Ownership Structure
Ownership structure describes how an entity is owned and controlled across individuals, trusts, holding companies, and other vehicles.
Allocator relevance: Central to beneficial ownership, decision authority, and compliance—misreading control structures leads to mis-targeting and diligence failures.
Expanded Definition
Ownership structures can include operating entities, holding companies, trusts, foundations, SPVs, and nominee arrangements. The key distinction is legal ownership vs economic benefit vs control rights. In allocator intelligence, ownership structure affects who can approve investments, who must sign, and how conflicts and compliance (KYC/AML) should be handled.
For family offices, ownership structures are often layered and intentionally private, so confidence and lineage matter.
How It Works in Practice
Analysts map entities, identify control points (board, trustee, principal), and link to UBO where possible. Entity resolution is required to avoid duplicating or mislinking connected structures.
Decision Authority and Governance
Governance sits in documents and roles: trustees, directors, principals, and authorized signers. A correct decision chain depends on understanding control points, not just titles.
Common Misconceptions
- Legal owner equals decision-maker.
- A single entity represents the full structure.
- Ownership mapping can be done without errors at scale.
Key Takeaways
- Ownership ≠ control ≠ economic benefit.
- Layered structures require careful mapping and confidence scoring.
- Ownership structure is high-stakes for compliance and outreach.