An accredited or sophisticated investor is an investor with a special status under financial regulation laws. The definition of an accredited investor, and the consequences of being classified as such, vary between countries.

What is considered a qualified purchaser?

A qualified purchaser or qualified investor can be either family-owned companies or individuals who own at least $5 million in investments. The term “investments” should NOT include a primary residence or any property used for business. The term “investments” is fairly broad and includes: stocks. bonds.

How do you prove a qualified purchaser?

To be considered a "qualified purchaser," at least one of the following criteria must be met: The purchaser is an individual or family owned business that owns $5 million or more in investments. If the purchaser is a family owned business, it cannot be formed solely for the purpose of investing in the fund.