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TVPI (Total Value to Paid-In)
A fund performance metric showing total value (realized + unrealized) relative to invested capital.
Formula
TVPI = (Distributions + Residual Value) / Paid-In Capital
Or: TVPI = DPI + RVPI
Where:
- DPI = Distributions / Paid-In
- RVPI = Residual Value / Paid-In
Definition
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.
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
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