Definition
TVPI
TVPI (Total Value to Paid-In) is the ratio of a fund's total value — realised distributions plus remaining holdings — to the capital LPs have paid in.
TVPI = (distributions + residual value) / paid-in capital. It captures a fund's overall performance including both money already returned and the current value of unrealised investments. A TVPI of 2.0x means the fund's holdings and distributions together are worth twice what investors contributed.
TVPI is the sum of DPI (realised) and RVPI (residual value to paid-in, unrealised). Early in a fund's life TVPI is mostly unrealised value; as the fund matures and exits, more of it shifts into DPI.
Related terms
- MOICMOIC (Multiple on Invested Capital) measures how many times an investor's money has grown, regardless of how long it took.
- DPIDPI (Distributions to Paid-In) measures how much cash a fund has actually returned to its investors relative to the capital they paid in.
- Paid-In CapitalPaid-in capital is the amount of committed capital that LPs have actually transferred to a fund through capital calls.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.