TVPI (Total Value to Paid-In)
TVPI is total value (distributions + remaining value) divided by paid-in capital for a private fund.
Allocator relevance: A primary private-market KPI—captures total progress, but quality depends on valuation policy and the realized/unrealized split.
Expanded Definition
TVPI combines DPI (realized cash returned) and residual value (NAV) into a single multiple. It shows how much value has been created relative to capital contributed. However, early in a fund’s life TVPI can be dominated by unrealized marks, making valuation policy and mark discipline critical.
Allocators evaluate TVPI alongside DPI and IRR to judge both magnitude and realizability.
How It Works in Practice
Managers report TVPI quarterly. Allocators track TVPI trends by vintage and compare to benchmarks, while monitoring how much of TVPI is realized vs unrealized.
Decision Authority and Governance
Governance includes valuation policy oversight and audit processes, because inflated marks can make TVPI look better than reality.
Common Misconceptions
- TVPI equals “money returned.”
- High TVPI guarantees future DPI.
- TVPI comparisons are clean across all strategies without context.
Key Takeaways
- TVPI = DPI + residual value multiple effect.
- Realized share matters for trust.
- Valuation governance determines reliability.