TVPI, DPI and RVPI: Understanding venture fund value and distributions

TVPI, DPI, and RVPI are related venture fund performance multiples built around the capital investors have contributed to a fund. Together they show how much value the fund reports, how much has already been distributed, and how much remains in the portfolio. The Institutional Limited Partners Association (ILPA) includes these measures in its standardized private-capital performance reporting guidance.

For venture funds, the three metrics are most useful when read together because the balance between realized and unrealized value changes materially over the life of the fund.

The three multiples

DPI, Distributions to Paid-In Capital, measures cumulative distributions relative to paid-in capital.

DPI = Cumulative Distributions ÷ Paid-In Capital

RVPI, Residual Value to Paid-In Capital, measures the reported value of the remaining portfolio relative to paid-in capital.

RVPI = Residual Value ÷ Paid-In Capital

TVPI, Total Value to Paid-In Capital, combines both components.

TVPI = (Cumulative Distributions + Residual Value) ÷ Paid-In Capital

Because the numerator of TVPI contains both distributed and residual value, TVPI = DPI + RVPI.

Paid-in capital refers to capital investors have contributed to the fund. It is distinct from total committed capital, which can include capital the fund has not yet called.

Worked example

Assume the fund received $20 million of LP paid-in capital and distributed $8 million to those LPs. At the reporting date, the $24 million of residual value is net value attributable to the same LP reporting perimeter after applicable liabilities and accrued carry under the fund's accounting policy. This is a consistently defined net-LP example.

DPI = $8M ÷ $20M = 0.4x

RVPI = $24M ÷ $20M = 1.2x

TVPI = ($8M + $24M) ÷ $20M = 1.6x

The fund therefore reports total value equal to 1.6 times the capital contributed so far. Of that value, 0.4x has been distributed to LPs and 1.2x remains in the portfolio.

The illustrative $24 million is the residual NAV attributable to the same investors, rather than the headline gross value of portfolio company securities. A fund reporting gross multiples should use the appropriate gross basis consistently.

Reading the composition of TVPI

The composition of TVPI provides important information about a venture fund's maturity and the nature of its reported performance.

Consider two funds that each report 2.0x TVPI. One has 1.4x DPI and 0.6x RVPI. The other has 0.3x DPI and 1.7x RVPI. Both report the same total multiple, while much more of the first fund's value has already been converted into distributions.

This distinction matters in venture capital because portfolio companies can remain private for many years. Young funds tend to carry a greater share of their value in RVPI. As exits occur and cash returns to LPs, value moves from the residual component into DPI. Changes in portfolio marks can move RVPI and TVPI before any cash is distributed.

How venture investors use these metrics

LPs use TVPI to monitor the total reported value of their investment relative to contributed capital. DPI provides visibility into realized cash returns, while RVPI shows the amount of reported value still dependent on the remaining portfolio.

For GPs, these measures are central to fund and portfolio reporting. They also become important during subsequent fundraising, when prospective LPs evaluate both the level and composition of performance in earlier funds.

The metrics are most informative when compared with funds of similar vintage, strategy, and maturity. A Fund I that began investing two years ago naturally has a different realization profile from a fund approaching the end of its life.

What does a good TVPI, DPI or RVPI look like?

A TVPI above 1.0x means the fund's reported total value exceeds the capital paid in by LPs. A DPI above 1.0x means the fund has already returned cash equal to more than the paid-in capital. Those thresholds are useful reference points, while the quality of the result still depends heavily on fund age, strategy, and the amount of value that remains unrealized.

For a young venture fund, a large share of TVPI may naturally sit in RVPI because portfolio companies have not yet exited. As the fund matures, a healthy performance pattern is for realized distributions to grow and for more of the fund's value to move from RVPI into DPI while total value remains strong.

A high TVPI with very low DPI can still represent strong early performance, though more of the outcome depends on unrealized marks. For mature funds, DPI becomes increasingly important because it shows how much reported value has converted into cash for LPs.

Common mistakes

Using committed capital as the denominator

TVPI, DPI, and RVPI use paid-in capital. Replacing that denominator with total commitments changes the meaning of the ratios.

Looking at TVPI without its components

The same TVPI can arise from very different combinations of realized distributions and unrealized value. DPI and RVPI provide the decomposition.

Treating residual value as a realized outcome

RVPI depends on the current reported value of investments that remain in the portfolio. Those values can change before an eventual exit.

Comparing funds at very different stages

A young venture fund may have limited DPI even when several portfolio companies have appreciated materially. Older funds have had more time to convert investments into distributions.

Mixing gross and net performance

Fund materials may present performance on different bases. Any comparison should use consistent definitions and clearly identify whether figures are gross or net of fees, expenses, and carried interest.

Limitations

These multiples describe the amount of value relative to paid-in capital. They do not incorporate the timing of cash flows, which can materially affect the economic result for an investor. IRR is commonly used alongside them because it incorporates when contributions and distributions occur.

TVPI and RVPI also depend partly on the valuation of unrealized investments. The quality of those marks becomes especially important for venture funds whose portfolios remain predominantly private. Changes in valuation policy, financing rounds, company performance, and market conditions can move reported residual value before a liquidity event occurs.

Fund-level financing and reporting conventions can create further differences in performance presentation. Comparisons are most useful when the underlying definitions, reporting basis, and treatment of facilities are consistent.

The ILPA Performance Template describes Granular and Gross Up methodologies and go-forward use for funds commencing on or after January 1, 2026. The fund's documents and reporting policy determine which approach it adopts.

Source-check list: paid-in denominator, actual distributions, reporting date, net versus gross basis, approved LP residual value, subscription-facility treatment and relevant partner-account entries. The fund administrator validates official performance reporting.