Boutique investment bank Cowen Group more than doubled its profits in 2006, bringing the firm into profit for the year despite lacklustre third-quarter performance in its core investment banking business.

Cowen reported net profits of $37.8m (€29.1m) for all of 2006, more than twice as much as the $12.1m the company earned in 2005. Investment banking drove the rise in revenues because of healthy environment for public and private capital, the firm said.