Performance
Distributions to Paid-In (DPI)
Cumulative distributions divided by paid-in capital - the realized portion of the return.
DPI is the truest measure of cash returned to LPs. Unlike TVPI or NAV-based metrics, it cannot be inflated by optimistic marks.
DPI of 1.0x means the LP has received back all the capital they put in. Top-quartile mature buyout funds typically reach DPI of 1.7x or higher by year ten.
In the current environment of slower exits, monitoring DPI growth quarter over quarter is one of the most important coverage activities for a private markets program.