Pay for Performance from Future Fund Flows: The Case of Private Equity

Lifetime incomes of private equity general partners are affected by their current funds’ performance through both carried interest profit sharing provisions, and also by the effect of the current fund’s performance on general partners’ abilities to raise capital for future funds. We present a learning-based framework for estimating the market-based pay for performance arising from future fundraising. For the typical first-time private equity fund, we estimate that implicit pay for performance from expected future fundraising is approximately the same order of magnitude as the explicit pay for performance general partners receive from carried interest in their current fund, implying that the performance-sensitive component of general partner revenue is about twice as large as commonly discussed. Consistent with the learning framework, we find that implicit pay for performance is stronger when managerial abilities are more scalable and weaker when current performance contains less new information about ability. Specifically, implicit pay for performance is stronger for buyout funds compared to venture capital funds, and declines in the sequence of a partnership’s funds. Our framework can be adapted to estimate implicit pay for performance in other asset management settings in which future fund flows and compensation depend on current performance.Private equity; Venture capital; Fundraising; Compensation; Incentives

Aims for service user involvement in mental health training: staying human

Purpose: Studies have examined the impact of service user involvement in mental health training but little is known about what staff, trainees and service users themselves want to achieve. Methodology: Three separate focus groups were held with service users, training staff and trainees associated with a clinical psychology training programme. Thematic analysis was used to identify aims for involvement. Findings: All groups wanted to ensure that future professionals “remained human” in the way they relate to people who use services. Service user and carer involvement was seen as a way of achieving this and mitigating the problem of “them and us thinking”. We found that groups had some aims in common and others that were unique. Service users highlighted the aim of achieving equality with mental health professionals as an outcome of their involvement in teaching. Research limitations: The samples were small and from one programme. Practical implications: Common aims can be highlighted to foster collaborative working. However, the findings suggest that service users and carers, staff and trainees may also have different priorities for learning. These need to be recognised and addressed by mental health educators. Originality/value: This was the first study to explore in depth the differing aims of different stakeholder groups for service user involvement. Clarification of aims is a vital first step in developing any future measure of the impact of service user involvement on mental health practice

Melanistic Tundra Voles, Microtus oeconomus, from Central Yukon

Colour aberrations are not commonly observed in voles (e.g., Microtus and Myodes); thus, individual observations are of interest. We report two observations of melanism in Tundra Voles, Microtus oeconomus, collected from central Yukon. These are the second and third records of melanistic Tundra Voles, and the first reports from non-insular populations

Atomic clocks with suppressed blackbody radiation shift

We develop a nonstandard concept of atomic clocks where the blackbody radiation shift (BBRS) and its temperature fluctuations can be dramatically suppressed (by one to three orders of magnitude) independent of the environmental temperature. The suppression is based on the fact that in a system with two accessible clock transitions (with frequencies v1 and v2) which are exposed to the same thermal environment, there exists a "synthetic" frequency v_{syn} (v1-e12 v2) largely immune to the BBRS. As an example, it is shown that in the case of ion 171Yb+ it is possible to create a clock in which the BBRS can be suppressed to the fractional level of 10^{-18} in a broad interval near room temperature (300\pm 15 K). We also propose a realization of our method with the use of an optical frequency comb generator stabilized to both frequencies v1 and v2. Here the frequency v_{syn} is generated as one of the components of the comb spectrum and can be used as an atomic standard.Comment: 5 pages, 2 figure

3C 295, a cluster and its cooling flow at z=0.46

We present ROSAT HRI data of the distant and X-ray luminous (L_x(bol)=2.6^ {+0.4}_{-0.2} 10^{45}erg/sec) cluster of galaxies 3C 295. We fit both a one-dimensional and a two-dimensional isothermal beta-model to the data, the latter one taking into account the effects of the point spread function (PSF). For the error analysis of the parameters of the two-dimensional model we introduce a Monte-Carlo technique. Applying a substructure analysis, by subtracting a cluster model from the data, we find no evidence for a merger, but we see a decrement in emission South-East of the center of the cluster, which might be due to absorption. We confirm previous results by Henry & Henriksen(1986) that 3C 295 hosts a cooling flow. The equations for the simple and idealized cooling flow analysis presented here are solely based on the isothermal beta-model, which fits the data very well, including the center of the cluster. We determine a cooling flow radius of 60-120kpc and mass accretion rates of dot{M}=400-900 Msun/y, depending on the applied model and temperature profile. We also investigate the effects of the ROSAT PSF on our estimate of dot{M}, which tends to lead to a small overestimate of this quantity if not taken into account. This increase of dot{M} (10-25%) can be explained by a shallower gravitational potential inferred by the broader overall profile caused by the PSF, which diminishes the efficiency of mass accretion. We also determine the total mass of the cluster using the hydrostatic approach. At a radius of 2.1 Mpc, we estimate the total mass of the cluster (M{tot}) to be (9.2 +/- 2.7) 10^{14}Msun. For the gas to total mass ratio we get M{gas}/M{tot} =0.17-0.31, in very good agreement with the results for other clusters of galaxies, giving strong evidence for a low density universe.Comment: 26 pages, 7 figures, accepted for publication in Ap

Magneto-shear modes and a.c. dissipation in a two-dimensional Wigner crystal

The a.c. response of an unpinned and finite 2D Wigner crystal to electric fields at an angular frequency $\omega$ has been calculated in the dissipative limit, $\omega \tau \ll 1$, where $\tau ^{-1}$ is the scattering rate. For electrons screened by parallel electrodes, in zero magnetic field the long-wavelength excitations are a diffusive longitudinal transmission line mode and a diffusive shear mode. A magnetic field couples these modes together to form two new magneto-shear modes. The dimensionless coupling parameter $\beta =2(c_{t}/c_{l})|\sigma_{xy}/\sigma_{xx}|$ where $c_{t}$ and $c_{l}$ are the speeds of transverse and longitudinal sound in the collisionless limit and $\sigma_{xy}$ and $\sigma_{xx}$ are the tensor components of the magnetoconductivity. For $\beta \geqslant 1$, both the coupled modes contribute to the response of 2D electrons in a Corbino disk measurement of magnetoconductivity. For $\beta \gg 1$, the electron crystal rotates rigidly in a magnetic field. In general, both the amplitude and phase of the measured a.c. currents are changed by the shear modulus. In principle, both the magnetoconductivity and the shear modulus can be measured simultaneously.Comment: REVTeX, 7 pp., 4 eps figure

Can a stress management programme reduce stress and improve quality of life in people diagnosed with multiple sclerosis?

Background Despite evidence of perceived stress as a risk factor for multiple sclerosis activity, the evidence for managing stress is limited. Objective To evaluate a stress management programme on perceived stress and quality of life, over 6 months. Methods One hundred people with multiple sclerosis were randomly assigned to either a stress management programme of mindfulness, meditation and progressive muscle relaxation, or wait list. Perceived stress and quality of life were assessed at three intervals across 6 months. Salivary cortisol levels were assessed at two intervals: baseline and first follow-up. Results The stress management programme did not significantly reduce perceived stress, when comparing mean scores. Secondary analysis using median scores found a significant improvement for quality of life, favouring the intervention group. Conclusion Stress management had no significant effect on the primary outcome of perceived stress but did improve quality of life in a secondary analysis of median scores