In a world where Internal Rate of Return (“IRR”) once reigned as the gold standard, LP sentiment has shifted toward Distributions to Paid-In Capital (“DPI”) as the leading indicator of success. This is hardly surprising – the tightening liquidity environment, higher interest rates, and subdued exit markets have forced investors to focus on realized returns over paper markups. Across Southeast Asia, this paradigm shift is reshaping how GPs approach liquidity and what LPs expect in return.
Why DPI is the New IRR
