Qualified Investor

Definition Maltese Law (quoted directly from MFSA)

„Qualified Investor“

An investor may only be classified as a “Qualified Investor” if he/she attests that he/she meets one or more of the following criteria:

  1. a body corporate which has net assets in excess of EUR 750,000 or which is part of a group which has net assets in excess of EUR 750,000;
  2. an unincorporated body of persons or association which has net assets in excess of EUR 750,000;
  3. a trust where the net value of the trust’s assets is in excess of EUR 750,000;
  4. a person who has reasonable experience in the acquisition and/or disposal of:
    1. funds of a similar nature or risk profile;
    2. property of the same kind as the property, or a substantial part of the property, to which the PIF in question relates;
  5. an individual whose net worth or joint net worth with that person’s spouse, exceeds EUR 750,000;
  6. senior employees or Directors of service providers to the PIF;
  7. relations or close friends of the promoters limited to a total of 10 persons per PIF;
  8. entities with (or which are part of a group with) EUR 3.75 million or more under discretionary management, investing on its own account;
  9. the investor qualifies as a PIF promoted to Qualified or Extraordinary Investors;
  10. an entity (body corporate or partnership) wholly owned by persons or entities satisfying any of the criteria listed above which is used as an investment vehicle by such persons or entities.

In the case of joint holders, all holders should individually satisfy the definition of “Qualified Investor.”

The minimum initial investment amounts to EUR 75,000 or other currency equivalent. The total amount invested may not fall below this threshold (or equivalent) unless this is the result of a fall in the net asset value. Provided that the minimum threshold is satisfied, additional investments – of any size – may be made. The minimum investment threshold applies to each individual “Qualified Investor”. In the case of joint holders, the minimum investment limit remains EUR 75,000 or equivalent in another currency.

In the case of an umbrella fund comprising of sub-funds each of which is set up as a Professional Investor Fund, the EUR 75,000 threshold may be applicable on a per scheme basis rather than on a per sub-fund basis. Thus effectively a “Qualified Investor” may hold less than EUR 75,000 in a sub-fund provided that his total holding in the scheme amounts to at least EUR 75,000.

Prior to accepting any investment, the PIF must be in receipt of a completed “Qualified Investor Declaration Form” in which the investor confirms that he/she has read and understood the mandatory risk warnings and describes why he/she is a “Qualified Investor”. In the case where the Qualified Investor is a company or partnership, such declaration is required from the Directors/ Partners, whilst in the case of a Trust, from the Trustee. A copy of this Declaration Form is being reproduced in the Brochure “A Guide to the Establishment of Professional Investor Funds” at Appendix III (page 18/19 Qualified Investor Declaration Form).

PIFs promoted to Qualified Investors are not subject to any restrictions on their investment or borrowing powers (including leverage) other than those, which may be specified in their Offering Document.