What's the difference between committed, called, and paid-in capital?

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AcadiFi · Accepted Answer

When an LP commits to a PE fund, they sign up to contribute a maximum amount — say $25M commitment. The GP then calls capital over the investment period (typically 4-5 years) as deals close. Called capital is what the GP has demanded; paid-in capital is what the LP has actually wired. Usually called = paid-in, barring defaults.

Key ratios reported quarterly:

**DPI (Distributions to Paid-In)** = cumulative distributions / paid-in capital. Measures realized cash returns. DPI > 1.0 means you have gotten back more than you put in.

**RVPI (Residual Value to Paid-In)** = current NAV of unrealized holdings / paid-in capital. Measures paper value still in the ground.

**TVPI (Total Value to Paid-In)** = DPI + RVPI. Total multiple of money.

Example: Northspire Fund IV, 6 years old, $25M commitment, $22M paid-in so far. Cumulative distributions: $14M. Current residual NAV: $19M.
- DPI = 14/22 = 0.64
- RVPI = 19/22 = 0.86
- TVPI = 1.50

The remaining $3M ($25M - $22M paid-in) is unfunded commitment — the LP must keep it liquid to meet future calls. Liquidity planning is critical: a sudden spike in calls during year 3-4 cannot be missed without penalty.

Net IRR is the time-weighted return on all cash flows (negative calls, positive distributions) plus terminal NAV at valuation date. DPI tells you realized; IRR tells you annualized; TVPI tells you multiple.

What's the difference between committed, called, and paid-in capital?

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