Total Value to Paid-In (TVPI) is a fundamental performance metric for private market funds that measures the total value generated per dollar of invested capital. TVPI is calculated as (Distributions + Net Asset Value) / Paid-In Capital. A TVPI of 1.5x means the fund has generated $1.50 in total value for every $1.00 invested.
TVPI is composed of two parts: DPI (Distributions to Paid-In), which measures realized returns, and RVPI (Residual Value to Paid-In), which measures unrealized value still in the portfolio. The split between DPI and RVPI is important because realized returns carry more certainty than unrealized marks.
One advantage of TVPI over IRR is that it is not affected by the timing of cash flows. While a fund manager can boost IRR by distributing capital early, TVPI purely measures total value creation regardless of timing. This makes TVPI a valuable complement to IRR in evaluating fund performance.
Industry benchmarks from our fund performance database show median TVPI across all private equity funds at approximately 1.4-1.6x, with top quartile funds achieving 2.0x or higher. Venture capital funds show much wider dispersion, with top decile funds achieving 3.0x+ while bottom quartile funds may return less than 1.0x. Credit funds typically target 1.2-1.4x with lower variance.
For younger funds still in the investment period (J-curve phase), TVPI will typically be below 1.0x as management fees and expenses exceed unrealized appreciation. As the portfolio matures and investments are realized, TVPI should climb above 1.0x and continue to grow. Evaluating TVPI relative to fund age and vintage year is essential for fair comparison.
When using TVPI for manager evaluation, consider the following: how much of the TVPI is realized (DPI) vs unrealized (RVPI), the fund's position in its lifecycle, NAV methodology and potential for markdowns, and peer comparison within the same strategy and vintage year. Our platform provides all of these data points for funds in our performance database.