Private Markets: VC, PE & Beyond

An individual who invests personal money in early-stage companies.

Example: An angel provides ₦20 million and industryA more specific group of companies with closely related products or services. advice to a startup.

Angel InvestorA person or organisation that commits capital with the expectation of a financial return. is an individual who invests personal money in early-stage companies; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilutionA reduction in an existing holder's ownership percentage after new securities are issued., preference rights and exit proceeds.

An angel provides ₦20 million and industry advice to a startup.

Model Angel Investor across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Minority rights matter most when founders and investors disagree.

The acquisitionThe purchase of control or ownership of a company or business. of a controlling interest in a company.

Example: A private-equity fund buys 80% of a family-owned business.

Buyout is the acquisition of a controlling interest in a company; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

A private-equity fund buys 80% of a family-owned business.

Model Buyout across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Also compare Leveraged Buyout, defined here as a company acquisition financed substantially with debt secured by or serviced from the acquired business.

A request by a private fund for investors to contribute part of their committed capital.

Example: The fund calls 20% of commitments to complete an acquisition.

Capital Call is a request by a private fund for investors to contribute part of their committed capital; the transaction finances a company or asset before a public market provides daily pricing and easy liquidityThe ease and speed with which an investment can be converted into cash without a major price concession., so governance and contractual protection carry unusual weight.

The fund calls 20% of commitments to complete an acquisition.

For Capital Call, review the cap tableA record of a company's shareholders, securities, ownership percentages, and potential dilution., securityA tradable financial claim or ownership interest, such as a share, bond, or fund unit. terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes.

A share of fund profits allocated to the manager after contractual conditions are met.

Example: The GP receives 20% of profits above the agreed waterfall.

Carried Interest is a share of fund profits allocated to the manager after contractual conditions are met; the headline valuation is only one term. Liquidation preferenceA right determining how proceeds are distributed to preferred shareholders before ordinary shareholders in a sale or liquidation., conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The GP receives 20% of profits above the agreed waterfall.

For Carried Interest, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; a reported valuation is not the same as cash an investor can realise.

A waterfall stage allowing the manager to receive a larger share of distributions after investors receive the preferred return.

Example: The GP receives the next distributions until its agreed profit share catches up.

Catch-Up is a waterfall stage allowing the manager to receive a larger share of distributions after investors receive the preferred return. The transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The GP receives the next distributions until its agreed profit share catches up.

A private-market review of Catch-Up should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; minority rights matter most when founders and investors disagree.

A provision requiring a manager to return excess carried interest if later losses make earlier payments too large.

Example: The GP repays carry after a failed late investmentAn asset or commitment of money made with the expectation of future income, growth, or both. reduces total fund profit.

Clawback is a provision requiring a manager to return excess carried interest if later losses make earlier payments too large; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The GP repays carry after a failed late investment reduces total fund profit.

For Clawback, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes.

A direct investment made alongside a private fund in a specific transaction.

Example: An LP invests extra capital directly in one portfolioThe complete collection of investments owned by an investor or managed under one mandate. company.

Co-Investment is a direct investment made alongside a private fund in a specific transaction; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

An LP invests extra capital directly in one portfolio company.

Before committing to Co-Investment, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; minority rights matter most when founders and investors disagree.

The total amount an investor agrees to provide to a private fund when called.

Example: An LP commits ₦1 billion but pays it over several years.

Committed Capital is the total amount an investor agrees to provide to a private fund when called; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

An LP commits ₦1 billion but pays it over several years.

Before committing to Committed Capital, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; illiquidity can last much longer than the original investment case assumes.

A new vehicle formed to acquire one or more assets from an existing fund and hold them longer.

Example: The GP transfers a strong portfolio company into a continuation fund.

Continuation Fund is a new vehicle formed to acquire one or more assets from an existing fund and hold them longer; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The GP transfers a strong portfolio company into a continuation fund.

Model Continuation Fund across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. A reported valuation is not the same as cash an investor can realise.

The set of potential investments under review at different stages.

Example: Three companies in the pipeline have reached due diligenceThe investigation performed before investing to verify facts, risks, ownership, finances, and legal claims..

Deal Pipeline is the set of potential investments under review at different stages; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

Three companies in the pipeline have reached due diligence.

Model Deal Pipeline across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Successful companies can still dilute early investors heavily.

The process of finding potential investment opportunities.

Example: The fund builds relationships with founders, advisers, and banks to source deals.

Deal Sourcing is the process of finding potential investment opportunities; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

The fund builds relationships with founders, advisers, and banks to source deals.

A private-market review of Deal Sourcing should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; a reported valuation is not the same as cash an investor can realise.

An investment made into a company or asset rather than through a pooled fund.

Example: A family officeAn organisation that manages investments and other financial affairs for one or more wealthy families. buys shares directly in a private business.

Direct Investment is an investment made into a company or asset rather than through a pooled fund; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

A family office buys shares directly in a private business.

Before committing to Direct Investment, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; minority rights matter most when founders and investors disagree.

The contractual order in which private-fund cash proceeds are allocated among investors and the manager.

Example: Capital is returned first, then the preferred return, catch-up, and carried interest.

DistributionIncome or realised gains paid by a fund to its unitholders. Waterfall is the contractual order in which private-fund cash proceeds are allocated among investors and the manager; when a fund pays a distribution, value leaves the fund and the NAV per unit normally falls by roughly the amount distributed, all else equal. The payment is not free money added on top of an unchanged fund value.

Capital is returned first, then the preferred return, catch-up, and carried interest.

For Distribution Waterfall, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes.

Distributions to paid-in capital, measuring cash returned to investors relative to contributions.

Example: A DPI of 0.8x means investors have received 80 kobo for each naira contributed.

DPI describes distributions to paid-in capital, measuring cash returned to investors relative to contributions; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

A DPI of 0.8x means investors have received 80 kobo for each naira contributed.

Model DPI across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. A reported valuation is not the same as cash an investor can realise.

Committed but uninvested capital available for future deals.

Example: The fund holds significant dry powder after a quiet deal year.

Dry Powder describes committed but uninvested capital available for future deals; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The fund holds significant dry powder after a quiet deal year.

A private-market review of Dry Powder should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; illiquidity can last much longer than the original investment case assumes.

The sale, listing, repayment, or other realisation of an investment.

Example: The venture fund exits when a larger company acquires the startup.

Exit is the sale, listing, repayment, or other realisation of an investment; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

The venture fund exits when a larger company acquires the startup.

For Exit, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes. Also compare Trade Sale, defined here as the sale of a company to an operating business, usually in the same or a related industry.

The planned durationA measure of a fixed-income portfolio's sensitivity to changes in interest rates. of a private fund from formation through final liquidationThe process of selling an entity's assets, paying creditors, and distributing any remainder to owners..

Example: A buyout fund may have a ten-year life plus extensions.

Fund Life is the planned duration of a private fund from formation through final liquidation; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

A buyout fund may have a ten-year life plus extensions.

Model Fund Life across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Successful companies can still dilute early investors heavily.

The party responsible for managing a private investment fund and making investment decisions.

Example: The GP selects portfolio companies and manages exits.

General Partner is the party responsible for managing a private investment fund and making investment decisions; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The GP selects portfolio companies and manages exits.

Before committing to General Partner, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; minority rights matter most when founders and investors disagree.

Minority or non-control equity invested in established, rapidly growing private companies.

Example: A fund provides capital to expand a profitable software company internationally.

Growth Equity describes minority or non-control equity invested in established, rapidly growing private companies; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

A fund provides capital to expand a profitable software company internationally.

A private-market review of Growth Equity should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; illiquidity can last much longer than the original investment case assumes.

The group responsible for approving or rejecting proposed investments.

Example: The deal team presents its case to the investment committee.

Investment Committee is the group responsible for approving or rejecting proposed investments; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The deal team presents its case to the investment committee.

For Investment Committee, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes. Also compare Deal Sourcing, defined here as the process of finding potential investment opportunities.

The period during which a private fund may make new investments.

Example: The fund has five years to deploy committed capital.

Investment Period is the period during which a private fund may make new investments; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The fund has five years to deploy committed capital.

Before committing to Investment Period, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; illiquidity can last much longer than the original investment case assumes.

The pattern in which private-fund returns are often negative early and improve later as investments mature.

Example: Fees and early write-downs create the lower part of the J-curve.

J-Curve is the pattern in which private-fund returns are often negative early and improve later as investments mature; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

Fees and early write-downs create the lower part of the J-curve.

For J-Curve, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; a reported valuation is not the same as cash an investor can realise.

A company acquisition financed substantially with debt secured by or serviced from the acquired business.

Example: The buyer contributes equity and uses acquisition debt for the remainder.

Leveraged Buyout is a company acquisition financed substantially with debt secured by or serviced from the acquired business; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The buyer contributes equity and uses acquisition debt for the remainder.

Model Leveraged Buyout across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Illiquidity can last much longer than the original investment case assumes.

An investor that commits capital to a private fund while generally not managing it.

Example: A pension fundA pool of retirement assets invested on behalf of members or beneficiaries. invests as an LP in a private-equity fund.

Limited Partner is an investor that commits capital to a private fund while generally not managing it; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

A pension fund invests as an LP in a private-equity fund.

The headline valuation is only one term; liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff. A reported valuation is not the same as cash an investor can realise.

Before committing to Limited Partner, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; illiquidity can last much longer than the original investment case assumes.

An acquisition in which an outside management team buys and takes control of a business.

Example: New executives acquire a poorly managed company with investor backing.

Management Buy-In is an acquisition in which an outside management team buys and takes control of a business; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

For example, new executives acquire a poorly managed company with investor backing.

For Management Buy-In, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; successful companies can still dilute early investors heavily.

An acquisition in which the existing management team buys the business.

Example: Managers partner with a fund to purchase the division they operate.

Management Buyout is an acquisition in which the existing management team buys the business; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

Managers partner with a fund to purchase the division they operate.

For Management Buyout, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; minority rights matter most when founders and investors disagree.

A recurring fee paid to the fund managerThe licensed firm responsible for investment decisions and day-to-day management of a fund., often based on commitments or invested capital.

Example: The GP charges 2% of committed capital during the investment period.

Management FeeThe recurring fee paid from fund assets to the fund manager for managing the portfolio. in Private Funds is a recurring fee paid to the fund manager, often based on commitments or invested capital; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The GP charges 2% of committed capital during the investment period.

Model Management Fee in Private Funds across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Illiquidity can last much longer than the original investment case assumes.

Multiple on invested capital, measuring total value or proceeds relative to invested capital.

Example: A ₦50 million investment worth ₦125 million has a 2.5x MOIC.

MOIC describes multiple on invested capital, measuring total value or proceeds relative to invested capital; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

A ₦50 million investment worth ₦125 million has a 2.5x MOIC.

For MOIC, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes.

Capital actually contributed by investors to a private fund.

Example: The LP has paid ₦400 million of a ₦1 billion commitment.

Paid-In Capital describes capital actually contributed by investors to a private fund; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

The LP has paid ₦400 million of a ₦1 billion commitment.

For Paid-In Capital, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; a reported valuation is not the same as cash an investor can realise.

A company in which a private investment fund holds an interest.

Example: The GP helps the portfolio company recruit a finance director.

Portfolio Company is a company in which a private investment fund holds an interest; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The GP helps the portfolio company recruit a finance director.

A private-market review of Portfolio Company should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; illiquidity can last much longer than the original investment case assumes.

A return that investors generally receive before the manager participates in carried interest.

Example: LPs receive an 8% preferred return before carry is paid.

Preferred Return is a return that investors generally receive before the manager participates in carried interest; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

LPs receive an 8% preferred return before carry is paid.

Before committing to Preferred Return, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; illiquidity can last much longer than the original investment case assumes.

Very early capital used to test an idea, form a team, or build a prototype.

Example: The founders use pre-seed money to interview users and create an MVP.

Pre-Seed Funding describes very early capital used to test an idea, form a team, or build a prototype; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The founders use pre-seed money to interview users and create an MVP.

Before committing to Pre-Seed Funding, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; a reported valuation is not the same as cash an investor can realise.

Investment in privately held companies, often with active ownership and a multi-year exit plan.

Example: A fund acquires a controlling stake in a manufacturing company.

Private Equity means investment in privately held companies, often with active ownership and a multi-year exit plan; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

A fund acquires a controlling stake in a manufacturing company.

Before committing to Private Equity, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified.

The minimum return that must be achieved before carried interest becomes payable under the fund terms.

Example: The manager earns carry only after the fund exceeds an 8% hurdle.

Private-Fund Hurdle RateThe minimum acceptable return for an investment or project. is the minimum return that must be achieved before carried interest becomes payable under the fund terms; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

The manager earns carry only after the fund exceeds an 8% hurdle.

For Private-Fund Hurdle Rate, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; successful companies can still dilute early investors heavily.

The internal rate of returnThe discount rate that makes a project's net present value equal to zero. calculated from the timing of private-fund contributions and distributions.

Example: Earlier cash returns increase IRR even when the final multiple is unchanged.

Private-Market IRR is the internal rate of return calculated from the timing of private-fund contributions and distributions; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

Earlier cash returns increase IRR even when the final multiple is unchanged.

Model Private-Market IRR across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration.

Residual value to paid-in capital, measuring remaining reported fund value relative to contributions.

Example: An RVPI of 1.2x means unrealised holdings equal 1.2 times paid-in capital.

RVPI describes residual value to paid-in capital, measuring remaining reported fund value relative to contributions; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

An RVPI of 1.2x means unrealised holdings equal 1.2 times paid-in capital.

A private-market review of RVPI should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; minority rights matter most when founders and investors disagree.

A fund that buys existing interests in private funds or private companies.

Example: An LP sells an older fund position to a secondary fund.

Secondary Fund is a fund that buys existing interests in private funds or private companies; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

An LP sells an older fund position to a secondary fund.

Before committing to Secondary Fund, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; illiquidity can last much longer than the original investment case assumes.

The sale of an existing private investment interest to another investor.

Example: An early shareholderA person or entity that owns one or more shares in a company. sells shares to a growth-equity fund.

Secondary Sale is the sale of an existing private investment interest to another investor; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

For example, an early shareholder sells shares to a growth-equity fund.

For Secondary Sale, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; illiquidity can last much longer than the original investment case assumes.

Early financing used to develop a product, validate demand, and build an initial team.

Example: A startup raises seed funding to launch its first commercial version.

Seed Funding describes early financing used to develop a product, validate demand, and build an initial team; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

A startup raises seed funding to launch its first commercial version.

Before committing to Seed Funding, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; illiquidity can last much longer than the original investment case assumes.

An institutional venture round commonly used to scale a business with early product-market evidence.

Example: The company raises Series A to expand sales and engineering.

Series A Funding is an institutional venture round commonly used to scale a business with early product-market evidence; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

The company raises Series A to expand sales and engineering.

Model Series A Funding across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Successful companies can still dilute early investors heavily.

A later venture round generally used to accelerate expansion after the business model has gained traction.

Example: The startup enters three new markets after its Series B.

Series B Funding is a later venture round generally used to accelerate expansion after the business model has gained traction; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

The startup enters three new markets after its Series B.

Before committing to Series B Funding, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified; minority rights matter most when founders and investors disagree.

A growth-stage funding round often used for major expansion, acquisitions, or preparation for public markets.

Example: The company raises Series C to acquire a smaller competitor.

Series C Funding is a growth-stage funding round often used for major expansion, acquisitions, or preparation for public markets; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

The company raises Series C to acquire a smaller competitor.

Model Series C Funding across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Illiquidity can last much longer than the original investment case assumes.

The sale of a portfolio company from one private-equity firm to another.

Example: A mid-market fund sells the business to a larger buyout fund.

Sponsor-to-Sponsor Sale is the sale of a portfolio company from one private-equity firm to another; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

A mid-market fund sells the business to a larger buyout fund.

Before committing to Sponsor-to-Sponsor Sale, identify who controls key decisions, what happens in a weak exit, whether more capital will be required and how ownership can be verified.

The sale of a company to an operating business, usually in the same or a related industry.

Example: A global payments company buys the startup.

Trade Sale is the sale of a company to an operating business, usually in the same or a related industry; the economic effect of the transaction should be traced through the capitalisation table: cash invested, securities issued, ownership, dilution, preference rights and exit proceeds.

A global payments company buys the startup.

For Trade Sale, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; successful companies can still dilute early investors heavily.

Total value to paid-in capital, equal to distributions plus residual value divided by paid-in capital.

Example: A 0.8x DPI plus 1.2x RVPI gives 2.0x TVPI.

TVPI describes total value to paid-in capital, equal to distributions plus residual value divided by paid-in capital; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

In formula form, the measure uses total value to paid-in capital, equal to distributions plus residual value as the numerator and paid-in capital as the denominator. A 0.8x DPI plus 1.2x RVPI gives 2.0x the transaction.

A private-market review of TVPI should test management claims against bank, customer and product data and should price the lack of liquidity explicitly; minority rights matter most when founders and investors disagree.

The portion of committed capital not yet called or contributed.

Example: After paying ₦400 million, the LP has ₦600 million unfunded.

Unfunded Commitment is the portion of committed capital not yet called or contributed; the headline valuation is only one term. Liquidation preference, conversion, anti-dilution, control and follow-on rights can change the actual payoff.

After paying ₦400 million, the LP has ₦600 million unfunded.

For Unfunded Commitment, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; minority rights matter most when founders and investors disagree.

Equity financing for young, high-growth companies with substantial uncertainty.

Example: A venture fund invests in an early-stage healthtech startup.

Venture Capital describes equity financing for young, high-growth companies with substantial uncertainty; the transaction finances a company or asset before a public market provides daily pricing and easy liquidity, so governance and contractual protection carry unusual weight.

A venture fund invests in an early-stage healthtech startup.

Model Venture Capital across dilution and exit scenarios; read the legal documents rather than relying on the pitch deck's valuation or return illustration. Illiquidity can last much longer than the original investment case assumes.

The year a private fund begins investing or first draws capital, used to compare similar funds.

Example: A 2024 vintage fund is compared with other funds launched around 2024.

Vintage Year is the year a private fund begins investing or first draws capital, used to compare similar funds; the transaction operates in a negotiated market where valuation, investor rights, information access and exit terms are set by contract rather than continuous exchange trading.

A 2024 vintage fund is compared with other funds launched around 2024.

For Vintage Year, review the cap table, security terms, investor rights, use of funds, runway, governance, reporting, follow-on needs and credible exit routes; minority rights matter most when founders and investors disagree.