Quarterly Report
Q4 2022
Dear Investors,
We completed our second quarter of operations in the Alturas Business Fund – and it really does feel like we are just getting started. It was another great quarter for the fund, as we achieved an annualized return of 23.73% for our investors. We really appreciate you for joining us on this journey.
We are grateful that Idaho Fitness Factory is our first investment. It is a great company with all the right pieces – a hard-working team, a loyal customer base, and a stable foundation to build and grow from. After six months, we feel like we paid a fair price for the business. Our due diligence was thorough, and we have not found any major issues post-acquisition. We still have lots to learn about the business, but the returns are very close to what we expected. That alone feels like a major victory.
We are especially grateful to have an amazing partner in Dusty Martin. Dusty was the General Manager of Idaho Fitness Factory under previous ownership and has been elevated to President and CEO. His enthusiasm for fitness and passion for customer experience have been fundamental to the company’s success. Dusty worked at Idaho Fitness Factory for eight years prior to the Alturas acquisition and knows the business inside and out. He hired the entire team. He knows hundreds, if not thousands, of our members. He’s the right person to lead the company into the next phase of growth. Dusty, in conjunction with our real estate and construction teams at Alturas, is actively looking for the next locations to expand.
We are moving cautiously and carefully toward the next acquisition in the Fund. Opportunities are coming to us in many different industries, and we continue to leverage our partnership to find the next great deal. This is a key to our on-going success – being a business buyer of choice, with business owners approaching us to buy their companies. We are waiting for the right opportunities to emerge at the right prices.
To be clear, before we move on to the next acquisition, we want to ensure Idaho Fitness Factory is in the right place, with the right team, resources, and oversight to succeed. Everything is on track for this to happen in 2023. We are in no rush to add the next business – but we want to be ready when the right one comes along.
Thank you again for partnering with us in this endeavor. We are so excited to have the opportunity to buy and build businesses. It’s what we love to do.
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
We completed our second quarter of operations in the Alturas Business Fund – and it really does feel like we are just getting started. It was another great quarter for the fund, as we achieved an annualized return of 23.73% for our investors. We really appreciate you for joining us on this journey.
We are grateful that Idaho Fitness Factory is our first investment. It is a great company with all the right pieces – a hard-working team, a loyal customer base, and a stable foundation to build and grow from. After six months, we feel like we paid a fair price for the business. Our due diligence was thorough, and we have not found any major issues post-acquisition. We still have lots to learn about the business, but the returns are very close to what we expected. That alone feels like a major victory.
We are especially grateful to have an amazing partner in Dusty Martin. Dusty was the General Manager of Idaho Fitness Factory under previous ownership and has been elevated to President and CEO. His enthusiasm for fitness and passion for customer experience have been fundamental to the company’s success. Dusty worked at Idaho Fitness Factory for eight years prior to the Alturas acquisition and knows the business inside and out. He hired the entire team. He knows hundreds, if not thousands, of our members. He’s the right person to lead the company into the next phase of growth. Dusty, in conjunction with our real estate and construction teams at Alturas, is actively looking for the next locations to expand.
We are moving cautiously and carefully toward the next acquisition in the Fund. Opportunities are coming to us in many different industries, and we continue to leverage our partnership to find the next great deal. This is a key to our on-going success – being a business buyer of choice, with business owners approaching us to buy their companies. We are waiting for the right opportunities to emerge at the right prices.
To be clear, before we move on to the next acquisition, we want to ensure Idaho Fitness Factory is in the right place, with the right team, resources, and oversight to succeed. Everything is on track for this to happen in 2023. We are in no rush to add the next business – but we want to be ready when the right one comes along.
Thank you again for partnering with us in this endeavor. We are so excited to have the opportunity to buy and build businesses. It’s what we love to do.
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
We completed our second quarter of operations in the Alturas Business Fund – and it really does feel like we are just getting started. It was another great quarter for the fund, as we achieved an annualized return of 23.73% for our investors. We really appreciate you for joining us on this journey.
We are grateful that Idaho Fitness Factory is our first investment. It is a great company with all the right pieces – a hard-working team, a loyal customer base, and a stable foundation to build and grow from. After six months, we feel like we paid a fair price for the business. Our due diligence was thorough, and we have not found any major issues post-acquisition. We still have lots to learn about the business, but the returns are very close to what we expected. That alone feels like a major victory.
We are especially grateful to have an amazing partner in Dusty Martin. Dusty was the General Manager of Idaho Fitness Factory under previous ownership and has been elevated to President and CEO. His enthusiasm for fitness and passion for customer experience have been fundamental to the company’s success. Dusty worked at Idaho Fitness Factory for eight years prior to the Alturas acquisition and knows the business inside and out. He hired the entire team. He knows hundreds, if not thousands, of our members. He’s the right person to lead the company into the next phase of growth. Dusty, in conjunction with our real estate and construction teams at Alturas, is actively looking for the next locations to expand.
We are moving cautiously and carefully toward the next acquisition in the Fund. Opportunities are coming to us in many different industries, and we continue to leverage our partnership to find the next great deal. This is a key to our on-going success – being a business buyer of choice, with business owners approaching us to buy their companies. We are waiting for the right opportunities to emerge at the right prices.
To be clear, before we move on to the next acquisition, we want to ensure Idaho Fitness Factory is in the right place, with the right team, resources, and oversight to succeed. Everything is on track for this to happen in 2023. We are in no rush to add the next business – but we want to be ready when the right one comes along.
Thank you again for partnering with us in this endeavor. We are so excited to have the opportunity to buy and build businesses. It’s what we love to do.
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
Key Numbers
Key Numbers
Key Numbers
23.73%
Average annualized total return to the investor 4th quarter 2022
23.73%
Average annualized total return to the investor 4th quarter 2022
23.73%
Average annualized total return to the investor 4th quarter 2022
$198k
Realized net income 4th quarter 2022
$198k
Realized net income 4th quarter 2022
$198k
Realized net income 4th quarter 2022
24.69%
Average total return to the investor YTD
24.69%
Average total return to the investor YTD
24.69%
Average total return to the investor YTD
$399k
Realized net income YTD
$399k
Realized net income YTD
$399k
Realized net income YTD
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
Photo: Marie Creek Trail, Idaho
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
$2.82M
Aggregate capital raised
$2.82M
Aggregate capital raised
$2.82M
Aggregate capital raised
$280K
Investor distributions since inception
$280K
Investor distributions since inception
$280K
Average realized return
24
Number of investors
24
Number of investors
24
Number of investors
95.68%
Current reinvestment rate
95.68%
Current reinvestment rate
95.68%
Current reinvestment rate
$1,000
Unit price
$1,000
Unit price
$1,000
Unit price
$8.34M
Assets under management
$8.34M
Assets under management
$8.34M
Assets under management
*Distributions since inception includes Q4-2022 distributions paid on 1/31/2023.
Idaho Fitness Factory
Quarter 4 introduced the beginning of the busiest season of the year in the fitness industry. The teams’ initiatives were focused on preparing operations to support an increased number of new members and higher club usage. The team worked together to refine the long-term vision, develop budgets and employee compensation strategies, explore local expansion opportunities, and ultimately decided to discontinue the group fitness program at the end of the year. The decision to discontinue the group fitness program was made after analyzing how the program affected expenses and member experience. Although a portion of members participated in the program, the team concluded that increased floor space would benefit the majority of the member base. Fortunately, the response has been overwhelmingly positive. As 2023 begins, we are looking forward to exploring local expansion opportunities. Along with new locations, the team is excited to enhance the member experience and deepen market penetration in the Treasure Valley.
Idaho Fitness Factory
Quarter 4 introduced the beginning of the busiest season of the year in the fitness industry. The teams’ initiatives were focused on preparing operations to support an increased number of new members and higher club usage. The team worked together to refine the long-term vision, develop budgets and employee compensation strategies, explore local expansion opportunities, and ultimately decided to discontinue the group fitness program at the end of the year. The decision to discontinue the group fitness program was made after analyzing how the program affected expenses and member experience. Although a portion of members participated in the program, the team concluded that increased floor space would benefit the majority of the member base. Fortunately, the response has been overwhelmingly positive. As 2023 begins, we are looking forward to exploring local expansion opportunities. Along with new locations, the team is excited to enhance the member experience and deepen market penetration in the Treasure Valley.
Idaho Fitness Factory
Quarter 4 introduced the beginning of the busiest season of the year in the fitness industry. The teams’ initiatives were focused on preparing operations to support an increased number of new members and higher club usage. The team worked together to refine the long-term vision, develop budgets and employee compensation strategies, explore local expansion opportunities, and ultimately decided to discontinue the group fitness program at the end of the year. The decision to discontinue the group fitness program was made after analyzing how the program affected expenses and member experience. Although a portion of members participated in the program, the team concluded that increased floor space would benefit the majority of the member base. Fortunately, the response has been overwhelmingly positive. As 2023 begins, we are looking forward to exploring local expansion opportunities. Along with new locations, the team is excited to enhance the member experience and deepen market penetration in the Treasure Valley.
Financial Summary
During the fourth quarter, the team instituted several key changes. While this sets both Idaho Fitness Factory and the fund up for long term success, there was a short-term impact on the P&L. While returns dropped slightly in the fourth quarter because of these changes, it allows IFF and the Fund to start the year off on the right note and lays the foundation for a successful year and future.
Opportunities in 2023
Ended Group Fitness program at the end of the year, which opens over 10,000 sq. ft. to enhance member experience
Changed the membership structure from al-la-carte ($20-65) to Home ($20) and Unlimited ($30)
Material Operational Changes:
Changed insurance carrier to get a lower ongoing rate – incurred a one-time expense
Additional operational expenses due to the end of the year and holiday season
Elevated three key staff members – Increased pay and two moved to salary
Financial Summary
During the fourth quarter, the team instituted several key changes. While this sets both Idaho Fitness Factory and the fund up for long term success, there was a short-term impact on the P&L. While returns dropped slightly in the fourth quarter because of these changes, it allows IFF and the Fund to start the year off on the right note and lays the foundation for a successful year and future.
Opportunities in 2023
Ended Group Fitness program at the end of the year, which opens over 10,000 sq. ft. to enhance member experience
Changed the membership structure from al-la-carte ($20-65) to Home ($20) and Unlimited ($30)
Material Operational Changes:
Changed insurance carrier to get a lower ongoing rate – incurred a one-time expense
Additional operational expenses due to the end of the year and holiday season
Elevated three key staff members – Increased pay and two moved to salary
Financial Summary
During the fourth quarter, the team instituted several key changes. While this sets both Idaho Fitness Factory and the fund up for long term success, there was a short-term impact on the P&L. While returns dropped slightly in the fourth quarter because of these changes, it allows IFF and the Fund to start the year off on the right note and lays the foundation for a successful year and future.
Opportunities in 2023
Ended Group Fitness program at the end of the year, which opens over 10,000 sq. ft. to enhance member experience
Changed the membership structure from al-la-carte ($20-65) to Home ($20) and Unlimited ($30)
Material Operational Changes:
Changed insurance carrier to get a lower ongoing rate – incurred a one-time expense
Additional operational expenses due to the end of the year and holiday season
Elevated three key staff members – Increased pay and two moved to salary
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
18,837
Total members
18,837
Total members
8
Total locations
8
Total locations
72,458
Total square feet
72,458
Total square feet
2,355
Average members per location
2,355
Average members per location
$156K
Average revenue per location
$156K
Average revenue per location
$1.25M
Total revenue Q3 2023
$1.25M
Total revenue Q3 2023
18,837
Total members
8
Total locations
72,458
Total square feet
2,355
Average members per location
$156K
Average revenue per location
$1.25M
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.