“Money is a sensitive subject, and trust is earned only once,” says Glen Steward. The South African entrepreneur, who may be on his way to becoming a globally recognized management guru, given his successful track record in the investment and alternative lending sectors, is a voice to be listened to. In this exclusive interview with BIZWEEK, Glen Steward shares how 20 years ago, he moved the company initially established in the Isle of Man to Mauritius, citing its strategic location and cost-effectiveness. Always seeking new opportunities, Stewards recently ventured into the private credit market in the USA. Banks, today, have strict mandates and licensing requirements that limit their ability to lend money. This has signifi- cantly opened up the alternative lending sector, the CEO explains.

 

You started your business in South Africa, where you are from, before moving to Mauritius, and recently, to the USA. Can you tell us more about this journey?

My move from South Africa to Mauritius, and subsequently to the USA, was driven by a combination of seeking new business opportunities and fulfilling fam- ily aspirations. South Africa provided a solid founda- tion for my early career, but I saw immense potential in Mauritius, especially in terms of emerging markets and the growing financial sector. The island’s strategic location, coupled with its dynamic business environ- ment, offered numerous opportunities for growth and expansion.

Transitioning to the USA was a natural progression, driven by the need to tap into the world’s largest and most diverse economy. The USA presented opportuni- ties to engage with innovative industries, access a broad- er network of investors, and expand Stewards Invest- ment Capital on a global scale. Each move was inspired by a vision to leverage new markets, embrace diverse experiences, and drive the company’s mission forward. On a personal note, the USA offered great opportuni- ties in terms of tertiary education for my four children, and as a family, we are exposed to a diverse and dynamic cultural environment which we are all enjoying.

 

What were the key challenges and opportunities you encountered during this transition?

As with every move and transition, there have been a few challenges, but the key lies in how we deal with them and how we turn them into exciting opportunities. Some of the challenges which come to my mind when you move countries are the cultural adaptation, regu- latory landscape and market dynamics. In terms of cultural adaptation, Mauritius has scored very high in terms of ease of doing business and ease of settling down for my family too. The USA has been a little dif- ferent, as the business environment is bigger by a thou- sand times. So it took a little longer.

The regulatory landscape also required deep learning before setting foot. Being well versed with the distinct regulatory frameworks in Mauritius and the USA required a deep understanding of local laws and compli- ance requirements. Ensuring we met all legal standards while maintaining operational efficiency was fundamental.

It is important to recognise that each market has its own economic conditions and market dynamics. We had to continuously adapt our strategies to align with the local economic environment and market demands, which required agility and thorough market research.

The opportunities, on the other hand, have been enormous in terms of expansion and growth, building a global network, and innovation.

Each move presented a unique opportunity for expan- sion. Mauritius offered a gateway to African and Asian markets, where we have built relationships with major pension funds, institutional investors, and HNWIs, while the USA provided access to the largest economy in the world. These moves allowed us to diversify our portfolio and tap into new growth opportunities in new sectors which we had not thought of before. Establishing our presence in multiple countries helped us build a robust global network. This network has been key for building meaningful partnerships, attracting in- vestments, and sharing knowledge across different re- gions.

The challenges we faced also spurred something great, which is innovation. In and from Mauritius, we developed unique financial solutions tailored for global in- vestors. In the USA, we invested in US-listed FAVO Capital, a bold step toward capitalizing on the burgeon- ing private credit market at the right time. We leveraged advanced technologies and financial instruments to stay ahead of the competition.

Just as an example, our award-winning APEX Structured Liquidity Solution is a fixed income investment that has a diversified exposure to the private credit market via Stewards’ strategic investment in US-listed FAVO Capital, a direct financing business in the United States.

FAVO Capital’s approach to credit analysis for small and mid-sized businesses is a game-changer as we can be agile enough to give a reply to a customer on his loan application within 2 hours! Traditional methods relying on audited financial and management accounts are often cumbersome and time-consuming. FAVO Capital employs cutting-edge technology to stream-line this process, ensuring swift and accurate assessments of credit profiles and capitalising on AI without compromising risk assessments.

For small business lending, where access to audited financials is often limited, this technology-driven approach sets us apart. By tapping directly into clients’ live bank accounts, we gain real-time insights into cash flows, enabling us to assess their ability to service loans within two hours. This rapid turnaround time not only expedites decision-making, but also enhances accuracy. I would say these various challenges and opportunities have strengthened Stewards Investment Capital, allowing us to grow and innovate in ways we hadn’t imagined. The journey has been challenging, but the opportunities far outweigh the obstacles, driving our success forward. I would like to conclude by saying that no matter where you go in the world, even if it’s a paradise country, an adjustment process is always necessary. Both family and business need to go through a learning curve. It’s not al- ways easy, and it takes time to step out of your comfort zone and get into a new rhythm to be a part of a new system. So, there’s always an adjustment process, even in the best paradise countries.

 

 

How did Mauritius contribute to your business growth and strategy?

Given the fact that I am based in America, there is often this comparison of Mauritius to the Cayman Islands. Many Americans have chosen the Cayman Islands for their offshore structures, as it offers a strategic financial center. Each region has its own challenges and benefits, and being positioned in the Cayman Islands has proven beneficial for many American companies.

Similarly, Mauritius serves as the Cayman Islands of the Southern Hemisphere. This comparison has frequent- ly come up in my discussions with American partners and businesses. Mauritius is known for its credible reputation, highly skilled and educated workforce, and cost-effectiveness compared to other offshore financial

centers. Stewards International was initially set up in the Isle of Man, but I moved the operations to Mauritius 20 years ago due to its strategic location, proximity, and cost-effectiveness. Mauritius offers a competitively priced, well-educated workforce, and is well-positioned geographically.

Moreover, while it might seem minor, the fact that Eng- lish is the official language in Mauritius is significant for business. Clear communication is fundamental, whether you’re interacting with staff or conducting deals. Despite Mauritius having a strong French influence, its use of English has been very business-friendly, and ex- tremely helpful.

Another point I would like to touch on is scale, which can be both beneficial and negative. Operating in the US, a massive economy, means that capturing even 0.001% of a sector can make your business ten times bigger than anywhere else in the world. However, from an operational and management perspective, Mauritius’s smaller size is a definite advantage. We can get things done efficiently because we are not just a number; relationships are key, and have proven to be productive and very efficient.

 

What specific advantages did you find in operating from Mauritius?

Oh, there are several! I always list these six key advantages no matter who I’m talking to:

Strategic Location: Mauritius is perfectly situated at the crossroads of Asia and Africa, making it a fantastic hub for accessing these emerging markets. This location allows us to easily connect with clients and partners across multiple continents.

Business-Friendly Environment: The island offers a very favourable business environment with strong regu- latory frameworks, political stability, and a reliable legal system. This creates a secure and predictable business climate, which is crucial for long-term planning and investment.

Tax Incentives: Mauritius has a great tax regime, includ- ing double taxation avoidance agreements with many countries. This reduces our tax burden and makes Mau- ritius very attractive to international investors.

Skilled Workforce: Mauritius has a highly educated and skilled workforce, especially in the financial services sector. Access to this talent pool has been essential for us, allowing us to deliver top-notch services and inno- vative financial solutions globally.

Strong Financial Services Sector: The well-established financial services sector here offers everything from banking to fund management and insurance. This ro- bust financial infrastructure supports our operations and facilitates growth.

Quality of Life: Mauritius offers a high quality of life with excellent healthcare, education, and recreational facilities. This makes it an attractive place for investors wanting a second home, and for our staff too, where we can retain top talent.

Operating from Mauritius has given us a strategic edge, allowing us to leverage its geographic, economic, and human capital strengths to drive our global growth and success.

 

Can you share insights on the differences and similarities of operating in Mauritius and the USA?

I’ve touched on some of the benefits of operating in both jurisdictions, and one aspect we need to consid- er is scale considerations. In America, the focus is on the growth of business, whereas in Mauritius, it is on the management of business. Given the size and population of Mauritius, growth opportunities primarily lie outside the country. I view Mauritius as a holding company where everything is managed and run. We are already seeing a growing number of international oper- ations and structures being set up from here, leveraging Mauritius’s strategic position and business-friendly environment.

Moreover, being a small island, relationships are key in Mauritius. It’s easier to be introduced and engaged in a network here because it’s a smaller, more close-knit community. However, the sheer scale and growth po- tential of your business depend on operating in larger economies like the USA.

In terms of similarities, both Mauritius and the USA place significant importance on compliance and main- taining a reputation as regulated environments. Neither country wants to be on the grey list. The US is highly stringent on doing things correctly and adhering to rules, and Mauritius also takes compliance and adherence to regulatory conditions very seriously. As a finan- cial institution, we operate in these highly compliant and regulated regions to ensure we meet all necessary standards.

Furthermore, both countries offer robust legal frameworks that support and regulate business operations ef- fectively. This ensures a stable and secure environment for businesses to thrive. In Mauritius, the legal system is influenced by both French civil law and British common law, providing a unique blend of legal traditions that is business-friendly. The USA has a well-established common law system that offers predictability and con- sistency in business operations. This robust legal framework in both countries is important for us, as it rein- forces the integrity and compliance of our operations.

 

What trends and opportunities do you see in the global private credit market?

Lending and borrowing money are among the oldest businesses. These activities will never die, regardless of the economic climate, whether it’s growth or recession. They are fundamental to how society operates.

With that being said, as the world becomes more reg- ulated and licensing requirements become more strin- gent, more and more opportunities are created in the private credit market. Banks, today, have strict mandates and licensing requirements that limit their ability to lend money. This has significantly opened up the alternative lending sector.

In other words, the private credit market will always grow because there will always be a need for faster access to money than what traditional banks can offer. This sector is expanding, and it’s almost a defensive sec- tor. Whether people are borrowing money to expand their businesses during an economic boom or to save their businesses during a recession, there is always de- mand.

Due to increasing difficulties for banks to lend, banks themselves are buying and setting up companies to participate in alternative lending. A recent report from Morgan Stanley highlighted the size of the private cred- it market at the start of 2024, which stood at approximately $1.5 trillion, compared to around $1 trillion in 2020, and it is estimated to grow to $2.8 trillion by 2028.

 

How does Stewards Investment Capital navigate this vast market?

Seeing the exponential growth over the years and analyzing its trends, we have strategically invested in the publicly listed company FAVO Capital, which is a rap- idly growing direct funding company that offers fund- ing solutions to emerging small and medium-sized businesses. We have offices in New York, Florida, and the Dominican Republic, and we are well positioned to closely monitor and actively participate in the growth of this market. This involvement demonstrates that we not only tailor investment solutions linked to this mar- ket, but also heavily invest in and firmly believe in the growth of the private credit sector.

Through FAVO Capital, we focus on mastering the fundamentals. Our systems and processes are executed with thoroughness and diligence. Our primary focus is on the underwriting department, where we operate at a level that meets banking standards, even though we do not hold a banking license. We have implemented state- of-the-art technology, utilizing AI to provide clients of

FAVO Capital with responses within 2 to 48 hours. It is also important to add that we maintain a stringent credit policy, benefiting from the availability of compre- hensive data on creditworthiness and credit behaviour of clients in the USA, making credit assessments more efficient.

As an investment management company, we have also devised an innovative investment solution linked to the private credit market, offering attractive returns in USD and providing fixed income on a quarterly basis. Our solutions have attracted pension funds and other institutional investors, having undergone all necessary due diligence. This has enabled a broader client base to capitalize on the exponential growth of the private credit market.

 

Which sectors or industries do you believe hold the most potential for investment in the US?

There are numerous opportunities, but I will focus on two sectors we know particularly well: the private credit sector, which I already touched on, and the property market.

Since COVID-19, the property sector, especially the residential and hospitality segments, has experienced incredible growth. While the commercial property sector has faced challenges, there are still great opportunities, particularly in South Florida and Miami. The residential, multi-family space presents significant potential. We see promising investment opportunities in this sector, and are actively looking to invest in it.

The migration of Fortune 500 companies such as Am- azon and top banks to Miami has been a major driver of growth. We all know New York is the US Banking capital, but Miami is fast becoming the second banking capital.

With big companies moving to South Florida, Miami and Fort Lauderdale, the supporting industries and extensive workforce follow. This influx is driving the residential sector, contributing to what many see as a miracle in the region’s real estate market.

 

How is Stewards Investment Capital positioned to take advantage of these opportunities?

We are exceptionally well-positioned given our on-the- ground presence and our close monitoring of how these sectors are evolving. I frequently travel between South Africa, Mauritius, and the U.S., spending a sig- nificant amount of time in South Florida and at our New York offices. This hands-on approach allows me to see, live, and breathe what is happening in these mar- kets first-hand. Our CEO, Bilal Adam, who is based in Mauritius, also spends a considerable amount of his time in the U.S.

Being physically present in these locations gives us a unique advantage. There is no substitute for being in the same room with people when forging relationships and closing deals. Our on-the-ground presence ensures we are not out of sight and out of mind, enabling us to participate in and seize opportunities as they arise.

In our business, relationships and trust are indispensable. Money is a sensitive subject, and trust is earned only once. Investors will give you an opportunity based on the strength of your relationship and the trust you have built. You can’t make someone feel comfortable over an email; face-to-face interaction is fundamental in our industry.

I would say our strategic positioning, together with our commitment to maintaining strong relationships and a robust presence in key markets, ensures that we are not just aware of opportunities, but are also in the best pos- sible position to act on them. This approach has been

instrumental in the materialization of deals that might not have happened otherwise

 

Can you highlight some emerging trends or sectors that you believe offer significant opportuni- ties in South Africa and Africa?

There seems to be a trend toward becoming more pri- vate sector-friendly, which is certainly going to unlock opportunities across various sectors, for instance in the infrastructure space, energy supply, telecommunica- tions, and transport (such as Transnet and Eskom). This shift opens up massive opportunities that are poised to spur economic growth, which will overflow into all oth- er areas, including the asset management space.

In the telecommunications sector, there’s significant growth in Africa’s mobile network operators, particular- ly with the building of telecom towers in South Africa and other African countries. These projects are seen to be very successful, driven by the increasing demand and sustainable development goals. More importantly, these developments align well with corporate social responsi- bility initiatives aimed at improving the livelihoods of people by engaging in community upliftment through infrastructural upgrades and providing access to essen- tial services. The new developments also offer attractive opportunities to investors.

I would also like to highlight the growth of the private credit sector in Africa. Small and medium enterprises across Africa have similar needs to those in the US. Africa’s mid-market businesses, the backbone of the conti- nent’s economic growth, often find themselves trapped in a financing void with banks’ stringent credit policies. As the African private credit market continues to evolve and mature, those who can navigate its unique challenges and provide flexible, tailored financing solutions will be at the forefront of driving economic transformation and building a brighter future for the continent.

 

Stewards Investment Capital has recently won two global awards. What is the narrative behind the success of the company?

The recent awards have been a major achievement for us all, and we are deeply humbled by the trust of our investors and the dedication of our staff in Mauritius, South Africa, and the USA. The first award is the Best Fixed Income Investment Innovation Award, and the assessment was based on our APEX Structured Liquidity solution, which is linked to the burgeoning private credit market in the USA. This market has experienced exponential growth over the last years, and is projected to reach USD 2.3 trillion by 2027. After careful analysis of this trend, we have structured an investment solution that provides a fixed income paid quarterly on investments to pension funds, institutional investors, and HNWIs.

The second award is the Best Structured Deal of the Year at the Global Private Banking Innovation Awards 2024. This global accolade celebrates Stewards In- vestment Capital’s instrumental role in facilitating the ground-breaking acquisition of FAVO Capital, resulting in FAVO Capital’s acquisition of all entities comprising the FAVO Group of Companies. This marked a significant milestone for both companies. Since this restruc- turing in June 2023, FAVO Capital has experienced sig- nificant growth, and now sees itself as a key player in the private credit market in the USA.

I would say the success of Stewards is entirely based on relationships—whether they are with our investors, our people, or our partners. It’s all about how we have honored our promises in a consistent manner over the years. Trust takes time to build, and once built, it should be nurtured. You have to consistently deliver on what you have promised, and this is our core belief.

What also sets us apart is our consistent drive to build niche investment solutions for our investors that are not found elsewhere. Our investment analysts take consid- erable time to spot emerging asset classes, and our role is to make our investors’ money work harder with a di- versified asset portfolio.

 

What attracted you to FAVO Capital Inc?

For me, it’s always about the people, the business they run, and their potential for growth. FAVO Capital is a highly professionally run entity where things are done properly, making the acquisition an easy decision.

The company is well-managed by a team of seasoned professionals. Shaun Quin, the President, has over 20 years of business and entrepreneurial experience. He has successfully launched and grown ventures across various industries, including investment management, finance, technology, retail, and real estate. FAVO Capital’s CEO, Vincent Napolitano, is an experienced banker from Wall Street, bringing his valuable expertise from the financial industry. Our CFO, Vaughan Korte, has over 15 years of experience in the retail, finance, and technology sectors. Moreover, Bryan Dumas, our Director of Sales, who is an industry expert and heads our national sales and customer service, ensures that our cli- ents receive top-notch support and assistance, all whilst completing his MBA in Business Management

During our due diligence process, FAVO Capital sur- passed all our expectations in terms of financial perfor- mance and future strategy. Their innovative approach, professionalism, attention to detail, and customer-centric focus were key factors that were appealing to us.

 

What role do you play in its structure and strategic direction?

As the Chief Strategy Officer of FAVO Capital, I am integral to all strategic decisions concerning the company’s expansion and development. I meet regularly with the board to discuss and guide the strategic direction of the company.

Over the last months, our expansion and growth have been exponential. We continue to identify and seize opportunities to acquire companies that align with our vision. In January 2024, we made three strategic acquisitions:

• Believe, a call center in the Dominican Republic, was acquired to enhance our customer engagement and support capabilities.
• Lendtech CRM Solutions, which we acquired to ad- vance our fintech capabilities, ensuring we stay at the forefront of technological innovation in our industry.
• Independent Sales Organization (ISO), to further strengthen our sales and distribution network, ensuring a broader reach and more effective delivery of our ser- vices.

These acquisitions are vital in our strategy to provide comprehensive, cutting-edge solutions to our clients, ensuring we remain a key player in the private credit market. My role involves steering these strategic initia- tives, ensuring their successful integration, and contin- ually seeking new avenues for growth and innovation

 

How do you approach leadership and building strong relationships within your company and with investors?

I firmly believe in empowering my team rather than micromanaging. In our highly educated and professional sector, it’s essential to treat individuals as capable adults. I trust my employees to perform their duties with the expertise for which they were hired, allowing them the autonomy to take ownership of their roles.

This approach deeply helps in promoting a sense of re- sponsibility and encourages my team members to act as if they are running their own business. By providing the necessary respect and freedom, individuals can flourish, contributing their best work without the constraints of excessive oversight. When employees feel confident and comfortable, they are more likely to innovate and excel. Building strong relationships with investors requires a similar level of trust and personal engagement. Being physically present, whether in South Florida, New York, South Africa or Mauritius, is vital. Deals are fundamen- tally relationship-based, and being in the same room as potential partners builds trust and facilitates meaningful connections.

Investors need to feel confident in who they are work- ing with, and this trust is built through face-to-face in- teractions. It’s about creating a culture where everyone feels valued and part of a collective mission.

I am also a firm believer in an open and approachable leadership. No one in my company should ever feel scared to give me a call. If they do, then I’ve failed as a leader. True leadership, to me, is about promoting an environment where communication flows freely.

From my career of 25 years, I’ve emphasized the im- portance of building relationships with people. In our day to day, we handle highly sensitive matters - people’s money, which is often their lifeline for survival and business success. This inherently creates a deep, trust-based relationship where clients feel comfortable confiding in us about various aspects of their lives and businesses. Maintaining this familiarity and sincerity in relation- ships is fundamental for me. Our investors are not just numbers; they are partners in our journey. We engage with them regularly, ensuring they feel valued and understood.

What lessons have you learned about leadership and human relations throughout your career?

I’ve learned that security, or rather insecurity, plays a sig- nificant role in leadership and human relations. Every- one has insecurities in varying forms and degrees - no one is 100% secure. These insecurities often manifest themselves in different leadership behaviors, whether it’s aggressive leadership, sarcasm, or other negative traits.

From my experience, I’ve realized that a leader’s level of security significantly influences their leadership style. For instance, I’m secure enough to be the quietest per- son in the room if necessary. I don’t feel the need to overshadow a subordinate with a better idea. I’m secure enough to surround myself with people who are smart- er than me because that’s how growth happens. I want to see my team thrive.

Leadership, to me, is about creating an environment where everyone can excel and contribute to something bigger. It’s similar to the role of a coach in a sports team. The coach isn’t the star player, but he/she is key to holding everything together. It’s the players who score the goals or make the winning runs, but the coach sets the strategy, ensures cohesion, and builds the team spirit and culture.

A good coach, like a good leader, should not have an oversized ego or insecurities, because it’s not about them, it’s about the team. Leadership is about empow- ering others to do their best and succeed. It’s simple, yet powerful.