{
  "slug": "qualified-purchaser",
  "name": "Qualified Purchaser",
  "aliases": [
    "QP"
  ],
  "jurisdiction": "US",
  "regulator": "SEC",
  "kind": "rule",
  "effective_date": "1996-10-11",
  "summary": "Investor qualification standard under §2(a)(51) of the Investment Company Act used to permit Section 3(c)(7) fund offerings. Generally requires individuals to own $5M+ in investments (or own/control $25M+ for entities not family-owned).",
  "key_provisions": [
    {
      "section": "Individuals",
      "summary": "Own at least $5M in investments."
    },
    {
      "section": "Family-owned entities",
      "summary": "Own at least $5M in investments."
    },
    {
      "section": "Other entities",
      "summary": "Manage at least $25M in investments for QPs or others (with carve-outs for trusts and KEs)."
    }
  ],
  "thresholds": [
    {
      "name": "QP — individuals",
      "value": 5000000,
      "currency": "USD"
    },
    {
      "name": "QP — entities (other)",
      "value": 25000000,
      "currency": "USD"
    }
  ],
  "related_regulations": [
    "investment-company-act-1940"
  ],
  "related_terms": [
    "accredited-investor",
    "section-3c7",
    "knowledgeable-employee"
  ],
  "official_text_url": "https://www.sec.gov/about/laws/ica40.pdf",
  "history": "Added to the ICA by NSMIA (1996)."
}