An ancient scale with gold coins representing realized returns being poured out towards investors in a private equity context

Understanding the Realization Multiple in Private Equity and Venture Capital: What It Is, How it Works, and its Role in Private Equity Performance Measurement

Introduction to the Realization Multiple The realization multiple, also known as distributed to paid-in capital (DPI), is a crucial measure in private equity and venture capital investment. It represents the ratio of the cumulative distributions received by investors to their initial investment or the paid-in capital. This metric provides insight

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