On this page
Define the simplified before record
Paid-in is 100, distributions 40 and residual value 110. The residual figure includes cash. A new investor contribution of 20 is received and remains as cash, with no fee, valuation change or other transaction.
Update both the base and residual
Paid-in becomes 120 and residual becomes 130. Distributions remain 40. TVPI becomes 170/120 = 1.416667×. Value above paid-in remains 170−120 = 50, equal to the prior 150−100.
| Record | Paid-in | Total value | Value above paid-in | TVPI |
|---|---|---|---|---|
| Before | 100 | 150 | 50 | 1.5× |
| After | 120 | 170 | 50 | 1.416667× |
Explain the ratio movement
The lower multiple does not represent a new money loss in this no-other-change case. New capital enters at one unit of value per unit paid-in, changing the ratio’s denominator and numerator together. The original value surplus is unchanged.
Keep cash inclusion visible
If the residual source excludes the added cash, the specified input boundary changes. A contribution can also pay fees or liabilities rather than remain as cash. Trace the actual movements instead of assuming this simplified bridge applies to every call.