Qualified Purchaser
A qualified purchaser is a higher eligibility standard than accredited investor, typically required for certain private fund structures.
Definition
Definition Qualified purchaser status is a regulatory classification generally associated with higher thresholds and is often relevant for private funds relying on specific legal exemptions. It affects who can be admitted and can influence fundraising strategy and investor base composition. Allocator Context Institutions and large family offices typically qualify, but verification still matters. Managers must align offering structure with target LP profile; if the fund requires qualified purchaser status, smaller investors may be excluded even if they are accredited. Decision Authority Legal and compliance confirm qualification through subscription/KYC. The fund’s exemption and structure often dictate the requirement. Why It Matters for Fundraising It determines the addressable market. Managers who are clear about eligibility upfront avoid wasted cycles with investors who cannot participate. Key Takeaways Higher bar than accredited investor Dictates who can invest Verification is a closing gate Shapes fundraising strategy and LP mix