Glossary · Tax & Reporting
Distributions to Paid-In (DPI)
Distributions to paid-in (DPI) is the ratio of cumulative distributions a fund has returned to investors to the total capital they have paid in.
DPI, sometimes called the realization multiple, shows how much cash investors have actually received back relative to what they contributed. A DPI of 1.0x means investors have received their paid-in capital back; anything above 1.0x is realized profit.
Because DPI is based only on cash returned, it does not depend on valuations, which is why many allocators give it heavy weight when evaluating mature funds. It is reported with TVPI and IRR, and it rises over the fund’s life as investments are realized.
Pitfalls include including recallable distributions without disclosure, mixing gross and net figures, and inconsistent treatment of in-kind distributions of securities, which must be valued at distribution date. Because DPI only changes when cash is distributed, it moves in steps rather than continuously, and it is often the metric limited partners watch most closely as a fund enters its harvest period.
Example
Investors have paid in $50M and received $30M in distributions. DPI = $30M ÷ $50M = 0.60x. Investors need a further $20M of distributions to reach 1.0x.
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