Quarterly Report
Q3 2023
Dear Investors,
July marks one year since we launched the Alturas Business Fund and acquired Idaho Fitness Factory. It’s been an amazing first year of operating the fund and business. Our first-year results confirm that we made a great decision.
Dear Investors,
July marks one year since we launched the Alturas Business Fund and acquired Idaho Fitness Factory. It’s been an amazing first year of operating the fund and business. Our first-year results confirm that we made a great decision.
Dear Investors,
July marks one year since we launched the Alturas Business Fund and acquired Idaho Fitness Factory. It’s been an amazing first year of operating the fund and business. Our first-year results confirm that we made a great decision.
Latest Quarter 2023
15.69%
Average Realized return Q3
Latest Quarter 2023
15.69%
Average Realized return Q3
Latest Quarter 2023
15.69%
Average Realized return Q3
Latest Quarter 2023
22.63%
Average Realized return since inception
Latest Quarter 2023
22.63%
Average realized return
Latest Quarter 2023
22.63%
Average Realized return since inception
Latest Quarter 2023
$189,525
Realized Net income Q3
Latest Quarter 2023
$189,525
Realized Net income Q3
Latest Quarter 2023
$189,525
Realized Net income Q3
We set out to achieve 15-19% returns and we have delivered on this expectation. Our underwriting of the business turned out to be reasonably accurate – which speaks to the predictability of the operations of the business, notwithstanding it’s seasonality. Overall, we feel very fortunate to own Idaho Fitness Factory – in most ways, it’s an even better business than we expected. The real work will be in the expansion – to see if we can maintain our operational excellence as we expand to new locations in the state and hopefully, across the region.
Returns are noticeably lower this quarter than last quarter. Our membership levels peak during the spring months, and they fall over the summer until the winter fitness surge. Overall, we are down about 230 paying members since our March peak. We expect this seasonality so it’s predictable at some level. We are working to soften the financial impact of the lower members during the summer and fall.
We are committed to expanding the number of locations of the gym. We are in final negotiations on a lease in a grocery anchored retail center in south Boise and have a signed LOI for land to build another location in Nampa. Although we have other expansion opportunities, we don’t want to get ahead of ourselves. Slow growth early on will pay dividends as we look to expand more rapidly in the future.
We are working hard to discover the next acquisition opportunity for the fund. We have looked at dozens of potential companies this year and have taken five through various phases of underwriting. Currently, we have a few promising companies that we are looking at. For the most part, deals are coming to us. Even modest investments in marketing will result in more deal flow for us. This makes us feel optimistic that we will find more quality leads in the coming months.
Thank you for your continued partnership. It’s through partnership that we find success, and we look forward to continued growth in the future with you.
Sincerely,
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
We set out to achieve 15-19% returns and we have delivered on this expectation. Our underwriting of the business turned out to be reasonably accurate – which speaks to the predictability of the operations of the business, notwithstanding it’s seasonality. Overall, we feel very fortunate to own Idaho Fitness Factory – in most ways, it’s an even better business than we expected. The real work will be in the expansion – to see if we can maintain our operational excellence as we expand to new locations in the state and hopefully, across the region.
Returns are noticeably lower this quarter than last quarter. Our membership levels peak during the spring months, and they fall over the summer until the winter fitness surge. Overall, we are down about 230 paying members since our March peak. We expect this seasonality so it’s predictable at some level. We are working to soften the financial impact of the lower members during the summer and fall.
We are committed to expanding the number of locations of the gym. We are in final negotiations on a lease in a grocery anchored retail center in south Boise and have a signed LOI for land to build another location in Nampa. Although we have other expansion opportunities, we don’t want to get ahead of ourselves. Slow growth early on will pay dividends as we look to expand more rapidly in the future.
We are working hard to discover the next acquisition opportunity for the fund. We have looked at dozens of potential companies this year and have taken five through various phases of underwriting. Currently, we have a few promising companies that we are looking at. For the most part, deals are coming to us. Even modest investments in marketing will result in more deal flow for us. This makes us feel optimistic that we will find more quality leads in the coming months.
Thank you for your continued partnership. It’s through partnership that we find success, and we look forward to continued growth in the future with you.
Sincerely,
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
We set out to achieve 15-19% returns and we have delivered on this expectation. Our underwriting of the business turned out to be reasonably accurate – which speaks to the predictability of the operations of the business, notwithstanding it’s seasonality. Overall, we feel very fortunate to own Idaho Fitness Factory – in most ways, it’s an even better business than we expected. The real work will be in the expansion – to see if we can maintain our operational excellence as we expand to new locations in the state and hopefully, across the region.
Returns are noticeably lower this quarter than last quarter. Our membership levels peak during the spring months, and they fall over the summer until the winter fitness surge. Overall, we are down about 230 paying members since our March peak. We expect this seasonality so it’s predictable at some level. We are working to soften the financial impact of the lower members during the summer and fall.
We are committed to expanding the number of locations of the gym. We are in final negotiations on a lease in a grocery anchored retail center in south Boise and have a signed LOI for land to build another location in Nampa. Although we have other expansion opportunities, we don’t want to get ahead of ourselves. Slow growth early on will pay dividends as we look to expand more rapidly in the future.
We are working hard to discover the next acquisition opportunity for the fund. We have looked at dozens of potential companies this year and have taken five through various phases of underwriting. Currently, we have a few promising companies that we are looking at. For the most part, deals are coming to us. Even modest investments in marketing will result in more deal flow for us. This makes us feel optimistic that we will find more quality leads in the coming months.
Thank you for your continued partnership. It’s through partnership that we find success, and we look forward to continued growth in the future with you.
Sincerely,
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Key Numbers
Key Numbers
Key Numbers
19.51%
Average Realized return Q2
19.51%
Average Realized return Q2
19.51%
Average Realized return Q2
24.38%
Average Realized return since inception
24.38%
Average realized return
24.38%
Average Realized return since inception
$223k
Realized Net income Q3
$223k
Realized Net income Q3
$223k
Realized Net income Q3
$1,088.53
Unit Price
$1,088.53
Unit Price
$1,088.53
Unit Price
$925k
Realized Net income since inception
$925k
Realized Net income since inception
$925k
Realized Net income since inception
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 2023 are unaudited as of the date of this report.
Realized Returns
*Average annualized investor return since inception as of respective year/period end.
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
$3.21M
Total Capital Raised
$3.21M
Total Capital Raised
$3.21M
Total Capital Raised
$648K
Investor distributions since inception
$648K
Average realized return
$648K
Investor distributions since inception
24
Number of investors
24
Number of investors
24
Number of investors
90.7%
Current reinvestment rate
90.7%
Current reinvestment rate
90.7%
Current reinvestment rate
$1,000
Unit price
$1,000
Unit price
$1,000
Unit price
$8.41M
Assets under management
$8.41M
Assets under management
$8.41M
Assets under management
*Distributions since inception includes Q2-2023 distributions paid on 7/31/2023.
Idaho Fitness Factory
Idaho Fitness Factory continues to perform well despite experiencing the initial impact of summer seasonality. While we have lost approximately 230 members, revenue remained consistent month-to-month during the second quarter. Although no major operational changes were made, our simplified membership structure continues to drive our dollar value per customer up. This helped mitigate the seasonal impact seen industry wide. Our two key initiatives heading into the quarter to increase member retention are also proving to be effective. We launched the Idaho Fitness Factory App in May. This provides several benefits to our members including a digital key card, direct messaging to staff, and fitness and health tracking. The personal training program continues to grow with five trainers operating throughout our eight locations. While the program is in its early stages, the response has been positive and we’ve seen increasing revenue. The second quarter showed consistent revenue and the successful rollout of two new programs. As we look to the third quarter, our key initiative is shifting to scaling the business through new locations. However, our focus remains on operating our current locations and providing an outstanding experience for our members.
Idaho Fitness Factory
Idaho Fitness Factory continues to perform well despite experiencing the initial impact of summer seasonality. While we have lost approximately 230 members, revenue remained consistent month-to-month during the second quarter. Although no major operational changes were made, our simplified membership structure continues to drive our dollar value per customer up. This helped mitigate the seasonal impact seen industry wide. Our two key initiatives heading into the quarter to increase member retention are also proving to be effective. We launched the Idaho Fitness Factory App in May. This provides several benefits to our members including a digital key card, direct messaging to staff, and fitness and health tracking. The personal training program continues to grow with five trainers operating throughout our eight locations. While the program is in its early stages, the response has been positive and we’ve seen increasing revenue. The second quarter showed consistent revenue and the successful rollout of two new programs. As we look to the third quarter, our key initiative is shifting to scaling the business through new locations. However, our focus remains on operating our current locations and providing an outstanding experience for our members.
Idaho Fitness Factory
Idaho Fitness Factory continues to perform well despite experiencing the initial impact of summer seasonality. While we have lost approximately 230 members, revenue remained consistent month-to-month during the second quarter. Although no major operational changes were made, our simplified membership structure continues to drive our dollar value per customer up. This helped mitigate the seasonal impact seen industry wide. Our two key initiatives heading into the quarter to increase member retention are also proving to be effective. We launched the Idaho Fitness Factory App in May. This provides several benefits to our members including a digital key card, direct messaging to staff, and fitness and health tracking. The personal training program continues to grow with five trainers operating throughout our eight locations. While the program is in its early stages, the response has been positive and we’ve seen increasing revenue. The second quarter showed consistent revenue and the successful rollout of two new programs. As we look to the third quarter, our key initiative is shifting to scaling the business through new locations. However, our focus remains on operating our current locations and providing an outstanding experience for our members.
Financial Summary
After introducing several operational changes in Q1, this quarter was focused on stabilizing implementation and analyzing how the changes affected the business. Members continued to have a positive reaction to the simplified pricing structure instituted in January of this year, and facility and equipment improvements enhanced the member experience.
Opportunities in 2023
Add new location in Treasure Valley
Upgrades to existing clubs
Financial Summary
After introducing several operational changes in Q1, this quarter was focused on stabilizing implementation and analyzing how the changes affected the business. Members continued to have a positive reaction to the simplified pricing structure instituted in January of this year, and facility and equipment improvements enhanced the member experience.
Opportunities in 2023
Add new location in Treasure Valley
Upgrades to existing clubs
Financial Summary
After introducing several operational changes in Q1, this quarter was focused on stabilizing implementation and analyzing how the changes affected the business. Members continued to have a positive reaction to the simplified pricing structure instituted in January of this year, and facility and equipment improvements enhanced the member experience.
Opportunities in 2023
Add new location in Treasure Valley
Upgrades to existing clubs
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
19,296
Total members
19,296
Total members
8
Total locations
8
Total locations
72,458
Total square feet
72,458
Total square feet
2,412
Average members per location
2,412
Average members per location
$165K
Average revenue per location
$165K
Average revenue per location
$1.32M
Total revenue Q3 2023
$1.32M
Total revenue Q3 2023
19,296
Total members
8
Total locations
72,458
Total square feet
2,412
Average members per location
$165K
Average revenue per location
$1.32M
Total revenue Q3 2023
Member Growth Analysis
As expected, the total number of “Grandfathered” members has continued to drop, while new “Home Club” and “Unlimited” members continue to increase. At the end of Q1, there were 4,075 Grandfathered members, each paying a base monthly membership of $15 or $25. The canceled grandfathered members are being replaced by members on the new pricing plan, with a base monthly membership of $20 or $30. We are confident that this dollar value increase will drive revenue growth year over year.
Member Growth Analysis
As expected, the total number of “Grandfathered” members has continued to drop, while new “Home Club” and “Unlimited” members continue to increase. At the end of Q1, there were 4,075 Grandfathered members, each paying a base monthly membership of $15 or $25. The canceled grandfathered members are being replaced by members on the new pricing plan, with a base monthly membership of $20 or $30. We are confident that this dollar value increase will drive revenue growth year over year.
Member Growth Analysis
As expected, the total number of “Grandfathered” members has continued to drop, while new “Home Club” and “Unlimited” members continue to increase. At the end of Q1, there were 4,075 Grandfathered members, each paying a base monthly membership of $15 or $25. The canceled grandfathered members are being replaced by members on the new pricing plan, with a base monthly membership of $20 or $30. We are confident that this dollar value increase will drive revenue growth year over year.
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.