Limited partners
What should an LP clarify about DPI, RVPI, and TVPI at a seed venture fund?
a seed 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 manager targets companies with an initial customer base and plans to join priced rounds. It uses larger initial checks than the pre-seed example and expects a smaller portfolio. Co-investor access is part of the thesis.
An attractive round does not prove allocation access or consistent decision quality. Verify what the manager could actually invest, the price paid, and the ownership maintained.
Separate distributed cash from remaining value
Use a single fictional reporting date and a simplified common denominator of $28,000,000.00 paid in. Cash distributions are $5,000,000.00 and the assumed remaining value is $35,000,000.00. 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 strategy with actual check sizes and capacity. Identify whether the model relies on ownership or access that has not yet been demonstrated. Reconcile actual metrics to the applicable reports and methodology with the relevant accounting or performance specialist.
| Item | Illustration |
|---|---|
| Fictional paid-in capital | $28,000,000.00 |
| Fictional distributions | $5,000,000.00 |
| Assumed remaining value | $35,000,000.00 |
| DPI: distributions / paid-in | 0.18× |
| RVPI: remaining value / paid-in | 1.25× |
| 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 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
- Which allocations were actually obtained?
- What changes when round sizes rise?
- How are reserves prioritized?
Request executed investment records where available, a complete portfolio schedule, reserve assumptions, and references about the manager's role. Keep proposed deals separate from completed investments.
A concrete next test
Select one completed investment and one opportunity where the manager could not obtain the desired allocation. Ask how access, price, and ownership affected the decision. Include both examples when evaluating whether the proposed check sizes and company count are executable.
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 strategy with actual check sizes and capacity. Identify whether the model relies on ownership or access that has not yet been demonstrated.
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.