1. An information handling system comprising: one or more processors; a memory coupled to at least one of the one or more processors; a set of computer program instructions stored in the memory and executed by at least one of the one or more processors in order to perform actions of: allocating a memory partition in a memory area located on a network adapter, wherein the memory partition corresponds to a first virtual function executing on the network adapter; storing one or more physical path translation entries in the memory partition, wherein each of the one or more physical bath translations include a physical address of a destination host, and wherein a selected one of the physical addresses is appended to one or more data packets traversing through the first virtual function and targeted to a destination virtual machine executing on a corresponding one of the destination hosts; and dynamically resizing the memory partition based upon an amount of the one or more physical path translations stored in the memory partition.