Holding Company
A holding company is an entity used to own and manage operating businesses and investment assets under one corporate structure.
Definition
Definition A holding company is a corporate entity created to own controlling stakes in operating businesses, investment assets, or subsidiary entities. In family office ecosystems, holding companies are common because they centralize ownership, simplify governance, and can separate risk across different activities. Context Many families built wealth through an operating business. Over time, that ownership may be held through a holding company that also becomes the container for additional investments. This can create confusion in datasets: a holding company might appear as if it were a fund, an operating company, or a standalone investment firm. Correct interpretation requires understanding that it is often a family-controlled vehicle. Why It Matters Holding companies often sit close to ultimate control and influence. They can also explain concentrated exposure: if most wealth is held in one operating asset, the family’s investable behavior will reflect that. For database quality, holding company awareness improves entity resolution and reduces duplicate or mislabeled records. Key Takeaways Common tool for organizing family business ownership Often sits near decision authority and control Can be misclassified without structure context Impacts how you interpret wealth concentration