Qualified Purchaser – U.S.

A classification of U.S. investor type that meets specific standards set by the U.S. Securities & Exchange Commission to invest in certain alternative investments. A qualified purchaser is:

• A person/family company/trust with an investment portfolio valued at a minimum of $5 million.
• A company with a portfolio of investments worth $25 million or more.

Regulators set these standards to ensure that investors are sufficiently sophisticated and understand the risks associated with such alternative investments as venture capital, hedge funds and private equity, which are often less liquid and can require larger financial commitments than traditional investments.

Qualified purchasers face higher regulatory standards and can access additional investment opportunities such as hedge funds, venture capital funds, and other private equity funds, which may not be registered with the SEC, providing that certain criteria is met.