Three letter combinations show up on every quarterly fund report: DPI, TVPI, and RVPI. They're trying to answer a single question — how is this fund doing? — from three different angles. Allocators who can read all three at once have a much clearer picture than allocators who fixate on any one.
Definitions
- DPI (Distributions to Paid-In)
- Cumulative cash distributed to LPs divided by cumulative LP capital paid in. DPI of 1.0× means LPs have received their capital back. DPI of 2.0× means they've received double their capital, in cash, free and clear.
- RVPI (Residual Value to Paid-In)
- Current marked-to-market NAV of unrealized holdings divided by cumulative LP capital paid in. RVPI is the sponsor-marked unrealized portion — paper gains until the fund actually sells.
- TVPI (Total Value to Paid-In)
- DPI + RVPI. Total fund value (realized + unrealized) per dollar of LP capital. Equivalent to MOIC for fund-level reporting.
How they evolve
| Stage | DPI | RVPI | TVPI |
|---|---|---|---|
| End of investment period (Y3) | 0.05× | 1.10× | 1.15× |
| Mid-life (Y5) | 0.45× | 1.30× | 1.75× |
| Harvest (Y8) | 1.50× | 0.50× | 2.00× |
| End of life (Y10) | 2.00× | 0.05× | 2.05× |
DPI starts at zero and only goes up. RVPI builds in the early years as the fund deploys capital and marks holdings up, then crests somewhere around the fund's mid-life and decays as deals exit and value transfers from RVPI to DPI. TVPI is the sum, less volatile than either component — but only really meaningful at the end of the fund's life when RVPI has converged to zero.
Reading the ratio
The most useful diagnostic is the DPI / TVPI ratio. A few illustrative cases:
- DPI/TVPI > 0.8.Most of the fund's value has been realized. Trustworthy. The remaining unrealized value is small relative to what's already in LP pockets.
- DPI/TVPI ~ 0.4. Mid-life. Reasonable for a year-5 fund. Watch carefully if it stays here at year 7+.
- DPI/TVPI < 0.2 at year 6+.Most of the headline value is unrealized. The sponsor is marking confidently; the LP hasn't yet seen whether the marks survive an actual exit. Discount the headline TVPI accordingly.
What the ratio doesn't tell you
These three metrics are time-blind, just like MOIC. A 2.0× TVPI in 6 years and a 2.0× TVPI in 12 years are nearly identical numbers and very different outcomes. To read fund returns honestly, pair DPI/TVPI with IRR (for time sensitivity) and vintage year (for market context).
What sponsors can't fudge
DPI is the metric sponsors have the least control over. It's measured in actual cash that has actually moved. RVPI requires marking — and marks can drift, especially in private-equity assets where there's no public comp.
That's why sophisticated LPs weight DPI most heavily when comparing managers across vintages. A manager with a strong DPI track record is a manager whose claimed marks have historically survived to actual exit. A manager with strong TVPI but weak DPI is a manager whose claimed marks haven't been tested yet.