Holding Company
A holding company is an entity created to own shares or interests in other companies, assets, or subsidiaries.
Allocator relevance: Critical for mapping ownership structure, beneficial ownership, and control—especially in family office networks and SPV-heavy ecosystems.
Expanded Definition
Holding companies are used for governance control, tax planning, liability separation, and consolidation of ownership. In allocator intelligence, holding companies often sit between the principal and operating entities, and they can obscure ultimate beneficial ownership without careful mapping.
For diligence and targeting, holding company context helps identify who truly controls assets and who is authorized to decide and sign.
How It Works in Practice
Families and institutions use holding companies to group investments and manage subsidiaries. Holdings can be layered (holdco → sub-holdco → SPV → asset), which increases the importance of entity resolution and beneficial ownership tracing.
Decision Authority and Governance
Control can sit at the holding company level through boards, trustees, or principals. Governance mapping must distinguish between legal ownership, control rights, and economic benefit.
Common Misconceptions
- Holding company equals the operating company.
- Holding companies always imply secrecy.
- Ownership structure can be inferred from brand names alone.
Key Takeaways
- Holding companies are central to control mapping.
- Layered structures require careful entity resolution.
- Treat ownership data as high-stakes and evidence-weighted.