How to Track Recycling Provisions as an LP

How to track recycling provisions as an LP is remaining investable capacity when the limited partnership agreement lets the GP recycle proceeds, or recallable capital, back into the commitment. Raziel's recallable distribution tracking page is the recallable flag on a cash-in row. Raziel's unfunded commitment tracker is remaining unfunded after the ILPA walk. This page is the recycle cap, recycled to date, and what is still left to put to work.

This is not legal, tax, or investment advice. Raziel does not provide it. Copy the recycle cap from the LPA you signed. Do not invent a recycle percent.

What a recycling provision is (and is not)

ILPA Principles 3.0 Definitions: Recycling is a provision in the LPA allowing the GP to recycle the proceeds from an exit back into the fund, within a defined period of time. Recycled capital is added back to the LP's undrawn capital commitment and available for draw down for further investments during the investment period.

ILPA's public Private Equity Glossary has no Recycle headword. It does define Recallable: the total amount of distributions that may be recalled by the fund at a future date. The 2011 Capital Call and Distribution Notice Best Practices glossary uses the same sentence. Related, not the same ledger. A recycle can happen without a wire to you. Proceeds stay in the fund and get redeployed. A recallable distribution is cash that already left, with unfunded going back up.

ILPA's January 2025 Performance Template guidance: the template does not include transaction types to account for recycled capital, or capital earned by the Fund as income or from a realization and reinvested or used to pay fees and expenses. Some GPs capture gross transactions, others net. Disclose the treatment in Footnotes. If you only flag recallable on distribution notices, you will miss recycle that never left the partnership.

Copy the recycle cap from the LPA

ILPA Principles 3.0, Recycling of Distributions: the amount of total distributions that are subject to recycling provisions should have either a mutually agreed cap, or a monitoring threshold such that LPs can more accurately project their cash requirements. The amount of the cap or monitoring threshold should be established based on factors such as the GP's track record and the strategy of the fund. Recycling provisions, including the classification of any unused, recallable distributions, should expire at the end of the fund's investment period. After that date, remaining recycle capacity is not a second unfunded balance you can still treat as live investable capacity unless the LPA says otherwise.

ILPA does not publish a market recycle percent. The cap is the number in your LPA. If the LPA is silent, record that it is silent. Do not paste a percent from another fund. The ILPA Model LPA notes that some investors require a cap on total investments that may be possible through recycling. That note is a drafting reminder, not a rate to copy onto your row.

Columns on the recycle ledger

Open one row per LP interest, per fund. Do not collapse two vehicles that share a GP brand. Do not keep a single remaining-unfunded cell and call it recycle capacity.

• Recycle cap from the LPA. The mutually agreed cap or monitoring threshold. Copy the clause, the currency, and the base (commitment, contributions, or another base the LPA names). Leave percent blank if the LPA leaves it blank.

• Recycled to date. Cumulative proceeds, or recallable capital, already put back to work under that clause. Source: notices, the capital account, and any recycle summary the GP prints. The Performance Template will not give you a Recycled Capital type. Footnotes are where the GP says gross or net.

• Remaining recycle capacity. Cap minus recycled to date, after any expiry the LPA prints. This is remaining investable capacity under the recycle clause. It is not remaining unfunded.

• Effect on unfunded. ILPA: recycled capital is added back to the LP's undrawn capital commitment. A recycle that never distributed cash may still raise, or preserve, undrawn. A later call against that restored undrawn is a contribution. Copy Impact on Unfunded Commitment from the notice when you have it.

• Related recallable, if any. ILPA glossary: recallable is the total amount of distributions that may be recalled. If a slice of recycle is also a recallable distribution, point at the event row on the recallable ledger. Do not overwrite that cash-in.

Effect on unfunded is not remaining unfunded

The unfunded commitment tracker is remaining obligation after contributions, plus recallable distributions, less expired or released, plus or minus other adjustments. Recycle capacity can sit above that walk when the LPA lets the GP reinvest proceeds that never reduced your signed commitment. It can also sit inside that walk when unused, recallable distributions are classified as recycle and then expire at the end of the investment period.

If remaining recycle capacity and remaining unfunded always match, you have probably flattened two clauses. If they never talk to each other, you have missed ILPA's add-back: recycled capital is undrawn again, available for drawdown during the investment period. ILPA's glossary DPI counts recallable distributions in the numerator and reinvested capital from recallable distributions in the denominator. That is performance after cash moved. Recycle that never distributed does not belong in a DPI cell. This row is remaining investable capacity under the recycle clause.

When the ledger holds

The row holds if the cap is copied from the LPA, recycled to date is cumulative, remaining recycle capacity is a signed remainder, the unfunded effect is a separate column, and any related recallable has its own event. It fails when you invent a recycle percent, treat remaining unfunded as remaining recycle capacity, or flag recycle only when a distribution notice says recallable.

A workbook can hold the five columns. It still fails if the cap is a guess and recycled to date is a quarterly unfunded snapshot. Raziel's alternative-asset dashboard is the investment record those remaining-capacity rows can sit on: cash dates, documents, IRR and MOIC, AI ingest of the pack, capital calls, wallets and bank linking. Raziel does not issue capital calls and does not give investment advice. Copy the five columns. Leave the LPA math to the agreement and the notice.