CFA Level I · CFA Level I Exam · Alternative Investment Performance and Returns
A private equity fund has paid-in capital of $80 million, cumulative distributions of $24 million and a residual (net asset) value of $96 million. The fund's DPI is closest to:
DPI is cumulative distributions divided by paid-in capital, so 24 divided by 80 equals 0.30. It measures only cash already returned to investors and ignores the remaining unrealized value, which is captured separately by RVPI.
- A0.30Correct
- B1.20
- C1.50
Explanation
DPI = cumulative distributions / paid-in capital = 24 / 80 = 0.30. The 1.20 figure is RVPI (96/80), and 1.50 is TVPI (120/80).
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