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.