# DPI — Distributions to Paid-In

**DPI** (Distributions to Paid-In Capital) measures the realized portion of a fund's return — the cash (or in-kind securities) actually returned to LPs to date.

## Formula

```
DPI = Cumulative distributions / Paid-in capital
```

A DPI of 0.8× means LPs have received 80 % of the capital they put in. A DPI of 1.0× or above means LPs have at minimum recovered all contributed capital.

## Relationship to TVPI and RVPI

```
TVPI = DPI + RVPI
```

DPI and [RVPI](/reporting-and-metrics/rvpi.md) are the two components of [TVPI](/reporting-and-metrics/tvpi.md):

* **DPI** = value already realized and in LPs' hands (zero counterparty risk).
* **RVPI** = value still held in the portfolio (must still be exited to convert to cash).

A fund with high TVPI but low DPI has most of its return still in unrealized portfolio positions — that value is subject to market risk until converted to distributions.

## The J-Curve Effect

In the early years of a fund, DPI is always 0× — the GP is calling capital and deploying it, with no exits yet. DPI then rises as investments are exited. This characteristic pattern of early cash outflows followed by later inflows is called the **J-curve**.

```
Year 1–3:  DPI ≈ 0×        (investment period, few exits)
Year 4–6:  DPI ≈ 0.3–0.8×  (first exits)
Year 7–10: DPI ≈ 1.5–2.5×  (harvesting phase)
```

LPs use DPI to assess whether a fund is actually returning cash, rather than just marking up unrealized positions.

## Gross vs Net DPI

|               | What is excluded                                       |
| ------------- | ------------------------------------------------------ |
| **Gross DPI** | Before management fees, expenses, and carried interest |
| **Net DPI**   | After all fees and carry — actual cash received by LPs |

GPs report both; net DPI is the LP-relevant figure. In funds with a European (whole-fund) waterfall, carry is not paid to the GP until LPs have received DPI of 1.0× (full return of capital) plus the preferred return — so DPI also gates when the GP earns carry.

## How Gildi Computes DPI

DPI is computed per-LP and at the fund level on every reporting date:

* **Cumulative distributions**: all settled distributions to that LP in the fund's base currency, including in-kind distributions at their [fair value](/reporting-and-metrics/fair-value.md) at distribution date.
* [**Paid-in capital**](/fund-mechanics/paid-in-capital.md): cumulative settled contributions.

DPI is displayed on the LP fund overview page alongside [RVPI](/reporting-and-metrics/rvpi.md) and [TVPI](/reporting-and-metrics/tvpi.md).


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