Formula
How to Calculate RVPI
Residual Value to Paid-In — the unrealized (paper) value of a fund's remaining portfolio relative to capital contributed. RVPI = TVPI minus DPI.
Residual Value to Paid-In Capital
RVPI = Residual Value / Paid-In Capital
Where
- Residual Value
- = Current estimated fair market value of unrealized portfolio holdings
- Paid-In Capital
- = Total capital contributed by LPs to date
What Is RVPI?
RVPI (Residual Value to Paid-In) measures the unrealized value of a fund's remaining portfolio companies relative to the total capital LPs have contributed. Formula: RVPI = Residual Value / Paid-In Capital, or equivalently: RVPI = TVPI - DPI. An RVPI of 1.5x means the fund's unrealized portfolio is currently marked at 1.5 times the total capital invested. RVPI is the 'paper gains' metric — it reflects the GP's assessment of what remaining companies are worth, but this value hasn't been proven by actual exits. RVPI is highest in a fund's middle years (years 3-7) when investments have been marked up but not yet exited, and should decline toward zero as the fund matures and exits positions.
Why RVPI Matters
RVPI helps LPs understand how much of a fund's reported value is still unrealized and therefore uncertain. A fund with high TVPI but high RVPI (most value on paper) is riskier than a fund with the same TVPI but high DPI (most value in cash). Savvy LPs discount RVPI based on the GP's historical accuracy of portfolio markups — some GPs consistently convert RVPI into DPI, others see it evaporate in downturns.
Frequently Asked Questions
How do you calculate RVPI?
RVPI is calculated using the formula: RVPI = Residual Value / Paid-In Capital. Residual Value to Paid-In — the unrealized (paper) value of a fund's remaining portfolio relative to capital contributed. RVPI = TVPI minus DPI.
What is a good RVPI?
What constitutes a "good" RVPI depends on context — the fund's stage, vintage year, and strategy. Check our benchmarks and calculators for specific ranges.