Distributions to Paid-in Capital
The realized portion of fund performance — how much cash a fund has actually returned to LPs per dollar they've paid in, excluding any unrealized value.
◆ Multiple
Cumulative cash distributed to LPs
Capital called from LPs to date
DPI — realized gauge
Enter distributions and paid-in capital to see realized value returned.
Formula
What it measures
The one number that answers 'how much real cash has come back to LPs' — unlike TVPI or MOIC, DPI contains no marks, projections, or unrealized value. It's the hardest, most conservative performance number a fund reports.
Why it matters
LPs distinguish 'paper returns' from real ones, and DPI is the metric that can't be inflated by optimistic marks. Institutional LPs often weight DPI heavily when re-upping into a GP's next fund, since it's proof of actual realizations rather than promised ones.
How to read it
DPI of 0.6x means LPs have received 60 cents back for every dollar they've paid in — still below their capital back, let alone profit. DPI naturally starts at 0 and climbs only as exits happen; a young fund with DPI near zero isn't underperforming, it simply hasn't had a realization event yet. DPI crossing 1.0x is the moment LPs have gotten their capital back in cash.
What good looks like
Good
DPI climbing steadily past 1.0x by year 8-10 of the fund, showing the fund is realizing gains, not just marking them up.
Watch
DPI still near zero well into a fund's harvest period, with performance carried entirely by unrealized value.
Bad
DPI stuck near zero with no realization events on the horizon — LPs have seen no actual cash back.
Watch-outs
- Treating a low DPI as underperformance without checking fund age — DPI is expected to be near zero for the first several years of most venture funds.
- Confusing DPI with TVPI, which includes unrealized value and will always be equal to or higher than DPI.
- Ignoring DPI in favor of TVPI alone — TVPI can be inflated by optimistic marks; DPI can't.
Worked example
Hypothetical
LPs have paid in $50M and received $32M in cash distributions to date. DPI = $32M ÷ $50M = 0.64x — 64 cents on the dollar has come back in cash so far.
FAQ
Why is DPI more trusted than TVPI by some LPs?
DPI reflects only actual cash returned — there's no valuation judgment involved. TVPI includes unrealized marks, which can be optimistic and haven't been tested by an actual sale.
What does a DPI above 1.0x mean?
It means LPs have received more cash back than they paid in — their capital is fully returned and everything from that point is profit, before accounting for any remaining unrealized value.
How fast should DPI grow?
It depends on strategy — buyout funds typically realize faster than early-stage venture funds, where meaningful exits often don't happen until years 6-10. Compare DPI against funds of the same vintage and strategy.
Related
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