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What are TVPI and DPI?
TVPI (total value paid in) and DPI (distributed paid in) are widely used measures in private equity. TVPI is the ratio between total value (TV), which is the sum of what has been distributed and the residual amount, and paid in (PI), the capital that has been called in to the investor. A TVPI of less than 1 means that the fund has destroyed value.
The DPI is the ratio between what has already been distributed to investors and the capital called up. A DPI of 1 means that the fund has returned exactly the same amount as the investor put into the fund. An IPR of 3 means that the fund has multiplied the investor’s contribution by 3.