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Pool two compatible private-fund records

Compatible fund records with paid-in 50 and 150 produce pooled TVPI 1.275×.

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Read the component amounts

The original record A has P = 50, D = 20 and V = 55. Record B has P = 150, D = 30 and V = 150. Both use the same population definition, date, currency and reporting basis.

Aggregate each column

Pooled paid-in is 200, distributions 50 and residual value 205. The pooled ratios are DPI 0.25×, RVPI 1.025× and TVPI 1.275×. The value components sum to 255.

Original pooled amounts
RecordPaid-inDistributedResidualTVPI
A5020551.5×
B150301501.2×
Pooled200502051.275×

Reproduce the pooled TVPI

Paid-in weights are 50/200 and 150/200. Thus 0.25×1.5 + 0.75×1.2 = 1.275. An equal average of 1.35 gives the smaller fund too much influence for this pooled-capital question.

Avoid treating the pool as a rate calculation

The pooled ratio combines amounts under the chosen basis. It does not incorporate the dates at which either fund used capital. Preserve their transaction records if the next question asks for pooled investor IRR.

Further references