Cowen (COWN) 29 Apr 202020 Q1 Earnings call transcript

Good morning. Thank you for joining us to discuss Cowen’s results for the First Quarter of 2020. By now, you should have received a copy of the earnings release, which can be accessed at www.cowen.com.

Before we begin, the company has asked me to remind you that some of the comments made on today’s call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties described in the company’s earnings release and other filings with the SEC. are be by pandemic. increased risks will may these to continue by of currently and increased or Many the COVID-XX more will in these and of upcoming first the complete risks XX-Q the on A uncertainties filing, the XXXX and website. which SEC, and including assumptions available company’s the other included quarter filings be with is description company’s update no information presented obligation call. to the has Cowen today’s on

will call, our GAAP which speakers will useful non-GAAP Reconciliation certain investors. measures, believes the is company’s to today’s reference the reconciliation in financial of company as on release. provide with measures for information presented Also those earnings today’s consistent

like Jeffrey turn Chief and Now, call over Officer. to Solomon, I Chairman to Mr. Executive would the

welcome call. today is XXXX to Cowen’s operator, you, his call Lasota. Thank first This joining me Jeff and earnings Solomon. on And the CFO, Steve home from and good our everyone, is quarter morning,

quarterly our you Investor we the financial make in a it review release. to and As website our in conjunction available reminder, earnings supplement with of we section Relations encourage

questions. of This events review some of responded we we thoughts the COVID-XX the stand After review be reality would we to Steve today. several offer financial we Then past that, Cowen would will the pandemic. like quarter, to to new and extraordinary for results have the the your I at will weeks morning, how the answer and on where happy

how team [Technical critical by I’ve been this vision, current health teamwork. to own sustainability the Difficulty] few highlighting we by and decisions crisis Over only time. the also early have present our situation, months, the on not our but economic I’ve number started views organization past that our asked a each through of been our tenacious clients empathy, and of and time made management managing

our team more health As more and that became made. decisions the of call, all in prioritized and evident, of the we I families a detail when this the in the safety will we on bit enormity pandemic our

firm We us to as implemented none engagement of able enabled work for a continuity continue to action we entire delivering – even as without clients us ever homes. imagined could tirelessly work were us business robust of our we into that which to much It the plan, yet swung X,XXX is our ensure effectively and all hesitation. feat all our collaboratively high-quality from quickly a of across to having accomplish, and that organization so our have

to this my who go So my before pride express at just and to we everyone helps Cowen any want gratitude further, make I happen.

You are are. as the as our embodiment we us and of ideals essence strong makes of the what

priority. look As several our months, team, top to communities forward we will our our the remain Cowen well-being our and of families, clients, next the navigating the

March, the XXXX, performance a to we first than Looking businesses quarter. banking the of back the operating month our investment specifically strong rose was quarter decade, and the the for period it test most challenging a of and very more with markets in to in

ninth the the over of on realized it the of equities, was volatile XXX most XXXX record XX. the ever, with March month as put volatility volatile would in perspective, U.S. quarter rank for and To S&P first year most

almost prices and to volume equity worldwide weathered well. surged economies this As trading downshifted halt. fell, storm a Cowen

a our risk rapid books, posted book our March our the of the in investments. I’m some write-downs profitable tangible to for segment operating private company quarter, preservation we negative took in the to performance resulted was of in a trading due which reduce while in of The asset steps company value. early proud

were over some of beginning And the end place work staff XX% home COVID-XX by for well situation, peers. to that of on of our March globally mandating from week, week, most the quickly reacted we ahead in however, importantly, teams sheltering of of X. our our More by

more third been March, week Cowen than employees remotely. working the have of of XX% Since

me not we did But we only skill pull if to record bet. in home testament is beat. taken our did to have that do that the I other Now, might plan, told migrating side we work volumes This a without technology. the so off, in would you’ve a in it dedication our teams of from March, markets a and while missing of business operations

seamlessly. and We This work a remote not expertise easy in an move happen much our health risk to relative quickly and perceived whether threat. and team the are were hard their beyond making the for to not – well fully government’s precautions, workforce decision were debated time, continuity At their we recommended to grateful was this the so or our to management one. actions the so of business our too but taking our

down overriding and families came decision to The keeping our one people factor, healthy. their

decision crisis, in plan. of presence, made Given robust right the a cities where we’re a early particularly have to the for business the and have escalation foresight the Cowen thankful to continuity has major

Cowen work employees have and engaged decision. healthy, because been this home of productive, from

be to difference, of a Our the one other empathy present like that a In there’s enabling strong clients. stress has made has for high for continue are level, each no times at culture question apart. even functioning and enabled our us us truly clear though we’re we to in,

clients, the economic and with information make clients monetary early impact and the our convene from of provided conference action to sense experts quickly We sprang about into shift vaccines, a with virtual the aspects on well global continued to to for and the a all pandemic As help that on COVID-XX to we our therapies, remotely, fiscal of diagnostics, engagement attended quick we month. creating were to responses. market work virtual the

to over ever more online have the than working That attracted events, of a connected past clients conference, as well but our perhaps more as and so. participants been be XX,XXX series weeks. we several have may We even we’re other remotely,

enabled contact market share. frequency, with which well us client amongst and The we has increased combined Cowen our strengthened team take coordinated further remained successfully relevant believe to We has extremely client relationships ourselves. content

Now, a terms in brief I importantly, a as on of operating markets, and gained the company both update spiked. revenues divisions give and quarter over how our record we fared you trading we volatility share volumes, quarter. In will had

Our trading XXX% while above over were volumes buy-side average, the higher. the prior clients XX-month was activity trading XXX% in March from

to market seek risk, months. of to definitely this over for basis, of times out couple out trading non-biased past and a play Cowen reduce In of impact the clients and seen market our liquidity we have ability on source

in we reduced During of impacts in quarter, clients portfolios. provided revenues, record to and and generated losses securities, liquidity the still finance the risk first books, our SPAC despite trading aggressively and these the

execution first Each prime those electronic of XXX% brokerage up strong. of year-over-year, options than and up while cash non-U.S. were were were XX% and trading, XXXX. the quarter revenues extremely more versus Revenues trading and

virtual clients research, drawn feedback. very positive our engagement In has with

Beyond total our a with Cowen-focused grew our reports with our engagement of first efforts, number with XX%. quarter, up was XX%. research research up reports Client team productive in published very the also read,

we private quarter, product a out gain the building equity product ideas best began a capitalists, to offices, portfolio research launched and funds. euro increased venture and thematic new managers, among In family mindshare

activity and revenues, best we drop the banking, overall towards investment banking sharp market second In quarter a despite the on record turmoil quarter-end. in the had

and was revenues across for new beneficial, XX% healthcare issue Our again, and quarter. particularly in the our calendar banking tools first in healthcare biotech accounted and Overall, focus as starting significant of expertise and diagnostics, in and the are April. February January

markets During well. but for extremely banking focused March, the our our completed business, as the strong XX It in capital and quarter performance across was volatile and transactions debt It we other years. in strongest advisory. stayed we equity M&A for over advisory quarter five clients of on markets environment a capital solid in had was areas

– past in and clearly We XXXX, sheets paying aggressively. off is us in so balance about to that invested as manage over out for capacity more building that far think clients their year how the in

of XX% in XX% pipes Capital private represented of banking business banking revenue. financings quarter. of revenues total Combined, private M&A the revenue. includes and compromised our placements, markets advisory XX% which advisory, was debt banking about

modest early run years. portfolios. and fee drops to in level but the in in the to relative in rate quarter, In the management volatile market its income even took steps steep quarter, the the Despite hit most over classes investment resulted management, we investment highest income, they sell-off four during incentive the were derisk as declines asset

our of XXXX, food strategies, quarter the five our quarter. sectors. approximately had efficiency The investment technology-enabled which industrial and launched production, storage at transportation, newest third assets million sustainable Looking in strategy, at team a on and in process sustainable of clean $XXX investing, the and focuses renewables runs end the

investments and the approximately at for Our in million areas diseases. healthcare attractive looking strategy investment $XXX oncology this at year-end. is And had rare meaningful particularly in valuations, strategy of assets

negative biotech been our investments experienced have The among one disruption term. of current handful strongest remain an intermediate quarter, in indices of COVID-XX, during industry of but the investment the the even sectors, incentive from and first biopharma first April. we of the strategy to all weeks and a recent IPO income had of positions about optimistic the income the few in the outlook the from we Despite performers

Royalty markets the Partners about dilutive for quarter in the their done opportunities sheets to looking Royalty has less HealthCare financing assets. this Partners. as about opportunity the ended increased brought like finance HealthCare strategy, with are $X.X companies balance ones volatility in in The public with billion

Merger assets This Arb about strategy since The in XXXX the at as the spreads first merger $XXX arbitrage Index the deal their in moved had underperformed HFRX crisis. quarter million financial strategy levels widest to quarter-end.

quarter Russell The the XXXX investment And billion quarter-end. and performance actually strategy income. significant in generated the quarter outperformed fee negative, modestly benchmark activist strongly at assets $X.X strategy while the in in its had first about absolute was

a in estate quarter, monetize. we reminder, down while in in wrote we real asset The have sell-off the totaling of indications as from company investment. resulted a Asset buyers the write-downs pandemic. the intend received Co to to non-core As Surfside million quarter And $X.X interest investments, investments includes segment which earlier We global this of result $XX.X the those of first faded the indications in million. Turning had

not lender continue the the to value. to potentially we and realize restructure, such, with As property do environment, we more work interest expect time a to giving in in renewed us current

we the few estate. remaining As you have to may of remember, real commercial this the investment is largest exposures very

is third-party despite had in exited company, assessed that which by down the wireless fall, investment fact written strategy $X.X value Linkem stake the X%, this was each estate by actually we million, of or Linkem, valuation quarter As strong performance a Italian last quarter. the firm past our the real

demand The the Italy. has XX% demonstrated in COVID-XX increasing in increased network shelter-in-place experienced company for a and new spike by subscriber growth services, utilization its during

sale fire assets sell willing reminder, Co in do are at able we as intend price. soon so, to Asset a – are to As sell the them we we a not to we non-core as although,

over of And call I for our a results for financial will the now, brief turn Steve? the review Steve to quarter. Lasota first

Jeff. Thanks,

to net GAAP quarter the XXXX, XXXX, In $XXX.X versus We expenses income For million. $XXX.X million from of up a GAAP revenue to $XX.X attributable XX% the the loss first of year compensation common the in a first of $X.X period. and year-over-year stockholders $XXX.X quarter decrease million GAAP of $X.X of benefit net million from prior reported period. million GAAP prior year million, were was

expenses, were quarter. of million, million prior for compared $XX.X and In period. the quarter, and income first expenses, million. $X.X the million of were $XXX.X to the year increase in expense first Non-comp prior exclude non-comp expense which $X.X within administrative benefit quarter comp tax D&A $XX.X first in And an D&A, million, other an operating, the from expenses year the general, was of $X.X million period.

certain with a the economic eliminates measure In which as our to to consolidating pre-tax intangible refer debt. economic non-GAAP funds financial impact excludes turning other is general, associated income transaction-related expenses goodwill or income. and reorganization of and impairment, to certain consolidation that adjustments Now measures, we and costs

fund GAAP would also income fees income be reporting, the records banking Economic for during life income the retainer when include over period GAAP the realized incentive are costs Economic reporting. associated the fund. deferred a incentive otherwise fees starting of expected period, that investment yet with also with during not revenues collectible

remarks these on measures. based and economic of be income operating amortization depreciation will financial my Economic expenses. represents income remainder before The non-GAAP

Op economic million had we segment, Looking for $X.X first million, noted, income markets had investment economic Op revenues our banking. XXXX. in the by Co revenues $X.X and profitable million, strong Co quarter $XXX.X of of at our total Jeff quarter business operating of and income segments, as driven of a in

economic quarter. Co had of million and income an of revenue $XX.X Asset economic loss million in operating an loss the $XX.X first

of loss the compared $XX.X reported XXXX, first of On million year an overall period. quarter the income $XX.X economic million we in for to basis, income of prior

to in loss was income the operating million, year of First period. million compared quarter prior of $XX.X income $X.X economic a

quarter XX% decreased First $XXX.X million. economic year-over-year revenue income to

to on This investment quarter, $XX.X the was quarter and period. brokerage four million, management banking record highest $XX.X the record. revenues, million for to million, year second is years. For for level fees were year-over-year XX% was It XX% year-over-year up the revenue the prior in up a compared best $XX.X million, to quarter the in quarter $XXX.X

Co healthcare $X.X was income Incentive quarter in million were reversals the of the – XXXX. strategy and million XXXX strategy by Asset for of in investments. of versus of loss QX a incentive first generated the the by Positive some quarter the $XX.X activist of in the income first legacy in incentive fees of fees offset

versus $XX.X the event-driven strategy, performance and as as was Asset the investments. the for strategy an strategy, the activist million due income healthcare year $XX.X income the in Investment write-downs prior of to period, $XX.X weaker loss in of in million million in non-core a well quarter Co

out prior in capital this and financial revenues. markets Starting revenues financial markets years into This XXXX underwriting quarter revenues in comparative supplement, by banking provided is and breaking an quarter our any shown. the our advisory additional breakout have for our capital first transparency supplement for provided we investment of revenues into our

investment our on revenues quarterly or period are of This comparative the brokerage XXXX Also been and net gains made investment and supplement presenting and quarter reporting trading this has to economic which adjustment associated quarter, of previously for income been we had any revenues for brokerage revenues reflected losses, our financial first starting income. shown.

to now to expense year Compensation million, expenses. for was $XXX.X in compared the our Turning benefit and the prior quarter million period. $XXX.X

Co in to the income ratio Our comp revenue comp overall of first The revenue. Operating economic The quarter. Co to year-over-year for due from Asset comp overall write-downs higher to XX.X% ratio investments. ratio XX.X% rose was XX.X% in was

higher targeting which period. in are balance are it from times quarter, of the part annual activity. although ratio Firm-wide, elevated variable the million year. range revenues non-comp totaled if could trading first prior the XX%, due we to comp expenses expenses $XX.X increase in in XX% for and million rev remain elevated component applications, up a between the to trading weaker of The was $XX.X have in for year Fixed software

first to $XX.X execution first in compared record the $XX.X quarter higher The quarter million the variable due were of non-comp to in volumes. and expenses of to XXXX, XXXX million, brokerage trade costs related

compared the First were quarter million, $X of million quarter depreciation and expense in first $X.X amortization XXXX. to

invested the quarter-end, totaling capital Co million. $XXX.X dealer regulatory million Asset in broker company operating and That to We Co the Turning Op had million balance $XX.X includes additional and in invested cash. sheet. in At $XXX.X had capital $XXX.X million. capital totaling

sheet by $XX allocations million. spread During trading the than quarter, the balance and strategies, merchant banking pandemic books the increased, as reduced to and more we volatility investment

ample end with strong to long-term and is no until maturities position of liquidity business XXXX. corporate debt the sheet balance Our run our

our as Common equity preferred which $XXX.X of common million, $XXX.X equity, was stockholders’ less value common compared as to is March XXXX. per equity, December as XXXX, to book XX, share, total XX, $XX.XX shares XX, decreased million by of equity is to divided outstanding, of December equity $XX.XX to compared slightly XXXX. which Turning

return quarter-end, at in XXXX. per down common of share at negative XXXX. was slightly Tangible the was the $XX.XX book on $XX.XX end of first value X% Firm-wide quarter from equity

cash we be $X.XX release quarter. paid of share, in However, Board And noted dividend our positive Directors quarterly which per morning, on this maintained in common return of common the X.X% Op will Co June. of for the equity had as our

quarterly four During for repurchased X.XX quarter, $XX amount buyback highest million, shares million first we the share the in years.

on For may remainder to shares market the an opt of in additional opportunistic XXXX, purchase we the basis. open

the as However, market of as available flow, business weigh cash our prevailing we’ll on impact buybacks well conditions. the and

solid. our and value book business is strong core is Our

in operations, all been put backbone business expected, I of appreciate like firm, As the strong to held these the ops. by personally difficult effort would times. everyone during you recognize do. business has We has forth the that exceptional which always

back that, to turn Jeff. I’ll the With call over

Steve. Thanks,

stand to insight your some Cowen. take into at questions, I’d today we Before we like offer where

practically. probably time done volume month and April with business, we’ve of of never our you the guidance thoughts offered on given can certainly we we to deal know, offer play, start. As nature and earnings some state are that now dependent not flow current the the is But the given of you

moved off, which they First and we better, knowns, weeks have which unknowns of over known unknown a are place is weeks to clear it. truly known To ago. use lot the simply Rumsfeld more – several were definitely known unknown we unknowns, information more know and know I which Don by things old we categorization say, the a is from exists to several unknowns, mean, which than last virus about the difficult unknowns,

certain how That’s market longer-term We’re still the not – economic will impact where lives. necessarily really what volatility on be.

a dangerous economies, no ailment lives. COVID-XX across make and So pandemic wreaked remains people’s and the havoc mistake, has tragically, markets

unlike But and The allies. weeks we continue a Time what have and everyday. capital against up idea and virus our we’re to the are to somewhat enemy. of ago, learn collective science our more that fund better science is several we

believe question workplaces, importantly, not treatments COVID-XX and spending now, in our clients with colleagues being distancing in return settings. testing when, to our will us most we rolled family out, social the if. racing seeing the and allow these social and it are and a towards We practicing of and eventually development, time to friends antiviral The strategies vaccines and person be is

part. our Cowen, As it relates doing to also we’re

for doctors with medical front-line providers of support effort, accelerate in medical the We’ve most our we that help important developments. money in with collective the influencers, to and ones using can number officials of workers. Because professionals collaboration, and important scientists, and capital we also face connect organizations raised can all, empathy. are challenges end, a network are overcome We of key

spite the of safely, remain across team win X,XXX we face, working of way connected remotely, dedicated, In every challenges and to our a people all they the globe passionate we can. clients in help

In markets as insanely with day, in in down. million up reached even and and volatile strong, $X.X the volumes quite pitch our has calmed from have liquidity averaging thankfully stepped But remains fever days to March. revenues that the in provided clients business April market-wide actually markets, March, a we declined

encouraged banking, solid client the and of high by pipeline level the In we’re engagement.

this So are with offering running par $XX which for March, does we Immunomedics. the far month, revenues not include in on morning did we banking saw million lead-left $XXX million pace this follow-on

The particularly and has fairly capital remains in well. up markets M&A healthcare, held backlog pipeline strong, the also

valuation environment delay of history like M&A some sellers can may quarter transactions, less to the and shown we has first corrections the more make While current one in the focused the of the transact. willing saw the timing

domain will skills current make In private environment. to and their teams investment the strategies, look evaluation use investments on equity opportunistic running The continue where focus those management, we to in style expertise. strategies we have

prospects balance invested daily a we investment volatility to positive This spreads and management management in experiencing so events portfolio. been believe in has healthcare we number in April positive positive strong the that in alpha in that far our is in investment reduced, although growth as investing, remain are on sheet, Co as income area, We our so our and well tightening part of Op due event-related XXXX, during balance the management derisked activist under for considerably in performance some assets our have consistent fees P&L sheet.

position and Overall, a a financial tumultuous solid Cowen in is operating quarter. after

relationships of seek sheet critical buy-side with more per one has and strong whom deep clients we We when $XX.XX business liquidity. balance book value to with for go-to-organizations the they have intangible the become markets robust for that a share, become need

to don’t but to not the are know is and exactly challenges that way. share, participate, see shape we market what positioned help gain we going the believe to their the throws While well whatever we our clients only of recovery take,

up Operator? And questions. will I that, with open it to

first comes from our you. Devin question Instructions] [Operator Ryan from Securities. And Thank JMP

open. Your line is

everyone. morning, Good thanks. Great,

Good Devin. morning,

Good morning, Devin.

guess, question increased the appreciate I investment here, I first detail. just banking

markets to follow-up an just sure Just advisory underwriting that capital we for fee? then a versus for you’re clarification, the an want that. on receiving make I is have I And advisory, where understand transaction that. fee

Yes, that right. is exactly

under I used that advisory. easier of placement capital and it’s privately-placed It’s moniker. in convention, So – to capital separate but see as a markets you better uses. think fees, Devin, really we transactions private equity We our for debt and underwriting the markets, industry will with most lump fall to that think revenues,

you balance the just plain that, get can business better diversification from adjusted we’ve a sense underwritings. and equity So in so the for away

Yep.

Jeff. Thanks, I great. appreciate Okay, that.

little purely seeing such this the is capital? And perspective, And sounds place, I is just business? you’re reopen curious, so bit being to kind where markets healthcare else capital in banking why it seeing get the I’m And certain need a dig of something want is investment kind underwriting kind So the in that’s and healthcare some more dynamic, like so of window areas. there into in ultimately to within outlook. or window a of companies just you’re great

the that to refocus there’s out be healthcare more then health how does think that would And probably in picture, this. mean the for coming potentially more what going I of capital industry? And capital business? into pandemic bigger does flowing this

guys curious just about how I’m thinking you so that clients that? advising And around and are

Yes.

it’s question. So good a

doing tools April, first question testing and we saw no say, I more actually diagnostics there’s number that was COVID-XX. actually market capital. the reopened area of use there’s the companies tools So their diagnostics clearly, and a technology to are biotech access reasonably for companies around racing in companies and that to be to is, quickly, would that

bring environment. and mechanisms just in helping companies involved where can in raise robust to COVID-XX pretty look raising we’re to of they we’re and certainly, money that a ways very but It quickly, are situations, market that number have wasn’t at them capital that, testing product a actually to

saw industry this IPOs is move and to open. we will And commercial These that access shareholders. the of couple the good element the from early-stage off to companies of last and of news Immunomedics companies what also certainly I their follow-on, that market and biotech is think back – had week that for a increasing capital ability is indicative does. unlocks the development their companies But

was to it that million million. got a deal $XXX upsized $XXX deal, so, And

So it shows that flows healthcare. still there’s into capital significant

We have the as not all. seen And open. in fact And look that that the the at should at period, financing for a the biotech fact sets, performing is reverse this it are time give you available the industries entire with strongest you industries markets indication the to pretty companies opportunity that for good is them.

in of amazing from industry a in boy, being. that the the companies if being that think for for I think, was end was the ability people into hope. had time year. around halls the It’s the of terms something these pricing to drug some towards you will, doing really We policy hero that I this I the that thrown the gone big for concern It’s who are have And And COVID-XX. little abated rhetoric we’ve remains, cures and has their whipping of known. coming around always has we with things the think of if year government how – interesting election find anything, actually to

that companies on relying up cures we’re now, frankly, clients of ours, with to are come for help And this.

their space. to focus allocations I the that investors to so And think, helped really has

you feel and of of opportunity to when front in incredibly environment at us, at So the be fortunate very you in set regulatory and the just the a look robust, meaningful look it are like, we way. that center in I remains

follow-up the Maybe business. Great just on color. you. Thank here brokerage a

it a strength lot about, the that strong. month, sounds comments the phenomenal a the quarter high, market had April heard in But was bit. maybe abated the of activity across of I was a volume in the but and Board. I has you quite beginning volatility the volatility, So still like and there, know remaining

attribute the would or kind are then me, finish type you started? did excuse same seeing month that Board? continued And the finish really that of with across it to? So – XQ of given kind I’m curious was some that about so the to Just think momentum still you sounded strength through was like – and the of quarter what of it month-end of kind it strong, takes the but it try puts

QX of the So losses. inventory you net numbers show

always a of lot have you show just more clients, number. I net, speaking, a many, because not very don’t generally but was of meaningful think So we a meaningful facilitating when We it’s And misleading. not month flow volatility. The a it’s little March there’s for bit number. we’re

So commission gross of significantly that than out the dollars, is if that, that what’s see were those we obviously, to because we’re showed. I drawdowns, And portfolio we’re break derisked you’d changed early. higher million $XXX we incurring inventory not kinds

And so in there – we’re not seeing those at all the month April. of

remaining the risk have we in rally. we’ve that on seen fact, So, positions

and the continue but been not lack been having that volumes – would say, to I’ve trading. be of of, just Are impact from high interactions. a case level negative engage in our the terms strong, that level engagement And at. clients? pleasantly the daily look we any Will is client that, said the we’re that’s the certainly at continuing it’s thing and with efforts I that with really we to continue? of the I’ve Having the facilitation pleased

what to trade be and we’ve with more So, think expect little going transacting we’re But what continue a seen to market volumes. in we’ll from April I in we is, a bit of the on inventory that that the will much not than were crisis. taking March. month And we higher the be of into kind difference the coming we in we’re drawdowns had level

Got it.

of stock value. the of tangible strong to a just I is, substantial made to if to then And levels very the Okay, a relative of pretty just it’s given of lot book sheet just think from possible about great. sheet. maybe balance like looks were And just today the changes just the that as there what pretty think, and And you quarter perspective clearly, quarter the had these derisked you stock it? then the on bigger picture And discount calculus, one the balance middle repurchases. at a kind attractive people’s

trying puts not here and complicated. to calculus just that about the ability at this that has stock terms think given may so I even price in of to non-core maybe And maybe the last. the some and But changed that, of just exit takes the know is it’s of some to the urgency do investments,

So of puts those think the sheet? trying around and some takes just to about balance

right. All

different that three like question. there’s So parts of

let just – start So with sheet. let the a balance take risk me me on

seen, sheets anymore. coming have not this, over of balance that So, significant just balance we’ve because said run amount market a again, and meant be did to not into And we are that sheet the we over heard. way don’t certainly, directionality

when have exposure.” something deviation a exposure impacted in that Obviously, directionality in back that. generally the spreads, I doesn’t I we exposure. and wish market did one that’s will We multi-standard that say, we levels think us. – I world had, risk it look Even less “Man, reduced you had have not significant there’s don’t taker And at have ever move a

well that we the liquidity, and to reduce liquidate We spread grease we ourselves. the that do of as because do exactly really take way on could Fed was that, care pain really our ask tight risk, ensure take got you’d things in Fed to we don’t to the had risk skids that, to we steps if in reached view primarily questions of limits, on doing stepped which very do. own our that in some our portfolios felt been us And meaningful to problematic. was And hadn’t what in expect and to limits are we So advance widening. have here a

just than The was mean, witnessed what performance. drawdown markets. a less – actually, an significantly in it the basis, – amazing equity amazing we – an relative you I on equity had in was

in is And exposure. and we’ve Operating the see honestly, you and because make a so a it wide to to be event-related that money at lower the and loss and spread-related level, spreads without much down can decent be continues we division Company activities, continue largely exposure taken as

the in what significant as get the – think a So remain portion occur times happening April in events we alpha – we lost in month beginning positive spreads – ends you up of that’s after decent seen I of of us and in have we it certainly all we allowed this portfolio, like what opportunistic to widen the when March. remains recover alpha

we as level. the to a risk even sheet keep – that balance So, continue reduced at

around Co, was was of the I the I but… can’t question, more the or Your part Asset remember, second think, third question that

Yes.

in that’s think –and quarter of I some that’s aggressive – get well? the context on the then here. But the repurchase as And yes, stock potentially some monetize investments ability the of given second how where to just were how just part. these past just you is in on perspective

Yes.

on Co I we… Asset So think the levels,

Sorry?

actually so On the has been – Co Linkem, year. dispositions, Linkem early we Asset to with performance operating going of better. as the course, be the would did irony I that anticipate as never mean offering Linkem an this, at is through in relates it not of I the process

has terms We’ve changed our the talked unilaterally of so, could nothing that timing. we And here. in act about possibility

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for questions. leave I’ll terrific. Thanks it taking Okay, my there.

thanks. Hey,

from Thank Sandler. comes Piper you. next question And from Mody Sumeet our

Your line open. is

morning, Good Thanks. guys.

And the appetite had Just about to the kind management outbreak on you wanted what front. pipeline have do strategies? asset wanted over the an I client expect And fundraising some of fee talk you then on planned has to update pivot this for alternative for the guys get of effect maybe that? to this year? maybe What year. of for on rate raising some your

a It’s question. Yes. great

see very at March, opportunities during in of final to announcement. all to we do make strong that, an because subsequent leave And the we Cowen some the we’ll I when had the closing. need we’ve Healthcare month probably interest it portfolio. do So Investments even continued closing, to

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that well And in known so we’re – space. obviously, and

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have funds a So dry feels with the two the good. pretty of in I powder. fact That love space that we healthcare lot

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good have incremental pretty actually, that, to about – and feel continued subscriptions they’ve So in. reopened they’ve taken some and

AUM So I where we wise. feel pretty good are about

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investment, If the to at sustainability fund of a the a opportunities healthcare have actually like allocator an lot time you you look are fund. and private like in –

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that year. and the allocators continue of are we additional So along we further in to asset move the closings hope sustainability at and to looking have space, clients who are the as queue, to back-half hit in for our we

color market it’s debt investment my there considering thanks. the on that in and appreciate much years. you’ve lot Great, But questions side. U.S. I know all set Maybe best and seen something I the in quarter expand of on been capital five-plus last I the And in about years. just have Europe, we’ve answered. a couple not talked one the it’s of opportunity then think banking, on

And you locked whilst capturing guys I the being there keep just now? up, quarter, have, what’s a that last little maybe bit ball this an Europe but about update Just know rolling of terms out capacity in talked there about talk environment. in you

Yes.

go, of April, start quarterly closed quarter the ready Europe, me March are and in So of even first the quarter. rails a seen. they’re we’ve think which with during transactions transactions the number Europe that going And And signed let is, actually We generally, much is to actually you seeing they of I in and in they’re we’re actually. strongest what of had have beginning in endemic to and that one performances it close. saw the pretty on M&A if

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actually, the on And real a so positive. M&A that’s front, actually

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beginning at our and business when business that continue at the so robust our advisory placements more than to includes different been execution last into of conversations was a around pace. for has actually that debt was integrated – just move pipeline sort year the platform. And year fairly sort never the team the rapid private our and Cowen for of That’s it of getting I

about good really feel I So that.

you have questions. guys. Great. Thanks the for That’s taking I for all

Thanks, Sumeet.

turn conference that remarks. for the And Solomon now conclude closing you. session any to question-and-answer I’d like for back today’s Thank the does conference. Jeffrey to over

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soon. and look our it. next we forward July. us, you call Talk you for we really appreciate all speaking So to do joining again in with Thank on

Ladies gentlemen, conference. does This in today’s the you program. for conclude thank participating and

wonderful all disconnect. have may a You Everyone, day.