What is a Qualified Investor vs. Accredited Investor?
Qualified investors, also known as qualified purchasers, are different from accredited investors because their status depends more on the value of their investments rather than their net worth, income, or credentials. In order to be considered qualified purchasers, individuals need to invest either $5 million for themselves or $25 million for themselves and other qualified purchasers. If an individual wants to invest through a trust, there are two scenarios in which the trust can be considered a qualified purchaser. The first one is if the trust has at least $5 million in investments, and two or more close family members own the trust. In this case, spouses, siblings, descendants, and/or their respective spouses are considered close family members.