Paper value and returned cash tell different stories.
DPI measures distributions relative to contributed capital. RVPI measures remaining value relative to contributed capital. TVPI combines them. A high TVPI driven by residual value has a different liquidity profile from the same TVPI delivered in distributions.
Use actual paid-in capital, not commitments, and keep the investor scope, reporting date and gross/net basis consistent. For an LP perspective, use distributions and NAV attributable to the LP after applicable fund-level economics.
The formula, made clear.
- Paid-in capital
- Cumulative actual contributions, including amounts contributed again after recall.
- Distributions
- Cumulative cash or consistently valued in-kind distributions, including recallable distributions.
- Residual NAV
- Unrealized remaining value on the same reporting basis.
Put the numbers in context.
$10,000,000.00 paid in, $6,000,000.00 distributed and $9,000,000.00 NAV give 0.6× DPI, 0.9× RVPI and 1.5× TVPI.
| Input | Example value |
|---|---|
| Cumulative paid-in capital | $10,000,000.00 |
| Cumulative distributions | $6,000,000.00 |
| Residual net asset value | $9,000,000.00 |
| Total value to paid-in capital | 1.5× |
What this calculation assumes
Aggregate multiples using consistent investor scope and reporting date. No cash-flow timing, valuation assurance or full ILPA reporting compliance. Net LP results require net inputs; gross asset values cannot be mixed with net distributions.
Methodology references
What to consider next.
Inspect valuation quality behind NAV and use dated cash flows for interim IRR. Separate commitments from paid-in capital in reserve planning.
How we approach financial models →