Legal and compliance
Qualified purchaser
A higher investor standard needed for funds that admit more than one hundred investors.
Individuals generally need at least five million dollars in investments. Funds that rely on the 3(c)(7) exclusion can only take qualified purchasers, while 3(c)(1) funds are limited to one hundred beneficial owners.
Why it matters when you raise
It decides who you can accept and how large the fund's investor base can be.