What is RVPI?
RVPI measures the paper value of a fund's remaining (unrealized) investments relative to the capital investors put in. It tells you what's still in the portfolio and hasn't been turned into cash yet. High RVPI means the fund is sitting on unrealized gains. Whether those gains materialize is another question entirely.
Why RVPI Matters
RVPI completes the fund performance picture. DPI shows realized returns (cash back). RVPI shows unrealized potential. Together they equal TVPI, the total picture.
Young funds have high RVPI and low DPI because nothing has exited yet. Mature funds should show the opposite: high DPI and declining RVPI as the portfolio gets liquidated. A 10-year fund with mostly RVPI and little DPI is a red flag. It means the GP hasn't been able to generate exits.
Why Founders Should Care
When VCs pitch their fund performance, watch the RVPI vs. DPI split:
- High RVPI, low DPI on a young fund = normal, portfolio is still maturing.
- High RVPI, low DPI on a mature fund = paper markups without exits. Be skeptical.
- High DPI = the GP actually returns cash. That's a proven track record.
RVPI is based on the fund's internal valuations, which GPs set themselves. These can be optimistic. DPI can't be faked. Cash is cash.
Formula
RVPI = Remaining Portfolio Value ÷ Paid-In Capital
DPI + RVPI = TVPI
Example
A $100M fund at year 5:
- Capital called: $90M
- Distributions to LPs: $30M
- Remaining portfolio value: $150M
DPI = $30M ÷ $90M = 0.33x (real cash returned)
RVPI = $150M ÷ $90M = 1.67x (paper value remaining)
TVPI = 0.33x + 1.67x = 2.0x
The fund looks great on paper at 2.0x TVPI. But only 0.33x is real money back. The remaining 1.67x depends on those portfolio companies actually exiting at or above current valuations. That's the gap between promise and proof.