VC & PE Glossary
What Is TVPI?
Updated
Definition
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.
Useful for: LPs, GPs
TVPI (total value to paid-in capital) measures how much total value a venture fund has created relative to LP contributions — the headline multiple on fund reports.
How it works
Formula: TVPI = (total value) / Paid-in capital = (Distributions + NAV) / Paid-in. Example: LPs paid $100M, received $30M back, remaining portfolio marked at $140M → TVPI = 1.7x. Net TVPI adjusts for fees and carry per LP agreement; gross TVPI appears in some marketing decks.
TVPI ignores timing — unlike IRR — so early marks can look strong before exits. DPI (distributions / paid-in) shows realized portion. Top-quartile funds often target net TVPI above 3x over fund life, but vintage and stage matter.
GPs mark portfolios using last round prices, public comps, or ASC 820 fair value. Unrealized value dominates mid-life TVPI.
Why it matters
- LPs: TVPI drives re-up decisions but must be read with DPI and age of fund. Paper TVPI without distributions is incomplete story.
- GPs: Fundraising markets successor funds on TVPI track record — write-down discipline protects credibility.
Common mistake
Benchmarking TVPI on gross marks without fee load or comparing a 3-year-old fund to fully realized vintage peers.
Related ideas
See also total value, DPI, IRR, unrealized value, and top quartile.
Related terms
- Top-Quartile — Top-quartile performance means ranking in the highest 25% of a peer group — commonly used to describe venture fund returns relative to same-vintage funds in benchmark datasets.
- Total Value — Total value in fund reporting is the sum of distributed cash and remaining unrealized portfolio value — the numerator in metrics like TVPI before dividing by paid-in capital.
- Unrealized Value — Unrealized value is the estimated worth of investments still held — not yet converted to cash through sale, IPO, or distribution to LPs.
Common questions
Short answers for founders, LPs, and operators