Can we say "up to x%" or will we be required to recycle the exact percentage we choose to commit?
Pablo Vidal Arean
May 03, 2023
“Recycled Amount” shall mean the product derived from multiplying a Limited Partner’s Capital Commitment by the following percentage of such Limited Partner’s Capital Commitment, such that additional investments may be made by the Fund: [0%] [10%] [20%] By definition, it is "up to" the percentage of the recycling. Funds almost never call the total amount of capital of the fund.
The Recycle Amount percentage, as set forth in the Cornerstone LPA, will be the upper limit of what is able to be recycled and deployed - however a fund manager is not required to deploy up to that exact Recycled Amount percentage (and in fact this would be very unusual).