Investment Guide
Summer 2024
Car wash is a large and growing industry ripe for innovation, consolidation & brand building
- We’ve seen this before: the burger market before McDonalds took off or the coffee shop business before Starbucks
- It’s still early: we believe we are only in the 2nd inning of this great sector transformation
- It’s all about tunnels: they are the format with the highest sales per store and are the fastest growing
Source: Jefferies Initiation Coverage Report - 2021
Blair Car Wash Sector Update – Summer 2022
Lots of smart money agrees and is investing in the tunnel business
Store economics & attributes make the sector the rockstar of the retail space
Best in class car washes (at stabilization)
EBITDA of c.50%+
Unique sector attributes:
- Amazon proof - you can’t wash your car online
- Sustainable choice - uses only 20% of the water vs washing at home
- Fast & convenient - 150-180 seconds for 5-star clean and 150 cars per hour through-put
- Car maintenance - protects your car preserving it’s value
- Interior options - free to use super-suction vacuums and other amenities
Source: Henley Car
We understand what customers want
Safe, Easy Loading on Belt
“Difficult to position my car without damaging my tires or rims”
Clean Wheels
“My wheels are never properly cleaned”
Dry Car
“Don’t want to come out still wet, streaky or with water spots”
Available, Effective Vacuums
“The suction isn’t strong enough & there aren’t enough vacuums available”
#fortheloveoftheroad
AquaSonic’s owner is an experienced investor
Over $3.1bn deployed across a multiple of sectors and geographies in 110+ investments1
1 As at April 2023
Source: Henley Car Wash Internal Estimates
What our investors say about us:
“I have been an investor with the Henley Group for around 15 years - they are smart hard working investors who have delivered consistently over time”
- Richard G, HNW, US Investor
“...Top Investment Managers”
“We have been an active investor with Henley in multiple opportunities over the past few years. The thematic and strategic investment ideas and execution rank among the top investment managers we work with. We have enjoyed great access to senior leadership and know the Henley team works tirelessly to maximize our returns. We look forward to a continued and lasting relationship in the years ahead”
- Adrian B, CIO/CEO Large Family Office, US Investor
“...Very Happy With Returns”
“Henley have provided us access to a ‘syndicated pool’ of larger deals than we would ordinarily gain access to with our capital. We have a focus on land backed deals and a small amount allocated to prop tech via Henley.
To date we have been very happy with the returns; quality and pricing of the deals; and continue to allocate capital to deals when the timing is right and they fit our criteria”
- Jacques B, HNW, International Investor
“...Communicate Frequently”
“Henley have consistently shown me a variety of different opportunities across multiple asset classes on which I have invested in.
They communicate frequently, not only to discuss when investments are performing well, but also when problems may be occurring”
- Nazmin K, HNW, International Investor
AquaSonic offers multiple investment alternatives
Fund Syndication
Participate in ownership of multiple stores alongside other investors
Store Branchise
100% ownership of a singular store (no other investors)
Market Branchise
100% ownership of multiple stores in a market (no other investors)
Branchise vs. Franchise
Opportunity to own a store
Opportunity to own a market
Opportunity to select a site
Finance yourself
All benefits of ownership without the hassle of operations
Buy equipment from unrelated third party
Ability to terminate brand / manager
Portfolio premium at sale
All benefits of ownership without the hassle of operations
1
AquaSonic Funds project high returns with downside protection
$3.40+
Even
Projected return for every $1 invested Equity multiple of 2.86X Cash on cash returns of 22.5% Net IRR of 33.2%
Source: Henley Car Wash Internal Estimates
AquaSonic Branchise projected to deliver robust returns
$3.65+ Projected return for every $1 invested
20%+ projected average annual distributions
Source:
Significant tax advantages
60% acceleration in 2024 Benefits from accelerated and bonus depreciation Benefits investors with passive gains
Source: Henley Car Wash Internal Estimates
Sponsor does not provide tax advice. Taxation is based on an individual investor’s circumstances. Investors should seek professional independent advice prior to investing if they are uncertain as to the suitability of an investment before making an investment decision. Returns not guaranteed.
Fund I closed Q1 2024
$12.8M Fund I closed with initial three locations
Site 1
6925 N 56th St Tampa
Site 2
6818 US HWY 19 New Port Richey
Site 3
9729 W Colonial Dr Orlando
Fund II closed Q3 2024
Fund 3 now open for accredited investors
Capital can be invested into Fund 3 at a minimum of $100,000. The fund will invest into a minimum of 2 and maximum of 5 sites (with the final acquisition by December 31, 2025).
