How do fund expenses work with the fund expense cap as set in the LPA?

As a fund, you just call a percentage, and then you allocate the money for different expenses and returns in Capital Accounts for the investors. So, in a $10 MM fund, if you call 20%, or $2 MM, then you start to allocate that $2 MM. 3% is allocated to management fees. $100K may be allocated to Organizational Expenses, depending on what you spend The Organizational Expense Cap is a limit based on spending, and the type of spending that can be allocated to the Organizational Expense bucket is defined in the LPA. So, you may end up spending $62,000 on Organizational Expenses, which is below the cap. Organizational Expenses get allocated pro rata in the Capital Accounts of each investor. So, if 10 investors each contribute $200K to the first close, each would be allocated $6,200 of Organizational Expenses. This amount will go down per investor as more investors commit capital in subsequent closing and capital calls. So basically, should our first capital call be for 2,600,000 (2.5M + 100k) 2,510,000 (2.5M + 10k)