RVPI (Residual Value to Paid-In Capital)

RVPI measures the current estimated value of a fund's remaining unrealized holdings — companies that haven't been sold, gone public, or otherwise generated a cash distribution yet — relative to LP paid-in capital. It represents the 'still in the pot' portion of TVPI.

RVPI naturally declines over a fund's life as positions get realized (converting RVPI into DPI); a fund late in its life with unusually high RVPI relative to DPI signals either that exits are being delayed, or that the GP is holding onto positions expecting future upside that hasn't yet materialized in cash.

RVPI tells you how much of a fund's reported performance is a promise rather than a fact. When a GP pitches a 3x fund, asking how much of that is DPI versus RVPI is the fastest way to separate realized results from paper optimism. For LPs, the trend matters more than the level: RVPI should convert into DPI over time as exits happen.

RVPI typically rises in a fund's early years as capital is deployed and companies are marked up, peaks mid-life, then declines as exits turn it into distributions. An RVPI that stays flat or keeps growing in years eight to twelve while DPI stalls means exits are stuck or marks aren't being tested — ask which positions drive the residual value and when the GP expects liquidity.

Don't assume RVPI converts to DPI one-for-one. Realizations usually come with some slippage versus the marks — transaction costs, buyer discounts, and processes that fail — and companies that haven't raised in years may be carried at a price set in a very different market.