The Return On Capital
November 2025
Featured Article
Why DPI is the New IRR
In a world where Internal Rate of Return (“IRR”) once reigned as the gold standard, LP sentiment has shifted toward Distributions to Paid-In Capital (“DPI”) as the leading indicator of success. This is hardly surprising - the tightening liquidity environment, higher interest rates, and subdued exit markets have forced investors to focus on realized returns over paper markups. Across Southeast Asia, this paradigm shift is reshaping how GPs approach liquidity and what LPs expect in return.
LP Perspective
Kerrine Koh, Head of Southeast Asia at Hamilton Lane
For Limited Partners investing in Asia, how is smart money capitalising on undervalued markets for long term growth?
“Many of these investors are waiting to see concrete developments before committing capital, especially as many are still awaiting DPI and returns have been suppressed. Smart money in private capital should always be invested with a long‑term perspective…investors are not investing in the current market, but are investing in the potential for outsized returns over the next 5‑10 years.
For those unsure about holding investments for the long-term, exploring evergreen or open-ended vehicles is a good option… They allow for a shorter investment horizon, if needed, giving investors time to understand the market before committing to longer-term funds.”
Fund Managers to Watch
Fund managers across Southeast Asia creating value through flexible fund structures
Amy Wang
Managing Director
BlueEarth Capital
BlueEarth Capital is a global, hybrid investment firm focused on scalable impact across climate, health, and inclusive economies through both direct and fund investments. Designed to provide investors with flexible access and liquidity, the firm held the first close of its inaugural evergreen private credit fund with $113 million in commitments to invest in both developed and emerging markets in December 2024.
Regula Schegg
Founding Partner
Circulate Capital
Circulate Capital is a leading investment firm dedicated to solving the ocean plastic crisis and advancing climate resilience through investments in circular economy innovations across emerging markets in Southeast Asia. Most recently, the firm deepened its Southeast Asia footprint with investments in two leading Indonesian plastic recycling companies - Pelita Mekar Semesta (PMS) and Polindo Utama to become regional champions in closing the loop on plastic waste.
Wilson Cuaca
Founding Partner
East Ventures
East Ventures is a pioneering multi-stage venture capital investment firm in Southeast Asia that backs early to growth-stage startups, with a strong emphasis on digital transformation and inclusive innovation across the region. In 2025, the firm announced the first close of a new cross-border fund in partnership with SV Investment to strengthen investment corridors between Southeast Asia and South Korea to reflect its growing regional footprint and efforts of deepening capital and exit pathways across Asian markets.
Insights
RESEARCH
When Women Invest: Investor Profiles from Southeast Asia
Global Private Capital Association
October 2025
This new case study series spotlights three fund managers (LeapFrog Investments, Foxmont Capital, and Navis Capital Partners) and how they integrate gender into investment strategy to unlock undercapitalized markets. For LPs, GPCA’s latest report offers real-world examples of how backing women-led funds or gender-smart investing can result in differentiated access and more resilient returns.
RESEARCH
Southeast Asia Startup Funding Report: H1 2025
DealStreetAsia
September 2025
This mid-year report by DealStreetAsia and Kickstart Ventures unpacks key venture trends across Southeast Asia, with insights on dry powder deployment, investor sentiment, and top-funded sectors. The report provides useful insights for LPs seeking to contextualize the slower capital formation environment and understand where future DPI might be generated across the region’s early-stage landscape.
RESEARCH
Affirming the Returns 2025: Further Evidence of Diverse-Owned Private Equity Firm Outperformance
National Association of Investment Companies
October 2025
NAIC’s latest 2025 report provides updated performance benchmarks for diverse- and minority-owned private equity fund managers, with robust DPI, TVPI, and IRR comparisons to broader market benchmarks. For LPs evaluating which fund managers deliver capital back, the data offers compelling evidence and research that diversity in ownership correlates with outperformance.
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This publication has been funded by the Australian Government through the Investing in Women initiative. The views expressed in this publication are the author's alone and are not necessarily the views of the Australian Government.