COWN - Earnings call transcript Q1 2021

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Operator

Good morning. Thank you for joining us to discuss Cowen's results for the first quarter of 2021.

Now I would like to turn the call over to Mr. JT Farley, Cowen's Head of Investor Relations.

James Farley

Thank you, DD. morning. Good for all us. joining you Thank should By the a of received release, now, which you earnings investor.cowen.com. can copy at have be accessed

reconciliation Cowen we with Also statements Jeffrey on presented in release on like no we release. of earnings today's Before today's update Solomon; your uncertainties Lasota. questions has of information these would described with you CEO, forward-looking to will the speakers today to as reference I joined some provide I'm statements. Steve company's GAAP and will the the contain non-GAAP call. for our and that which presented and These the to on measures, responses earnings in to the subject to call other Chair call, Reconciliation the CFO, and of consistent measures our today's remind made today's SEC. company's financial investors. may our by useful filings certain and are some obligation is comments believe the information begin, risks

the would over to turn Officer. Cowen's call Chief I Now Solomon, to Mr. Chair and like Jeffrey Executive

Jeffrey Solomon

tax Yes the are NOLs and in fees that both and we is and of fees. Cowen note firm. performance generated the terms well and Also, quarter markets surpassing operating across now on XXXX strongest which the revenues our a in new interest performance in last record we with record second for the at banking impressive set first We Management, the is incentive exhausted of previous as quarter as the XXXX. equally in set investment records as payer carried Investment cash management impressive Cowen's please profitability, in results of -- What record year. breadth in of

we fact, our not investments our driving stock power as performance is value compelling in Nonetheless, have by several still as consistent yet strategic through believe that has upon are XXXX In capabilities. recent over acquisitions months. and years demonstrates factors recognized and fully this results well our our of the market. team established valuation the in growth recognition record Our in the earnings Cowen's and we risen financial our builds profitability significantly past in as the

team working continue deliver for in work the to Our continued challenges results the clients, hard of ongoing environment our remote as grapple to a even with to we pandemic. and

in $XXX our second are the well XXXX. Here Revenues revenues, banking, our were revenues momentum the combined, record last posted of more entire year we the than the And total banking quarters consecutive In some of with excess up which for quarter. highlights. Investment X year-over-year. in is XXX% continued in of over billion

we've disruptive a who before, to said shared to Cowen's connect outperform. to have investors As companies aspirational and mission advise is quest

this delivering with clients. is as And result, building mission. team we our Our a are on long-lasting relationships

true XX% satisfaction the do have fact, and that achieve best. equity are companies banking year by the review by our were the We we we goals which helping In is running, we clients, important international to what came named house recently from the for their financing doing comes metric. of from first engagements about repeat quarter mid-market the with of an revenues in year third knowing investors

of generated placement banking XX% quarter. revenues, of $XX in capital with for million of investments as debt capital second also million equity. consists a It markets and revenues of completed in public quarter and best represents of as advisory M&A well private in advisory large by number of and the revenues our public underwriting deals. driven We capital was $XXX which total record private comprised million, of business, $XXX markets equity markets million $XX M&A combined

tools in IT, a med future franchise diagnostics, sustainability persistent strongly tech across healthcare with us $XXX out focus, $XX the of lead remains businesses collectively our the high accounting that way also $XX of million previously, banking at this million the discussed is coming growing But banking of million and and our which Cowen. and from $XX refer we and on we've care did record care, for posting As tailwind and key of a broaden the for Healthcare strength remains the million revenues, really outside our industrials quarter. health health to in We're markets health. -- for revenues activity quarter board. TMT continue level to with capital as quarter strongest biotech we

revenues been quarterly they've were care non-health highest ever million. the Our at $XXX

banking. our quarter, the first on banking still than more noting, prior of worth is SPAC it any more It in X/X it revenues for even of have that surprisingly, non-health to quarter was without XXXX. that's any activity, for perspective, our year SPAC revenues. however, Not for strong been than the accounted a best which for revenues care second record For all full would

we as SPAC selling to as previously both entities SPAC-related very due SPACs well in corporate our As themselves. business is advising strength discussed, balanced our

SPAC As from IPOs. result, fees from and revenues advisory comes a only and approximately advisory, pipes back-end SPAC X/X comes M&A X/X of our

in a number have leadership that During focused level. we're additional hires, lateral healthcare adding out resources quarter, high continued deliver we our a necessary and team we and to of the our staffing build our consistently clients at group, to ensuring for including additional on senior with

continued would the a XXXX. backlog still surprised positioned It toward given the record level, in at noting X/X be XXXX, of high of the up any was wouldn't the the believe making activity quarter, after less XX% Even the up are in double even end the quarters banking remains of past be markets without all and worth strong But the businesses versus coming capital depth SPAC backlog. our backlog we at it franchise. SPAC-related first X moderated from with if booking performance, our size we about those for revenue somewhat is of the the months. nonetheless, breadth that the of mandates, pace well than ahead, end for Looking we

transactions, including performance, of for growth a strong the up $X.X promising includes year-over-year, and was the strong of capital up growing swaps had XX% almost full was quarter XX% business, included February. which electronic a In business. given of the of early trading a includes we was are cash finance in revenues. are Services our million follow-on XXXX. XXXX huge all HFM from XX%. year above markets a As which January best with well, securities a levels We particularly million standout year-over-year, during in trading. XXXX situations quarter the and is given solid And XX% first as Hedgeweek. activities our very In won Nearly spikes trading and revenues in Prime outsourced brokerage, were trading, quarter, pair another our of over in volume-based our we Institutional day, in XX%. quarter and remarkable backlog. revenues up of SPAC the in up which our trading trading we're rewards was average XX% Special growth high trading saw comparison markets above also volume outsourced of up markets, had trading daily March daily day the per seeing our source execution Non-U.S. the $X.X meaningful with had revenues, the for not quarter record reminder, in first significantly ADR

in been markets position has never stronger. Our

year. execution capabilities we asset the pulled thinking. to lower highs revenues quarters. hitting have and a and research, per on start higher topic volumes, higher -- even record volumes across back We're show the level market in and client day market We'll would be off we run by -- rate low lows, looking run to to both classes and sorry. for -- rate, decline strong million of a in $X And year $X would coming consistently million trading more also We're still In a a if conditions we to to to we We quarter our overall outperformed expand are a XXXX. partially markets revenues did day, forward this lows continue per of competitors meet say have and on our challenging same results generate demands. in while dependent lower emerging additional prolific

focus that we report became to the firm we to Street major company Given every sustainability, commit our Wall research first on published. on placing ongoing ESG score

energy published the quarter, Curve also robotics. We first biofuels, the XXX the Biden's sector coverage an on from energy Ahead the we transformation X X of Series gene ranging subject topics analysis X in of reports alone. in-depth studies gases, industrial just therapy, days, battery the President initiation transformation and with We continued advances On and stocks new technology overall. our XX of published In of fields. in earth EV charging rare XX

cybersecurity, continue not and to took We resting and by analyst our We in on expand capabilities to our biotechnology, healthy managed food hiring care. are living successes. steps talent

We efforts $XX Investment year-over-year total be management up Both records, our in and further considerable income quarters. areas assets we will of under management set new expanding In focus and billion management, operationally. our coming both in quarterly progress, fees billion. the financially $X.X to research made are incentive while

its announcement the quarter our largest AUM business X end, contribution our our this combination capital companies, performance Cowen's from billion the had $X.X less first technology in strong Proterra. income than its electric incentive nearly up one had strategy of to firm, sustainability strategies, the first portfolio $XXX strategy at the after raise The quarter This investment Looking in by XXXX. of to at vehicle pending single largest was fund, due billion in quarter. of

healthcare in in had down quarter strategy part portfolio million with than well. not million strategy royalty up in healthcare quarter from at AUM among funds strategy This performance, activist total strategy performance part The related over performance quarter strong also for the strategy million up are the ended The year-over-year in AUM, in recent and as $XXX outflows. a year-over-year. first quarter. commitments. million royalty the up with $X.X rebalancing ended main million Our had the The billion from fund open its investments AUM, The had quarter end, strategy $XXX made over And year-over-year, several billion of care and IPOs AUM, in companies. year-over-year. merger to $XXX recent due more to billion $XXX the in most $XXX health had is arbitrage million positive $XXX for currently $X.X in due almost $X.X new positive

new to Co, $XX.X as our LP intend of Funds as includes value our the the net Turning a Italian million. rose the to well noncore was XXXX, and wireless million quarter of of asset which, exchange subscriber due that Investments as foreign growth Eclipse investments $X.X than strong Linkem million, revaluation to COVID-XX. in reminder, The $X to million during higher we $XX.X FormationX monetize. The first company, value Asset in investment

reminder, investment offering a Steve? As for the turn initial will stake largest of in at had results a now Steve And end the is quarter. financial December. the the public wish.com, I in Lasota our review call of to over for brief the its which FormationX

Stephen Lasota

Thanks, Jeff.

a operating benefit diluted per excluding compensation million. amortization, expense first million, Income expenses expenses, quarter For of from GAAP increase $XX.X period. $XXX.X and that compared up $XXX.X million million XXXX. or the record note of million XXX% depreciation in or please utilized the during and period. income was year-over-year losses GAAP the $XX.X diluted a expense GAAP net reported for the and year to all $XXX.X million common We $X.XX net was per we to G&A tax prior revenue $X.XX $XXX.X benefit first income $XXX.X an the loss from tax was of of prior XXXX, million in $X.X compensation loss of prior attributable an net year share of And period. were $XXX.X were million available to million. GAAP quarter. from million year up $X.X share, shareholders GAAP

first a So of taxpayer of quarter we are now XXXX. as cash the

for a income, well pretax Now measures. an Please non-GAAP uses operating turning them income how and non-GAAP to these our as economic quarterly income. financial these and our earnings refer economic will The definition release remainder how as the of based and to measures company consult my which be economic remarks find terms on filings non-GAAP we useful. financial of explanation as the about investors our measures,

Co business million consists and Co research. for Investment has segment Op income economic segment investment total income Co Cowen markets X and $XXX Asset Co. economic operating was segments, investments reminder, reportable $XXX.X other proceeds million The Op legacy Co strategies. Management, Asset was the economic of had income Op of banking, $XXX.X private Co million. $XXX.X Op of pretax was million, first income economic and investment and Cowen a consists The As quarter.

XXXX. Asset XX.X% million, operating economic and $X.X million. overall economic income On a loss $X.X losses of is income million income Economic margin, as the proceeds income million, XXX% first Co Economic $X.X income a period. a the XXXX, million economic million. and first operating operating for pretax loss margin we taxes of year million proceeds the a a tax all was for quarter during $XXX.X loss $XX.X period. XX.X% of an quarter period. in was in was of dividends And of a economic Total the year the $XX.X income had margin loss utilized $XX.X XX.X% to well pretax income of as quarter Economic compared reported of year-over-year $XXX.X of up year to from $X.X associated $XXX.X XXXX expense $XXX.X economic million income prior million, increased net million, economic presented up of income basis, prior loss first of million. in the prior as available net economic company from

brokerage proceeds investment million compared management period. million. the up quarter were year-over-year $XXX.X the XX% up year-over-year also $XX.X Economic very banking to $XXX.X million strong, $XX.X XXX% were were Economic the year in proceeds For economic million. quarter, for prior to fees to

of incentive $X.X catch-up the in prior under The increase first for first strategy. million was XXXX, in investment $X.X quarter the include of income million due income payment assets was in the a to of the of loss loss the a these million period. quarter versus from Economic sustainable onetime $XXX.X a up of Economic management XXXX. $XX.X quarter, $XX million in year million

year our to to declined million was economic revenues comp to expense now of prior benefit to increased compared income even period XX.X% proceeds. our in $XXX.X expenses. proceeds the million related Turning Compensation $XXX.X XX.X% for year-over-year and from though the to ratio quarter

an full totaled the noncomp unchanged Fixed quarter, from quarter. and For XX% year from year are in prior $XX.X vary may XX%, between million XXXX, targeting compensation to first in ratio offset although year-over-year. XXXX first of it annual we million the quarter almost expenses $XX.X were expenses non-comp execution and versus increase The development lower by due and the from Variable entertainment partially business to period. was million volumes, in quarter travel, expenses. brokerage trade million and $XX.X higher costs $XX.X increased

would from we current T&E XXXX, rise development more in-person of are as to and remainder the business For levels meetings expect expenses scheduled.

$X.X and depreciation million income XX.X%. includes quarter We in at XXXX. quarters, remain range rate to quarter of effective which an effective share, were of in economic expect of expenses our operating $XXX.X XX% impact record First $X.XX the we amortization common $X.X million the XX%. rate taxes of generated to the future per million compared of In first to or

In end from end of in had the balance down invested Co invested million of the sheet. at of the capital totaling $XXX million capital from the to $XXX.X XXXX. at Op had $XXX.X the March, $XXX Turning at At Co, modestly Asset million company end XXXX. totaling million, up end, we quarter

XX, XX, $XX.XX $X XXXX, equity. $XX.XX equity, total less Turning of our to rose equity, Common the equity value which million common is March as as XXXX. compared compared December equity, to preferred billion Common book outstanding, XXXX. of as by $XX.XX to book which divided value stockholders' consistent generating well is of equity $XX.XX share, basis. of which XX% to for per that quarter shares Please $XXX.X end was Tangible was an mid-teens the our target to end, XX% on return common XX.X% is per now of basis. end calculated on this the up first note ROCE XXXX, of at annualizes on above of target XXXX. on Return common XX.X%, share after-tax was a quarter from at equity

of Board common cash As $X.XX we announced per dividend by our this XX% our quarterly increased to morning, share. Directors

was existing according diluted the to XXbX-X During XX.X Cowen's purchases of repurchase only increase stock-based X.X fully XXX,XXX convertible the extent, increase million. of portion. to repurchased in our a executed premium authorization share week, A the Board shares count a our an weighted in first approved $XX the first the quarter, shares, for including $XX.X of quarter pending million, over due an was plan. This to This the quarter's lesser compensation. to notes, weighted And, average million average. of the previous shares increase million we over issuance conversion

monetize more our prioritize Looking amount flow, as in ahead, and XX% available when to income. repurchase cash to be of we We XX% we're Linkem. we'll economic to depending may now intend additional to and able market on an shares in assets buybacks capital equal opportunistic returns operating such conditions

term, to its dilutive the the share With level. reduce is the over Over back call to count turn our current I'll long Jeff. goal from that,

Jeffrey Solomon

Thanks, Steve.

you was quarter. see, strong exceptionally an As it can

quarters, these our moderate part growth attractive franchises tailwinds prepared biotech long-term of prospects, key still and for some to in While such with sustainability. well we're could coming in leading as continued future industries due market in

product capabilities differentiated We in also our and management have execution, research expanding banking, institutional with robust world-class offerings. investment

at results has As stock and momentum, believe The multiple. team and the for talent decisions still and not dedication fully yet importantly, start of trading our to to of we've all of the noted call, the taken, we is most are earnings market at our investments continue I the business cut strategic an we've the likely shareholders. Cowen's the reality our up made, delivering attractive outstanding of

to we offices able our coming so do XXXX, balance to when return but the to the we team of As appropriate. months, be more only we'll look in will of ahead believe we members

healthy to need are work sure they're on making members the and focused they effectively have team remain to working. support We wherever our that

safety always Operator? will families well that us to the questions. their our colleagues use and principle so open last March. guiding come has served will since We And for The will I it first. with that, of continue up same

Operator

[Operator Instructions].

Piper first comes question Sandler. of Mody Our from Sumeet

Sumeet Mody

that really the would How months. of get much last of versus guys gains brokerage to We're brokerage are internally? kind the kind of quarter-after-quarter, trying sort $X.X that results. related It are services XX should seems across XX rest spikes? the like quarter onetime just of Congrats the million gains months to pretty on How and the about getting say, the impressive. you of think stronger these share last How and think do of revenue you per sustainability market the keeps guys, year? we about day, in sustainable trajectory the activity

Jeffrey Solomon

for That's thanks a Sumeet. good And question, the recognition.

think I it's certainly results gotten And what our pre-COVID that When our to right? that return bigger, won't trending we as levels. return business volume-dependent, the is our has line. I more more think in levels you'll expectation think about to so we pre-COVID, might see

we've we've seen what fact, taken meaningful In is share.

certain and to And high like to are we're general, the things be where volumes. at the sustainable going moderate at position that than So goal moderate put we -- those lows. we'll just outside year, low, much market over a where we've be if higher in incredibly been able result, of in and that's our But kind thing should is end the a things for. of in business profitable levels. here the is to we looking to higher of we'll volumes The higher And as highs even be. be think and remainder used our control the the will a at whole of level I

it. thinking how about that's we're So

Sumeet Mody

And share one given quarter, Steve is there Last I share increase still But the offsetting is before after for sensitive? how converts the then share think kind the a for hop to should And as one year, was assume goal to the price have Should of the about the been we year? maybe that flat retired, count to count here. that flat? we pace throughout guys keep in priority repurchases the opposed of count back is dilution being the keep mentioned more the in more just priority queue. you

Jeffrey Solomon

Yes.

And we I have dilution. think onetime So the of the a in of a big contributor. first course, we the the is goal And Obviously, vesting. to quarter, biggest converts events. offset have is couple

at back. always shrink first our open. period quarter we think have given Certainly, goal of the during think guidance to stock of cash first I be our is I So level. XX% which an continue have because we'll appropriate we spend limited to flows that will is And a to the challenges and time window the count. we on we X/X just time we that And absolutely maintaining in think stock that we've in given will buybacks continue around that's to buy

to that. colleagues you recognize earnings small that part the think story and due recognize book have and we're from I that do value a moving some too. people an in of story written, your no we research to We

cheap. in And so times that I said numerous script the we're

spent portion listen, a stocks. cheap of to I how learning so my And good buy life

back. So an in continue stock you million, continue to positive to our us see to as cash $XX that. flow, willing of buy the think terms back a generate ability as of we I And stock our which will is indication buy increase record to --

Operator

of Our Ryan Securities. question comes from Devin next JMP

Devin Ryan

Maybe bit. to of want highlighted bit backlog the a which I banking comments. market, and in touch the Maybe some the you a investment appreciate SPAC dig on to I commentary. on outlook the little

and maybe I'm pipe curious a little also side. have just the playing there. And bit fatigue scrutiny on some from You great out things how of with, see here investor you SEC a business obviously, clearly just then

work You guys selective very that been have sponsors you with. around the

position? from more Just some this extent of, the maybe as angle it it a of And of to approaching guess you the strong so little players? the perspective just I'm more an I more guys given out have a create there, that opportunity does not strong leaves

Jeffrey Solomon

is I you investors positive the know only to with and to market results long-term toward you're we over it. that time. the choose fundamentally, IPOs, nobody the we thing SPAC is selective we all be that, because sponsors continue see that we see SPAC first deliver pace works can actually quarter. expected that going for appreciate the mean, the in that exactly And the of I how Yes. in

the lot part, focus because we efforts over business that a And My so away the deliver doing I've and right? those best our years, which part turned this we that which results they they SPAC periods and continue, felt lot been slowdowns, a long the on the which since is sponsors digestion market XX of markets, front have of haul. of and of and market has in the energies view We'll of the in go we in our then to of IPO period, them. -- on periods a time through regardless money time will needed to raise this is to one

in And it's of slow look so may when incredibly see execute de-SPAC now raising process, at think you front-end execution, -- I but our the of what to year-end IPOs have robust. I terms and us pipe between in we somewhat, and front

of in don't a the to of we'll get we will center be significant there successful of most So done, be expect deals change. our we expect and Most those. sponsors

Devin Ryan

guess, I the question, related And trading. just on SPAC

leading there, And the of market brokerage highest obviously been for a trend curious just the may of kind to what here? from have guys have that results? business important that's shot. business the I'm long outlook how been You fantastic kind how share by

Jeffrey Solomon

the that's Obviously, the are SPACs trade, pretty I out better. linear. to that more there mean,

IPOs, a even more a of in fact that done lot means Cowen, not bunch SPAC those there's been by So ones trading spaces. there's the activity

us. do and deals. more it's is well trade They announce they that the really changing, right? don't when from then tend to out see they public. that's public, when so go actually I Once public And SPAC worked

the so a trading. deals announced, lot more you'll see get And more that

long-term the in And that and market that player meaningful it's so business, when very continue just I of to meaningful we be market. think a look now the trajectory you most at

So forward. that going I our in business view a tailwind great as

Devin Ryan

Yes.

we Okay, just great. non-compensation, if Last kind how back as should just extremely Steve, is quick the non-compensation opportunities offices are into here Clearly, takes traveling activity one on variable the kind again from kind of higher think puts about costs. just piece strong moving potentially other fixed trajectory levels. about savings? people of here the think the for the for and from moving versus or and of we But

Stephen Lasota

conferences may we non-comps expenses in-person expect the development fixed that variable in that has practically that, investment We banking T&E to be increased meetings stuff client increase were steady, have, to start levels pick for and should the before. as the but they on been deals. to like just not and Well, obviously, legal Yes. but side, nil. do slightly But up related to

So maybe we're XX% the we what by do. end at year, to of used the of a

So to come have the half as back we've for year back. the talked past, we that budgeted for of the of some in

Operator

from Our Wolfe Steven next of question comes Chubak Research.

Steven Chubak

So first earlier to just how Jeff, think as to question question, of as activity. relates clarifying discussion it a on normalization the about brokerage

did or mention what your I representative your $X that to what a revenue in is that in wondering, view rate just of might the floor of I'm more time, you pre-COVID expectation. did like? note Or the And same expectation in think a of as you commitment You can that should going look of back million generate? run in certainly terms normalized terms you not levels you're that brokerage prepared per day, encouraging remarks. At hear to terms

Jeffrey Solomon

-- I happens a floor. mean, hard I I think don't I that's mean, to to know do. listen, I It's what volume. see

remainder So very the started we're out. started less seeing has I given year. don't the out have quarter has that I for of a that ball. But floor, see year a being much crystal the it as how or given how than use can't and the I what

Steven Chubak

hear capital pretty just side, the then management maintain commitment to to about on Great. healthy nice And Okay. the buyback. also levels of

us you inorganically? sheer just amount maybe your your to you of that free your given broadly liability more can more the are guys just stack generating, priorities like flow Now cash on and expand management update largely an specifically capital you've and optimized just maybe that appetite give

Jeffrey Solomon

Yes.

guidance giving of can gave guidance meaningful actually first way the what this is think we're in terms we time I So the people expect.

in I buybacks tie think as we I which in cash I continue to more just can tied buybacks we'll probably cash. us. we I time -- mean, too. assets, you from to those we'll -- expect to meaningful just monetize think generate I certain moments

there's be to are that that of want I our turned into elements So earnings cash. readily clear not

we of able see where Listen, capital will us I'll and is flow shareholders. do it. to or So it because of return cash to cheap. you'll we cheap. That's earlier, the comments is reason made. for we buyback the the as made stock, very saying us those, script. the And talk a rarely to can the But we generate we earnings to in earnings I'm say positive stock an value position that release why stock the continue about monetize we in again, I I see clearly, to part continue said be be what an stock think we in

cash as have will back so buying stock. flow, we to aggressive at we continue And be positive

Operator

next question from of Allen Point. Chris will come Compass Our

Christopher Allen

call I'm this. I the a bit if you I little not Sorry, missed got on have gave sure an late. update. may

of out the mean, Just industry? market wondering where -- to just running sorry, you're question volume following I kind second business, seeing quarter on date? the brokerage the that color declines Steve's terms the contextualizing the I'm in of any versus across is

Jeffrey Solomon

April. by you, that I generally a running we're mean, what meaningful of north during think minimum I give is amount Yes. number do we

forward So what you to historically is we've bring sort of think it's date. I -- to today's done

And And were a it number of because north lot says out average so April. basis days April. for in there, there we're the a of daily that lot the think on slow a month number I I put of

in why guidance feel given we've comfortable with the that that I area. is this again, So

Christopher Allen

side. the on helpful Got it. And banking just investment the color then on pipeline, SPAC

industry from seeing the opportunities What the currently? Just wondering perspective in could you're pipeline are pipeline? where you maybe parse kind where of the if strength an out are --

Jeffrey Solomon

Yes.

I we yet we've a that different areas. it's amount couple have launch. significant think sell-side a of Mid-market of So M&A, to

I think happen that's to the start back expect something that economy turns and become as active. to we more on sponsors

So continued strength I really there. think see you'll

month meaningful I markets capital really numbers, actually the we'll there. M&A you should that ends, April everybody. of conventions for think again, and already if occurred some see strength to announcements the couple about report And to want made advisory the and a same. of back M&A transactions to SPAC I the We have there. our in continue banking The we that highlight with as you way think

business that business. tied that's to may where because cash tied a piece a debt our very first have advisory look or of an we the we're debt capital Now of markets need when M&A because M&A for to a is advisory of is competitors, if refi. they oftentimes little we put peers. to advisory And bucket. our us you the reason they're at right, financing, of an they a doing at of be advisory financing look advisory by you That's reporting our than compare it have to in same the to bit -- out The do a look there the lot. million, firms, win were $XXX in in differently the But the M&A them economics same markets them they capital businesses, debt a which quarter, you don't And much really together. many business financial together out economics their like record lump

traditional investments out less think we markets while is on break strength franchise though strong, So because and be we And from you, and continue to I for this look underwriting we're also the of history And traditional to in the teams. me can't point breadth banking showing expect that to even markets of I that them in as meaningful of a think just we've that away I dependent business. our at personnel try where made really we've the a advisory activity. is report capital you that underwriting depth shows been in that the capital our for that of an as do indication business one markets, things part should capital

maybe And that wanted just extend comment bit more opportunity to so the that to highlight I take little to you. to a

Operator

from [Operator Instructions]. next comes Brown Michael KBW. And our question of

Michael Brown

standpoint? of nice -- So on for management recent to brokerage, a investment an see after-tax more we've about basis of to results business, is years, record where the the see. you a may the And to investment it's guess kind on from growth basis. Obviously, and in the diversification target banking, more follow-up seeing wanted across to an in from little to seen great Steve's the but update a of organic shift I pretax bit question business focusing be I lot the the benefits

cash So flow up here. you're a lot throwing of

of growth still business? guys? brokerage? side you to to next put prime dollars? maybe Is the kind business looking incremental for advisory the organic top the where's leg investment continue it to you for of the or Where So of mind of Curious are grow, you the focused on what's looking are

Jeffrey Solomon

going industries be I really because let's because generally part us We first think they services that's will that are. a at of driver with to start regardless key in we the tend and been at our are think products industries to where need So disruptive that's industries Cowen. for that look

the went So of health key be areas in for in research, in highlighting some to particular, sustainability, in increased investments continue we're and with script, which I the drivers care us. through will

the services care way time expanding in first that meaningful time or senior in analyst a long think for hiring in I into health with a the of a area.

growth the the of life people look the actually, business difference real And discovery really when together and where part the tend sort real made of and everything part there, together research drug and in good a side. sciences, both everything we of There's diagnostics the think generally, understand and banking subcategory which business. tools between people the they investments the we lump some lump of in the Within tools don't biopharma. tend at to I to -- diagnostics,

continue us So see expect there. can you to strength show to

also real traction side, hired -- seeing And we a we're So on we there. cybersecurity, that some new the analyst industrial in area.

see still trend continue payments kinds because at is a blockchain and areas, those is of that you'll we that to in that and early. reasonably us I think think look

we the will so -- decade. And and disruptive it next be for think

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we start capabilities, we when So first when the is look with again, our to extend we it. place research about generally talk

continuing an would say, to to We're in add see I thing, continuing outsourced we're trading. growth other Europe. The

significant ago, X in to now of behind are a I which starting few to invested months that months X dovetails with United Europe traction. -- about is product, those product regrowth. research we really Again, European think that States terms our trading probably show Our economic in the XX

view is see there. well as we have the a mid-market side as that trading where in European pickup in So we'll in our a business, footprint M&A both

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come making to trains and moving you high and teams a both -- we're to those attaching those confidence us capture already investments, market about that read places have margin. where we for individuals are announcements in And ability so of share degree when that we're that our

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Michael Brown

business. was SPAC I'd hear love Jeff, trading No, here, just great. about that the a And one more bit little to

hear you've been I that think impressive industry of able have it's space. larger to players leader just there to position, the lot higher a much really in the volumes given fact you're that the that this retain and

the can that offer SPAC sauce, So just capabilities share a you if bit was little what special you has Cowen a others trading your in investors What away meet? the could space? made kind been about, just are haven't such wondering I to able of without that giving force

Jeffrey Solomon

anybody that one been about now we've cared market longer leader. When leader, the were partially, than think, no space. we I SPACs, the SPACs we're in of it has. Well, cares about you the to everybody doing go And XX% flow and market else trading

great I've cared over lot months first publicly -- were it way. it that think XX -- a ago We're one my a no We until of then. SPAC meaningful at been at in -- I in about and I said respect. great it I have XXXX, bought I've I now.

of different, idea into connectivity, fundamentally curious our that. position right to something have think you built equity into it's want organization, I right? that's our understand And intellectually be can built and with bring the When and to -- existing are we so I there's also that clients, you who their we anything it this clients. to collaboration it be kind integrated we that's and to got the bring able pole have if just, that a and super and explodes, and look, franchise, product product is a clear, franchise with market people connectivity when you've else penetrate your want equity also

and cross-selling for premium introduction. a have We

-- team have when introducing a There's new team collaborative are on approach to sales where a or our We effort sales team trading individuals also that. products.

inside worry forces goes all no So the has one sales that on about contention really time. the to

easy recruit. it to made really As a Mike, for us result, it's

enough think want to effort the on, that I energy share, and fact business are. trading the here be we're and And momentum we that's look It trading, or when Cowen, taking of the lot you want I Cowen. in equities and there's happy people difficult a where just is and that you're this sales are to collaboration in market, but you the at something don't the if -- meaningful that out that we're at there momentum. But a be winning people they of about. to sales, a because begets goes want not maybe whether talk business, think

or So position great I the extension many of many, look that as an a a people. we effort to due in at a but the of bigger SPAC of of really it's haul that, part many, make that's representation efforts

Operator

call turn to to like now the would proceed remarks. back I with Jeffrey further Please any Solomon.

Jeffrey Solomon

and get digest is and all we've the efforts. Cowen we a the an talked of manifestation takes that efforts I to Well, incredible. you. you've our at Cowen. And of year, past operator. don't super my efforts express the And the over on you're without past here yourself, over working like the when the again, feels performance at this. Today those to about there you, everybody to of done hard day is are certainly is you're everybody hope I What I'd quarter, read by team and truly like and individual Once opportunity thank gratitude know that collective days here sitting it because

as many team members, is clients of not embrace I of figure responsible success forward we for that I've that. in seen You put without empathy, and in certainly many wait our our mindful face-to-face. you and a part And teamwork. would families part well to long us ethos in Cowen. our our our stakeholders, since And the also how but And is the of our the can't in sustainability do the It's values a all dependent months shareholders values we our coming well out that on that to as you, shareholders. motivates a fact for day. of said to the our to in person communities return at I've recognize belief really way of also what though that include out put way. we be good, seeing think we as and you that able been I I'm out and of our every of tenacious we every time more We're and them you looking vision, we numbers those do us which our And to which doing core show work. day, and here it's office live of enables

our in here. our a to And next with fortunate the with get great we of speaking a forward us Thank helped can some look call where we're joining success the very you on for position so you again people and all to and in communities day. share that have us, July. we Have

Operator

may today's for concludes now call. and you Thank participating, you disconnect. conference This

Cowen (COWN) 2 May 212021 Q1 Earnings call transcript