what is the difference between an accredited investor and a qualified purchaser 
accredited investors typically must meet income and net worth requirements to purchase financial investments such as securities or real estate companies such as financial institutions screen participants and must determine who is an accredited investor the qualified purchaser is a legal term not based on net worth or income but on investment holdings qualified purchasers must meet higher standards so that funds with a small group of private equity investors can buy and sell public assets the bottom linethe 3 c 7 exemption is part of the investment company act of 1940 and allows private funds to avoid some sec regulations which include sec registration and public disclosure investment in a 3c7 fund is limited to qualified purchasers 