Qualified Purchaser (QP)

A qualified purchaser (QP) is a separate investor category under the Investment Company Act. As an individual, you generally qualify by owning at least $5 million in investments. Some family companies can qualify with at least $5 million in investments, while another category of entities needs at least $25 million in investments owned and invested on a discretionary basis. Additional conditions apply. Funds relying on Section 3(c)(7) generally accept only qualified purchasers.

Example: A fund organized under Section 3(c)(7) may require QP status as well as any accredited-investor status that applies.