TVPI-to-DPI Forecaster for Private Equity LPs
For institutional LP monitoring of how a private-equity fund's unrealized NAV may convert into distributions, DPI and residual value before termination.
The main private-equity LP question“When might this fund's reported TVPI turn into cash distributions for our institution?”
Projected conversion
DPI rises only when modeled distributions are paid; RVPI remains the value still held in NAV.
Projected terminal DPI
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DPI, RVPI and TVPI
Every year reconciles as TVPI = DPI + RVPI.
Annual distributions
Cash returned from the NAV available after growth and markdowns.
Remaining NAV and projected distributions
Compare value still held with cumulative cash produced during the forecast.
How the forecast works
Each year, beginning NAV grows and is marked down before the selected share is realized. Distributions reduce NAV and increase DPI. The model derives RVPI from remaining NAV and paid-in capital so the three performance ratios always reconcile.
Frequently asked questions
How does TVPI convert to DPI?
As modeled NAV is realized and distributed, DPI increases while RVPI declines. TVPI remains the sum of DPI and RVPI.
Does projected DPI include remaining NAV?
No. DPI includes distributions only. Remaining NAV is reported through RVPI.
Is the realization rate a prediction?
No. It is an illustrative scenario assumption, not a forecast supplied by the manager.