Limited partners
How should an LP investigate unrealized valuations at a solo GP venture fund?
a solo GP venture fund: Investigate unrealized values through the policy, valuation date, evidence, and review process.
Investigate unrealized values through the policy, valuation date, evidence, and review process. A recent financing price may be informative without resolving every valuation question. Distinguish investment cost, company valuation, ownership, and the carrying value reported by the fund.
Start with the decision
Request the valuation policy, changes in method, relevant transaction evidence, and the review responsibilities. Reconcile the schedule to the report where authorized. Use qualified valuation and accounting specialists for formal conclusions.
The illustrative scenario
This is an educational workbook. The company or fund and all numerical inputs below are fictional. They are not ADIN results, customer claims, market benchmarks, or a forecast.
The fictional fund has one investment partner and outsourced administrative support. Its strategy depends on a narrow sourcing network and sustained founder relationships. The LP is assessing both that edge and the operating dependencies around one person.
Delegating administration does not answer who makes decisions when the GP is unavailable. Distinguish service-provider tasks, investment authority, and continuity arrangements in the documents.
Separate distributed cash from remaining value
Use a single fictional reporting date and a simplified common denominator of $7,000,000.00 paid in. Cash distributions are $1,000,000.00 and the assumed remaining value is $9,000,000.00. These invented values are not ADIN performance, peer benchmarks, or a return forecast.
Under those definitions, the total multiple is the sum of the distributed and remaining-value multiples. A revision to remaining value changes RVPI and TVPI without changing the cash already distributed. Ask whether a real report uses gross or net figures, what fees and carry are included, and how adjustments or recycling affect its definitions.
This table does not calculate IRR: there are no dated cash flows from which to do so. Identical multiples can coexist with different timing and different uncertainty. Compare the planned workload with the partner's actual capacity and the fund's decision cadence. Identify work that has an accountable backup and work that does not. Reconcile actual metrics to the applicable reports and methodology with the relevant accounting or performance specialist.
| Item | Illustration |
|---|---|
| Fictional paid-in capital | $7,000,000.00 |
| Fictional distributions | $1,000,000.00 |
| Assumed remaining value | $9,000,000.00 |
| DPI: distributions / paid-in | 0.14× |
| RVPI: remaining value / paid-in | 1.29× |
| TVPI: total value / paid-in | 1.43× |
Use this worksheet
Answer the questions with a source, date, owner, and next action. Mark an unknown as unknown. Use public or permissioned information and involve a qualified specialist when a question requires expertise beyond the team’s competence.
- What method is used?
- What date applies?
- What evidence supports the mark?
- Who reviews it?
- What could cause a revision?
Questions specific to this scenario
- Who handles an urgent notice?
- Who can make a decision during an absence?
- What responsibilities remain with the GP?
Request a responsibility map, service-provider scope, backup procedures, key-person terms, and references about follow-through. Do not infer controls simply because a provider's name appears in a deck.
A concrete next test
Walk through an absence scenario involving an urgent capital notice and an investment decision. Ask who has information, access, and authority for each task. Document a real backup arrangement instead of assuming the administrator or a friendly adviser can act for the GP.
Interpret the result
Unrealized value is not cash distributed to LPs. An upward mark can affect reported metrics while leaving liquidity and eventual proceeds uncertain, so examine both the number and the process behind it.
Compare the planned workload with the partner's actual capacity and the fund's decision cadence. Identify work that has an accountable backup and work that does not.
Sources and method
These primary resources provide background for the concepts. The fictional scenario, calculations, and worksheet are ADIN educational examples; the sources do not report or validate those invented results. Reviewed October 11, 2026.