MOIC vs TVPI (FoF / LP Investing)
Can someone please explain the difference between MOIC anf TVPI in fund investing?
I read that MOIC is the return on commited capital. While TVPI is the return on called/invested capital.
E.g. a LP commits 100m and 10m was called/invested so far. Book value has risen to 20m. Hence:
MOIC: 0,2x
TVPI: 2x
Is that correct?
TVPI is monopoly return, paper gain, illusory.
So is MOIC. But what is the difference?
MOIC is gross return / TVPI is net of fees and carry.
TVPI is what a LP gets as a return
Mhmm according to moonfare the difference is commited capital vs called capital.
Would also think what you said is the difference between gross/net MOIC.
No, both can be gross or net. There is no difference between the two.
of course there is a difference when the fund is not fully called
I meant for a particular investment
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