A qualified purchaser, or “QP,” must exceed a higher bar such as $5 million in investments as an individual or $25 million in investments as an entity. Under certain exemptions, funds are permitted to have more of these individuals or entities participating as investors. Rolling funds are set up with parallel fund structures underneath, so a fund may have a limited number of accredited investors (the “99/250 investor” limit) and a higher or unlimited number of QPs.
The term “qualified purchaser” is defined in Section 2(a)(51) of the Investment Company Act of 1940. You can visit the SEC’s website here for the full definition.