Distributions to Paid-In (DPI) is a performance metric that measures the ratio of cumulative distributions returned to limited partners relative to the total capital they have paid into the fund. DPI of 1.0x means the fund has returned all invested capital; anything above 1.0x represents net profit to investors.
DPI is often considered the most reliable performance metric because it measures actual cash returned to investors, not unrealized paper gains. As the saying goes in private markets: 'You cannot eat IRR.' While IRR and TVPI can be influenced by unrealized valuations and timing effects, DPI represents money in the bank.
The progression of DPI over a fund's life follows a predictable pattern. In the early years (vintage years 1-4), DPI is typically near zero as capital is being deployed. The mid-life period (years 4-7) sees initial realizations and growing DPI. The harvest period (years 7-12) is when the majority of distributions occur. A well-performing buyout fund should achieve 1.0x DPI by year 7-8 and continue to grow from there.
Our database of 8,800+ fund commitments shows significant DPI variation by strategy. Mature buyout funds (10+ years) typically achieve DPI of 1.3-1.8x. Credit funds distribute earlier, often achieving 1.0x DPI within 4-5 years. Venture capital funds are the most bimodal, with top performers achieving very high DPI but the majority of funds failing to return capital.
When evaluating DPI, context matters enormously. Comparing DPI across funds of different ages or strategies is misleading. A 3-year-old fund with 0.2x DPI may be performing perfectly well, while a 10-year-old fund with the same DPI is clearly struggling. Our platform provides vintage-year adjusted DPI benchmarks and peer rankings.
DPI is increasingly used by institutional LPs to evaluate re-up decisions. A GP who consistently achieves 1.0x DPI before fundraising for the next fund demonstrates the ability to return capital on a timeline that supports portfolio rebalancing. This cash-on-cash return metric is the foundation of long-term LP-GP relationships.