Beyond Build vs Buy: Why Alternative Investment Firms Now Talk Infrastructure, Not Just Platforms

The alternative investments technology landscape is experiencing a fundamental shift. Where firms once debated whether to build something themselves, or buy point solutions based on perceived gaps, the conversation is evolving into something far more strategic: the need for infrastructure and operating systems that can adapt, scale, and evolve with an increasingly important growth opportunity.

Last year, we wrote about the traditional build versus buy debate in this blog post, exploring how firms weighed the time, cost, and expertise advantages of buying proven technology against the allure of bespoke in-house solutions. While we highlighted the practical benefits of working with established vendors – faster deployment, regulatory compliance and ongoing innovation. The reality today is more nuanced. The question isn’t just about choosing between building custom solutions or purchasing existing technology, it’s about recognising that the underlying infrastructure has become a commodity, and the real value lies in what firms build on top of it.

From Platform Thinking to Infrastructure Reality

The traditional SaaS model served its purpose when alternative investments were fragmented and firms needed discrete solutions for specific problems. But as workflow requirements across the industry converge, we’re seeing the landscape align around three core segments: asset managers, distributors, and service providers. But, more importantly, the key differences now exist at the individual firm level rather than between firm types – shaped by their current level of technology maturity, legacy system limitations, and operational scale.

This convergence means technology can be multi-purposed across different use cases, making the underlying infrastructure increasingly standardised, while allowing for sophisticated customisation at the proposition level.

The 2025 Market Reality: Five Trends Driving Infrastructure Adoption

Current market themes reveal why firms are moving beyond traditional platform thinking:

“Pipes and Plumbing” on Strategic Agendas: Fund administrators, distribution networks, and service providers are prioritising the digitisation of alternative fund propositions at a strategic level. There’s growing recognition that a strong, modern infrastructure isn’t just a nice-to-have, it’s a prerequisite for meaningful growth.

Owning the Client Experience: With multiple product relationships and service providers, firms are increasingly looking to own and standardise their proposition in a scalable, yet personalised way. This requires infrastructure that can unify disparate touchpoints under a single, coherent experience.

Embedded Alternative Investment APIs: Brokerage platforms, D2C players, and firms servicing traditional asset classes are leveraging technology to integrate alternative investment propositions. This requires infrastructure designed for seamless integration rather than standalone deployment.

Technology “Freeze and Wraps”: Legacy firms are creatively “uplifting” outdated systems to reduce costs and improve resilience. Modern digital infrastructure can wrap around existing systems, enabling tech-driven business models without wholesale replacement.

GP Tech Stack Refinement: Alternative fund managers are reducing reliance on service providers for workflows and reporting while prioritising their own operational needs and desired client experience, particularly when accessing wealth channels. To support this shift, they require infrastructure that enables greater independence and control.  

The Operating System Advantage: Built for Evolution

The key insight driving this infrastructure shift is that alternative investments never stand still. Regulations evolve, new asset classes and fund structures emerge, cross-border requirements change, and investor expectations continuously rise. Firms that build or buy point solutions find themselves constantly reinventing the wheel.

An operating system approach changes this dynamic entirely. Instead of discrete platforms that become obsolete, firms get foundational infrastructure that can accommodate:

• Tokenisation capabilities as digital assets gain regulatory clarity
• Secondary market functionality as liquidity solutions mature
• AI and data intelligence as information becomes increasingly valuable
• Cross-jurisdictional structuring as global opportunities expand
• Embedded compliance workflows as regulatory requirements evolve

Infrastructure as the Great Equaliser

This digital infrastructure evolution creates opportunities regardless of where firms sit in their technology journey:

• Starting Out: New entrants can deploy enterprise-grade capabilities from day one, focusing their limited resources on differentiation rather than foundational development.
• Existing Manual Processes: Firms can digitise workflows systematically, replacing manual touchpoints with automated infrastructure while maintaining operational continuity.
• Legacy Systems: Established players can wrap modern interfaces around existing technology, improving user experience and unlocking new capabilities without wholesale system replacement.

The underlying technology becomes a commodity; reliable, standardised, and continuously being enhanced, allowing firms to focus entirely on their unique value proposition.

The Strategic Imperative: Focus on What Matters

The emergence of infrastructure solutions represents more than technological evolution, it’s a strategic realignment that allows firms to focus on their core competencies rather than technology development and maintenance.

When underlying infrastructure becomes reliable and commodity-like, firms can dedicate their resources to:

• Developing unique investment strategies
• Building deeper client relationships
• Creating differentiated propositions
• Expanding into new markets and asset classes
• Enhancing client experience and service delivery

Looking Forward: Infrastructure as a Competitive Advantage

The firms that recognise this shift early will build sustainable competitive advantages. They’ll operate on infrastructure designed for adaptability, benefit from early-mover advantage without the burden of in-house development, and focus their energy on what truly differentiates them in the market.

More importantly, they’ll be well positioned to capitalise on emerging opportunities whether that’s new distribution channels, innovative structuring approaches, or entirely new investment strategies – without being constrained by technology limitations.

The question is no longer whether to build or buy. It’s how to embrace infrastructure that evolves with the industry or face remaining locked into solutions that require constant reinvention.