Steven Richman Discusses DPI Calculations in Private Equity Law Report

Private Equity Law Report quoted Seyfarth Institutional Investors practice chair Steven Richman in its article, “Growing Use and Misuse of DPI Calculations to Assess Fund Performance,” on June 27. Richman discussed that, while there is a generally accepted formula for distri­butions to paid-in capital (DPI), it's important to recognize that different metrics come into play depending on whether one is measuring gross or net DPI.

“If you look back ten to fifteen years ago, some funds were coming back to market on a fairly defined, periodic basis - roughly every three years. Everything accelerated during the coronavirus pandemic, however.”

The full article is available here.