easy · Private Credit & Debt fund-structures-returns-economics

In private credit fund terminology, what does the 'DPI' (Distributed to Paid-In) multiple specifically measure?

  1. The total estimated value of the portfolio, including unrealized gains, relative to the total cost
  2. The percentage of the loan portfolio that is currently making its interest payments in-kind (PIK)
  3. The ratio of cumulative cash distributions received to cumulative capital contributed by investors
  4. The annual net interest income generated by the fund divided by its gross assets

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