What it works out
- IRR: the annual return that makes the dated calls, distributions and today's valuation balance, worked out from the actual dates.
- TVPI: total value to paid in, what has come back plus what is still held, for every pound called.
- DPI: distributions to paid in, the part of that already returned as cash.
- RVPI: residual value to paid in, the part still held in the fund.
- Called and uncalled: how much of the commitment has been drawn, and how much the fund can still ask for.
The J-curve
In a fund's early years capital is called for fees and new investments before any of them have grown, so your cash position falls below zero. Distributions bring it back, and with what the fund still holds the line rises above where it started. Drawn from your own flows, the curve shows where a fund is in that life.
Why the figures come from the flows
A multiple typed in from a statement is right on the day it is typed and wrong after the next call. Worked out from every flow you record, the multiples, the IRR and the curve move with the fund.
Questions
What is the difference between TVPI and DPI?
TVPI counts everything: money back plus what the fund still holds, per pound paid in. DPI counts only the money already returned as cash. The gap between them is value still to be realised.
Why is a fund's IRR negative at first?
Because early calls pay fees and buy investments that have not yet grown, so the money out comes before any money back. That early dip is the bottom of the J-curve.
Does CoreFi connect to my fund administrator?
No. You record each capital call, distribution and valuation from the notices your fund sends, and CoreFi works everything out from them.
See your own money this way
CoreFi works this out from your own accounts, alongside everything else you own and owe. Join the waitlist and we will email you when it opens.
No spam. One email when it opens, and you can leave the list at any time.