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Understanding DPI Investment in Private Equity: What You Need to Know

 
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Exploring the significance of DPI in private equity investments.

description: an anonymous image showing a group of business professionals discussing dpi investments in a modern office setting, with graphs and charts displayed on screens in the background.

Alaska Permanent Fund Corporation's director of private equity Allen Waldrop sat down with PEI's Madeleine Farman on the sidelines of PEI to discuss the current state of DPI investment metrics and their impact on the private equity landscape. How is the distributions paid-in metric faring, and what does DPI tell us about the state of play in private equity?

The 2006 vintage of buyout funds will always be remembered with a certain measure of dread by private equity investors who lived through the global financial crisis. However, understanding metrics like DPI can provide valuable insights into the performance and potential risks associated with private equity investments.

PitchBook's fund returns data is primarily sourced from individual LP reports, serving as the baseline for our estimates of activity across an entire fund. This data allows investors to track the progress of their investments and make informed decisions based on the DPI metric.

The Group of Seven's (G7) recent entry into the digital public infrastructure (DPI) debate marks an important shift in the winds of global digital governance. As governments and organizations around the world begin to recognize the importance of digital infrastructure, DPI investments are becoming increasingly relevant.

DPI, BII and the EBRD, founding investors in KELIX bio, have entered into a binding agreement to fully exit their investment. This highlights the role of DPI in facilitating successful exits and generating returns for investors.

This working paper presents an alternative approach to DPI deployment: the “DPI as a packaged Solution” (DaaS) model. By packaging DPI investments in a structured manner, investors can optimize their returns and manage risks more effectively.

In 2024, countries will move beyond exploring and understanding DPI to actively plan their digital transformation with DPI as an accelerator. DPI investments are expected to play a crucial role in driving economic growth and innovation in the digital age.

As countries continue their digital transformation journeys, investment in DPI can become a crucial tool to improve overall well-being and drive sustainable development. By leveraging DPI investments, governments and organizations can create a more resilient and inclusive digital infrastructure for the future.

Labels:
dpi investmentprivate equitydistributions paid-in metricpitchbookg7digital public infrastructurekelix biodaas modeldigital transformationeconomic growthsustainable development
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