Total Value to Paid-in Capital (TVPI)
Total Value to Paid-in Capital (TVPI) is a performance metric used in private equity to measure the total value generated by an investment relative to the capital invested. This ratio provides insight into both realized and unrealized returns, making it essential for evaluating the overall success of a fund and its ability to generate value for investors.
Key Takeaways
- Measures total value generated relative to capital invested.
- Includes realized and unrealized returns.
- Crucial for evaluating private equity fund performance.
- Key metric for investors.
