Legal Entity Hierarchy Mapping
Documenting the structure of related entities including parent companies, subsidiaries, holding companies, SPVs, and trusts.
Hierarchy reveals true decision authority (parent controls subsidiaries), consolidated AUM (across entity family), and introduction pathways (relationships span hierarchy).
Expanded Definition
Hierarchy mapping identifies: parent-subsidiary relationships, sister company connections, cross-entity ownership, trust beneficiaries and trustees, and SPV-to-investor links. Mapping sources include: formation documents, ownership registries, transaction records (acquisitions, spinoffs), regulatory filings (consolidated financials), and relationship patterns (shared directors, addresses, counsel).
Hierarchy complexity varies: simple (single family office entity), moderate (FO + investment SPVs), complex (multi-tier holding structures + trusts + offshore entities). Complex hierarchies often signal: tax optimization, privacy prioritization, multi-jurisdictional operations, or sophisticated wealth planning.
Signals & Evidence
Hierarchy mapping indicators:
- Ownership filings: State incorporation docs, beneficial ownership registries showing parent-subsidiary links
- Financial consolidation: Consolidated financial statements indicating controlled entities
- Transaction history: Acquisitions, spinoffs, entity formations revealing relationship creation
- Shared infrastructure: Common addresses, registered agents, legal counsel, auditors
- Personnel overlap: Shared officers, directors, trustees across entities
- SPV patterns: Multiple SPVs with similar naming (Summit SPV 1, Summit SPV 2) suggesting common parent
Decision Framework
- Mapping depth: High-value prospects warrant full hierarchy mapping; routine research accepts surface-level structure
- Authority routing: Map hierarchy to identify ultimate decision authority (parent entity, trust, principal)
- Relationship leverage: Use hierarchy to identify introduction pathways (relationships at parent may open subsidiary access)
Common Misconceptions
"Entity names reveal hierarchy" → Names can mislead; SPVs may have independent-sounding names despite parent control. "Hierarchy is static" → Frequent changes through acquisitions, restructurings, tax planning; re-map periodically. "Simple structures = unsophisticated" → Some sophisticated families maintain simple structures deliberately; complexity ≠ capability.
Key Takeaways
- Legal entity hierarchy maps parent-subsidiary relationships, ownership structures, and control patterns across related entities
- Hierarchy reveals true decision authority, consolidated AUM, and introduction pathways
- Use formation docs, ownership registries, shared infrastructure, and transaction history to build hierarchy maps