Practical approach:

- Track recycling **per LP capital account**, not just at fund level.
- Maintain a simple schedule showing, for each LP:
- total contributions called
- cumulative distributions returned
- amount by which distributions have equaled/exceeded contributions
- resulting increase to that LP’s **Unused Capital Commitment**
- recycled capital actually re-called

Operationally, fund admin/accounting should update this after every distribution and capital call.

For a **$10 million** fund, **0% recycling** can be appropriate when:
- it is a **first fund**
- the strategy is **seed/pre-seed** with long exit timelines
- LPs are less experienced
- the manager wants simpler administration and fundraising

A **25% target is ambitious**; **10% to 20%** is more common, and many first funds avoid recycling due to complexity.

References:
- https://decilehub.com/base/1-general_questions/21557-is-a-25-fund-recycling-target-rate-realistic
- https://decilehub.com/base/1-general_questions/21457-what-s-the-industry-standard-for-fund-recycling-percentage-target-in-europe-and-in-the-united-states