Distributed to Paid-In (DPI)
Distributed to paid-in (DPI) is the ratio of cumulative distributions made to investors to the capital those investors have contributed to the fund.
DPI measures realized distributions
The basic formula is:
DPI = cumulative distributions ÷ paid-in capital
ILPA defines DPI as money distributed to LPs relative to their contributions.[1]
Because the numerator is distributions rather than remaining portfolio value, DPI is commonly treated as a realization-focused private-fund metric.
Example
Assume LPs have contributed $80 million to a fund.
The fund has distributed $60 million back to them.
DPI = $60 million ÷ $80 million = 0.75x
A 0.75x DPI means investors have received distributions equal to 75% of the capital contributed under the applicable reporting convention.
If total distributions later reach $120 million while paid-in capital remains $80 million:
DPI = 1.50x
The fund has then returned one and a half times contributed capital in distributions.
Why DPI matters when private assets are hard to value
Unrealized private investments do not have continuously observable market prices. Their reported values rely on valuation processes and assumptions.
DPI is less dependent on those marks because it focuses on value already distributed.
CFA Institute research describes DPI as distributions received by LPs divided by their capital contributions and notes that it excludes unrealized portfolio holdings.[2]
That makes DPI especially useful when asking:
How much value has actually come back?
It does not answer whether the remaining portfolio is valuable or whether the fund produced an attractive annualized return.
DPI can lag early in a fund’s life
A young private equity fund may spend several years calling and investing capital before exits generate significant distributions.
Low early DPI therefore does not automatically mean the portfolio is failing.
Fund age, strategy and realization cycle matter. Venture funds can take longer than some buyout strategies to produce exits, while secondary strategies may return capital sooner.
Comparisons should be made among reasonably similar funds and vintage years.
DPI versus TVPI
TVPI includes both:
- distributions already made
- remaining reported value
DPI includes only the distribution side.
If a fund has:
- paid-in capital of $100 million
- distributions of $40 million
- residual value of $110 million
then:
DPI = 0.40x
TVPI = 1.50x
The 1.10x difference between TVPI and DPI is the residual-value component, reflected through RVPI.
Recallable distributions require attention
ILPA notes that, under the convention cited in its glossary, recallable distributions are included in the DPI numerator and reinvested capital resulting from them is included in the denominator.[1]
That means cash-flow labels and fund-document mechanics can matter when reconciling a reported DPI calculation.
Common mistakes
“DPI above 1.0x means the whole fund is finished.”
No. A fund can have DPI above 1.0x while still holding valuable investments.
“Low DPI proves poor performance.”
Not by itself. Fund age and realization timing matter.
“DPI includes unrealized NAV.”
No. That component belongs in RVPI and therefore TVPI.
“DPI tells the annualized return.”
No. DPI is a multiple and does not account for the timing of distributions.
Example
An investor evaluating Distributed to Paid-In (DPI) should identify the calculation convention or governing-document treatment before comparing the figure across funds.
Professional note
For mature private funds, the gap between TVPI and DPI can be as informative as either metric alone. A high TVPI supported by high DPI has a different evidence profile from the same TVPI supported primarily by unrealized residual value.
Related terms
- Capital Commitment
A capital commitment is the contractual amount an investor agrees to contribute to a private fund when valid capital calls are made, subject to the fund documents.
- Capital Call
A capital call is a formal request by a private fund or its general partner requiring an investor to contribute a specified amount of previously committed capital by a stated deadline.
- Paid-In Capital
Paid-in capital is the amount of an investor’s committed capital that has actually been transferred to a private fund through capital calls.
- Internal Rate of Return (IRR)
Internal rate of return (IRR) is the discount rate that makes the net present value of an investment’s cash inflows and outflows equal zero.
- Multiple on Invested Capital (MOIC)
Multiple on invested capital (MOIC) is a ratio that compares the value generated by an investment with the capital invested in it.
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