DPI (Distributions to Paid-In) is the ratio of cash actually distributed to limited partners divided by the capital they have paid into the fund. Unlike paper-based metrics, DPI captures only realized, in-hand returns — a DPI of 1.0x means the fund has returned all paid-in capital.
DPI is read alongside TVPI (total value) and IRR: TVPI includes unrealized holdings, while DPI shows what has truly been cashed out. Early in a fund’s life DPI is low and rises as exits occur, making it a key measure of a manager’s ability to actually return capital, not just mark it up.