Quarterly Report
Q2 2024
Dear Investors,
It was another solid quarter for the Alturas Business Fund; quarterly realized returns were 17.60%. The single business in the fund, Idaho Fitness Factory, continues to perform as expected. In fact, our 9th location, Overland, has higher revenues and lower expenses at this point than we were anticipating – putting it ahead of projections and giving us confidence as we open new gyms across our market.
We are currently in a heavy investment period of the business. We are in the middle of the tenant improvement work of our 10th location which opens in Q4. We are investing nearly $1.25 million in new equipment across 5 gyms existing gyms. We negotiated a renewal on our Chinden location. We are doing small remodels on 6 locations as the old equipment is swapped for new equipment. We have land under contract to build our 11th location, and we are working with our sister company, Alturas Real Estate Fund to lease space in a retail center they own.
Even more exciting is that we are deep in diligence on a new business roll-up strategy. We are working hard to put two businesses under contract in Q3 that could close as early as Q4 2024. This roll-up strategy looks great, but we are doing our homework to make sure we really understand the industry and the complexities of business model. The good news is that we have a partner in the deal who is an industry expert, who already owns three businesses in the space. He and his team are turning out to be great partners as we move down the acquisition path.
If things go as expected, we should be able to accept new money from existing investors and bring other investors into the Alturas Business Fund with these new acquisitions.
If you are interested, please complete our investment offering survey or contact Lucas or Blake.
Thank you for your continued support,
Blake Hansen
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
It was another solid quarter for the Alturas Business Fund; quarterly realized returns were 17.60%. The single business in the fund, Idaho Fitness Factory, continues to perform as expected. In fact, our 9th location, Overland, has higher revenues and lower expenses at this point than we were anticipating – putting it ahead of projections and giving us confidence as we open new gyms across our market.
We are currently in a heavy investment period of the business. We are in the middle of the tenant improvement work of our 10th location which opens in Q4. We are investing nearly $1.25 million in new equipment across 5 gyms existing gyms. We negotiated a renewal on our Chinden location. We are doing small remodels on 6 locations as the old equipment is swapped for new equipment. We have land under contract to build our 11th location, and we are working with our sister company, Alturas Real Estate Fund to lease space in a retail center they own.
Even more exciting is that we are deep in diligence on a new business roll-up strategy. We are working hard to put two businesses under contract in Q3 that could close as early as Q4 2024. This roll-up strategy looks great, but we are doing our homework to make sure we really understand the industry and the complexities of business model. The good news is that we have a partner in the deal who is an industry expert, who already owns three businesses in the space. He and his team are turning out to be great partners as we move down the acquisition path.
If things go as expected, we should be able to accept new money from existing investors and bring other investors into the Alturas Business Fund with these new acquisitions.
If you are interested, please complete our investment offering survey or contact Lucas or Blake.
Thank you for your continued support,
Blake Hansen
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
Dear Investors,
It was another solid quarter for the Alturas Business Fund; quarterly realized returns were 17.60%. The single business in the fund, Idaho Fitness Factory, continues to perform as expected. In fact, our 9th location, Overland, has higher revenues and lower expenses at this point than we were anticipating – putting it ahead of projections and giving us confidence as we open new gyms across our market.
We are currently in a heavy investment period of the business. We are in the middle of the tenant improvement work of our 10th location which opens in Q4. We are investing nearly $1.25 million in new equipment across 5 gyms existing gyms. We negotiated a renewal on our Chinden location. We are doing small remodels on 6 locations as the old equipment is swapped for new equipment. We have land under contract to build our 11th location, and we are working with our sister company, Alturas Real Estate Fund to lease space in a retail center they own.
Even more exciting is that we are deep in diligence on a new business roll-up strategy. We are working hard to put two businesses under contract in Q3 that could close as early as Q4 2024. This roll-up strategy looks great, but we are doing our homework to make sure we really understand the industry and the complexities of business model. The good news is that we have a partner in the deal who is an industry expert, who already owns three businesses in the space. He and his team are turning out to be great partners as we move down the acquisition path.
If things go as expected, we should be able to accept new money from existing investors and bring other investors into the Alturas Business Fund with these new acquisitions.
If you are interested, please complete our investment offering survey or contact Lucas or Blake.
Thank you for your continued support,
Blake Hansen
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Big News for Q2
Big News for Q2
Big News for Q2
Expansion
Idaho Fitness Factory
Expansion
Idaho Fitness Factory
#9 OVERLAND
Opened December 2023 in South Boise
Revenue continues to outpace expectations with strong signups even during the summer months
Expenses are lower than we projected due to operational efficiencies
Introduced red light therapy which will drive increased conversion to Unlimited
Big News
#9 OVERLAND
Opened December 2023 in South Boise
Revenue continues to outpace expectations with strong signups even during the summer months
Expenses are lower than we projected due to operational efficiencies
Introduced red light therapy which will drive increased conversion to Unlimited
Big News
#9 OVERLAND
Opened December 2023 in South Boise
Revenue continues to outpace expectations with strong signups even during the summer months
Expenses are lower than we projected due to operational efficiencies
Introduced red light therapy which will drive increased conversion to Unlimited
Big News
#10 VICTORY AND EAGLE
Scheduled opening October 2024 in South Meridian
On budget thanks to a strong partnership with Alturas Construction
Strong presale interest due to an under-served area
Big News
#10 VICTORY AND EAGLE
Scheduled opening October 2024 in South Meridian
On budget thanks to a strong partnership with Alturas Construction
Strong presale interest due to an under-served area
#10 VICTORY AND EAGLE
Scheduled opening October 2024 in South Meridian
On budget thanks to a strong partnership with Alturas Construction
Strong presale interest due to an under-served area
Big News
#11 TEN MILE
New Build in West Meridian
Under contract with construction potentially beginning in Q4 2024 opening late 2025
Partnership with Alturas Capital Partner
Big News
#11 TEN MILE
New Build in West Meridian
Under contract with construction potentially beginning in Q4 2024 opening late 2025
Partnership with Alturas Capital Partner
#11 TEN MILE
New Build in West Meridian
Under contract with construction potentially beginning in Q4 2024 opening late 2025
Partnership with Alturas Capital Partner
Big News
#12 EAGLE ROAD
Former pharmacy on one of the busiest corners in the Treasure Valley
In a retail center owned by Alturas Capital Partners
Goal of opening in Q1 of 2025 in South Eagle
13,500~ sqft., our second largest location
Big News
#12 EAGLE ROAD
Former pharmacy on one of the busiest corners in the Treasure Valley
In a retail center owned by Alturas Capital Partners
Goal of opening in Q1 of 2025 in South Eagle
13,500~ sqft., our second largest location
#12 EAGLE ROAD
Former pharmacy on one of the busiest corners in the Treasure Valley
In a retail center owned by Alturas Capital Partners
Goal of opening in Q1 of 2025 in South Eagle
13,500~ sqft., our second largest location
Big News
Upcoming Acquisitions
Vocational Schools
Upcoming Acquisitions
Vocational Schools
Working on putting multiple schools under contract in Q3
Aim to close in Q4 of 2024
Partnership with strong operating partner and team
Traditional roll up strategy
With plans to be in dozens of states
Plan to raise approximately $7.5 million from investors
Potential locations in Arizona, California and Texas
Working on putting multiple schools under contract in Q3
Aim to close in Q4 of 2024
Partnership with strong operating partner and team
Traditional roll up strategy
With plans to be in dozens of states
Key Numbers
Key Numbers
Key Numbers
17.60%
Average Realized Return
17.60%
Average Realized Return
17.60%
Average Realized Return
20.36%
Average realized return since inception
20.36%
Average realized return
20.36%
Average realized return since inception
$290,626
Realized Net Income
$290,626
Realized Net Income
$290,626
Realized Net Income
$1,088.53
Unit Price
$1,088.53
Unit Price
$1,088.53
Unit Price
$1,875,275
Realized net income since inception
$1,875,275
Realized net income since inception
$1,875,275
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 includes realized gains and losses and excludes unrealized gains and losses recorded during the period. Financial information herein related to the quarters ended in 2024 are unaudited as of the date of this report.
Realized Returns
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
$4.61M
Total Capital Raised
$4.61M
Total Capital Raised
$4.61M
Total Capital Raised
$1.3M
Investor distribution since inception
$1.3M
Average realized return
$1.3M
Investor distribution since inception
27
Number of investors
27
Number of investors
27
Number of investors
88.61%
Current reinvestment rate
88.61%
Current reinvestment rate
88.61%
Current reinvestment rate
$1,088
Unit price
$1,088
Unit price
$1,088
Unit price
$9.1M
Assets under management
$9.1M
Assets under management
$9.1M
Assets under management
*Distributions since inception includes Q2 2024 distributions paid on 06/30/2024.
Idaho Fitness Factory
Idaho Fitness Factory had a strong Q2. The Overland location continues to outperform our projections. In addition to the revenue projections being higher than anticipated, expenses were also lower than expected. Because of this, our net income is twice as good as we anticipated, and we are very close to hitting break even. We expect to be profitable in Q3. Beyond Overland’s performance, we are anticipating a Q3 opening for the new Victory and Eagle location, for which we signed a lease in Q1 of 2024. Victory and Eagle, the former RiteAid location, is in south Meridian and spans just over 14,000 sqft. We are confident that this new location will flourish due to its advantageous geographical location, low competition in the area, high population numbers, and overall prospective growth in housing in the surrounding area. Alongside the expansion of new locations, Idaho Fitness Factory also added a new amenity to existing clubs: Red Light Therapy. This new amenity is not only uncommon in other gyms, making it a strong value proposition to new and existing members, but also a differentiating feature compared to our competitors in the Treasure Valley. We will also be upgrading the equipment at several locations in Q3. Concurrently with the equipment upgrades, we plan to increase prices and standardize our memberships. This year, we are not only continuing to expand but are also focused on providing the highest quality gym experience for the best price. The new amenities, club expansions, and continuous quality improvements at Idaho Fitness Factory will set us up for success moving forward.
Idaho Fitness Factory
Idaho Fitness Factory had a strong Q2. The Overland location continues to outperform our projections. In addition to the revenue projections being higher than anticipated, expenses were also lower than expected. Because of this, our net income is twice as good as we anticipated, and we are very close to hitting break even. We expect to be profitable in Q3. Beyond Overland’s performance, we are anticipating a Q3 opening for the new Victory and Eagle location, for which we signed a lease in Q1 of 2024. Victory and Eagle, the former RiteAid location, is in south Meridian and spans just over 14,000 sqft. We are confident that this new location will flourish due to its advantageous geographical location, low competition in the area, high population numbers, and overall prospective growth in housing in the surrounding area. Alongside the expansion of new locations, Idaho Fitness Factory also added a new amenity to existing clubs: Red Light Therapy. This new amenity is not only uncommon in other gyms, making it a strong value proposition to new and existing members, but also a differentiating feature compared to our competitors in the Treasure Valley. We will also be upgrading the equipment at several locations in Q3. Concurrently with the equipment upgrades, we plan to increase prices and standardize our memberships. This year, we are not only continuing to expand but are also focused on providing the highest quality gym experience for the best price. The new amenities, club expansions, and continuous quality improvements at Idaho Fitness Factory will set us up for success moving forward.
Idaho Fitness Factory
Idaho Fitness Factory had a strong Q2. The Overland location continues to outperform our projections. In addition to the revenue projections being higher than anticipated, expenses were also lower than expected. Because of this, our net income is twice as good as we anticipated, and we are very close to hitting break even. We expect to be profitable in Q3. Beyond Overland’s performance, we are anticipating a Q3 opening for the new Victory and Eagle location, for which we signed a lease in Q1 of 2024. Victory and Eagle, the former RiteAid location, is in south Meridian and spans just over 14,000 sqft. We are confident that this new location will flourish due to its advantageous geographical location, low competition in the area, high population numbers, and overall prospective growth in housing in the surrounding area. Alongside the expansion of new locations, Idaho Fitness Factory also added a new amenity to existing clubs: Red Light Therapy. This new amenity is not only uncommon in other gyms, making it a strong value proposition to new and existing members, but also a differentiating feature compared to our competitors in the Treasure Valley. We will also be upgrading the equipment at several locations in Q3. Concurrently with the equipment upgrades, we plan to increase prices and standardize our memberships. This year, we are not only continuing to expand but are also focused on providing the highest quality gym experience for the best price. The new amenities, club expansions, and continuous quality improvements at Idaho Fitness Factory will set us up for success moving forward.
Financial Summary
Idaho Fitness Factory had another impressive quarter. While IFF did experience typical seasonality with lower total revenue, it was less dramatic than in years past. We attribute this to the continual improvement and updates at our current locations coupled with our expansion.
Overland, our 9th location dramatically outperformed our expectations in Q2 and is on the verge of breaking even and becoming profitable. While we overestimated costs, we’ve found operational efficiencies that helped keep costs low. Additionally, the ramp up continues to outpace our forecast. We are optimistic that with our equipment upgrades at 5 of our current locations and location #10 opening in South Boise later this year, Overland will continue to perform strongly.
In addition to Overland performing strongly, the original 8 locations had 5% higher revenue than we projected with significantly lower Sales & Marketing costs. This is in part to the continued increase in Home Club and Unlimited members at a higher price point and several locations hitting near historical highs. Both Nampa and Franklin had one of the strongest quarters in their history. Our expenses also came in lower in large part to us taking sales & marketing back in-house.
Q2 2024 was a solid quarter and lays the foundation for continued growth headed in Q3 and Q4 of 2024.
Financial Summary
Idaho Fitness Factory had another impressive quarter. While IFF did experience typical seasonality with lower total revenue, it was less dramatic than in years past. We attribute this to the continual improvement and updates at our current locations coupled with our expansion.
Overland, our 9th location dramatically outperformed our expectations in Q2 and is on the verge of breaking even and becoming profitable. While we overestimated costs, we’ve found operational efficiencies that helped keep costs low. Additionally, the ramp up continues to outpace our forecast. We are optimistic that with our equipment upgrades at 5 of our current locations and location #10 opening in South Boise later this year, Overland will continue to perform strongly.
In addition to Overland performing strongly, the original 8 locations had 5% higher revenue than we projected with significantly lower Sales & Marketing costs. This is in part to the continued increase in Home Club and Unlimited members at a higher price point and several locations hitting near historical highs. Both Nampa and Franklin had one of the strongest quarters in their history. Our expenses also came in lower in large part to us taking sales & marketing back in-house.
Q2 2024 was a solid quarter and lays the foundation for continued growth headed in Q3 and Q4 of 2024.
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
20,892
Total members
20,892
Total members
494
Net member change
494
Net member change
82,458
Total square feet
82,458
Total square feet
$1.49M
Total revenue Q2 2024
$1.49M
Total revenue Q2 2024
2,321
Average members per location
2,321
Average members per location
$166,481
Average revenue per location
$166,481
Average revenue per location
47.69%
Overall acceptance rate of unlimited
47.69%
Overall acceptance rate of unlimited
192
Membership increases from original 8 locations.
54.38%
Membership increases from original 8 locations.
50.60%
Quarterly conversion rate of home club to unlimited
50.60%
Quarterly conversion rate of home club to unlimited
578
Membership increases from Overland location.
54.38%
Membership increases from Overland location.
20,892
Total members
494
Net member change
82,458
Total square feet
$1.49M
Total revenue Q2 2024
2,321
Average members per location
$166,481
Average revenue per location
47.69%
Overall acceptance rate of unlimited
192
Membership increases from original 8 locations.
50.60%
Quarterly conversion rate of home club to unlimited
578
Membership increases from Overland location.
Member Growth Analysis
Home Club and Unlimited memberships continue to grow while Grandfathered slowly decrease. The Home Club and Unlimited membership growth continues to outpace the Grandfathered decrease which is positive.
Member Growth Analysis
Home Club and Unlimited memberships continue to grow while Grandfathered slowly decrease. The Home Club and Unlimited membership growth continues to outpace the Grandfathered decrease which is positive.
Member Growth Analysis
Home Club and Unlimited memberships continue to grow while Grandfathered slowly decrease. The Home Club and Unlimited membership growth continues to outpace the Grandfathered decrease which is positive.
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.