# TVPI (Total Value to Paid-In)

## Quick Definition

A fund performance metric showing total value (realized + unrealized) relative to invested capital.

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## What is TVPI?

TVPI measures total fund value divided by capital invested. It includes both realized returns (exits) and unrealized value (current portfolio markups). A TVPI of 2.0x means double the invested capital.

## TVPI Components

TVPI = DPI + RVPI, where DPI is distributed (realized) and RVPI is residual (unrealized). A mature fund should have high DPI. An early fund will have mostly RVPI.

## TVPI Limitations

Unrealized value is estimated and can change dramatically. Paper gains aren't real until exits happen. Be skeptical of high TVPI with low DPI, especially in older funds.

### Formula

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

Or: TVPI = DPI + RVPI

Where:

- DPI = Distributions / Paid-In
- RVPI = Residual Value / Paid-In

### Example

$100M fund after 7 years:

- Called capital (paid-in): $95M
- Distributions to LPs: $80M
- Remaining portfolio value: $110M

DPI = $80M / $95M = 0.84x

RVPI = $110M / $95M = 1.16x

TVPI = 0.84x + 1.16x = 2.0x

## Related Terms

[**Most Favored Nation (MFN)**  
 A provision guaranteeing an investor will receive terms at least as favorable as any subsequent investor receives.  
 Learn more](/content/terms/most-favored-nation-mfn/index.html)

[**Qualified Financing**  
 The minimum raise amount that triggers automatic conversion of convertible notes or SAFEs.  
 Learn more](/content/terms/qualified-financing/index.html)

[**Maturity Date**  
 The deadline by which a convertible note must be repaid or converted to equity.  
 Learn more](/content/terms/maturity-date/index.html)

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