Quarterly Report
Q3 2022
Dear Investors,
We have successfully completed our first full quarter of operations in the Alturas Business Fund with an annualized return to investors of 25.65% for the quarter. We are excited about building a portfolio of successful operating businesses with you over the next few decades. It’s a privilege to do this work. Thank you for your trust!
We officially acquired Idaho Fitness Factory on July 1st for $7.5 million. This was the first business acquisition in the fund. After months of due diligence, it was a huge relief to have everything come together for the deal to close. Fortunately, we had a willing buyer and willing seller, so the transaction was very smooth. The banking environment changed leading up to the acquisition, but we still had multiple lenders interested in financing the deal for us. A huge shout out to Columbia Bank for providing the most favorable terms and coming through for us.
Idaho Fitness Factory is a chain of 8 gyms in the Boise area with over 18,000 total members that is ripe for expansion. The previous owners built a great business with a strong brand and strategy, but wanted a new owner to execute an expansion plan. With our expertise in operating businesses and in real estate, this opportunity made a lot of sense. We are eager to find the right time to build the next location – but we are cautiously moving ahead with the changing market conditions.
Our focus in this first quarter has been to execute the acquisition and transition to us as the new owners. We are fortunate to have a great general manager who has been running day-to-day operations for almost a decade. Our focus going forward includes:
Growing revenue through new sign ups and retention;
Continuing to empower the management team; and
Perfecting the operating model at current gyms to facilitate expansion.
While we remain focused on operating and expanding Idaho Fitness Factory, we also continue to explore opportunities to grow the fund in other verticals. This quarter we have explored opportunities to acquire businesses in construction, services, and manufacturing. Sellers’ expectations remain high, and we have yet to find the next business that we believe fits our investment criteria. We will continue to explore every possible opportunity to grow this portfolio in the right way.
Thank you for your confidence and your partnership. The future is bright, and we look forward to building this together with you!
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
We have successfully completed our first full quarter of operations in the Alturas Business Fund with an annualized return to investors of 25.65% for the quarter. We are excited about building a portfolio of successful operating businesses with you over the next few decades. It’s a privilege to do this work. Thank you for your trust!
We officially acquired Idaho Fitness Factory on July 1st for $7.5 million. This was the first business acquisition in the fund. After months of due diligence, it was a huge relief to have everything come together for the deal to close. Fortunately, we had a willing buyer and willing seller, so the transaction was very smooth. The banking environment changed leading up to the acquisition, but we still had multiple lenders interested in financing the deal for us. A huge shout out to Columbia Bank for providing the most favorable terms and coming through for us.
Idaho Fitness Factory is a chain of 8 gyms in the Boise area with over 18,000 total members that is ripe for expansion. The previous owners built a great business with a strong brand and strategy, but wanted a new owner to execute an expansion plan. With our expertise in operating businesses and in real estate, this opportunity made a lot of sense. We are eager to find the right time to build the next location – but we are cautiously moving ahead with the changing market conditions.
Our focus in this first quarter has been to execute the acquisition and transition to us as the new owners. We are fortunate to have a great general manager who has been running day-to-day operations for almost a decade. Our focus going forward includes:
Growing revenue through new sign ups and retention;
Continuing to empower the management team; and
Perfecting the operating model at current gyms to facilitate expansion.
While we remain focused on operating and expanding Idaho Fitness Factory, we also continue to explore opportunities to grow the fund in other verticals. This quarter we have explored opportunities to acquire businesses in construction, services, and manufacturing. Sellers’ expectations remain high, and we have yet to find the next business that we believe fits our investment criteria. We will continue to explore every possible opportunity to grow this portfolio in the right way.
Thank you for your confidence and your partnership. The future is bright, and we look forward to building this together with you!
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
Dear Investors,
We have successfully completed our first full quarter of operations in the Alturas Business Fund with an annualized return to investors of 25.65% for the quarter. We are excited about building a portfolio of successful operating businesses with you over the next few decades. It’s a privilege to do this work. Thank you for your trust!
We officially acquired Idaho Fitness Factory on July 1st for $7.5 million. This was the first business acquisition in the fund. After months of due diligence, it was a huge relief to have everything come together for the deal to close. Fortunately, we had a willing buyer and willing seller, so the transaction was very smooth. The banking environment changed leading up to the acquisition, but we still had multiple lenders interested in financing the deal for us. A huge shout out to Columbia Bank for providing the most favorable terms and coming through for us.
Idaho Fitness Factory is a chain of 8 gyms in the Boise area with over 18,000 total members that is ripe for expansion. The previous owners built a great business with a strong brand and strategy, but wanted a new owner to execute an expansion plan. With our expertise in operating businesses and in real estate, this opportunity made a lot of sense. We are eager to find the right time to build the next location – but we are cautiously moving ahead with the changing market conditions.
Our focus in this first quarter has been to execute the acquisition and transition to us as the new owners. We are fortunate to have a great general manager who has been running day-to-day operations for almost a decade. Our focus going forward includes:
Growing revenue through new sign ups and retention;
Continuing to empower the management team; and
Perfecting the operating model at current gyms to facilitate expansion.
While we remain focused on operating and expanding Idaho Fitness Factory, we also continue to explore opportunities to grow the fund in other verticals. This quarter we have explored opportunities to acquire businesses in construction, services, and manufacturing. Sellers’ expectations remain high, and we have yet to find the next business that we believe fits our investment criteria. We will continue to explore every possible opportunity to grow this portfolio in the right way.
Thank you for your confidence and your partnership. The future is bright, and we look forward to building this together with you!
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Key Numbers
Key Numbers
Key Numbers
25.65%
Average Realized return Q3
25.65%
Average Realized return Q3
25.65%
Average Realized return Q3
$201k
Realized Net income Q3
$201k
Realized Net income Q3
$201k
Realized Net income Q3
Stated returns are average annualized investor returns. Individual investor returns may vary based on the unit pricing at the time of investment. Realized net income (Excess Distributable Income) includes realized gains and losses and excludes unrealized gains and losses recorded during the period. Financial information herein related to the quarters ended in 2022 are unaudited as of the date of this report.
Stated returns are average annualized investor returns. Individual investor returns may vary based on the unit pricing at the time of investment. Realized net income (Excess Distributable Income) includes realized gains and losses and excludes unrealized gains and losses recorded during the period. Financial information herein related to the quarters ended in 2022 are unaudited as of the date of this report.
Realized Returns
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
$2.18M
Total Capital Raised
$2.18M
Total Capital Raised
$2.18M
Total Capital Raised
$141K
Investor distributions since inception
$141K
Average realized return
$141K
Investor distributions since inception
19
Number of investors
19
Number of investors
19
Number of investors
95.41%
Current reinvestment rate
95.41%
Current reinvestment rate
95.41%
Current reinvestment rate
$1,000
Unit price
$1,000
Unit price
$1,000
Unit price
$8.28M
Assets under management
$8.28M
Assets under management
$8.28M
Assets under management
*Distributions since inception includes Q3-2022 distributions paid on 10/31/2022.
Idaho Fitness Factory
Idaho Fitness Factory is a chain of 8 gyms in the Treasure Valley (gyms in Boise, Meridian, Nampa, and Caldwell), ranging from 6,000-12,000 square feet. In 2011, a local business owner, Cory Coltrin, filled some vacancy he had in a multi-tenant retail center that he owned on Fairview Avenue in Boise. He filled the space with a gym (Idaho Fitness Factory) that he opened with a few partners. Over the years, the company expanded to other locations, experimenting with different gym sizes, amenities, pricing, etc. Along the way, they dialed in many of the aspects of the operations and turned the company into a profitable business. In late 2021, one of the owners approached Blake to see if Alturas would be interested in buying the business. According to him, Alturas would be a perfect fit, because the new owner would need to have expertise in business operations and real estate. We spent the first part of 2021 conducting diligence, structuring a transaction for only the operations side of the business, arranging financing, and ultimately closing on the acquisition on July 1, 2022. Beginning July 1st, we went to work. We focused on key aspects of the team and company including: • Building trust with the team, especially Dusty, the general manager; • Continuing to deliver a great experience for our members; • Creating a leadership team and structure while clarifying roles of key leaders; • Developing a leadership training program; • Creating and working on our long-term vision for the company; • Investing in a few pieces of new equipment as needed in the gyms; • Focusing on revenue growth and customer retention. For the next quarter, we are prioritizing the following work: • Gearing up our marketing and staffing plans for November – February, which is the busiest time of year; • Refining our long-term vision as a leadership team; • Reinvesting and refocusing on our group fitness offering; • Creating budgets together as a team (including our gym managers) and aligning employee compensation with company performance; • Creating our gym management playbook; • Building out the skills and tools needed to identify, underwrite, and execute opportunities to expand into new locations in the Treasure Valley. Overall, the business is in great shape. We are eager to set the right foundation for growth by prioritizing the right investments in people, processes and the capital expenditures.
Idaho Fitness Factory
Idaho Fitness Factory is a chain of 8 gyms in the Treasure Valley (gyms in Boise, Meridian, Nampa, and Caldwell), ranging from 6,000-12,000 square feet. In 2011, a local business owner, Cory Coltrin, filled some vacancy he had in a multi-tenant retail center that he owned on Fairview Avenue in Boise. He filled the space with a gym (Idaho Fitness Factory) that he opened with a few partners. Over the years, the company expanded to other locations, experimenting with different gym sizes, amenities, pricing, etc. Along the way, they dialed in many of the aspects of the operations and turned the company into a profitable business. In late 2021, one of the owners approached Blake to see if Alturas would be interested in buying the business. According to him, Alturas would be a perfect fit, because the new owner would need to have expertise in business operations and real estate. We spent the first part of 2021 conducting diligence, structuring a transaction for only the operations side of the business, arranging financing, and ultimately closing on the acquisition on July 1, 2022. Beginning July 1st, we went to work. We focused on key aspects of the team and company including: • Building trust with the team, especially Dusty, the general manager; • Continuing to deliver a great experience for our members; • Creating a leadership team and structure while clarifying roles of key leaders; • Developing a leadership training program; • Creating and working on our long-term vision for the company; • Investing in a few pieces of new equipment as needed in the gyms; • Focusing on revenue growth and customer retention. For the next quarter, we are prioritizing the following work: • Gearing up our marketing and staffing plans for November – February, which is the busiest time of year; • Refining our long-term vision as a leadership team; • Reinvesting and refocusing on our group fitness offering; • Creating budgets together as a team (including our gym managers) and aligning employee compensation with company performance; • Creating our gym management playbook; • Building out the skills and tools needed to identify, underwrite, and execute opportunities to expand into new locations in the Treasure Valley. Overall, the business is in great shape. We are eager to set the right foundation for growth by prioritizing the right investments in people, processes and the capital expenditures.
Idaho Fitness Factory
Idaho Fitness Factory is a chain of 8 gyms in the Treasure Valley (gyms in Boise, Meridian, Nampa, and Caldwell), ranging from 6,000-12,000 square feet. In 2011, a local business owner, Cory Coltrin, filled some vacancy he had in a multi-tenant retail center that he owned on Fairview Avenue in Boise. He filled the space with a gym (Idaho Fitness Factory) that he opened with a few partners. Over the years, the company expanded to other locations, experimenting with different gym sizes, amenities, pricing, etc. Along the way, they dialed in many of the aspects of the operations and turned the company into a profitable business. In late 2021, one of the owners approached Blake to see if Alturas would be interested in buying the business. According to him, Alturas would be a perfect fit, because the new owner would need to have expertise in business operations and real estate. We spent the first part of 2021 conducting diligence, structuring a transaction for only the operations side of the business, arranging financing, and ultimately closing on the acquisition on July 1, 2022. Beginning July 1st, we went to work. We focused on key aspects of the team and company including: • Building trust with the team, especially Dusty, the general manager; • Continuing to deliver a great experience for our members; • Creating a leadership team and structure while clarifying roles of key leaders; • Developing a leadership training program; • Creating and working on our long-term vision for the company; • Investing in a few pieces of new equipment as needed in the gyms; • Focusing on revenue growth and customer retention. For the next quarter, we are prioritizing the following work: • Gearing up our marketing and staffing plans for November – February, which is the busiest time of year; • Refining our long-term vision as a leadership team; • Reinvesting and refocusing on our group fitness offering; • Creating budgets together as a team (including our gym managers) and aligning employee compensation with company performance; • Creating our gym management playbook; • Building out the skills and tools needed to identify, underwrite, and execute opportunities to expand into new locations in the Treasure Valley. Overall, the business is in great shape. We are eager to set the right foundation for growth by prioritizing the right investments in people, processes and the capital expenditures.
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
18,275
Total members
18,275
Total members
8
Total locations
8
Total locations
72,458
Total square feet
72,458
Total square feet
2,284
Average members per location
2,284
Average members per location
$150K
Average revenue per location
$150K
Average revenue per location
$1.20M
Total revenue Q3 2023
$1.20M
Total revenue Q3 2023
18,275
Total members
8
Total locations
72,458
Total square feet
2,284
Average members per location
$150K
Average revenue per location
$1.20M
Total revenue Q3 2023
Fund Description
The Alturas Business Fund is an evergreen business investment fund formed to provide accredited investors access to a diversified portfolio of small to medium-sized businesses. The Fund focuses on acquiring and operating businesses with sustainable and predictable cash flow that produce attractive risk-adjusted returns in the Intermountain West and Pacific Northwest, starting with Idaho. The Fund is a $100 million equity and debt offering.
Fund Description
The Alturas Business Fund is an evergreen business investment fund formed to provide accredited investors access to a diversified portfolio of small to medium-sized businesses. The Fund focuses on acquiring and operating businesses with sustainable and predictable cash flow that produce attractive risk-adjusted returns in the Intermountain West and Pacific Northwest, starting with Idaho. The Fund is a $100 million equity and debt offering.
Fund Description
The Alturas Business Fund is an evergreen business investment fund formed to provide accredited investors access to a diversified portfolio of small to medium-sized businesses. The Fund focuses on acquiring and operating businesses with sustainable and predictable cash flow that produce attractive risk-adjusted returns in the Intermountain West and Pacific Northwest, starting with Idaho. The Fund is a $100 million equity and debt offering.
Our Investment Offerings
Summary of Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of businesses focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted total realized return: 20%
No Preferred Return
Profit Split: 70% investors, 30% manager
Fees: 1.5% asset management fee
Minimum investment: $100,000
Our Investment Offerings
Summary of Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of businesses focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted total realized return: 20%
No Preferred Return
Profit Split: 70% investors, 30% manager
Fees: 1.5% asset management fee
Minimum investment: $100,000
Our Investment Offerings
Summary of Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of businesses focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted total realized return: 20%
No Preferred Return
Profit Split: 70% investors, 30% manager
Fees: 1.5% asset management fee
Minimum investment: $100,000
All projections are hypothetical and predicated upon various assumptions that may or may not be identified as such. The future operating and financial performance information contained herein is for illustrative purposes and is not intended to portray any sort of targeted or anticipated returns. There can be no assurance that the Fund will achieve its investment objectives and actual performance may vary significantly.Alturas Ventures, LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.