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Use one declared convention
This original case defines paid-in as cumulative contributions of 100 and distributions as 40, with no recallable transaction or alternative netting adjustment. Residual is 110. The ratios use that explicit cumulative basis.
Inspect the altered denominator
Replacing paid-in with 100−40 = 60 gives 150/60 = 2.5, instead of TVPI 1.5. This shortcut changes the definition while leaving the numerator on the old basis.
| Denominator | Result | Basis |
|---|---|---|
| 100 | 1.5× | Supplied cumulative paid-in |
| 60 | 2.5 | Unsupported net capital substitution |
Do not generalize across methodology choices
A separately defined reporting method can treat particular transaction categories differently. That does not justify arbitrary netting of every distribution. Identify the selected method first, and adjust compatible inputs together when it actually calls for that treatment.
Trace a total to its transaction record
Retain cumulative contribution and distribution columns, then reconcile any disclosed adjustments. If the report’s paid-in definition is unclear, leave the mismatch unresolved rather than asserting a universal formula for all reporting practices.