TVPI (Total Value to Paid-In), DPI (Distributions to Paid-In), and RVPI (Residual Value to Paid-In) are three related multiples that together decompose a fund's total return into its realised and unrealised components. TVPI equals DPI plus RVPI: it is the sum of what has already been distributed to LPs and what remains in the portfolio at current valuation, both expressed as multiples of contributed capital.
How it works
All three metrics share the same denominator: paid-in capital, which is the cumulative capital actually contributed by LPs to date. This is distinct from committed capital (the total obligation) and from invested capital (which some managers define as capital deployed into investments, excluding fees and expenses).
DPI (Distributions to Paid-In) measures what LPs have already received back in cash or in-specie distributions, as a multiple of their contributed capital. A DPI of 1.0x means LPs have received back exactly what they put in; anything above 1.0x means LPs are in profit on a cash basis. DPI is sometimes called the "realisation multiple" because it reflects only completed exits and actual cash received. It is the hardest metric to manipulate: unlike NAV, distributions cannot be reversed and do not depend on valuation assumptions.
RVPI (Residual Value to Paid-In) measures the current NAV of unrealised portfolio assets as a multiple of contributed capital. It captures the paper value of the portfolio remaining to be realised. RVPI depends entirely on the accuracy and conservatism of the GP's valuations: a high RVPI from a GP with aggressive valuation practices is worth less than the same RVPI from a conservative marker. As a fund matures and investments are realised, RVPI falls and DPI rises; a healthy fund's TVPI migrates from RVPI-heavy early in its life to DPI-heavy at wind-down.
TVPI (Total Value to Paid-In) is the sum of DPI and RVPI and is functionally identical to MOIC. It measures total value creation, both realised and unrealised, as a multiple of LP contributions. TVPI is the headline performance multiple in fund reporting and benchmarking.
The fund administrator calculates all three metrics at each reporting date from two sources: cumulative distributions per LP (from the distribution ledger) and current NAV per LP (from the ABOR and LP capital accounts). Accurate dated records of every capital call and distribution are essential because errors flow directly into the performance metrics disclosed to LPs and used in regulatory reports (AIFMD Annex IV includes performance metric reporting).
Worked example
Brackenwood Infrastructure Fund II at its Year 6 quarterly reporting date:
Total paid-in capital (all LPs): GBP 380M (from GBP 400M total commitments; 95% called). Cumulative distributions paid: GBP 190M. Residual portfolio NAV: GBP 285M.
DPI: GBP 190M / GBP 380M = 0.50x. (LPs have received back 50 pence for every pound contributed.)
RVPI: GBP 285M / GBP 380M = 0.75x. (Remaining portfolio is worth 75 pence per pound contributed at current valuations.)
TVPI: GBP 475M / GBP 380M = 1.25x. (Total value is 1.25x contributed capital; this equals DPI + RVPI = 0.50 + 0.75.)
The fund administrator includes a TVPI/DPI/RVPI bridge in the quarterly LP report, showing how each metric has moved since the prior period. For this fund, TVPI has grown from 1.18x at Year 5 (on lower distributions and higher NAV) to 1.25x at Year 6, with DPI increasing from 0.32x to 0.50x (two realisations completed) and RVPI declining from 0.86x to 0.75x (those same realisations removed from the portfolio). The bridge makes clear how realisation activity is converting RVPI into DPI.
Frequently asked questions
Why is DPI considered more reliable than TVPI? DPI is cash that has actually been received by LPs: it cannot be adjusted retroactively by a revaluation. RVPI depends on the GP's current portfolio valuations, which require judgment and can differ significantly from eventual realisation proceeds. A fund with TVPI of 2.0x that is 90% DPI is substantially de-risked relative to a fund with the same TVPI that is 90% RVPI. Sophisticated LPs weight DPI heavily when assessing track records and use RVPI with appropriate scepticism until confirmed by realisations.
What does it mean if a fund's DPI is below 1.0x late in its life? If a fund is past its expected exit window (typically years seven to ten) and DPI is still below 1.0x, LPs have not yet recovered their contributed capital on a cash basis. This may indicate delayed exits, portfolio underperformance, or deliberate capital recycling. Below-1.0x DPI in a mature fund is a warning signal that warrants scrutiny of the remaining portfolio valuations and the GP's exit timeline. If DPI remains below 1.0x at wind-down, LPs have lost capital on a nominal basis.
How do TVPI and IRR relate to each other? TVPI measures how much value was created; IRR measures how fast. A 3.0x TVPI achieved in four years implies a much higher IRR than a 3.0x TVPI achieved in ten years. For a given TVPI, shorter duration produces higher IRR. The combination of TVPI and IRR provides a complete performance picture that neither metric conveys alone. Benchmarking services typically report both, and LP due diligence almost always requests both.
Does TVPI include the effect of management fees and carried interest? It depends on whether gross or net metrics are reported. Gross TVPI is calculated on the investment portfolio's cash flows before fees and carry. Net TVPI is calculated on LP cash flows after fees and carry are deducted. Fund administrators report both in LP statements. For peer comparison purposes, net TVPI is the relevant metric. Gross TVPI is useful for assessing investment selection performance independently of the fund's fee structure.
How is TVPI affected by a subscription line of credit? Unlike IRR, TVPI is not materially affected by subscription line usage. TVPI divides total value by paid-in capital; it does not depend on the timing of cash flows. Delaying a capital call through a subscription line increases IRR but leaves TVPI unchanged (the same amount is eventually contributed and the same proceeds are eventually returned). This is one reason LPs use TVPI as a sanity check on IRR in funds that use subscription lines heavily.
Related terms
IRR, MOIC, J-curve, NAV, Capital account, Distribution, Carried interest, Clawback, Subscription line, Vintage year
Related pages
Performance reporting for private fund administrators, Swelv for fund administrators