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Quick Answer
MOIC and TVPI both measure investment value as a multiple of capital, but they are not always calculated using exactly the same denominator.
MOIC generally measures value relative to invested capital.
TVPI measures total fund value relative to total paid-in capital.
In casual conversation, the terms are sometimes used almost interchangeably. In institutional private-market reporting, however, the distinction can matter.
What Is MOIC?
MOIC stands for Multiple on Invested Capital.
At its simplest:
MOIC = Total Investment Value ÷ Invested Capital
If $10 million is invested and the investment is now worth $20 million:
MOIC = 2.0x
The investment has generated two dollars of total value for every dollar invested.
What Is TVPI?
TVPI stands for Total Value to Paid-In Capital.
The standard concept is:
TVPI = (Distributions + Residual Value) ÷ Paid-In Capital
Suppose:
Paid-In Capital = $10M
Distributions = $6M
Remaining Value = $9M
Then:
TVPI = 1.5x
So What's the Difference?
The distinction comes down largely to invested capital versus total paid-in capital.
ILPA's current Performance Template makes this distinction explicit.
Under its granular methodology, the gross fund-level multiple is called MOIC because the denominator includes capital called for investments while excluding calls for fees and expenses.
When total paid-in capital is included in the denominator, ILPA refers to the metric as TVPI.
That is why you should always understand the methodology behind the number before comparing two investments.
Simple Example
Suppose an LP has contributed:
$10M for investments
plus
$1M for fees and expenses.
Total paid in = $11M
If total current and distributed value is $20M:
A simplified MOIC using invested capital would be: $20M ÷ $10M = 2.0x
Whereas a simplified TVPI using total paid-in capital would be: $20M ÷ $11M = 1.82x
Same fund.
Different denominator.
Different multiple.
Why Family Offices Should Care
When comparing private investments, don't simply ask:
What's the multiple?
Ask:
- Is this MOIC or TVPI?
- Is it gross or net?
- What is included in paid-in capital?
- Are fees included?
- How much value has actually been distributed?
- How much remains unrealized?
ILPA's updated reporting standards were specifically designed to make private-market performance reporting more consistent and comparable.
How MYFO Helps
MYFO tracks the underlying data needed to understand and calculate private-market performance, including:
- Invested capital
- Paid-in capital
- Distributions
- Current NAV
- Commitments
- Unfunded commitments
Using this data, MYFO calculates MOIC and TVPI directly within the application, so users can easily view these metrics at the individual fund or investment level.
Users can also generate reports to analyze performance across multiple investments on an aggregate basis, or use MYFO's Claude MCP connection to run additional analytics using their portfolio data.
This allows a family office to understand the numbers behind the multiple, rather than simply recording a headline MOIC or TVPI reported by a manager. Because MYFO's performance engine applies a consistent methodology to clean, structured data, these calculations remain standardized and reliable across the family's private-market portfolio.
In One Sentence
MOIC = value relative to invested capital.
TVPI = total value relative to total paid-in capital.
Always check the methodology before comparing them.
