Distributions to Paid-In (DPI)
Definition
DPI measures how much actual cash or stock a fund has returned to its limited partners divided by how much capital those LPs have paid in so far, making it the metric for realized, in-hand returns rather than paper gains.
How it comes up in fundraising
LPs watch DPI closely in a fund's later years because it is the only headline metric that reflects money actually distributed, as opposed to unrealized markups still sitting in the portfolio.
Frequently asked questions
How is DPI different from TVPI?
DPI counts only cash and stock actually distributed to LPs. TVPI adds the current estimated value of remaining, unsold holdings on top of what has been distributed, so DPI is always equal to or lower than TVPI.
What is considered a good DPI for a venture fund?
A DPI above 1.0x means the fund has already returned all invested capital in cash, which many venture funds do not reach until year seven or later given how long startups take to exit.
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