Rung 3 — Qualified Purchaser Threshold
mechanism
Having $5 million in investments quietly unlocks a tier of private funds and banking most people never see.
Who they are
The 'Qualified Purchaser' threshold under the Investment Company Act of 1940, another rung on the engine's caste ladder.
What they do
It marks the level (a person with $5M+ in investments, or $25M for institutions) that unlocks exclusive private funds and private banking.
How it works
It grants access to certain private funds that have no legal cap on investors, though a separate public-reporting rule effectively caps them just under 2,000 holders.
Why it matters
The engine uses it to map how financial access is tiered by wealth, with each rung opening doors closed to those below.
The engine's record — word for word
[Report #114 — Caste Ladder] [web-checked Jun 18 2026] Qualified Purchaser (Investment Company Act 1940, 15 USC 80a-2(a)(51)): natural person with >=$5M in investments (institutions $25M). Unlocks 3(c)(7) funds + entry private banking. MECHANISM NUANCE: 3(c)(7) has NO statutory investor cap; the ~2,000 ceiling comes from Securities Exchange Act 12(g) (public-reporting trigger at 2,000 holders of record), so 3(c)(7) funds practically cap just under 2,000.
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