Practical difference is mostly **extra deployable capital vs complexity**:

- **0% recycling**
- Simplest
- No per-LP recycling tracking
- LPs get distributions back without recall mechanics
- Often best for **first-time, small, seed/pre-seed funds**

- **10% recycling**
- Moderate flexibility
- Lets the fund re-call some early distributions and slightly increase investable capital
- Usually manageable if admin is solid

- **20% recycling**
- More capital efficiency, but materially more admin
- Requires careful **per-LP capital account** tracking after each distribution and call
- Better only if early exits are likely and the team can handle the operations

For a small fund, **10% to 20% is common; 25% is ambitious**.
References: https://decilehub.com/base/1-general_questions/163618-how-do-managers-track-recycled-amount-capacity-per-lp-and-when-is-0-recycling-right-for-a-10m-fund, https://decilehub.com/base/1-general_questions/163740-what-is-the-reason-behind-setting-recycled-amount-to-0-as-default, https://decilehub.com/base/1-general_questions/21557-is-a-25-fund-recycling-target-rate-realistic