MILFAM
Lloyd Miller, Jr. built his family’s fortune through active investing in the 1940s, with his son Lloyd III taking over management of the investments in 1990 and formally establishing “MILFAM” as the Miller family office in 1996. Today, MILFAM is led by a non-family team of seasoned professionals with extensive backgrounds in asset and wealth management. Based in Stuart, Florida, MILFAM operates as an institutional-grade investment fund, with the majority of its capital managed in internal strategies focused on long-term capital appreciation to benefit current and future generations of the Miller family.
MILFAM Chief Financial Officer Dylan Cariero worked closely with NAV during the evaluation and transition processes. “Overall, NAV boosted our operational efficiency through a continuous collaborative effort focused on technology solutions,” Cariero said. “Not only are we now better equipped to manage our complex management tasks, but we are well-positioned to leverage additional innovative technology in the future.”
MILFAM utilized Microsoft® Excel® and Adobe® Acrobat® PDFs to manage its more than 70 non-transactional checking and custodian accounts. Daily updates were challenging and slow, leading to delays, a higher risk of errors, and stakeholders’ inability to access timely data.
NAV initiated a comprehensive account modernization project, transitioning from the legacy system to an advanced integrated software solution enabling real-time updates. The more dynamic platform streamlined account management and provided user-friendly access to account information.
All accounts were brought on line to the new solution, enabling daily updates that improved accuracy and accessibility. “Our stakeholders and management team were very satisfied with the ability to access real-time data to support more informed decision-making,” Cariero said.
MILFAM had consistent issues with managing complex trade data from the legacy trade file. The existing format was cumbersome, leading to inefficiencies in data processing. Team members also found it difficult to extract meaningful insights, which hindered accurate reporting and timely decision-making.
To tackle this issue, NAV collaborated closely with the MILFAM team to convert its intricate trade file into a more streamlined Trade File format. The process involved analyzing the existing data structure and identifying key elements that needed to be retained. By standardizing data and simplifying the file, the team established a new and much more efficient and accessible format.
The transition to the Trade File significantly enhanced data management and clarity. MILFAM team members reported a marked improvement in efficiency and in their ability to analyze trade data quickly and accurately. “The streamlined process enabled the smoother integration of our trade file data into existing systems,” Cariero said. “We’ve also noted that the new process has fostered stronger day-to-day collaboration between our team and the NAV team,” Cariero said.
Managing more than 250 membership interests and inter-fund dealings was a daunting task. The complexity of maintaining accurate cross-investment records was difficult and inefficient, increasing the risk of errors and delays.
A comprehensive fund management system was deployed to automate record-keeping, streamline inter-fund transactions, and provide real-time performance updates and accurate periodic account statements for members. Advanced algorithms ensured consistency and accuracy across all records.
The new system drastically improved efficiency and accuracy, with reliably error-free cross-investment records and seamless loan data management. “With NAV’s support, we can now handle complex fund management with ease, ensuring transparency and reliability in all our financial operations,” Cariero said.
Specialized investment information required extensive manual intervention during the closing process, especially for complex capital and investment transactions. This complexity resulted in the delivery of quarterly accounting packages several months behind schedule.
Through a series of strategic solutions, including streamlined processes, more efficient workflows, and using technology to automate repetitive tasks, the team was able to simplify accounting functions. Additional resources were also allocated to handle the manual interventions required for specialized data. This multi-pronged approach helped the team gradually catch up on overdue work.
The accounting team successfully brought their operations back on track and are on schedule for the current quarter’s finalization work. This turnaround not only improved their efficiency, but also raised the team’s morale and confidence in handling future challenges. “Evaluating and changing our approach to accounting has boosted the timeliness and quality of our reporting. Stakeholders, auditors, tax preparers, and our board members are pleased with the timing of our deliverables. It’s a big win,” Cariero said.