and clearing organizations | 12 Months Ended |
Dec. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Receivables From and Payables to Brokers, Dealers and Clearing Organizations | Receivable From and Payable To Brokers, Dealers and Clearing OrganizationsReceivable 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, 2020 and 2019, amounts receivable from brokers, dealers and clearing organizations include: As of December 31, 2020 2019 (dollars in thousands) Broker-dealers $ 1,608,273 $ 623,523 Securities failed to deliver 55,655 45,673 Clearing organizations 41,795 3,180 Securities borrowed/loaned interest receivable 24,021 9,319 $ 1,729,744 $ 681,695 As of December 31, 2020 and 2019, amounts payable to brokers, dealers and clearing organizations include: As of December 31, 2020 2019 (dollars in thousands) Broker-dealers $ 286,011 $ 185,838 Securities failed to receive 68,036 57,580 Clearing organizations 33,732 18,063 Securities borrowed/loaned interest payable 27,364 9,537 $ 415,143 $ 271,018 |
Receivable from and Payable to
Receivable from and Payable to Customers | 12 Months Ended |
Dec. 31, 2020 | |
Receivables and Payable to Customers [Abstract] | |
Receivable from and Payables to Customers [Text Block] | Receivable From and Payable To CustomersAs of December 31, 2020 and 2019, receivable from customers of $104.0 million and $105.6 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, 2020 and 2019, payable to customers of $1.7 billion and $430.2 million, respectively, include amounts due on cash and margin transactions to the Company's clients, some of which have their assets held by a Company omnibus account, which are included within receivables from brokers, dealers and clearing organizations in the accompanying consolidated statements of financial condition. In the omnibus structure, positions that are owned by Cowen International Ltd are fully cross collateralized by client funds, meaning that the Company, for all intents and purposes, has no market risk. Additionally, Cowen International Ltd has no obligation to settle any trade that it deems inappropriate from a risk perspective, adding an important market and counterparty risk mitigating factor. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2020 | |
Fixed Assets [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Fixed Assets As of December 31, 2020 and 2019, fixed assets consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Telecommunication and computer equipment $ 7,921 $ 7,556 Computer software 11,813 8,952 Furniture and fixtures 3,387 3,526 Leasehold improvements 40,468 40,301 Finance lease right-of-use asset (See Note 22) 6,172 6,172 Airplane and related equipment 3,932 — 73,693 66,507 Less: Accumulated depreciation and amortization (40,670) (32,846) $ 33,023 $ 33,661 Depreciation and amortization expense related to fixed assets was $9.6 million, $7.3 million and $7.4 million for the years ended December 31, 2020, 2019, and 2018, respectively, and are included in depreciation and amortization expense in the accompanying consolidated statements of operations. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangibles [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill and Intangible Assets Goodwill In accordance with US GAAP, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Under US GAAP, the Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amounts as a basis for determining if it is necessary to perform a quantitative impairment test. Periodically estimating the fair value of a reporting unit requires significant judgment and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Change in segments During the second quarter of 2019, the Company realigned its business segments to Op Co and Asset Co (See Note 1). Prior to the reorganization, the Investment Management segment was also a reporting unit for purposes of measuring and reporting goodwill. The goodwill that was previously attributable to the Investment Management reporting unit was reallocated to the CIM reporting unit within the Op Co segment and the Asset Co reporting unit based on the relative fair value of the respective portions that became attributable to those reporting units. The Asset Co segment is also a reporting unit for purposes of measuring and reporting goodwill. Based on the change in segments and restructuring of reporting units, the Company determined that it was necessary to perform a quantitative impairment test which involved estimates of future cash flows, discount rates, economic forecast and other assumptions which are then used in the market approach (earnings and / or transactions multiples) and / or income approach (discounted cash flow method). Based on the results of the impairment analysis, the Company recognized a goodwill impairment, during the second quarter of 2019, in the amount of $4.1 million within the Asset Co reporting unit. Annual impairment test The Company performed its annual impairment test at December 31, 2020 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 December 31, 2020, the Company did not recognize a goodwill impairment relating to any of the Company's reporting units. Additionally, no impairment charge for goodwill was recognized during the year ended December 31, 2018. The following table presents the changes in the Company's goodwill balance, by reporting unit for the periods ended December 31, 2020 and 2019: Investment Investment Bank Cowen Investment Management Asset Co Total (dollars in thousands) Beginning balance - December 31, 2018 Goodwill $ 29,026 $ 51,337 $ — $ — 80,363 Accumulated impairment charges (10,200) (9,485) — — (19,685) Net 18,826 41,852 — — 60,678 Activity: 2019 Recognized goodwill (See note 3) — 81,150 — — 81,150 Realignment of segment goodwill: Goodwill (29,026) — 22,705 6,321 — Accumulated impairment charges 10,200 — (7,979) (2,221) — Goodwill impairment charges — — — (4,100) (4,100) Beginning balance: December 31, 2019 Goodwill — 132,487 22,705 6,321 161,513 Accumulated impairment charges — (9,485) (7,979) (6,321) (23,785) Net — 123,002 14,726 — 137,728 Activity: 2020 Recognized goodwill (See note 3) — 9,356 — — 9,356 Goodwill impairment charges — — — — — Ending balance: December 31, 2020 Goodwill — 141,843 22,705 6,321 170,869 Accumulated impairment charges — (9,485) (7,979) (6,321) (23,785) Net $ — $ 132,358 $ 14,726 $ — $ 147,084 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, 2020 totaled $0.1 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). In connection with the Quarton transaction (see Note 3), in January 2019, the Company recognized goodwill of $81.2 million and intangible assets (including customer relationships, trade name, backlog and proprietary software) with an estimated fair value of $22.2 million which are included within intangible assets in the consolidated statements of financial condition with the expected useful lives ranging from 2 to 4 years with a weighted average useful life of 2.8 years. Amortization expense related to intangibles from the Quarton acquisition for the years ended December 31, 2020 and 2019 is $8.9 million, respectively. Goodwill, the excess of the purchase price over the fair value of net assets, primarily relates to expected synergies from combining operations and has been assigned to the Op Co segment of the Company. Tax deductible goodwill will differ from goodwill recognized by the Company in an amount equal to the difference between actual contingent consideration and estimated contingent consideration (see Note 3). Intangible assets Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 Amortization Gross Accumulated Net Gross Accumulated Net (in years) (in thousands) (in thousands) Trade names 3 $ 1,031 $ (611) $ 420 $ 960 $ (360) $ 600 Customer relationships 2 - 14 52,040 (32,154) 19,886 51,724 (21,065) 30,659 Non-compete agreements and covenants with limiting conditions acquired 5 344 (17) 327 400 (347) 53 Intellectual property 8 2,972 (328) 2,644 1,188 (119) 1,069 Acquired software 3 - 10 5,900 (4,774) 1,126 7,323 (4,504) 2,819 $ 62,287 $ (37,884) $ 24,403 $ 61,595 $ (26,395) $ 35,200 The Company tests intangible assets for impairment if events or circumstances suggest that the asset groups carrying value may not be fully recoverable. 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. The remaining impairment charges related to the impairment of intangible assets related to legacy capitalized software from the 2017 Convergex acquisition. These impairment charges are recorded in Other Expenses in the accompanying consolidated statements of operations. For the year ended December 31, 2019, no impairment charge for intangible assets was recognized. Amortization expense related to intangible assets was $13.0 million, $13.1 million, and $5.0 million for the years ended December 31, 2020, 2019, and 2018, 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, 2020 is as follows: (dollars in thousands) 2021 $ 6,828 2022 5,439 2023 3,432 2024 3,172 2025 2,148 Thereafter 3,384 $ 24,403 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets Disclosure [Text Block] | Other Assets Other assets in Operating Entities are as follows: As of December 31, 2020 2019 (dollars in thousands) Prepaid expenses $ 14,468 $ 9,957 Reinsurance business receivables (b) 15,387 14,688 Tax receivables 2,280 8,464 Interest and dividends receivable 1,688 1,944 Deferred acquisition costs (b) 5,221 4,808 The Military Mutual loan (a) — 27,459 Other (c) 15,840 16,838 $ 54,884 $ 84,158 (a) In September 2020, the loan, related to the Company's' commercial reinsurance activities, was sold. As of December 31, 2019, the maturity date was December 2029 and interest rate of 3%. (b) Balances relate to the Company's reinsurance business (See Note 18). (c) As of December 31, 2020 and 2019, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.2 million and $7.5 million, respectively. |
Commission Management Payable
Commission Management Payable | 12 Months Ended |
Dec. 31, 2020 | |
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 $117.0 million and $71.6 million, as of December 31, 2020 and 2019, respectively, are classified as commission management payable in the accompanying consolidated statements of financial condition. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure | Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows: As of December 31, 2020 2019 (dollars in thousands) Contingent consideration payable (see Note 3) 37,953 30,896 Interest and dividends payable 17,031 5,828 Loss reserves and claims incurred but not reported (a) 37,036 30,282 Professional fees payable 9,495 4,789 Unearned premiums (a) 14,732 16,092 Fees payable 4,459 4,628 Accrued tax liabilities 17,204 2,778 SEC fees payable 9,987 3,957 Software contracts payable 1,852 2,884 Performance fees payable 4,427 3,708 Accrued expenses and accounts payable (b) 42,303 35,714 $ 196,479 $ 141,556 (a) Balances relate to the Company's reinsurance business (See Note 18). (b) As of December 31, 2020 and 2019, the balance includes reinsurance premiums payable of $15.5 million and $13.2 million, respectively. |
Non-Controlling Interests in Co
Non-Controlling Interests in Consolidated Subsidiaries and Funds | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds | Non-Controlling Interests in Consolidated Subsidiaries and Investment Funds Redeemable and nonredeemable non-controlling interests in consolidated subsidiaries and investment funds and the related net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds are comprised as follows: As of December 31, 2020 2019 (dollars in thousands) Redeemable non-controlling interests in consolidated subsidiaries and investment funds Consolidated Funds $ — $ 391,275 Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds Operating companies 83,818 11,513 Consolidated Funds 115,806 82,807 $ 199,624 $ 485,595 Year Ended December 31, 2020 2019 2018 (dollars in thousands) Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds Operating companies $ 19,584 $ (3,264) $ 3,177 Consolidated Funds (28,883) 34,503 33,883 $ (9,299) $ 31,239 $ 37,060 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers For the years ended December 31, 2020, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment. Year Ended December 31, 2020 2019 2018 (dollars in thousands) Revenue from contracts with customers Operating Company Investment banking Underwriting fees $ 427,670 $ 211,666 $ 215,723 Strategic/financial advisory fees 190,958 79,208 81,733 Placement and sales agent fees 133,171 69,070 46,888 Expense reimbursements from clients 17,687 15,081 12,878 Total investment banking revenue 769,486 375,025 357,222 Brokerage Commissions 485,398 356,668 366,090 Trade conversion revenue 15,753 12,531 17,061 Equity research fees 19,757 19,006 20,184 Total brokerage revenue from customers 520,908 388,205 403,335 Management fees 46,556 31,361 26,080 Incentive income 592 1,532 3,117 Total revenue from contracts with customers - Op Co $ 1,337,542 $ 796,123 $ 789,754 Asset Company Management fees 959 1,248 3,578 Incentive income — 15 — Total revenue from contracts with customers - Asset Co 959 1,263 3,578 Total revenue from contracts with customers $ 1,338,501 $ 797,386 $ 793,332 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance [Abstract] | |
Reinsurance | Reinsurance The Company's wholly owned Luxembourg subsidiary, Hollenfels Re SA ("Hollenfels") provides reinsurance to third party insurance and reinsurance companies. Hollenfels' share of claims incurred and paid during the periods below, as well as the change in claims outstanding and claims incurred but not reported ("IBNR") during these periods, net of reinsurance, were as follows: Year Ended December 31, 2020 2019 2018 (dollars in thousands) Incurred and paid claims $ 15,004 $ 24,380 $ 14,800 Change in claims outstanding and claims IBNR $ 34,173 $ 5,647 $ 11,800 Hollenfels utilizes several methods to determine its claims IBNR. It generally employs an estimation methodology whereby historical average claims ratios over a period of up to 10 years are utilized, based on availability of data. In cases where current claims development contradicts historical results, Hollenfels employs a method to average claims ratios derived through different actuarial calculation methods. Also, if an event occurs that may give rise to significant future claims in excess of the amount calculated using the above-mentioned methodologies, the impact of such an event is calculated using existing claims data and actuarial estimation methods to adjust Hollenfels' claims IBNR. During the years ended December 31, 2020, Hollenfels calculated its claim liability or claim adjustment expenses using the above-mentioned methods consistent with prior years. While Hollenfels typically settles its premiums and claim payments on a quarterly basis, the frequency of claims in the underlying policies is impractical for Hollenfels to obtain. Certain contracts Hollenfels has written are on a quota-share basis while the rest of the policies provide aggregate loss protection, rendering the collection of information for all underlying contracts impracticable. Hollenfels did not discount any of its reserves and did not cede any portion of its exposures during the years ended December 31, 2020, 2019, and 2018. From time to time, Hollenfels may enter into reinsurance agreements that require it to post collateral of cash or U.S. government bonds to cover certain exposures as defined in the respective reinsurance agreements. As of December 31, 2020, Hollenfels pledged $120.5 million of collateral towards such reinsurance obligations, of which $106.8 million was cash and $13.7 million was U.S. government bonds. As of December 31, 2019, total collateral pledged was $15.0 million, of which $2.0 million was cash and $13.0 million was U.S. government bonds. Hollenfels expects $101.2 million and none of the cash collateral pledged as of December 31, 2020 and December 31, 2019, respectively, to be released on September 30, 2023. The remaining cash collateral of $5.5 million and all of the U.S. government bonds pledged as of December 31, 2020 as well as all cash and U.S. government bonds pledged as of December 31, 2019 are expected to be released periodically between June 30, 2021 and March 31, 2024 in accordance with the terms of the underlying reinsurance agreements. |
Share-Based Compensation and Em
Share-Based Compensation and Employee Ownership Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based 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 and Incentive Plan (the "Equity Plans"). The Equity Plans permit the grant of options, restricted shares, restricted stock units, and other equity-based awards to the Company's employees and directors. Stock options granted generally vest over two five seven two five Under the Equity Plans, the Company awarded $50.3 million of deferred cash awards to its employees during the year ended December 31, 2020. These awards vest over a four The Company measures compensation cost for share-based awards according to the equity method. In accordance with the expense recognition provisions of those standards, the Company amortizes unearned compensation associated with share-based awards on a straight-line basis over the vesting period of the option or award, net of estimated forfeitures. In relation to awards under the Equity Plan, the Company recognized compensation expense of $48.1 million, $34.0 million, and $37.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. The income tax effect recognized for the Equity Plans was a benefit of $13.8 million, $8.8 million, and $9.7 million for the years ended December 31, 2020, 2019, and 2018, 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, 2020 and 2019: Year Ended December 31, 2020 Year Ended December 31, 2019 Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units Weighted-Average Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units Weighted-Average Beginning balance outstanding 5,364,486 $ 16.67 5,962,295 $ 15.73 Granted 2,709,979 17.40 2,435,058 16.58 Vested (2,419,818) 15.59 (2,291,032) 15.63 Canceled (87,348) 14.80 (584,333) 11.49 Forfeited (117,108) 15.62 (157,502) 13.98 Ending balance outstanding 5,450,191 $ 17.56 5,364,486 $ 16.67 Included in the restricted share and restricted stock unit activity are performance-linked restricted stock units of 1,366,666 which were awarded in March 2016, April 2019 and July 2020. Of the awards granted, 379,319 have vested and 320,681 have been canceled, as they did not meet the performance criteria, through December 31, 2020. Included in vested shares are 233,333 shares that had an attainable value of 420,000, due to reaching certain performance goals, and are to be delivered in March 2021. The remaining awards, included in the outstanding balance as of December 31, 2020, vest between December 2021 and December 2022 and will be earned only to the extent that the Company attains specified market conditions relating to its volume-weighted average share price and total shareholder return in relation to certain benchmark indices and performance goals relating to aggregate net income and average return on shareholder equity. The actual number of RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the targeted award. Each RSU is equal to the one share of the Company's Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. The fair value of restricted stock (excluding certain performance-linked units which are valued using the Monte Carlo valuation model) is determined based on the number of shares granted and the quoted price of the Company's common stock on the date of grant. As of December 31, 2020, there was $70.8 million of unrecognized compensation expense related to the Company's grant of nonvested restricted shares and restricted stock units to employees. Unrecognized compensation expense related to nonvested restricted shares and restricted stock units granted to employees is expected to be recognized over a weighted-average period of 2.05 years. Restricted Shares and Restricted Stock Units Granted to Non-Employee Board Members There were 90,645 restricted stock units awarded and 48,021 delivered to non-employee board members during the year ended December 31, 2020. As of December 31, 2020, there were 259,536 restricted stock units outstanding for non-employee board members. There were no restricted stock units awarded to non-employee board members during the year ended December 31, 2019, and 120,430 were delivered. As of December 31, 2019, there were 216,912 restricted stock units outstanding. Share Based Payments 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. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019, and 2018, the Company's contributions to the 401(k) Plans were $2.9 million, $1.0 million, and $1.0 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The taxable results of the Company’s U.S. operations are included in the consolidated income tax returns of Cowen Inc. as well as stand-alone state and local tax returns. The Company has subsidiaries that are resident in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These subsidiaries are subject to tax in their respective countries and the Company is responsible for and, thus, reports all taxes incurred by these subsidiaries. The countries where the Company owns subsidiaries with tax filing obligations are the United Kingdom, Luxembourg, Germany, Switzerland, South Africa, Canada and Hong Kong. The Company is subject to the Global Intangible Low Taxed Income ("GILTI") tax in the U.S. 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 in deferred taxes. The components of the Company's income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows: Year ended December 31, 2020 2019 2018 (dollars in thousands) Current tax expense/(benefit) Federal $ 13,840 $ (731) $ (1,883) State and local 5,060 457 (2,148) Foreign 1,355 1,831 785 Total $ 20,255 $ 1,557 $ (3,246) Deferred tax expense/(benefit) Federal $ 53,231 $ 10,242 $ 12,018 State and local 17,337 3,598 6,956 Foreign (450) (544) (9) Total 70,118 13,296 18,965 Total tax expense/(benefit) $ 90,373 $ 14,853 $ 15,719 Consolidated U.S. income/(loss) before income taxes was $289.6 million in 2020, $68.9 million in 2019, and $93.0 million in 2018. The corresponding amounts for non-U.S.-based income/(loss) were $7.9 million in 2020, $2.2 million in 2019, and $6.0 million in 2018. The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2020, 2019, and 2018 are as follows: Year ended December 31, 2020 2019 2018 Pre-tax loss at U.S. statutory rate 21.0 % 21.0 % 21.0 % Basis adjustment on investments — — 3.5 Nondeductible expenses 1.5 4.1 1.2 Goodwill impairment — 1.2 — Change in valuation allowance — (4.0) 7.1 State and foreign tax 7.3 8.0 (10.0) Reversal of income attributable to non-controlling interests 0.7 (9.2) (8.6) Other, net (0.1) (0.1) 1.7 Total 30.4 % 21.0 % 15.9 % As of December 31, 2020, the Company has net income taxes receivable of approximately $1.2 million representing state and foreign tax overpayments, which is included in other assets on the accompanying consolidated statements of financial condition. T he Company also has income taxes payable of approximately $14.1 million representing federal 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, 2020 and 2019 are as follows: As of December 31, 2020 2019 (dollars in thousands) Deferred tax assets, net of valuation allowance Net operating loss $ 18,039 $ 60,160 Deferred compensation 24,068 46,545 Intangible assets 4,513 2,969 Tax credits 6,230 6,716 Lease liability 20,401 24,623 Other 2,858 3,043 Total deferred tax assets 76,109 144,056 Valuation allowance (5,194) (5,234) Deferred tax assets, net of valuation allowance 70,915 138,822 Deferred tax liabilities Right-of-use assets (19,443) (23,028) Unrealized gains on investments (33,439) (26,545) Amortization of bond discount (1,686) (3,980) Other (7,317) (6,103) Total deferred tax liabilities (61,885) (59,656) Deferred tax assets/(liabilities), net $ 9,030 $ 79,166 Deferred tax assets, net of valuation allowance, are reported in the accompanying consolidated statements of financial condition. In addition to the deferred tax balances in the table above, the Company records balances related to its operating losses in Luxembourg, which are discussed below. The Company records deferred tax assets and liabilities for the future tax benefit or expense that will result from differences between the carrying value of its assets for income tax purposes and for financial reporting purposes, as well as for operating or capital loss and tax credit carryovers. A valuation allowance is recorded to bring the net deferred tax assets to a level that, in management’s view, is more likely than not to be realized in the foreseeable future. This level will be estimated based on a number of factors, especially the amount of net deferred tax assets of the Company that are actually expected to be realized, for tax purposes, in the foreseeable future. The Company recorded approximately $5.2 million valuation allowance against its deferred tax assets of $76.1 million as of December 31, 2020 and recorded approximately $5.2 million valuation allowance against its deferred tax assets of $144.1 million as of December 31, 2019. Separately, the Company has deferred tax liabilities of $61.9 million as of December 31, 2020 and $59.7 million as of December 31, 2019. For tax year 2020, the Company's total deferred tax expense of $70.1 million was derived by utilization of net operating losses and the reversal of timing differences in the normal course of business. The deferred tax expense of $13.3 million in 2019 was derived by the reversal of timing differences in the normal course of business. The deferred tax expense of $19.0 million in 2018 was derived by the basis difference from the disposal of assets and the reversal of timing differences in the normal course of business. As of December 31, 2020, the Company has foreign tax credit carryforwards of $6.2 million which expire between 2021 and 2030. Valuation allowance of $4.2 million was established against foreign tax credit carryforward as the Company determined that it is not more likely than not that the credits will be utilized. The Company has the following net operating loss carryforwa rds at December 31, 2020: Jurisdiction: Federal New York State New York City Hong Kong Net operating loss (in millions) $26.0 $33.6 $60.5 $12.4 Year of expiration 2038 2037 2037 Indefinite In addition to the net operating loss carryforwards in the table above, the Company also has net operating loss carryforwards in Luxembourg. These loss carryforwards are only accessible to the extent of taxable income generated by the Luxembourg reinsura nce companies, including any deferred income that will be generated in the future. Consequently, the Company recorded a deferred tax asset of $214.1 million, net of deferred tax liabilities of $110.3 million in connection with future taxable income, and an offsetting valuation allowance of $214.1 million against its Luxembourg net operating loss carryforwards that are in excess of such taxable income. In June 2011, the Company underwent a change of control under Section 382 of the Internal Revenue Code by the acquisition of a subsidiary with net operating loss carryovers. According, a portion of the Company’s deferred tax assets, are subject to an annual limitation under Section 382. The deduction limitation is approximately $6.7 million annually and applies to approximately $23.6 million of net operating losses. The Company is not expected to lose any deferred tax assets as a result of these limitations. As a result of the enactment of Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) signed on March 27, 2020, and the enactment of Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (“CRRSAA”) signed on December 27, 2020, the Company is required to assess the tax impact of the CARES Act and CRRSAA in the quarter each such law was enacted. Based on the management analysis, there was no material impact on the Company's financial statements as of December 31, 2020. The components of unrecog nized tax benefits are as follows: As of December 31, 2020 2019 (dollars in thousands) Beginning balance at January 1 $ 299 $ 299 Increases/(Decreases) due to current year positions — — Ending balance at December 31 $ 299 $ 299 No unrecognized tax benefit was recognized in the consolidated statement of operations for the year ended December 31, 2020. No income tax-related interest and penalties are recognized in the consolidated statement of financial condition at December 31, 2020. The following are the major tax jurisdictions in which the Company has significant business operations and the earliest tax year subject to examination: Jurisdiction: Federal New York State New York City United Kingdom Luxembourg Germany Switzerland Tax Year 2017 2013 2017 2016 2015 2016 2015 Currently, the Company is under audit by New York State for the 2013 to 2017 tax years. Management is not expecting a material tax liability from these audits. In December, the Company concluded the State of Massachusetts audit with no financial statement impact. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Obligations The Company has entered into leases for real estate and other facilities. These leases contain rent escalation clauses and options to extend the lease term. The Company does not include renewal options in the lease term for calculating the Company's lease liability as the renewal options allow the Company operational flexibility and the Company is not reasonably certain to exercise these renewal options at this time. The Company records the expenses related to occupancy and equipment on a straight-line basis over the lease term and these expenses are included in occupancy and equipment expense and client services and business development expense in the accompanying consolidated statements of operations. For the years ended December 31, 2020 and 2019, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statements of operations were as follows: Year Ended December 31, 2020 2019 (dollars in thousands) Lease cost Operating lease cost $ 22,759 $ 23,540 Short-term lease cost 207 253 Variable lease cost 3,550 3,580 Sublease income (781) (953) Total lease costs $ 25,735 $ 26,420 The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 (dollars in thousands) Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25,012 $ 24,743 Weighted average remaining lease term - operating leases (in years) 4.58 5.34 Weighted average discount rate - operating leases 3.66 % 4.13 % As of December 31, 2020, maturities of the outstanding operating lease liabilities for the Company were as follows: Equipment Leases (operating) Real Estate and Other Facility Rental (a) (b) (dollars in thousands) 2021 $ 283 $ 24,520 2022 150 21,805 2023 11 18,287 2024 — 15,017 2025 — 4,553 Thereafter — 5,963 Total operating leases 444 90,145 Less discount 29 7,781 Less short-term leases — 44 Total lease liability $ 415 $ 82,320 (a) The Company has entered into various agreements to sublease certain of its premises. (b) During the year ended December 31, 2020, the Company recognized an increase of $1.6 million of operating right-of-use assets and leases liabilities related to for facility leases. See Note 23 for further information on the finance lease minimum payments. Other Commitments As of December 31, 2020, future minimum annual service payments for the Company were as follows: Service Payments (dollars in thousands) 2021 $ 24,610 2022 15,224 2023 7,943 2024 5,190 2025 3,366 Thereafter 10,594 Total service payment commitments $ 66,927 Unfunded Commitments The following table summarizes unfunded commitments as of December 31, 2020: Entity Unfunded Commitments Commitment Term (dollars in thousands) HealthCare Royalty Partners funds (a) $ 7,571 4 years Eclipse Ventures Fund I, L.P. $ 59 4 years Eclipse Fund II, L.P. $ 100 5 years Eclipse Continuity Fund I, L.P. $ 58 6 years Cowen Healthcare Investments II LP $ 1,202 1 year Cowen Healthcare Investments III LP $ 5,094 6 years Cowen Sustainable Investments I LP $ 10,639 9 years (a) The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners. Litigation In the ordinary course of business, the Company and its affiliates, subsidiaries and current and former officers, directors and employees (the "Company and Related Parties") are named as defendants in, or as parties to, various legal actions and proceedings. Certain of these actions and proceedings assert claims or seek relief in connection with alleged violations of securities, banking, anti-fraud, anti-money laundering, employment and other statutory and common laws. Certain of these actual or threatened legal actions and proceedings include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief. In the ordinary course of business, the Company and Related Parties are also subject to governmental and regulatory examinations, information gathering requests (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Certain of the Company's affiliates and subsidiaries are registered broker-dealers, futures commission merchants, investment advisers or other regulated entities and, in those capacities, are subject to regulation by various U.S., state and foreign securities, commodity futures and other regulators. In connection with formal and informal inquiries by these regulators, the Company receives requests and orders seeking documents and other information in connection with various aspects of the Company's regulated activities. Due to the global scope of the Company's operations, and its presence in countries around the world, the Company and Related Parties may be subject to litigation, governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), in multiple jurisdictions with legal and regulatory regimes that may differ substantially, and present substantially different risks, from those to which the Company and Related Parties are subject in the United States. The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. In accordance with US GAAP, the Company establishes reserves for contingencies when the Company believes that it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. The Company discloses a contingency if there is at least a reasonable possibility that a loss may have been incurred and there is no reserve for the loss because the conditions above are not met. The Company's disclosure includes an estimate of the reasonably possible loss or range of loss for those matters, for which an estimate can be made. Neither a reserve nor disclosure is required for losses that are deemed remote . |
Convertible Debt and Notes Paya
Convertible Debt and Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Debt and Notes Payable | Convertible Debt and Notes Payable As of December 31, 2020 and 2019, the Company's outstanding debt was as follows: As of December 31, 2020 2019 (dollars in thousands) Convertible debt $ 80,808 $ 118,688 Notes payable 307,653 306,818 Term loans — 32,180 Other notes payable 72,505 2,516 Finance lease obligations 2,909 3,937 $ 463,875 $ 464,139 Convertible Debt December 2022 Convertible Notes The Company, on December 14, 2017, issued $135.0 million aggregate principal amount of 3.00% convertible senior notes due December 2022 (the “December 2022 Convertible Notes”). The December 2022 Convertible Notes are due on December 15, 2022 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such date. The interest on the December 2022 Convertible Notes is payable semi-annually on December 15 and June 15 of each year. The December 2022 Convertible Notes are senior unsecured obligations of Cowen. The December 2022 Convertible Notes may be converted into cash or shares of Class A common stock at the Company's election based on the current conversion price (which at December 31, 2020 was 58.198). The December 2022 Convertible Notes were issued with an initial conversion price of $17.375 per share of Cowen's Class A common stock. 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. 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 has the intent and ability to settle the convertible notes in cash and, as a result, the convertible notes do not have an impact on the Company's diluted earnings per share calculation (See Note 26). The Company recognized the embedded cash conversion option at issuance date fair value, which also represents the initial unamortized discount on the December 2022 Convertible Notes of $23.4 million and is shown net in convertible debt in the accompanying consolidated statements of financial condition. Amortization on the discount, included within interest and dividends expense in the accompanying consolidated statements of operations is $4.6 million, $4.3 million and $4.0 million for the years ended December 31, 2020, 2019, and 2018, respectively, based on an effective interest rate of 7.13%. The Company capitalized the debt issuance costs in the amount of $2.2 million, which is a direct deduction from the carrying value of the debt and will be amortized over the life of the December 2022 Convertible Notes in interest and dividends expense in the accompanying consolidated statements of operations. The Company recorded interest expense of $4.0 million, $4.1 million and $4.1 million for the years ended December 31, 2020, 2019, and 2018, respectively. 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. As of December 31, 2020, the outstanding principal amount of the December 2022 Convertible Notes was $88.1 million. Notes Payable May 2024 Notes On May 7, 2019, the Company completed its private placement of $53.0 million aggregate principal amount of 7.25% senior notes due May 2024 (the "May 2024 Notes") with certain institutional investors. On September 30, 2019, the Company issued an additional $25.0 million of the same series of notes. The additional May 2024 Notes were purchased at a premium of $0.5 million, which is shown net in notes payable in the accompanying consolidated statement of financial condition. To date the May 2024 Notes have maintained their initial private rating, and the interest rate has remained unchanged. Interest on the May 2024 Notes is payable semi-annually in arrears on May 6 and November 6. The Company recorded interest expense of $5.7 million and $2.9 million for the years ended December 31, 2020 and 2019, respectively. The Company capitalized debt issuance costs of approximately $1.5 million in May 2019 and $0.6 million in December 2019, which is a direct deduction from the carrying value of the debt and will be amortized over the life of the May 2024 Notes in interest and dividends expense in the accompanying consolidated statements of operations. June 2033 Notes On June 11, 2018, the Company completed its public offering of $90.0 million of 7.75% senior notes due June 2033 (the "June 2033 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $10.0 million principal amount of the June 2033 Notes. Interest on the June 2033 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $7.7 million, $7.7 million and $4.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. The Company capitalized debt issuance costs of approximately $3.6 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the June 2033 Notes in interest and dividends expense in the accompanying consolidated statements of operations. December 2027 Notes On December 8, 2017, the Company completed its public offering of $120.0 million of 7.35% senior notes due December 2027 (the "December 2027 Notes") and subsequently the underwriters exercised in full their option to purchase an additional $18.0 million principal amount of the December 2027 Notes. Interest on the December 2027 Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15. The Company recorded interest expense of $10.1 million, $10.1 million and $10.1 million for the years ended December 31, 2020, 2019, and 2018, respectively. The Company capitalized debt issuance costs of approximately $5.0 million which is a direct deduction from the carrying value of the debt and will be amortized over the life of the December 2027 Notes in interest and dividends expense in the accompanying consolidated statements of operations. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses payable by the Company were used to redeem all of its 8.25% senior notes due October 2021 and for general corporate purposes. Term Loans On June 30, 2017, a subsidiary of the Company borrowed $28.2 million to fund general corporate purposes. In July 2019, the subsidiary of the Company borrowed separately, from the same lender, $4.0 million to fund general corporate purposes. Each loan was secured by the value of the Company's limited partnership interests in two affiliated investment funds. The Company had provided a guarantee for these loans. Both loans had an effective interest rate of London Inter-bank Offered Rate ("LIBOR") plus 3.75% with a lump sum payment of the entire combined principal amount due (as amended) on June 26, 2020 when they were both fully repaid. The Company recorded interest expense of $0.8 million, $1.8 million and $1.6 million for the years ended December 31, 2020, 2019, and 2018, respectively. Other Notes Payable During January 2020, the Company borrowed $2.9 million to fund insurance premium payments. This note had an effective interest rate of 2.01% and was due in December 2020, with monthly payment requirements of $0.3 million. As of December 31, 2020, the note was fully repaid. Interest expense for the year ended December 31, 2020 was insignificant. 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, 2020, the outstanding balance on this note was $2.1 million. Interest expense for the years ended December 31, 2020 was $0.1 million and for year ended December 31, 2019 was insignificant. On September 30, 2020, the Company borrowed $72.0 million from Purple Protected Asset S-91 ("PPA S-91"), a Luxembourg entity unrelated to Cowen. 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% thereafter with quarterly interest payments. The loan obligation, as well as a loan issued by The Military Mutual Ltd (a United Kingdom company unrelated to Cowen) with principal of $28.4 million that was sold by Hollenfels to PPA S-91 at fair value for no gain or loss on September 30, 2020, are fully cash collateralized through a reinsurance policy provided by Hollenfels which is reflected in cash collateral pledged in the consolidated statements of financial condition as of December 31, 2020 (see Notes 4 and 18). The Company capitalized debt issuance costs of approximately $1.7 million which is a direct deduction from the carrying value of the loan and will be amortized over the life of the loan in interest and dividends expense shown in the accompanying consolidated statements of operations. The Company recorded interest expense of $1.2 million for the year ended December 31, 2020 related to its loan payable to PPA S-91. Spike Line Pursuant to an amendment in May 2020, Cowen and Company replaced Cowen Execution as the borrower and accepted, reaffirmed and assumed all of Cowen Execution’s rights, duties, obligations and liabilities under the spike line facility and the related loan documents. In August 2020, Cowen and Company renewed a one-year committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements. The spike line facility has a capacity of $70 million. This facility has (i) an effective interest rate equal to the Federal Funds rate plus 2.50% on any money drawn from the liquidity facility and (ii) a commitment or unused line fee that is 50 basis points on the undrawn amount. All amounts outstanding under this facility were fully repaid during the second quarter of 2020. Interest expense for the year ended December 31, 2020 was $0.4 million. Revolving Credit Facility In December 2019, the Company entered into a two-year committed corporate credit facility with a capacity of $25.0 million. This credit facility has (i) an effective interest rate equal to LIBOR plus 3.25% on any money drawn from the credit facility and (ii) a commitment or unused line fee that is 50 basis points on the undrawn amount. All amounts outstanding under this credit facility were fully repaid during the second quarter of 2020. Interest expense for the year ended December 31, 2020 was $0.3 million. 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, 2020 and 2019, 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: Year Ended December 31, 2020 2019 (dollars in thousands) Lease cost Finance lease cost: Amortization of finance lease right-of-use assets $ 1,232 $ 1,266 Interest on lease liabilities $ 171 $ 227 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 171 $ 227 Financing cash flows from finance leases $ 1,033 $ 1,266 Weighted average remaining lease term - operating leases (in years) 2.24 3.21 Weighted average discount rate - operating leases 4.89 % 4.88 % Annual scheduled maturities of debt and minimum payments (of principal and interest) for all debt outstanding as of December 31, 2020, are as follows: Convertible Debt Notes Payable Other Notes Payable Finance Lease (dollars in thousands) 2021 $ 2,644 $ 23,548 $ 4,858 $ 1,483 2022 90,763 23,548 593 1,167 2023 — 23,548 72,593 411 2024 — 98,721 543 11 2025 — 17,893 — — Thereafter — 316,411 — — Subtotal 93,407 503,669 78,587 3,072 Less (a) (12,599) (196,016) (6,082) (163) Total $ 80,808 $ 307,653 $ 72,505 $ 2,909 (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, 2020, the Company has six irrevocable letters of credit, related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. The Company also has pledged cash collateral for reinsurance agreements (See Note 4). To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate. As of December 31, 2020 and 2019, there were no amounts due related to these letters of credit. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholder's Equity The Company is authorized to issue 125,000,000 shares of common stock, which shall consist of 62,500,000 shares of Class A common stock, par value $0.01 per share, and 62,500,000 shares of Class B common stock, par value $0.01 per share. The Company is also authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of common stock or preferred stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding. Common stock The certificate of incorporation of the Company provides for two classes of common stock, and for the conversion of each class into the other, to provide a mechanism by which holders of Class A common stock of the Company who may be limited in the amount of voting common stock of the Company they can hold pursuant to federal, state or foreign bank laws, to convert their shares into non-voting Class B common stock to prevent being in violation of such laws. Each holder of Class A common stock is entitled to one vote per share in connection with the election of directors and on all other matters submitted to a stockholder vote, provided, however, that, except as otherwise required by law, holders of Class A common stock are not entitled to vote on any amendment to the Company's amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of the Company's preferred stock, if holders of the preferred stock series are entitled to vote on the amendment under the Company's certificate of incorporation or Delaware law. No holder of Class A common stock may accumulate votes in voting for directors of the Company. Each holder of Class B common stock is not entitled to vote except as otherwise provided by law, provided however that the Company must obtain the consent of a majority of the holders of Class B common stock to effect any amendment, alteration or repeal of any provision of the Company's amended and restated certificate of incorporation or amended and restated by-laws that would adversely affect the voting powers, preferences or rights of holders of Class B common stock. Except as otherwise provided by law, Class B common stock shares will not be counted as shares held by stockholders for purposes of determining whether a vote or consent has been approved or given by the requisite percentage of shares. Each share of Class A common stock is convertible at the option of the holder and at no cost into one share of Class B common stock, and each share of Class B common stock is convertible at the option of the holder and at no cost into one share of Class A common stock. The conversion ratios will be adjusted proportionally to reflect any stock split, stock dividend, merger, reorganization, recapitalization or other change in the Class A common stock and Class B common stock. Upon conversion, converted shares resume the status of authorized and unissued shares. Subject to the preferences of the holders of any of the Company's preferred stock that may be outstanding from time to time, each share of Class A common stock and Class B common stock will have an equal and ratable right to receive dividends and other distributions in cash, property or shares of stock as may be declared by the Company's board of directors out of assets or funds legally available for the payment of dividends and other distributions. In the event of the liquidation, dissolution or winding up of the Company, subject to the preferences of the holders of any preferred stock of the Company that may be outstanding from time to time, holders of Class A common stock and Class B common stock will be entitled to share equally and ratably in the assets available for distribution to the Company's stockholders. There are no redemption or sinking fund provisions applicable to the Class A or the Class B common stock. Preferred Stock The Company's amended and restated certificate of incorporation permits the Company to issue up to 10,000,000 shares of preferred stock in one or more series with such designations, titles, voting powers, preferences and rights and such qualifications, limitations and restrictions as may be fixed by the board of directors of the Company without any further action by the Company's stockholders. The Company's board of directors may increase or decrease the number of shares of any series of preferred stock following the issuance of that series of preferred stock, but in no instance can the number of shares of a series of preferred stock be reduced below the number of shares of the series then outstanding. Preferred Stock and Purchase of Capped Call Option On May 19, 2015, the Company completed its offering of 120,750 shares of the Company's 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock") that provided $117.2 million of proceeds, net of underwriting fees and issuance costs of $3.6 million. Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum, which will be payable, when and if declared by the board of directors of the Company, quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Company may, at its option, pay dividends in cash, common stock or a combination thereof. The Company declared and accrued a cash dividend in respect of the Series A Convertible Preferred Stock of $6.8 million, for the years ended December 31, 2020, 2019, and 2018, respectively. Each share of Series A Convertible Preferred Stock is non-voting and has a liquidity preference over the Company's Class A common stock and ranks senior to all classes or series of the Company's Class A common stock, but junior to all of the Company's existing and future indebtedness with respect to dividend rights and rights upon the Company's involuntary liquidation, dissolution or winding down. Each share of Series A Convertible Preferred Stock is convertible, at the option of the holder, into a number of shares of the Company's Class A common stock equal to the liquidation preference of $1,000 divided by the conversion rate. The initial conversion rate (subsequent to the December 5, 2016 reverse stock split) is 38.0619 shares (which equates to $26.27 per share) of the Company's Class A common stock for each share of the Series A Convertible Preferred Stock. At any time on or after May 20, 2020, when the Company's capped call option expired, the Company may elect to convert all outstanding shares of the Series A Convertible Preferred Stock into shares of the Company's Class A common stock, cash or a combination thereof, at the Company's election, in each case, based on the then-applicable conversion rate (which at December 31, 2020 was 38.488), 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. The Company has the intent and ability to settle the preferred shares in cash and, as a result, the preferred shares do not have an impact on the Company's diluted earnings per share calculation (See Note 26). Embedded Cash Conversion Option on the December 2022 Convertible Notes Upon issuance of the December 2022 Convertible Notes (see Note 23), the Company recognized the embedded cash conversion option at fair value of $23.4 million which was valued as of June 26, 2018 at $29.0 million. On June 26, 2018, the Company received shareholder approval for the Company to settle the December 2022 Convertible Notes entirely in Class A common stock. Upon receiving shareholder approval, the Company reclassified the separately recognized conversion option from a derivative liability to equity. The Company allocated $29.6 million of the cash consideration paid on the December 2020 partial extinguishment of the Convertible Notes (see Note 23) to this equity component. Cash Dividends to Common Stockholders During the first quarter of 2020, the Company began the declaration of a quarterly cash dividend payable on its common stock. During March, June and July 2020, the Company's Board of Directors declared a cash dividend of $0.04 per share of Class A common stock. Dividends are payable on all outstanding shares of Class A common stock and on granted but unvested shares of Class A common stock under the Equity Plans on the date of record (See Note 19). During the year ended December 31, 2020, the Company paid $5.7 million of cash dividends to its holders of Class A common stock. Treasury Stock Treasury stock of $346.9 million as of December 31, 2020, compared to $284.3 million as of December 31, 2019, resulted from $15.1 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, $0.11 million received from an escrow account established to satisfy the Company's indemnification claims arising under the terms of the purchase agreement entered into in connection with the Company's acquisition of Convergex Group, LLC and $47.3 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, 2020: Treasury Stock Shares Cost Average Cost per Share Balance outstanding at December 31, 2019 18,605,581 $ 284,301 $ 15.28 Shares purchased for minimum tax withholding under the 2010 Equity Plan or other similar transactions 866,784 15,147 17.48 Shares of stock received in respect of indemnification claims 7,747 108 13.96 Purchase of treasury stock 3,139,751 47,314 15.07 Balance outstanding at December 31, 2020 22,619,863 $ 346,870 $ 15.33 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income includes the after tax change in unrealized gains and losses on foreign currency translation adjustments. During the periods presented, the Company did not have material reclassifications out of other comprehensive income. Year Ended December 31, 2020 2019 2018 (dollars in thousands) Beginning balance $ (5) $ (5) $ (8) Foreign currency translation (2) — 3 Ending balance $ (7) $ (5) $ (5) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, there were 26,845,628 shares of Class A common stock outstanding. As of December 31, 2020, the Company has included 334,230 fully vested, unissued restricted stock units and restricted shares in its calculation of basic earnings per share. As of December 31, 2019, there were 28,610,357 shares of Class A common stock outstanding. As of December 31, 2019, the Company has included 216,912 fully vested, unissued restricted stock units in its calculation of basic earnings per share. 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, and options and warrants are assumed to have been exercised, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized. The Company can elect to settle the Series A Convertible Preferred Stock and the December 2022 Convertible Notes in shares, cash, or a combination of both. The Company's intent is to settle in cash and, based on current and projected liquidity needs, the Company has the ability to do so. The computation of earnings per share is as follows: Year Ended December 31, 2020 2019 2018 (dollars and share data in thousands, except per share data) Net income (loss) $ 207,064 55,870 $ 79,879 Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds (9,299) 31,239 37,060 Net income (loss) attributable to Cowen Inc. 216,363 24,631 42,819 Preferred stock dividends 6,792 6,792 6,792 Net income (loss) attributable to Cowen Inc. common stockholders $ 209,571 $ 17,839 $ 36,027 Shares for basic and diluted calculations: Weighted average shares used in basic computation 27,790 29,525 29,545 Contingently issuable common stock in connection with an acquisition (see Note 3) 85 26 — Restricted stock 1,644 1,735 1,190 Weighted average shares used in diluted computation 29,519 31,286 30,735 Earnings (loss) per share: Basic $ 7.54 $ 0.60 $ 1.22 Diluted $ 7.10 $ 0.57 $ 1.17 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
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 a pre-tax measure that (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 (1) goodwill and certain other impairments (2) certain other transaction-related adjustments and/or reorganization expenses and (3) 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: Year Ended December 31, 2020 2019 2018 (dollars in thousands) Economic Income Op Co 329,381 53,257 77,935 Asset Co (16,136) (9,560) (9,034) Adjustments made to arrive at Income (loss) before income taxes Noncontrolling Interest (9,299) 31,239 37,060 Preferred stock dividends 6,792 6,792 6,792 Amortization of (discount)/premium on convertible debt (4,499) (4,297) (4,010) Transaction-related and other costs (9,098) (2,608) (2,778) Goodwill and other impairment (2,423) (4,100) — Unrealized gain (loss) on conversion option (a) — — (7,416) Debt extinguishment gain / loss 2,719 — (556) Exited business cost — — (2,395) Income (loss) before income taxes 297,437 70,723 95,598 (a) Prior to the Company's June 26, 2018 stockholder meeting, the embedded conversion option feature associated with its December 2022 Convertible Notes was recognized at fair value in accordance with US GAAP as a derivative liability. The profit and loss movement related to that liability was associated with the movement of the per share price of the Company's Class A common stock. Subsequent to receiving stockholder approval for share settlement the embedded conversion option was reclassified to equity and will no longer result in profit and loss movements. Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense and (iv) depreciation and amortization expense 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. Year Ended December 31, 2020 2019 2018 (dollars in thousands) OpCo Non-Interest Revenue 1,447,595 874,506 856,285 Interest Revenue 169,358 165,443 96,535 Interest Revenue, Consolidated funds 2,683 6,746 4,413 Total Revenues 1,619,636 1,046,695 957,233 Interest Expense 173,537 155,974 94,555 Interest Expense, Consolidated funds 1,376 3,553 4,606 Depreciation and Amortization 22,655 20,424 11,402 Asset Co Non-Interest Revenue 2,889 2,455 8,447 Interest Revenue 770 284 1,224 Interest Revenue, Consolidated funds 9 9 12 Total Revenues 3,668 2,748 9,683 Interest Expense 6,120 3,835 2,920 Interest Expense, Consolidated funds — — — Depreciation and Amortization 22 36 1,034 Total Segment Non-Interest Revenue * 1,450,484 876,961 864,732 Interest Revenue 170,128 165,727 97,759 Interest Revenue, Consolidated funds 2,692 6,755 4,425 Total Revenues 1,623,304 1,049,443 966,916 Interest and Dividend Expense (includes dividend expense of $8.1 million, $8.8 million and $6.6 million for the years ended December 31, 2020, 2019, and 2018, respectively) 187,725 168,628 104,116 Interest and Dividend Expense, Consolidated funds (includes dividend expense of $0.7 million, $1.0 million and $1.9 million for the years ended December 31, 2020, 2019, and 2018, respectively) 2,064 4,602 6,534 Depreciation and Amortization 22,677 20,460 12,436 * Includes dividend revenue of $17.3 million, $9.2 million and $10.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. In addition, includes dividend revenue, consolidated funds, of $2.5 million, $3.0 million and $5.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Regulatory Requirements | Regulatory Requirements As registered broker-dealers, Cowen and Company, ATM Execution, Cowen Prime and Westminster are subject to the SEC's Uniform Net Capital Rule 15c3-1 ("SEC Rule 15c3-1"), which requires the maintenance of minimum net capital. Each registered broker-dealer has elected to compute net capital under the alternative method permitted by that rule. Under the alternative method, Cowen and Company's minimum net capital requirement, as defined in (a)(4) of SEC Rule 15c3-1, is equal to the greater of $1.0 million or 2% of aggregate debits arising from customer transactions. ATM Execution, Cowen Prime and Westminster are required to maintain minimum net capital, as defined in (a)(1)(ii) of SEC Rule 15c3-1, equal to the greater of $250,000 or 2% of aggregate debits arising from customer transactions. Advances to affiliates, repayment of borrowings, distributions, dividend payments, and other equity withdrawals are subject to certain notification and other provisions of SEC Rule 15c3-1 and other regulatory bodies. On May 1, 2020, Cowen and Company completed its merger with Cowen Execution. Cowen and Company is the surviving entity. The merger had no impact to the Company’s financial results. On July 3rd, 2020, Cowen Execution’s registration was formally terminated with FINR A. Cowen Prime is also subject to Commodity Futures Trading Commission ("CFTC") Regulation 1.17 ("Regulation 1.17"). Regulation 1.17 requires net capital equal to or in excess of $45,000 or the amount of net capital required by SEC Rule 15c3-1, whichever is greater. Cowen and Company is also subject to Options Clearing Corporation ("OCC") Rule 302. OCC Rule 302 requires maintenance of net capital equal to the greater of $2.0 million or 2% of aggregate debit items. At December 31, 2020, Cowen and Company ha d $288.2 million of net capital in excess of this minimum requirement. Cowen International Ltd and Cowen Ex ecution 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. 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, 2020, these regulated broker-dealers had regulatory net capital or financial resources, regulatory net capital requirements or minimum FCA or SFC requirement and excess as follows: Subsidiary Net Capital Minimum Net Capital Requirement Excess Net Capital (dollars in thousands) Cowen and Company $ 291,803 $ 3,594 $ 288,209 ATM Execution $ 3,857 $ 250 $ 3,607 Cowen Prime $ 18,553 $ 250 $ 18,303 Westminster $ 29,330 $ 250 $ 29,080 Cowen International Ltd $ 29,511 $ 22,699 $ 6,812 Cowen Execution Ltd $ 12,188 $ 3,331 $ 8,857 Cowen Asia $ 2,030 $ 387 $ 1,643 The Company's U.S. broker-dealers must also comply with SEC Rule 15c3-3 or claim an exemption pursuant to subparagraphs (k)(2)(i) or (k)(2)(ii) of that rule. Firms can rely on more than one exemption. Cowen Prime and ATM Execution claim 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. Cowen Prime and Westminster claim the (k)(2)(i) exemption with regards to customer transactions and balances that are cleared, settled and custodied in bank accounts designated as Special Accounts for the Exclusive Benefit of Customers ("Special Bank 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 SEC 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, 2020, Cowen and Company had segregated approximately $49.2 million of cash, while its required deposit was $31.3 million . As a clearing broker-dealer, Cowen and Company is required to compute a reserve requirement for proprietary accounts of broker-dealers ("PAB"), as defined in SEC Rule 15c3-3. Cowen and Company conducts PAB reserve computations in order to determine the amount it is required to deposit in its PAB Reserve Bank Accounts pursuant to SEC 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, 2020, Cowen and Company had $28.8 million of cash on deposit in PAB Reserve Bank Accounts, which was more than its required deposit of $19.2 million. Cowen and Company, ATM Execution, and Cowen Prime also maintain certain assets in PAB accounts held at their respective clearing brokers. Each treats its assets held in those PAB accounts at the respective clearing brokers as allowable assets for net capital purposes. Cowen's Luxembourg reinsurance companies, Vianden RCG Re SCA and Hollenfels, individually and their Luxembourg parent holding company, Ramius Enterprise Luxembourg Holdco S.à r.l., on a combined basis with the reinsurance companies, are required to maintain a solvency capital ratio as calculated by relevant European Commission directives and local regulatory rules in Luxembourg. Each reinsurance company's individual solvency capital ratio as well as the combined solvency capital ratio of the holding and reinsurance companies calculated as of December 31 of each year must exceed a minimum requirement. As of, December 31 , 2019, al l of these entities were in excess of this minimum requirement. Hollenfels and Vianden RCG Re SCA were tested at December 31, 2020 and were again in excess of the minimum requirement. The remaining company is expected to be also in compliance at its next testing date of December 31, 2020. 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, 2020. RCG Insurance Company’s capital and surplus as of December 31, 2020 totaled approximately $6.4 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, $28.4 million and $20.5 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, 2020, 2019 and 2018, 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, 2020 and 2019, loans to employees of $9.5 million and $14.9 million, respectively, were included in due from related parties on the accompanying consolidated statements of financial condition. Of these amounts $4.6 million and $7.1 million, respectively, are related to forgivable loans. These forgivable loans provide for a cash payment up-front to employees, with the amount due back to the Company forgiven over a vesting period. An employee that voluntarily ceases employment, or is terminated with cause, is generally required to pay back to the Company any unvested forgivable loans granted to them. The forgivable loans are recorded as an asset to the Company on the date of grant and payment, and then amortized to compensation expense on a straight-line basis over the vesting period. The vesting period on forgivable loans is generally one As of December 31, 2020 and 2019, included in due from related parties is $3.6 million and $6.5 million, respectively, related to the sales of portions of the Company's ownership interest in the activist business of Starboard Value to the Starboard principals. It is being financed through the profits of the relevant Starboard entities over a five The remaining balance included in due from related parties of $7.9 million and $5.3 million as of December 31, 2020 and 2019, respectively, relates to amounts due to the Company from affiliated investment funds and real estate entities due to expenses paid on their behalf. Included in due to related parties is approximately $0.2 million and $0.3 million as of December 31, 2020 and 2019, respectively, related to a subordination agreement with an investor in certain real estate funds. This total is based on a hypothetical liquidation of the real estate funds as of the balance sheet date. Employees and certain other related parties invest on a discretionary basis within consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of December 31, 2020 and 2019, such investments aggregated $84.3 million and $36.0 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 $21.2 million, $7.9 million, and $7.6 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Guarantees and Off-Balance Shee
Guarantees and Off-Balance Sheet Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019. Through indemnification provisions in clearing agreements with clients, customer activities may expose the Company to off-balance-sheet credit risk. Pursuant to the clearing agreement, the Company is required to reimburse the Company's clearing broker, without limit, for any losses incurred due to a counterparty's failure to satisfy its contractual obligations. However, these transactions are collateralized by the underlying security, thereby reducing the associated risk to changes in the market value of the security through the settlement date. The Company's customer securities activities are transacted on a delivery versus payment, cash or margin basis. In delivery versus payment transactions, the Company is exposed to risk of loss in the event of the customers' or brokers' inability to meet the terms of their contracts. In margin transactions, the Company extends credit to clients collateralized by cash and securities in their account. In the event the customers or brokers fail to satisfy their obligations, the Company may be required to purchase or sell securities at prevailing market prices in order to fulfill the obligations. The Company's exposure to credit risk can be directly impacted by volatile securities markets, which may impair the ability of counterparties to satisfy their contractual obligations. The Company seeks to control its credit risk through a variety of reporting and control procedures, including establishing credit limits based upon a review of the customers' financial condition and credit ratings. The Company seeks to control the risk associated with its customer margin transactions by requiring customers to maintain margin collateral in compliance with various regulatory and internal guidelines. The Company also monitors required margin levels daily and, pursuant to its guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary. In addition, during the normal course of business, the Company has exposure to a number of risks including market risk, currency risk, credit risk, operational risk, liquidity risk and legal risk. As part of the Company's risk management process, these risks are monitored on a regular basis throughout the course of the year. The Company enters into secured and unsecured borrowing agreements to obtain funding necessary to cover daily securities settlements with clearing corporations. At times, funding is required for unsettled customer delivery versus payment and riskless principal transactions, as well as to meet deposit requirements with clearing organizations. Secured arrangements are collateralized by the securities. The Company maintains uncommitted financing arrangements with large financial institutions, the details of which are summarized below as of December 31, 2020. Lender Contractual Amount Available Amount Maturity Date Description Pledge Lines (dollars in thousands) BMO Harris Bank $ 75,000 $ 75,000 None Secured Tri-Party Pledge Facility BMO Harris Bank 150,000 150,000 None Secured Depository Trust Company Pledge Line Total 225,000 225,000 Spike Line BMO Harris Bank 70,000 70,000 August 20, 2021 Unsecured committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements Revolving Credit Facility BMO Harris Bank 25,000 25,000 December 2, 2021 Unsecured Corporate Revolver Total Credit Lines $ 320,000 $ 320,000 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 26, 2021, the Company, through its indirect wholly owned subsidiary, Cowen Malta Holdings Ltd., completed the acquisition of all of the outstanding equity interest of Axeria Insurance Limited (the "Malta Acquisition"), an insurance company organized under the laws of Malta whose principal business activity is to provide insurance coverage to third parties which was renamed Cowen Insurance Company Ltd. upon acquisition. Due to the limited time since the date of the Malta Acquisition, it is impractical for the Company to make certain business combination disclosures as of the date of this filing as the Company is still finalizing the analysis of the information necessary to provide these disclosures. However, the Malta Acquisition is not expected to have a material impact on the Company’s operations and results. As a result, the Company is unable to present the allocation of the preliminary purchase price to the fair value of assets acquired and liabilities assumed. The Malta Acquisition will be accounted for under the acquisition method in accordance with US GAAP. When practicable, the Company will provide all required disclosures in subsequent filings. Subsequent to the Malta Acquisition, the operations of Cowen Insurance Company Ltd. will be reported as part of the Company's CIM reporting unit within the Op Co segment. On February 10, 2021 Board of Directors declared a quarterly cash dividend payable on its common stock of $0.08 per common share, payable on March 15, 2021, to stockholders of record on March 1, 2021. 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. |
Significant Accounting Polici_2
Significant Accounting Policies - Annual (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") as promulgated by the Financial Accounting Standards Board ("FASB") through Accounting Standards Codification (the "Accounting Standards") as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain investment funds that are consolidated in these accompanying consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to specialized industry accounting. The Company serves as the managing member/general partner and/or investment manager to investment funds which it sponsors and manages. Investment funds in which the Company has a controlling financial interest are consolidated with the Company. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these investment funds on a gross basis. The ownership interests in these investment funds that are not owned by the Company are reflected as redeemable or nonredeemable non-controlling interests, dependent on the non-controlling interest holder's redemption rights, in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these investment funds are eliminated in consolidation. During 2019, the Company carried out an analysis to evaluate instances where non-controlling interest parties have the unilateral right to redeem their ownership interest for cash, which resulted in a change to the presentation of certain nonredeemable non-controlling interests into permanent equity. Accordingly, prior period amounts have been recast to be presented separately from redeemable non-controlling interests within the permanent equity section of the accompanying consolidated statements of changes in equity. The change to the presentation of nonredeemable non-controlling interests has no impact on net income (loss) attributable to Cowen Inc. common stockholders, total assets or total liabilities. With respect to the Company's private equity investment management strategies, a portion of the Company's carried interest is granted to employees through profit-sharing awards designed to more closely align compensation with the overall realized performance of the Company. These arrangements enable certain employees to earn compensation based on performance revenue earned by the Company and are recorded within compensation payable in the accompanying consolidated statements of financial condition and employee compensation and benefits expense in the accompanying consolidated statements of operation based on the probable and estimable payments under the terms of the awards. Prior period amounts have been recast to reflect this accounting treatment. |
Principles of consolidation | Principles of consolidation The Company consolidates all entities that it controls through a majority voting interest or otherwise, including those investment funds in which the Company either directly or indirectly has a controlling financial interest. In addition, the Company consolidates all variable interest entities for which it is the primary beneficiary. The Company consolidates three investment funds for which it acts as the managing member/general partner and investment manager. At December 31, 2020, the Company consolidated the following investment funds: Ramius Enterprise LP (“Enterprise LP”), Cowen Private Investments LP ("Cowen Private"), and Cowen Sustainable Investments I LP ("CSI I LP"). These funds are referred to as each a "Consolidated Fund" and collectively the "Consolidated Funds". During the second quarter of 2020, the Company deconsolidated Ramius Merger Fund LLC (the "Merger Fund") and UCITS Fund ("UCITS Fund") due to a partial redemption of the Company’s direct portfolio fund investment in Merger Fund and a partial termination of the notional value of UCITS Fund units referenced in a total return swap with a third party. The Company continues to hold a direct retained portfolio fund investment in the Merger Fund and continues to have economic exposure to the returns of UCITS Fund through a total return swap with a third party. Both Merger Fund and UCITS Fund continue to be related parties of the Company after deconsolidation. CSI I Golden Holdco LP ("Golden HoldCo") and CSI I Prodigy Holdco LP ("Prodigy HoldCo") were consolidated through November 2020 when the Company raised additional capital within the sustainable investing strategy that diluted the Company's direct and indirect ownership. As a result, the Company's direct and indirect ownership in Golden Holdco and Prodigy Holdco is no longer expected to be significant to either entity and the entities were deconsolidated. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting operating entity ("VOE") or a variable interest entity ("VIE") under US GAAP. Voting Operating Entities —VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently, (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance and (iii) voting rights of equity holders are proportionate to their obligation to absorb losses or the right to receive returns. Under US GAAP consolidation requirements, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates all VOEs in which it owns a majority of the entity's voting shares or units. Variable Interest Entities— VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis as long as it has any continuing involvement with the VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE. As of December 31, 2020, the total assets and total liabilities of the consolidated VIEs were $325.5 million and $10.1 million , respectively. As of December 31, 2019, the total assets and total liabilities of the consolidated VIEs were $685.4 million and $24.9 million, respectively. The deconsolidation of two Consolidated Funds decreased the overall VIEs net assets. The VIEs act as investment managers and/or investment companies that may be managed by the Company or the Company may have equity interest in those investment companies. The VIEs are financed through their operations and/or loan agreements with the Company. At December 31, 2019, the Company held a variable interest in Ramius Merger Master Fund Ltd ("Merger Master" or the "Unconsolidated Master Fund") through the consolidated the Merger Fund. Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. Therefore, the Company had not consolidated the Unconsolidated Master Fund. In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily investment funds for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company does not consolidate the Unconsolidated Master Fund or real estate funds that are VIEs due to the Company's conclusion that it is not the primary beneficiary of these funds in each instance. Investment fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company has equity interests in the funds as both a general partner and a limited partner. In these instances the Company has concluded that the variable interests are not potentially significant to the VIE. Although the Company may advance amounts and pay certain expenses on behalf of the investment funds that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services. (see Note 6 for additional disclosures on VIEs). Equity Method Investments —For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary. Other —If the Company does not consolidate an entity or apply the equity method of accounting, the Company accounts for such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities), at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Retention of Specialized Accounting — The Consolidated Funds and certain other consolidated companies are investment companies and apply specialized industry accounting. The Company reports its investments on the consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company. 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 net realized and unrealized gains (losses) on investments and other transactions. |
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 Effective January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”). ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer). The Company identified securities borrowed and fees and other receivables carried at amortized cost (including, but not limited to, receivables related to securities transactions, corporate finance and syndicate receivables, management fees and incentive fees receivable) as impacted by the new guidance. ASC 326 specifies that the Company adopt the new guidance prospectively by means of a cumulative-effect adjustment to the opening retained earnings as of the beginning of the first reporting period effective. Accordingly, the Company recognized a cumulative effective adjustment of $0.01 million upon adoption. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including securities borrowed and 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 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. |
Valuation of investments and derivative contracts | Valuation of investments and derivative contracts US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is based on their proportional rights of the underlying portfolio company, and is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation impact the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the 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, real estate investments, carried interest and equity method investments, which are valued as follows: i. Portfolio funds— Portfolio funds (“Portfolio Funds”) include interests in private investment partnerships, foreign investment companies and other collective investment vehicles which may be managed by the Company or its affiliates. The Company applies the practical expedient provided by the US GAAP fair value measurements and disclosures guidance relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The 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 |
Derivatives, Offsetting Fair Value Amounts, Policy | 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 position, provided a legal right of offset exists. See Notes 6 for further information about offsetting of derivative financial instruments. |
Due From / Due to Related Parties [Policy Text Block] | Due from/due to related partiesThe Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition. |
Receivable from and payable to brokers | 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 account of brokers and dealers. Pursuant to the master netting agreements the Company has entered into with its brokers, dealers and clearing organizations, receivables and payables arising from unsettled trade are presented net (assets less liabilities) across balances with the same counterparty. The Company's receivable from and payable to brokers, dealers and clearing organizations balances are held at multiple financial institutions. |
Receivable from and payable to customers | Receivable from and payable to customers Receivable from customers includes amounts owed by customers on cash and margin transactions, recorded on a settlement-date basis and prepaid research, net of allowance for credit losses. For prepaid research, a prepaid research asset is established for research and related services disbursed in advance of anticipated client commission volumes. Payable to customers primarily consists of amounts owed to customers relating to securities transactions not completed on settlement date, recorded on a settlement-date basis on the statement of financial condition, and other miscellaneous customer payables. Securities owned by customers, including those that collateralize margin, are not reflected as assets of the Company on the statement of financial condition. The Company holds these securities with the intention of settlement against customer orders and are held as collateral for customer receivables. |
Fees receivable | Fees receivable Fees related to security transactions are reported net of an allowance for credit losses. Management and incentive fees are earned as the managing member, general partner and/or investment manager to the Company's investment funds and are recognized in accordance with appropriate revenue recognition guidance (see Note 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 2d for further information. Fees and interest received or paid are recorded in interest and dividends income and interest and dividends expense, respectively, on an accrual basis in the accompanying consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Accrued interest income and expense are recorded in receivable from brokers, dealers and clearing organizations and payable to brokers, dealers and clearing organizations, respectively, on an accrual basis in the accompanying consolidated statements of financial condition. At December 31, 2020 and 2019, the Company did not have any securities lending transactions for which fair value basis of accounting was elected. |
Securities sold under agreements to repurchase | Securities purchase 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 and market convention for the imputation of interest on repurchase agreement transactions on an accrual basis in the accompanying consolidated statements of operations. In cases where the fair value basis of accounting is elected, any resulting change in fair value would be reported in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. At December 31, 2020 and 2019, the Company did not have any repurchase agreements for which fair value basis of accounting was elected. |
Fixed Assets | Fixed assetsFixed assets are stated at cost less accumulated depreciation or amortization. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or lease term. When the Company commits to a plan to abandon fixed assets or leasehold improvements before the end of its original useful life, the estimated depreciation or amortization period is revised to reflect the shortened useful life of the asset. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives. Asset Depreciable Lives Depreciation and/or Amortization Method Telecommunication and computer equipment 3 - 5 years Straight-line Computer software 3 - 4 years Straight-line Furniture and fixtures 5 years Straight-line Leasehold improvements Term of Lease Straight-line Finance lease right-of-use asset Term of Lease Straight-line |
Goodwill and Intangible Assets | Goodwill and intangible assets Goodwill Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit. In January 2017, the FASB issued guidance that simplifies the subsequent measurement of goodwill. The guidance eliminated Step 2 from the goodwill impairment test, which required entities to calculate the implied fair value of goodwill and compare that amount to its carrying amount. Instead, under the amendments, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted these amendments during the second quarter of 2019 in conjunction with a quantitative goodwill test performed due to the Company's change in operating segments and restructuring of reporting units. See Note 12 for the impact of the goodwill impairment test. In accordance with US GAAP requirements for testing for impairment of goodwill, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. In testing for goodwill impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company concludes that fair value exceeds its carrying amount, then performing a quantitative impairment test is not necessary. If the Company concludes otherwise, the Company is required to perform a quantitative impairment test that requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Intangible assets |
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. |
Capital withdrawals payable [Policy Text Block] | Capital withdrawals payable Capital withdrawals from the Consolidated Funds are recognized as liabilities, net of any incentive income, when the amount requested in the withdrawal notice represents an unconditional obligation at a specified or determined date (or dates) or upon an event certain to occur. This generally may occur either at the time of the receipt of the notice, or on the last day of a reporting period, depending on the nature of the request. As a result, withdrawals paid after the end of the year, but based upon year-end capital balances are reflected as liabilities at the balance sheet date. |
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 have redemption features that can be exercised at the option of the holder currently or contingent upon the occurrence of future events, their ownership has been classified as temporary equity. Ownership which has been classified in permanent equity are non-controlling interests which are either not redeemable at the option of the holder or 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 Effective January 1, 2019, the Company adopted ASC Topic 842, Leases ("ASC 842"). The new guidance increases transparency and comparability by requiring the recognition of right-of-use assets and lease liabilities on the consolidated statements of financial condition. The recognition of these lease assets and lease liabilities represents a change from previous US GAAP requirements, which did not require lease assets and lease liabilities to be recognized for most leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee, have not significantly changed from previous US GAAP requirements. Under the effective date transition method selected by the Company, leases existing at, or entered into after January 1, 2019 were required to be recognized and measured. Prior reported financial statements, including footnotes, have not been recast to the reflect the impact of ASC 842 to all comparative periods presented. In applying ASC 842, the Company made an accounting policy election not to recognize the right-of-use assets and lease liabilities relating to short-term leases. Implementation of ASC 842 included an analysis of contracts, including real estate leases and service contracts to identify embedded leases, to determine the initial recognition of right-of-use assets and lease liabilities, which required subjective assessment over the determination of the associated discount rates. ASC 842 also provided various practical expedients which were assessed to determine the ultimate impact of ASC 842 upon adoption. The standard includes a package of three practical expedients which permit the Company to not reassess (1) whether any expired or existing contracts are or contain a lease, (2) the lease classification for any expired or existing leases and (3) any initial direct costs for any existing leases as of the effective date. The Company has elected to apply the package of practical expedients, as well as the hindsight practical expedient, and land easement practical expedient. The adoption of ASC 842 resulted in the recording of operating lease right-of-use assets of $103.7 million and operating lease liabilities of $110.5 million at January 1, 2019. The Company determines if an arrangement is or contains a lease at inception. The Company's operating lease arrangements are primarily for real estate and facility leases as well as office equipment. The Company has applied an accounting policy election to combine its lease and 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 23 for information on the Company's finance leases (formerly capital leases). |
Revenue recognition | Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), which requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company follows a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, the Company includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgments are required in the application of the five-step model including; when determining whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. The Company's principal sources of revenue are generated within two segments: Op Co and Asset Co as more fully described below. Revenue from contracts with customers includes management fees, incentive income, investment banking revenue and brokerage services revenue excluding principal transactions. ASC Topic 606 does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. The following is a description of principal activities, separated by business segments, from which the Company generates its revenue. For more detailed information about reportable segments, see Note 27. Operating Company The Op Co segment generates revenue through five principal sources: investment banking revenue, brokerage revenue, management fees, incentive income and investment income from the Company's own capital. Investment income is excluded from ASC Topic 606. Asset Company The Asset Co segment generates revenue through management fees, incentive income and investment income from the Company’s own capital. Investment income is excluded from ASC Topic 606. Investment banking The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from public and private small- and mid-capitalization companies within the Company's sectors. Investment banking revenue consists of underwriting fees, strategic/financial advisory fees, expenses reimbursed from clients and placement and sales agent fees. • Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible securities offerings. Fee revenue relating to underwriting commitments is recorded at the point in time when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; (iii) the Company has been informed of the number of securities that it has been allotted; and (iv) the issuer obtains control and benefits of the offering; which generally occurs on trade date. Underwriting fees are recognized gross of transaction-related expenses, and such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction. • Strategic/financial advisory fees. The Company's strategic advisory revenue includes success fees earned in connection with advising companies, principally in mergers, acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. A significant portion of the Company's advisory revenue (i.e., success-related advisory fees) is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is constrained until satisfaction of the performance obligation. The Company records strategic advisory revenues at the point in time, gross of related expenses, when the services for the transactions are completed or the contract is canceled under the terms of each assignment or engagement. • Placement and sales agent fees. The Company earns 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. • Principal transactions. Principal transactions revenue includes net trading gains and losses from the Company's market-making activities in over-the-counter equity and fixed income securities, trading of convertible securities, and trading gains and losses on inventory and other Company positions, which include securities previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a short duration. • Equity research fees. Equity research fees are paid to the Company for providing access to equity research. In the US, revenue is recognized once an arrangement exists, access to research has been provided and the customer has benefited from the research. As part of MiFID II, the 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. Management fees The Company earns management fees from investment funds and certain managed accounts for which it serves as the investment manager; such fees earned are typically based on committed and invested capital. The Company has determined that the primary drivers of management fees are committed and invested capital relating to private equity funds. The management fees are earned as the investment management services are provided and are not subject to reversals. The performance obligation related to the transfer of these services is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Several investment managers and/or general partners of the investment funds are owned jointly by the Company and third parties. Accordingly, the management fees generated by these funds are split between the Company and these third parties based on the proportionate ownership of the management company. Pursuant to US GAAP, these fees received by the management companies are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Management fees are generally paid on a quarterly basis and are prorated for capital inflows (or commitments) and redemptions (or distributions) and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. While some investors may have separately negotiated fees, in general the management fees are as follows: • Private equity funds. Management fees for the Company's private equity or debt funds are generally charged at an annual rate of 1% to 2% of committed capital during the investment period (as defined in the relevant partnership agreement). After the investment period, management fees for these private equity funds are generally charged at an annual rate of 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 utilized invested capital, committed capital or notional trading level. Management fees are generally calculated monthly at the end of each month. • Cowen trading strategies. Advisory fees for the Company's collateral management advisory business are typically paid quarterly based on utilized invested capital or committed capital, generally subject to a minimum fee. Incentive income The Company earns incentive income based on net profits (as defined in the respective investment management or partnership agreement) related to certain of the Company's investment funds and managed accounts. The incentive income is either allocated to the Company or is charged to the investment funds in accordance with their corresponding investment management or partnership agreement. For the hedge funds the Company offers, incentive income earned is typically up to 20% (in certain cases on performance in excess of a benchmark) of the net profits earned for the full year that are attributable to each fee-paying investor. For the private equity and debt fund products the Company offers, the carried interest earned is typically up to 30% of the distributions made to investors after return of their contributed capital and generally a preferred return. In relation to ASC Topic 606, the Company applies an accounting policy election to recognize incentive income allocated to the Company under an equity ownership model as net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company previously recognized these amounts as incentive income. Under the equity method of accounting the Company recognizes its allocations of incentive income or carried interest within net gains (losses) along with the allocations proportionate to the Company's ownership interests in the investment funds. The Company recognizes incentive income charged to the Company's hedge funds based on the net profits of the hedge funds. The Company recognizes such incentive income when the fees are no longer subject to reversal or are 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 or carried interest is earned after the investor has received a full return of its invested capital, plus a preferred return. However, for certain private equity structures, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These private equity structures are generally subject to a potential clawback of these incentive fees upon the liquidation of the private equity structure if the investor has not received a full return of its invested capital plus the preferred return thereon. Several investment managers and/or general partners of the Company's investment funds are jointly owned by the Company and third parties. Accordingly, the incentive fees generated by these investment funds are split between the Company and these third parties. Pursuant to US GAAP, incentive income received by the general partners that are accounted for under the equity method of accounting are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Investment income Investment income earned by the Company is generated from investing the Company's capital in various strategies. Investments transactions and related income/expenses 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 net gains (losses) on securities, derivatives and other investments, and with respect to the Consolidated Funds and other real estate entities as a component of net realized and unrealized gains (losses) on investments and other transactions and net realized and unrealized gains (losses) on derivatives, respectively, in the accompanying consolidated statements of operations. Interest and dividends Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from securities finance activities and securities held by the Company for purposes of investing capital, investments held by its Consolidated Funds and its brokerage balances. Interest is recognized in accordance with US GAAP and market convention for the imputation of interest of the host financial instrument. Interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date. Reimbursement from affiliates The Company allocates, at its discretion, certain expenses incurred on behalf of its investment management businesses. These expenses relate to the administration of such subsidiaries and assets that the Company manages for its investment funds. In addition, pursuant to the investment funds' offering documents, the Company charges certain allowable expenses to the investment funds, including charges and personnel costs for legal, compliance, accounting, tax compliance, risk and technology expenses that directly relate to administering the assets of the investment funds. Such expenses that have been reimbursed at their actual costs are included in the accompanying consolidated statements of operations as employee compensation and benefits, professional, advisory and other fees, communications, occupancy and equipment, client services and business development and other expenses. Reinsurance-related contracts Premiums for reinsurance-related contracts are earned over the coverage period. In most cases, premiums are recognized as revenues ratably over the term of the contract with unearned premiums computed on a monthly basis. For each of its contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with US GAAP. If the Company determines that a contract does not expose it to a reasonable possibility of a significant loss from insurance risk, the Company records the contract under the deposit method of accounting with any net amount receivable reflected as an asset in other assets, and any net amount payable reflected as a liability within accounts payable, accrued expenses and other liabilities on the consolidated statements of financial condition. The liabilities for losses and loss adjustment expenses are recorded at the estimated ultimate payment amounts, including reported losses. Estimated ultimate payment amounts are based upon (1) reports of losses from policyholders, (2) individual case estimates and (3) estimates of incurred but unreported losses. Provisions for losses and loss adjustment expenses are charged to earnings after deducting amounts recovered and estimates of recoverable amounts and are included in other expenses on the consolidated statements of operations. Costs of acquiring new policies, which vary with and are directly related to the production of new policies, have been deferred to the extent that such costs are deemed recoverable from future premiums or gross profits. Such costs include commissions and allowances as well as certain costs of policy issuance and underwriting and are included within other assets in the consolidated statements of financial condition. Interest and dividends expense |
Share-based Payment Arrangement [Policy Text Block] | Share-based compensationThe Company accounts for its share-based awards granted to individuals as payment for employee services and values such awards based on grant date fair value. Unearned compensation associated with share-based awards is amortized over the vesting period of the option or award. The Company estimates forfeiture for equity-based awards that are not expected to vest. See Note 19 for further information regarding the Company's share-based compensation plans. |
Income taxes | Income taxes The Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely than not to be realized. The Company evaluates its deferred tax assets for recoverability considering negative and positive evidence, including its historical financial performance, projections of future taxable income, future reversals of existing taxable temporary differences, and tax planning strategies. The Company records a valuation allowance against its deferred tax assets to bring them to a level that it is more likely than not to be utilized. US GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements, requiring the Company to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company recognizes accrued interest and penalties related to its uncertain tax positions as a component of income tax expense. In accordance with federal and state tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand-alone state and local tax returns. The Company also has subsidiaries that are residents in foreign countries where tax filings have to be submitted on a stand-alone or combined basis. These subsidiaries are subject to taxes in their respective countries and the Company is responsible for and therefore reports all taxes incurred by these subsidiaries in the condensed consolidated statements of operations. The foreign jurisdictions where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, Gibraltar, Germany, Switzerland, South Africa, Canada and Hong Kong. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency transactions The Company consolidates certain foreign subsidiaries that have designated a foreign currency as their functional currency. For entities that have designated a foreign currency as their functional currency, assets and liabilities are translated into U.S. dollars based on current rates, which are the spot rates prevailing at the end of each statement of financial condition date, and revenues and expenses are translated at historical rates, which are the average rates for the relevant periods. The resulting translation gains and losses, and the tax effects of such gains and losses, are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity. For subsidiaries that have designated the U.S. Dollar as their functional currency, securities and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollar amounts at the date of valuation. Purchases and sales of securities and other assets and liabilities and the related income and expenses denominated in foreign currencies are translated into U.S. Dollar amounts on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on these balances from fluctuations arising from changes in market prices of securities and other assets/liabilities held or sold. Such fluctuations are included in the accompanying consolidated statements of operations as a component of net gains (losses) on securities, derivatives and other investments. Gains and losses primarily relating to foreign currency broker balances are included in other income (loss) in the accompanying consolidated statements of operations. |
Recent pronouncements | Recent pronouncements Recently adopted In October 2018, the FASB issued guidance that made targeted changes to the related party consolidation guidance. The accounting standard update aligns the evaluation of whether a decision maker's fee is a variable interest with the guidance in the primary beneficiary test by requiring the decision maker to consider an indirect interest in a VIE held by a related party under common control on a proportionate basis. The standard became effective for the Company in the first quarter of 2020 and was adopted retrospectively with no impact to current and previous consolidation conclusions. In August 2018, the FASB issued guidance for accounting for upfront costs and fees paid by a customer in a cloud computing arrangement. The accounting standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. The standard became effective for the Company in the first quarter of 2020 and was adopted prospectively. In June 2016, the FASB issued guidance that impacts the impairment model for certain financial assets measured at amortized cost by requiring CECL methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. The guidance became effective for the Company in the first quarter of 2020. Please refer to Note 2e. In December 2019, the FASB issued guidance simplifying the accounting for income taxes. The guidance simplifies the accounting for income taxes by removing the following exceptions (i) the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income), (ii) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, (iii) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and (iv) general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally the guidance requires that an entity (a) recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (b) evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction and (c) reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date as well as specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. The guidance also makes minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the guidance is effective for reporting periods beginning after December 15, 2020 and interim periods within those fiscal years with early adoption permitted. The Company early adopted the guidance effective in the first quarter of 2020 and has determined no material impact from the adoption of this guidance on the Company's consolidated financial statements. In May 2020, the Securities and Exchange Commission (the “SEC”) adopted amendments to the financial disclosure requirements in Regulation S-X for acquisitions and dispositions of businesses and in conjunction with these changes, the SEC also revised the significance tests registrants use to determine the required disclosures for acquisitions and disposals of businesses as well as required disclosures for significant subsidiaries pursuant to Regulation S-X 3-09, 4-08(g) and 10-01(b)-1 . The new investment test considers the registrant’s market capitalization, and the new income test adds consideration of the revenue of the registrant and the acquired business. The SEC also increased the significance threshold to report business disposals to 20% from 10%. In addition to the changes to the significance tests, the SEC (i) formalized existing practice by allowing registrants to provide abbreviated financial statements of acquired businesses that meet certain criteria, (ii) revised rules that require registrants to present a maximum of two years of audited financial statements of an acquired business rather than three years, and they allow registration statements to exclude pre-acquisition financial statements of acquired businesses in certain cases, and (iii) simplified pro forma financial reporting by redefining pro forma adjustments as those necessary to reflect the accounting for the transaction. But registrants can elect to disclose forward-looking adjustments that meet certain criteria. The amendments are effective January 1, 2021. The Company early adopted these rules in the fourth quarter of 2020 and has determined that the material impact of the adoption relates to the Company’s application of the significant subsidiary tests when determining significant subsidiaries in relation to Regulation S-X Rule 3-09 and 4-08(g) and 10-01(b)-1, specifically applying the amended significance tests to all financial statement periods presented and determining that separate audited financial statements and related disclosures of Starboard Value A LP are no longer required pursuant to Regulation S-X Rule 3-09. The Company additionally determined based on application of the amended significance tests to all financial statement periods presented that disclosure of summarized financial information related to the Company’s equity method investments individually and in the aggregate is not required pursuant to Regulation S-X Rule 4-08(g). 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 is currently evaluating the impact of the new guidance. |
Earnings Per Share | Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares, and restricted stock units. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, and options and warrants are assumed to have been exercised, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Revenue from External Customers by Products and Services | For the years ended December 31, 2020, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment. Year Ended December 31, 2020 2019 2018 (dollars in thousands) Revenue from contracts with customers Operating Company Investment banking Underwriting fees $ 427,670 $ 211,666 $ 215,723 Strategic/financial advisory fees 190,958 79,208 81,733 Placement and sales agent fees 133,171 69,070 46,888 Expense reimbursements from clients 17,687 15,081 12,878 Total investment banking revenue 769,486 375,025 357,222 Brokerage Commissions 485,398 356,668 366,090 Trade conversion revenue 15,753 12,531 17,061 Equity research fees 19,757 19,006 20,184 Total brokerage revenue from customers 520,908 388,205 403,335 Management fees 46,556 31,361 26,080 Incentive income 592 1,532 3,117 Total revenue from contracts with customers - Op Co $ 1,337,542 $ 796,123 $ 789,754 Asset Company Management fees 959 1,248 3,578 Incentive income — 15 — Total revenue from contracts with customers - Asset Co 959 1,263 3,578 Total revenue from contracts with customers $ 1,338,501 $ 797,386 $ 793,332 |
Property, Plant and Equipment Useful Life | Asset Depreciable Lives Depreciation and/or Amortization Method Telecommunication and computer equipment 3 - 5 years Straight-line Computer software 3 - 4 years Straight-line Furniture and fixtures 5 years Straight-line Leasehold improvements Term of Lease Straight-line Finance lease right-of-use asset Term of Lease Straight-line |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
MHT Partners [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of October 1, 2020: (dollars in thousands) Fixed assets $ 101 Operating lease right-of-use assets 1,120 Intangible assets 1,224 Other assets 43 Compensation payable (533) Operating lease liabilities (1,446) Total net identifiable assets acquired and liabilities assumed 509 Goodwill 9,356 Total estimated purchase price $ 9,865 |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The allocation of the intangible assets is shown within the following table: Estimated intangible assets acquired Estimated average remaining useful lives (dollars in thousands) (in years) Intangible asset class Trade name $ 131 3 Customer relationships 749 4 Non-compete agreements 344 5 Total intangible assets $ 1,224 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The estimated amortization expense related to these intangible assets in future periods is as follows: (dollars in thousands) 2021 $ 300 2022 300 2023 289 2024 209 2025 52 Thereafter — $ 1,150 |
Quarton | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The table below summarizes the purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as of January 2, 2019: (dollars in thousands) Cash and cash equivalents $ 12,236 Fees receivable 7,269 Fixed assets 1,085 Operating lease right-of-use assets 3,200 Intangible assets 22,200 Other assets 667 Compensation payable (637) Operating lease liabilities (3,200) Due to related parties (4,750) Accounts payable, accrued expenses and other liabilities (16,257) Total identifiable net assets acquired and liabilities assumed 21,813 Goodwill 81,150 Total estimated purchase price $ 102,963 |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The allocation of the intangible assets is shown within the following table: Estimated intangible assets acquired Estimated average remaining useful lives (dollars in thousands) (in years) Intangible asset class Trade name $ 900 3 Customer relationships 7,100 4 Backlog 12,600 2 Proprietary software 1,600 3 Total intangible assets $ 22,200 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The estimated amortization expense related to these intangible assets in future periods is as follows: (dollars in thousands) 2021 $ 2,608 2022 1,775 2023 — 2024 — 2025 — Thereafter — $ 4,383 |
Cash Collateral Pledge (Tables)
Cash Collateral Pledge (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash Collateral Pledged | As of December 31, 2020 , the Company has the following irrevocable letters of credit, rela ted to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. Location Amount Maturity (dollars in thousands) New York $ 208 April 2021 New York $ 1,424 October 2022 New York $ 1,252 November 2021 Boston $ 386 March 2021 San Francisco $ 712 October 2025 $ 3,982 |
Investments of Operating Enti_2
Investments of Operating Entities and Consolidated Funds - (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment Holdings [Line Items] | |
Marketable Securities | As of December 31, 2020 and 2019, securities owned, at fair value consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Common stock $ 1,770,451 $ 1,546,484 Preferred stock 69,358 12,656 Warrants and rights 27,701 22,109 Government bonds 19,721 15,916 Corporate bonds 86,503 25,500 Convertible bonds 6,040 2,500 Term loan (*) 12,623 1,067 Trade claims (*) 9,205 7,320 $ 2,001,602 $ 1,633,552 |
Schedule of Derivative Instruments | The Company's long and short exposure to derivatives is as follows: Receivable on derivative contracts As of December 31, 2020 2019 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Currency forwards $ 4,902 $ 15 $ — $ — Swaps $ 944,544 64,634 $ 383,752 6,151 Options other (a) 371,188 49,102 550,188 60,066 Netting - swaps (b) (62,269) (3,240) $ 51,482 $ 62,977 Payable for derivative contracts As of December 31, 2020 2019 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Futures $ — $ — $ 10,224 $ 217 Currency forwards $ 123,346 3,067 $ 77,790 851 Swaps $ 896,863 43,560 $ 607,717 26,409 Options other (a) 198,320 66,566 306,306 36,524 Netting - swap (b) (37,033) (3,240) $ 76,160 $ 60,761 (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 2g for further information on offsetting of derivative financial instruments. The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2020 and 2019. This table does not include the impact of over-collateralization. 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, 2020 Receivable on derivative contracts, at fair value $ 113,751 $ 62,269 $ 51,482 $ 691 $ 169 $ 50,622 Payable for derivative contracts, at fair value 113,193 37,033 76,160 691 3,174 72,295 As of December 31, 2019 Receivable on derivative contracts, at fair value $ 66,217 $ 3,240 $ 62,977 $ — $ 2,911 $ 60,066 Payable for derivative contracts, at fair value 64,001 3,240 60,761 — 24,020 36,741 (a) Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. |
Schedule of Other Investments | As of December 31, 2020 and 2019, other investments included the following: As of December 31, 2020 2019 (dollars in thousands) Portfolio funds, at fair value (1) $ 133,454 $ 114,504 Carried interest (2) 82,892 30,360 Equity method investments (3) 38,681 40,858 $ 255,027 $ 185,722 |
Schedule of Other Investments, Portfolio Funds | The Portfolio Funds, at fair value as of December 31, 2020 and 2019, included the following: As of December 31, 2020 2019 (dollars in thousands) Starboard Value and Opportunity Fund LP (c)(*) $ 42,519 $ 37,895 Formation8 Partners Fund I, L.P. (f) 31,894 33,613 Cowen Healthcare Investments II LP (i) (*) 26,186 14,652 Lagunita Biosciences, LLC (d) 3,850 4,802 Eclipse Ventures Fund I, L.P. (b) 4,457 3,960 HealthCare Royalty Partners II LP (a)(*) 1,588 1,781 RCG Longview Debt Fund V, L.P. (g)(*) — 1,732 HealthCare Royalty Partners LP (a)(*) 1,072 1,326 Starboard Leaders Fund LP (e)(*) 2,020 1,560 Eclipse SPV I, LP (j)(*) 1,708 1,447 Ramius Merger Fund LLC (m)(*) 2,197 — TriArtisan ES Partners LLC (k)(*) 1,657 1,082 Cowen Healthcare Investments III LP (i)(*) 5,714 1,398 TriArtisan PFC Partners LLC (l)(*) 691 909 Starboard Value and Opportunity Fund Ltd (c) (*) 2,364 — Eclipse Ventures Fund II, L.P. (b) 1,733 1,330 Eclipse Continuity Fund I, L.P. (b) 1,101 823 Difesa Partners, LP (h) (*) 848 508 BDC Fund I Coinvest 1, L.P. (n) (*) 1,250 — Other private investment (o)(*) 326 4,448 Other affiliated funds (p)(*) 279 1,238 $ 133,454 $ 114,504 * These Portfolio Funds are affiliates of the Company. The Company has no unfunded commitments regarding the Portfolio Funds held by the Company except as noted in Note 22. (a) HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. (b) Each of Eclipse Ventures Fund I, L.P., Eclipse Ventures Fund II, L.P. and Eclipse Continuity Fund I, L.P. are venture capital funds which invests in early stage and growth stage hardware companies. Distributions will be made when the underlying investments are liquidated. (c) Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice. (d) Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (e) Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution. (f) Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. (g) RCG Longview Debt Fund V, L.P. is a real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated. (h) Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice. (i) Cowen Healthcare Investments II LP and Cowen Healthcare Investments III 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) 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. (o) Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy. |
Carried Interest | The carried interest as of December 31, 2020 and 2019, included the following: As of December 31, 2020 2019 (dollars in thousands) Cowen Healthcare Investments II LP $ 62,112 $ 23,759 Cowen Healthcare Investments III LP 11,520 — TriArtisan TGIF Partners LLC 3,361 — TriArtisan ES Partners LLC 3,152 — TriArtisan PFC Partners LLC 1,455 — Ramius Multi-Strategy Fund LP 734 — Ramius Merger Fund LLC 368 — Other private investment (a) — 4,737 RCG IO Renergys Sarl 190 1,251 Ramius Multi-Strategy Fund LP — 613 $ 82,892 $ 30,360 (a) Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy. |
Schedule Equity Method Investments | The following table summarizes equity method investments held by the Company: As of December 31, 2020 2019 (dollars in thousands) Starboard Value LP $ 31,528 $ 24,292 Surf House Ocean Views Holdings, LLC — 7,804 HealthCare Royalty GP III, LLC 2,213 2,230 RCG Longview Debt Fund V Partners, LLC — 2,889 RCG Longview Management, LLC 268 583 HealthCare Royalty GP, LLC 920 108 HealthCare Royalty GP II, LLC 269 302 RCG Longview Debt Fund IV Management, LLC 331 331 RCG Longview Equity Management, LLC 105 105 HCR Stafford Fund GP, LLC 1,025 880 Liberty Harbor North 222 292 Other 1,800 1,042 $ 38,681 $ 40,858 |
Schedule of Securities Sold, Not yet Purchased | As of December 31, 2020 and 2019, securities sold, not yet purchased, at fair value consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Common stock $ 699,894 $ 425,448 Corporate bonds 11,358 5,933 Government bonds 1,500 1,950 Preferred stock 6,589 3,686 Warrants and rights 8,774 14,819 $ 728,115 $ 451,836 |
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, 2020 and 2019. 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, 2020 Securities borrowed $ 1,908,187 $ — $ 1,908,187 $ — $ 1,809,399 $ — $ 98,788 Securities loaned 2,476,414 — 2,476,414 — 2,383,342 — 93,072 Securities purchased under agreements to resell 191 — 191 — 204 — (13) Securities sold under agreements to repurchase 5,036 — 5,036 — 5,544 — (508) As of December 31, 2019 Securities borrowed $ 754,441 $ — $ 754,441 $ — $ 751,913 $ — $ 2,528 Securities loaned 1,601,866 — 1,601,866 — 1,585,036 — 16,830 Securities sold under agreements to repurchase 23,244 — 23,244 — 27,384 — (4,140) (a) Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. (b) Includes the amount of cash collateral held/posted. |
Investments Classified by Contractual Maturity Date | The following tables present gross obligations for securities loaned and securities sold under agreements to repurchase by remaining contractual maturity and class of collateral pledged as of December 31, 2020 and 2019: Open and Overnight Up to 30 days 31 - 90 days Greater than 90 days Total (dollars in thousands) As of December 31, 2020 Securities loaned Common stock $ 2,232,687 $ — $ — $ — $ 2,232,687 Corporate bonds 243,726 — — — 243,726 Securities sold under agreements to repurchase Corporate bonds — — 5,036 — 5,036 As of December 31, 2019 Securities loaned Common stock 1,343,478 — — — 1,343,478 Corporate bonds 258,388 — — — 258,388 Securities sold under agreements to repurchase Common stock $ — $ — $ 23,244 $ — $ 23,244 |
Fair Value, Concentration of Risk | Investment's percentage of the Company's stockholders' equity Issuer Security Type Country Industry Percentage of Stockholders' Equity Market Value (dollars in thousands) As of December 31, 2020 Linkem S.p.A. Equity, loans and warrants Italy Wireless Broadband 9.07 % $ 87,944 As of December 31, 2019 Linkem S.p.A. Equity, loans and warrants Italy Wireless Broadband 9.53 % $ 77,142 |
Consolidated Funds | |
Investment Holdings [Line Items] | |
Marketable Securities | As of December 31, 2020 and 2019, securities owned, at fair value, held by the Consolidated Funds consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Preferred stock $ — $ 4,393 Common stock 4,816 200,306 Government bonds — 161,607 Corporate bonds — 3,405 Warrants and rights 5,806 5,567 $ 10,622 $ 375,278 |
Schedule of Derivative Instruments | As of December 31, 2020 and 2019, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of: As of December 31, 2020 2019 (dollars in thousands) Currency forwards $ — $ 3,302 Equity swaps — 927 Options — 1,604 $ — $ 5,833 Payable for derivative contracts As of December 31, 2020 and 2019, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of: As of December 31, 2020 2019 (dollars in thousands) Currency forwards $ — $ 88 Equity swaps — 3,931 Options — 750 $ — $ 4,769 |
Schedule of Other Investments, Portfolio Funds | Investments in Portfolio Funds, at fair value As of December 31, 2020 and 2019, investments in Portfolio Funds, at fair value, included the following: As of December 31, 2020 2019 (dollars in thousands) Investments of Enterprise LP $ 104,475 $ 99,153 Investments of Merger Fund — 76,616 Investments of Cowen Sustainable Investments I LP 88,195 — $ 192,670 $ 175,769 |
Merger Master | |
Investment Holdings [Line Items] | |
Marketable Securities | Merger Master As of December 31, 2019 Securities owned by Merger Master, at fair value (dollars in thousands) Common stock $ 76,531 Warrants and rights 748 Corporate bonds 2,074 $ 79,353 Securities sold, not yet purchased, by Merger Master, at fair value Common stock $ 29,623 Exchange traded funds 38,527 $ 68,150 |
Schedule of Derivative Instruments | Receivable on derivative contracts, at fair value, owned by Merger Master As of December 31, 2019 Description (dollars in thousands) Options $ 2,047 Equity swaps 406 $ 2,453 Payable for derivative contracts, at fair value, owned by Merger Master As of December 31, 2019 Description (dollars in thousands) Options $ 1,158 Equity swaps 268 $ 1,426 |
Fair Value Measurements for O_2
Fair Value Measurements for Operating Entities and Consolidated Funds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Assets at Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities owned, at fair value Government bonds $ 19,721 $ — $ — $ — $ 19,721 Preferred stock 9,391 — 59,967 — 69,358 Common stock 1,746,407 108 23,936 — 1,770,451 Convertible bonds — — 6,040 — 6,040 Corporate bonds — 86,368 135 — 86,503 Trade claims — — 9,205 — 9,205 Term loan — — 12,623 — 12,623 Warrants and rights 21,154 — 6,547 — 27,701 Receivable on derivative contracts, at fair value Currency forwards — 15 — — 15 Swaps — 64,634 — (62,269) 2,365 Options 48,851 — 251 — 49,102 Consolidated Funds Securities owned, at fair value Common stock 1,865 — 2,951 — 4,816 Warrants and rights — — 5,806 — 5,806 $ 1,847,389 $ 151,125 $ 127,461 $ (62,269) $ 2,063,706 Portfolio Funds measured at net asset value (a) 133,454 Consolidated Funds' Portfolio Funds measured at net asset value (a) 192,670 Carried interest (a) 82,892 Equity method investments (a) 38,681 Total investments $ 2,511,403 Liabilities at Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities sold, not yet purchased, at fair value Government bonds $ — $ — $ 1,500 $ — $ 1,500 Common stock 699,894 — — — 699,894 Corporate bonds — 10,654 704 — 11,358 Preferred stock 6,589 — — — 6,589 Warrants and rights 8,774 — — — 8,774 Payable for derivative contracts, at fair value Currency forwards — 3,067 — — 3,067 Swaps — 43,560 — (37,033) 6,527 Options 62,651 — 3,915 — 66,566 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 36,718 — 36,718 $ 777,908 $ 57,281 $ 42,837 $ (37,033) $ 840,993 (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 and the fourth quarter of 2020, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2020 and December 31, 2023. For both the Quarton Acquisition and the MHT Acquisition, 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 $35.1 million. The undiscounted amounts for the MHT Acquisition have no minimum or maximum as it is calculated based on revenue. (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 2g for further information on offsetting of derivative financial instruments. Assets at Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities owned, at fair value Government bonds $ 15,916 $ — $ — $ — $ 15,916 Preferred stock 4,821 — 7,835 — 12,656 Common stock 1,527,769 1,249 17,466 — 1,546,484 Convertible bonds — — 2,500 — 2,500 Corporate bonds — 23,079 2,421 — 25,500 Trade claims — — 7,320 — 7,320 Term loan — 1,067 — — 1,067 Warrants and rights 21,515 — 594 — 22,109 Receivable on derivative contracts, at fair value Swaps — 6,151 — (3,240) 2,911 Options 59,730 — 336 — 60,066 Consolidated Funds Securities owned, at fair value Government bonds 161,607 — — — 161,607 Preferred stock — — 4,393 — 4,393 Common stock 200,306 — — — 200,306 Corporate bonds — 3,405 — — 3,405 Warrants and rights — — 5,567 — 5,567 Receivable on derivative contracts, at fair value Currency forwards — 3,302 — — 3,302 Equity swaps — 927 — — 927 Options 1,604 — — — 1,604 $ 1,993,268 $ 39,180 $ 48,432 $ (3,240) $ 2,077,640 Portfolio Funds measured at net asset value (a) 114,504 Consolidated Funds' Portfolio Funds measured at net asset value (a) 175,769 Carried interest (a) 30,360 Equity method investments (a) 40,858 Total investments $ 2,439,131 Liabilities at Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Netting (c) Total (dollars in thousands) Operating Entities Securities sold, not yet purchased, at fair value US Government securities $ — $ — $ 1,950 $ — $ 1,950 Common stock 425,448 — — — 425,448 Corporate bonds — 4,933 1,000 — 5,933 Preferred stock 3,686 — — — 3,686 Warrants and rights 14,819 — — — 14,819 Payable for derivative contracts, at fair value Futures 217 — — — 217 Currency forwards — 851 — — 851 Swaps — 26,409 — (3,240) 23,169 Options 33,604 — 2,920 — 36,524 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 30,896 — 30,896 Consolidated Funds Payable for derivative contracts, at fair value Currency forwards — 88 — — 88 Options 750 — — — 750 Equity swaps — 3,931 — — 3,931 $ 478,524 $ 36,212 $ 36,766 $ (3,240) $ 548,262 (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 second quarter of 2016 and the first quarter of 2019, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table includes a roll forward of the amounts for the years ended December 31, 2020 and 2019 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement. Year Ended December 31, 2020 Balance at December 31, 2019 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2020 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 7,835 $ 45,530 (c) $ (1,653) (b) $ 5,891 $ (4,993) $ 7,357 $ 59,967 $ 10,846 Common stock 17,466 102 (l) (29) (a)(e) 7,288 (3,818) 2,927 23,936 1,990 Convertible bonds 2,500 — — 3,787 (1,050) 803 6,040 803 Corporate bond 2,421 — (312) (b) 666 (2,432) (208) 135 (180) Options, asset 336 — (102) (l) — — 17 251 (1) Options, liability 2,920 — — — — 995 3,915 995 Term loan — 11,149 (c) — 245 — 1,229 12,623 1,229 Warrants and rights 594 4,528 (a)(c) — — — 1,425 6,547 1,425 Trade claims 7,320 1,044 (a)(e) — 4,774 (2,944) (989) 9,205 (1,013) Corporate bond, liability 1,000 — — — — (296) 704 (248) Government bonds, liability 1,950 — — — — (450) 1,500 (450) Contingent consideration liability 30,896 — (1,235) (k) 4,218 (m) (5,653) 8,492 36,718 8,492 Consolidated Funds Preferred stock 4,393 — (4,000) (d) — — (393) — — Common stock — 4,000 (d) (100,000) (j) 100,000 — (1,049) 2,951 (1,049) Warrants and rights 5,567 — — — — 239 5,806 239 Convertible bonds $ — $ — $ (76,114) (j) $ 75,000 $ — $ 1,114 $ — $ — Year Ended December 31, 2019 Balance at December 31, 2018 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2019 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 5,168 $ — $ (1,000) (f) $ 3,513 $ (1,270) $ 1,424 $ 7,835 $ 2,285 Common stock 9,850 10,242 (g)(h) (3) (i) 11,477 (11,002) (3,098) 17,466 (3,098) Convertible bonds 3,000 — (4,826) (b)(f) 11,354 (7,072) 44 2,500 (25) Corporate bond — 4 (g) — 2,811 (533) 139 2,421 140 Options, asset — 330 (h) — — — 6 336 6 Options, liability 2,096 — — — (4) 828 2,920 828 Warrants and rights 1,666 — — — (189) (883) 594 31 Trade claim 5,543 — — 7,205 (5,506) 78 7,320 76 Corporate bond, liability — 2,525 (g) — — — (1,525) 1,000 (1,525) Government bonds, liability — 4,681 (g) — — — (2,731) 1,950 (2,731) Contingent consideration liability 3,070 — — 27,700 (1,234) 1,360 30,896 1,360 Consolidated Funds Preferred stock 24,314 — (19,929) (f) — — 8 4,393 — Common stock 94 — (94) (f) 407 (958) 551 — — Warrants and rights $ 5,279 $ — $ — $ — $ (1,758) $ 2,046 $ 5,567 $ 289 (1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations. (a) The security stopped trading on an open market. (b) The investments were converted to common stock. (c) The Company consolidated an operating entity which holds preferred stock, loans and warrants. (d) The investment was involved in a reverse merger and preferred stock was converted to common shares. (e) The transfers between level 1 and level 3 are due to the change in the availability of observable inputs. (f) The entity in which the Company is invested completed an initial public offering. (g) The investments had a change of valuation methodology due to increased activity in foreign market. (h) The holding Company which held common stock and options was liquidated. (i) Shares of common stock were exchanged for liquid warrants and rights of an acquired company. (j) The Company deconsolidated an investment fund. (k) The contingent liability reached the end of its earnout period and is now valued based on actual cash payout. (l) The options expired and converted into common stock. (m) See Note 3 (MHT Acquisition) for contingent consideration recorded. |
Fair Value Inputs, Assets, Quantitative Information | The following table includes quantitative information as of December 31, 2020 and 2019 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments. Quantitative Information about Level 3 Fair Value Measurements Fair Value December 31, 2020 Valuation Techniques Unobservable Inputs Range Weighted Average Level 3 Assets (dollars in thousands) Common and preferred stocks $ 65,735 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 10% - 12% 6.25x - 6.75x 11% 6.5x Options 251 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 10% - 12% 6.25x - 6.75x 11% 6.5x Trade claims 3,500 Discounted cash flows Discount rate 15% 15% Warrants and rights 11,217 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 4% - 11% 6.25x - 6.75x 7.0% 6.5x Corporate, convertible bonds and term loan 12,623 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 10% - 12% 6.25x - 6.75x 11% 6.5x Other level 3 assets (a) 34,135 Total level 3 assets $ 127,461 Level 3 Liabilities Options 3,915 Option pricing models Volatility 35% 35% Contingent consideration liability 36,718 Discounted cash flows Monte Carlo simulation Discount rate Volatility 9% - 16% 22% - 24% 15% 22% Other level 3 liabilities (a) 2,204 Total level 3 liabilities $ 42,837 Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2019 Valuation Techniques Unobservable Inputs Range Weighted Average Level 3 Assets (dollars in thousands) Common and preferred stocks $ 10,876 Discounted cash flows Guideline companies Discount rate EBITDA Market Multiples 8% - 11.25% 6.5x - 7x 10.4% 6.75x Trade claims 24 Discounted cash flows Discount rate 20% 20% Warrants and rights 6,162 Model based Discounted cash flows Volatility Discount rate 30% 6% - 7% —% 6.1% Options 336 Option pricing models Discount rate EBITDA Market Multiples 9.75% - 11.25% 6.5x - 7x 10.5% 6.75x Corporate and convertible bonds 311 Discounted cash flows Recovery Discount rate Probability of recovery 20% 1% - 3% 20% 2.3% Other level 3 assets (a) 30,723 Total level 3 assets $ 48,432 Level 3 Liabilities Options 2,920 Option pricing models Volatility 35% to 40% 35% Contingent consideration liability 30,896 Discounted cash flows Monte Carlo simulation Discount rate Volatility 15% - 22% 17% 15% 17% Other level 3 liabilities (a) 2,950 Total level 3 liabilities $ 36,766 |
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 2g). December 31, 2020 December 31, 2019 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) Financial Assets Operating companies Cash and cash equivalents $ 645,169 $ 645,169 $ 301,123 $ 301,123 Level 1 Cash collateral pledged 110,743 110,743 6,563 6,563 Level 2 Segregated cash 185,141 185,141 107,328 107,328 Level 1 Securities purchased under agreements to resell 191 204 — — Level 2 Securities borrowed 1,908,187 1,908,187 754,441 754,441 Level 2 Loans receivable 7,682 7,682 (d) 42,830 42,830 (d) Level 3 Consolidated Funds Cash and cash equivalents 417 417 30,874 30,874 Level 1 Financial Liabilities Securities sold under agreements to repurchase 5,036 5,544 23,244 27,384 Level 2 Securities loaned 2,476,414 2,476,414 1,601,866 1,601,866 Level 2 Convertible debt 80,808 (a) 135,444 (b) 118,688 (a) 148,786 (b) Level 2 Notes payable and other debt 383,067 (e) 405,840 (c) 345,451 (e) 372,591 (c) Level 2 (a) The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. (b) The convertible debt includes the conversion option and is based on the last broker quote available. (c) Notes payable and other debt are based on the last broker quote available. (d) The fair market value of level 3 loans is calculated using discounted cash flows where applicable. |
Receivables from and payables_2
Receivables from and payables to brokers, dealers and clearing organizations receivables from brokers, dealers, and clearing organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables from Brokers-Dealers and Clearing Organizations [Abstract] | |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations | As of December 31, 2020 and 2019, amounts receivable from brokers, dealers and clearing organizations include: As of December 31, 2020 2019 (dollars in thousands) Broker-dealers $ 1,608,273 $ 623,523 Securities failed to deliver 55,655 45,673 Clearing organizations 41,795 3,180 Securities borrowed/loaned interest receivable 24,021 9,319 $ 1,729,744 $ 681,695 As of December 31, 2020 and 2019, amounts payable to brokers, dealers and clearing organizations include: As of December 31, 2020 2019 (dollars in thousands) Broker-dealers $ 286,011 $ 185,838 Securities failed to receive 68,036 57,580 Clearing organizations 33,732 18,063 Securities borrowed/loaned interest payable 27,364 9,537 $ 415,143 $ 271,018 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fixed Assets [Abstract] | |
Property, Plant and Equipment [Table Text Block] | As of December 31, 2020 and 2019, fixed assets consisted of the following: As of December 31, 2020 2019 (dollars in thousands) Telecommunication and computer equipment $ 7,921 $ 7,556 Computer software 11,813 8,952 Furniture and fixtures 3,387 3,526 Leasehold improvements 40,468 40,301 Finance lease right-of-use asset (See Note 22) 6,172 6,172 Airplane and related equipment 3,932 — 73,693 66,507 Less: Accumulated depreciation and amortization (40,670) (32,846) $ 33,023 $ 33,661 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Investment Investment Bank Cowen Investment Management Asset Co Total (dollars in thousands) Beginning balance - December 31, 2018 Goodwill $ 29,026 $ 51,337 $ — $ — 80,363 Accumulated impairment charges (10,200) (9,485) — — (19,685) Net 18,826 41,852 — — 60,678 Activity: 2019 Recognized goodwill (See note 3) — 81,150 — — 81,150 Realignment of segment goodwill: Goodwill (29,026) — 22,705 6,321 — Accumulated impairment charges 10,200 — (7,979) (2,221) — Goodwill impairment charges — — — (4,100) (4,100) Beginning balance: December 31, 2019 Goodwill — 132,487 22,705 6,321 161,513 Accumulated impairment charges — (9,485) (7,979) (6,321) (23,785) Net — 123,002 14,726 — 137,728 Activity: 2020 Recognized goodwill (See note 3) — 9,356 — — 9,356 Goodwill impairment charges — — — — — Ending balance: December 31, 2020 Goodwill — 141,843 22,705 6,321 170,869 Accumulated impairment charges — (9,485) (7,979) (6,321) (23,785) Net $ — $ 132,358 $ 14,726 $ — $ 147,084 |
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, 2020 and 2019. December 31, 2020 December 31, 2019 Amortization Gross Accumulated Net Gross Accumulated Net (in years) (in thousands) (in thousands) Trade names 3 $ 1,031 $ (611) $ 420 $ 960 $ (360) $ 600 Customer relationships 2 - 14 52,040 (32,154) 19,886 51,724 (21,065) 30,659 Non-compete agreements and covenants with limiting conditions acquired 5 344 (17) 327 400 (347) 53 Intellectual property 8 2,972 (328) 2,644 1,188 (119) 1,069 Acquired software 3 - 10 5,900 (4,774) 1,126 7,323 (4,504) 2,819 $ 62,287 $ (37,884) $ 24,403 $ 61,595 $ (26,395) $ 35,200 |
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, 2020 is as follows: (dollars in thousands) 2021 $ 6,828 2022 5,439 2023 3,432 2024 3,172 2025 2,148 Thereafter 3,384 $ 24,403 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of Other Assets [Table Text Block] | As of December 31, 2020 2019 (dollars in thousands) Prepaid expenses $ 14,468 $ 9,957 Reinsurance business receivables (b) 15,387 14,688 Tax receivables 2,280 8,464 Interest and dividends receivable 1,688 1,944 Deferred acquisition costs (b) 5,221 4,808 The Military Mutual loan (a) — 27,459 Other (c) 15,840 16,838 $ 54,884 $ 84,158 (a) In September 2020, the loan, related to the Company's' commercial reinsurance activities, was sold. As of December 31, 2019, the maturity date was December 2029 and interest rate of 3%. (b) Balances relate to the Company's reinsurance business (See Note 18). (c) As of December 31, 2020 and 2019, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.2 million and $7.5 million, respectively. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows: As of December 31, 2020 2019 (dollars in thousands) Contingent consideration payable (see Note 3) 37,953 30,896 Interest and dividends payable 17,031 5,828 Loss reserves and claims incurred but not reported (a) 37,036 30,282 Professional fees payable 9,495 4,789 Unearned premiums (a) 14,732 16,092 Fees payable 4,459 4,628 Accrued tax liabilities 17,204 2,778 SEC fees payable 9,987 3,957 Software contracts payable 1,852 2,884 Performance fees payable 4,427 3,708 Accrued expenses and accounts payable (b) 42,303 35,714 $ 196,479 $ 141,556 (a) Balances relate to the Company's reinsurance business (See Note 18). (b) As of December 31, 2020 and 2019, the balance includes reinsurance premiums payable of $15.5 million and $13.2 million, respectively. |
Non-Controlling Interests in _2
Non-Controlling Interests in Consolidated Subsidiaries and Funds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interests in consolidated subsidiaries and investment funds | Redeemable and nonredeemable non-controlling interests in consolidated subsidiaries and investment funds and the related net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds are comprised as follows: As of December 31, 2020 2019 (dollars in thousands) Redeemable non-controlling interests in consolidated subsidiaries and investment funds Consolidated Funds $ — $ 391,275 Nonredeemable non-controlling interests in consolidated subsidiaries and investment funds Operating companies 83,818 11,513 Consolidated Funds 115,806 82,807 $ 199,624 $ 485,595 |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and funds | Year Ended December 31, 2020 2019 2018 (dollars in thousands) Income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds Operating companies $ 19,584 $ (3,264) $ 3,177 Consolidated Funds (28,883) 34,503 33,883 $ (9,299) $ 31,239 $ 37,060 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from External Customers by Products and Services | For the years ended December 31, 2020, 2019 and 2018, the following tables presents revenues from contracts with customers disaggregated by fee type and segment. Year Ended December 31, 2020 2019 2018 (dollars in thousands) Revenue from contracts with customers Operating Company Investment banking Underwriting fees $ 427,670 $ 211,666 $ 215,723 Strategic/financial advisory fees 190,958 79,208 81,733 Placement and sales agent fees 133,171 69,070 46,888 Expense reimbursements from clients 17,687 15,081 12,878 Total investment banking revenue 769,486 375,025 357,222 Brokerage Commissions 485,398 356,668 366,090 Trade conversion revenue 15,753 12,531 17,061 Equity research fees 19,757 19,006 20,184 Total brokerage revenue from customers 520,908 388,205 403,335 Management fees 46,556 31,361 26,080 Incentive income 592 1,532 3,117 Total revenue from contracts with customers - Op Co $ 1,337,542 $ 796,123 $ 789,754 Asset Company Management fees 959 1,248 3,578 Incentive income — 15 — Total revenue from contracts with customers - Asset Co 959 1,263 3,578 Total revenue from contracts with customers $ 1,338,501 $ 797,386 $ 793,332 |
Reinsurance Reinsurance (Tables
Reinsurance Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Effects of Reinsurance | Year Ended December 31, 2020 2019 2018 (dollars in thousands) Incurred and paid claims $ 15,004 $ 24,380 $ 14,800 Change in claims outstanding and claims IBNR $ 34,173 $ 5,647 $ 11,800 |
Share-Based Compensation and _2
Share-Based Compensation and Employee Ownership Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Year Ended December 31, 2020 Year Ended December 31, 2019 Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units Weighted-Average Nonvested Restricted Class A Common Shares and Class A Common Restricted Stock Units Weighted-Average Beginning balance outstanding 5,364,486 $ 16.67 5,962,295 $ 15.73 Granted 2,709,979 17.40 2,435,058 16.58 Vested (2,419,818) 15.59 (2,291,032) 15.63 Canceled (87,348) 14.80 (584,333) 11.49 Forfeited (117,108) 15.62 (157,502) 13.98 Ending balance outstanding 5,450,191 $ 17.56 5,364,486 $ 16.67 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 are as follows: Year ended December 31, 2020 2019 2018 (dollars in thousands) Current tax expense/(benefit) Federal $ 13,840 $ (731) $ (1,883) State and local 5,060 457 (2,148) Foreign 1,355 1,831 785 Total $ 20,255 $ 1,557 $ (3,246) Deferred tax expense/(benefit) Federal $ 53,231 $ 10,242 $ 12,018 State and local 17,337 3,598 6,956 Foreign (450) (544) (9) Total 70,118 13,296 18,965 Total tax expense/(benefit) $ 90,373 $ 14,853 $ 15,719 |
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, 2020, 2019, and 2018 are as follows: Year ended December 31, 2020 2019 2018 Pre-tax loss at U.S. statutory rate 21.0 % 21.0 % 21.0 % Basis adjustment on investments — — 3.5 Nondeductible expenses 1.5 4.1 1.2 Goodwill impairment — 1.2 — Change in valuation allowance — (4.0) 7.1 State and foreign tax 7.3 8.0 (10.0) Reversal of income attributable to non-controlling interests 0.7 (9.2) (8.6) Other, net (0.1) (0.1) 1.7 Total 30.4 % 21.0 % 15.9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the Company's deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows: As of December 31, 2020 2019 (dollars in thousands) Deferred tax assets, net of valuation allowance Net operating loss $ 18,039 $ 60,160 Deferred compensation 24,068 46,545 Intangible assets 4,513 2,969 Tax credits 6,230 6,716 Lease liability 20,401 24,623 Other 2,858 3,043 Total deferred tax assets 76,109 144,056 Valuation allowance (5,194) (5,234) Deferred tax assets, net of valuation allowance 70,915 138,822 Deferred tax liabilities Right-of-use assets (19,443) (23,028) Unrealized gains on investments (33,439) (26,545) Amortization of bond discount (1,686) (3,980) Other (7,317) (6,103) Total deferred tax liabilities (61,885) (59,656) Deferred tax assets/(liabilities), net $ 9,030 $ 79,166 |
Summary of Operating Loss Carryforwards [Table Text Block] | The Company has the following net operating loss carryforwa rds at December 31, 2020: Jurisdiction: Federal New York State New York City Hong Kong Net operating loss (in millions) $26.0 $33.6 $60.5 $12.4 Year of expiration 2038 2037 2037 Indefinite |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | The components of unrecog nized tax benefits are as follows: As of December 31, 2020 2019 (dollars in thousands) Beginning balance at January 1 $ 299 $ 299 Increases/(Decreases) due to current year positions — — Ending balance at December 31 $ 299 $ 299 |
Summary of Income Tax Examinations | The following are the major tax jurisdictions in which the Company has significant business operations and the earliest tax year subject to examination: Jurisdiction: Federal New York State New York City United Kingdom Luxembourg Germany Switzerland Tax Year 2017 2013 2017 2016 2015 2016 2015 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | For the years ended December 31, 2020 and 2019, quantitative information regarding the Company's operating lease obligations reflected in the accompanying consolidated statements of operations were as follows: Year Ended December 31, 2020 2019 (dollars in thousands) Lease cost Operating lease cost $ 22,759 $ 23,540 Short-term lease cost 207 253 Variable lease cost 3,550 3,580 Sublease income (781) (953) Total lease costs $ 25,735 $ 26,420 The following table summarizes the supplemental cash flow information and certain other information related to operating leases for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 (dollars in thousands) Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25,012 $ 24,743 Weighted average remaining lease term - operating leases (in years) 4.58 5.34 Weighted average discount rate - operating leases 3.66 % 4.13 % |
Future Minimum Annual Lease and Service Payments | As of December 31, 2020, maturities of the outstanding operating lease liabilities for the Company were as follows: Equipment Leases (operating) Real Estate and Other Facility Rental (a) (b) (dollars in thousands) 2021 $ 283 $ 24,520 2022 150 21,805 2023 11 18,287 2024 — 15,017 2025 — 4,553 Thereafter — 5,963 Total operating leases 444 90,145 Less discount 29 7,781 Less short-term leases — 44 Total lease liability $ 415 $ 82,320 (a) The Company has entered into various agreements to sublease certain of its premises. (b) During the year ended December 31, 2020, the Company recognized an increase of $1.6 million of operating right-of-use assets and leases liabilities related to for facility leases. As of December 31, 2020, future minimum annual service payments for the Company were as follows: Service Payments (dollars in thousands) 2021 $ 24,610 2022 15,224 2023 7,943 2024 5,190 2025 3,366 Thereafter 10,594 Total service payment commitments $ 66,927 |
Other Commitments | The following table summarizes unfunded commitments as of December 31, 2020: Entity Unfunded Commitments Commitment Term (dollars in thousands) HealthCare Royalty Partners funds (a) $ 7,571 4 years Eclipse Ventures Fund I, L.P. $ 59 4 years Eclipse Fund II, L.P. $ 100 5 years Eclipse Continuity Fund I, L.P. $ 58 6 years Cowen Healthcare Investments II LP $ 1,202 1 year Cowen Healthcare Investments III LP $ 5,094 6 years Cowen Sustainable Investments I LP $ 10,639 9 years |
Convertible Debt and Notes Pa_2
Convertible Debt and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Capital Lease Obligations | As of December 31, 2020 and 2019, the Company's outstanding debt was as follows: As of December 31, 2020 2019 (dollars in thousands) Convertible debt $ 80,808 $ 118,688 Notes payable 307,653 306,818 Term loans — 32,180 Other notes payable 72,505 2,516 Finance lease obligations 2,909 3,937 $ 463,875 $ 464,139 |
Direct Financing Lease, Lease Income [Table Text Block] | For the years ended December 31, 2020 and 2019, 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: Year Ended December 31, 2020 2019 (dollars in thousands) Lease cost Finance lease cost: Amortization of finance lease right-of-use assets $ 1,232 $ 1,266 Interest on lease liabilities $ 171 $ 227 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 171 $ 227 Financing cash flows from finance leases $ 1,033 $ 1,266 Weighted average remaining lease term - operating leases (in years) 2.24 3.21 Weighted average discount rate - operating leases 4.89 % 4.88 % |
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, 2020, are as follows: Convertible Debt Notes Payable Other Notes Payable Finance Lease (dollars in thousands) 2021 $ 2,644 $ 23,548 $ 4,858 $ 1,483 2022 90,763 23,548 593 1,167 2023 — 23,548 72,593 411 2024 — 98,721 543 11 2025 — 17,893 — — Thereafter — 316,411 — — Subtotal 93,407 503,669 78,587 3,072 Less (a) (12,599) (196,016) (6,082) (163) Total $ 80,808 $ 307,653 $ 72,505 $ 2,909 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020: Treasury Stock Shares Cost Average Cost per Share Balance outstanding at December 31, 2019 18,605,581 $ 284,301 $ 15.28 Shares purchased for minimum tax withholding under the 2010 Equity Plan or other similar transactions 866,784 15,147 17.48 Shares of stock received in respect of indemnification claims 7,747 108 13.96 Purchase of treasury stock 3,139,751 47,314 15.07 Balance outstanding at December 31, 2020 22,619,863 $ 346,870 $ 15.33 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Year Ended December 31, 2020 2019 2018 (dollars in thousands) Beginning balance $ (5) $ (5) $ (8) Foreign currency translation (2) — 3 Ending balance $ (7) $ (5) $ (5) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The computation of earnings per share is as follows: Year Ended December 31, 2020 2019 2018 (dollars and share data in thousands, except per share data) Net income (loss) $ 207,064 55,870 $ 79,879 Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds (9,299) 31,239 37,060 Net income (loss) attributable to Cowen Inc. 216,363 24,631 42,819 Preferred stock dividends 6,792 6,792 6,792 Net income (loss) attributable to Cowen Inc. common stockholders $ 209,571 $ 17,839 $ 36,027 Shares for basic and diluted calculations: Weighted average shares used in basic computation 27,790 29,525 29,545 Contingently issuable common stock in connection with an acquisition (see Note 3) 85 26 — Restricted stock 1,644 1,735 1,190 Weighted average shares used in diluted computation 29,519 31,286 30,735 Earnings (loss) per share: Basic $ 7.54 $ 0.60 $ 1.22 Diluted $ 7.10 $ 0.57 $ 1.17 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: Year Ended December 31, 2020 2019 2018 (dollars in thousands) Economic Income Op Co 329,381 53,257 77,935 Asset Co (16,136) (9,560) (9,034) Adjustments made to arrive at Income (loss) before income taxes Noncontrolling Interest (9,299) 31,239 37,060 Preferred stock dividends 6,792 6,792 6,792 Amortization of (discount)/premium on convertible debt (4,499) (4,297) (4,010) Transaction-related and other costs (9,098) (2,608) (2,778) Goodwill and other impairment (2,423) (4,100) — Unrealized gain (loss) on conversion option (a) — — (7,416) Debt extinguishment gain / loss 2,719 — (556) Exited business cost — — (2,395) Income (loss) before income taxes 297,437 70,723 95,598 (a) Prior to the Company's June 26, 2018 stockholder meeting, the embedded conversion option feature associated with its December 2022 Convertible Notes was recognized at fair value in accordance with US GAAP as a derivative liability. The profit and loss movement related to that liability was associated with the movement of the per share price of the Company's Class A common stock. Subsequent to receiving stockholder approval for share settlement the embedded conversion option was reclassified to equity and will no longer result in profit and loss movements. Economic Income (Loss) information provided and reviewed by the CODM includes (i) non-interest revenue, (ii) interest revenue, (iii) interest expense and (iv) depreciation and amortization expense 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. Year Ended December 31, 2020 2019 2018 (dollars in thousands) OpCo Non-Interest Revenue 1,447,595 874,506 856,285 Interest Revenue 169,358 165,443 96,535 Interest Revenue, Consolidated funds 2,683 6,746 4,413 Total Revenues 1,619,636 1,046,695 957,233 Interest Expense 173,537 155,974 94,555 Interest Expense, Consolidated funds 1,376 3,553 4,606 Depreciation and Amortization 22,655 20,424 11,402 Asset Co Non-Interest Revenue 2,889 2,455 8,447 Interest Revenue 770 284 1,224 Interest Revenue, Consolidated funds 9 9 12 Total Revenues 3,668 2,748 9,683 Interest Expense 6,120 3,835 2,920 Interest Expense, Consolidated funds — — — Depreciation and Amortization 22 36 1,034 Total Segment Non-Interest Revenue * 1,450,484 876,961 864,732 Interest Revenue 170,128 165,727 97,759 Interest Revenue, Consolidated funds 2,692 6,755 4,425 Total Revenues 1,623,304 1,049,443 966,916 Interest and Dividend Expense (includes dividend expense of $8.1 million, $8.8 million and $6.6 million for the years ended December 31, 2020, 2019, and 2018, respectively) 187,725 168,628 104,116 Interest and Dividend Expense, Consolidated funds (includes dividend expense of $0.7 million, $1.0 million and $1.9 million for the years ended December 31, 2020, 2019, and 2018, respectively) 2,064 4,602 6,534 Depreciation and Amortization 22,677 20,460 12,436 * Includes dividend revenue of $17.3 million, $9.2 million and $10.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. In addition, includes dividend revenue, consolidated funds, of $2.5 million, $3.0 million and $5.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Regulatory Requirements Regulat
Regulatory Requirements Regulatory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory [Abstract] | |
Computation of Net Capital under Securities and Exchange Commission Regulation | As of December 31, 2020, these regulated broker-dealers had regulatory net capital or financial resources, regulatory net capital requirements or minimum FCA or SFC requirement and excess as follows: Subsidiary Net Capital Minimum Net Capital Requirement Excess Net Capital (dollars in thousands) Cowen and Company $ 291,803 $ 3,594 $ 288,209 ATM Execution $ 3,857 $ 250 $ 3,607 Cowen Prime $ 18,553 $ 250 $ 18,303 Westminster $ 29,330 $ 250 $ 29,080 Cowen International Ltd $ 29,511 $ 22,699 $ 6,812 Cowen Execution Ltd $ 12,188 $ 3,331 $ 8,857 Cowen Asia $ 2,030 $ 387 $ 1,643 |
Guarantees and Off-Balance Sh_2
Guarantees and Off-Balance Sheet Arrangements Details (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020. Lender Contractual Amount Available Amount Maturity Date Description Pledge Lines (dollars in thousands) BMO Harris Bank $ 75,000 $ 75,000 None Secured Tri-Party Pledge Facility BMO Harris Bank 150,000 150,000 None Secured Depository Trust Company Pledge Line Total 225,000 225,000 Spike Line BMO Harris Bank 70,000 70,000 August 20, 2021 Unsecured committed spike line facility to cover short term increases in National Securities Clearing Corporation margin deposit requirements Revolving Credit Facility BMO Harris Bank 25,000 25,000 December 2, 2021 Unsecured Corporate Revolver Total Credit Lines $ 320,000 $ 320,000 |
Organization and Business (Deta
Organization and Business (Details) | 12 Months Ended |
Dec. 31, 2020divisionsegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | segment | 2 |
Number of divisions | division | 4 |
Significant Accounting Polici_4
Significant Accounting Policies - Annual (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)cowenfund | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Organization [Line Items] | ||||
Operating lease right-of-use assets | $ 78,241 | $ 92,852 | $ 103,700 | |
Operating lease liabilities | 82,735 | 97,581 | $ 110,500 | |
Revenue from Contract with Customer, Excluding Assessed Tax | 1,338,501 | 797,386 | $ 793,332 | |
Fees receivable | 160,349 | 126,358 | ||
Other investments | 255,027 | 185,722 | ||
Total Stockholders' Equity | 969,497 | 809,855 | ||
Management Fees | 47,515 | 32,608 | 29,658 | |
Investment banking | 769,486 | 375,025 | 357,222 | |
Incentive income | 592 | 1,547 | 3,117 | |
Revenues | 1,623,304 | 1,049,443 | 966,916 | |
Underwriting expenses | 22,565 | 15,067 | 15,282 | |
Professional, advisory and other fees | 59,990 | 48,385 | 40,957 | |
Service fees | 25,378 | 23,707 | 20,198 | |
Communications | 32,593 | 31,894 | 30,801 | |
Occupancy and equipment | 36,559 | 39,726 | 41,602 | |
Client services and business development | 20,526 | 50,371 | 35,927 | |
Other expenses | 33,195 | 23,114 | 22,014 | |
Costs and Expenses | 1,292,362 | 948,864 | 890,944 | |
Net gains (losses) on securities, derivatives and other investments | 175,877 | 80,409 | 68,043 | |
Net income (loss) attributable to Cowen Inc. common stockholders | 209,571 | 17,839 | 36,027 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 207,064 | 55,870 | 79,879 | |
Gain (Loss) on Investments (excluding broker dealer) | 161,699 | 74,284 | 54,032 | |
Increase (Decrease) in Fees Receivable | 33,991 | 7,143 | 6,401 | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 521,279 | (179,910) | 324,176 | |
Payments to Acquire Other Investments | 48,634 | 19,812 | 28,092 | |
Net Cash Provided by (Used in) Investing Activities | (20,822) | (47,627) | (17,882) | |
Liabilities | 6,659,078 | 3,866,575 | ||
Assets | 7,828,199 | 5,162,025 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Organization [Line Items] | ||||
Liabilities | 10,100 | 24,900 | ||
Assets | 325,500 | 685,400 | ||
Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,337,542 | 796,123 | 789,754 | |
Management Fees | 46,556 | 31,361 | 26,080 | |
Incentive income | 592 | 1,532 | 3,117 | |
Asset Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 959 | 1,263 | 3,578 | |
Management Fees | 959 | 1,248 | 3,578 | |
Incentive income | $ 0 | 15 | 0 | |
Telephone and computer equipment | Minimum | ||||
Organization [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Telephone and computer equipment | Maximum | ||||
Organization [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Proprietary software | Minimum | ||||
Organization [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Proprietary software | Maximum | ||||
Organization [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 4 years | |||
Furniture and Fixtures | ||||
Organization [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Hedge Funds | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 2.00% | |||
During investment period | Minimum | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 1.00% | |||
During investment period | Maximum | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 2.00% | |||
After investment period | Healthcare Royalty Partners | Minimum | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 1.00% | |||
After investment period | Healthcare Royalty Partners | Maximum | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 2.00% | |||
After investment period | Other Healthcare Royalty Partners | Minimum | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 0.20% | |||
After investment period | Other Healthcare Royalty Partners | Maximum | Operating Company | ||||
Organization [Line Items] | ||||
Asset Management Fees, Percent Fee | 1.00% | |||
Other investment companies | ||||
Organization [Line Items] | ||||
Number of funds, Consolidated | cowenfund | 3 | |||
Underwriting fees | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 427,670 | 211,666 | 215,723 | |
Strategic/financial advisory fees | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 190,958 | 79,208 | 81,733 | |
Placement and sales agent fees | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 133,171 | 69,070 | 46,888 | |
Expense reimbursements from clients | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 17,687 | 15,081 | 12,878 | |
Investment banking revenue | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 769,486 | 375,025 | 357,222 | |
Brokerage | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 520,908 | 388,205 | 403,335 | |
Commissions | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 485,398 | 356,668 | 366,090 | |
Trade conversion | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,753 | 12,531 | 17,061 | |
Equity and credit research fees | Operating Company | ||||
Organization [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 19,757 | $ 19,006 | $ 20,184 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2020 | Jan. 02, 2019 | |
Business Acquisition [Line Items] | |||||
Purchase of business | $ 5,647 | $ 48,581 | $ 0 | ||
Business combination, contingent consideration, liability | 37,953 | 30,896 | |||
Amortization of Intangible Assets | 13,000 | 13,100 | $ 5,000 | ||
Quarton | |||||
Business Acquisition [Line Items] | |||||
Total estimated purchase price | 103,000 | ||||
Purchase of business | 75,300 | ||||
Business combination, contingent consideration, liability | $ 40,000 | ||||
Other payments to acquire businesses | 600 | ||||
Business combination, contingency liability, retention of employee, bonus pool, maximum | $ 10,000 | ||||
Business combination, contingency liability, retention of employee, bonus pool, period | 5 years | ||||
Business combination, contingency liability, retention of employee, bonus pool, annual maximum payout | $ 2,500 | ||||
Intangible assets | 22,200 | ||||
Amortization of Intangible Assets | 8,900 | 8,900 | |||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 1,200 | ||||
MHT Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Total estimated purchase price | 9,900 | ||||
Purchase of business | 5,700 | ||||
Business combination, contingent consideration, liability | $ 4,200 | ||||
Intangible assets | $ 1,200 | ||||
Amortization of Intangible Assets | 100 | ||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 800 | ||||
Common Stock Class A | Quarton | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, equity interest issued or issuable, number of shares | 1,033,350 | ||||
Business acquisition, share price | $ 14.52 | ||||
Fair Value, Measurements, Recurring | Level 3 | Quarton | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability | 27,700 | ||||
Minimum | Quarton | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability | 10,000 | ||||
Maximum | Quarton | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability | $ 40,000 |
Acquisition (Preliminary Purcha
Acquisition (Preliminary Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 01, 2020 | Jan. 02, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||||
Operating lease right-of-use assets | $ 78,241 | $ 92,852 | $ 103,700 | |||
Operating lease liabilities | (82,735) | (97,581) | $ (110,500) | |||
Goodwill | 147,084 | 137,728 | $ 60,678 | |||
Quarton | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 22,200 | |||||
Total estimated purchase price | 103,000 | |||||
MHT Partners [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 1,200 | |||||
Total estimated purchase price | 9,900 | |||||
Scenario, Plan | Quarton | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 12,236 | |||||
Fees receivable | 7,269 | |||||
Fixed assets | 1,085 | |||||
Operating lease right-of-use assets | 3,200 | |||||
Intangible assets | 22,200 | |||||
Other assets | 667 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Compensation Payable | (637) | |||||
Operating lease liabilities | (3,200) | |||||
Due to related parties | 4,750 | |||||
Accounts payable, accrued expenses and other liabilities | 16,257 | |||||
Total identifiable net assets acquired and liabilities assumed | 21,813 | |||||
Goodwill | $ 81,150 | |||||
Total estimated purchase price | $ 102,963 | |||||
Scenario, Plan | MHT Partners [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Fixed assets | 101 | |||||
Operating lease right-of-use assets | 1,120 | |||||
Intangible assets | 1,224 | |||||
Other assets | 43 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Compensation Payable | (533) | |||||
Operating lease liabilities | (1,446) | |||||
Total identifiable net assets acquired and liabilities assumed | 509 | |||||
Goodwill | $ 9,356 | |||||
Total estimated purchase price | $ 9,865 |
Acquisition (Intangible Assets)
Acquisition (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2020 | Jan. 02, 2019 | |
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 62,287 | $ 61,595 | |||
Amortization of Intangible Assets | 13,000 | $ 13,100 | $ 5,000 | ||
Quarton | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 22,200 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 9 months 18 days | ||||
Amortization of Intangible Assets | $ 8,900 | $ 8,900 | |||
Intangible assets | 22,200 | ||||
MHT Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 1,224 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 2 months 1 day | ||||
Amortization of Intangible Assets | $ 100 | ||||
Intangible assets | 1,200 | ||||
Trade name | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 1,031 | $ 960 | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Trade name | Quarton | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 900 | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Trade name | MHT Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 131 | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 52,040 | $ 51,724 | |||
Customer relationships | Quarton | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 7,100 | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Customer relationships | MHT Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 749 | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Backlog | Quarton | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 12,600 | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||||
Proprietary software | Quarton | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 1,600 | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 344 | $ 400 | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Noncompete Agreements [Member] | MHT Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 344 | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Acquisition (Amortization Expen
Acquisition (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Amortization of Intangible Assets | $ 13,000 | $ 13,100 | $ 5,000 |
2021 | 6,828 | ||
2022 | 5,439 | ||
2023 | 3,432 | ||
2024 | 3,172 | ||
2025 | 2,148 | ||
Thereafter | 3,384 | ||
Finite-Lived Intangible Assets, Net | 24,403 | ||
Quarton | |||
Business Acquisition [Line Items] | |||
Amortization of Intangible Assets | 8,900 | $ 8,900 | |
MHT Partners [Member] | |||
Business Acquisition [Line Items] | |||
Amortization of Intangible Assets | 100 | ||
Scenario, Plan | Quarton | |||
Business Acquisition [Line Items] | |||
2021 | 2,608 | ||
2022 | 1,775 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Finite-Lived Intangible Assets, Net | 4,383 | ||
Scenario, Plan | MHT Partners [Member] | |||
Business Acquisition [Line Items] | |||
2021 | 300 | ||
2022 | 300 | ||
2023 | 289 | ||
2024 | 209 | ||
2025 | 52 | ||
Thereafter | 0 | ||
Finite-Lived Intangible Assets, Net | $ 1,150 |
Cash Collateral Pledged (Detail
Cash Collateral Pledged (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash collateral pledged | $ 110,743,000 | $ 6,563,000 | $ 6,318,000 |
Letter of credit, borrowing capacity | 320,000,000 | ||
Letters of Credit Outstanding, Amount | 0 | ||
Letter of Credit | Letter of Credit, NY Office 1, Expires April 2021 | |||
Letter of credit, borrowing capacity | 208,000 | ||
Letter of Credit | Letter of Credit, NY Office 3, Expires October 2022 | |||
Letter of credit, borrowing capacity | 1,424,000 | ||
Letter of Credit | Letter of Credit, NY Office 5, Expires November 2021 | |||
Letter of credit, borrowing capacity | 1,252,000 | ||
Letter of Credit | Letter of Credit, Boston Office, Expires March 2021 | |||
Letter of credit, borrowing capacity | 386,000 | ||
Letter of Credit | Letter of Credit, San Francisco Office, Expires October 2025 | |||
Letter of credit, borrowing capacity | 712,000 | ||
Facility Leases | |||
Cash collateral pledged | 3,982,000 | 4,600,000 | |
Collateral Reinsurance Agreement | |||
Cash collateral pledged | $ 106,800,000 | $ 2,000,000 |
Segregated Cash (Details)
Segregated Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segregated Cash [Abstract] | |||
Segregated cash | $ 185,141 | $ 107,328 | $ 176,647 |
Investments of Operating Enti_3
Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Owned at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Securities owned, at fair value | $ 2,001,602 | $ 1,633,552 | |
Estimate of Fair Value Measurement [Member] | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 8,800 | 8,400 | |
Common Stock | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | 1,770,451 | 1,546,484 | |
Preferred Stock | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | 69,358 | 12,656 | |
Warrants and Rights [Member] | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | 27,701 | 22,109 | |
Government Securities | |||
Investment Holdings [Line Items] | |||
Debt Securities, Trading | 19,721 | 15,916 | |
Corporate Bonds | |||
Investment Holdings [Line Items] | |||
Debt Securities, Trading | 86,503 | 25,500 | |
Convertible Bonds | |||
Investment Holdings [Line Items] | |||
Debt Securities, Trading | 6,040 | 2,500 | |
Loans | |||
Investment Holdings [Line Items] | |||
Debt Securities, Trading | [1] | 12,623 | 1,067 |
Trade Claims | |||
Investment Holdings [Line Items] | |||
Debt Securities, Trading | [1] | $ 9,205 | $ 7,320 |
[1] | The Company has elected the fair value option for securities owned, at fair value with a fair value of $8.8 million and $8.4 million, respectively, at December 31, 2020 and 2019. |
Investments Of Operating Enti_4
Investments Of Operating Entities And Consolidated Funds - Operating Entities - Receivable On And Payable For Derivative Contracts, At Fair Value (Details) | Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | |
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | $ 51,482,000 | $ 62,977,000 | |
Payable for derivative contracts, at fair value | 76,160,000 | 60,761,000 | |
Receivable on derivatives contracts, at fair value [Member] | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | 51,482,000 | 62,977,000 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1],[2] | (62,269,000) | (3,240,000) |
Payable for derivatives contracts, at fair value [Member] | |||
Derivative [Line Items] | |||
Payable for derivative contracts, at fair value | 76,160,000 | 60,761,000 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | [2] | (37,033,000) | (3,240,000) |
Futures | |||
Derivative [Line Items] | |||
Derivative Liability, Notional Amount | 0 | 10,224,000 | |
Payable for derivative contracts, at fair value | 0 | 217,000 | |
Currency Forwards | |||
Derivative [Line Items] | |||
Derivative Asset, Notional Amount | 4,902,000 | 0 | |
Receivable on derivative contracts, at fair value | 15,000 | 0 | |
Derivative Liability, Notional Amount | 123,346,000 | 77,790,000 | |
Payable for derivative contracts, at fair value | 3,067,000 | 851,000 | |
Swaps | |||
Derivative [Line Items] | |||
Derivative Asset, Notional Amount | 944,544,000 | 383,752,000 | |
Receivable on derivative contracts, at fair value | 64,634,000 | 6,151,000 | |
Derivative Liability, Notional Amount | 896,863,000 | 607,717,000 | |
Payable for derivative contracts, at fair value | $ 43,560,000 | $ 26,409,000 | |
Options | |||
Derivative [Line Items] | |||
Derivative Asset, Number of Instruments Held | contract | [3] | 371,188 | 550,188 |
Receivable on derivative contracts, at fair value | [3] | $ 49,102,000 | $ 60,066,000 |
Option | |||
Derivative [Line Items] | |||
Derivative Liability, Number of Instruments Held | contract | [3] | 198,320 | 306,306 |
Payable for derivative contracts, at fair value | [3] | $ 66,566,000 | $ 36,524,000 |
[1] | Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2g for further information on offsetting of derivative financial instruments. | ||
[2] | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred | ||
[3] | Includes the volume of contracts for index, equity, commodity future and cash conversion options. |
Investments Of Operating Enti_5
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, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | $ 51,482 | $ 62,977 | |
Payable for derivative contracts, at fair value | 76,160 | 60,761 | |
Receivable on derivatives contracts, at fair value [Member] | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 113,751 | 66,217 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1],[2] | 62,269 | 3,240 |
Receivable on derivative contracts, at fair value | 51,482 | 62,977 | |
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | [2] | 691 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | [2] | 169 | 2,911 |
Derivative asset, net of offset | 50,622 | 60,066 | |
Payable for derivatives contracts, at fair value [Member] | |||
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 113,193 | 64,001 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | [2] | 37,033 | 3,240 |
Payable for derivative contracts, at fair value | 76,160 | 60,761 | |
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | [2] | 691 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | [2] | 3,174 | 24,020 |
Derivative Liability, net of offset | $ 72,295 | $ 36,741 | |
[1] | Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2g for further information on offsetting of derivative financial instruments. | ||
[2] | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred |
Investments Of Operating Enti_6
Investments Of Operating Entities And Consolidated Funds - Operating Entities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income [Member] | |||
Derivative [Line Items] | |||
Realized and unrealized gains/(losses) related to derivatives trading activities | $ (146.9) | $ (13) | $ 14.3 |
Investments Of Operating Enti_7
Investments Of Operating Entities And Consolidated Funds - Operating Entities - Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Other investments | $ 255,027 | $ 185,722 | |
Portfolio Funds | |||
Investment Holdings [Line Items] | |||
Other investments | [1] | 133,454 | 114,504 |
Carried interest | |||
Investment Holdings [Line Items] | |||
Other investments | [1] | 82,892 | 30,360 |
Equity Method Investments | |||
Investment Holdings [Line Items] | |||
Other investments | [1] | $ 38,681 | $ 40,858 |
[1] | In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. |
Investments Of Operating Enti_8
Investments Of Operating Entities And Consolidated Funds - Operating Entities - Portfolio Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | ||||
Investment Holdings [Line Items] | |||||
Other investments | $ 255,027 | $ 185,722 | |||
Portfolio Funds | |||||
Investment Holdings [Line Items] | |||||
Other investments | [1] | 133,454 | 114,504 | ||
Starboard Value and Opportunity Fund LP | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [2],[3] | $ 42,519 | 37,895 | ||
Required notice period, withdrawal | 90 days | ||||
Formation 8 Partners Fund I LP | Portfolio Funds | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4] | $ 31,894 | 33,613 | ||
Cowen Healthcare Investments II LP | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | 26,186 | [3],[5] | 14,652 | ||
Lagunita Biosciences, LLC | Portfolio Funds | |||||
Investment Holdings [Line Items] | |||||
Other investments | [6] | 3,850 | 4,802 | ||
Eclipse Ventures Fund I, L.P. | Portfolio Funds | |||||
Investment Holdings [Line Items] | |||||
Other investments | [7] | 4,457 | 3,960 | ||
Healthcare Royalty Partners II | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[8] | 1,588 | 1,781 | ||
RCGLongview Debt Fund V, L.P. | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[9] | 0 | 1,732 | ||
Healthcare Royalty Partners | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[8] | 1,072 | 1,326 | ||
Starboard Leaders Fund LP | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[10] | $ 2,020 | 1,560 | ||
Unfunded Commitment cancellation | 30 days | ||||
Elipse SPV I,LP | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [11] | $ 1,708 | [3] | 1,447 | |
Merger Fund | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | 2,197 | [3],[12] | 0 | ||
Triartisan ES Partners, LLC | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [13] | 1,657 | 1,082 | ||
Cowen Healthcare Investments III LP | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[5] | 5,714 | 1,398 | ||
Triartisan PFC Partners, LLC | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[14] | 691 | 909 | ||
Starboard Value and Opportunity Fund Ltd | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3] | 2,364 | [9] | 0 | [2] |
Eclipse Venture Fund II, L.P. | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [7] | 1,733 | 1,330 | ||
Eclipse Continuity Fund I, L.P. | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [7] | 1,101 | 823 | ||
Difesa Partners LP [Member] | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[15] | 848 | 508 | ||
BDC Fund I Coinvest 1, L.P. | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | 1,250 | [3],[16] | 0 | ||
Other Private Investment | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[17] | 326 | 4,448 | ||
Other Funds | Portfolio Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[18] | $ 279 | $ 1,238 | ||
[1] | In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. | ||||
[2] | Starboard Value and Opportunity Fund LP and Starboard Value and Opportunity Fund Ltd permits quarterly withdrawals upon 90 days' notice. | ||||
[3] | These Portfolio Funds are affiliates of the Company. | ||||
[4] | 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. | ||||
[5] | Cowen Healthcare Investments II LP and Cowen Healthcare Investments III 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 | ||||
[6] | Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. | ||||
[7] | 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. | ||||
[8] | 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. | ||||
[9] | RCG Longview Debt Fund V, L.P. is a real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated. | ||||
[10] | 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. | ||||
[11] | 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. | ||||
[12] | Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice. | ||||
[13] | TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated. | ||||
[14] | TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated. | ||||
[15] | Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice. | ||||
[16] | 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. | ||||
[17] | Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy. | ||||
[18] | 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. |
Investments of Operating Enti_9
Investments of Operating Entities and Consolidated Funds - Operating Entities - Carried Interest (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Other investments | $ 255,027 | $ 185,722 | |
Carried interest | |||
Investment Holdings [Line Items] | |||
Other investments | [1] | 82,892 | 30,360 |
Cowen Healthcare Investments II LP | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 62,112 | 23,759 | |
Cowen Healthcare Investments III LP | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 11,520 | 0 | |
Triartisan TGIF Partners LLC | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 3,361 | 0 | |
Triartisan ES Partners, LLC | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 3,152 | 0 | |
Triartisan PFC Partners, LLC | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 1,455 | 0 | |
Ramius Multi-Strategy Fund LP | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 734 | 0 | |
Merger Fund | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 368 | 0 | |
Other Private Investment | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | [2] | 0 | 4,737 |
RCG IO Renergys Sarl | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | 190 | 1,251 | |
Ramius Mutli-Strategy Fund LP | Carried interest | Affiliated Entity | |||
Investment Holdings [Line Items] | |||
Other investments | $ 0 | $ 613 | |
[1] | In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. | ||
[2] | Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy. |
Investments of Operating Ent_10
Investments of Operating Entities and Consolidated Funds - Operating Entities - Equity Method Investment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Surf House Ocean Views Holdings, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | ||
Other than Temporary Impairment Losses, Investments | $ 11,300 | $ 2,600 | $ 7,100 |
Net Gains (Losses) on Securities, Derivatives and Other Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments | $ 18,900 | $ 24,600 | $ 6,400 |
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 15.00% | ||
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 55.00% |
Investments of Operating Ent_11
Investments of Operating Entities and Consolidated Funds - Operating Entities - Equity Method Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 38,681 | $ 40,858 |
Starboard Value LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 31,528 | 24,292 |
Surf House Ocean Views Holdings, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 0 | 7,804 |
Healthcare Royalty GP III, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 2,213 | 2,230 |
RCG Longview Debt Fund V Partners, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 0 | 2,889 |
RCG Longview Management, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 268 | 583 |
Healthcare Royalty GP, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 920 | 108 |
Healthcare Royalty GP II, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 269 | 302 |
RCG Longview Debt Fund IV Management, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 331 | 331 |
RCG Longview Equity Management, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 105 | 105 |
HCR Stafford Fund GP, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 1,025 | 880 |
Liberty Harbor North | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 222 | 292 |
Equity Method Investee, Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 1,800 | $ 1,042 |
Investments of Operating Ent_12
Investments of Operating Entities and Consolidated Funds - Operating Entities - Securities Sold, Not Yet Purchased (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 728,115,000 | $ 451,836,000 |
Common Stock | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 699,894,000 | 425,448,000 |
Corporate Bonds | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 11,358,000 | 5,933,000 |
US Government Debt Securities | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 1,500,000 | 1,950,000 |
Preferred Stock | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | 6,589,000 | 3,686,000 |
Warrants and Rights [Member] | ||
Investments Sold, Not yet Purchased [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 8,774,000 | $ 14,819,000 |
Investments of Operating Ent_13
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 ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities borrowed | $ 1,908,187,000 | $ 754,441,000 | |
Securities Borrowed, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | [1] | 0 | 0 |
Securities Borrowed | 1,908,187,000 | 754,441,000 | |
Securities borrowed, additional amounts, asset | 0 | 0 | |
Securities Borrowed, Not Offset, Policy Election Deduction | 1,809,399,000 | 751,913,000 | |
Securities Borrowed, Collateral, Obligation to Return Cash | [2] | 0 | 0 |
Securities Borrowed, Amount Offset Against Collateral | 98,788,000 | 2,528,000 | |
Securities Loaned | 2,476,414,000 | 1,601,866,000 | |
Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | [1] | 0 | 0 |
Securities Loaned, Gross amounts recognized | 2,476,414,000 | 1,601,866,000 | |
Securities Loaned, Additional Amounts Available | 0 | 0 | |
Securities Loaned, Not Offset, Policy Election Deduction | 2,383,342,000 | 1,585,036,000 | |
Securities Loaned, Collateral, Right to Reclaim Cash | [2] | 0 | 0 |
Securities Loaned, Amount Offset Against Collateral | 93,072,000 | 16,830,000 | |
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Securities Sold under Agreements to Repurchase | 5,036,000 | 23,244,000 | |
Securities sold under agreements to repurchase, additional amounts | 0 | 0 | |
Securities sold under agreements to repurchase, Fair value | 5,544,000 | 27,384,000 | |
Securities borrowed, cash collateral pledged | 0 | ||
Securities Loaned, Net amounts | (508,000) | (4,140,000) | |
Securities Purchased under Agreements to Resell | 191,000 | 0 | |
Securities Sold under Agreements to Repurchase, Gross | 0 | ||
Securities purchased under agreements to resell, additional amounts | 0 | ||
Securities Purchased under Agreements to Resell, Fair Value of Collateral | 204,000 | ||
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Securities | (13,000) | ||
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | $ 0 | $ 0 | |
[1] | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. | ||
[2] | Includes the amount of cash collateral held/posted. |
Investments of Operating Ent_14
Investments of Operating Entities and Consolidated Funds - Operating Entities - Gross Obligations For Securities Loaned And Securities Sold Under Agreements To Repurchase (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | $ 2,476,414,000 | $ 1,601,866,000 |
Securities sold, not yet purchased, at fair value | 728,115,000 | 451,836,000 |
Common stock | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 2,232,687,000 | 1,343,478,000 |
Common stock | Open and Overnight | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 2,232,687,000 | 1,343,478,000 |
Common stock | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Common stock | 31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Common stock | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Corporate Bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 243,726,000 | 258,388,000 |
Securities sold, not yet purchased, at fair value | 5,036,000 | |
Corporate Bonds | Open and Overnight | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 243,726,000 | 258,388,000 |
Securities sold, not yet purchased, at fair value | 0 | |
Corporate Bonds | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities sold, not yet purchased, at fair value | 0 | |
Corporate Bonds | 31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Common stock | 0 | 0 |
Securities sold, not yet purchased, at fair value | 5,036,000 | |
Corporate Bonds | 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 | |
Common Stock | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold, not yet purchased, at fair value | 23,244,000 | |
Common Stock | Open and Overnight | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
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] | ||
Securities sold, not yet purchased, at fair value | 0 | |
Common Stock | 31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold, not yet purchased, at fair value | 23,244,000 | |
Common Stock | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 0 |
Investments of Operating Ent_15
Investments of Operating Entities and Consolidated Funds - Operating Entities - Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 7,828,199 | $ 5,162,025 |
Liabilities | 6,659,078 | 3,866,575 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 8,000,000 | 6,100,000 |
Liabilities | 1,300,000 | 617,500 |
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure | 210,700 | 241,200 |
Maximum exposure regarding nonconsolidated variable interest entities | $ 326,000 | $ 261,700 |
Investments of Operating Ent_16
Investments of Operating Entities and Consolidated Funds - Consolidated Funds - Securities Owned at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
Securities owned, at fair value | $ 10,622 | $ 375,278 |
Preferred Stock | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 0 | 4,393 |
Common Stock | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 4,816 | 200,306 |
Government Securities | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 0 | 161,607 |
Corporate Bonds | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 0 | 3,405 |
Warrants and Rights [Member] | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | $ 5,806 | $ 5,567 |
Investments Of Operating Ent_17
Investments Of Operating Entities And Consolidated Funds - Consolidated Funds - Receivable On And Payable For Derivative Contracts, At Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Receivable on derivative contracts, at fair value, Consolidated Funds | $ 0 | $ 5,833 |
Payable for derivative contracts, at fair value, Consolidated Funds | 0 | 4,769 |
Currency Forwards | ||
Derivative [Line Items] | ||
Receivable on derivative contracts, at fair value, Consolidated Funds | 0 | 3,302 |
Payable for derivative contracts, at fair value, Consolidated Funds | 0 | 88 |
Equity Swap | ||
Derivative [Line Items] | ||
Receivable on derivative contracts, at fair value, Consolidated Funds | 0 | 927 |
Payable for derivative contracts, at fair value, Consolidated Funds | 0 | 3,931 |
Options | ||
Derivative [Line Items] | ||
Receivable on derivative contracts, at fair value, Consolidated Funds | 0 | 1,604 |
Payable for derivative contracts, at fair value, Consolidated Funds | $ 0 | $ 750 |
Investments Of Operating Ent_18
Investments Of Operating Entities And Consolidated Funds - Consolidated Funds - Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | $ 192,670 | $ 175,769 |
Enterprise LP [Member] | ||
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | 104,475 | 99,153 |
Merger Fund | ||
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | 0 | 76,616 |
Cowen Sustainable Investments I LP | ||
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | $ 88,195 | $ 0 |
Investments Of Operating Ent_19
Investments Of Operating Entities And Consolidated Funds - Consolidated Funds - Indirect Concentration of the Underlying Investments Held by Consolidated Funds (Details) - Equity Securities - Linkem - ITALY - Wireless Broadband - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
Percentage of Stockholders' Equity | 9.07% | 9.53% |
Market Value | $ 87,944 | $ 77,142 |
Investments of Operating Ent_20
Investments of Operating Entities and Consolidated Funds - Consolidated Funds - Securities Owned and Sold By Merger Master (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
Securities owned, at fair value | $ 2,001,602,000 | $ 1,633,552,000 |
Securities sold, not yet purchased, at fair value | 728,115,000 | 451,836,000 |
Portfolio Funds, Consolidated Funds | 192,670,000 | 175,769,000 |
Merger Master | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 79,353,000 | |
Securities sold, not yet purchased, at fair value | 68,150,000 | |
Merger Fund | ||
Investment Holdings [Line Items] | ||
Portfolio Funds, Consolidated Funds | 0 | 76,616,000 |
Common Stock | ||
Investment Holdings [Line Items] | ||
Securities sold, not yet purchased, at fair value | 699,894,000 | 425,448,000 |
Common Stock | Merger Master | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 76,531,000 | |
Securities sold, not yet purchased, at fair value | 29,623,000 | |
Warrants and Rights [Member] | ||
Investment Holdings [Line Items] | ||
Securities sold, not yet purchased, at fair value | 8,774,000 | 14,819,000 |
Warrants and Rights [Member] | Merger Master | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 748,000 | |
Corporate Bonds | ||
Investment Holdings [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 11,358,000 | 5,933,000 |
Corporate Bonds | Merger Master | ||
Investment Holdings [Line Items] | ||
Securities owned, at fair value | 2,074,000 | |
Exchange Traded Funds | Merger Master | ||
Investment Holdings [Line Items] | ||
Securities sold, not yet purchased, at fair value | $ 38,527,000 |
Investments of Operating Ent_21
Investments of Operating Entities and Consolidated Funds - Consolidated Funds - Receivable on/Payable For Derivative Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | $ 51,482 | $ 62,977 | |
Payable for derivative contracts, at fair value | 76,160 | 60,761 | |
Merger Master | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | 2,453 | ||
Payable for derivative contracts, at fair value | 1,426 | ||
Options | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | [1] | 49,102 | 60,066 |
Options | Merger Master | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | 2,047 | ||
Option | |||
Derivative [Line Items] | |||
Payable for derivative contracts, at fair value | [1] | 66,566 | 36,524 |
Option | Merger Master | |||
Derivative [Line Items] | |||
Payable for derivative contracts, at fair value | 1,158 | ||
Currency Forwards | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | 15 | 0 | |
Payable for derivative contracts, at fair value | 3,067 | 851 | |
Swaps | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | 64,634 | 6,151 | |
Payable for derivative contracts, at fair value | $ 43,560 | 26,409 | |
Swaps | Merger Master | |||
Derivative [Line Items] | |||
Receivable on derivative contracts, at fair value | 406 | ||
Payable for derivative contracts, at fair value | $ 268 | ||
[1] | Includes the volume of contracts for index, equity, commodity future and cash conversion options. |
Fair Value Measurements for O_3
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | $ 51,482 | $ 62,977 | ||||
Other investments | 255,027 | 185,722 | ||||
Other Investments, Consolidated Funds | 192,670 | 175,769 | ||||
Investments | 2,511,403 | 2,439,131 | ||||
Securities sold, not yet purchased, at fair value | 728,115 | 451,836 | ||||
Securities sold, not yet purchased, at fair value | 728,115 | 451,836 | ||||
Payable for derivative contracts, at fair value | 76,160 | 60,761 | ||||
Contingent Consideration Payable | 37,953 | 30,896 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 10,100 | 1,300 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 35,100 | 40,000 | ||||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Balance Liability Value | 42,837 | 36,766 | ||||
Corporate Bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Balance Liability Value | 704 | 1,000 | $ 0 | |||
Contingent liability payable | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Balance Liability Value | 36,718 | 30,896 | $ 3,070 | |||
Futures | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 0 | 217 | ||||
Swaps | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 64,634 | 6,151 | ||||
Payable for derivative contracts, at fair value | 43,560 | 26,409 | ||||
Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | [1] | 49,102 | 60,066 | |||
Portfolio Funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other investments | [2] | 133,454 | 114,504 | |||
Other Investments, Consolidated Funds | [2] | 192,670 | 175,769 | |||
Carried interest | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other investments | [2] | 82,892 | 30,360 | |||
Equity Method Investments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other investments | [2] | 38,681 | 40,858 | |||
Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | 2,063,706 | 2,077,640 | ||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 840,993 | 548,262 | ||||
Fair Value, Measurements, Recurring | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | 1,847,389 | 1,993,268 | ||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 777,908 | 478,524 | ||||
Fair Value, Measurements, Recurring | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | 151,125 | 39,180 | ||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 57,281 | 36,212 | ||||
Fair Value, Measurements, Recurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | 127,461 | 48,432 | ||||
Investment Sold, Not yet Purchased and Derivative Liability, at Fair Value | 42,837 | 36,766 | ||||
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 | 699,894 | 425,448 | ||||
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 | 699,894 | 425,448 | ||||
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 | 11,358 | 5,933 | ||||
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 | 10,654 | 4,933 | ||||
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 | 704 | 1,000 | ||||
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 | 6,589 | 3,686 | ||||
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 | 6,589 | 3,686 | ||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Warrants and Rights [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 8,774 | 14,819 | ||||
Fair Value, Measurements, Recurring | Warrants and Rights [Member] | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 8,774 | 14,819 | ||||
Fair Value, Measurements, Recurring | Warrants and Rights [Member] | 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 [Member] | 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 | 36,718 | [3] | 30,896 | [4] | ||
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 | [3] | 0 | [4] | ||
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 | [3] | 0 | [4] | ||
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 | [4] | 30,896 | ||||
Fair Value, Measurements, Recurring | Futures | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 217 | |||||
Fair Value, Measurements, Recurring | Futures | Options | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 217 | |||||
Fair Value, Measurements, Recurring | Futures | Options | 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 | Options | 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 | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 3,067 | 851 | ||||
Fair Value, Measurements, Recurring | Currency forward | Options | 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 | Options | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 3,067 | 851 | ||||
Fair Value, Measurements, Recurring | Currency forward | Options | 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 | Swaps | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 6,527 | 23,169 | ||||
Fair Value, Measurements, Recurring | Swaps | Options | 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 | Swaps | Options | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 43,560 | 26,409 | ||||
Fair Value, Measurements, Recurring | Swaps | Options | 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] | (37,033) | (3,240) | |||
Fair Value, Measurements, Recurring | Options | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 66,566 | 36,524 | ||||
Fair Value, Measurements, Recurring | Options | Options | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 62,651 | 33,604 | ||||
Fair Value, Measurements, Recurring | Options | Options | 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 | Options | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 3,915 | 2,920 | ||||
Fair Value, Measurements, Recurring | Government Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 19,721 | 15,916 | ||||
Fair Value, Measurements, Recurring | Government Securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 19,721 | 15,916 | ||||
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 | 69,358 | 12,656 | ||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 9,391 | 4,821 | ||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Preferred Stock | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 59,967 | 7,835 | ||||
Fair Value, Measurements, Recurring | Common Stock | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 1,770,451 | 1,546,484 | ||||
Fair Value, Measurements, Recurring | Common Stock | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 1,746,407 | 1,527,769 | ||||
Fair Value, Measurements, Recurring | Common Stock | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 108 | 1,249 | ||||
Fair Value, Measurements, Recurring | Common Stock | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 23,936 | 17,466 | ||||
Fair Value, Measurements, Recurring | Convertible Bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 6,040 | 2,500 | ||||
Fair Value, Measurements, Recurring | Convertible Bonds | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Convertible Bonds | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Convertible Bonds | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 6,040 | 2,500 | ||||
Fair Value, Measurements, Recurring | Corporate Bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 86,503 | 25,500 | ||||
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 | 86,368 | 23,079 | ||||
Fair Value, Measurements, Recurring | Corporate Bonds | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 135 | 2,421 | ||||
Fair Value, Measurements, Recurring | Trade Claims | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 9,205 | 7,320 | ||||
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 | 9,205 | 7,320 | ||||
Fair Value, Measurements, Recurring | Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 12,623 | 1,067 | ||||
Fair Value, Measurements, Recurring | 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 | Loans | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | 1,067 | ||||
Fair Value, Measurements, Recurring | Loans | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 12,623 | 0 | ||||
Fair Value, Measurements, Recurring | Warrants and Rights [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 27,701 | 22,109 | ||||
Fair Value, Measurements, Recurring | Warrants and Rights [Member] | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 21,154 | 21,515 | ||||
Fair Value, Measurements, Recurring | Warrants and Rights [Member] | 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 [Member] | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 6,547 | 594 | ||||
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 | 15 | |||||
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 | |||||
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 | 15 | |||||
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 | |||||
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 2,365 | 2,911 | ||||
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 64,634 | 6,151 | ||||
Fair Value, Measurements, Recurring | Derivative Assets | Swaps | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 0 | 0 | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [5] | (62,269) | (3,240) | |||
Fair Value, Measurements, Recurring | Derivative Assets | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 49,102 | 60,066 | ||||
Fair Value, Measurements, Recurring | Derivative Assets | Options | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 48,851 | 59,730 | ||||
Fair Value, Measurements, Recurring | Derivative Assets | Options | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Derivative Assets | Options | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 251 | 336 | ||||
Fair Value, Measurements, Recurring | Operating Companies [Member] | Government Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 1,500 | 1,950 | ||||
Fair Value, Measurements, Recurring | Operating Companies [Member] | Government Securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Operating Companies [Member] | Government Securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Operating Companies [Member] | Government Securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities sold, not yet purchased, at fair value | 1,500 | 1,950 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 88 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options | 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 | Consolidated Funds | Currency forward | Options | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 88 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Currency forward | Options | 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 | Consolidated Funds | Options | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 750 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Options | Options | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 750 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Options | Options | 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 | Consolidated Funds | Options | Options | 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 | Consolidated Funds | Equity Swap | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 3,931 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Equity Swap | Options | 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 | Consolidated Funds | Equity Swap | Options | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payable for derivative contracts, at fair value | 3,931 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Equity Swap | Options | 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 | Consolidated Funds | Government Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 161,607 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Government Securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 161,607 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Government Securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Government Securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Preferred Stock | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 4,393 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Preferred Stock | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Preferred Stock | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Preferred Stock | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 4,393 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Common Stock | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 4,816 | 200,306 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Common Stock | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 1,865 | 200,306 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Common Stock | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Common Stock | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 2,951 | 0 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate Bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 3,405 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate Bonds | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate Bonds | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 3,405 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate Bonds | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt Securities, Trading | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Warrants and Rights [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 5,806 | 5,567 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Warrants and Rights [Member] | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Warrants and Rights [Member] | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Warrants and Rights [Member] | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading Securities, Equity | $ 5,806 | 5,567 | ||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 3,302 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 3,302 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Currency forward | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 1,604 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 1,604 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Options | Level 2 | ||||||
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 | Consolidated Funds | Derivative Assets | Options | 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 | Consolidated Funds | Derivative Assets | Equity Swap | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 927 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 0 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | 927 | |||||
Fair Value, Measurements, Recurring | Consolidated Funds | Derivative Assets | Equity Swap | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Receivable on derivative contracts, at fair value | $ 0 | |||||
[1] | Includes the volume of contracts for index, equity, commodity future and cash conversion options. | |||||
[2] | 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. | |||||
[3] | In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 and the fourth quarter of 2020, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2020 and December 31, 2023. For both the Quarton Acquisition and the MHT Acquisition, 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 $35.1 million. The undiscounted amounts for the MHT Acquisition have no minimum or maximum as it is calculated based on revenue. | |||||
[4] | In accordance with the terms of the purchase agreements for acquisitions that closed during the second quarter of 2016 and the first quarter of 2019, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2019 and December 31, 2023, respectively. For the acquisition that closed during 2016, the Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. For the acquisition that closed during 2019, the Company estimated the contingent consideration liability using the present value of the Monte Carlo simulated revenue. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2019 can range from $1.3 million to $40.0 million. | |||||
[5] | Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2g for further information on offsetting of derivative financial instruments. |
Fair Value Measurements for O_4
Fair Value Measurements for Operating Entities and Consolidated Funds - Unobservable Input Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Preferred Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | $ 59,967 | $ 7,835 | $ 5,168 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 45,530 | [1] | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 1,653 | [2] | 1,000 | [3] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 5,891 | 3,513 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 4,993 | 1,270 | ||||
Realized and unrealized gains (losses), asset | 7,357 | 1,424 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 10,846 | 2,285 | |||
Common Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 23,936 | 17,466 | 9,850 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 102 | [5] | 10,242 | [6],[7] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 29 | [8],[9] | 3 | [10] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 7,288 | 11,477 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 3,818 | 11,002 | ||||
Realized and unrealized gains (losses), asset | 2,927 | (3,098) | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 1,990 | (3,098) | |||
Convertible Bonds | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 6,040 | 2,500 | 3,000 | |||
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 | 4,826 | [2],[3] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 3,787 | 11,354 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 1,050 | 7,072 | ||||
Realized and unrealized gains (losses), asset | 803 | 44 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 803 | (25) | |||
Corporate Bonds | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 135 | 2,421 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 4 | [7] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 312 | [2] | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 666 | 2,811 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 2,432 | 533 | ||||
Realized and unrealized gains (losses), asset | (208) | 139 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | (180) | 140 | |||
Options | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 251 | 336 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 330 | [6] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 102 | [5] | 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 | 17 | 6 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | (1) | 6 | |||
Warrants and Rights [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 6,547 | 594 | 1,666 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 4,528 | [1],[8] | 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 | 189 | ||||
Realized and unrealized gains (losses), asset | 1,425 | (883) | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 1,425 | 31 | |||
Trade Claims | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 9,205 | 7,320 | 5,543 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 1,044 | [8],[9] | 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 | 4,774 | 7,205 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 2,944 | 5,506 | ||||
Realized and unrealized gains (losses), asset | (989) | 78 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | (1,013) | 76 | |||
Loans | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 12,623 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | [1] | 11,149 | ||||
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 | 245 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | |||||
Realized and unrealized gains (losses), asset | 1,229 | |||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 1,229 | ||||
Consolidated Funds | Preferred Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 0 | 4,393 | 24,314 | |||
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 | 4,000 | [11] | 19,929 | [3] | ||
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 | (393) | 8 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 0 | 0 | |||
Consolidated Funds | Common Stock | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 2,951 | 0 | 94 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 4,000 | [11] | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 100,000 | [12] | 94 | [3] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 100,000 | 407 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 958 | ||||
Realized and unrealized gains (losses), asset | (1,049) | 551 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | (1,049) | 0 | |||
Consolidated Funds | Convertible Bonds | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 0 | 0 | ||||
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 | 76,114 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 75,000 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | |||||
Realized and unrealized gains (losses), asset | 1,114 | |||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 0 | ||||
Consolidated Funds | Warrants and Rights [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Asset Value | 5,806 | 5,567 | 5,279 | |||
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 | 1,758 | ||||
Realized and unrealized gains (losses), asset | 239 | 2,046 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [4] | 239 | 289 | |||
Option | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Liability Value | 3,915 | 2,920 | 2,096 | |||
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 | 4 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (995) | (828) | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [4] | 995 | 828 | |||
Contingent liability payable | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Liability Value | 36,718 | 30,896 | 3,070 | |||
Liability, Transfers In | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 1,235 | [13] | 0 | |||
Liability, Purchases | 4,218 | [14] | 27,700 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales | 5,653 | 1,234 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (8,492) | (1,360) | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [4] | 8,492 | 1,360 | |||
Corporate Bonds | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Liability Value | 704 | 1,000 | 0 | |||
Liability, Transfers In | 0 | 2,525 | [7] | |||
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 | (296) | (1,525) | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [4] | (248) | (1,525) | |||
US Government Debt Securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance Liability Value | 1,500 | 1,950 | $ 0 | |||
Liability, Transfers In | 0 | 4,681 | [7] | |||
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 | (450) | (2,731) | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | [4] | $ (450) | $ (2,731) | |||
[1] | The Company consolidated an operating entity which holds preferred stock, loans and warrants. | |||||
[2] | The investments were converted to common stock. | |||||
[3] | The entity in which the Company is invested completed an initial public offering | |||||
[4] | Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations | |||||
[5] | The options expired and converted into common stock. | |||||
[6] | The holding Company which held common stock and options was liquidated. | |||||
[7] | The investments had a change of valuation methodology due to increased activity in foreign market. | |||||
[8] | The security stopped trading on an open market. | |||||
[9] | The transfers between level 1 and level 3 are due to the change in the availability of observable inputs. | |||||
[10] | Shares of common stock were exchanged for liquid warrants and rights of an acquired company. | |||||
[11] | The investment was involved in a reverse merger and preferred stock was converted to common shares. | |||||
[12] | The Company deconsolidated an investment fund. | |||||
[13] | The contingent liability reached the end of its earnout period and is now valued based on actual cash payout. | |||||
[14] | See Note 3 (MHT Acquisition) for contingent consideration recorded. |
Fair Value Measurements for O_5
Fair Value Measurements for Operating Entities and Consolidated Funds - Fair Value Inputs, Unobservable Inputs, Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Contingent liability payable | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | $ 36,718 | $ 30,896 | $ 3,070 | ||
Options | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 251 | 336 | 0 | ||
Trade Claims | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 9,205 | 7,320 | 5,543 | ||
Warrants and Rights [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 6,547 | 594 | 1,666 | ||
Corporate Bonds | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 135 | 2,421 | $ 0 | ||
Level 3 | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | 127,461 | 48,432 | |||
Balance Liability Value | 42,837 | 36,766 | |||
Level 3 | Options | Valuation Technique, Option Pricing Model | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | 3,915 | ||||
Level 3 | Contingent liability payable | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | $ 36,718 | [1] | $ 30,896 | ||
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 15.00% | 15.00% | |||
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 9.00% | 15.00% | |||
Level 3 | Contingent liability payable | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 16.00% | 22.00% | |||
Level 3 | Contingent liability payable | Monte Carlo [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 17.00% | ||||
Weighted average percent Fair Value technique | 22.00% | 17.00% | |||
Level 3 | Contingent liability payable | Monte Carlo [Member] | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 22.00% | ||||
Level 3 | Contingent liability payable | Monte Carlo [Member] | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 24.00% | ||||
Level 3 | Other Liabilities [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Liability Value | $ 2,204 | [2] | $ 2,950 | ||
Level 3 | Common and Preferred Stock | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 65,735 | $ 10,876 | |||
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 11.00% | 10.40% | |||
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 10.00% | 8.00% | |||
Level 3 | Common and Preferred Stock | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 12.00% | 11.25% | |||
Level 3 | Common and Preferred Stock | Valuation, Market Approach | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 650.00% | 675.00% | |||
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 625.00% | 650.00% | |||
Level 3 | Common and Preferred Stock | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 675.00% | 700.00% | |||
Level 3 | Options | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 251 | $ 336 | |||
Level 3 | Options | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 11.00% | 10.50% | |||
Level 3 | Options | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 10.00% | 9.75% | |||
Level 3 | Options | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 12.00% | 11.25% | |||
Level 3 | Trade Claims | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 3,500 | $ 24 | |||
Level 3 | Warrants and Rights [Member] | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 6,162 | ||||
Level 3 | Warrants and Rights [Member] | Income Approach and Market Approach Valuation Techniques | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 11,217 | ||||
Level 3 | Warrants and Rights [Member] | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 7.00% | 6.10% | |||
Level 3 | Warrants and Rights [Member] | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 4.00% | 6.00% | |||
Level 3 | Warrants and Rights [Member] | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 11.00% | 7.00% | |||
Level 3 | Warrants and Rights [Member] | Valuation, Market Approach | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 6.50% | ||||
Level 3 | Warrants and Rights [Member] | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 6.25% | ||||
Level 3 | Warrants and Rights [Member] | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 6.75% | ||||
Level 3 | Corporate Bonds | Income Approach and Market Approach Valuation Techniques | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | $ 12,623 | $ 311 | |||
Level 3 | Bonds | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 20.00% | ||||
Weighted average percent Fair Value technique | 11.00% | 20.00% | |||
Level 3 | Bonds | Valuation Technique, Discounted Cash Flow | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 10.00% | ||||
Level 3 | Bonds | Valuation Technique, Discounted Cash Flow | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 12.00% | ||||
Level 3 | Bonds | Valuation, Market Approach | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 650.00% | ||||
Level 3 | Bonds | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 625.00% | ||||
Level 3 | Bonds | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 675.00% | ||||
Level 3 | Bonds | Probability of recovery valuation technique | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 2.30% | ||||
Level 3 | Bonds | Probability of recovery valuation technique | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 1.00% | ||||
Level 3 | Bonds | Probability of recovery valuation technique | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 3.00% | ||||
Level 3 | Other Investments | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Balance Asset Value | [2] | $ 34,135 | $ 30,723 | ||
Level 3 | Options | Valuation, Market Approach | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Weighted average percent Fair Value technique | 650.00% | 675.00% | |||
Level 3 | Options | Valuation, Market Approach | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 625.00% | 650.00% | |||
Level 3 | Options | Valuation, Market Approach | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 675.00% | 700.00% | |||
Fair Value, Measurements, Recurring | Level 3 | Option | Options | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Financial Liabilities Fair Value Disclosure | $ 2,920 | ||||
Discount rate | Level 3 | Trade Claims | Valuation Technique, Discounted Cash Flow | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 15.00% | 20.00% | |||
Weighted average percent Fair Value technique | 15.00% | 20.00% | |||
Volatility | Level 3 | Warrants and Rights [Member] | Market Approach Valuation Technique | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 30.00% | ||||
Weighted average percent Fair Value technique | 0.00% | ||||
Volatility | Level 3 | Option | Market Approach Valuation Technique | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 35.00% | ||||
Weighted average percent Fair Value technique | 35.00% | 35.00% | |||
Volatility | Level 3 | Option | Market Approach Valuation Technique | Minimum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 35.00% | ||||
Volatility | Level 3 | Option | Market Approach Valuation Technique | Maximum | |||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||||
Fair value inputs | 40.00% | ||||
[1] | In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 and the fourth quarter of 2020, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2020 and December 31, 2023. For both the Quarton Acquisition and the MHT Acquisition, 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 $35.1 million. The undiscounted amounts for the MHT Acquisition have no minimum or maximum as it is calculated based on revenue. | ||||
[2] | The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions. |
Fair Value Measurements for O_6
Fair Value Measurements for Operating Entities and Consolidated Funds - Carrying Value Disclosures (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents | $ 645,169,000 | $ 301,123,000 | $ 259,148,000 | |
Cash collateral pledged | 110,743,000 | 6,563,000 | 6,318,000 | |
Segregated cash | 185,141,000 | 107,328,000 | $ 176,647,000 | |
Securities Purchased under Agreements to Resell | 191,000 | 0 | ||
Securities borrowed | 1,908,187,000 | 754,441,000 | ||
Loans Receivable, Net | 7,682,000 | 42,830,000 | ||
Cash and cash equivalents, Consolidated Funds | 417,000 | 30,874,000 | ||
Securities Sold under Agreements to Repurchase | 5,036,000 | 23,244,000 | ||
Securities sold under agreements to repurchase, Fair value | 5,544,000 | 27,384,000 | ||
Securities Loaned | 2,476,414,000 | 1,601,866,000 | ||
Convertible debt | [1] | 80,808,000 | 118,688,000 | |
Long-term Debt | [2] | 383,067,000 | 345,451,000 | |
Convertible Debt | ||||
Convertible debt | 80,808,000 | |||
Convertible debt, unamortized discount | 6,700,000 | 14,900,000 | ||
Notes Payable, Other Payables [Member] | ||||
Debt Instrument, Unamortized Premium | 400,000 | 500,000 | ||
Level 1 | ||||
Cash and cash equivalents, Fair Value | 645,169,000 | 301,123,000 | ||
Segregated cash fair value disclosures | 185,141,000 | 107,328,000 | ||
Cash and cash equivalents, Consolidated Funds, Fair Value | 417,000 | 30,874,000 | ||
Level 2 | ||||
Cash collateral pledged, Fair Value | 110,743,000 | 6,563,000 | ||
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 204,000 | 0 | ||
Securities Borrowed, Fair Value Disclosure | 1,908,187,000 | 754,441,000 | ||
Securities sold under agreements to repurchase, Fair value | 5,544,000 | 27,384,000 | ||
Securities loaned, fair value disclosure | 2,476,414,000 | 1,601,866,000 | ||
Convertible debt, Fair Value | [3] | 135,444,000 | 148,786,000 | |
Notes payable and other debt, Fair Value | [4] | 405,840,000 | 372,591,000 | |
Level 3 | ||||
Loans Receivable, Fair Value Disclosure | [5] | $ 7,682,000 | $ 42,830,000 | |
[1] | The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. | |||
[2] | The carrying amount of the notes payable and other debt includes an unamortized premium of $0.4 million and $0.5 million as of December 31, 2020 and 2019, respectively. | |||
[3] | The convertible debt includes the conversion option and is based on the last broker quote available. | |||
[4] | Notes payable and other debt are based on the last broker quote available. | |||
[5] | The fair market value of level 3 loans is calculated using discounted cash flows where applicable. |
Deposits with Clearing Organi_2
Deposits with Clearing Organizations, Brokers and Banks (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits with Clearing Organizations, Brokers and Banks [Abstract] | ||
Deposits with clearing organizations, brokers and banks | $ 104,952 | $ 91,755 |
Receivables from and payables_3
Receivables from and payables to brokers, dealers and clearing organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Brokers and Dealers [Abstract] | ||
Receivable from Broker-dealers | $ 1,608,273 | $ 623,523 |
Securities Failed-to-Deliver | 55,655 | 45,673 |
Clearing organizations | 41,795 | 3,180 |
Securities borrowed interest receivable | 24,021 | 9,319 |
Receivable from brokers, dealers and clearing organizations | 1,729,744 | 681,695 |
Payable to Broker-Dealers | 286,011 | 185,838 |
Securities Failed-to-Receive | 68,036 | 57,580 |
Clearing organizations | 33,732 | 18,063 |
Securities loaned interest payable | 27,364 | 9,537 |
Payables to brokers, dealers and clearing organizations | $ 415,143 | $ 271,018 |
Receivable from and Payable t_2
Receivable from and Payable to Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables and Payable to Customers [Abstract] | ||
Receivable from customers | $ 103,963 | $ 105,647 |
Payable to customers | $ 1,680,326 | $ 430,224 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization | $ 73,693,000 | $ 66,507,000 | |
Less: Accumulated depreciation and amortization | (40,670,000) | (32,846,000) | |
Fixed assets, net | 33,023,000 | 33,661,000 | |
Depreciation, Amortization and Accretion, Net | 9,600,000 | 7,300,000 | $ 7,400,000 |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 6,172,000 | 6,172,000 | |
Finance Lease, Right-of-Use Asset, Amortization | 1,232,000 | 1,266,000 | $ 1,600,000 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 3,400,000 | 2,200,000 | |
Telephone and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 7,921,000 | 7,556,000 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 11,813,000 | 8,952,000 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,387,000 | 3,526,000 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 40,468,000 | 40,301,000 | |
Airplane and related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 3,932,000 | $ 0 |
Goodwill and Intangibles Schedu
Goodwill and Intangibles Schedule of Goodwill by Segment (Details) (Annual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill, gross | $ 170,869 | $ 161,513 | $ 80,363 |
Accumulated impairment charges | (23,785) | (23,785) | (19,685) |
Goodwill | 147,084 | 137,728 | 60,678 |
Recognized goodwill | 9,356 | 81,150 | |
Goodwill, Transfers | 0 | ||
Realignment goodwill, accumulated impairment charges | 0 | ||
Goodwill Impairment | 0 | (4,100) | 0 |
Amortization of Intangible Assets | 13,000 | 13,100 | 5,000 |
Investment Management Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill, gross | 0 | 0 | 29,026 |
Accumulated impairment charges | 0 | 0 | (10,200) |
Goodwill | 0 | 0 | (18,826) |
Recognized goodwill | 0 | 0 | |
Goodwill, Transfers | (29,026) | ||
Realignment goodwill, accumulated impairment charges | 10,200 | ||
Goodwill Impairment | 0 | 0 | |
Investment Bank Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill, gross | 141,843 | 132,487 | 51,337 |
Accumulated impairment charges | (9,485) | (9,485) | (9,485) |
Goodwill | 132,358 | 123,002 | 41,852 |
Recognized goodwill | 9,356 | 81,150 | |
Goodwill, Transfers | 0 | ||
Realignment goodwill, accumulated impairment charges | 0 | ||
Goodwill Impairment | 0 | 0 | |
Cowen Investment Management Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill, gross | 22,705 | 22,705 | 0 |
Accumulated impairment charges | (7,979) | (7,979) | 0 |
Goodwill | 14,726 | 14,726 | 0 |
Recognized goodwill | 0 | 0 | |
Goodwill, Transfers | 22,705 | ||
Realignment goodwill, accumulated impairment charges | (7,979) | ||
Goodwill Impairment | 0 | 0 | |
Asset Company Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill, gross | 6,321 | 6,321 | 0 |
Accumulated impairment charges | (6,321) | (6,321) | 0 |
Goodwill | 0 | 0 | $ 0 |
Recognized goodwill | 0 | 0 | |
Goodwill, Transfers | 6,321 | ||
Realignment goodwill, accumulated impairment charges | (2,221) | ||
Goodwill Impairment | 0 | (4,100) | |
Quarton | |||
Goodwill [Line Items] | |||
Recognized goodwill | 81,200 | ||
Finite-lived Intangible Assets Acquired | $ 22,200 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 9 months 18 days | ||
Amortization of Intangible Assets | 8,900 | $ 8,900 | |
Quarton | Minimum | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Quarton | Maximum | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||
MHT Partners [Member] | |||
Goodwill [Line Items] | |||
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 | $ 100 | ||
MHT Partners [Member] | Minimum | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
MHT Partners [Member] | Maximum | |||
Goodwill [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Goodwill and Intangibles Sche_2
Goodwill and Intangibles Schedule of Intangible Assets (Details) (Annual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 02, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 13,000 | $ 13,100 | $ 5,000 | |
Intangible assets, accumulated amortization (in dollars) | (37,884) | (26,395) | ||
Intangible Assets, Net | 24,403 | 35,200 | ||
Finite-Lived Intangible Assets, Gross | 62,287 | $ 61,595 | ||
Asset Impairment Charges | 2,400 | |||
Quarton | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 22,200 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 9 months 18 days | |||
Amortization of Intangible Assets | $ 8,900 | $ 8,900 | ||
Finite-Lived Intangible Assets, Gross | 22,200 | |||
Impairment of Intangible Assets, Finite-lived | 1,900 | |||
Trade name | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Intangible assets, accumulated amortization (in dollars) | $ (611) | (360) | ||
Intangible Assets, Net | 420 | 600 | ||
Finite-Lived Intangible Assets, Gross | 1,031 | $ 960 | ||
Trade name | Quarton | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Finite-Lived Intangible Assets, Gross | 900 | |||
Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, accumulated amortization (in dollars) | (32,154) | $ (21,065) | ||
Intangible Assets, Net | 19,886 | 30,659 | ||
Finite-Lived Intangible Assets, Gross | $ 52,040 | $ 51,724 | ||
Customer relationships | Quarton | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Finite-Lived Intangible Assets, Gross | $ 7,100 | |||
Noncompete Agreements [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Intangible assets, accumulated amortization (in dollars) | $ (17) | $ (347) | ||
Intangible Assets, Net | 327 | 53 | ||
Finite-Lived Intangible Assets, Gross | $ 344 | 400 | ||
Intellectual Property | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Intangible assets, accumulated amortization (in dollars) | $ (328) | (119) | ||
Intangible Assets, Net | 2,644 | 1,069 | ||
Finite-Lived Intangible Assets, Gross | 2,972 | 1,188 | ||
Software Development | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, accumulated amortization (in dollars) | (4,774) | (4,504) | ||
Intangible Assets, Net | 1,126 | 2,819 | ||
Finite-Lived Intangible Assets, Gross | $ 5,900 | $ 7,323 | ||
Minimum | Quarton | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
Minimum | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
Minimum | Software Development | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Maximum | Quarton | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Maximum | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 14 years | |||
Maximum | Software Development | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Goodwill and Intangibles Amorti
Goodwill and Intangibles Amortization of Intangible Assets (Details) (Annual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 13,000 | $ 13,100 | $ 5,000 |
2021 | 6,828 | ||
2022 | 5,439 | ||
2023 | 3,432 | ||
2024 | 3,172 | ||
2025 | 2,148 | ||
Thereafter | 3,384 | ||
Finite-Lived Intangible Assets, Net | 24,403 | ||
Intangible Assets, Net (Excluding Goodwill) | $ 24,403 | $ 35,200 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Prepaid Expense | $ 14,468 | $ 9,957 | |
Reinsurance business receivable | [1] | 15,387 | 14,688 |
Tax receivables | 2,280 | 8,464 | |
Interest and dividends receivable | 1,688 | 1,944 | |
Reinsurance Recoverables, Incurred but Not Reported Claims | [1] | 5,221 | 4,808 |
Military Mutual Loan | [2] | 0 | 27,459 |
Other Assets, Miscellaneous | 15,840 | 16,838 | |
Other Assets | $ 54,884 | 84,158 | |
Reinsurance assets [Member] | |||
Investment Interest Rate | 3.00% | ||
Reinsurance assets [Member] | |||
Other Assets, Miscellaneous | $ 7,200 | $ 7,500 | |
[1] | Balances relate to the Company's reinsurance business (See Note 18).(c) As of December 31, 2020 and 2019, the balance includes prepaid expenses, receivables and other assets used for reinsurance activities of $7.2 million and $7.5 million, respectively. | ||
[2] | In September 2020, the loan, related to the Company's' commercial reinsurance activities, was sold. As of December 31, 2019, the maturity date was December 2029 and interest rate of 3%. |
Commission Management Payable (
Commission Management Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commission Management Payable [Abstract] | ||
Commission management payable | $ 116,987 | $ 71,620 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Accounts Payable [Line Items] | |||
Contingent Consideration Payable | $ 37,953 | $ 30,896 | |
Interest and Dividends Payable | 17,031 | 5,828 | |
Loss reserves and claims incurred but not reported | [1] | 37,036 | 30,282 |
Professional Fees Payable | 9,495 | 4,789 | |
Unearned Premiums | [1] | 14,732 | 16,092 |
Fees Payable | 4,459 | 4,628 | |
Accrued Income Taxes | 17,204 | ||
Accrued tax liabilities | 14,100 | 2,778 | |
SEC fees payable | 9,987 | 3,957 | |
Software contracts payable | 1,852 | 2,884 | |
Performance fees payable | 4,427 | 3,708 | |
Accrued expenses and accounts payable | [2] | 42,303 | 35,714 |
Accounts payable, accrued expenses and other liabilities | 196,479 | 141,556 | |
Hollenfels | |||
Accounts Payable [Line Items] | |||
Reinsurance Premiums Payable | $ 15,500 | $ 13,200 | |
[1] | Balances relate to the Company's reinsurance business (See Note 18). | ||
[2] | As of December 31, 2020 and 2019, the balance includes reinsurance premiums payable of $15.5 million and $13.2 million, respectively. |
Non-Controlling Interests in _3
Non-Controlling Interests in Consolidated Subsidiaries and Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | |||
Redeemable non-controlling interests in consolidated subsidiaries and funds | $ 0 | $ 391,275 | |
Nonredeemable Noncontrolling Interest | 199,624 | 485,595 | |
Net Income (Loss) Attributable to Noncontrolling Interest | (9,299) | 31,239 | $ 37,060 |
Operating Entities | |||
Noncontrolling Interest [Line Items] | |||
Nonredeemable Noncontrolling Interest | 83,818 | 11,513 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 19,584 | (3,264) | 3,177 |
Consolidated Funds | |||
Noncontrolling Interest [Line Items] | |||
Redeemable non-controlling interests in consolidated subsidiaries and funds | 0 | 391,275 | |
Nonredeemable Noncontrolling Interest | 115,806 | 82,807 | |
Net Income (Loss) Attributable to Noncontrolling Interest | $ (28,883) | $ 34,503 | $ 33,883 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,338,501 | $ 797,386 | $ 793,332 |
Management Fees | 47,515 | 32,608 | 29,658 |
Incentive income | 592 | 1,547 | 3,117 |
Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,337,542 | 796,123 | 789,754 |
Management Fees | 46,556 | 31,361 | 26,080 |
Incentive income | 592 | 1,532 | 3,117 |
Asset Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 959 | 1,263 | 3,578 |
Management Fees | 959 | 1,248 | 3,578 |
Incentive income | 0 | 15 | 0 |
Underwriting fees | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 427,670 | 211,666 | 215,723 |
Strategic/financial advisory fees | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 190,958 | 79,208 | 81,733 |
Placement and sales agent fees | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 133,171 | 69,070 | 46,888 |
Expense reimbursements from clients | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 17,687 | 15,081 | 12,878 |
Investment banking revenue | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 769,486 | 375,025 | 357,222 |
Commissions | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 485,398 | 356,668 | 366,090 |
Trade conversion | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,753 | 12,531 | 17,061 |
Equity and credit research fees | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 19,757 | 19,006 | 20,184 |
Brokerage | Operating Company | |||
Segment Reporting Information [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 520,908 | $ 388,205 | $ 403,335 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Cash collateral pledged | $ 110,743 | $ 6,563 | $ 6,318 |
Total collateral posted for reinsurance business | 120,500 | 15,000 | |
Cash and Cash Equivalents [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 106,800 | 2,000 | |
US Treasury Bond Securities [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total collateral posted for reinsurance business | 13,700 | 13,000 | |
Collateral Reinsurance Agreement | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Cash collateral pledged | 106,800 | 2,000 | |
Collateral Reinsurance Agreement, Released September 30, 2030 | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Cash collateral pledged | 101,200 | 0 | |
Collateral Reinsurance Agreement, Released March 31, 2021 | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Cash collateral pledged | 5,500 | ||
Hollenfels | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Incurred and paid claims | 15,004,000 | 24,380,000 | 14,800,000 |
Claims IBNR | $ 34,173,000 | $ 5,647,000 | $ 11,800,000 |
Historical Average Claims Ratios, Period, Maximum | 10 years |
Share-Based Compensation and _3
Share-Based Compensation and Employee Ownership Plans Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 30, 2020 | Apr. 30, 2019 | Mar. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted | 2,400,000 | 2,400,000 | ||||||
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 | 200.00% | |||||||
Equity Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-compensation expense recognized in connection with compensation plan | $ 48,100,000 | $ 34,000,000 | $ 37,000,000 | |||||
Tax benefit of stock-compensation expense recognized in connection with compensation plan | $ 13,800,000 | $ 8,800,000 | $ 9,700,000 | |||||
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, shares | 2,709,979 | 2,435,058 | ||||||
Vested, shares | 2,419,818 | 2,291,032 | ||||||
Forfeited, shares | 117,108 | 157,502 | ||||||
Unrecognized compensation expense | $ 70,800,000 | $ 70,800,000 | ||||||
Period for recognition | 2 years 18 days | |||||||
Equity Plans | Restricted Stock | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation award, vesting period | 2 years | |||||||
Equity Plans | Restricted Stock | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation award, vesting period | 5 years | |||||||
Equity Plans | Restricted Stock Units (RSUs) | Non-employee Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, shares | 90,645 | 0 | 90,645 | 0 | ||||
Delivered, shares | 48,021 | 48,021 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 120,430 | |||||||
Equity Plans | Performance based restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, shares | 1,366,666 | 1,366,666 | 1,366,666 | |||||
Vested, shares | 379,319 | |||||||
Forfeited, shares | 320,681 | |||||||
Equity Plans | Performance based restricted stock | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested, shares | 233,333 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 420,000 | |||||||
Equity Plans | Employee Stock | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation award, vesting period | 2 years | |||||||
Equity Plans | Employee Stock | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation award, vesting period | 5 years | |||||||
Expiration period | 7 years | |||||||
Deferred Cash Award | Cowen Group, Inc. 2010 Equity and Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock compensation award, vesting period | 4 years | |||||||
Deferred cash awards granted | $ 50,300,000 | |||||||
Deferred cash award, interest rate | 0.70% | |||||||
Deferred cash awards, unrecognized compensation expense | $ 69,800,000 | $ 69,800,000 |
Share-Based Compensation and _4
Share-Based Compensation and Employee Ownership Restricted Stock Units Granted to Employees (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 30, 2020 | Apr. 30, 2019 | Mar. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance based restricted stock | Minimum | |||||
Weighted-Average Grant Date Fair Value | |||||
Percent of RSU's earned | 0.00% | ||||
Performance based restricted stock | Maximum | |||||
Weighted-Average Grant Date Fair Value | |||||
Percent of RSU's earned | 200.00% | ||||
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs) | |||||
Nonvested Restricted Shares and Restricted Stock Units | |||||
Balance outstanding, beginning of period, shares | 5,364,486 | 5,962,295 | |||
Granted, shares | 2,709,979 | 2,435,058 | |||
Vested, shares | (2,419,818) | (2,291,032) | |||
Canceled, shares | (87,348) | (584,333) | |||
Forfeited, shares | (117,108) | (157,502) | |||
Balance outstanding, end of period, shares | 5,450,191 | 5,364,486 | |||
Weighted-Average Grant Date Fair Value | |||||
Balance outstanding, beginning of period, in dollars per share | $ 16.67 | $ 15.73 | |||
Granted, in dollars per share | 17.40 | 16.58 | |||
Vested, in dollars per share | 15.59 | 15.63 | |||
Canceled, in dollars per share | 14.80 | 11.49 | |||
Forfeited, in dollars per share | 15.62 | 13.98 | |||
Balance outstanding, end of period, in dollars per share | $ 17.56 | $ 16.67 | |||
Equity Plans | Restricted Stock Units (RSUs) | Non-employee Director | |||||
Weighted-Average Grant Date Fair Value | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 259,536 | 216,912 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 120,430 | ||||
Equity Plans | Performance based restricted stock | |||||
Nonvested Restricted Shares and Restricted Stock Units | |||||
Granted, shares | 1,366,666 | 1,366,666 | 1,366,666 | ||
Vested, shares | (379,319) | ||||
Forfeited, shares | (320,681) | ||||
Equity Plans | Performance based restricted stock | Share-based Payment Arrangement, Tranche Three [Member] | |||||
Nonvested Restricted Shares and Restricted Stock Units | |||||
Vested, shares | (233,333) | ||||
Weighted-Average Grant Date Fair Value | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 420,000 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plans [Abstract] | |||
Defined Contribution Plan, Cost | $ 2.9 | $ 1 | $ 1 |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits | $ 299 | $ 299 | $ 299 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 289,600 | 68,900 | 93,000 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 7,900 | 2,200 | 6,000 |
Income Taxes Receivable | 1,200 | ||
Current Federal Tax Expense (Benefit) | 13,840 | (731) | (1,883) |
Current State and Local Tax Expense (Benefit) | 5,060 | 457 | (2,148) |
Current Foreign Tax Expense (Benefit) | 1,355 | 1,831 | 785 |
Current Income Tax Expense (Benefit) | 20,255 | 1,557 | (3,246) |
Deferred Federal Income Tax Expense (Benefit) | 53,231 | 10,242 | 12,018 |
Deferred State and Local Income Tax Expense (Benefit) | 17,337 | 3,598 | 6,956 |
Deferred Foreign Income Tax Expense (Benefit) | (450) | (544) | (9) |
Deferred Income Tax Expense (Benefit) | 70,118 | 13,296 | 18,965 |
Total tax expense/(benefit) | 90,373 | 14,853 | $ 15,719 |
Deferred Tax Assets, Valuation Allowance | 5,194 | 5,234 | |
Deferred Tax Assets, Other | 2,858 | 3,043 | |
Deferred Tax Liabilities, Gross | 61,885 | 59,656 | |
Accrued tax liabilities | $ 14,100 | $ 2,778 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Pre-tax loss at U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Basis Adjustment on Investment, Percent | 0.00% | 0.00% | 3.50% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 1.50% | 4.10% | 1.20% |
Effective Income Tax Rate Reconciliation - goodwill impairment | 0.00% | 1.20% | 0.00% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.00% | (4.00%) | 7.10% |
Effective Income Tax Rate Reconciliation, State and Foreign Income Taxes, Percent | 7.30% | 8.00% | (10.00%) |
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 0.70% | (9.20%) | (8.60%) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.10%) | (0.10%) | 1.70% |
Total | 30.40% | 21.00% | 15.90% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 18,039 | $ 60,160 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | 24,068 | 46,545 | |
Deferred Tax Liabilities, Intangible Assets | 4,513 | 2,969 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 6,230 | 6,716 | |
Deferred Tax Assets, Acquired Lease Liability | 20,401 | 24,623 | |
Deferred Tax Assets, Other | 2,858 | 3,043 | |
Deferred Tax Liabilities, Deferred Expense | 1,686 | 3,980 | |
Deferred Tax Assets, Gross | 76,109 | 144,056 | |
Deferred Tax Assets, Valuation Allowance | (5,194) | (5,234) | |
Deferred Tax Assets, Net of Valuation Allowance | 70,915 | 138,822 | |
Deferred Tax Liabilities, Investments | 19,443 | 23,028 | |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 33,439 | 26,545 | |
Deferred Tax Liabilities, Other | 7,317 | 6,103 | |
Deferred Tax Liabilities, Gross | (61,885) | (59,656) | |
Deferred Income Tax Expense (Benefit) | 70,118 | 13,296 | $ 18,965 |
Deferred tax assets/(liabilities), net | $ 9,030 | $ 79,166 |
Income Taxes Summary of Operati
Income Taxes Summary of Operating Loss Carryforwards (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Income Taxes Receivable | $ 1,200,000 | ||
Deferred Tax Assets, Gross | 76,109,000 | $ 144,056,000 | |
Deferred Tax Liabilities, Gross | 61,885,000 | 59,656,000 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 289,600,000 | 68,900,000 | $ 93,000,000 |
Deferred Tax Assets, Other | 2,858,000 | 3,043,000 | |
Deferred Tax Assets, Valuation Allowance | 5,194,000 | 5,234,000 | |
Deferred Income Tax Expense (Benefit) | 70,118,000 | 13,296,000 | 18,965,000 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 7,900,000 | $ 2,200,000 | $ 6,000,000 |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 6,200,000 | ||
Tax Credit Carryforward, Valuation Allowance | 4,200,000 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 60,500,000 | ||
Inland Revenue, Hong Kong [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 12,400,000 | ||
New York State Division of Taxation and Finance [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 33,600,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 26,000,000 | ||
Luxembourg Reinsurance Companies [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Liabilities, Gross | 110,300,000 | ||
Deferred Tax Assets, Other | 214,100,000 | ||
Deferred Tax Assets, Valuation Allowance | 214,100,000 | ||
LaBranche and Co Inc. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 23,600,000 | ||
Deferred tax asset, deduction limitation | $ 6,700,000 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits - Annual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits | $ 299 | $ 299 | $ 299 |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | $ 0 | $ 0 |
Commitments and Contingencies O
Commitments and Contingencies Operating Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Contractual Commitments, Commitment [Line Items] | |||
Lease cost | $ 22,759 | $ 23,540 | |
Variable lease cost | 3,550 | 3,580 | |
Sublease income | (781) | (953) | |
Total lease costs | 25,735 | 26,420 | |
Facility Leases | |||
Contractual Commitments, Commitment [Line Items] | |||
Short-term lease cost | $ 207 | [1],[2] | $ 253 |
[1] | During the year ended December 31, 2020, the Company recognized an increase of $1.6 million of operating right-of-use assets and leases liabilities related to for facility leases. | ||
[2] | The Company has entered into various agreements to sublease certain of its premises. |
Commitments and Contingencies S
Commitments and Contingencies Supplemental Cash Flow Information And Certain Other Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Lease, Payments | $ 25,012 | $ 24,743 |
Weighted average remaining lease term - operating leases (in years) | 4 years 6 months 29 days | 5 years 4 months 2 days |
Weighted average discount rate - operating leases | 3.66% | 4.13% |
Commitments and Contingencies_2
Commitments and Contingencies Outstanding Operating Lease Liabilities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | ||
Future minimum annual lease and service payments | ||||
Total lease liability | $ 82,735,000 | $ 97,581,000 | $ 110,500,000 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,600,000 | |||
Equipment Leases | ||||
Future minimum annual lease and service payments | ||||
2021 | 283,000 | |||
2022 | 150,000 | |||
2023 | 11,000 | |||
2024 | 0 | |||
2025 | 0 | |||
Thereafter | 0 | |||
Future minimum annual lease and service payments | 444,000 | |||
Less discount | 29,000 | |||
Less short-term leases | 0 | |||
Total lease liability | 415,000 | |||
Facility Leases | ||||
Future minimum annual lease and service payments | ||||
2021 | [1],[2] | 24,520,000 | ||
2022 | [1],[2] | 21,805,000 | ||
2023 | [1],[2] | 18,287,000 | ||
2024 | [1],[2] | 15,017,000 | ||
2025 | [1],[2] | 4,553,000 | ||
Thereafter | [1],[2] | 5,963,000 | ||
Future minimum annual lease and service payments | [1],[2] | 90,145,000 | ||
Less discount | [1],[2] | 7,781,000 | ||
Less short-term leases | 44,000 | |||
Total lease liability | [1],[2] | $ 82,320,000 | ||
[1] | During the year ended December 31, 2020, the Company recognized an increase of $1.6 million of operating right-of-use assets and leases liabilities related to for facility leases. | |||
[2] | The Company has entered into various agreements to sublease certain of its premises. |
Commitments and Contingencies_3
Commitments and Contingencies Service Payments (Details) - Service Payments $ in Thousands | Dec. 31, 2020USD ($) |
Other Commitments [Line Items] | |
2021 | $ 24,610 |
2022 | 15,224 |
2023 | 7,943 |
2024 | 5,190 |
2025 | 3,366 |
Thereafter | 10,594 |
Total service payment commitments | $ 66,927 |
Commitments and Contingencies_4
Commitments and Contingencies Schedules of Unfunded Commitments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Healthcare Royalty Partners | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 7,571 | [1] |
Healthcare Royalty Partners | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 4 years | |
Eclipse Ventures Fund I, L.P. | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 59 | |
Eclipse Ventures Fund I, L.P. | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 4 years | |
Eclipse Fund II, L.P. | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 100 | |
Eclipse Fund II, L.P. | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 5 years | |
Eclipse Continuity Fund I, L.P. | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 58 | |
Eclipse Continuity Fund I, L.P. | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 6 years | |
Cowen Healthcare Investments II LP | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 1,202 | |
Cowen Healthcare Investments II LP | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 1 year | |
Cowen Healthcare Investments III LP | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 5,094 | |
Cowen Healthcare Investments III LP | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 6 years | |
Cowen Sustainable Investments I LP | Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Other commitments, unfunded amount | $ 10,639 | |
Cowen Sustainable Investments I LP | Commitment to Invest | ||
Other Commitments [Line Items] | ||
Commitments term | 9 years | |
[1] | The Company is a limited partner of the HealthCare Royalty Partners funds (which are managed by Healthcare Royalty Management) and is a member of HealthCare Royalty Partners General Partners. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners. |
Convertible Debt and Notes Pa_3
Convertible Debt and Notes Payable - Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and Capital Lease Obligations [Line Items] | |||
Convertible debt | [1] | $ 80,808 | $ 118,688 |
Note payable | 307,653 | 306,818 | |
Term loans | 0 | 32,180 | |
Other Notes Payable | 72,505 | 2,516 | |
Finance Lease, Liability | 2,909 | 3,937 | |
Outstanding debt | $ 463,875 | $ 464,139 | |
[1] | The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. |
Convertible Debt and Notes Pa_4
Convertible Debt and Notes Payable - Convertible Debt (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 14, 2017 | ||
Debt and Capital Lease Obligations [Line Items] | |||||
Purchase of treasury stock, cost | $ 47,300,000 | ||||
Convertible debt | [1] | 80,808,000 | $ 118,688,000 | ||
Amortization of debt discount (premium) | 4,490,000 | 4,598,000 | $ 5,473,000 | ||
Gain/(loss) on debt extinguishment | 2,719,000 | 0 | (556,000) | ||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | 28,974,000 | ||||
Convertible Debt | |||||
Debt and Capital Lease Obligations [Line Items] | |||||
Convertible debt | 80,808,000 | ||||
Convertible debt, unamortized discount | 6,700,000 | 14,900,000 | |||
2022 convertible note | Convertible Debt | |||||
Debt and Capital Lease Obligations [Line Items] | |||||
Debt Instrument, Face Amount | $ 135,000,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ 17.375 | ||||
Convertible debt | 88,100,000 | ||||
Interest on Convertible Debt, Net of Tax | 4,000,000 | 4,100,000 | 4,100,000 | ||
Convertible debt, unamortized discount | $ 23,400,000 | ||||
Amortization of debt discount (premium) | 4,600,000 | $ 4,300,000 | $ 4,000,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.13% | ||||
Debt Issuance Costs, Gross | $ 2,200,000 | ||||
Extinguishment of Debt, Amount | 70,500,000 | ||||
Gain/(loss) on debt extinguishment | 2,700,000 | ||||
Debt Instrument, Repurchased Face Amount | 46,900,000 | ||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | 29,600,000 | ||||
Write off of Deferred Debt Issuance Cost | 400,000 | ||||
Write off of pro rate unamortized discount while extinguishing debt | $ 3,600,000 | ||||
[1] | The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. |
Convertible Debt and Notes Pa_5
Convertible Debt and Notes Payable - Notes Payable (Details) - Senior Notes - USD ($) | 12 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | May 07, 2019 | Jun. 11, 2018 | Dec. 14, 2017 | Dec. 08, 2017 | |
2024 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 | $ 2,900,000 | |||||||
Debt Issuance Costs, Gross | 600,000 | $ 1,500,000 | |||||||
2033 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 | $ 4,300,000 | ||||||
Debt Issuance Costs, Gross | $ 3,600,000 | ||||||||
2027 Notes | |||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 18,000,000 | $ 120,000,000 | |||||||
Interest rate | 7.35% | ||||||||
Interest Expense, Debt, Excluding Amortization | $ 10,100,000 | $ 10,100,000 | $ 10,100,000 | ||||||
Debt Issuance Costs, Gross | $ 5,000,000 |
Convertible Debt and Notes Pa_6
Convertible Debt and Notes Payable - Term Loans, Other Notes Payable and Revolver (Details) - USD ($) | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2021 | Sep. 30, 2020 | Jan. 31, 2020 | Nov. 01, 2019 | Jul. 01, 2019 | Dec. 14, 2017 | Dec. 08, 2017 | Jun. 30, 2017 | |
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Letter of credit, borrowing capacity | $ 320,000,000 | ||||||||||
Other Notes Payable | 72,505,000 | $ 2,516,000 | |||||||||
The Military Mutual Ltd [Member] | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Other Receivables | $ 28,400,000 | ||||||||||
Notes Payable to Banks | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 4,000,000 | $ 28,200,000 | |||||||||
Short-term Debt, Percentage Bearing Variable Interest Rate | 3.75% | ||||||||||
Interest Expense, Debt, Excluding Amortization | $ 800,000 | 1,800,000 | $ 1,600,000 | ||||||||
Insurance Note | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Interest rate | 2.01% | ||||||||||
Debt Instrument, Periodic Payment, Principal | $ 300,000 | ||||||||||
Other Notes Payable | $ 2,900,000 | ||||||||||
Revolving Credit Facility | BMO Harris Bank | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Letter of credit, borrowing capacity | 25,000,000 | ||||||||||
Corporate Debt | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Interest Expense, Debt, Excluding Amortization | $ 100,000 | ||||||||||
Interest rate | 6.00% | ||||||||||
Debt Instrument, Periodic Payment, Principal | $ 100,000 | ||||||||||
Other Long-term Debt | 2,100,000 | $ 2,600,000 | |||||||||
Purple Protect Asset S-91 | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Interest Expense, Debt, Excluding Amortization | $ 1,200,000 | ||||||||||
Interest rate | 6.07% | ||||||||||
Other Notes Payable | $ 72,000,000 | ||||||||||
Debt Issuance Costs, Gross | $ 1,700,000 | ||||||||||
Purple Protect Asset S-91 | Forecast | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Interest rate | 5.80% | ||||||||||
2027 Notes | Senior Notes | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 18,000,000 | $ 120,000,000 | |||||||||
Interest Expense, Debt, Excluding Amortization | 10,100,000 | $ 10,100,000 | $ 10,100,000 | ||||||||
Interest rate | 7.35% | ||||||||||
Debt Issuance Costs, Gross | $ 5,000,000 | ||||||||||
Spike Line | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Interest Expense, Debt, Excluding Amortization | 400,000 | ||||||||||
Revolving Credit Facility | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Interest Expense, Debt, Excluding Amortization | 300,000 | ||||||||||
Maximum | Spike Line | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Line of Credit, Current | $ 70,000,000 |
Convertible Debt and Notes Pa_7
Convertible Debt and Notes Payable - Finance Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 1,232 | $ 1,266 | $ 1,600 |
Finance Lease, Interest Expense | 171 | 227 | |
Finance Lease, Interest Payment on Liability | 171 | 227 | |
Finance Lease, Principal Payments | $ 1,033 | $ 1,266 | |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 2 months 26 days | 3 years 2 months 15 days | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.89% | 4.88% |
Convertible Debt and Notes Pa_8
Convertible Debt and Notes Payable - Scheduled Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Repayments on long-term and short-term borrowings | |||
Convertible debt | [1] | $ 80,808 | $ 118,688 |
Note payable | 307,653 | 306,818 | |
Other Notes Payable | 72,505 | $ 2,516 | |
Future minimum lease payments for finance lease obligations | |||
2021 | 1,483 | ||
2022 | 1,167 | ||
2023 | 411 | ||
2024 | 11 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Subtotal | 3,072 | ||
Finance Lease, Interest Payment on Liability | [2] | (163) | |
Finance lease obligations | 2,909 | ||
Convertible Debt | |||
Repayments on long-term and short-term borrowings | |||
2021 | 2,644 | ||
2022 | 90,763 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Subtotal | 93,407 | ||
Long-term Debt and Short-term Borrowings, Amount Representing Interest | [2] | 12,599 | |
Convertible debt | 80,808 | ||
Senior Notes | |||
Repayments on long-term and short-term borrowings | |||
2021 | 23,548 | ||
2022 | 23,548 | ||
2023 | 23,548 | ||
2024 | 98,721 | ||
2025 | 17,893 | ||
Thereafter | 316,411 | ||
Subtotal | 503,669 | ||
Long-term Debt and Short-term Borrowings, Amount Representing Interest | [2] | 196,016 | |
Note payable | 307,653 | ||
Insurance Note and Aircraft | |||
Repayments on long-term and short-term borrowings | |||
2021 | 4,858 | ||
2022 | 593 | ||
2023 | 72,593 | ||
2024 | 543 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Subtotal | 78,587 | ||
Long-term Debt and Short-term Borrowings, Amount Representing Interest | [2] | 6,082 | |
Other Notes Payable | $ 72,505 | ||
[1] | The carrying amount of the convertible debt includes an unamortized discount of $6.7 million and $14.9 million as of December 31, 2020 and 2019, respectively. | ||
[2] | Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes capitalized debt costs and the unamortized discount on the Company's convertible debt. |
Stockholders Equity - Annual (D
Stockholders Equity - Annual (Details) $ / shares in Units, $ in Thousands | May 19, 2015USD ($)$ / sharesshares | Dec. 31, 2020USD ($)class$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Jun. 26, 2018USD ($) | Dec. 14, 2017USD ($) |
Equity, Class of Stock [Line Items] | ||||||
Common stock, shares authorized | shares | 125,000,000 | |||||
Preferred stock, shares authorized | shares | 10,000,000 | 10,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Number of classes | class | 2 | |||||
Preferred stock dividends declared | $ 6,792 | $ 6,792 | $ 6,792 | |||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 38.0619 | |||||
Convertible Preferred Stock, Threshold Percentage of Stock Price Trigger | 150.00% | |||||
Treasury Stock, Cost [Roll Forward] | ||||||
Treasury stock, cost, beginning of period | $ 284,300 | |||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | 15,147 | 15,217 | 12,310 | |||
Purchase of treasury stock, cost | 47,300 | |||||
Treasury stock, cost, end of period | 346,900 | $ 284,300 | ||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | 28,974 | |||||
Dividends, Cash | 6,851 | |||||
Convertible Debt | ||||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | 29,645 | |||||
Dividend Paid | ||||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Dividends, Cash | $ 5,700 | |||||
Treasury Stock | ||||||
Treasury Stock, Shares [Roll Forward] | ||||||
Treasury stock, shares, beginning of period | shares | 18,605,581 | |||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | shares | 866,784 | |||||
Treasury stock shares received, other | shares | 7,747 | |||||
Purchase of treasury stock, shares | shares | 3,139,751 | |||||
Treasury stock, shares, end of period | shares | 22,619,863 | 18,605,581 | ||||
Treasury Stock, Cost [Roll Forward] | ||||||
Treasury stock, cost, beginning of period | $ 284,301 | |||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | 15,147 | |||||
Treasury stock received, value, other | 108 | |||||
Purchase of treasury stock, cost | 47,314 | |||||
Treasury stock, cost, end of period | $ 346,870 | $ 284,301 | ||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Treasury stock, average cost per share, beginning of period, in dollars per share | $ / shares | $ 15.28 | |||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions, Average Cost Per Share | $ / shares | 17.48 | |||||
Treasury stock received, per share, other | $ / shares | 13.96 | |||||
Purchase of treasury stock, average cost per share, in dollars per share | $ / shares | 15.07 | |||||
Treasury stock, average cost per share, end of period, in dollars per share | $ / shares | $ 15.33 | $ 15.28 | ||||
Additional Paid-in Capital | Convertible Debt | ||||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | $ 29,645 | |||||
Convertible Preferred Stock | ||||||
Equity, Class of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, Other | shares | 120,750 | |||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | |||||
Proceeds from Issuance of Preferred Stock, net of issuance costs | $ 117,200 | |||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 3,600 | |||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 1,000 | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 38.488 | |||||
Convertible Preferred Stock | Retained Earnings/(Accumulated deficit) | ||||||
Equity, Class of Stock [Line Items] | ||||||
Preferred stock dividends declared | $ 6,792 | $ 6,792 | $ 6,792 | |||
Common Stock Class A | ||||||
Equity, Class of Stock [Line Items] | ||||||
Common stock, shares authorized | shares | 62,500,000 | 62,500,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Treasury Stock, Shares [Roll Forward] | ||||||
Treasury stock, shares, beginning of period | shares | 18,605,581 | |||||
Treasury stock, shares, end of period | shares | 22,619,863 | 18,605,581 | ||||
Treasury Stock, Cost [Roll Forward] | ||||||
Treasury stock, cost, beginning of period | $ 284,301 | |||||
Treasury stock, cost, end of period | 346,870 | $ 284,301 | ||||
Common Stock Class A | Retained Earnings/(Accumulated deficit) | ||||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Dividends, Cash | $ 6,851 | |||||
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 | ||||
Maximum | ||||||
Equity, Class of Stock [Line Items] | ||||||
Convertible Preferred Stock, Threshold Consecutive Trading Days | 30 days | |||||
Minimum | ||||||
Equity, Class of Stock [Line Items] | ||||||
Convertible Preferred Stock, Threshold Consecutive Trading Days | 20 days | |||||
Minimum | Call Option | ||||||
Equity, Class of Stock [Line Items] | ||||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 26.27 | |||||
Convertible Debt | ||||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Convertible debt, unamortized discount | $ 6,700 | $ 14,900 | ||||
Convertible Debt | 2022 convertible note | ||||||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||||
Convertible debt, unamortized discount | $ 23,400 | |||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 29,000 | |||||
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity | $ 29,600 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |||
Beginning balance | $ (5) | $ (5) | $ (8) |
Foreign currency translation | (2) | 0 | 3 |
Ending balance | $ (7) | $ (5) | $ (5) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Computation of earnings per share: | ||||
Net income (loss) | $ 207,064 | $ 55,870 | $ 79,879 | |
Net Income (Loss) Attributable to Noncontrolling Interest | (9,299) | 31,239 | 37,060 | |
Net income (loss) attributable to Cowen Inc. | 216,363 | 24,631 | 42,819 | |
Preferred stock dividends | 6,792 | 6,792 | 6,792 | |
Net income (loss) attributable to Cowen Inc. common stockholders | $ 209,571 | $ 17,839 | $ 36,027 | |
Shares for basic and diluted calculations: | ||||
Weighted average shares used in basic computation, shares | 27,790,000 | 29,525,000 | 29,545,000 | |
Weighted average shares used in diluted computation, shares | 29,519,000 | 31,286,000 | 30,735,000 | |
Earnings (loss) per share: | ||||
Earnings Per Share, Basic (in dollars per share) | $ 7.54 | $ 0.60 | $ 1.22 | |
Earnings Per Share, Diluted (in dollars per share) | $ 7.10 | $ 0.57 | $ 1.17 | |
Restricted Stock | ||||
Shares for basic and diluted calculations: | ||||
Shares attributable to share-based payment awards, shares | 1,644,000 | 1,735,000 | 1,190,000 | |
Restricted Stock | Quarton | ||||
Shares for basic and diluted calculations: | ||||
Shares attributable to share-based payment awards, shares | 85,000 | 26,000 | 0 | |
Restricted Stock Units (RSUs) | Non-employee Director | Equity Plans | ||||
Earnings (loss) per share: | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 259,536 | 216,912 | ||
Common Stock Class A | ||||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock, shares outstanding, shares | 26,845,628 | 28,610,357 | 28,437,860 | 29,632,020 |
Common stock, restricted shares, shares | 334,230 | 216,912 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||||
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 | 4,490 | 4,598 | 5,473 | |||
Goodwill and other impairment | 22,677 | 20,460 | 12,436 | |||
Income (loss) before income taxes | 297,437 | 70,723 | 95,598 | |||
Segment Information | ||||||
Total revenues | 1,623,304 | 1,049,443 | 966,916 | |||
Depreciation and Amortization | 22,677 | 20,460 | 12,436 | |||
Interest and Dividend Expense | 187,725 | 168,628 | 104,116 | |||
Dividend expense | 8,100 | 8,800 | 6,600 | |||
Dividend revenue | 17,300 | 9,200 | 10,200 | |||
Consolidated Funds | ||||||
Segment Information | ||||||
Interest and Dividend Expense | 2,064 | 4,602 | 6,534 | |||
Dividend expense | 700 | 1,000 | 1,900 | |||
Dividend revenue | 2,500 | 3,000 | 5,400 | |||
Operating Segments | ||||||
Segment Information | ||||||
Non-Interest Revenue | [1] | 1,450,484 | 876,961 | 864,732 | ||
Interest Revenue | 170,128 | 165,727 | 97,759 | |||
Total revenues | 1,623,304 | 1,049,443 | 966,916 | |||
Operating Segments | Consolidated Funds | ||||||
Segment Information | ||||||
Interest Revenue | 2,692 | 6,755 | 4,425 | |||
Adjustments | ||||||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | ||||||
Noncontrolling Interest | (9,299) | 31,239 | 37,060 | |||
Preferred stock dividends | 6,792 | 6,792 | 6,792 | |||
Amortization of (discount)/premium on convertible debt | (4,499) | (4,297) | (4,010) | |||
Transaction-related and other costs | (9,098) | (2,608) | (2,778) | |||
Goodwill and other impairment | (2,423) | (4,100) | 0 | |||
Unrealized gain (loss) on conversion option | 0 | 0 | [2] | (7,416) | [2] | |
Debt extinguishment gain / loss | 2,719 | 0 | (556) | |||
Exited business cost | 0 | 0 | (2,395) | |||
OpCo | Operating Segments | ||||||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | ||||||
Economic Income | 329,381 | 53,257 | 77,935 | |||
Segment Information | ||||||
Non-Interest Revenue | 1,447,595 | 874,506 | 856,285 | |||
Interest Revenue | 169,358 | 165,443 | 96,535 | |||
Total revenues | 1,619,636 | 1,046,695 | 957,233 | |||
Interest Expense | 173,537 | 155,974 | 94,555 | |||
Depreciation and Amortization | 22,655 | 20,424 | 11,402 | |||
OpCo | Operating Segments | Consolidated Funds | ||||||
Segment Information | ||||||
Interest Revenue | 2,683 | 6,746 | 4,413 | |||
Interest Expense | 1,376 | 3,553 | 4,606 | |||
Asset Co | Operating Segments | ||||||
Reconciliation to U.S. GAAP Company's Economic Income (Loss) | ||||||
Economic Income | (16,136) | (9,560) | (9,034) | |||
Segment Information | ||||||
Non-Interest Revenue | 2,889 | 2,455 | 8,447 | |||
Interest Revenue | 770 | 284 | 1,224 | |||
Total revenues | 3,668 | 2,748 | 9,683 | |||
Interest Expense | 6,120 | 3,835 | 2,920 | |||
Depreciation and Amortization | 22 | 36 | 1,034 | |||
Asset Co | Operating Segments | Consolidated Funds | ||||||
Segment Information | ||||||
Interest Revenue | 9 | 9 | 12 | |||
Interest Expense | $ 0 | $ 0 | $ 0 | |||
[1] | Includes dividend revenue of $17.3 million, $9.2 million and $10.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. In addition, includes dividend revenue, consolidated funds, of $2.5 million, $3.0 million and $5.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. | |||||
[2] | Prior to the Company's June 26, 2018 stockholder meeting, the embedded conversion option feature associated with its December 2022 Convertible Notes was recognized at fair value in accordance with US GAAP as a derivative liability. The profit and loss movement related to that liability was associated with the movement of the per share price of the Company's Class A common stock. Subsequent to receiving stockholder approval for share settlement the embedded conversion option was reclassified to equity and will no longer result in profit and loss movements. |
Regulatory Requirements (Detail
Regulatory Requirements (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | $ 250,000 |
Cowen and Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Net capital requirement under alternative method | 3,594,000 |
Minimum net capital required | 1,000,000 |
Net capital | 291,803,000 |
Excess capital | 288,209,000 |
Cowen and Company (Asia) Limited [Member] | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Financial resources | 2,030,000 |
Financial resources requirement | 387,000 |
Excess financial resources | 1,643,000 |
ATM Execution LLC | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Net capital requirement under alternative method | 250,000 |
Net capital | 3,857,000 |
Excess capital | 3,607,000 |
Cowen Prime | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Net capital requirement under alternative method | 250,000 |
Net capital | 18,553,000 |
Excess capital | 18,303,000 |
Westminster Research | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Net capital requirement under alternative method | 250,000 |
Net capital | 29,330,000 |
Excess capital | 29,080,000 |
RCG Insurance Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 300,000 |
Net capital | 6,400,000 |
Options Clearing Corporation | Cowen and Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | $ 2,000,000 |
Minimum net capital required, percent | 2.00% |
U.K. Financial Services Authority | Cowen International Limited | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Financial resources | $ 29,511,000 |
Financial resources requirement | 22,699,000 |
Excess financial resources | 6,812,000 |
U.K. Financial Services Authority | Cowen Execution Services Ltd | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Financial resources | 12,188,000 |
Financial resources requirement | 3,331,000 |
Excess financial resources | 8,857,000 |
Minimum | Cowen Prime | |
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 | 49,200,000 |
Special Reserve Accounts | Minimum | Cowen and Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Cash and securities segregated under securities exchange commission regulation | 31,300,000 |
PAB Reserve Bank Accounts | Cowen and Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Cash and securities segregated under securities exchange commission regulation | 28,800,000 |
PAB Reserve Bank Accounts | Minimum | Cowen and Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Cash and securities segregated under securities exchange commission regulation | $ 19,200,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Fees receivable | $ 160,349 | $ 126,358 | |
Interest Income, Related Party | 100 | 100 | |
Due from related parties | 21,068 | 26,749 | |
Redeemable non-controlling interests, Related Party | 0 | 391,275 | |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | (32,924) | 8,442 | $ 24,752 |
Employees | |||
Related Party Transaction [Line Items] | |||
Redeemable non-controlling interests, Related Party | 84,300 | 36,000 | |
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and investment funds | 21,200 | 7,900 | 7,600 |
Employee Loans | |||
Related Party Transaction [Line Items] | |||
Due from employees | 9,500 | 14,900 | |
Forgivable Loan Balances | 4,600 | 7,100 | |
Amortization on Forgivable Loans | $ 3,700 | 3,800 | 3,100 |
Employee Loans | Minimum | |||
Related Party Transaction [Line Items] | |||
Forgivable Loans, Vesting Period | 1 year | ||
Employee Loans | Maximum | |||
Related Party Transaction [Line Items] | |||
Forgivable Loans, Vesting Period | 3 years | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Fees receivable | $ 28,400 | 20,500 | |
Investor | |||
Related Party Transaction [Line Items] | |||
Due to Affiliate | 200 | 300 | |
Other Funds | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 7,900 | $ 5,300 | |
Starboard Value LP | |||
Related Party Transaction [Line Items] | |||
Effective interest rate | 5.00% | ||
Interest Income, Related Party | 200 | $ 300 | $ 400 |
Due from related parties | $ 3,600 | $ 6,500 | |
Finance Period | 5 years |
Guarantees and Off-Balance Sh_3
Guarantees and Off-Balance Sheet Arrangements (Details) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | $ 320,000,000 |
Line of credit facility, remaining borrowing capacity | 320,000,000 |
Pledge Lines | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 225,000,000 |
Line of credit facility, remaining borrowing capacity | 225,000,000 |
BMO Harris Bank | Pledge Lines | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 150,000,000 |
Line of credit facility, remaining borrowing capacity | 150,000,000 |
BMO Harris Bank | Tri-Party Pledge Line | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 75,000,000 |
Line of credit facility, remaining borrowing capacity | 75,000,000 |
BMO Harris Bank | Spike Line | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 70,000,000 |
Line of credit facility, remaining borrowing capacity | 70,000,000 |
BMO Harris Bank | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Letter of credit, borrowing capacity | 25,000,000 |
Line of credit facility, remaining borrowing capacity | $ 25,000,000 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - $ / shares | Feb. 10, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.04 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.08 |