# Net Asset Value (NAV)

**Net Asset Value (NAV)** is the total fair value of a fund's assets at a point in time, net of any fund-level liabilities. For a private equity fund, NAV is primarily the sum of the [fair values](/reporting-and-metrics/fair-value.md) of all portfolio positions, computed per the [IPEV Valuation Guidelines](/reporting-and-metrics/ipev.md) (§2.1.29).

## Formula

```
Fund NAV = Sum of all portfolio position fair values − Fund-level liabilities
```

Fund-level liabilities typically include management fee accruals, unfunded organizational expenses, and any outstanding credit-facility borrowings. For most closed-end PE funds, liabilities are minimal and NAV is approximately equal to the gross sum of position fair values.

## Role in Performance Metrics

NAV appears in two of the three core LP return metrics:

| Metric   | Uses NAV? | Formula                                 |
| -------- | --------- | --------------------------------------- |
| **TVPI** | Yes       | (Distributions + NAV) / Paid-in capital |
| **DPI**  | No        | Distributions / Paid-in capital         |
| **RVPI** | Yes       | NAV / Paid-in capital                   |

RVPI is entirely derived from NAV — it measures how much of the fund's unrealized value remains per dollar called. As positions are exited and NAV falls, RVPI declines and [DPI](/reporting-and-metrics/dpi.md) rises.

## Reporting Cadence

| Frequency | Status    | Who signs off           |
| --------- | --------- | ----------------------- |
| Quarterly | Unaudited | GP / Fund administrator |
| Annual    | Audited   | External auditor        |

GPs report unaudited NAV quarterly to LPs. Annual figures are audited and become the basis for LP capital account statements. Gildi marks each NAV record with its audit status — unaudited marks can be revised; audited marks require a supervised amendment.

## LP NAV vs Fund NAV

Each LP's share of the fund NAV is proportional to their ownership percentage:

```
LP NAV = Fund NAV × (LP commitment / Total fund commitment)
```

Gildi displays each LP's pro-rata NAV share on their fund overview page alongside their [paid-in capital](/fund-mechanics/paid-in-capital.md) and [RVPI](/reporting-and-metrics/rvpi.md).

## NAV as Fee Basis

In funds that have stepped down from committed-capital fees, the management fee switches to a NAV basis — typically at the end of the investment period. The fee is then computed as a percentage of the current fund NAV at each quarterly reporting date.

## How Gildi Stores NAV

Gildi stores a NAV record at each reporting date, keyed to the fund and the period end date. Each record includes:

* Gross position fair values (per portfolio company)
* Fund-level liabilities
* Net NAV
* Audit status and signoff date

Historical NAV records are immutable once audited. Gildi surfaces the NAV trend in the GP dashboard and in LP quarterly reports.


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