Calculate Distribution to Paid-In Capital

Distribution to Paid-In Capital (DPI) measures the sum of the proceeds returned by a Private Equity fund to investors relative to the total paid-in capital.  This is also known as the realization multiple, as it can be seen as representing realized gains.

The formula for the DPI ratio is straightforward:

Sum of Distributions
Sum of Paid-In Capital

Sum of Distributions: Cash returned to Limited Partners by Fund
Sum of Paid-in-Capital: Total money called in from Limited Partners to Fund

Inputs

There are four inputs for the calculation of the Distributed to Paid-In Capital ratio.

Sum of Contribution Cash Flows

Total of all paid-in cash flows for the LP investment throughout the date range of the calculation. 

Sum Distribution Cash Flows

Total of all cash process received from the fund to the LP throughout the date range of the calculation.

Begin Date

The first date of the time range and the first date cash flows are eligible to be included in the calculation.

End Date

The last date of the time range and the last date cash flows are eligible to be included in the calculation. 

Example

LPCALL is the transaction type in the CASHDBO.CASH_ACTIVITY table for contribution called in by the Fund.  LPCASH is the transaction type for distributed cash from the fund to the LPs. This example sums the distributions and contributions and results in a DPI=.028.

Eagle Performance Money Multiple Fields

The DPI Multiple is an option in Money Multiple field types. Money Multiple field types are found in General Reporting in the Custom fields folder. Once a new Money Multiple field is created, you can select the Money Multiple Distribution to Paid in Capital option.

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The Money Multiple field type is also available in Metadata Center.  You can find Money Multiple fields under Direct and Derived fields and setting the field type parameter to Money Multiple.

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Use Cash Flows Across a Date Range

The Money Multiple field type is a Performance Calculation based field. It works off the CASHDBO.CASH_ACTIVITY table and HOLDINGDBO.POSITION_DETAIL table. Money multiple fields offer the capability to sum cash flows across a time range. The cash flows are selected using the Cash Adjustment field logic to identify flows that meet the specific criteria for Private Equity contributions of distributions.

With a Cash Adjustment field you can use security reference data as well as cash transaction data to select the correct flows. In this example, the Cash Adjustment field has Capital Base Fund Investments selected. These are private equity investments, transactions types equal to LPCASH, and event types equal to RECPTS (receipts) to define distributions to LPS.

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Define the Date Range

Begin Date

You can define the begin date by selecting a specific date or using the date macros provided in the Begin Date options. For Performance Composites (ACOM) the inception date is the most recent date of the membership Start Date or the Inception Date within the member’s range. For Reporting Composites (COMP) the Inception Date is simply the member inception date for the members as of the report's end effective date.

End Date

The field’s end date is always the end date of the calculation single period in each performance calculation result.

Build Money Multiple Fields

Money Multiple fields are designed for Performance Calculation reports.

Add to a Report and Field Rule

You can select the fields from the Custom folder in General Reporting or by selecting Money Multiple as the field type in the Metadata Center. All Money Multiple fields in a Field Rule must have the same begin date. If not, the report will result in an error and result in null values in the report.

Field Options

 View the Results

DPI field results show up only on the security rows which have cash flows that meet the criteria of the Cash Adjustment field selected and the rollup level of the report. 

Along with the DPI field the report results also automatically display the supporting sums of Distributions Cash Flows (DCF) and Contributions Cash Flow (CCF) in the results at the security and rollup levels.

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