A major feature on the co-owners of CREDITAS

Billionaire Pavel Hubáček has handed over most of his business to his children, creating one of the largest family-owned companies in the country. Why did he step away from CREDITAS Group, where are his sons Tomáš and David steering the group, and what role does Alfons Mucha play in the story?

A girl in a white blouse with a floral wreath lifts her chin over her right shoulder, gazing toward where the scene directs her: into the future. At this moment, she is looking toward a similarly composed man — one whose future, however, has already been decided.

Symbolically, this takes place in the very building that the author of the poetic 1938 oil painting had constructed as his family residence. Today, the imposing Mucha Villa — located in the prestigious Prague district of Letná and neighboring the grand properties of Marek Dospiva, Daniel Křetínský and Jiří Šmejc — belongs to another member of the club of the wealthiest Czechs: financier Pavel Hubáček.

It is in this historically valuable three-storey villa, which Hubáček transformed into a lavish residence after a decade-long renovation, that the founder of the CREDITAS Group most often meets with his sons Tomáš and David — as he does today. Last year he handed over to them the main business asset he had been building for nearly three decades, turning it into one of the largest family-owned companies in the Czech Republic and the highest-ranking newcomer in this year’s wealth rankings.

“I wanted to do it at a time when the group is stable but still has strong growth ahead,” says the soon-to-be 57-year-old businessman inside the polished interior of the thousands-of-square-meters property. The environment is so pristine and scented with the newness of soft carpets and polished wood that even the owner of the house feels comfortable walking around in Mickey Mouse socks.

“I could easily have stayed involved with the CREDITAS Group for another fifteen years. But if I handed it over to the boys when they were fifty and they told me they no longer wanted to do it — what then? It’s fair that they carry the responsibility at a time when they can genuinely influence the group and when they are ready for it,” he explains, describing why he withdrew completely from the multi-billion-euro investment vehicle whose portfolio includes Banka CREDITAS, the energy company UCED and dozens of real estate projects.

Pavel Hubáček no longer holds any ownership stake in the group. Together with his sons — who each hold a 20 percent share of CREDITAS along with the founder’s two younger daughters and his wife — he agreed on the rules and on the direction the business should take: a long-term vision built on conservatism and continuing to rely on three pillars — finance, energy and real estate.

These are sectors whose combination the family considers a sensible diversification. There is no strict map of where across Europe — currently six countries — the Hubáčeks intend to operate a bank or a power plant. But whenever a meaningful opportunity arises, they are eager to seize it.

That is despite the fact that Malta — where they recently acquired the country’s third-largest bank, MeDirect, which also has a branch in Belgium — already offers plenty of work and potential. The Czech branch of the bank, which targets domestic entrepreneurs, still has significant room to grow as well. And in real estate, they have accumulated residential projects stretching a decade into the future in cities such as Prague, Brno, Olomouc and Plzeň.

“The autonomy is substantial; otherwise the move wouldn’t make sense. The final decisions are now theirs,” says Pavel Hubáček, who is careful not to overwhelm his sons with unsolicited advice. Whenever they come to him and ask for his opinion, however, he is happy to share his perspective.

“They’d be foolish not to make use of that experience,” he laughs, while the brothers nod in agreement.

“My brother and I have the space to make decisions, and that’s the most important thing,” says the 32-year-old Tomáš. “I don’t want people to see me only as Pavel Hubáček’s son. I want it to be clear that I understand our business and that I respect the people who built the company and continue to drive it,” he adds, aware that authority is not inherited — it must be earned.

While Tomáš is currently responsible for the banking and financial branch of the group, his brother David, five years older, oversees real estate and development.

“I carry responsibility for results, so I also need to have the authority,” David adds. “In real estate the market tests you immediately. Inside the company it’s the same. If people see that you make competent decisions, they accept you. If not, no ownership stake will help.”

Continuity — a word that surfaces repeatedly during several hours of conversation with the Hubáčeks. In finance and real estate its importance is particularly pronounced.

For bank clients, trust — built on stability, capital strength, risk management and quality of services — is essential. For real estate partners, it is the assurance that projects continue smoothly, commitments are honored and decision-making processes are not stalled. If these conditions are met, a change in ownership becomes little more than background information.

“In fact, generational succession is a signal that we want to be here for the long term,” Tomáš says.

Ensuring continuity will not depend only on the brothers’ approach to work and thinking — which closely resembles their father’s — but also on a stable and experienced management team they can rely on. Key figures such as Jiří Hrouda (CEO of the CREDITAS Group), Vladimír Hořejší (Chairman of the Board of Banka CREDITAS), Tomáš Novák (CEO of UCED) and Jiří Vajner (CEO of CREDITAS Real Estate) have been with the company for years and are expected to remain so.

“The arrival of a new generation does not mean a revolution but rather an evolution,” Pavel Hubáček notes. “A greater emphasis on modernization, technology and faster response to opportunities — but without breaking the character of the group.”

“I have no ambition to flip the style and pretend everything must be done differently simply because I belong to a younger generation,” Tomáš adds.

With a touch of exaggeration, one might say that even if either brother wanted to change the style, it would not come naturally. A brief moment of observation is enough to notice how much they resemble their father — and not only visually with their dark elegant jackets and prescription glasses.

All three appear calm, somewhat introverted and sparing with words. At the same time, they think carefully about what and how they say things. Naturally, they sometimes disagree — which they all agree is healthy — but they manage to reach rational conclusions.

Among the brothers especially, neither emotions nor the age difference play much of a role in discussions. Any disagreement is quickly resolved.

“In the end, I think the data and the numbers always decide,” Pavel says, breaking a moment of thoughtful silence.

This dynamic is perfectly illustrated by a debate about an installation by artist Theodor Pištěk, which the founder — also an art lover — has considered placing in the group’s new headquarters currently planned for Prague’s Karlín district.

When David looks at a photograph of the piece, his first thought is where exactly it would be placed — and whether it would fit at all. The younger Tomáš, meanwhile, refrains from commenting because he does not know the purchase price.

Amusing — and telling.

The saying goes that a father’s wish becomes the son’s thought. In this particular case, it was indeed true. Pavel Hubáček hoped that the project he had built over decades would eventually be taken over by his sons. He never forced them into it. He wanted them to choose this professional path themselves.

That said, he certainly helped the process along.

For example, when Tomáš turned eighteen, he gave him an unusual gift: the chance to spend a working day with him in Prague, shadowing him during several meetings.

Both remember one meeting in particular — with the then-head of energy giant E.ON — where Pavel negotiated the purchase of the second half of a joint company operating electricity and gas distribution networks.

“I remember my father saying it would be a tough negotiation. And it was,” Tomáš recalls.

“We were arguing about the price,” his father adds. “The expectations of the buyer and seller were different. But in the end it worked out, and for a long time it became our core business.”

Perhaps it was at that moment that the teenage Tomáš began to form a deeper relationship with the family business — which suddenly became more than simply “dad’s work.”

Yet recognition of his father’s achievements and eventually taking over the company were still a long way off.

“I have to admit it took me a while before the decision matured,” Tomáš reflects. “It wasn’t that I didn’t want to do it. But it’s a new role and a huge responsibility — thousands of employees and now hundreds of thousands of clients. At some point it shifts from being a family story to becoming your own work and reputation.”

Even the long-awaited handover itself, however, was not a simple matter. A year of intensive family discussions was followed by another year devoted to carefully fine-tuning all the details so that the highly complex shareholder agreement would cover every possible scenario and ensure that a potential dispute could not destabilize the company.

As time passes beneath the portrait of Alfons Mucha, the Hubáček men gradually grow more open. Their thoughts expand beyond carefully measured statements and the stories begin to multiply. “I have to admit it took me a while before the decision matured.”

A patient listener might thus also hear the story of how the then still relatively inexperienced Tomáš reacted during what he calls the “company rotation” — a period during his studies in finance at the University of Economics in Prague when he worked through various positions to understand how the business functioned from the inside.

Working in the financial markets division, he once received a phone call from a client requesting the exchange of one million euros. His reaction: “Wow! That much money?” A humorous episode from more than a decade ago that Pavel remembers vividly.

David Hubáček, by contrast, chose his own path early on. He wanted to prove to himself that he could succeed independently. In their native region of Haná he built houses and residential projects and also ventured into renewable energy.

Occasionally he contributed his experience to selected projects within the group and the family. As CREDITAS’s involvement in real estate grew, it became natural for him to join the business fully last year.“The transfer of ownership merely confirmed the reality that each of us leads our own division and is responsible for it.”

Clearly defined roles and divided responsibilities also mean that the brothers — despite being the main co-owners — do not meet that often in day-to-day work. They come together when circumstances require it, most often when development financing is being discussed. Roughly once every six months they go on a working retreat, where — often in the presence of their father — they discuss strategic matters.

Pavel Hubáček himself no longer spends his days walking through the offices of the CREDITAS Group. When he needs to work from Prague, he spends most of his time in Mucha Villa, whose transformation and current impressive appearance are largely the result of David’s efforts. From there, the most experienced member of the trio manages new projects and oversees assets worth around ten billion crowns that are not part of the group.

Among them is the Grandhotel Pupp in Karlovy Vary, which he kept in his private ownership and where he enjoys gradually renovating the iconic five-star spa hotel. He is also involved in other business ventures he prefers not to discuss publicly for now. “I’m certainly not bored,” he says, adding that his professional life has not changed much since handing over the family business.

“The only thing I miss is that we no longer have our traditional evening calls with the bank’s chairman Vladimír Hořejší, during which we brainstormed and discussed everything from business to social issues — and often had a lot of fun doing it.”

Within the group itself, however, one notable change — clearly reflecting the brothers’ approach — has already taken place. It concerns rental housing and, specifically, a form of cooperation between the two divisions in which the real estate company develops a property and then sells it to the group’s bank. This synergistic model — made possible by recent legislative changes — was originally proposed by Tomáš and subsequently implemented by David.

At the moment the group already holds hundreds of apartments in this format. Looking toward the future — where the Hubáčeks’ gaze often turns in the study of their family villa — the number should increase significantly, as they see strong potential in this segment. And not only there.

All the steps they are taking are intended to ensure that they not only build upon their father’s legacy but one day surpass it. “Personally, I think the boys have already surpassed me,” Pavel Hubáček says lightly.

“For example, when I was running Banka CREDITAS we were making just over one billion crowns. Last year they generated an extraordinary profit of more than four billion. So I must admit I’m very satisfied.”A smile spreads across his face. After a brief pause he quietly adds: “Well… a family business.”

The article was published in Forbes Czech Republic magazine and on Forbes.cz. Written by Robert Sattler. Photos: Anna Kovačič.