VC & PE Glossary
What Is RVPI?
Updated
Definition
RVPI (residual value to paid-in capital) measures unrealized portfolio value plus remaining fund assets divided by LP capital contributed — showing paper value still in the fund.
Useful for: LPs, GPs
RVPI (residual value to paid-in capital) is the ratio of a fund’s remaining net asset value to cumulative capital LPs have contributed.
How it works
RVPI = Net asset value (NAV) ÷ Paid-in capital
NAV includes fair-valued portfolio companies plus cash minus liabilities. It excludes distributions already sent to LPs.
TVPI = DPI + RVPI (total value to paid-in). Example: LPs paid $100M; received $40M distributions (DPI = 0.4x); NAV is $90M → RVPI = 0.9x, TVPI = 1.3x.
Early fund years show high RVPI, low DPI — everything is unrealized. Mature funds should convert RVPI into DPI via exits; persistent high RVPI with low DPI raises mark skepticism.
GPs mark portfolios using last round pricing, comps, or board valuations — RVPI moves with write-ups and write-downs.
Why it matters
- LPs: Stress-test RVPI quality in years 8–10 of a fund; ask which holdings drive NAV and exit timing.
- GPs: Reporting RVPI transparently after down rounds builds LP trust; inflated marks eventually harm DPI credibility.
Common mistake
Equating high RVPI with successful fund performance. Until DPI materializes, RVPI is opinion; one large markdown can erase years of reported gains.
Related ideas
See also DPI, TVPI, IRR, and paper gain.
Related terms
- DPI — DPI (distributions to paid-in capital) measures how much cash a fund has returned to LPs relative to what LPs contributed—real money back, not paper gains.
- TVPI — TVPI (total value to paid-in capital) is a fund performance ratio — total value (distributions plus remaining NAV) divided by capital LPs contributed — showing gross multiple before timing.
Common questions
Short answers for founders, LPs, and operators