Where accredited-investor status is the entry ticket to private offerings, qualified purchaser status determines the fund's own structure. A 3(c)(1) fund may accept accredited investors but is limited in number; a 3(c)(7) fund may take an effectively unlimited number provided every investor is a qualified purchaser.
The individual test is $5 million in investments, not net worth, so an illiquid business or a house does not count. Entities generally need $25 million in investments managed for others.
A related but distinct concept is the qualified eligible person used by commodity-pool-operator funds under CFTC rules, which mixes wealth with trading experience. Fund documents frequently require both.
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