Distributions are the actual cash (or occasionally publicly traded shares) paid out to limited partners from the proceeds of investment exits, dividends, or refinancings. They represent realised returns — money that has actually left the fund and been received by investors.
The DPI (Distributions to Paid-In) multiple measures cumulative distributions as a ratio of invested capital. A DPI above 1.0x means an LP has received more cash back than they put in, regardless of unrealised portfolio value. DPI is considered a more reliable metric than TVPI or IRR in early fund vintages, since it relies purely on realised events rather than subjective mark-to-market valuations.