CALGARY, ALBERTA, CANADA, March 14, 2024 / — Distributions to Paid-In Capital (“DPI”) measures the cash returns to investors relative to their initial capital. As professional capital allocators look to private equity for diversification and return benefits, it is valuable to consider how different private equity strategies may have different intrinsic DPI generating qualities.

A new Omnigence Asset Management report entitled DPI Maximization in Private Equity evaluates how a SME to Lower Mid-market roll-up (“SME Buyout”) strategy in an open-ended structure with non-discretionary cash flow sweeps (ongoing and on exits) can generate superior run rate DPIs compared to traditional private equity approaches such as MM to MM PE (“MM Buyout”).

Key Concepts:

• SME – small, medium enterprise

• PE – private equity

• MOIC – multiple of invested capital

• DPI – distributions to paid-in capital

• MM to MM PE is the strategy of acquiring mid-market size companies (EBITDA ~>$20M) and through roll-up or growth exiting when the company is still mid-market size (EBITDA ~>$50M).

• SME to Lower MM PE is the strategy of rolling up small & medium sized companies (EBITDA ~<$10M) to create lower-mid market sized companies (EBITDA ~$20M) for exit.

For a complimentary copy of this report, visit

Who is Omnigence Asset Management?

Omnigence team members act as principals of the GPs of a series of alternative funds focused on finding unique sources of return across a board spectrum of strategies. Core members of the team have been investing together since 2007 with a track record of generating returns for both institutional and retail investors. We prefer novel and underinvested segments of the alternative universe in which to deploy capital. We seek to access strategies that might otherwise might not be on the radar of most investors. Smaller can often be beneficial. Less financialized market segments often exhibit higher returns and better capital deployment prospects due to reduced competition and useful correlation benefits and reduced volatility when compared to more mainstream alternative asset classes.

DISCLAIMER Our reports, including this paper, express our opinions which have been based, in part, upon generally available public information and research as well as upon inferences and deductions made through our due diligence, research and analytical process. The information contained in this paper includes information from, or data derived from, public third-party sources including industry publications, reports and research papers. Although this third-party information and data is believed to be reliable, neither Omnigence Asset Management nor its agents (collectively “Omnigence”) have independently verified the accuracy, currency or completeness of any of the information and data contained in this paper which is derived from such third party sources and, therefore, there is no assurance or guarantee as to the accuracy or completeness of such included information and data. Omnigence and its agents hereby disclaim any liability whatsoever in respect of any third-party information or data, and the results derived from our utilization of that data in our analysis. While we have a good-faith belief in the accuracy of what we write, all such information is presented “as is,” without warranty of any kind, whether express or implied. The use made of the information and conclusions set forth in this paper is solely at the risk of the user of this information. This paper is intended only as general information presented for the convenience of the reader and should not in any way be construed as investment or other advice whatsoever. Omnigence is not registered as an investment dealer or advisor in any jurisdiction and this report does not represent investment advice of any kind. The reader should seek the advice of relevant professionals (including a registered investment professional) before making any investment decisions. The opinions and views expressed in this paper are subject to change or modification without notice, and Omnigence does not undertake to update or supplement this or any other of its reports or papers as a result of a change in opinion stated herein or otherwise.

Matt Barr

Omnigence Asset Management

email us here

Matt Barr
Omnigence Asset Management
+1 587-349-9765
email us here

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