What is a Qualified Purchaser (QP)?

A Qualified Purchaser (QP) is:

  • An individual or family business that owns $5M or more in investments;
  • A trust sponsored and managed by other qualified purchasers;
  • An individual or entity that invests at least $25M, either for their own accounts or on others’ behalf; or
  • An entity owned exclusively by qualified purchasers

Note that for the first three options, the trust/entity cannot have been formed for the purpose of making the fund or SPV investment.

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

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