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What are the trade-offs of setting the Recycled Amount at zero versus twenty percent?

The Cornerstone LPA lets you set recycling at zero, ten or twenty percent. I understand the mechanic, that distributions can be reinvested rather than returned, but I do not have a feel for the practical consequences. What does a higher recycling percentage do to a fund's ability to deploy, and how do limited partners typically react to it in negotiation?
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- **0% recycling**
- Lowest complexity and most LP-friendly
- No per-LP recycled-capacity tracking or recall mechanics
- Distributions go back to LPs, which can make Fund I fundraising easier
- But you give up potential extra deployable capital

- **20% recycling**
- Increases effective investable capital if you have early realizations during the investment period
- Can support more follow-ons or a few additional new checks
- But requires careful **LP-by-LP** accounting after each distribution and capital call
- More likely to invite LP questions or negotiation, especially in smaller first funds

- **LP reaction**
- **10% to 20%** is common; **25%** is considered ambitious
- First-time/smaller seed funds often choose **0%** for simplicity

References:
- https://decilehub.com/base/1-general_questions/164023-what-is-the-practical-difference-between-a-recycled-amount-of-0-10-and-20-for-a-small-fund
- 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

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