Definition
What is TVPI (Total Value to Paid-In)?
Identical conceptually to MOIC — total fund value (distributions + residual NAV) divided by paid-in capital.
Total Value to Paid-In (TVPI) is the standard private equity metric for total fund return — the sum of distributions and residual NAV divided by paid-in capital. It is conceptually identical to MOIC but uses different terminology favoured by institutional LP reporting.
Calculation: - TVPI = (Distributions + Residual NAV) / Paid-In Capital.
vs MOIC: in practice the two are interchangeable. MOIC is more common in operator-facing conversations; TVPI is more common in institutional LP quarterly reports. Both metrics give the same number for the same fund.
Decomposition into DPI + RVPI: - TVPI = DPI (Distributions to Paid-In) + RVPI (Residual Value to Paid-In). - DPI = realised returns (cash actually distributed). - RVPI = unrealised returns (residual NAV that may or may not be realised).
A fund with TVPI 2.5x decomposed as DPI 0.8x + RVPI 1.7x is showing strong unrealised value but limited cash realisations to date — the manager's NAV mark is doing most of the work. A fund with TVPI 2.5x as DPI 2.2x + RVPI 0.3x has mostly realised its gains and is winding down.
Manager track-record comparison: when comparing PE / VC manager track records, look at DPI as the harder metric. RVPI depends on the manager's own valuation methodology and can be optimistic. DPI is cash on the table — verifiable and reliable.
Vintage benchmark: TVPI of 1.5-2.0x is typical for mature, mid-quartile PE funds at year 10. Top-quartile funds can deliver 2.5-3.5x. Top-decile VC funds occasionally exceed 5x but with much wider dispersion.
Related Terms
MOIC (Multiple on Invested Capital)
The total cash returned to an investor divided by the cash they invested — a simple money-multiple measure of investment success.
DPI (Distributions to Paid-In)
Realised cash returns from a fund — distributions actually paid divided by paid-in capital — the hardest metric of fund success.
RVPI (Residual Value to Paid-In)
Unrealised fund value — the manager's NAV mark on remaining holdings divided by paid-in capital. Complement to DPI.
IRR (Internal Rate of Return)
The annualized return on an investment accounting for the timing of cash flows.
Educational Content Disclaimer
This glossary provides general educational information only and does not constitute financial, legal, or tax advice. Definitions and explanations are simplified for educational purposes and may not cover all aspects or nuances of each term.
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