TVPI (Total Value to Paid-In)

Definition

TVPI equals (distributions + NAV) divided by paid-in capital. It reflects total value creation including both realized and unrealized gains. TVPI is widely used for evaluating private funds during the investment and harvest periods, but interpretation depends on valuation practices and market conditions. Allocator Context Allocators use TVPI to assess mid-life funds, comparing it to peer funds of similar vintage and strategy. Because TVPI includes unrealized NAV, allocators often examine valuation policy, concentration, and exit assumptions to judge how much value is likely to convert into cash. Decision Authority TVPI influences sizing, rebalancing, and re-up decisions, but committees typically require context for unrealized components. Unusually high TVPI without realizations often triggers deeper diligence. Why It Matters for Fundraising Managers should explain what drives TVPI and what portion is unrealized. Clear pathways to realization—exits, distributions, refinancing—matter more than headline multiples. Key Takeaways Includes realized + unrealized value Valuation policy and concentration affect reliability Best paired with DPI and IRR Realization pathway is critical for trust