ALTURAS BUSINESS FUND
ALTURAS BUSINESS FUND
ALTURAS BUSINESS FUND
Quarterly Report
Q1 2025
The first quarter of 2025 was exciting for the Alturas Business Fund. With Idaho Fitness Factory continuing to perform very well and our first full quarter owning The Studio Academy of Beauty, ABF started the year off strong. Our realized return for the quarter of 16.45% shows the continued strength of IFF and the initial impact of stabilizing and transitioning TSAOB.
While there were no major changes at Idaho Fitness Factory in the first quarter, the 10th location continues to outperform our expectations. The Victory and Eagle location reached over 2,500 by the end of March, an increase of nearly 1,500 members since opening in November. This was our first pharmacy to gym conversion (former RiteAid) and it appears to be a model for us going forward. Our next location to open is also a former pharmacy (Walgreens) and we are optimistic about it’s potential performance.
The 11th location, at Eagle and Chinden, is on track to open in June of 2025 with several updates, including a new cardio layout, additional equipment, a new paint scheme, and improved locker rooms. We also broke ground on our first new construction building in the Meridian area for the 12th location. At 12,000, it is slightly smaller than the two most recent locations but the space is more efficiently utilized which allows us to maintain the same equipment package between locations. We anticipate opening this at the end of 2025.
The Studio Academy of Beauty, as expected, experienced a slight dip in performance as we worked through the integration phase. This included the retirement of the Director of Admissions, who we replaced with a new and energetic individual committed to our vision for the future. We are also improving the experience for the faculty and students with new lighting, a new paint scheme, lockers for students, and improved technology. These investments are critical to enhance the student experience and stay competitive long term.
Our focus headed into the rest of this year is to build the right team and culture while investing in our education and student experience to drive higher enrollments. While it is challenging, we are getting the right people in the right seats to drive The Studio Academy of Beauty towards greater success.
With two strong businesses as the foundation of the Business Fund, we are confident that we will continue to deliver the results our investors expect while taking care of our staff and customers. Between new IFF locations and continued improvements at TSAOB, the fund is building the foundation for a great year and continued growth in the future.
Thank you for your partnership,
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
The first quarter of 2025 was exciting for the Alturas Business Fund. With Idaho Fitness Factory continuing to perform very well and our first full quarter owning The Studio Academy of Beauty, ABF started the year off strong. Our realized return for the quarter of 16.45% shows the continued strength of IFF and the initial impact of stabilizing and transitioning TSAOB.
While there were no major changes at Idaho Fitness Factory in the first quarter, the 10th location continues to outperform our expectations. The Victory and Eagle location reached over 2,500 by the end of March, an increase of nearly 1,500 members since opening in November. This was our first pharmacy to gym conversion (former RiteAid) and it appears to be a model for us going forward. Our next location to open is also a former pharmacy (Walgreens) and we are optimistic about it’s potential performance.
The 11th location, at Eagle and Chinden, is on track to open in June of 2025 with several updates, including a new cardio layout, additional equipment, a new paint scheme, and improved locker rooms. We also broke ground on our first new construction building in the Meridian area for the 12th location. At 12,000, it is slightly smaller than the two most recent locations but the space is more efficiently utilized which allows us to maintain the same equipment package between locations. We anticipate opening this at the end of 2025.
The Studio Academy of Beauty, as expected, experienced a slight dip in performance as we worked through the integration phase. This included the retirement of the Director of Admissions, who we replaced with a new and energetic individual committed to our vision for the future. We are also improving the experience for the faculty and students with new lighting, a new paint scheme, lockers for students, and improved technology. These investments are critical to enhance the student experience and stay competitive long term.
Our focus headed into the rest of this year is to build the right team and culture while investing in our education and student experience to drive higher enrollments. While it is challenging, we are getting the right people in the right seats to drive The Studio Academy of Beauty towards greater success.
With two strong businesses as the foundation of the Business Fund, we are confident that we will continue to deliver the results our investors expect while taking care of our staff and customers. Between new IFF locations and continued improvements at TSAOB, the fund is building the foundation for a great year and continued growth in the future.
Thank you for your partnership,
Alturas Ventures
Lucas Henken
Alturas Ventures
Blake Hansen
The first quarter of 2025 was exciting for the Alturas Business Fund. With Idaho Fitness Factory continuing to perform very well and our first full quarter owning The Studio Academy of Beauty, ABF started the year off strong. Our realized return for the quarter of 16.45% shows the continued strength of IFF and the initial impact of stabilizing and transitioning TSAOB.
While there were no major changes at Idaho Fitness Factory in the first quarter, the 10th location continues to outperform our expectations. The Victory and Eagle location reached over 2,500 by the end of March, an increase of nearly 1,500 members since opening in November. This was our first pharmacy to gym conversion (former RiteAid) and it appears to be a model for us going forward. Our next location to open is also a former pharmacy (Walgreens) and we are optimistic about it’s potential performance.
The 11th location, at Eagle and Chinden, is on track to open in June of 2025 with several updates, including a new cardio layout, additional equipment, a new paint scheme, and improved locker rooms. We also broke ground on our first new construction building in the Meridian area for the 12th location. At 12,000, it is slightly smaller than the two most recent locations but the space is more efficiently utilized which allows us to maintain the same equipment package between locations. We anticipate opening this at the end of 2025.
The Studio Academy of Beauty, as expected, experienced a slight dip in performance as we worked through the integration phase. This included the retirement of the Director of Admissions, who we replaced with a new and energetic individual committed to our vision for the future. We are also improving the experience for the faculty and students with new lighting, a new paint scheme, lockers for students, and improved technology. These investments are critical to enhance the student experience and stay competitive long term.
Our focus headed into the rest of this year is to build the right team and culture while investing in our education and student experience to drive higher enrollments. While it is challenging, we are getting the right people in the right seats to drive The Studio Academy of Beauty towards greater success.
With two strong businesses as the foundation of the Business Fund, we are confident that we will continue to deliver the results our investors expect while taking care of our staff and customers. Between new IFF locations and continued improvements at TSAOB, the fund is building the foundation for a great year and continued growth in the future.
Thank you for your partnership,
Lucas Henken
Alturas Ventures
Blake Hansen
Alturas Ventures
Big News for Q1
Big News for Q1
Big News for Q1
Idaho Fitness Factory
10th location - Reached 2,500 members and profitability within 4 months
11th location - On track to open in June with updates and improvements
12th location - Broke ground on our first new build
Idaho Fitness Factory
10th location - Reached 2,500 members and profitability within 4 months
11th location - On track to open in June with updates and improvements
12th location - Broke ground on our first new build
Idaho Fitness Factory
10th location - Reached 2,500 members and profitability within 4 months
11th location - On track to open in June with updates and improvements
12th location - Broke ground on our first new build
The Studio Academy of Beauty
Hired a new Director of Admissions
Began implementing new systems and processes for admissions.
Created improvement plan for TSAOB including facilities and technology and began implementation in Q1
The Studio Academy of Beauty
Hired a new Director of Admissions
Began implementing new systems and processes for admissions.
Created improvement plan for TSAOB including facilities and technology and began implementation in Q1
The Studio Academy of Beauty
Hired a new Director of Admissions
Began implementing new systems and processes for admissions
Created improvement plan for TSAOB including facilities and technology and began implementation in Q1
Key Quarterly Numbers
Key Quarterly Numbers
Key Quarterly Numbers
16.45%
Average Realized Return Q1
16.45%
Average Realized Return Q1
16.45%
Average Realized Return Q1
16.45%
Average Total Return Q1
16.45%
Average Total Return Q1
16.45%
Average Total Return Q1
$1,328.30
Unit Price
$1,327.31
Unit Price
$1,328.30
Unit Price
$720,268
Realized Net Income Q1
$720,268
Realized Net Income Q1
$720,268
Realized Net Income Q1
$2,962,423
Realized Net Income Since Inception
$2,962,423
Realized Net Income Since Inception
$2,962,423
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 2025 are unaudited as of the date of this report.
Unit Price
Realized Returns
Returns Since Inception
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
Additional Fund Metrics
43
Number of Investors
43
Number of Investors
43
Number of Investors
74.68%
Reinvestment Rate
74.68%
Average realized return
74.68%
Reinvestment Rate
$12,803,621
Total Capital Raised
$12,803,621
Total Capital Raised
$12,803,621
Total Capital Raised
$2,073,693
Investor Distributions Since Inception
$2,073,693
Average realized return
$2,073,693
Investor Distributions Since Inception
$17,807,996
Assets Under Management
$17,807,996
Assets Under Management
$17,807,996
Assets Under Management
*Distributions since inception includes Q1 2025 distributions paid on 03/31/2025.
Idaho Fitness Factory
The first quarter of 2025 confirmed the momentum we built in Q4, with strong membership growth, significant financial gains, and continued commitment to club expansion. These results reinforce our strategy and highlight the durability of our model as we scale.
Victory & Eagle Growth Surpassing Expectations
IFF’s 10th location at Victory and Eagle continues to outperform expectations. As of the end of March, membership reached 2,504. It is now our fourth-largest club by total members and remains on pace to exceed our long-term expectations.
Strong Year-Over-Year Gains
Excluding Victory, total membership across the company increased by 1,188 members year-over-year despite our price standardization and increase. The positive impact of this new pricing structure was evident in the financials: top-line revenue grew by 41%, and net income increased by an impressive 81% year-over-year. These results underscore the effectiveness of our pricing strategy, which drove significant revenue growth without sacrificing member retention.
We are actively working on opening our newest location in Eagle, with the expected opening in June. Additionally, we broke ground on our 12th location which is a ground up new construction. These locations continue our disciplined approach of opening high-quality neighborhood gyms in underserved markets. We’re excited to bring the IFF experience to more members and build on the strong performance established in the first quarter.
Next Club Underway
Idaho Fitness Factory
The first quarter of 2025 confirmed the momentum we built in Q4, with strong membership growth, significant financial gains, and continued commitment to club expansion. These results reinforce our strategy and highlight the durability of our model as we scale.
Idaho Fitness Factory
The first quarter of 2025 confirmed the momentum we built in Q4, with strong membership growth, significant financial gains, and continued commitment to club expansion. These results reinforce our strategy and highlight the durability of our model as we scale.
Victory & Eagle Growth Surpassing Expectations
IFF’s 10th location at Victory and Eagle continues to outperform expectations. As of the end of March, membership reached 2,504. It is now our fourth-largest club by total members and remains on pace to exceed our long-term expectations.
Strong Year-Over-Year Gains
Excluding Victory, total membership across the company increased by 1,188 members year-over-year despite our price standardization and increase. The positive impact of this new pricing structure was evident in the financials: top-line revenue grew by 41%, and net income increased by an impressive 81% year-over-year. These results underscore the effectiveness of our pricing strategy, which drove significant revenue growth without sacrificing member retention.
We are actively working on opening our newest location in Eagle, with the expected opening in June. Additionally, we broke ground on our 12th location which is a ground up new construction. These locations continue our disciplined approach of opening high-quality neighborhood gyms in underserved markets. We’re excited to bring the IFF experience to more members and build on the strong performance established in the first quarter.
Next Club Underway
Financial Summary
Idaho Fitness Factory delivered another record-breaking quarter in Q1 2025. The compounding effect of last year’s investments, including updated equipment and interiors at legacy clubs and the rollout of standardized pricing, continued to drive strong financial performance.
Financial Summary
Idaho Fitness Factory delivered another record-breaking quarter in Q1 2025. The compounding effect of last year’s investments, including updated equipment and interiors at legacy clubs and the rollout of standardized pricing, continued to drive strong financial performance.
Financial Summary
Idaho Fitness Factory delivered another record-breaking quarter in Q1 2025. The compounding effect of last year’s investments, including updated equipment and interiors at legacy clubs and the rollout of standardized pricing, continued to drive strong financial performance.
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
Principal Paydown
Principal Paydown
Capex
Capex
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
Q4 2024
Q4 2024
$1,979
$1,979
504
504
390
390
112
112
221
221
1,226
1,226
753
753
(38)
(38)
72
72
133
133
63
63
447
447
190
190
$337
$337
Q1 2025
Q1 2025
$2,158
$2,158
597
597
428
428
142
142
443
443
1,610
1,610
548
548
12
12
65
65
0
0
0
0
495
495
213
213
$18
$18
Total
Total
$7,197
$7,197
2,068
2,068
1,510
1,510
439
439
1,005
1,005
5,022
5,022
2,154
2,154
(252)
(252)
248
248
335
335
109
109
1,231
1,231
777
777
$1,050
$1,050
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
Idaho Fitness Factory Metrics and Key Performance Indicators
$2,158,250
Quarterly Revenue Q1
$2,158,250
Quarterly Revenue Q1
+ 41.21%
YoY Change
+ 41.21%
YoY Change
$495,097
Quarterly Profit Q1
$495,097
Quarterly Profit Q1
+ 80.94%
YoY Change
+ 80.94%
YoY Change
24,090
Total Members
24,090
Total Members
+ 3,692
YoY Change
+ 3,692
YoY Change
10
Number of Locations
10
Number of Locations
97,038
Total Square Feet In Service
97,038
Total Square Feet In Service
2
Locations Under Construction
2
Locations Under Construction
25,673
Total Square Feet Under Construction
25,673
Total Square Feet Under Construction
Location #10 Performance
Location #10 Performance
$261,632
Quarterly Revenue Q1
$261,632
Quarterly Revenue Q1
+ 89%
Quarter Change
+ 89%
Quarter Change
2,504
Total Members
2,504
Total Members
+ 34.55%
Quarter Change
+ 34.55%
Quarter Change
$2,158,250
Quarterly Revenue Q1
+ 41.21%
YoY Change
$495,097
Quarterly Profit Q1
+ 80.94%
YoY Change
24,090
Total Members
+ 3,692
YoY Change
10
Number of Locations
97,038
Total Square Feet In Service
2
Locations Under Construction
25,673
Total Square Feet Under Construction
Location #10 Performance
$261,632
Quarterly Revenue Q1
+ 89%
Quarter Change
2,504
Total Members
+ 34.55%
Quarter Change
The Studio Academy of Beauty
The Studio Academy of Beauty completed its first full quarter of operations as a portfolio company in the Alturas Business Fund. During this first quarter, the team worked hard to transition the necessary systems, processes, and accounts. In addition to these updates, the team also stepped into larger roles and we continue to work to get the right team in place.
Elevation of staff and building out the leadership team
As we did at IFF, we elevated the existing team at TSAOB while providing support from Alturas Ventures in finance and accounting, marketing, IT, and data analytics. Overall, the staff transition went smoothly with some natural turnover including the hiring of a new Director of Admissions.
Improving the employee and student experience
The first full quarter of operations for the Studio Academy of Beauty went relatively smoothly. As expected there were challenges to overcome including the departure of the former Director of Admissions, several reports required by our accrediting body, and the general challenge of transitioning the team and business to new ownership.
Additional key initiatives:
Our priority is delivering a high-quality education for our students which includes a welcoming and comfortable environment. In Q1, we invested in several improvements including installing lockers, new lights, updated security systems, internet upgrades, and new technology hardware for educators and administrators. We believe that these investments will improve the experience for staff and students and lead to higher enrollments.
Sales and marketing was also a key focus in Q1. This included the hiring of a new Director of Admissions with a vision for the future. We also more actively engaged with our third party advertising partner to hold them to a higher standard to improve lead quality and quantity. Lastly, we Implemented a new CRM to improve our lead to enroll process and management for the admissions team.
• Continue building the right team • Amplifying data analytics to improve insights and decision-making ability. • Develop processes for financial reporting to ensure accurate and timely reporting. • Acquire and implement new software for managing financial aid and compliance reporting.
Enhancing our marketing efforts
The Studio Academy of Beauty
The Studio Academy of Beauty completed its first full quarter of operations as a portfolio company in the Alturas Business Fund. During this first quarter, the team worked hard to transition the necessary systems, processes, and accounts. In addition to these updates, the team also stepped into larger roles and we continue to work to get the right team in place.
Elevation of staff and building out the leadership team
As we did at IFF, we elevated the existing team at TSAOB while providing support from Alturas Ventures in finance and accounting, marketing, IT, and data analytics. Overall, the staff transition went smoothly with some natural turnover including the hiring of a new Director of Admissions.
Improving the employee and student experience
The first full quarter of operations for the Studio Academy of Beauty went relatively smoothly. As expected there were challenges to overcome including the departure of the former Director of Admissions, several reports required by our accrediting body, and the general challenge of transitioning the team and business to new ownership.
Additional key initiatives:
Our priority is delivering a high-quality education for our students which includes a welcoming and comfortable environment. In Q1, we invested in several improvements including installing lockers, new lights, updated security systems, internet upgrades, and new technology hardware for educators and administrators. We believe that these investments will improve the experience for staff and students and lead to higher enrollments.
Despite a smooth integration, Q4 2024 results were affected by: Holiday Revenue Lag: Students only attended class for 12 days in December, resulting in lower recognized revenue. 2. Deal Expenses: New accounting rules required immediate expensing of all acquisition costs, legal, consulting, and audit fees, compressing these into a short period and impacting financial performance.
• Continue building the right team • Amplifying data analytics to improve insights and decision-making ability. • Develop processes for financial reporting to ensure accurate and timely reporting. • Acquire and implement new software for managing financial aid and compliance reporting.
Enhancing our marketing efforts
The Studio Academy of Beauty
The Studio Academy of Beauty completed its first full quarter of operations as a portfolio company in the Alturas Business Fund. During this first quarter, the team worked hard to transition the necessary systems, processes, and accounts. In addition to these updates, the team also stepped into larger roles and we continue to work to get the right team in place.
Elevation of staff and building out the leadership team
As we did at IFF, we elevated the existing team at TSAOB while providing support from Alturas Ventures in finance and accounting, marketing, IT, and data analytics. Overall, the staff transition went smoothly with some natural turnover including the hiring of a new Director of Admissions.
Improving the employee and student experience
Additional key initiatives:
Our priority is delivering a high-quality education for our students which includes a welcoming and comfortable environment. In Q1, we invested in several improvements including installing lockers, new lights, updated security systems, internet upgrades, and new technology hardware for educators and administrators. We believe that these investments will improve the experience for staff and students and lead to higher enrollments.
Sales and marketing was also a key focus in Q1. This included the hiring of a new Director of Admissions with a vision for the future. We also more actively engaged with our third party advertising partner to hold them to a higher standard to improve lead quality and quantity. Lastly, we Implemented a new CRM to improve our lead to enroll process and management for the admissions team.
• Continue building the right team • Amplifying data analytics to improve insights and decision-making ability. • Develop processes for financial reporting to ensure accurate and timely reporting. • Acquire and implement new software for managing financial aid and compliance reporting.
Enhancing our marketing efforts
Financial Summary
TSAOB delivered consistent month-to-month financial performance in the first quarter following the acquisition. However, there were several one-time deal-related expenses (approximately $75,000) from the acquisition recognized in Q1 that drove expenses up and net income down. As this was the first quarter of operations, we are confident that the business will stabilize and experience continued growth and improvement.
Financial Summary
TSAOB delivered consistent month-to-month financial performance in the first quarter following the acquisition. However, there were several one-time deal-related expenses (approximately $75,000) from the acquisition recognized in Q1 that drove expenses up and net income down. As this was the first quarter of operations, we are confident that the business will stabilize and experience continued growth and improvement.
Financial Summary
TSAOB delivered consistent month-to-month financial performance in the first quarter following the acquisition. However, there were several one-time deal-related expenses (approximately $75,000) from the acquisition recognized in Q1 that drove expenses up and net income down. As this was the first quarter of operations, we are confident that the business will stabilize and experience continued growth and improvement.
Summary
(in thousands)
Net Sales
Net Sales
Facilities Cost
Facilities Cost
Marketing & Admissions
Marketing & Admissions
Payroll
Payroll
Educational Services
Educational Services
G&A
Total Expenses
Net Operating Income
Interest Expense
Net Income
Q1 2025
$1,865
216
113
923
164
303
1,718
147
0
$147
TSAOB: Key Metrics and Performance Indicators
TSAOB: Key Metrics and Performance Indicators
TSAOB: Key Metrics and Performance Indicators
$5,250,000
Purchase Price
$5,250,000
Purchase Price
436
Total Number Of Students
436
Total Number Of Students
67
Total Number of Employees
67
Total Number of Employees
$1,987,033
Total Revenue Q1
$1,987,033
Total Revenue Q1
$146,792
Profit in Q1
$146,792
Profit in Q1
$5,250,000
Purchase Price
436
Total Number Of Students
67
Total Number of Employees
$1,987,033
Total Revenue Q1
$146,792
Profit in Q1
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.