DPI (Distributed to Paid-In)
DPI measures realized returns by comparing distributions received to total capital contributed.
Definition
DPI reflects how much cash has been returned to investors relative to what they have paid in. It focuses on realized outcomes rather than interim valuations. Allocator Context Allocators often prioritize DPI for mature funds to judge realization quality. Early funds may have low DPI even with strong unrealized value. Decision Authority DPI is frequently used in re-up decisions and credibility assessments for emerging managers. Why It Matters for Fundraising Strong DPI signals realization capability; weak DPI with high IRR often drives deeper questions around valuation and exit feasibility. Key Takeaways Realized performance lens More meaningful later in fund life Strong signal for credibility Must be paired with TVPI/IRR