RVPI (Residual Value to Paid-In) measures the unrealised, remaining value of a private equity fund's portfolio relative to total paid-in capital. It represents the component of total return (TVPI) that has not yet been distributed to LPs: RVPI = NAV of remaining portfolio / Total paid-in capital. Combined with the DPI (distributions already paid), RVPI completes the TVPI: TVPI = DPI + RVPI. A fund with RVPI of 0.8x and DPI of 1.2x has a TVPI of 2.0x — having returned the capital plus 20% in distributions while retaining 80% of paid-in capital as unrealised value.

The critical issue with RVPI is that it depends entirely on the GP's own valuation of remaining portfolio companies. In the absence of a third-party transaction, these valuations are based on comparables, DCF, or cost multiples — all subject to discretion. A high RVPI in a mature fund (years 8–10) may reflect genuinely valuable unrealised assets awaiting exit, or may reflect reluctance to write down investments to market value. LP due diligence must assess the quality and consistency of the GP's portfolio valuation methodology.

At Hectelion, we provide independent valuation opinions on individual PE portfolio companies for RVPI verification purposes, particularly in LP-to-LP secondary transactions where the buyer of a fund interest must independently assess the NAV underlying the RVPI.

At Hectelion, we provide independent portfolio company valuations for RVPI verification in LP secondary transactions and fund due diligences.