Use only the stated definitions
Assume one date, currency and investor population. The questions use their supplied cumulative paid-in convention with no recallable adjustment. Do not add a different reporting method or a hidden valuation assumption.
Reconstruct amounts before selecting a ratio
Check the denominator’s name, split total value into distributed and residual components, and sum fund amounts before pooling. A ratio that does not reproduce the supplied value can reveal a definition or weighting error.
Try the questions
Paid-in is 100, commitment 200, distributions 40 and residual 110. What is TVPI on the stated paid-in basis?
- A.
0.75
- B.
1.5×
- C.
2.5×
Answer and explanation
Answer: B
Total entered value is 150 and the named denominator is paid-in 100.
- A
This divides by commitment instead of paid-in.
- B
(40+110)/100 uses the stated common base.
- C
This incorrectly nets distributions out of the defined paid-in base.
In that record, which amount is already distributed?
- A.
40
- B.
110
- C.
150
Answer and explanation
Answer: A
The residual must not be relabeled as cash already returned.
- A
This is the supplied returned-value component.
- B
This is residual value, not the distribution.
- C
This combines returned and remaining value.
Compatible funds have paid-in 50 and 150 and TVPIs 1.5× and 1.2×. What is pooled TVPI?
- A.
1.35×
- B.
1.275×
- C.
2.7×
Answer and explanation
Answer: B
Pool amounts or use paid-in weights; both give 1.275×.
- A
The equal-fund mean ignores their unequal capital bases.
- B
Paid-in weights 25% and 75% reproduce total value 255 on capital 200.
- C
Adding dimensionless ratios does not form the pooled ratio.