Series 24: 2.4.2.1. Direct Participation Programs (DPPs)

2.4.2.1.  Direct Participation Programs (DPPs)

A common type of limited partnership is a direct participation program (DPP). DPPs are set up primarily to fund high-risk and capital-heavy businesses, such as real estate, oil and natural gas, and equipment leasing. DPPs vary considerably in risk. High-risk DPPs rarely make money in the beginning but may have a high payout later. Low-risk DPPs may pay income now but don’t have much potential for hig