Glossary
Private equity valuation glossary
Six concepts whose definition is rarely disputed and whose application often is: the denominator used, the treatment of pending cash flows, where a discount is applied, the effect of PIK on cost. Each entry sets out the calculation convention, a worked example, the points that come up in review and how Jolv handles them.
Updated
Worked examples are fictional. Performance ratios draw on market definitions (GIPS, ILPA, Invest Europe); Jolv's own conventions, notably on PIK and deferred consideration, are flagged as such. The IPEV Guidelines govern fair value. Jolv is not a certification body.
RVPI
Residual Value to Paid-In
NAV relative to capital. Says nothing about value already returned.
Read the entryMoIC
Multiple on Invested Capital
(NAV + realised distributions) / invested cost. The performance multiple of an investment.
Read the entryTVPI
Total Value to Paid-In
(NAV + distributions) / called capital. The fund-level view of performance.
Read the entryDPI
Distributions to Paid-In
Realised distributions / called capital. The liquidity multiple.
Read the entryPIK
Payment In Kind
Interest is added to principal: cost rises, and IRR records nothing before collection.
Read the entryDLOM
Discount for Lack of Marketability
Illiquidity discount. Applied to the multiple by default in Jolv, never to net debt.
Read the entry