TVPI (Total Value to Paid-In)

The ratio of total fund value (realized + unrealized) to capital invested; includes paper gains.

Definition

TVPI measures a fund's total value (distributed cash plus the current estimated value of remaining investments) relative to the capital LPs invested. TVPI includes both realized returns (DPI) and unrealized gains (RVPI). A fund with 1.5x TVPI has generated total value equal to 1.5 times what LPs put in, though some of that may be unrealized paper gains. TVPI can change significantly if valuations of unrealized holdings are marked up or down.

Why it matters

TVPI gives a fuller picture of fund performance than DPI alone, but it includes unrealized gains that may never materialize. When your company's VC fund reports performance, a high TVPI with low DPI means most returns are still on paper.

Example

A fund invested $100M. It has returned $40M in cash (DPI = 0.4x) and holds remaining investments valued at $180M. TVPI = ($40M + $180M) / $100M = 2.2x. If those investments are marked down by 50%, TVPI drops to 1.3x.

Related terms

DPI (Distributions to Paid-In)

The ratio of cash returned to LPs relative to total capital they invested; the realized return.

MOIC (Multiple on Invested Capital)

The simple multiple of how much an investment returned relative to the amount invested.

IRR (Internal Rate of Return)

The annualized rate of return on an investment, accounting for the timing of cash flows.

Markup

An increase in the estimated value of a fund's investment, usually after an up round.

Markdown

A decrease in the estimated value of a fund's investment, often after a down round or market shift.

General Partner (GP)

The managing partner(s) of a VC fund who make investment decisions and manage the portfolio.

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This definition is an educational summary. It is not legal, tax, or investment advice. Specific terms in your equity grant or company documents may differ.