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Record the starting components
Before the fictional transaction, paid-in is 100, distributions 40 and residual value 110. TVPI is 1.5×. The case assumes the next distribution reduces residual value by exactly the same amount, with no costs, gain, loss or new capital.
Move 20 between components
After distributing 20, distributions are 60 and residual value 90. DPI rises from 0.4× to 0.6×; RVPI falls from 1.1× to 0.9×. TVPI remains (60+90)/100 = 1.5×.
| Record | DPI | RVPI | TVPI |
|---|---|---|---|
| Before | 0.4× | 1.1× | 1.5× |
| After | 0.6× | 0.9× | 1.5× |
Avoid adding the distribution without reducing the holding
Keeping residual 110 and adding the new 20 would report total value 170. That duplicates the same transferred value under the stipulated transaction. Verify whether the source NAV is before or after the payout.
Keep the no-other-change assumption explicit
An actual sale can generate a gain or loss, costs or timing differences. This case isolates a value transfer to explain the reconciliation. It does not claim every real distribution leaves TVPI unchanged.