DPI (Distributions to Paid-In) measures the realised return of a private equity fund — the cash actually distributed to LPs relative to the total capital called. It is the "cash-on-cash" component of the TVPI, representing the portion of the return that has been crystallised through actual exits. A DPI of 1.0x means the fund has returned exactly the invested capital in cash; above 1.0x, LPs are in profit on a cash basis. DPI is the most objective performance metric because it is based on actual cash flows, not on GP-estimated NAVs.

DPI is particularly relevant in fund maturity analysis: in the early years of a fund's life (years 1–5), DPI is typically below 1.0x as the portfolio is still being built and exits have not yet occurred. The DPI typically inflects upward in years 5–8 as the portfolio matures and exits are realised. By the fund's natural end (year 10–12), the DPI should approach or exceed the TVPI — meaning all or most of the value has been distributed in cash rather than remaining as unrealised NAV.

A fund with a high TVPI but low DPI (and correspondingly high RVPI) raises questions: either the unrealised assets are genuinely valuable and soon to be exited, or the NAV is overstated and the fund is deferring exits to avoid crystallising losses. In LP due diligence, analyzing the DPI trajectory alongside exit timing and asset age is a key diagnostic for assessing the quality of the GP's track record.

At Hectelion, we analyze DPI, RVPI and TVPI trajectories in our LP advisory and fund due diligence mandates in the fundraising practice.