Private Equity Terms

DPI = Distribution to Paid-In aka Realization Multiple. The realization multiple, in conjunction with the investment multiple, gives a potential private equity investor insight into how much of the fund's return has actually been "realized", or paid out, to investors.

Realization Multiple = Cumulative Distributions / Paid-In Capital (Contribution)

TVPI = Total Value to Paid-In aka Investment Multiple. It gives a potential investor insight into the fund's performance by showing the fund's total value as a multiple of its cost basis. It does not take into account the time value of money.

Investment Multiple = (Cumulative Distributions + Residual Value) / Paid-In Capital (Contribution)