Qualified Purchaser (QP)

A Qualified Purchaser, or QP, is a legal classification under U.S. investment company law. Individuals and family-owned entities that meet the investable-assets threshold defined by statute may qualify. Because the threshold is set by law and subject to change, families should verify current figures with a qualified attorney. The QP designation matters because it allows certain private funds, including many large hedge funds and private equity vehicles, to accept more investors without registering as public investment companies.

Think of it as a second gate beyond accredited investor status. A family might easily clear the accredited investor threshold but not yet meet QP requirements, limiting the range of funds available to them. This distinction is one reason that the range of options expands meaningfully as net worth grows, a dynamic explored in articles such as wealth at the $50 million level and wealth at the $100 million level.

A common confusion is conflating QP status with qualified eligible person or other regulatory categories. Each has distinct criteria and applies to different regulatory contexts. Families should not assume that meeting one threshold satisfies another. Legal counsel familiar with securities law is essential before relying on any eligibility determination.