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TVPI (Total Value to Paid-In)

Quick Definition

A fund performance metric showing total value (realized + unrealized) relative to invested capital.

What is TVPI?

TVPI measures total fund value divided by capital invested. It includes both realized returns (exits) and unrealized value (current portfolio markups). A TVPI of 2.0x means double the invested capital.

TVPI Components

TVPI = DPI + RVPI, where DPI is distributed (realized) and RVPI is residual (unrealized). A mature fund should have high DPI. An early fund will have mostly RVPI.

TVPI Limitations

Unrealized value is estimated and can change dramatically. Paper gains aren't real until exits happen. Be skeptical of high TVPI with low DPI, especially in older funds.

Formula

TVPI = (Distributions + Residual Value) / Paid-In Capital

Or: TVPI = DPI + RVPI

Where:

  • DPI = Distributions / Paid-In
  • RVPI = Residual Value / Paid-In
Example

$100M fund after 7 years:

  • Called capital (paid-in): $95M
  • Distributions to LPs: $80M
  • Remaining portfolio value: $110M

DPI = $80M / $95M = 0.84x

RVPI = $110M / $95M = 1.16x

TVPI = 0.84x + 1.16x = 2.0x

Related

Related Terms

Most Favored Nation (MFN)

A provision guaranteeing an investor will receive terms at least as favorable as any subsequent investor receives.

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Qualified Financing

The minimum raise amount that triggers automatic conversion of convertible notes or SAFEs.

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Maturity Date

The deadline by which a convertible note must be repaid or converted to equity.

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