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DPI (Distributions to Paid-In)
A fund performance metric showing actual cash returned to investors relative to invested capital.
Formula
DPI = Total Distributions / Paid-In Capital
Example:
- $100M fund, $95M called
- $150M distributed
- DPI = $150M / $95M = 1.58x
Definition
What is DPI?
DPI measures real, realized returns. It's actual cash distributed back to LPs divided by capital they invested. A DPI of 1.0x means investors got their money back. Above 1.0x means profit.
Why DPI Matters
Unlike TVPI, DPI is real money. Paper gains can evaporate, but distributions are permanent. Experienced LPs focus heavily on DPI, especially for mature funds. It's the ultimate scorecard.
DPI Timeline
Early funds have low DPI (few exits). Mature funds (8-12 years) should show meaningful DPI. A 10-year fund with low DPI raises questions about exit ability.
Example
Fund performance at year 8:
- Capital called: $100M
- Distributed: $180M
- Remaining portfolio: $50M
DPI = $180M / $100M = 1.8x (real returns)
RVPI = $50M / $100M = 0.5x (paper value)
TVPI = 1.8x + 0.5x = 2.3x
LPs have 1.8x their money back, with potential for more.
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