NEW YORK, Oct. 28, 2022 (GLOBE NEWSWIRE) -- Cowen Inc. (NASDAQ: COWN) (“Cowen” or “the Company”) today announced its operating results for the third quarter ended September 30, 2022.

Jeffrey M. Solomon, Chair and Chief Executive Officer of Cowen, said, "Cowen delivered another profitable quarter despite the challenging economic backdrop and weak market conditions, powered by strong performance in our operating company segment. Our results demonstrate that our business is operating at a higher level than it was before the pandemic and the strategic positioning over the last several years have enabled us to continue performing well. Even though we expect the markets to remain difficult for the remainder of the year, we believe we are well positioned to gain market share, particularly in partnership with our new colleagues at TD, who we expect to formally join early in 2023. We remain deeply committed to meeting our clients' evolving needs by providing timely strategic advice, innovative financing solutions, world-class investment research, advanced trading and execution capabilities as well as differentiated investment products."

Announced Transaction

On August 2, 2022, TD Bank Group ("TD”) and Cowen announced a definitive agreement for TD to acquire Cowen in an all-cash transaction valued at approximately $1.3 billion, or $39 for each Class A common share of Cowen. The transaction is expected to close in the first calendar quarter of 2023, and is subject to customary closing conditions, including approvals from the Company's shareholders and various U.S., Canadian and foreign regulatory authorities.

Third Quarter 2022 Financial Summary

 Operating Results
(GAAP)		 Economic Operating Income
(Non-GAAP)
 Three Months Ended
September 30,		 Three Months Ended
September 30,
($ in millions, except per share information) 2022  2021 Δ %  2022  2021 Δ %
            
            
Revenue/Economic Proceeds (Non-GAAP)$410.8 $412.2 (<1)% $340.8 $359.1 (5)%
Net income (loss) attributable to common stockholders for diluted earnings per share/Economic Operating Income (Non-GAAP)$12.7 $36.1 (65)% $24.4 $43.3 (44)%
Earnings (loss) per common share (diluted)$0.39 $1.10 (65)% $0.76 $1.32 (42)%
            
Note: Throughout this press release the Company presents Non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). A reconciliation of these Non-GAAP measures appears under the section, "Reconciliation of US GAAP (Unaudited) to Non-GAAP Measures."


Third Quarter 2022 Operating Financial Highlights

Capital Optimization Update

In the third quarter of 2022, the Company repurchased $3.6 million of its common stock, or 150,000 shares, at an average price of $24.33 per share under the Company's existing share repurchase program. Outside the share repurchase program, the Company acquired approximately $12.1 million of stock as a result of net share settlements relating to the vesting of equity awards, or 314,052 shares, at an average price of $38.46 per share. Approximately $25 million is currently available for repurchase under the program.

Quarterly Cash Dividend

On October 26, 2022, the Board of Directors declared a cash dividend of $0.12 per common share. The dividend will be payable on December 15, 2022, to stockholders of record on December 1, 2022.


Select Balance Sheet Data

(Amounts in millions, except per share information)   
 September 30, 2022 December 31, 2021
Common equity (CE)$1,053.3 $1,015.9
    
Book value per share (CE/CSO)$37.60 $36.57
    
Common shares outstanding (CSO)28.0 27.8
    
Note: Common Equity (CE) is equivalent to Cowen Inc. stockholders’ equity.   



Cowen Inc.
US GAAP Preliminary Unaudited Condensed Consolidated Statements of Operations
(Dollar and share amounts in thousands, except per share data)
        
 Three Months Ended Nine Months Ended
 September 30 September 30
  2022   2021   2022   2021 
Revenue       
Investment banking$154,480  $273,532  $356,191  $803,347 
Brokerage 135,516   131,371   458,910   444,168 
Investment income (loss)       
Securities principal transactions, net (41,170)  7,291   81,624   111,828 
Portfolio fund principal transactions, net (247)  (11,121)  (15,807)  2,400 
Carried interest allocations 9,443   (60,471)  (39,707)  768 
    Total investment income (loss) (31,974)  (64,301)  26,110   114,996 
Management fees 16,655   15,334   50,141   56,071 
Incentive income —   6   633   2,433 
Interest and dividends 147,884   45,978   242,764   167,539 
Insurance and reinsurance premiums 10,737   12,586   36,336   31,196 
Other revenues, net 376   (1,078)  (7,198)  2,612 
Consolidated Funds revenues (22,883)  (1,191)  (40,091)  (3,843)
Total revenue 410,791   412,237   1,123,796   1,618,519 
Interest and dividends expense 76,270   43,035   176,719   163,749 
Total net revenue 334,521   369,202   947,077   1,454,770 
Expenses       
Employee compensation and benefits 203,878   201,686   542,378   809,068 
Insurance and reinsurance claims, commissions and amortization of deferred acquisition costs 13,116   13,172   23,630   24,843 
Operating, general, administrative and other expenses 112,045   108,633   298,227   308,710 
Depreciation and amortization expense 6,994   4,796   21,176   13,715 
Consolidated Funds expenses 70   124   229   519 
Total expenses 336,103   328,411   885,640   1,156,855 
Other income (loss)       
Net (losses) gains on other investments (1,637)  4,266   7,470   23,641 
Bargain purchase gain, net of tax —   —   —   3,855 
Gain/(loss) on debt extinguishment —   —   —   (4,538)
Total other income (loss) (1,637)  4,266   7,470   22,958 
Income (loss) before income taxes (3,219)  45,057   68,907   320,873 
Income tax expense/(benefit) 4,476   12,192   22,273   76,864 
Net income (loss) (7,695)  32,865   46,634   244,009 
Net income (loss) attributable to non-controlling interests in consolidated subsidiaries and funds (22,046)  (4,938)  (16,896)  13,379 
Net income (loss) attributable to Cowen Inc. 14,351   37,803   63,530   230,630 
Less: Preferred stock dividends 1,698   1,698   5,094   5,094 
Net income (loss) attributable to Cowen Inc. common stockholders$12,653  $36,105  $58,436  $225,536 
        
Earnings (loss) per share:       
Basic$0.45  $1.25  $2.08  $8.14 
Diluted$0.39  $1.10  $1.87  $6.78 
        
Weighted average shares used in per share data:       
Basic 28,044   28,864   28,107   27,718 
Diluted 32,302   32,724   31,197   33,264 


U.S. GAAP Financial Measures

Third quarter 2022 revenue was $410.8 million versus $412.2 million in the third quarter of 2021. The year-over-year decrease was due primarily to reduced investment banking activity offset by higher interest and dividend income.

Third quarter 2022 investment banking revenues decreased $119.1 million to $154.5 million. During the quarter, the Company completed 15 underwriting transactions and 41 strategic advisory transactions, including seven debt capital markets transactions.

Third quarter 2022 brokerage revenues increased $4.1 million to $135.5 million. The increase was attributable to an increase in institutional services activity, primarily Prime Services and Securities Finance.

Third quarter 2022 investment income losses decreased $32.3 million to a loss of $32.0 million. The year-over-year decrease is primarily due to positive carried interest allocations offset by losses in securities principal transactions.

Third quarter 2022 interest and dividends increased $101.9 million to $147.9 million for the three months ended September 30, 2022 compared with $46.0 million in the prior year period. The increase in interest and dividends is primarily attributable to dividends receivable from event strategy market making activity and securities finance activity. The increase in the securities finance activity is due to higher customer demand which has created more matched book opportunities for international securities.

Third quarter 2022 employee compensation and benefits expenses were $203.9 million, an increase of $2.2 million from the prior-year period. The increase is primarily due to a higher compensation and benefits accrual ratio in the current period.

Third quarter 2022 total expenses were $336.1 million, an increase of $7.7 million from the prior-year period. The increase was primarily driven by higher operating, general, and administrative expenses.

Third quarter 2022 income tax expense was $4.5 million compared to $12.2 million income tax expense in the prior-year quarter. The decrease was primarily due to the year-over-year decrease in the Company's income before income taxes.

Third quarter 2022 net income attributable to common stockholders was $12.7 million, down from $36.1 million in the third quarter of 2021.

Non-GAAP Financial Measures 

Throughout this press release, the Company presents supplemental financial measures that are not prepared in accordance with US GAAP. These Non-GAAP financial measures include (i) Pre-tax Economic Income (Loss) (ii) Economic Income (Loss), (iii) Economic Operating Income (Loss), (iv) Economic Proceeds and related components, (v) Net Economic Proceeds and related components, (vi) Economic Expenses and related components and (vii) related per share measures. The Company believes that these Non-GAAP financial measures, viewed in addition to, and not in lieu of, the Company’s reported US GAAP results, provide useful information to investors and analysts regarding its performance and overall results of operations as it presents investors and analysts with a supplemental operating view of the Company’s financials to help better inform their analysis of the Company’s performance.

These Non-GAAP financial measures are an integral part of the Company’s internal reporting to measure the performance of its business segments, allocate capital and other strategic decisions as well as assess the overall effectiveness of senior management. The Company believes that presenting these Non-GAAP measures may provide expanded transparency into the Company’s business operations, growth opportunities and expense allocation decisions.

The Company’s primary Non-GAAP financial measures of profit or loss are Pre-tax Economic Income (Loss), Economic Income (Loss) and Economic Operating Income (Loss). Pre-tax Economic Income (Loss) is a pre-tax measure which (i) includes management reclassifications which the Company believes provide additional insight on the performance of the Company’s core businesses and divisions; (ii) eliminates the impact of consolidation for Consolidated Funds; and excludes (iii) goodwill and intangible impairment, (iv) certain other transaction-related adjustments and/or reorganization expenses, as well as (v) certain costs associated with debt. Economic Income (Loss) is a similar measure, but after tax, which includes the Company’s income tax expense or benefit calculated on Pre-tax Economic Income (Loss) once all currently available net operating losses have been utilized (this occurred during tax year 2020) and is presented after preferred stock dividends. Economic Operating Income (Loss) is a similar measure to Economic Income (Loss), but before depreciation and amortization expenses. The Company believes that these Non-GAAP financial measures provide analysts and investors transparency into the measures of profit and loss management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Additionally, the measures provide investors and analysts with additional insight into the activities of the Company’s core businesses, taking into account, among other things, the impact of minority investment stakes, securities borrowing and lending activities and expenses from investment banking activities on US GAAP reported results. The Company presents Pre-tax Economic Income (Loss) in addition to Economic Income (Loss) and Economic Operating Income (Loss) to provide insight to investors and analysts on how the Company manages its tax position over time.

In addition to Pre-tax Economic Income (Loss), Economic Income (Loss) and Economic Operating Income (Loss), the Company also presents Economic Proceeds, Net Economic Proceeds, Economic Expenses, as well as their related components. These measures include management reclassifications and the elimination of the impact of the consolidation for Consolidated funds as described above. These adjustments are meant to provide comparability to our peers as well as to provide investors and analysts with transparency into how the Company manages its operating businesses and how analysts and investors review and analyze the Company’s and its peers’ similar lines of businesses. For example, among others, within the Company’s Op Co business segment, investors and analysts typically review and analyze the performance of investment banking revenues net of underwriting expenses and excluding the impact of reimbursable expenses. Additionally, the performance of the Company’s Markets business is typically analyzed as a unit incorporating commissions, interest from securities financing transactions and gains and losses from proprietary and facilitation trading. The Company’s investment management business performance is analyzed and reviewed by investors and analysts through investment income, incentive income and management fees. The presentation of Economic Proceeds, Net Economic Proceeds, Economic Expenses as well as their related components align with these and other examples of how the Company’s business activities and performance are reviewed by analysts and investors in addition to providing simplification related to legacy businesses and investments for which the Company maintains long-term monetization strategies. Additionally, the Company manages its operating businesses to an Economic Compensation-to-Proceeds ratio. Presentation of Economic Compensation Expense and Economic Proceeds provides transparency in addition to the Company’s US GAAP Compensation Expense.

Reconciliations to comparable US GAAP measures are presented along with the Company’s Non-GAAP financial measures. The Non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other public companies and are not identical to corresponding measures used in our various agreements or public filings.

These Non-GAAP measures should not be considered in isolation or as a substitute for revenue, expenses, income (loss) before income taxes, net income, operating cash flows, investing and financing activities, or other income or cash flow statement data prepared in accordance with US GAAP. As a result of the adjustments made to arrive at these Non-GAAP measures described below, these Non-GAAP measures have limitations in that they do not take into account certain items included or excluded under US GAAP, including its consolidated funds.


Third Quarter 2022 Non-GAAP Financial Review

Economic Proceeds

 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
(Dollar amounts in thousands)Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total
Economic Proceeds                       
Investment banking$149,359  $—  $149,359  $262,618  $—  $262,618  $345,812  $—  $345,812  $770,533 $—  $770,533
Brokerage 172,097   —   172,097   160,486   —   160,486   551,888   —   551,888   558,178  —   558,178
Management fees 22,125   193   22,318   14,739   295   15,034   62,738   700   63,438   59,448  911   60,359
Incentive income 15,591   (10,428)  5,163   (57,288)  (447)  (57,735)  (26,220)  (11,632)  (37,852)  21,071  (1,148)  19,923
Investment income (loss) (790)  (13,155)  (13,945)  (20,418)  391   (20,027)  11,301   (11,545)  (244)  17,095  3,364   20,459
Other economic proceeds 5,837   —   5,837   (1,320)  (1)  (1,321)  18,060   1   18,061   7,150  (1)  7,149
Total: Economic Proceeds 364,219   (23,390)  340,829   358,817   238   359,055   963,579   (22,476)  941,103   1,433,475  3,126   1,436,601
Economic Interest Expense / (Income) (1,161)  (191)  (1,352)  5,669   820   6,489   (5,331)  (991)  (6,322)  19,035  3,082   22,117
Net Economic Proceeds$365,380  $(23,199) $342,181  $353,148  $(582) $352,566  $968,910  $(21,485) $947,425  $1,414,440 $44  $1,414,484


Economic Proceeds were $340.8 million versus $359.1 million in the third quarter of 2021, a decrease of 5%.

Investment Banking Economic Proceeds were $149.4 million, down 43% from the prior-year period. The decrease was due primarily to reduced equity capital markets activity.

Brokerage Economic Proceeds of $172.1 million were 7% higher versus the prior-year period. The increase was due in part to higher options, ADR trading, securities finance, and prime services, partially offset by reduced special situations and cash trading revenues.

Management Fees Economic Proceeds rose 48% year-over-year to $22.3 million. This increase in management fees was primarily related to an increase in management fees from the healthcare and activist investments strategies.

Incentive Income Economic Proceeds were a gain of $5.2 million in the third quarter of 2022 versus a loss of $57.7 million in the prior-year period. The gain in 3Q 2022 was driven by Cowen Healthcare Investments and our sustainable business and was partially offset by a decrease in performance in our multi-strategy business.

Investment Income Economic Proceeds were a loss of $13.9 million versus a loss of $20.0 million in the prior-year period, a decrease of $6.1 million. The loss in 3Q 2022 was primarily driven by mark down of the value of our Linkem position, an Italian wireless broadband provider, driven by lower projected future cash flows and a decline in market value of comparables.

Economic Interest Expense (Income). In the third quarter of 2022 Cowen had interest income gain of $1.4 million, versus an expense of $6.5 million in the prior-year period. Third quarter 2022 interest expense included a $11.1 million gain from a mark-to-market adjustment on an interest rate swap used to offset interest on floating-rate debt.


Economic Expenses

 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
(Dollar amounts in thousands)Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total
Economic Expenses                       
Compensation & Benefits$204,296 $508 $204,804 $198,702 $4,186 $202,888 $541,956 $2,003 $543,959 $800,560 $11,137 $811,697
Non-Compensation Expenses 101,205  74  101,279  88,356  38  88,394  298,763  110  298,873  265,582  13  265,595
Depreciation & Amortization 6,989  5  6,994  4,790  6  4,796  21,158  18  21,176  13,700  15  13,715
Non-Controlling Interest 826  —  826  1,216  —  1,216  1,812  —  1,812  4,171  —  4,171
Total: Economic Expenses$313,316 $587 $313,903 $293,064 $4,230 $297,294 $863,689 $2,131 $865,820 $1,084,013 $11,165 $1,095,178


Economic Compensation Expenses were $204.8 million compared to $202.9 million in the third quarter of 2021. The economic compensation-to-proceeds ratio was 60.1%, higher than prior-year period ratio of 56.5%, reflecting our view that we will likely end the year closer to the higher end of our targeted compensation-to-proceeds ratio of 59% for FY 2022.

Economic Fixed Non-Compensation Expenses in the third quarter 2022 fixed non-compensation expenses were up $2.9 million from the prior-year period at $43.3 million. The year-over-year increase is due in part to an increase in headcount as well as an increase in professional and advisory fees and communication costs. The fixed non-compensation-to-economic-proceeds ratio rose from 11.2% in 3Q'21 to 12.7% in 3Q'22.

Economic Variable Non-Compensation Expenses were $58.0 million, up from $48.1 million in the third quarter of 2021, due in part to higher trade execution costs from increased markets activity as well as increased client event and entertainment costs. The variable non-compensation-to-proceeds ratio rose from 13.4% in 3Q'21 to 17.0% in 3Q'22.

Economic Depreciation and Amortization Expenses were $7.0 million compared to $4.8 million in the third quarter of 2021. The year-over-year increase is due primarily to expenses associated with the Portico acquisition in late 2021.


Economic Income and Economic Operating Income

 Three Months Ended Nine Months Ended
 September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
(Dollar amounts in thousands)Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total Op Co Asset Co Total
Pre-tax Economic Income (Loss)$52,064 $(23,786) $28,278 $60,084 $(4,812) $55,272 $105,221 $(23,616) $81,605 $330,427 $(11,121) $319,306
Economic income tax expense 13,537  (6,184)  7,353  15,111  (1,256)  13,855  27,358  (6,140)  21,218  87,563  (2,947)  84,616
Preferred stock dividends 1,494  204   1,698  1,477  221   1,698  4,432  662   5,094  4,364  730   5,094
Economic Income (Loss) $37,033 $(17,806) $19,227 $43,496 $(3,777) $39,719  73,431  (18,138)  55,293  238,500  (8,904)  229,596
Add back: Depreciation and amortization expense, net of taxes 5,172  4   5,176  3,548  5   3,553  15,657  13   15,670  10,070  15   10,085
Economic Operating Income (Loss)$42,205 $(17,802) $24,403 $47,044 $(3,772) $43,272 $89,088 $(18,125) $70,963 $248,570 $(8,889) $239,681
                        
Economic Income per diluted share$1.15 $(0.55) $0.60 $1.33 $(0.12) $1.21 $2.35 $(0.58) $1.77 $7.17 $(0.27) $6.90
Economic Operating Income per diluted share$1.31 $(0.55) $0.76 $1.44 $(0.12) $1.32 $2.86 $(0.58) $2.27 $7.47 $(0.27) $7.21


Reconciliation of US GAAP (Unaudited) to Non-GAAP Measures

The following tables reconciles total US GAAP Revenues and Other Income (Loss) to total Economic Proceeds for the three and nine months ended September 30, 2022 and 2021:

For the three months ended September 30, 2022
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums  Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $154,480  $135,516  $(31,974) $16,655  $—  $147,884  $10,737  $376  $(22,883) $(1,637) $409,154 
Management Presentation Reclassifications:                      
Underwriting expensesa (1,899)  —   —   —   —   —   —   —   —   —   (1,899)
Reimbursable client expensesb (3,222)  —   —   —   —   —   —   (260)  —   —   (3,482)
Securities financing interest expensec —   (2,254)  —   —   —   (26,267)  —   —   —   —   (28,521)
Fund start-up costs, distribution and other feesd —   —   —   (379)  —   —   —   (605)  —   —   (984)
Certain equity method investmentse —   —   —   6,004   (3,095)  —   —   —   —   161   3,070 
Carried interestf —   —   (9,443)  —   11,363   —   —   —   —   —   1,920 
Proprietary trading, interest and dividendsg —   (72,984)  48,641   —   (3,105)  (36,632)  —   8,705   —   24,478   (30,897)
Insurance related activities expensesh —   —   —   —   —   —   (10,737)  (2,379)  —   —   (13,116)
Facilitation trading gains and lossesi —   111,819   (6,090)  —   —   (84,985)  —   —   —   (23,002)  (2,258)
Total Management Presentation Reclassifications:  (5,121)  36,581   33,108   5,625   5,163   (147,884)  (10,737)  5,461   —   1,637   (76,167)
Fund Consolidated Reclassificationsl —   —   (15,079)  38   —   —   —   —   22,883   —   7,842 
Total Economic Proceeds $149,359  $172,097  $(13,945) $22,318  $5,163  $—  $—  $5,837  $—  $—  $340,829 


For the three months ended September 30, 2021
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $273,532  $131,371  $(64,301) $15,334  $6  $45,978  $12,586  $(1,078) $(1,191) $4,266  $416,503 
Management Presentation Reclassifications:                      
Underwriting expensesa (7,208)  —   —   —   —   —   —   —   —   —   (7,208)
Reimbursable client expensesb (3,706)  —   —   —   —   —   —   (389)  —   —   (4,095)
Securities financing interest expensec —   1,565   —   —   —   (30,417)  —   —   —   —   (28,852)
Fund start-up costs, distribution and other feesd —   (94)  —   (4,328)  —   —   —   (610)  —   —   (5,032)
Certain equity method investmentse —   —   —   3,974   2,592   —   —   —   —   (4,575)  1,991 
Carried interestf —   —   60,471   —   (60,263)  —   —   —   —   —   208 
Proprietary trading, interest and dividendsg —   8,523   (14,436)  —   (157)  (5,658)  —   1,341   —   12,381   1,994 
Insurance related activities expensesh —   —   —   —   —   —   (12,586)  (586)  —   —   (13,172)
Facilitation trading gains and lossesi —   19,121   (535)  —   —   (9,903)  —   1   —   (12,072)  (3,388)
Total Management Presentation Reclassifications:  (10,914)  29,115   45,500   (354)  (57,828)  (45,978)  (12,586)  (243)  —   (4,266)  (57,554)
Fund Consolidated Reclassificationsl —   —   (1,226)  54   87   —   —   —   1,191   —   106 
Total Economic Proceeds $262,618  $160,486  $(20,027) $15,034  $(57,735) $—  $—  $(1,321) $—  $—  $359,055 


For the nine months ended September 30, 2022
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums  Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $356,191  $458,910  $26,110  $50,141  $633  $242,764  $36,336  $(7,198) $(40,091) $7,470  $1,131,266 
Management Presentation Reclassifications:                      
Underwriting expensesa (3,047)  —   —   —   —   —   —   —   —   —   (3,047)
Reimbursable client expensesb (7,332)  —   —   —   —   —   —   (866)  —   —   (8,198)
Securities financing interest expensec —   (3,580)  —   —   —   (84,233)  —   —   —   —   (87,813)
Fund start-up costs, distribution and other feesd —   —   —   (1,119)  —   —   —   (1,896)  —   —   (3,015)
Certain equity method investmentse —   —   —   14,279   3,269   —   —   —   —   (10,276)  7,272 
Carried interestf —   —   39,707   —   (36,936)  —   —   —   —   —   2,771 
Proprietary trading gains and lossesg —   (60,388)  (38,739)  —   (4,818)  (53,661)  —   15,315   —   63,780   (78,511)
Insurance related activities expensesh —   —   —   —   —   —   (36,336)  12,706   —   —   (23,630)
Facilitation trading gains and lossesi —   156,946   (842)  —   —   (104,870)  —   —   —   (60,974)  (9,740)
Total Management Presentation Reclassifications:  (10,379)  92,978   126   13,160   (38,485)  (242,764)  (36,336)  25,259   —   (7,470)  (203,911)
Fund Consolidated Reclassificationsl —   —   (26,480)  137   —   —   —   —   40,091   —   13,748 
Total Economic Proceeds $345,812  $551,888  $(244) $63,438  $(37,852) $—  $—  $18,061  $—  $—  $941,103 


For the nine months ended September 30, 2021
(Dollar amounts in thousands)		 Investment Banking Brokerage Investment Income  Management Fees Incentive Income Interest and Dividends Reinsurance Premiums  Other Revenues, net Consolidated Funds Revenues Other Income (Loss) Total
Total US GAAP Revenues and Other Income (Loss) $803,347  $444,168  $114,996  $56,071  $2,433  $167,539  $31,196  $2,612  $(3,843) $22,958  $1,641,477 
Management Presentation Reclassifications:                      
Underwriting expensesa (20,275)  —   —   —   —   —   —   —   —   —   (20,275)
Reimbursable client expensesb (12,539)  —   —   —   —   —   —   (972)  —   —   (13,511)
Securities financing interest expensec —   9,132   —   —   —   (121,073)  —   —   —   —   (111,941)
Fund start-up costs, distribution and other feesd —   (360)  —   (8,850)  —   —   —   (1,914)  —   —   (11,124)
Certain equity method investmentse —   —   —   10,976   16,590   —   —   —   —   (21,298)  6,268 
Carried interestf —   —   (768)  —   1,090   —   —   —   —   —   322 
Proprietary trading gains and lossesg —   34,870   (79,871)  —   (207)  (12,016)  —   1,070   —   34,148   (22,006)
Insurance related activities expensesh —   —   —   —   —   —   (31,196)  6,353   —   —   (24,843)
Facilitation trading gains and lossesi —   70,368   (11,055)  —   —   (34,450)  —   —   —   (36,491)  (11,628)
Total Management Presentation Reclassifications:  (32,814)  114,010   (91,694)  2,126   17,473   (167,539)  (31,196)  4,537   —   (23,641)  (208,738)
Fund Consolidated Reclassificationsl —   —   (2,843)  2,162   17   —   —   —   3,843   —