TVPI, DPI, and MOIC are the three most common multiples fund managers use to show limited partners how an investment is performing before it fully exits. TVPI, total value to paid in capital, measures everything an investment is worth today, realized and unrealized, against everything an investor has put in. DPI, distributions to paid in capital, measures only the cash that has actually come back to investors. MOIC, multiple on invested capital, is closely related to TVPI and is often used interchangeably with it, though the two can diverge slightly depending on how a manager defines invested capital.
None of these three metrics account for the time value of money, which is the main reason they get reported alongside, not instead of, a time weighted return like IRR. A high TVPI reached in one year and a high TVPI reached in eight years look identical on this metric alone.
This guide defines each metric, shows how they relate to each other, and walks through a worked example using a single hypothetical SPV.
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What TVPI measures
TVPI is calculated as the sum of cumulative distributions plus the current residual value of the investment, divided by the total capital paid in. A TVPI of 1.5x means the investment is worth one and a half times what investors have contributed so far, combining money already returned with the estimated value of what is still held. Because the residual value portion relies on a valuation rather than a completed sale, TVPI is only as reliable as the manager’s estimate of what the unrealized position is worth.
What DPI measures
DPI is calculated as cumulative distributions divided by total capital paid in, leaving out any unrealized value entirely. A DPI of 0.8x means investors have received cash back equal to 80 percent of what they put in, regardless of how much the remaining position might be worth on paper. DPI is the metric investors tend to trust most in the early years of a fund or SPV’s life, since it reflects money that has actually changed hands rather than an estimate.
What MOIC measures and how it differs from TVPI
MOIC, multiple on invested capital, is calculated as total value, realized plus unrealized, divided by invested capital, which is the same basic formula as TVPI. The difference in practice usually comes down to the denominator: TVPI is typically calculated against total capital called from investors, including amounts held back for fees and expenses, while MOIC is sometimes calculated against capital actually deployed into portfolio companies. For a single asset SPV where nearly all called capital goes directly into one investment, TVPI and MOIC are often close enough to the same number that managers use the two terms without much distinction.
TVPI, DPI, and MOIC compared
| Metric | Formula | What it tells you | Main limitation |
|---|---|---|---|
| TVPI | (Distributions + residual value) / paid in capital | Total value created so far, realized and unrealized | Depends on an estimated valuation for anything not yet sold |
| DPI | Distributions / paid in capital | Actual cash already returned to investors | Can understate performance early, before exits happen |
| MOIC | Total value / invested capital | Similar to TVPI, sometimes measured against deployed capital rather than total called capital | Ignores the time it took to generate the return |
Why none of these metrics account for time
A TVPI of 2.0x reached in eighteen months represents a far better outcome than the same 2.0x reached over eight years, but the multiple itself does not show that difference. This is why sophisticated limited partners ask for IRR alongside TVPI, DPI, and MOIC rather than relying on any multiple alone. A manager reporting only a strong multiple without any time context is presenting an incomplete picture of performance, even if every number involved is accurate.
RVPI: the piece that connects DPI and TVPI
Residual value to paid in capital, RVPI, measures only the unrealized portion of the investment relative to paid in capital. TVPI is always equal to DPI plus RVPI, since together the distributed and residual pieces make up the investment’s total value. Watching how RVPI shrinks and DPI grows over an SPV’s life shows whether reported value is actually converting into cash, the same shift described in how to make your first SPV distribution, or simply being carried at a valuation that has not yet been tested by a sale.
A worked example across all four metrics
For example, suppose an SPV calls $1,000,000 from investors and deploys it into a single portfolio company. Two years later, the SPV has distributed $400,000 back to investors from a partial exit, and the manager values the remaining position at $900,000 based on a recent funding round in the company. DPI in this scenario is $400,000 divided by $1,000,000, or 0.4x. RVPI is $900,000 divided by $1,000,000, or 0.9x. TVPI is the sum of the two, ($400,000 plus $900,000) divided by $1,000,000, or 1.3x. Since nearly all of the SPV’s called capital went directly into this one position, MOIC in this example works out to the same 1.3x as TVPI.
How to present these metrics to limited partners
Reporting DPI, RVPI, and TVPI together, rather than TVPI alone, lets investors see how much of the reported value is already cash and how much still depends on a future sale or funding round. Noting the date and basis of the valuation used for the residual portion, such as a recent priced round in the company rather than a manager’s own estimate, gives investors a way to judge how much confidence to place in the unrealized piece of the number. This is the same underlying data a capital account statement already tracks for each investor, so the two should tie out to the same figures.
Frequently asked questions
What is a good TVPI for an early stage SPV?
There is no single benchmark that applies across deal types and stages, since a fair TVPI depends heavily on the company, the vintage, and how much of the value is realized versus estimated. A TVPI above 1.0x means the investment is currently valued above what was paid in, but the number alone does not show whether that value has been tested by an actual sale.
Is DPI more important than TVPI?
Neither metric replaces the other. DPI shows what has actually been returned in cash, while TVPI adds the estimated value of what is still held. Investors typically weigh DPI more heavily as an SPV matures and more of its value should have converted into actual distributions.
How is MOIC different from IRR?
MOIC measures the size of the return as a multiple of capital invested, without regard to how long it took to achieve. IRR measures the annualized, time weighted rate of return, so a fast return and a slow return with the same MOIC will show very different IRRs.
How Syndicately fits
Syndicately’s investor updates and capital account tracking give each SPV investor visibility into their own distributions and current position, the building blocks behind DPI, RVPI, and TVPI reporting. Book a demo to see how investor reporting works on the platform.
This article is general information, not legal, tax, or investment advice. Speak with your fund administrator or accountant about how these metrics are calculated for your specific vehicle.
