What should an investor verify first?

The specific DPI and RVPI split that makes up any reported TVPI figure.

Which documents matter most?

Quarterly reports disclosing DPI and RVPI separately, not just a combined TVPI headline.

What is the main downside to test?

Treating a heavily RVPI-weighted TVPI as equivalent in certainty to a heavily DPI-weighted one.

How should the final decision be made?

Weight the unrealised (RVPI) portion with appropriate skepticism until positions are actually realised.

Back to JournalPrivate-Market Performance and Monitoring

Realised Value vs Unrealised Value

Anurag Y1 min read

Understanding the Reported Outcome

A fund's total value to investors is typically expressed as TVPI (Total Value to Paid-In), which is the sum of DPI (realised, cash already distributed) and RVPI (residual value, the manager's current mark on still-held positions). These two components carry very different levels of certainty.

Reading Cash, Value and Timing Together

A fund reporting a 2.2x TVPI could be 1.8x DPI with 0.4x RVPI (mostly realised, high confidence) or 0.5x DPI with 1.7x RVPI (mostly unrealised, lower confidence) — the same headline multiple, very different risk profiles for the remaining, unproven portion.

Where Monitoring Can Mislead

The common failure is treating TVPI as a single, settled number without breaking it into its DPI and RVPI components. A fund heavily weighted toward RVPI still has to prove its remaining marks are accurate by actually realising them at or near the stated value.

Making the Ongoing Decision

Always request the DPI/RVPI split behind any TVPI figure, and weight the unrealised portion with appropriate skepticism — it represents the manager's own estimate, not a proven outcome, until the position is actually sold.

TVPI tells you the destination the manager believes they're heading toward; DPI tells you how much of that journey has actually been completed.

Key takeaways

TVPI splits into DPI (realised, high confidence) and RVPI (unrealised, the manager's own estimate).
Two funds can report the same TVPI with very different realised-versus-unrealised composition.
A fund heavily weighted toward RVPI still has to prove those marks are accurate through actual realisation.
Always request the DPI/RVPI split behind any headline TVPI figure.

More in Private-Market Performance and Monitoring

Continue with the other chapters in this module.

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