Omnigence Releases White Paper on DPI in Private Equity Performance
For decades, Internal Rate of Return (IRR) has served as the primary benchmark for evaluating private equity performance. However, as liquidity conditions tighten and unrealized valuations persist for longer durations, allocators are increasingly focused on realized cash outcomes. The paper explores why Distributions to Paid-In Capital (DPI) is emerging as an important validation metric alongside IRR, offering a clearer view of liquidity and capital returned to investors.
The analysis outlines the structural limitations of IRR in today’s market environment, examines how IRR and DPI function as complementary measures of performance, and highlights how Limited Partners are recalibrating evaluation frameworks to prioritize demonstrable distributions. Drawing on current market data and industry research, the paper argues for an integrated approach that balances return potential with realized outcomes.
The full white paper is available in the Insights section at https://omnigenceam.com/insights/dpi-as-the-new-irr-updating-the-performance-evaluation-of-private-equity-for-allocators
About Omnigence Asset Management: Omnigence Asset Management is a Canadian alternative investment platform specializing in farmland, operational private equity, and secondaries. With offices in Toronto and Calgary, the firm is committed to helping investors preserve purchasing power and build durable portfolios in a structurally challenging macro environment. Omnigence has grown to over CA$1 billion in platform assets by focusing on what it describes as the neglected middle, investment opportunities that are too small or too operationally complex for large institutions and traditional alternative managers.
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Matt Barr
Omnigence Asset Management
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