Limited partners
What should an LP clarify about DPI, RVPI, and TVPI at a micro venture fund?
a micro venture fund: DPI, RVPI, and TVPI distinguish distributed value, remaining value, and their total relative to paid-in capital under the stated definitions.
DPI, RVPI, and TVPI distinguish distributed value, remaining value, and their total relative to paid-in capital under the stated definitions. Confirm whether figures are fund-level or investor-level, gross or net, and measured on the same date before comparing them.
Start with the decision
Reconcile distributions, remaining value, and paid-in capital to the applicable report. In a simplified example, TVPI equals DPI plus RVPI when the definitions and denominator match. Ask about fees, carry, recycling, and adjustments in the actual methodology.
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 a small capital base and a narrow initial-check range. Its manager uses a lightweight team and external service providers. The LP is testing whether fees, operating costs, and portfolio ambitions fit together.
A small fund is not automatically efficient or inefficient. The relevant issue is whether the budget funds the promised work while leaving enough capital for investments and reserves.
Separate distributed cash from remaining value
Use a single fictional reporting date and a simplified common denominator of $4,000,000.00 paid in. Cash distributions are $500,000.00 and the assumed remaining value is $5,000,000.00. 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 operating plan with the cash available under the actual fee terms. Stress-test a smaller final close rather than assuming the target will be reached. Reconcile actual metrics to the applicable reports and methodology with the relevant accounting or performance specialist.
| Item | Illustration |
|---|---|
| Fictional paid-in capital | $4,000,000.00 |
| Fictional distributions | $500,000.00 |
| Assumed remaining value | $5,000,000.00 |
| DPI: distributions / paid-in | 0.13× |
| RVPI: remaining value / paid-in | 1.25× |
| TVPI: total value / paid-in | 1.38× |
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 is the denominator?
- What is the valuation date?
- Is the figure gross or net?
- What has been distributed?
- What adjustments apply?
Questions specific to this scenario
- What changes after a smaller close?
- Which costs are fixed?
- Can the promised support fit the budget?
Request a lifecycle budget, provider scopes, portfolio model, and assumptions about future closes. Keep manager-company revenue distinct from fund capital and investment proceeds.
A concrete next test
Reduce the fictional final close while keeping quoted fixed operating costs visible. Ask which work can be scaled down and which obligations remain. Compare the revised budget with the promised portfolio support before assuming that a smaller vehicle automatically stays efficient.
Interpret the result
A multiple containing substantial remaining value depends on valuation assumptions. It is not equivalent to cash returned, and a higher multiple alone does not explain timing, risk, or whether two funds are comparable.
Compare the operating plan with the cash available under the actual fee terms. Stress-test a smaller final close rather than assuming the target will be reached.
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.