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”.
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