TVPI in Private Equity: Formula, Example and TVPI vs DPI

TVPI is the headline number on almost every private equity fund report, the one figure that claims to capture how the whole fund is doing. It is also the most misread, because a large part of it is usually the fund's own estimate of what it still holds. Below are the full formula, a worked example, a calculator, and a way to tell how much of the headline number is real.

What is TVPI in private equity?

TVPI, or total value to paid-in, is the total value a fund has created, both the cash already returned and the value it still holds, divided by the capital investors have paid in. A TVPI of 1.6x means the fund has produced 1.6 times the money put in, counting realized and unrealized value together. It is also called the total value multiple.

Because TVPI folds in the fund's current valuation of its remaining holdings, it shows the full picture earlier than DPI does, but it is also softer: part of it is unrealized and can still change. That is why it is read next to DPI, the realized-cash number, and the IRR, the time-adjusted one.

The TVPI formula

TVPI adds the cash a fund has distributed to the value it still holds, then divides by the capital paid in.

The two forms are the same number. Written out with NAV and distributions, it is the primary definition that benchmark providers use (Invest Europe). Written as DPI + RVPI, it shows what TVPI is made of: the realized part plus the unrealized part.

Calculate TVPI, DPI and RVPI

Enter a fund's paid-in capital, cumulative distributions and current NAV. The calculator returns TVPI along with its two building blocks, DPI and RVPI.

A worked example

Take a fund an investor has paid $100M into. It has distributed $50M in cash so far, and its remaining holdings are currently valued at $80M.

TVPI = (50 + 80) / 100 = 1.30x, which is exactly DPI (0.50x) plus RVPI (0.80x). Note what this fund's headline 1.30x is made of: only 0.50x has actually come back as cash, and the larger 0.80x is still unrealized value the fund has yet to sell. The TVPI looks healthy, but most of it is still on paper.

TVPI vs DPI

TVPI counts realized cash plus unrealized value. DPI counts realized cash only. The gap between them is RVPI, the value still at work.

The practical point: a high TVPI is only as trustworthy as the valuations behind it. Two funds can both report 1.5x TVPI and mean very different things. At 1.3x DPI, most of that value has already been paid out as cash; at 0.3x DPI, it rests on the manager's marks and has yet to survive a sale.

TVPI vs RVPI, and how the three fit together

TVPI, DPI and RVPI are three views of one fund, linked by a single identity: TVPI = DPI + RVPI. DPI is the cash already returned. RVPI is the value still held. TVPI is the two added together. As a fund matures and sells its holdings, RVPI falls and DPI rises while TVPI stays roughly level, until at wind-up RVPI reaches zero and TVPI equals DPI. We cover the unrealized side in the RVPI guide, and the cash side in the DPI guide.

What is a good TVPI?

There is no universal good TVPI. It depends on the fund's age and strategy, and it moves as valuations change. Above 1.0x means value has been created; for a mature buyout fund, roughly 2.0x is generally considered strong. A young fund can post a high TVPI that is almost entirely unrealized, so the number means less early in life than late.

Benchmark providers such as Cambridge Associates, Preqin and PitchBook publish TVPI by vintage year and quartile, which is the right way to judge it: compare a fund only with others of the same age and type. As indicative figures, recent-vintage buyout funds have pooled around 1.3x to 1.6x net TVPI, while top-quartile buyout funds from the 2015 to 2019 vintages have run closer to 2.3x to 2.7x, against medians nearer 1.6x to 1.8x. Treat those as directional, vintage-specific ranges, not a target: the honest answer to "what is a good TVPI" is always "compared with what?"

TVPI over the fund life cycle

TVPI is not fixed, and it does not only go up. Early in a fund's life it sits near 1.0x, held down by fees and holdings still carried at cost. As the manager marks up and exits investments, TVPI rises. But because its unrealized part is a fair-value estimate, TVPI can also fall when holdings are marked down. Recent vintages, whose TVPI is dominated by unrealized marks, saw their multiples cut as valuations came down (Carta).

One more limit: TVPI ignores time. A 2.0x delivered in five years is far better than a 2.0x that took twelve, yet both show the same multiple. That is why TVPI is always paired with the IRR, which measures the annualized return, and with DPI, which measures what has actually been realized.

TVPI vs MOIC

TVPI and MOIC are often used interchangeably, and at fund level, calculated net against paid-in capital, they are the same measure. The difference is convention, not formula. MOIC is calculated both gross and net, and is often quoted for a single deal against invested capital; Invest Europe describes that deal-level gross figure as "gross TVPI at the investment level." So the useful question about any multiple is not which name it carries but which basis it is on. Our MOIC guide covers how to keep gross and net consistent across managers.

How Asora tracks TVPI

TVPI is only as current as its inputs. Its unrealized part changes every time a holding is re-marked, and its realized part changes with every distribution. Kept by hand across many funds, in different currencies, a TVPI figure drifts stale fast, and one out-of-date NAV throws off the headline number.

Asora keeps the multiple current. Every capital call, distribution and net asset value update lands against the right commitment as it happens, and TVPI is recomputed on the spot together with the DPI and RVPI that make it up. On one reporting layer, the family and its advisers always know how much of the headline figure is cash and how much is still marks.

Sources

• Invest Europe, Investor Reporting Guidelines: the TVPI formula, the identity TVPI = DPI + RVPI, net-of-fees reporting, and the gross-MOIC versus net-TVPI distinction.
• Carta, TVPI in private equity: net treatment, TVPI's time-blindness, why it can fall, and convergence to DPI at wind-up.
• Moonfare, Total Value to Paid-In (TVPI): the multiple and its naming, and an example of TVPI falling as NAV is re-marked.
• Cambridge Associates, Private Investment Benchmarks: TVPI published by vintage year and quartile.

FAQ

What does TVPI stand for in private equity?

TVPI stands for total value to paid-in. It is the total value a fund has created, both the cash already returned and the value still held, divided by the capital investors have paid in. It is also called the total value multiple or investment multiple. A TVPI of 1.6x means the fund has produced 1.6 times the money investors put in, on paper and in cash combined.

What is the TVPI formula?

TVPI = (cumulative distributions + residual NAV) / paid-in capital. The numerator adds the cash already distributed to the current value of what the fund still holds. The denominator is the capital investors have paid in. The same figure equals DPI + RVPI, and it is normally reported net of fees and carried interest.

Is TVPI the same as MOIC?

At fund level, on the same net basis, they are the same measure, and the terms are often used interchangeably. The difference is convention: MOIC is calculated both gross and net, and is often quoted for a single deal against invested capital, while TVPI usually means the net, fund-level multiple against paid-in capital. Check the basis before comparing the two.

What is a good TVPI?

There is no single good number, because TVPI depends on the fund's vintage and strategy and moves with its valuations. Above 1.0x means value has been created; for a mature buyout fund, roughly 2.0x is generally seen as strong. Benchmark providers publish TVPI by vintage year and quartile, and a young fund's high TVPI is mostly unrealized paper value, so read it next to DPI.

What is the difference between TVPI and DPI?

DPI counts only realized cash returned. TVPI counts that cash plus the unrealized value still in the fund, so TVPI = DPI + RVPI and TVPI is always at least as high as DPI. Two funds can share a 1.5x TVPI while one has a 1.3x DPI (mostly cashed out) and the other a 0.3x DPI (mostly still on paper). Always read the two together.

Can TVPI go down?

Yes. Unlike DPI, which only rises, TVPI can fall when a fund marks down the value of its holdings, because the unrealized NAV in the numerator is a fair-value estimate. Recent-vintage funds, whose TVPI is dominated by unrealized marks, have seen their TVPI decline as valuations were cut.

Does TVPI account for time?

No. TVPI is a multiple of money and ignores how long it took to earn. A 2.0x TVPI over five years is far better than 2.0x over twelve. That is why TVPI is always read alongside the internal rate of return (IRR), which measures the annualized, money-weighted return.

Is TVPI net or gross of fees?

By convention, fund-level TVPI is reported net of management fees, fund expenses and carried interest, which is why investors treat it as the value they actually receive. Deal-level multiples are more often quoted gross, usually under the MOIC label, and the SEC Marketing Rule requires an adviser who presents a gross figure to show the net one alongside it.