A Partial Sale Changes the Certainty of the Return
A partial realization means selling some shares for cash while keeping the rest. The shares still held can rise or fall in value. DPI rises when the cash reaches LPs, while the remaining stake still counts toward TVPI. The sale changes both the cash available and the share of total value that has been realized.
The total reported value may barely move when a fund sells part of a position, but the quality of that value does. DPI is cash already returned; RVPI is still a mark. A partial sale moves some of the result from the second category into the first.
A $40 Million Sale's Effect on the Metrics
Suppose a $100 million fund distributes $40 million from the sale and still holds shares marked at $180 million. DPI is 0.4x, RVPI is 1.8x and TVPI is 2.2x before fees or a change in the remaining mark.
If the shares were sold at the value already used in the fund's accounts, the transaction has mainly moved value from RVPI to DPI. The $40 million is now available to LPs for spending, reallocation or future capital calls. The remaining $180 million is still exposed to the company and the exit market.
Liquidity Can Improve While TVPI Later Falls
If the $180 million residual mark falls by 25%, it becomes $135 million. Together with $40 million already distributed, total value is $175 million, so TVPI falls from 2.2x to 1.75x.
The decline comes from the lower residual mark. By completing the partial sale first, the fund reduced the amount exposed to that change and secured $40 million in cash.
Why Partial Liquidity Matters in a Slow Exit Market
The 2026 NVCA Yearbook reported $217 billion of US venture exit value in 2025. That was twice the 2024 level, yet only 27% of the 2021 peak.
At 27% of the 2021 peak, the 2025 exit market was still recovering from a much weaker base. In that environment, a partial transaction may be the only practical route from an old unrealized mark to DPI.
Cash Today Has an Opportunity Cost
Selling part of a strong company can reduce the final return if its shares keep rising. Holding every share has risks too. The fund stays exposed to one company and may lose its chance to sell.
Cash today comes at the cost of future returns on the shares sold. The peak price is unknowable in advance. A fund that has returned plenty of cash may have more room to hold than one facing pressure for distributions.
A partial sale raises DPI when the cash reaches LPs. The value of shares still held continues to affect TVPI.
Partial Realization Metric Bridge
A partial sale raises DPI once cash reaches LPs, while the remaining shares can still change the total return.
View bridge data and assumptions
| Component | Amount | Multiple on $100M fund |
|---|---|---|
| Distributed value | $40M | 0.4x DPI |
| Residual value | $180M | 1.8x RVPI |
| Total value | $220M | 2.2x TVPI |
Cash Returned and Value Remaining
The sale price provides evidence about the shares left. A sale above carrying value may support a higher mark. A lower price may indicate that the old mark was too high, or reflect different rights attached to the buyer's shares.
Transfer fees and carry reduce cash reaching LPs. Gross proceeds, the amount retained by the fund and the actual distribution explain where the sale money went.
What the Sale Leaves Behind
- How much of the original position was sold?
- Was the price above or below the prior carrying value?
- Did the buyer receive the same security and rights?
- How much cash reached LPs after costs and carry?
- Did the transaction change the remaining valuation?
The cash secured and the stake retained describe both sides of the sale: value returned now and future upside still exposed to the company.
Frequently Asked Questions
Does a partial realization reduce upside?
A partial sale can reduce upside if the company keeps compounding, but it lowers concentration and returns useful cash to LPs. The decision turns on whether the liquidity gained is worth the exposure sold.
Is DPI more important than MOIC?
DPI and MOIC answer different questions. DPI measures cash returned, while MOIC and TVPI also include the value that remains unrealized.