Global Definitions Database

Qualified Borrower

A fund vehicle (often a holding company for an investment or a portfolio company) that is a borrower under a subscription-backed credit facility whose obligations are guaranteed by the fund vehicle itself; typically do not provide collateral.

Qualified Business Income

The net amount of qualified items of income, gain, deduction and loss from any qualified trade or business, including income from partnerships, S corporations, sole proprietorships, and certain trusts; generally this includes, but is not limited to, the deductible part of self-employment tax, self-employed health insurance, and deductions for contributions to qualified retirement plans (e.g. SEP, SIMPLE and qualified plan deductions).

Qualified Client or Investor

An investor that meets as least one of the following requirements:  (i) an individual with at least $1 million in assets under management with the advisor immediately after entering into an investment advisory contract with the advisor; (ii) an individual with a net worth of $2.1 million or more, either individually or jointly with a spouse, immediately before entering into an advisory contract, not including the value of their primary residence; (iii) an individual who matches the definition of a qualified purchaser at the time an advisory contract is enacted, including ownership of at least $5 million in investments; (iv) an individual with the position of executive officer, director, trustee, general partner, a person serving in a similar role, or the advisor; and/or (v) an employee of the advisor who is involved in the investment activities, and has been so for at least one year.

Qualified Foreign Pension Fund (QFPF) or Plan (QFPP)

Under Internal Revenue Code (IRC) Section 897(I)(2), any trust, corporation, or other organization or arrangement) that satisfies five separate requirements:  (i) created or organized under the law of a country other than the US, (ii) established (a) by such country (or one or more political subdivisions thereof) to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (including self-employed individuals) or persons designated by such employees, as a result of services rendered by such employees to their employers, or (b) by one or more employers to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (including self-employed individuals) or persons designated by such employees in consideration for services rendered by such employees to such employers, (iii) does not have a single participant or beneficiary with a right to more than five percent of its assets or income, (iv) subject to government regulation and with respect to which annual information about its beneficiaries is provided, or is otherwise available, to the relevant tax authorities in the country in which it is established or operates, and (v) with respect to which, under the laws of the country in which it is established or operates (a) contributions to such eligible fund that would otherwise be subject to tax under such laws are deductible or excluded from the gross income of such entity or arrangement or taxed at a reduced rate, or (b) taxation of any investment income of such eligible fund is deferred or such income is excluded from gross income of such entity or arrangement or is taxed at a reduced rate.

Qualified Organization (QO)

Includes qualified trusts under Internal Revenue Code (IRC) 401, educational organizations described in IRC 170(b)(1)(A)(ii) and their supporting organizations described in IRC 509(a)(3), and organizations described in IRC 501(c)(25).  

Qualified Plan

Any employee benefit plan that is qualified by the Internal Revenue Code (IRC) as a tax-exempt plan; among other requirements, the plan's assets must be placed in trust for the sole benefit of the employees covered by the plan.

Qualified Purchaser

Under Section 2(a)(51) of the Investment Company Act:   (i) any natural person (including any person who holds a joint, community property, or other similar shared ownership interest in an issuer that is excepted under section 3(c)(7) with that person's qualified purchaser spouse) who owns not less than $5,000,000 in investments, as defined by the Securities and Exchange Commission (SEC); (ii) any company that owns not less than $5,000,000 in investments and that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including former spouses), or direct lineal descendants by birth or adoption, spouses of such persons, the estates of such persons, or foundations, charitable organizations, or trusts established by or for the benefit of such persons; (iii) any trust that is not covered by clause (ii) and that was not formed for the specific purpose of acquiring the securities offered, as to which the trustee or other person authorized to make decisions with respect to the trust, and each settlor or other person who has contributed assets to the trust, is a person described in clause (i), (ii), or (iv); or (iv) any person, acting for its own account or the accounts of other qualified purchasers, who in the aggregate owns and invests on a discretionary basis, not less than $25,000,000 in investments.

Query

A request for data or information from a database, database table or combination of tables.