DPI (Distributed to Paid-In)
DPI (Distributed to Paid-In) measures how much cash a fund has returned relative to the capital investors have contributed.
Allocator relevance: A key realized performance metric used to assess cash return profile and liquidity outcomes—especially versus paper gains.
Expanded Definition
DPI focuses on realized distributions, making it one of the most trusted fund metrics for allocators. A high TVPI with low DPI can indicate that returns are still unrealized and dependent on future exits or valuation marks. DPI is therefore central to assessing liquidity timing and whether a manager converts value into cash.
DPI should be interpreted alongside fund age, strategy type, and market environment because early-stage strategies naturally have lower early DPI.
How It Works in Practice
Allocators calculate DPI from capital account statements and reporting packages. They track DPI progression over time and compare to vintage peers to evaluate whether distributions are on track.
Decision Authority and Governance
Governance uses DPI in re-up decisions, pacing models, and liquidity planning. Managers’ distribution and recycling policies also influence DPI progression.
Common Misconceptions
- DPI alone defines total performance.
- Low DPI always implies poor performance.
- DPI can be compared across strategies without context.
Key Takeaways
- DPI measures realized cash back to LPs.
- It is critical for liquidity planning and re-up decisions.
- Pair with TVPI and IRR for a complete view.