Cowen Group, Inc. (COWN) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2014

Exhibit 99.1

Press Release

COWEN GROUP, INC. ANNOUNCES

FOURTH QUARTER AND FULL YEAR 2014 FINANCIAL RESULTS

Record Revenue and Economic Income For 2014

New York, February 26, 2015 - Cowen Group, Inc. (NASDAQ: COWN) (“Cowen” or “the Company”) today announced its operating results for the fourth quarter and full year ended December 31, 2014.

2014 Full Year Highlights(1)

·                  Economic income was $44.2 million or $0.37 per diluted common share, compared to $6.5 million or $0.05 per diluted common share in 2013.

·                  GAAP net income was $167.2 million or $1.40 per diluted common share compared to $4.6 million or $0.04 per diluted common share in the prior year.  GAAP net income includes the Company’s deferred tax valuation allowance, which was released in the fourth quarter 2014, resulting in a $128.1 million deferred tax benefit.

·                  At December 31, 2014, book value per share was $6.07.

·                  Revenue rose 45% year over year to a record $497.6 million from $343.8 million in the prior year.

·                  Broker-dealer revenue grew 44% year over year to $337.2 million, driven by growth in investment banking and brokerage.(2)

·                  Incentive fees were $45.7 million, a 116% increase over the prior year.

·                  As of January 1, 2015, assets under management (“AUM”) were $12.5 billion.  AUM increased 32% or $3.1 billion from January 1, 2014.

·                  During the year, the Company acquired 6.3 million shares of Cowen’s Class A common stock for $26.0 million under its share repurchase program.

·                  On February 25, Cowen’s Board of Directors approved a $14.7 million increase in the Company’s share repurchase program.  With this increase, the total amount available for repurchase under the program to $25 million.

·                  John Holmes has been appointed Chief Operating Officer of Cowen.  Mr. Holmes has served in a variety of leadership positions at the Company, most recently as Chief Administrative Officer.

2014 Fourth Quarter Highlights(1)

·                  Economic income was $18.9 million or $0.16 per diluted common share, compared to $2.7 million or $0.02 per diluted common share in the prior year period.

·                  GAAP net income was $142.5 million or $1.21 per diluted common share compared to $2.5 million or $0.02 per diluted common share for the fourth quarter 2013.  As previously mentioned, GAAP net income includes the Company’s deferred tax valuation allowance which was released in the quarter, resulting in a deferred tax benefit of $128.1 million.

·                  Revenue rose 72% year over year to $165.8 million from $96.5 million in the prior year period.

·                  Assets under management increased by $320 million in the fourth quarter 2014.