Fund economics

Recallable distributions

Also called recallable capital, returned capital subject to recall, recallable proceeds.

Definition

Recallable distributions are amounts distributed to limited partners that the limited partnership agreement allows the general partner to call again, usually proceeds returned within a set period of the investment or capital returned before it was invested, so the distribution restores unfunded commitment instead of permanently reducing it.

Updated October 9, 2026Checked against our editorial standards

Example

An LP commits $10M. The fund has called $6M, leaving $4M unfunded. The fund makes a $1M bridge loan to a company that repays it within the year, and distributes the proceeds flagged as recallable. The LP's 10% share is $100,000. Because the distribution is recallable, the LP's unfunded commitment goes back up to $4.1M rather than staying at $4M. A year later the fund recalls the $100,000 in an ordinary capital call to fund a new investment, and unfunded returns to $4M.

Confused with

Recycling. Recycled proceeds never leave the fund. A recallable distribution is paid out and then called again, which means two wires and two entries on the LP's books.

Clawback. A clawback is the GP returning carry. A recallable distribution is an LP contributing again, under a commitment they already made.

In practice

The distribution notice must say which part is recallable, and the capital account statement should carry a separate recallable balance, because the LP's own records will otherwise show a lower unfunded commitment than the fund's. Whether recallable amounts count as distributions for DPI depends on the reporting convention used, and the convention should be stated. Reconciling this number is one of the more common year-end queries from LPs.

Related terms

RecyclingRecycling is the reinvestment of proceeds from realised investments, or of capital returned early, into new or follow-on investments instead of distributing them to limited partners, permitted by the limited partnership agreement up to a cap and usually only during the investment period.
Capital callA capital call, also called a drawdown, is a notice from the general partner requiring each limited partner to wire a portion of their committed capital to the fund by a due date, usually ten business days, to fund investments, fees or expenses.
Unfunded commitmentUnfunded commitment is the portion of a limited partner's capital commitment that the fund has not yet called, calculated as total commitment less contributions to date plus any distributions the LPA makes recallable, and represents the LP's remaining obligation to fund capital calls.
DPI (distributions to paid-in capital)DPI, distributions to paid-in capital, is the total cash and stock distributed to limited partners divided by the total capital they have contributed.