Custody: The Next Phase of Alternatives Growth
By Jason DeBono, Head of Alternatives Custody, Inspira Financial
Alternatives have moved from the margins of portfolios to the core. Advisers increasingly rely on private credit, private equity, real estate assets, and other non‑traditional investments to pursue diversification, manage risk, and differentiate practices. Yet, the custody infrastructure supporting these portfolios often tells a different story.
Much of today’s custody ecosystem was designed for liquid, public‑market workflows – daily pricing, simple settlement, and standardized reporting. When alternatives are layered onto that foundation, a structural mismatch emerges. Left unaddressed, custody becomes a hidden ceiling – one that quietly limits adviser growth, strains operations, and complicates the client experience. Portfolios evolve; operations don’t.
As alternatives become foundational, firms must modernize custody to align with private market realities, embracing lifecycle complexity rather than forcing alternatives into legacy frameworks.
When Complexity Becomes a Barrier, Not Just Friction
Alternatives introduce real operational complexity, which is not the issue. The problem is what happens when fragmented workflows and disconnected systems stack on top of one another: manual data entry, siloed reporting, inconsistent servicing. Over time, this can become a structural barrier.
The firms that scale alternatives successfully are not those that avoid complexity. They are the ones that integrate it – unifying data, workflows, and accountability across the full investment lifecycle.
The industry must move toward integrated, data‑driven ecosystems that reduce manual work, connect workflows, and turn complexity into a competitive advantage.
Custody Moves to the Forefront
For years, custody was viewed as operational support – necessary but largely invisible. That viewpoint is no longer accurate.
Custody increasingly determines what advisers can scale, what products they can offer, and how confidently they can grow. Experienced alternatives users run into efficiency limits as manual processes compound. Newer entrants face constraints from day one – not because of lack of interest but because the infrastructure is not built to support what they want to deliver. This creates a clear inflection point. Custody either enables growth or constrains it.
Forward‑looking firms treat custody as strategic infrastructure. They invest in platforms designed to unlock scale, not simply process transactions.
What Modern Alternative Custody Really Means
Client expectations are rising. Institutional‑quality portfolios are no longer reserved for institutional accounts. Advisers and clients expect the same level of transparency, service, and confidence regardless of asset class.
Modern alternatives custody reflects that shift, and here’s what it entails:
- Real‑time or near‑real‑time visibility into positions and activity;
- Full life-cycle support from subscription through ongoing reporting to liquidity events; and
- Clear service accountability across complex investment structures.
The question today is not whether these capabilities exist; it’s whether they can be delivered consistently at scale. Leading firms evaluate custody partners based on their ability to consistently provide integrated, scalable, and transparent alternatives infrastructure.
The Next Phase of Alternatives Growth
The next phase of alternatives growth will not be defined by access. It will be defined by infrastructure.
Firms that align custody capabilities with the realities of modern portfolio construction position themselves to scale with confidence – simplifying complexity for advisers and strengthening the client experience along the way. That is how alternatives move from opportunity to advantage.
As Head of Alternatives Custody at Inspira Financial, Jason DeBono leads strategic client relationships and helps expand the firm’s custody service solutions. Inspira provides health, wealth, retirement, and benefits solutions and holds more than $62 billion in assets under custody. DeBono’s team supports advisers, investment sponsors and individuals, helping them add alternative assets to their retirement portfolios.
The views and opinions expressed in the preceding article are those of the author and do not necessarily reflect the views of AltsWire.
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