HoldCo
Business & Finance abbreviation · Finance
| Stands for | Holding company |
|---|---|
| Categories | Business & Finance |
HoldCo stands for Holding company, a finance abbreviation.
Parent company whose main purpose is to own shares in other companies, its subsidiaries, rather than to run operations itself. In leveraged finance, debt issued at the HoldCo level ranks behind debt of the operating companies because of structural subordination.
Example: The PIK notes sit at HoldCo, so OpCo lenders are repaid first if the business fails.
Usage notes
Written HoldCo, Holdco or holdco. Many conglomerates and banks are organized as holding companies, Berkshire Hathaway and Alphabet among them. HoldCo/OpCo structures are also used to separate property from operations, as in some retail and healthcare deals.
Related abbreviations
More finance abbreviations
- FCFF – Free cash flow to the firm
- FICC – Fixed income, currencies and commodities
- FP&A – Financial planning and analysis
- FV – Future value
- GP – General partner
- HNWI – High-net-worth individual
- IB – Investment banking
- IBD – Investment banking division
- ICR – Interest coverage ratio
- IOI – Indication of interest
- IRR – Internal rate of return
- LBO – Leveraged buyout