TVPI
Also known as Total Value to Paid-In, Investment Multiple
TVPI (total value to paid-in) is the sum of distributions returned to LPs and the current unrealized NAV, divided by capital contributed. TVPI = DPI + RVPI and represents the full mark-to-market picture of fund performance.
Formula
TVPI = (Cumulative Distributions + Residual NAV) / Paid-In Capital- Cumulative Distributions
- Total cash and securities distributed to LPs
- Residual NAV
- Current fair-market value of remaining unrealized positions
- Paid-In Capital
- Total capital LPs have contributed via capital calls
In depth
TVPI moves with both exits (which convert RVPI into DPI) and round-by-round markup or markdown of remaining positions. It is more honest than IRR for early-stage funds, where IRR is distorted by small early markups in funds with low cash deployment. TVPI without DPI context can mislead, however. A 3x TVPI with 0.2x DPI is paper wealth, not realized wealth.
Why it matters
TVPI is the headline performance number for active funds. Quarterly LP letters lead with it. But TVPI is only as good as the GP's mark policy. Aggressive markups inflate TVPI without changing realizable value, so LPs cross-check TVPI against DPI to detect mark inflation.
Worked example
LPs paid in $30M. Fund has distributed $20M and holds positions marked at $40M:
TVPI = ($20M + $40M) / $30M = 2.0x
Composed of 0.67x DPI and 1.33x RVPI. If the remaining positions are written down 50% in a market correction, TVPI drops to ($20M + $20M) / $30M = 1.33x.
Frequently asked
What is a good TVPI for a venture fund?
Top-quartile venture funds target 3.0x+ TVPI over the fund life. Median funds land around 1.7-2.0x TVPI. Bottom-quartile funds finish below 1.0x.
How does TVPI relate to DPI and RVPI?
TVPI = DPI + RVPI. DPI is realized cash returned; RVPI is residual unrealized value. The composition shifts over a fund's life: high RVPI / low DPI early, then RVPI converts to DPI as positions exit.
Can TVPI be misleading?
Yes. A high TVPI driven entirely by aggressive markups on unrealized positions can collapse in a correction. LPs read TVPI alongside DPI and fund age to assess realization risk.