“In the journey of life and business, every step taken outside our comfort zone leads to growth, innovation, and deeper connections. As we reflect on our recent successes and the trust placed in us by our incredible investors, it becomes clear that relationships are the cornerstone of our achievements”- Glen Steward
1. 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 Investment 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 restructuring in June 2023, FAVO Capital has experienced significant 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 considerable time to spot emerging asset classes, and our role is to make our investors' money work harder with a diversified asset portfolio.
2. What inspired your move from South Africa to Mauritius and to USA?
My move from South Africa to Mauritius, and subsequently to the USA, was driven by a combination of seeking new business opportunities and fulfilling family aspirations. South Africa provided a solid foundation 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 environment, 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 opportunities to engage with innovative industries, access a broader network of investors, and expand Stewards Investment 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, USA offered great opportunities in terms of tertiary education for my 4 children and as a family, we are exposed to a diverse and dynamic cultural environment which we are all enjoying.
3. 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, regulatory 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. USA has been a little different as the business environment is bigger by a thousand times so it took a little longer.
The Regulatory Landscape also required a 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 compliance 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 expansion. Mauritius offered a gateway to African and Asian markets where we have built relationships with major pension funds, institutional investors, 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 before.
Establishing our presence in multiple countries helped us build a robust global network. This network has been key for building meaningful partnerships, attracting investments, and sharing knowledge across different regions.
The challenges we faced also spurred something great which is innovation. In and from Mauritius, we developed unique financial solutions tailored for global investors. In USA, we invested in US-listed FAVO Capital, a bold step toward capitalizing on the burgeoning 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 with 2 hours! Traditional methods relying on audited financial and management accounts are often cumbersome and time-consuming. However, 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 always 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.
4. How did Mauritius contribute to your business growth and strategy?
Given the fact that I am based in America, there is often a comparison of Mauritius to the Cayman Islands of the Northern Hemisphere, particularly for American businesses. 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 frequently 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 English 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 extremely 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.
5. 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 favorable business environment with strong regulatory 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, including double taxation avoidance agreements with many countries. This reduces our tax burden and makes Mauritius 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 innovative financial solutions globally.
Strong Financial Services Sector: The well-established financial services sector here offers everything from banking to fund management and insurance. This robust 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.
7.Can you share insights on the differences and similarities in operating in Mauritius and USA?
I’ve touched on some of the benefits of operating in both jurisdictions and one aspect we need to consider 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 operations 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 potential of your business depend on operating in larger economies like USA.
In terms of similarities, both Mauritius and the USA place significant importance on compliance and maintaining 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 financial 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 effectively. 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 consistency in business operations. This robust legal framework in both countries is important for us, as it reinforces the integrity and compliance of our operations.
8. 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 regulated and licensing requirements become more stringent, 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 given strict guidelines. 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 sector. Whether people are borrowing money to expand their businesses during an economic boom or to save their businesses during a recession, there is always demand.
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 credit 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.
9. 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 rapidly growing direct funding company that offers funding 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 market 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 also important to add that we maintain a stringent credit policy, benefiting from the availability of comprehensive data on creditworthiness and credit behavior 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.
10.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 clients receive top-notch support and assistance all whilst completing his MBA in Business Management
During our due diligence process, FAVO Capital surpassed all our expectations in terms of financial performance and future strategy. Their innovative approach, professionalism, attention to detail, and customer-centric focus were key factors that were appealing to us.
11. 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 advance 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 services.
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 initiatives, ensuring their successful integration, and continually seeking new avenues for growth and innovation
14. 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: private credit sector which I already touched on and 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 Amazon 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 to becoming the second banking capital.
With big companies moving to South Florida, Miami, 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.
15. 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 significant 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 markets firsthand. Our CEO Bilal Adam who is based in Mauritius also travels to USA and spends considerable amount of his time here in the US.
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 possible position to act on them. This approach has been instrumental in the materialization of deals that might not have happened otherwise
16. Can you highlight some emerging trends or sectors that you believe offer significant opportunities in South Africa and Africa?
There seems to be a trend toward becoming more private sector-friendly, which is certainly going to unlock opportunities across various sectors, for instance, in the infrastructure space, energy supply, telecommunications, 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 other areas, including the asset management space.
In the telecommunications sector, there's significant growth in Africa’s mobile network operators, particularly 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 responsibility initiatives aimed at improving the livelihoods of people by engaging in community upliftment through infrastructural upgrades and providing access to essential 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 continent’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.
17. 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 responsibility 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 fundamentally 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 working with, and this trust is built through face-to-face interactions. 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 importance 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 relationships 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.
18. What lessons have you learned about leadership and human relations throughout your career?
I've learned that security, or rather insecurity, plays a significant role in leadership and human relations. Everyone has insecurities in varying forms and degrees—no one is 100% secure. These insecurities often manifest 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 person 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 smarter 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 in 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 empowering others to do their best and succeed. It's simple yet powerful.
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