TVPI
Total Value to Paid-In Capital
Definition
TVPI (Total Value to Paid-In) measures the total value of a fund's portfolio (realized distributions + unrealized remaining holdings) divided by the capital invested by limited partners.
In Simple Terms
TVPI includes both cash you've received (DPI) and paper gains. If you invested $1M, got $0.5M back, and remaining portfolio is worth $1M, your TVPI is 1.5x ($0.5M + $1M / $1M).
Why It Matters
TVPI shows the total value of your investment, including paper gains. Unlike DPI (cash only), TVPI includes unrealized appreciation. It's more volatile and optimistic than DPI, but shows the full picture of fund performance.
Example
Fund invested $20M, returned $10M cash (DPI 0.5x), but portfolio companies are valued at $40M. TVPI = $50M / $20M = 2.5x. But if valuations collapse, TVPI falls while DPI stays the same.