RVPI

CFA Level II
#1

Hi all,

Please could you confirm my understanding is correct:

  1. DPI = the return the fund has made on its “Called” capital;

  2. RVPI = the return the fund has made on the “Total Committed” capital.

I am not sure if RVPI is on the total committed amount of the difference between the invested and committed capital???

Thanks in advance

#2

RVPI is Ending NAV After/ END Paid in Capital

#3

Thanks for this but I was looking for the interpretation of that the formula (which is in the text) represents.

#4

It’s the unrealized return on in investment.

#5

ro424 is correct with explanation. I will just add that you take everything left in the P/E investment that has not been paid out, and divide it by paid in capital.

That way, if you take DPI + RVPI you get TVPI.

hope that makes sense.

#6

Thanks guys - the key point that I wanted to clarify here is that both DPI and RVPI both have “Capital Called” in the denominator rather than "Commited Capital.

Thanks