Qualified Purchaser Status and Its Fund Exclusion

What this video covers

• The threshold math: why a natural person needs $5,000,000 in investments (not net worth), and when spousal or community property holdings count toward that figure
• Why an institutional buyer faces a $25,000,000 hurdle and must own and invest on a discretionary basis, not merely hold assets
• How the trust test runs one level down to the trustee and every contributing settlor, and why a $10,000,000 trust fails if its decision makers do not independently qualify
• The meaning of reasonable belief under the qualified purchaser fund exclusion, and how it is embedded in the term rather than an extra layer
• Why a single non-qualifying investor breaks the exclusion for the entire fund, not just that investor's interest, and the limited involuntary-transfer exceptions (gift, bequest, divorce, death) that preserve deemed qualified purchaser status
• The critical distinction between the Investment Company Act fund exclusion (which removes registration and investor-count caps) and the Securities Act (which still requires a separate exemption for the offering itself)
• How to avoid the accredited investor versus qualified purchaser trap, and why mixing the two statuses leads to a capped 100-investor limit instead of an uncapped fund