DPI (distributions to paid-in capital)
DPI, distributions to paid-in capital, is the total cash and stock distributed to limited partners divided by the total capital they have contributed. It measures realised return and cannot be affected by unrealised marks.
Checked against our editorial standards
Example
LPs have contributed $40M to a fund and received $28M in distributions. DPI is 0.7x. Once distributions pass $40M the fund has returned capital and DPI is above 1.0x.
Confused with
TVPI. TVPI adds the unrealised value of what is still held. A fund can have a 3.0x TVPI and a 0.2x DPI for most of its life.
Related terms
- TVPI (total value to paid-in capital) TVPI, total value to paid-in capital, is the sum of distributions to limited partners and the current net asset value of the fund, divided by the capital LPs have contributed.
- Capital account A capital account is the running balance of a single partner's economic interest in a fund: contributions in, allocations of income, gains and losses, less distributions out.
- Distribution waterfall A distribution waterfall is the sequence in which a fund's proceeds are allocated between limited partners and the general partner, typically return of contributed capital first, then a preferred return to LPs, then a catch-up to the GP, then the remaining profit split at the carried interest rate.