Cryptocurrency Q&A What is the DPI of cash on cash?

What is the DPI of cash on cash?

CherryBlossomDance CherryBlossomDance Mon Oct 21 2024 | 7 answers 1809
I'm trying to understand the concept of cash on cash return in investment properties. Specifically, I want to know what DPI, or dollars per inch, means in this context of cash on cash. What is the DPI of cash on cash?

7 answers

Riccardo Riccardo Wed Oct 23 2024
DPI, or Distribution to Paid-In Capital Ratio, serves as a crucial metric in evaluating the performance of a private equity fund.

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GeishaMelody GeishaMelody Wed Oct 23 2024
It measures the cumulative value of distributions made to investors in relation to the initial capital invested.

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Nicola Nicola Tue Oct 22 2024
Essentially, DPI provides a snapshot of the cash return on investment for the investors, expressed as a multiple of their paid-in capital.

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Daniela Daniela Tue Oct 22 2024
Additionally, it can be used to benchmark a fund's performance against industry peers and to assess the potential for future distributions.

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alexander_rose_writer alexander_rose_writer Tue Oct 22 2024
A DPI greater than 1 indicates that investors have received more in distributions than they initially invested.

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