Legal Entity Hierarchy
Legal entity hierarchy is the structure of entities (trusts, holding companies, SPVs) that defines how ownership and control are organized.
Allocator relevance: Hierarchy is essential to avoid misattribution—especially for beneficial ownership, household mapping, and relationship graphs.
Expanded Definition
Family wealth and investment structures are rarely a single entity. You may have a principal, trusts, holding companies, and multiple SPVs used for deals. Without mapping hierarchy, data becomes misleading: the same household looks like many independent entities, and ownership signals are misread.
Decision Authority & Governance
Governance defines how hierarchy is represented, what evidence is required, and how conflicting structures are handled. Hierarchies must link to entity resolution to prevent duplication.
Common Misconceptions
- The operating company is the owner.
- One SPV equals one independent investor.
- Hierarchies are static (they change with planning).
Key Takeaways
- Hierarchy explains control and relationship reality.
- Necessary for accurate coverage and deduplication.
- Must be evidence-weighted.