Knowledge
The three multiples LPs use to judge a fund — what they measure, how they relate, and how they move over a fund's life.
Last updated 4 July 2026
In brief: DPI, RVPI and TVPI are the three headline multiples limited partners use to track a fund, all measured against paid-in capital. DPI captures cash already returned, RVPI captures the value still held, and TVPI is the sum of the two. Early in a fund's life DPI is near zero and value sits in RVPI; as investments are realised, value migrates from RVPI into DPI.
All three ratios share the same denominator: paid-in capital — the amount of committed capital that limited partners (LPs) have actually contributed to the fund through drawdowns to date. It is distinct from committed capital, which is the total an LP has pledged but not necessarily been called to provide. Measuring performance against paid-in rather than committed capital reflects the money genuinely at work.
DPI (distributions to paid-in) measures realised performance: the cash and stock actually distributed back to LPs, divided by paid-in capital. A DPI of 1.0x means the fund has returned exactly the capital drawn; anything above 1.0x is realised profit. Because it counts only money in hand, DPI is the multiple LPs trust most — it cannot be inflated by optimistic valuations.
RVPI (residual value to paid-in) measures unrealised performance: the fair value of the fund's remaining portfolio holdings, divided by paid-in capital. It reflects value that exists on paper but has not yet been converted to cash. RVPI depends entirely on how the remaining portfolio companies are valued, which is why it is scrutinised more heavily than DPI.
TVPI (total value to paid-in) is simply the sum of the two — total value, realised and unrealised, against paid-in capital:
TVPI is the broadest single measure of a fund's gross performance. Because it includes unrealised value, it is closely related to the fund's money multiple, but expressed relative to paid-in capital rather than to the amount invested in a single deal.
| Ratio | Measures | Formula |
|---|---|---|
| DPI | Realised — cash returned to LPs | Distributions ÷ Paid-in |
| RVPI | Unrealised — value still held | Residual value ÷ Paid-in |
| TVPI | Total — realised + unrealised | (Distributions + Residual) ÷ Paid-in |
Early in a fund's life these ratios trace the characteristic J-curve. In the first few years, management fees and the cost of deploying capital mean the fund's net value dips below paid-in — TVPI sits below 1.0x and DPI is close to zero. As portfolio companies mature and the first exits occur, distributions begin, DPI climbs, and value migrates out of RVPI. By the end of the fund's life a successful fund shows a high DPI and a residual RVPI trending towards zero as the last holdings are sold.
Reading the mix matters. Two funds can report the same TVPI while telling very different stories: one with a 1.8x DPI and 0.2x RVPI has largely proven its returns in cash, while one with 0.3x DPI and 1.7x RVPI is relying on unrealised marks. LPs read the split, not just the headline.
These ratios can be quoted gross (before fund fees and carried interest) or net (after them). LPs care about net figures, since that is what they actually receive. The gap between gross and net TVPI is, in effect, the cost of the fund — management fees plus the GP's carry.
DPI, RVPI and TVPI are only as reliable as the underlying record of what was invested, what was distributed, and what each holding is now worth. When distributions, valuations and the fund structure all build on the same transaction register that produces the cap tables, the ratios reconcile to the ledger automatically — rather than being assembled by hand in a separate spreadsheet each quarter.