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Residual Value to Paid-In Capital (RVPI)

What is Residual Value to Paid-In Capital (RVPI)?

Residual Value to Paid-In Capital (RVPI) is a term used to measure the residual value of a private equity fund as a multiple of the capital paid in by the investors. The residual value is the current fair value of all assets held by the fund and the paid-in capital by the investors is the total of all contributed capital up to that time.

By itself, RVPI is a useful measure for investors in gauging the current value of a fund’s assets relative to the initial investment, while also providing a perspective on how much value remains in the fund in relation to distributions the investor may already have received. RVPI can also be combined with the Distributed Value to Paid-in Capital (DPI) to assess the Total Value to Paid-in Capital (TVPI) of the fund.

RVPI will change as the residual assets in the fund are valued each quarter. RVPI is also reduced as assets are realised through exits and capital is distributed to investors. A fund’s RVPI will therefore reduce to zero at the end of the fund’s life.

Key Takeaways

  • RVPI is a measure of the residual value of a private equity fund.
  • RVPI is expressed as a multiple of investors’ paid-in investment capital.
  • RVPI can be combined with DPI to determine the Total Value to Paid-in Capital (TVPI) of the fund.

RVPI in private equity: Why is it important?

RVPI represents an important metric for investors in that it provides the residual or unrealised value of a fund’s assets relative to what the investor has contributed.

Private equity funds distribute capital to investors upon exits and exits occur at different times during the life of a fund. As such, an investor’s returns for their initial investment during the life of a fund consist of capital distributed plus the residual value of unrealised assets. RVPI is the way that residual value is typically measured.

Since RVPI is a measure of how much of the investor’s capital remains in the fund, it also provides insight to the investor as to how much risk and opportunity remains in their investment.

Pros and Cons of RVPI


  • Easy to obtain, calculate and understand.
  • Widely used, along with DPI, to determine a fund’s total investment multiple to investors.
  • Provides a measure of the investor’s unrealised risk and opportunity in their investment.


  • Does not consider the time value of money.
  • Does not consider returns that have already been distributed.

RVPI Formula and Calculation

The formula for RVPI is as follows:

RVPI equals residual value divided by paid-in capital.


  • Residual Value is the estimated current value of all investment assets held by the fund.
  • Paid-in Capital represents the total capital contributed to the fund by the investors.

How to calculate RVPI: An example

The following is an example of a hypothetical PE fund:

  • It is 4 years since the fund opened and investors have contributed a total of $50 million.
  • The residual value of investment assets held by the fund is estimated to be $46 million.

 Calculating the RVPI for year 4 would produce the following result:

RVPI at year 4 equals USD 46 million divided by USD 50 million.
RVPI at year 4 equals 0.91x.

If we calculate the RVPI each year of the fund’s life, we would see the following values (in $ millions):

Year 1 2 3 4 5 6 7 8 9 10
Residual Value 26 30 33 45.5 55.5 54 46 34.5 24.5 0
Paid-in Capital 30 42 50 50 50 50 50 50 50 50
RVPI (at year-end) 0.87x 0.71x 0.66x 0.91x 1.11x 1.08x 0.92x 0.69x 0.49x 0

RVPI measures the residual value of a fund at any particular time during its life. Investors rely on this measure to provide a value for their remaining assets in the fund, which can be added to their existing distributions to provide a total investment return as a multiple of their initial investment.

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