Glossary

Residual Value to Paid-In Capital (RVPI)

Also known as: Unrealized Value Multiple, RVPI

A closed-end fund performance multiple equal to the current unrealized net asset value of a fund's remaining holdings divided by cumulative capital paid in, representing the portion of total performance still dependent on future realization.

RVPI should decline toward zero as a fund approaches the end of its life and liquidates its remaining assets; a fund late in its stated term that still carries a high RVPI signals a meaningful amount of unsold inventory that must be disposed of, potentially into an unfavorable exit market, or that will require the general partner to seek a fund extension to avoid a forced sale. Because RVPI is built entirely from the manager's own marks, it carries the same appraisal-based valuation uncertainty as TVPI, and is the component of a fund's reported multiple that consultants and LPs scrutinize most closely — including through independent secondary-market pricing indications — when assessing whether a fund's stated performance is likely to hold up through final realization.