DPI

Worked example

A worked example of DPI vs. paper returns (illustrative figures):

1. A fund has called $100 million from its LPs and, to date, has distributed $60 million back in cash from realized exits.
2. DPI = $60M ÷ $100M = 0.6x. LPs have gotten back 60 cents in cash for every dollar they put in — the fund hasn't yet returned their full capital, let alone a profit, in cash terms.
3. The fund's GP also reports $50 million of remaining unrealized NAV in the portfolio. Including that, TVPI (total value to paid-in) is ($60M + $50M) ÷ $100M = 1.10x — a healthier-looking number, but 1.10x TVPI against 0.6x DPI means most of the "return" so far exists only on paper.
4. This gap is exactly what pushes LPs toward the secondary market: an LP who needs cash today can't spend a 1.10x TVPI mark, but they can sell their stake to a secondary buyer for cash now, at whatever discount to that NAV the market will bear.