Glossary · Fund life

What is TVPI?

TVPI, total value to paid-in capital, adds the cash a fund has already returned to the value it still holds, then divides by the money investors paid in.

In practice

TVPI is the sum of DPI and RVPI, so it appears next to them in quarterly LP reports and fund performance tables. It is usually stated net of fees and carried interest, though gross figures exist. It is often confused with MOIC, which is typically measured at the deal level or gross. Unlike IRR, it ignores timing.

An example

Round numbers, not a real fund

Say investors paid in $100 million, received $60 million, and the remaining stake is valued at $90 million. TVPI is 1.5, made up of 0.6 in cash and 0.9 on paper.

Why it matters

It shows the whole return so far, but its unrealized part rests on the manager’s own valuations.

A definition, not advice; where usage varies the entry says so. Something wrong? Tell the desk.

Related terms

DPIDPI, distributions to paid-in capital, divides the cash a fund has returned to investors by the cash they paid in. A DPI of 1.0x means they have their money back.
RVPIRVPI, residual value to paid-in capital, divides the value of what a fund still holds by the money investors paid in. It is the unrealized part of the return.
MOICMOIC, multiple on invested capital, is the total value an investment has returned or still holds, divided by the money put into it. It ignores how long that took.
IRRIRR, internal rate of return, is the yearly return that accounts for when money goes into and comes out of a fund, so earlier payouts raise it.
NAVNet asset value, or NAV, is a fund’s assets minus its liabilities. In private funds it is usually reported quarterly and rests on the manager’s valuations.

The terms, in the news each morning.

FundOps Daily carries the day’s fund closes, deals and moves across private markets. Free, seven days a week.