Unlike public securities, which are readily available to everyone, private fund offerings are restricted to specific individuals and institutions, which are defined by Regulation D of the Securities Act of 1933, and enforced by the SEC. While the same rules govern both individual and institutional investors, the required minimum assets are different:
Qualified Purchasers (QPs): A Qualified Purchaser is an investor that meets certain financial and sophistication standards, as defined in the Investment Company Act of 1940. QPs are individuals with >$5M in investments or investing entities with >$25M in investments.
Qualified Clients: Individuals with >$1.1M in assets under management with the advisor or a net worth of >$2.2M.
Accredited Investors: Individuals with >$1M in net worth, or more than $200,000 in earned income for each of the past two years.