Every quarter, LPs receive a fund performance report. Most read the TVPI number and move on. That's how you miss what's actually happening inside a fund.
A properly read VC performance report tells you whether a GP is marking up paper gains or generating real cash, whether the J-curve is following normal trajectory, and whether you should re-up in the next fund. Here's the full framework — applicable to any fund, from Sequoia Capital Fund XVI to Centurium Capital Partners TVPI reports.
The Four Metrics That Define Fund Performance
Every fund performance report is built on the same four metrics. Understand each, and you can evaluate any fund from any manager in any geography.
| Metric | Formula | What It Measures | Top Quartile Benchmark |
|---|---|---|---|
| TVPI | (DPI + RVPI) / Paid-In | Total value — cash returned + paper value | 3.0x+ |
| DPI | Distributions / Paid-In | Actual cash returned to LPs | 1.5x+ (year 10) |
| RVPI | Residual Portfolio Value / Paid-In | Remaining unrealized value | Decreases over time as DPI rises |
| Net IRR | Time-weighted annualized return (after fees) | Annual return LP actually earns | 20%+ |
Benchmarks per Burgiss, Carta, and Cambridge Associates data for US VC funds (2024 editions, the latest available as of this update).
What's Actually Inside a Quarterly LP Report
The four headline metrics arrive inside a standard quarterly LP package — typically delivered 45–60 days after quarter end and aligned with ILPA (Institutional Limited Partners Association) guidelines. Knowing the components tells you where to look for the story behind the numbers:
Capital Account Statement
Your specific allocation: called capital, distributions received, net asset value, and ownership percentage of the fund.
Fund-Level Performance Summary
TVPI, DPI, RVPI, net IRR at the total fund level — not your individual account — with a vintage year comparison.
Portfolio Company Updates
Each active investment listed with last known valuation basis, latest round, revenue progress, and any material events (exits, down rounds, write-offs).
Investment Activity
New investments made during the quarter, follow-on rounds funded, and capital reserved. Check if reserves match the stated strategy.
Exit and Distribution Activity
Any liquidity events — M&A, secondary sales, IPO lock-up expirations — and the DPI contribution of each. This is where performance becomes real.
Fee and Expense Disclosure
Management fees paid, operating expenses allocated to the fund, and any monitoring, transaction, or portfolio-service fees. ILPA recommends quarterly gross-to-net reconciliation.
How to Read a Fund Performance Report Step-by-Step
Check the vintage year first
A 2.0x TVPI on a 2020-vintage fund is disappointing. A 2.0x TVPI on a 2022-vintage fund at year 4 is ahead of pace. Every number must be interpreted relative to how old the fund is. Early-vintage top performers (2005–2012) show 5–10x TVPI because they had more time — don't compare them raw against a 2021 fund.
Compare DPI to TVPI to check for paper gains
If a fund reports 2.8x TVPI with 0.1x DPI, that's almost entirely paper. If it shows 2.8x TVPI with 1.8x DPI, the GP has delivered real cash. For any fund past year 8, DPI should be meaningfully contributing to TVPI. If RVPI still dominates at year 10+, ask hard questions about exit plans.
Normalize IRR by investment pace
A fund that deployed capital quickly will show a higher gross IRR than one that paced slowly — even if the underlying returns are identical. Always look at net IRR (after 2-and-20), and ask the GP for their deployment schedule. A 30% IRR from a fund that only called 30% of capital in year 1 is a very different statement than a fully deployed fund.
Read the portfolio-level marks
Performance reports should include marks by company: unrealized fair value, last round valuation, and ownership percentage. A fund can show impressive TVPI while 70% of the value is concentrated in a single unexited position. One bad quarter at that company wipes the headline number. Concentration risk is hidden until it isn't.
Ask for net returns on a since-inception basis
Quarterly IRR snapshots are misleading. Request since-inception net IRR and compare it to the Cambridge Associates US VC benchmark for that vintage. If the manager is below median for their vintage year after fees, they have no credible argument for a second fund at the same terms.
What Top-Quartile Actually Looks Like by Vintage
The J-curve means early-vintage funds always look ugly. Here's what realistic top-quartile VC performance looks like at different ages, based on Burgiss and Carta data through 2024:
| Fund Age | Median TVPI | Top Quartile TVPI | Median Net IRR | Top Quartile Net IRR |
|---|---|---|---|---|
| Year 3 | 0.8–1.0x | 1.2–1.5x | -5% to 5% | 15–25% |
| Year 5 | 1.2–1.5x | 1.8–2.5x | 8–12% | 20–30% |
| Year 7 | 1.5–1.8x | 2.5–3.5x | 10–14% | 22–35% |
| Year 10+ | 1.6–2.0x | 3.0x+ | 10–13% | 20%+ |
Source: Burgiss, Carta LP benchmarks, Cambridge Associates US Venture Capital Index (2024 data, latest available as of this update).
Vintage Year Is Destiny: IRR by Vintage and the DPI Drought
Vintage year often explains more of a fund's reported performance than manager skill. Per Burgiss data, top-quartile VC fund net IRRs by vintage run approximately:
- ▸2009 vintage: ~31% net IRR (best vintage in 20 years — rode the mobile, SaaS, and AI wave)
- ▸2015 vintage: ~22% net IRR (solid but hit late-stage valuation inflation)
- ▸2019 vintage: ~28% net IRR (benefited from 2021 ZIRP exits; early data still volatile)
- ▸2021 vintage: Negative to low single digits as of 2025 reporting for most funds (paid peak prices, IPO window closed)
This is also why DPI has dominated the LP conversation since 2022. The IPO window slammed shut, secondaries traded at discounts, and M&A volume dried up — leaving the vast majority of 2019–2022 vintage funds sitting below 0.5x DPI as of early 2026. Most of the TVPI those funds report is still paper, and RVPI marks set during the 2021 peak were quietly written down 30–50% across 2023–2024 as portfolio companies raised down rounds or shut down. When you read a report from those vintages, discount RVPI aggressively until exits confirm the marks. For the full case on why DPI matters most, read why DPI is the only VC performance metric that actually matters to LPs. For vintage-by-vintage benchmark data, see what the 2019-2022 classes actually returned.
Centurium Capital Partners TVPI: How to Interpret a Specific Fund's Performance
Centurium Capital Partners is a China-focused private equity firm founded by former Warburg Pincus executives. Like the vast majority of closed-end PE and VC funds, Centurium does not publish TVPI, DPI, or IRR data publicly. Their reported returns flow only through LP statements, placement agent relationships, and secondaries market databases.
If you're trying to assess Centurium Capital Partners' performance — either as a potential LP or as a market researcher — here's what to do:
Request the ILPA performance report
The ILPA standard template requires GPs to disclose gross and net IRR, TVPI, DPI, and RVPI by fund.
Check public pension LP disclosures
State pension funds (CalPERS, OTPP, CDPQ) that are LPs must disclose fund-level performance in annual reports — search their filings.
Use Preqin or PitchBook fund data
Preqin tracks PE fund performance at the vintage and manager level. Most China PE managers appear with estimated benchmark ranges.
Look at secondary market pricing
LP interest secondaries prices imply TVPI and IRR expectations. A fund trading at 80 cents on NAV implies the market is skeptical of the GP's marks.
The same process applies to any fund: Permira, Vista Equity, or a $30M emerging manager fund. The metrics are standardized. What varies is how willing the GP is to share them and how deep your secondary research needs to go. Track VC and PE performance across managers on the VC/PE Performance Dashboard. For a detailed guide to sourcing this data yourself, see where to find VC fund performance data and what to do with it.
The Mistakes LPs Make Reading Performance Reports
Comparing TVPI across different vintage years without adjusting for fund age
Fix: Always index to the vintage-year benchmark, not the absolute number
Treating gross IRR as a return figure
Fix: Gross IRR belongs to the GP. Net IRR is what you earned — it's 3–6 points lower
Ignoring concentration risk in the RVPI
Fix: Ask what percentage of unrealized value sits in the top 1–3 positions
Accepting a TVPI without asking when DPI will arrive
Fix: Ask for the GP's planned exit schedule — funds past year 8 should be actively returning capital
Comparing VC and PE IRR directly
Fix: PE IRR is artificially inflated by leverage and faster J-curve exit. VC IRR is slower and lumpier. They are not the same instrument
Green Flags That Matter
- ✓ DPI growing consistently from year 5 forward
- ✓ Portfolio markups supported by subsequent financing rounds at or above the prior mark
- ✓ Write-offs disclosed transparently, not hidden in aggregate
- ✓ Gross-to-net IRR bridge provided quarterly
- ✓ Reserve analysis showing capital available for follow-ons
For ongoing tracking after the initial report, see portfolio monitoring for VC funds: what metrics to track and how often. And for what happens when a fund reaches the end of its life, read VC fund end-of-life: NAV sales, write-offs, and distribution waterfalls.
The only number that matters at the end of a fund's life is DPI.
TVPI is a story. DPI is proof. Until cash hits your account, returns are a forecast with a GP's thumb on the scale.
Track VC and PE fund performance benchmarks on the VC/PE Performance Dashboard at Value Add VC. Originally published in the Trace Cohen newsletter.