What is a Qualified Purchaser (QP)?

A Qualified Purchaser is an investor that meets any of the following criteria:

  • an individual or family-owned business not formed for the specific purpose of acquiring the interest in the fund that owns $5,000,000 or more in investments
  • a trust not formed for the specific purpose of acquiring the interest in the fund which is sponsored by and managed by qualified purchasers
  • an individual or entity not formed for the specific purpose of acquiring the interest in the fund which owns and invests at least $25,000,000 in investments (or someone who is acting on account of such a person)
  • an entity, of which each beneficial owner is a qualified purchaser.

 

The complete definition can be found in in Section 2(a)(51)(A) of the 1940 Act

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