TVPI (Total Value to Paid-In)
Private Equity glossary · Private Equity Fundamentals
Definition
Total return multiple including both realized and unrealized value: TVPI = MoIC = DPI + RVPI = (Distributions + Residual NAV)/(Paid-In Capital). Captures full fund performance independent of time. TVPI = 1.0x means the fund has merely returned committed capital; benchmark top-quartile buyout TVPI is typically 2.0-2.7x. Limitation: TVPI includes RVPI (unrealized NAV) which is GP-estimated and subject to mark-up bias, especially in early fund years — sophisticated LPs separately track DPI.
TVPI (Total Value to Paid-In) in plain English
TVPI answers the simplest question an investor has: "For every dollar I put in, how many dollars of value do I have now?" It counts BOTH the cash already returned to you AND the estimated worth of investments still being held. A TVPI of 1.0 means you've just broken even, while great buyout funds aim for 2.0 to 2.7 — doubling or nearly tripling your money. The catch: part of that number is the fund manager's own estimate of what the still-unsold companies are worth, and managers tend to be optimistic early on — which is why careful investors also track DPI, the portion that's real cash actually in hand.
Also called: Total Value to Paid-In
Related Private Equity terms
Private Equity practice questions · Private Equity flashcards · Private Equity study guide