A 2× fund multiple does not, by itself, say that investors have received twice their money. The distinction is visible in three related ratios.
Separate realized and residual
DPI divides distributions by paid-in capital. RVPI divides residual portfolio value by paid-in capital. TVPI adds the two. Carta describes this identity as a way to read a fund’s total performance without confusing remaining valuations with distributions.
Run a transparent example
Assume $100 million paid in, $30 million distributed, and $170 million of remaining net asset value on a consistent basis. DPI is 0.3×, RVPI is 1.7× and TVPI is 2.0×. If the remaining valuation falls to $120 million with no distribution, TVPI becomes 1.5× while DPI stays 0.3×. This is our constructed scenario, not a reported fund.
Ask what changed
Our reading checklist: identify the valuation date, fund age, fee basis and whether distributions include securities rather than cash. Then reconcile the movement in remaining value with actual distributions. A higher DPI after an exit and a higher RVPI after a private round tell different stories. Neither ratio alone supplies a time-adjusted return or a complete risk assessment.
Illustration assumes aligned accounting conventions. Fund documents, distribution composition and gross/net reporting must be checked.
Financial education, not investment or legal advice. Historical notes are retrospective analysis prepared in September 2026, not contemporaneous Venture Trace reporting.
Sources & scope
Carta
RVPI explained: The key to interim fund performance
- Source date
- 6 Oct 2025
- Retrieved
- 16 Sept 2026
- Period / geography
- Evergreen reference · United States context
Fund performance definitions
Page checked on retrieval date; not a historical snapshot. Educational explanation. Actual agreements, reporting conventions and jurisdictions differ.
