Glossary · Performance & benchmarking
Total Value to Paid-In (TVPI)
Also called: total value to paid-in capital · investment multiple · total value multiple
Total value to paid-in (TVPI) is a fund's cumulative distributions plus its remaining net asset value, divided by the capital its limited partners have paid in; it equals distributions to paid-in (DPI) plus residual value to paid-in (RVPI).
TVPI tells an LP how much value the fund has produced for each dollar contributed so far, counting both cash already returned and the reported value of what is still held. A TVPI of 1.60x means $1.60 of value per $1 paid in. It says nothing about how long that took, and the unrealised part is only as reliable as the valuations behind it.
Formula
TVPI
- \sum D
- cumulative distributions to LPs since inception, after carried interest, including in-kind distributions at their value when distributed
- NAV
- LPs' share of net asset value at the measurement date, net of accrued carried interest
- PIC
- paid-in capital: all capital LPs have contributed, including amounts called for management fees and fund expenses
The standard LP measure is net TVPI as defined above. GIPS calls it the investment multiple. Because DPI and RVPI share the paid-in denominator, TVPI always equals their sum. Managers differ on recallable distributions (gross or netted) and on whether the GP commitment is included; both change the ratio slightly.
Calculator
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Enter LP contributions and distributions with their dates and the latest reported NAV. IRR uses the XIRR convention (actual days / 365) and treats NAV as a final inflow on its date. Calculations run in your browser.
- Paid-in
- 15
- Distributions
- 12
- IRR (XIRR)
- 9.03%
- DPI
- 0.80x
- RVPI
- 0.60x
- TVPI
- 1.40x
How TVPI is built
The numerator counts every distribution LPs have received since inception, after the GP's carried interest, plus the LPs' share of net asset value after the carry that would be due if the portfolio were sold at reported values. The denominator is paid-in capital, which includes capital called for fees and expenses as well as for investments. Fees therefore lower TVPI: they are paid-in capital that never reaches the portfolio.
Net TVPI, gross multiples and MOIC
TVPI is an LP-level, net measure. Managers also report a gross multiple on the deals themselves, usually called MOIC, which divides deal-level value by capital invested in deals and is struck before fees and carry. Some reports label a gross deal multiple "gross TVPI"; read the definition. The two should never be ranked against each other; TVPI vs MOIC sets out the differences.
TVPI over a fund's life
TVPI usually starts below 1.0x, because fees and expenses are called before investments have been revalued (the J-curve). It rises as holdings are marked up and, as exits occur, value moves from RVPI into DPI without changing TVPI unless the sale price differs from the last mark. When the fund is fully realised, NAV is zero and TVPI equals DPI. The share of TVPI already realised, DPI divided by TVPI, is the realization ratio.
How LPs use TVPI
LPs rank TVPI against funds of the same strategy and vintage year, and read it with IRR, which adds the time dimension TVPI lacks, and with DPI, which shows how much of the value is cash. The Global Investment Performance Standards (GIPS) require composites with committed capital to present TVPI alongside DPI, RVPI and the paid-in capital (PIC) multiple. For questions about relative performance against listed markets, the KS-PME is the market-adjusted counterpart of TVPI: it compounds every flow at the index return before taking the same kind of ratio.
Worked examples
Illustrative fund in year 6 ($ millions)
LPs have paid in $80m, received $60m of distributions and hold a net NAV of $70m. DPI = 60 / 80 = 0.75x, RVPI = 70 / 80 = 0.875x, and TVPI = 1.63x (1.625x).
A 20% markdown moves TVPI, not DPI
If the remaining portfolio is written down by 20% to $56m, TVPI falls to 1.45x while DPI stays at 0.75x. Only the unrealised component is exposed to valuation changes.
Examples are illustrative; figures are not market data.
Not the same as
- Multiple on Invested Capital (MOIC): MOIC divides deal-level value by capital invested in deals and is usually gross; TVPI divides LP-level value by all capital paid in, after fees and carry.
- Distributions to Paid-In (DPI): DPI counts distributions only; TVPI adds the remaining NAV.
- Internal Rate of Return (IRR): IRR is an annualised, timing-sensitive rate; TVPI is a multiple with no time dimension.
Common mistakes
- Reading TVPI as money returned. Only the DPI part is cash.
- Comparing the TVPIs of funds of different ages, strategies or durations without IRR or vintage context.
- Ranking a manager's gross MOIC against peers' net TVPI.
- Using a NAV that is gross of accrued carry, which overstates TVPI.
- Assuming a high TVPI will convert into equal DPI; exits can occur below the last mark.
Edge cases
- Recycled proceeds and recallable distributions change paid-in and distributions; the reported ratio depends on whether they are netted.
- A distribution funded by a NAV facility or a dividend recapitalisation raises DPI without changing TVPI, while adding leverage.
- An LP that bought its interest on the secondary market has its own multiple, based on the price paid, which differs from the fund's TVPI.
Questions
What is a good TVPI?
There is no universal threshold. TVPI depends on fund age, strategy and vintage, so it is judged against peers of the same vintage and strategy and read with IRR and DPI.
Why is TVPI below 1.0x in a fund's first years?
Fees and expenses are paid in before investments are revalued, so reported value is initially less than paid-in capital. This is the J-curve, not necessarily a loss.
External standards
| Standard | Relation | Note |
|---|---|---|
| GIPS 2020 for Firms (Provision 5.A.4.d: total value to since-inception paid-in capital (investment multiple or TVPI)) | equivalent |
Sources
- Global Investment Performance Standards (GIPS) for Firms 2020. CFA Institute, 2020 edition; effective 1 January 2020; required for GIPS Reports with periods ending on or after 31 December 2020. Status: Current (checked 2026-10-01). 5.A.4 — supports: Composites with committed capital must present TVPI (investment multiple), DPI (realization multiple), PIC multiple and RVPI (unrealized multiple)
- GIPS Standards for Firms 2020 - Glossary (defined terms). CFA Institute, Glossary section of the 2020 edition. Status: Current (checked 2026-10-01). investment multiple (tvpi); realization multiple (dpi); unrealized multiple (rvpi); pic multiple — supports: Standard-setter definitions of the multiples
- ILPA Performance Template (Granular Methodology and Gross Up Methodology), v1.1. Institutional Limited Partners Association, ILPA, Released January 2025 (QRSI); v1.1 April 2025. Status: Current; for funds commencing operations on or after 1 January 2026 (checked 2026-10-01). Granular Methodology guidance v1.1, p. 10 (fund-level net IRR and TVPI; gross IRR and MOIC) — supports: Standard template reports fund-level net TVPI alongside gross MOIC
Related terms
7 termsReferenced by
11 termsConcept record
- Concept ID
- ALTSS-PERF-011
- Classification
- Performance & benchmarking
- Topics
- Performance & benchmarking
- Version
- 2.0.0
- Last reviewed
- Structured data
- JSON