Quarterly Report
Q3 2024
Dear Investors,
The third quarter of 2024 was a period of heavy investment at Idaho Fitness Factory, the only business currently in the fund. Between the equipment and tenant improvement work at 5 legacy clubs and the continued work on location number 10, the fund experienced a drop in realized returns, as anticipated, to 3.30%. However, these investments position Idaho Fitness Factory, and the fund, for a strong Q4 of 2024 and success in 2025 and beyond.
The ninth location at Overland and Five Mile, continues to grow and experienced its first net positive month. This is a significant milestone as it is several months ahead of schedule and informs our future expansion efforts.
The 5 legacy clubs we invested in received not only cosmetic upgrades (including new carpet, paint, etc.) but also new equipment. This laid the foundation for us to be able to increase our new member pricing to $25 and $35 for Home club and Unlimited, respectively. We also standardized pricing in October (Q4), and both changes are having a significant positive impact on the business. This also aligns strongly with our goal of continuing to improve our offering to customers.
Expansion also remains top of mind, and locations 11 and 12 are both in the works with our partners at Alturas Capital Partners (ACP) and the Alturas Real Estate Fund (AREF). ACP and IFF are moving forward with building out a former Walgreens in North Meridian, and a new construction in West Meridian. Both of these locations are slated to open in 2025 and will have a major positive impact as we continue to strengthen our position in the Treasure Valley and begin looking to other metropolitan areas.
In addition to strong growth at IFF, we also put two other businesses under contract this quarter and are moving forward with an expected close date in early December. While the industry is regulated, we have a strong operating partner and have negotiated favorable terms to ensure a smooth transition and continued financial performance
As many of you know, we are reaching out to current and potential investors to finalize our capital call and appreciate your continued partnership.
If you are interested, please complete our investment offering survey or contact Lucas or Blake.
Thank you for your continued support,
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
The third quarter of 2024 was a period of heavy investment at Idaho Fitness Factory, the only business currently in the fund. Between the equipment and tenant improvement work at 5 legacy clubs and the continued work on location number 10, the fund experienced a drop in realized returns, as anticipated, to 3.30%. However, these investments position Idaho Fitness Factory, and the fund, for a strong Q4 of 2024 and success in 2025 and beyond.
The ninth location at Overland and Five Mile, continues to grow and experienced its first net positive month. This is a significant milestone as it is several months ahead of schedule and informs our future expansion efforts.
The 5 legacy clubs we invested in received not only cosmetic upgrades (including new carpet, paint, etc.) but also new equipment. This laid the foundation for us to be able to increase our new member pricing to $25 and $35 for Home club and Unlimited, respectively. We also standardized pricing in October (Q4), and both changes are having a significant positive impact on the business. This also aligns strongly with our goal of continuing to improve our offering to customers.
Expansion also remains top of mind, and locations 11 and 12 are both in the works with our partners at Alturas Capital Partners (ACP) and the Alturas Real Estate Fund (AREF). ACP and IFF are moving forward with building out a former Walgreens in North Meridian, and a new construction in West Meridian. Both of these locations are slated to open in 2025 and will have a major positive impact as we continue to strengthen our position in the Treasure Valley and begin looking to other metropolitan areas.
In addition to strong growth at IFF, we also put two other businesses under contract this quarter and are moving forward with an expected close date in early December. While the industry is regulated, we have a strong operating partner and have negotiated favorable terms to ensure a smooth transition and continued financial performance
As many of you know, we are reaching out to current and potential investors to finalize our capital call and appreciate your continued partnership.
If you are interested, please complete our investment offering survey or contact Lucas or Blake.
Thank you for your continued support,
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Dear Investors,
The third quarter of 2024 was a period of heavy investment at Idaho Fitness Factory, the only business currently in the fund. Between the equipment and tenant improvement work at 5 legacy clubs and the continued work on location number 10, the fund experienced a drop in realized returns, as anticipated, to 3.30%. However, these investments position Idaho Fitness Factory, and the fund, for a strong Q4 of 2024 and success in 2025 and beyond.
The ninth location at Overland and Five Mile, continues to grow and experienced its first net positive month. This is a significant milestone as it is several months ahead of schedule and informs our future expansion efforts.
The 5 legacy clubs we invested in received not only cosmetic upgrades (including new carpet, paint, etc.) but also new equipment. This laid the foundation for us to be able to increase our new member pricing to $25 and $35 for Home club and Unlimited, respectively. We also standardized pricing in October (Q4), and both changes are having a significant positive impact on the business. This also aligns strongly with our goal of continuing to improve our offering to customers.
Expansion also remains top of mind, and locations 11 and 12 are both in the works with our partners at Alturas Capital Partners (ACP) and the Alturas Real Estate Fund (AREF). ACP and IFF are moving forward with building out a former Walgreens in North Meridian, and a new construction in West Meridian. Both of these locations are slated to open in 2025 and will have a major positive impact as we continue to strengthen our position in the Treasure Valley and begin looking to other metropolitan areas.
In addition to strong growth at IFF, we also put two other businesses under contract this quarter and are moving forward with an expected close date in early December. While the industry is regulated, we have a strong operating partner and have negotiated favorable terms to ensure a smooth transition and continued financial performance
As many of you know, we are reaching out to current and potential investors to finalize our capital call and appreciate your continued partnership.
If you are interested, please complete our investment offering survey or contact Lucas or Blake.
Thank you for your continued support,
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
Big News for Q3
Big News for Q3
Big News for Q3
#9 Overland
First net positive month this quarter
Expenses are lower than we projected due to operational efficiencies which is driving strong financial performance
Redlight and saunas appear to be having a material affect on conversion rates
#9 Overland
First net positive month this quarter
Expenses are lower than we projected due to operational efficiencies which is driving strong financial performance
Redlight and saunas appear to be having a material affect on conversion rates
#9 Overland
First net positive month this quarter
Expenses are lower than we projected due to operational efficiencies which is driving strong financial performance
Redlight and saunas appear to be having a material affect on conversion rates
#10 Victory and Eagle
Opening in November
On budget thanks to a strong partnership with Alturas Construction
Will be our largest club and we continue to experiment to perfect our model
#10 Victory and Eagle
Opening in November
On budget thanks to a strong partnership with Alturas Construction
Will be our largest club and we continue to experiment to perfect our model
#10 Victory and Eagle
Opening in November
On budget thanks to a strong partnership with Alturas Construction
Will be our largest club and we continue to experiment to perfect our model
#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
#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
#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 Q2 of 2025
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 Q2 of 2025
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 Q2 of 2025
13,500~ sqft., our second largest location
Arizona Locations
Negotiated favorable terms and simplified the deal
Closing in early December
Current owners are helping to transition through Q2 of 2025
Arizona Locations
Negotiated favorable terms and simplified the deal
Closing in early December
Current owners are helping to transition through Q2 of 2025
Arizona Locations
Negotiated favorable terms and simplified the deal
Closing in early December
Current owners are helping to transition through Q2 of 2025
California Location
Strong financial performance in 2024 in line with 2023.
Continue to move forward for a Dec. close, but there are a few outstanding licensing issues.
Strong team in place with limited involvement from the current owner.
California Location
Strong financial performance in 2024 in line with 2023.
Continue to move forward for a Dec. close, but there are a few outstanding licensing issues.
Strong team in place with limited involvement from the current owner.
California Location
Strong financial performance in 2024 in line with 2023.
Continue to move forward for a Dec. close, but there are a few outstanding licensing issues.
Strong team in place with limited involvement from the current owner.
Key Numbers
Key Numbers
Key Numbers
3.49%
Average Realized return Q3
3.49%
Average Realized return Q3
3.49%
Average Realized return Q3
18.79%
Average Realized return since inception
18.79%
Average Realized return since inception
18.79%
Average realized return
$66.27K
Realized Net income Q3
$66.27K
Realized Net income Q3
$66.27K
Realized Net income Q3
$1,088.53
Unit Price
$1,088.53
Unit Price
$1,088.53
Unit Price
$1.94M
Realized Net income since inception
$1.94M
Realized Net income since inception
$1.94M
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
Total Returns
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
$5.32M
Total Capital Raised
$5.32M
Total Capital Raised
$5.32M
Total Capital Raised
$1.36M
Investor distributions since inception
$1.36M
Investor distributions since inception
$1.36M
Average realized return
29
Number of investors
29
Number of investors
29
Number of investors
85.17%
Current reinvestment rate
85.17%
Current reinvestment rate
85.17%
Current reinvestment rate
$1,088
Unit price
$1,088
Unit price
$1,088
Unit price
$12.65M
Assets under management
$12.65M
Assets under management
$12.65M
Assets under management
*Distributions since inception includes Q3 2024 distributions paid on 09/30/2024.
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.
Idaho Fitness Factory
In Q3, IFF made key facility improvements and adjusted membership pricing, reinforcing our commitment to member satisfaction and operational success. These changes are set to drive growth and profitability. Below are the highlights:
Facility Upgrades
Investment in Locations: We allocated over $700,000 to upgrade five locations (Cole, State, Fairview, Caldwell, and Chinden) with new equipment, carpets, and other enhancements, aiming to boost member experience and retention. Red Light Therapy: We introduced red light therapy at all locations, providing an innovative wellness option to improve member recovery and set IFF apart from competitors. Membership Pricing Adjustments Price Increase: A phased $5 increase raised Home Club memberships from $20 to $25 and Unlimited memberships from $30 to $35. This update, completed by August 20, had minimal impact on new membership sign-ups. Q3 saw IFF reach new milestones with facility investments and pricing updates, reinforcing our commitment to providing high-quality, value-driven fitness experiences. These initiatives are setting IFF up for sustained growth and success.
Idaho Fitness Factory
In Q3, IFF made key facility improvements and adjusted membership pricing, reinforcing our commitment to member satisfaction and operational success. These changes are set to drive growth and profitability. Below are the highlights:
Idaho Fitness Factory
In Q3, IFF made key facility improvements and adjusted membership pricing, reinforcing our commitment to member satisfaction and operational success. These changes are set to drive growth and profitability. Below are the highlights:
Financial Summary
In Q3, IFF made key investments to enhance gym quality, updating facilities and equipment to attract and retain members. Highlights include:
1. One-Time Equipment Write-Off
We upgraded equipment at 5 legacy clubs, resulting in a $226,000 one-time write-off for assets replaced early. This proactive investment supports long-term revenue growth by prioritizing member experience.
2. Strong Performance at Overland
Our 9th location, Overland, exceeded expectations, generating positive net income for two consecutive months in Q3. This reinforces our brand’s market presence and profitability.
3. Revenue Growth and Impact
With over 20,000 members now at the $25/$35 price points, we expect significant revenue growth with minimal cost increases, driving improved financial performance and supporting strategic expansion.
These steps enhance IFF’s profitability potential and reflect our commitment to long-term value for investors.
Financial Summary
In Q3, IFF made key investments to enhance gym quality, updating facilities and equipment to attract and retain members. Highlights include:
1. One-Time Equipment Write-Off
We upgraded equipment at 5 legacy clubs, resulting in a $226,000 one-time write-off for assets replaced early. This proactive investment supports long-term revenue growth by prioritizing member experience.
2. Strong Performance at Overland
Our 9th location, Overland, exceeded expectations, generating positive net income for two consecutive months in Q3. This reinforces our brand’s market presence and profitability.
3. Revenue Growth and Impact
With over 20,000 members now at the $25/$35 price points, we expect significant revenue growth with minimal cost increases, driving improved financial performance and supporting strategic expansion.
These steps enhance IFF’s profitability potential and reflect our commitment to long-term value for investors.
Financial Summary
In Q3, IFF made key investments to enhance gym quality, updating facilities and equipment to attract and retain members. Highlights include:
1. One-Time Equipment Write-Off
We upgraded equipment at 5 legacy clubs, resulting in a $226,000 one-time write-off for assets replaced early. This proactive investment supports long-term revenue growth by prioritizing member experience.
2. Strong Performance at Overland
Our 9th location, Overland, exceeded expectations, generating positive net income for two consecutive months in Q3. This reinforces our brand’s market presence and profitability.
3. Revenue Growth and Impact
With over 20,000 members now at the $25/$35 price points, we expect significant revenue growth with minimal cost increases, driving improved financial performance and supporting strategic expansion.
These steps enhance IFF’s profitability potential and reflect our commitment to long-term value for investors.
Summary
Summary
(in thousands)
(in thousands)
Revenue
Revenue
Facilities Expense
Facilities Expense
Payroll Expense
Payroll Expense
Sales and Marketing Expense
Sales and Marketing Expense
G&A Expense
G&A Expense
Total Expenses
Total Expenses
Net Operating Income
Net Operating Income
Other Income
Other Income
Interest Expense
Interest Expense
Dep/Amort Expense
Dep/Amort Expense
ASC 842
ASC 842
Net Income
Net Income
Principle Paydown
Principle Paydown
Capex
Capex
Q4 2023
Q4 2023
$1,371
$1,371
434
434
310
310
117
117
149
149
1,010
1,010
362
362
(67)
(67)
64
64
466
466
163
163
(398)
(398)
527
527
433
433
Q1 2024
Q1 2024
$1,528
$1,528
471
471
334
334
106
106
157
157
1,068
1,068
460
460
0
0
52
52
104
104
30
30
274
274
184
184
$4
$4
Q2 2024
Q2 2024
$1,498
$1,498
474
474
339
339
85
85
167
167
1,065
1,065
433
433
0
0
53
53
104
104
26
26
250
250
186
186
$0
$0
Q3 2024
Q3 2024
$1,562
$1,562
493
493
353
353
100
100
174
174
1,121
1,121
420
420
(226)
(226)
58
58
98
98
20
20
39
39
188
188
$695
$695
Total
Total
$5,959
$5,959
1,872
1,872
1,336
1,336
408
408
647
647
4,284
4,284
1,675
1,675
(293)
(293)
227
227
772
772
239
239
165
165
1,085
1,085
$1,132
$1,132
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
20,841
Total members
20,841
Total members
(51)
Net member change
(51)
Net member change
82,458
Total square feet
82,458
Total square feet
2,315
Average members per location
2,315
Average members per location
$173,569
Average revenue per location
$173,569
Average revenue per location
$1,562,126
Total revenue Q3 2024
$1,562,126
Total revenue Q3 2024
20,841
Total members
(51)
Net member change
82,458
Total square feet
2,315
Average members per location
$173,569
Average revenue per location
$1,562,126
Total revenue Q3 2024
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.