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Qualified purchaser

A US investor meeting a higher threshold than accredited investor status, generally based on investments owned, permitting participation in funds relying on a broader exclusion from registration.

Qualified purchaser — A US investor meeting a higher threshold than accredited investor status, generally based on investments owned, permitting participation in funds relying on a broader exclusion from registration.

The qualified purchaser threshold exists specifically to enable the Section 3(c)(7) exclusion, which removes the investor-count cap that constrains 3(c)(1) funds — the structural reason many larger private funds require this higher bar rather than the lower accredited investor standard.

Frequently asked questions

What is the qualified purchaser threshold based on?

Generally the amount of investments owned, a materially higher bar than accredited investor status, which is based on income, net worth or professional credentials.

Why would a fund require qualified purchaser status instead of just accredited investor status?

Because it allows the fund to rely on the Section 3(c)(7) exclusion from the Investment Company Act, which permits a far larger number of investors than the 3(c)(1) exclusion's cap.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

Accredited investorA US investor meeting income, net worth or professional-credential thresholds under Regula Accredited investor vs qualified purchaserRelated reading.SubscriptionThe process and documents by which an investor commits to a fund, including eligibility ve

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