In investment terms, what does RVPI stand for?

RVPI stands for Residual Value/Paid in Capital. It is a key metric used in private equity and venture capital to assess the remaining value of an investment relative to the amount that has been paid in by the investors. This metric helps investors gauge how much value is still tied up in their investment after accounting for distributions that have already been made.

The "Residual Value" component refers to the remaining worth of the investment after realizing some returns, while "Paid in Capital" signifies the total capital that has been contributed by the investors into the fund. By calculating RVPI, investors can better understand their position within an investment and make informed decisions moving forward, as it reflects the potential for future returns based on the current standing of the investment.

Other options do not accurately capture the terminology or meaning associated with RVPI. For instance, the first option misrepresents the components of the metric, while the second mixes up investment terms. The last option incorrectly connects total returns with paid in capital, which is not how RVPI is defined.