Venture Capital Tracker logo
Venture Capital Tracker

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.

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.

By Venture Capital Tracker

Last updated:

Editorial note: AI tools assisted with research, structure, or drafting. Venture Capital Tracker retains human editorial responsibility for factual accuracy, relevance, and source quality before publication.

Common questions

Short answers for founders, LPs, and operators

← Back to the glossary