Fund Performance Metrics - DPI, RVPI, TVPI, and IRR Calculation
Calculating and recording the standard PE fund performance metrics: DPI (Distributions to Paid-In), RVPI (Residual Value to Paid-In), TVPI (Total Value to Paid-In), and Net IRR for LP reporting.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Total Contributed Capital (Paid-In) | Memo: Capital | 80,000,000.00 | - |
| Total Distributions to LPs (Cash + In-Kind) | Memo: DPI Numerator | - | 52,000,000.00 |
| Remaining Portfolio Fair Value (NAV) | Memo: RVPI Numerator | - | 64,000,000.00 |
| TVPI = (52M + 64M) / 80M = 1.45x | Memo: Performance | - | - |
| Net IRR (after fees, carried interest) | Memo: Performance | - | - |
💡 Accountant's Note
DPI = Distributions / Paid-In Capital (measures cash-on-cash return). RVPI = Remaining NAV / Paid-In Capital (measures unrealized value). TVPI = DPI + RVPI (total value multiple). Net IRR is the LP's actual annualized return after all fees and carried interest. These are the four metrics every LP demands in quarterly reports. TVPI of 1.45x means LPs have received $1.45 in value for every $1.00 invested.
Practitioner & Systems Framework
💻 ERP Architecture
Most fund accounting platforms calculate these metrics automatically from the cash flow history. Net IRR requires the exact timing of all capital calls and distributions (to the day). Gross IRR (before fees and carry) is also reported for comparison. Report both fund-level and deal-level metrics.
⚠️ Audit Flags
Auditors do not typically audit IRR calculations, but they do audit the inputs (cash flows, dates, NAV) that feed into the calculation. DPI calculations are directly verified against the distribution history. TVPI is verified against the audited NAV.
📄 Required Documentation
Capital call history with dates, distribution history with dates, current period NAV, IRR calculation model (Excel or fund system output), LP quarterly report showing all four metrics.
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