SALT Voices: Douglas Monticciolo | Founder, CEO & CIO, Brevet Capital Management

TL;DR

Douglas Monticello, CEO of Breve Capital Management, discusses his company's financial solutions for government payables and the need for increased lending to small businesses in the UAE.

Transcript

this is Natasha DeSoto reporting for salt voices and I'm here at salt abu-dhabi with douglas monticello the founder CEO of breve Capital Management welcome to salt I would that be Doug great to have you here with us wait thank you very much thanks for having me now you are a salt veteran from what I heard you've been you know making your appearance... Read More

Key Insights

• ♿ Salt Abu Dhabi provides a great platform for fund managers like Douglas Monticello to establish themselves in the UAE and access exciting opportunities.
• 🔨 Breve Capital Management's financing solutions for governments focus on technology tools and collaboration to make payment processes more efficient.
• 😀 Private lenders face a confidence gap compared to conventional banks due to the need for trust and familiarity with business owners' experiences.
• 👨‍💼 The lending gap for small and medium businesses in the UAE can be addressed by improving the legal system, ease of access to companies, and fostering a better understanding of the local business environment.
• 🚨 Government involvement and support programs are crucial for accelerating the growth and maturity of the lending industry, especially in emerging markets like the Middle East.
• 🏍️ The possibility of a dip in the credit cycle is always a concern, but it is difficult to predict the timing or reason. Structural leverage and unexpected events can be triggers for a downturn.

Questions & Answers

Q: How does Breve Capital Management address the issue of unreliable government payments to vendors?

Breve Capital Management acts as a financial service provider, offering solutions that make payment processes for governments faster and more efficient. By utilizing technology tools and working closely with the government, they aim to solve the timing issues and red tape associated with government payables.

Q: Do private lenders face a confidence gap compared to conventional banks for lending?

Yes, there is a confidence gap when it comes to private lenders. Building trust takes time, as lenders need to know and understand business owners' experiences. However, alternative lenders are increasingly becoming the dominant force in providing capital for businesses worldwide.

Q: Why is there a lack of lending to small and medium businesses in the UAE?

Only a small percentage of conventional financing is directed towards small and medium businesses in the UAE. This is due to factors such as the lack of a solid legal system, ease of access to companies, and a need for better understanding of the UAE's business environment. Adopting a common law framework and establishing consistency in processes can help address this issue.

Q: What needs to be done in emerging markets to achieve maturity in lending and credit?

To achieve maturity in lending and credit, emerging markets like the UAE can benefit from government support programs and backstops that encourage financial technology growth. This support can enable the industry to take calculated risks on a larger scale and align with the government's goals.

Summary & Key Takeaways

• Douglas Monticello explains that Breve Capital Management provides financial solutions to governments by offering faster, more efficient payment processes through technology tools and close collaboration with government partners.

• He acknowledges the confidence gap in approaching private lenders but believes alternative lenders are now becoming the dominant source of capital for businesses worldwide.

• Monticello highlights the need for increased lending to small and medium businesses in the UAE, which currently receive only a small percentage of conventional financing. He suggests a solid legal system and ease of access to companies as key factors to encourage lending in this sector.