Total Value to Paid-In (TVPI)

A private equity and venture capital performance metric measuring the ratio of cumulative cash distributions returned to investors relative to the capital they have contributed. A DPI of 1.0x means investors have received back their original investment.

The total value of a business including both equity and debt, minus cash. Calculated as market capitalisation plus total debt minus cash and equivalents.

The present value of future profits from existing business, plus adjusted net asset value. Originally developed for insurance companies, the concept is increasingly applied to any business with long-duration revenue streams, subscription contracts, or intangible assets that generate predictable future cash flows.

The year in which a private equity or venture capital fund makes its first investment or its final close. Vintage year is used to group and compare fund performance because macroeconomic conditions at the time of investment significantly influence returns.

The pattern of returns typically experienced by private equity and venture capital funds, where early years show negative returns (due to fees and unrealised investments) before turning positive as portfolio companies mature and generate exits. The shape of a fund's J-curve reflects its deployment pace and value creation speed.

A clause in a private equity or venture capital fund agreement that adjusts the distribution of carried interest at the end of the fund's life to ensure the general partner has not received more carry than entitled based on overall fund performance. Lookback provisions protect limited partners against early distributions that overstate returns.

An investment strategy that spreads private equity or venture capital commitments across multiple fund vintage years to reduce the impact of any single economic cycle on portfolio performance. Vintage diversification is a core principle of institutional portfolio construction and helps smooth the J-curve effect inherent in illiquid fund investments.

A private equity or venture capital fund that continues to operate beyond its intended life, holding illiquid portfolio companies that have neither achieved exit nor been written off. Zombie funds present governance challenges, carry ongoing management costs, and often reflect unrealised intangible asset potential that has failed to convert into realisable value.

Return on Equity (ROE)

Net income divided by shareholders' equity, measuring the return generated on owners' invested capital.