Total Value to Paid-In Capital (Investment Multiple)
Total Value to Paid-In Capital (TVPI) measures the proceeds returned by a Private Equity fund to investors combined with the remaining market value relative to the total paid-in capital. This is also known as the “Investment” Multiple.
TVPI Formula
The formula for the TVPI ratio:
Distributions: Cash returned to Limited Partners by Fund
Residual Value: Value of remaining investment in the fund
Paid-in-Capital: Total money called in from Limited Partners to Fund
Inputs
There are 5 inputs for the calculation of the Total Value to Paid-In Capital ratio.
Sum Distribution cash flows
Total of all cash process received from the Fund to the LP throughout the date range of the calculation.
Begin Date
The first date of the time range and the first date cash flows are eligible to be included in the calculation.
End Date
The last date of the time range and the last date cash flows are eligible to be included in the calculation.
LPCALL is the transaction type in the CASHDBO.CASH_ACTIVITY table for contributions called in by the Fund. LPCASH is the transaction type for distributed cash from the fund to the LPs. This example sums the ending market value and distributions and divides that by the sum of contributions. The result is a TVPI=1.0323.
Eagle Performance Money Multiple Fields
The TVPI multiple is an option found on Money Multiple field fields. Money Multiple fields are found in General Reporting in the Custom fields folder. Once a new Money Multiple field is created you can select the Money Multiple “Total Value to Paid in Capital”.
The Money Multiple Field type is also available in Metadata Center. You can find Money Multiple fields under Direct and Derived fields and setting the Field Type Parameter to Money Multiple.
How the Field Works
Contributions and Distributions
Cash Flows across a date range
The Money Multiple Field Type is a Performance Calculation based field. It is designed to utilize data from the CASHDBO.CASH_ACTIVITY table and HOLDINGDBO.POSITION_DETAIL table. Money Multiple fields offer the unique capability to sum cash flows across a time range. The cash flows are selected using the Cash Adjustment field logic to identify flows that meet the specific criteria for Private Equity contributions of distributions.
Cash Adjustment field can use security reference data as well as cash transaction details to select the correct flows. In this example the Cash Adjustment field is selecting Capital Base Fund Investments which are Private Equity Investments, transaction types equal to LPCASH, and event types equal to RECPTS (receipts) to define distributions to LPs.
Residual Market value
The TVPI field requires an ending market value for the residual value. For this the TVPI field uses a Detail Calculation fields to define the security criteria and also to select the field in POSITION_DETAIL table where the market value is stored. The market value will be taken from the report results end date. Here is an example:
Define the Date Range
Begin Date
You can define the begin date by selecting a specific date or using the date macros provided in the Begin Date options. For Performance Composites (ACOM) the inception date is the most recent date of the membership Start Date or the Inception Date within
the member’s range. For Reporting Composites (COMP) the Inception Date is simply the member inception date for the members as of the report's end effective date.
End Date
The field’s end date is always the end date of the calculation single period in each performance calculation result.
Building Money Multiple Fields
Adding to a Report and Field Rule
Money Multiple fields are designed for Performance Calculation reports. They can be selected from the Custom folder in General Reporting or by selected the Money Multiple as the Field Type in Metadata Center.
All Money Multiple fields in a Field Rule must have the same begin date. If not the report will result in an error and null values in the report results.
Options When Setting Up the TVPI Field
Here is a breakdown of the field and the field’s options when creating:
Option | Definition |
|---|---|
Money Multiple | Select the Money Multiple Ratio to Calculate (Distribution to Paid in Capital) |
Distribution Cash Flow | Select the Cash Adjustment field which defines a Fund Distribution to Limited Partner |
Contribution Cash Flow | Select the Cash Adjustment field which defines a called contribution by the Limited Partner into the Fund |
End Market Value | Select the Detail Calculation field which defines the market value and security criteria for Ending Market Value |
Begin Date options | Defines the first date that cash flows will be included in the calculation |
View the Results
TVPI field results will show up in the security rows for the securities which have cash flows and market values that meet the criteria of the Cash Adjustment and Detail Calculation fields selected. The security criteria should be the same in both fields.
Along with the TVPI field the report results also display the supporting fields Contributions Cash Flow (CCF), Distributions Cash Flows (DCF), and Ending Market Value (EMV) in the results.
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