[Verse 1] Private equity fund's got money flowing in Investors write their checks, the game begins Years go by, the fund starts distributing Cash comes back, but how do we measure wins? Three magic ratios tell the tale complete DPI, RVPI, TVPI - numbers we need [Chorus] Distributed over Paid-In, that's DPI Cash you've gotten back divided by what you supplied Residual Value over Paid-In, RVPI's the key What's still locked up, unrealized but free Total Value over Paid-In, TVPI shows all Add them up together, see the fund's total haul [Verse 2] DPI measures realized returns in hand Dollar fifteen back means profits fifteen grand Per hundred that you paid into the fund Real money in your pocket when it's done But that's just half the picture, don't you see Unrealized value waits patiently [Chorus] Distributed over Paid-In, that's DPI Cash you've gotten back divided by what you supplied Residual Value over Paid-In, RVPI's the key What's still locked up, unrealized but free Total Value over Paid-In, TVPI shows all Add them up together, see the fund's total haul [Bridge] RVPI holds tomorrow's promise tight Portfolio companies growing out of sight Mark-to-market valuations tell us what they're worth Waiting for the harvest, calculating birth When RVPI turns to DPI at exit time That's when paper profits turn to dollar signs [Verse 3] TVPI combines both sides of the equation Distributed plus residual calculation One point five means fifty cents of gain For every dollar in the investment game Track these metrics through the fund's lifecycle Watch the ratios dance, precise and nice [Chorus] Distributed over Paid-In, that's DPI Cash you've gotten back divided by what you supplied Residual Value over Paid-In, RVPI's the key What's still locked up, unrealized but free Total Value over Paid-In, TVPI shows all Add them up together, see the fund's total haul [Outro] D-P-I for cash returned R-V-P-I for value earned T-V-P-I shows the sum PE metrics, now you've won
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