3. Recycled and Retained Capital Strategy
- What criteria are used to determine the amount of capital to recycle versus distribute to LPs?
- Are there predefined thresholds or trigger events that guide the recycling of capital?
- How does the fund balance between maximizing distributions and maintaining recycled capital for follow-on investments?
- What are the typical scenarios where recycling capital is preferred over distribution?
- How does recycling impact the GP's carried interest calculation, and is this communicated transparently to LPs?
- Is recycled capital allocated primarily to existing portfolio companies or reserved for new opportunities?