Total value to paid-in (TVPI)

Total value to paid-in (TVPI) measures a private equity or venture fund's overall performance by comparing the total value it has generated, cash already distributed plus the estimated value of remaining holdings, to the total capital limited partners have actually paid into the fund. It is calculated as TVPI = (distributed value + residual value) / paid-in capital, mechanically the same formula used for multiple on invested capital at the deal level.

TVPI is often split into two components: DPI, distributions to paid-in, which is the cash already returned to investors, and RVPI, residual value to paid-in, which is the unrealized value of what the fund still holds. A fund early in its life typically has high RVPI and low DPI, since it has made investments but not yet exited them, and that mix shifts toward DPI as the fund matures and sells positions. This distinguishes TVPI from a return that has actually been realized in cash, since a large unrealized RVPI component depends on valuation estimates that may not hold up at exit.

Limited partners use TVPI to judge a fund's overall value creation and to compare funds of similar vintage, typically alongside internal rate of return for time-adjusted performance and a public market equivalent benchmark. A common pitfall is treating TVPI as realized wealth: until the RVPI portion is actually sold, that value is an estimate, not cash in hand.