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RVPI

Residual value to paid-in: remaining unrealised value divided by capital drawn. The unrealised half of TVPI, and the part allocators discount.

RVPI — Residual value to paid-in: remaining unrealised value divided by capital drawn. The unrealised half of TVPI, and the part allocators discount.

RVPI is the half of TVPI that depends entirely on the manager's own valuation judgment, which is exactly why allocators discount it relative to DPI — the discount grows larger the longer a position has been held without being realised, since an aging unrealised mark accumulates more uncertainty over time.

Frequently asked questions

Why do allocators discount RVPI relative to DPI?

Because RVPI reflects the manager's own valuation of unrealised positions rather than cash actually returned, making it an assertion rather than a proven outcome until an exit occurs.

Does high RVPI mean a fund is performing poorly?

Not necessarily — a young fund naturally has most of its value in RVPI simply because it hasn't had time to realise positions yet, which is expected rather than concerning at that stage.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

DPIDistributions to paid-in capital: cash actually returned divided by capital drawn. The rea TVPITotal value to paid-in: DPI plus RVPI. The all-in multiple, read by allocators mainly thro NAVNet asset value: the value of a fund's assets less liabilities.

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