TVPI divides the total value attributable to investors — the fund's NAV and distributions paid, net of fees and carried interest — by called capital, which includes fees and recalled distributions. Numerator and denominator therefore both differ from MoIC, which relates the fair value of the investments and proceeds received to invested capital. Called capital also depends on how recycling is treated. On the same vehicle, TVPI is therefore structurally lower than the aggregate investment-level MoIC. The gap is not an anomaly; leaving it unexplained is.
Calculation convention
TVPI = (NAV + distributions) / called capital = DPI + RVPI
The identity DPI + RVPI = TVPI assumes a common denominator. It serves as a consistency check on a dashboard, not as a definition.
Worked example (fictional)
A fund that has called €40m, of which €34m invested in portfolio companies and €6m in fees; distributions €22m, NAV €28m.
| TVPI | (28 + 22) / 40 = 1.25× |
|---|---|
| DPI | 22 / 40 = 0.55× |
| RVPI | 28 / 40 = 0.70× |
| Aggregate investment-level MoIC | 50 / 34 = 1.47× |
In this simplified case (no carried interest, no fund-level cash), the gap between 1.47× and 1.25× is due to the €6m of fees, included in the fund's denominator and absent from that of the investments. Both figures are correct; comparing them without this bridge is a frequent source of questions in due diligence.
Review points
- Investment-level MoIC compared with fund TVPI without a bridge covering denominators, fees and carried interest.
- Recycled distributions treated differently in the numerator and the denominator.
- TVPI calculated on commitments rather than called capital.
In Jolv
From valuation campaigns, Jolv calculates gross multiples relative to invested cost; net multiples on called capital, which require fees and carried interest, are entered with their source, never recalculated. Jolv does not keep the fund's accounts.
Feature — Multi-fund Management
Further reading — MoIC or RVPI: two confused multiples, only one measures performance