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Is it better a higher TVPI or lower?

Hello,

Reading CIT about PE Secondaries, one quantiative benefit is a lower TVPI, but given that the formula is D+NAV/C i though that a higher ratio would be preferable in every case because the terminal value (NAV) of the numerator would be higher hance, the fair value of your investment given your contributions would be higher.

Can someone clarify this for me?

Thanks.

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You’ve misread the article but your thinking is correct.

A downside of acquiring Secondaries is that they have lower TVPIs which is a result of these being bought at a later stage when they would already have paying back distributions to the original owner.