RVPI divides residual value (NAV) by capital: called capital at fund level, invested cost at investment level. It is a stock measure, not a performance measure: it shows the share of value that still depends on a valuation, and therefore on assumptions. It declines mechanically as the portfolio is realised, and is only meaningful when read alongside DPI.
Calculation convention
RVPI = NAV / capital (called for a fund, invested for an investment)
Distributions are excluded by construction. Until any distribution has been made, RVPI and MoIC are identical, which conceals labelling errors until the first exit.
Worked example (fictional)
Investment of €10m, partial exit collected for €6m, remaining stake valued at €8m.
| Residual NAV | €8m |
|---|---|
| Invested cost | €10m |
| RVPI | 0.80× |
| MoIC | 1.40× |
An RVPI of 0.80× coexists with a MoIC of 1.40×. In a portfolio review, the first indicates the share of value still exposed to valuation assumptions; the second measures value creation.
Review points
- A table headed “multiple” that excludes distributions: an RVPI presented as a MoIC.
- RVPI calculated on invested cost and DPI on called capital (or vice versa): the identity DPI + RVPI = TVPI no longer holds.
- Escrow or earn-out counted at face value. Jolv convention, more conservative than Invest Europe, which includes its estimated fair value: nothing before collection.
In Jolv
Jolv calculates RVPI from campaign NAV and cost traced to the ticket, and displays it separately from MoIC, which adds realised distributions.
Feature — Portfolio valuation software
Further reading — MoIC or RVPI: two confused multiples, only one measures performance