DPI, RVPI and TVPI: Calculate and Reconcile Fund Multiples

DPI measures distributions relative to paid-in capital. RVPI measures remaining value relative to the same paid-in capital. TVPI combines both. On a consistent basis, DPI plus RVPI equals TVPI, but only the distributed part has been returned; residual value is still a valuation.

Fix the reporting basis first

Write the fund or LP scope, currency, date, gross/net basis and treatment of fees, carry, recallable amounts and noncash distributions before calculating. A ratio built from a gross portfolio value and a net LP contribution denominator can look precise while comparing unlike things.

The Preqin performance guide sets out the linked multiple definitions. This teaching example uses one LP’s net, cash-only contributions and distributions, plus a residual net asset value. There are no recallable amounts, in-kind distributions or new contributions during the example changes.

Calculate the three multiples

Fictional data at the reporting date: $5 million paid in, $2 million distributed and $6 million residual NAV. All values use the same LP scope and currency.

One set of inputs, three multiples

The check is 0.40x + 1.20x = 1.60x. The example does not mean $8 million has been received. Only $2 million has been distributed; $6 million remains in the stated NAV. None of these multiples expresses an annualized return.

Watch what happens when value becomes a distribution

Now assume $1 million of the remaining NAV becomes a cash distribution at exactly carrying value, with no fees, gains, losses or other changes. Cumulative distributions rise to $3 million and residual NAV falls to $5 million.

Reclassification at unchanged total value

TVPI stays unchanged because the example moves $1 million from residual value into distributions. Adding the distribution without reducing the corresponding NAV would invent value.

Test a mark-down separately

Return to the original starting case and instead reduce residual NAV from $6 million to $4 million. Distributions remain $2 million. DPI stays 0.40x, RVPI becomes 0.80x and TVPI falls to 1.20x. No new cash has moved.

That change answers a valuation question, not a liquidity question. ILPA’s reporting definitions keep contributions, distributions, realized gains and unrealized gains separate in the NAV reconciliation. Retain that separation in the narrative accompanying the ratios.

Use a reproducible multiple card

Fund-multiple check

Fund / LP scope / currency / as-of date: [ ]
Net or gross / included fees and carry: [ ]
Paid-in capital / source and policy: [ ]
Cumulative distributions / cash and noncash treatment: [ ]
Residual NAV / valuation date and source: [ ]
DPI = distributions / paid-in: [ ]
RVPI = NAV / paid-in: [ ]
TVPI = (distributions + NAV) / paid-in: [ ]
Check: DPI + RVPI = TVPI: [ ]
Unresolved basis differences: [ ]

A zero paid-in denominator makes these ratios undefined, not zero. Compare the displayed multiple to unrounded inputs, then round consistently. The same numerical multiple can hide very different realization, timing and valuation risk.

Turn the result into a clear explanation

A concise update states the multiple, its basis and its components: “The fictional LP position is 1.60x TVPI, comprising 0.40x distributed and 1.20x residual NAV at the stated date.” It does not call the full 1.60x cash returned or forecast an exit.

Keep the accepted calculation and questions beside the LP discussion using Finta’s emerging-manager workspace. For provider selection rather than calculation, see the existing venture-capital funds-of-funds research.

About this lesson. By Finta Editorial Team. Sources reviewed November 14, 2026. All example amounts, entities and outcomes are fictional teaching inputs, not observed fund performance. General education, not legal, tax, accounting or investment advice. Use qualified advisers and the governing documents for an actual fund.