How to protect your assets with a family holding company

  • The Rothschild family plans to take the investment bank, Rothschild & Co Private
  • The family holding company Concordia is in talks to finance the offer bringing the bank back to family control
  • The news illustrates the family holding companies’ ability to maintain control and plan succession in a family.

On February 6, 2023, Concordia, Rothschilds’ family holding company, announced that it was talking with investors and banks to finance its move to de-list the Rothschild & Co from the Paris Stock Exchange. Concordia has 38.9% of the investment bank shares and 47.5% of the voting rights. The holding company will offer £48 per share, giving the bank a valuation of £3.7 billion. Should the company complete the buyout, shareholders will receive an exceptional dividend of £8 per share.

Explaining the move, Concordia said the bank’s three arms of wealth and asset management, a global advisory, and merchant banking did not require public equity markets capital. Moreso, the long-term nature of the business under the three arms made it sensible for Rothschild &Co to be private. It allows the company to be assessed based on long-term and not short-term earnings.

Experts reviewing the decision note that it enables the family to make the most from their expanding equity business, and seeking funding now allows the group to take advantage of the current low-interest rates. Equally important, going private removes scrutiny from every day share prices, which can be detrimental to long-term goals.

Should the buyout go through, it will return the bank firmly under family control achieving David de Rothschild’s dream of preserving family ownership. His son Alexander Rothschild Jr is currently the Executive Chairman of Rothschild & Co. 200 years after the origins of the most famous banking family, a seventh generation of the family is at the helm, in no small part thanks to using of a family holding company.

What is a family holding company?

Holding companies are business entities whose sole purpose is to own and control other businesses. they usually exist as a corporation or LLC, though they could sometimes be a trust. Holding companies do not offer services, manufacture, sell goods, or perform other typical business operations. As such, a family holding company is an entity that a family uses to manage and control their investments in other companies, real estate, equities, and other assets. Used this way, a holding company becomes part of your estate planning.

How it works

Creating a family holding company gives you the advantage of having control of your assets while they are not under your name. You set up a corporation and give yourself the majority of the stock and divide the rest with the family members. Suppose you have 100 shares; you could take 30, your wife or husband takes 25, and you have three children with three shares each.

You then gift the created company your assets, so it becomes the new owner, but you still have control over the assets. In case you become liable, the creditors can at most get only your portion of 30% of the company, which is a minority stake, and as such, they are more willing to settle for a lesser amount and a payment structure convenient to you.

Benefits of a family holding company

While wealthy families and other high-net-worth individuals typically use a family holding company, it is beneficial for anyone, especially professionals whose practice may expose them to liabilities, as described here. The top benefits include the following;

Asset protection

A holding company provides an extra shield of protection against liability, both from claims against your business and personal ones. This protection keeps your personal and business assets intact, allowing for growth and future planning.

Tax benefits

You can enjoy greater tax efficiencies under a holding company. You only file one tax return for all your investments. Corporate tax is also lower compared to personal income tax, while there is no corporate tax on dividends among entities in the company. It allows you to pass on property to children without incurring expensive estate and inheritance taxes, among other benefits.


A family holding offers unique features that make it one of the best asset protection tools. You can keep your assets safe from personal and business liabilities. You also get control over your assets and investments even when they are not under your name. As some of the most wealthy families have shown, it is one of the best ways to transition your wealth over generations, and anyone can benefit from their advantages.

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