Nakano Investments
Nakano Investments
Quarterly report · Q3 2025 · Nakano & Centerpitch
Confidential
2025-09-30
01 · Overview
Consolidated cash
-$59k
-3448.5% QoQ
Combined equity
$2.71M
Nakano $1.70M · CP $1.00M
Private portfolio (MTM)
$5.21M
on $2.52M invested · $505k returned
Public portfolio (MTM)
$1.27M
$587k unrealized
2025 expenses (ann.)
$33k
$26k YTD

Our overall cash position turned negative in Q3. This was the result of temporary margin usage in eTrade and IBKR to take new positions (PFE in eTrade and ASML in IBKR). Since the end of Q3, I have been moving into more cash in anticipation of a possible downturn. These balances are now positive.

Consolidated cash, quarterly

-$220k$252k$723k$1.2m$1.7m20182019202020212022202320242025

Balances by account

eTradeeTrade: -$47,715-$48kIBKRIBKR: -$23,399-$23kChaseNakanoChaseNakano: $6,475$6kWFWF: $3,906$4kChaseCenterpitchChaseCenterpitch: $2,153$2kMSMS: $33$33NewBridgeNewBridge: $20$20WFBWFB: $1$1
Source: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · “Running Cash Balances”
02 · Expenses
Consolidated (Nakano + Centerpitch)
2025 YTD$26,173
Annualized$33,378
2024 full year$39,759
-16.0% YoY (annualized)
2016: $0162017: $5,373172018: $12,647182019: $28,856192020: $23,494202021: $28,031212022: $36,308222023: $50,29523$50k2024: $39,759242025: $26,173252026: $17,25426$17k
Nakano
2025 YTD$4,631
Annualized$6,191
2024 full year$7,359
-15.9% YoY (annualized)
2016: $0162017: $5,373172018: $12,647182019: $28,856192020: $23,494202021: $28,031212022: $36,30822$36k2023: $21,914232024: $7,359242025: $4,631252026: $2,00626$2k
Centerpitch
2025 YTD$21,542
Annualized$27,187
2024 full year$32,400
-16.1% YoY (annualized)
2016: $0162017: $0172018: $0182019: $0192020: $0202021: $0212022: $0222023: $28,381232024: $32,40024$32k2025: $21,542252026: $15,24726$15k

2025 spend by line item (consolidated)

Office RentOffice Rent: $16,061$16,061Accountant FeesAccountant Fees: $2,500$2,500Webpage EmailWebpage Email: $2,345$2,345Client EntertainmentClient Entertainment: $2,015$2,015SubscriptionsSubscriptions: $1,589$1,589CreditcardCreditcard: $1,099$1,099ErrorError: $643$643Other Business ServicesOther Business Services: $402$402State/City FeesState/City Fees: $278$278OtherOther: $527$527

Q3 2025 expenses: $17.0k (-43.4% YoY, on annualized basis). Expenses were down significantly on an annualized basis from 2024. The two big increases were in Office Rent (+24.8% to $13,618) and Webpage Email (+271.3% to $1,139). The Office Rent increase is incorrect, a quick examination found. Our rent was changed twice this year, and in the process of doing so, we double paid for three months. In fact, the increase is only about 2% YoY. I have already spoken to Christie about this and we will true up at the end of the year. In terms of Webpage Email, this is a true increase; both Google and GoDaddy have signficantly boosted their prices. The other categories were down significantly: Client Expenses (-84.6% to $2,704), Avisory and Fees (-23% to $2,625), and Credit Card (-22.1% to $1,829).

Two notes:

  • We paid for a two-year subscription to Grants in 2023, which will need to be renewed in December for approx. $2,800.
  • We pay our accountant fees in the last part of the year (I just paid them), which are about $2,500.

Our expense ratio also fell in line with our gross expenses. The last time I reported this was in 2023, when the ratio (annual expenses / net asset value) was 0.45%. For this period, it is 0.33%, or annualized expenses of $22.8k against our current mark of $7.8m.

Nakano doesn't attract much of our expense base since we opened Centerpitch in 2023 (Q3 2025 Nakano expenses: $1,821, -68.7% YoY annualized); Centerpitch attracts the majority ($15,149, -37.3% YoY annualized).

Source: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · Expenses_Summary / Expenses_Nakano / Expenses_Centerpitch · full tables in the appendix · annualization holds Accountant Fees, State/City Fees, Client Entertainment, and Internal Events at actuals
03 · Equity balances
Nakano Investments LLC
Total equity$1,704,295
Design target (D/W)80 / 20
Drexler $1,360,236 (79.8%)Wiesner $344,059 (20.2%)
$0$717k$1.4m$2.1m$2.9m201720182019202020212022202320242025
Centerpitch Investments LLC
Total equity$1,001,000
Design target (D/W)50 / 50
Drexler $517,550 (51.7%)Wiesner $483,450 (48.3%)
$0$270k$541k$811k$1.1m20242025

As of Q3 2025, Nakano equity stood at $1.704M. Total equity peaked at $2.654M, and started drawing down on Feb 1, 2023, initially with a $96k disbursement for Northfield and Linden Terrace. The majority of the draw down related to the funding of Centerpitch, which was stood up on March 9, 2023.

Nakano is designed to be an 80/20 entity. As of Q3 2025, the split is slightly off target at 79.8% Drexler / 20.2% Wiesner. This is due to the fact that Matt has not yet taken a $4k distribution from the July 30, 2025 payment from Northfield. When he does, the ratio will return to 80/20, with Drexler holding $1.360M of Nakano's equity, and Wiesner with $340k.

As of Q3 2025, Centerpitch equity stood at $1.001M. Centerpitch solely funds the Photon Vault and part of the Smartemis investments, as well as joint expenses, such as the office rent. Centerpitch is designed to be a 50/50 entity; as of Q3 2025 the ratio is slightly off, 51.7% Drexler / 48.3% Wiesner. Given the timing, it is no doubt related to our most recent Smartemis funding. The difference is modest, and I am inclined to leave it as it is for now.

Source: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · Nakano_Equity / Centerpitch_Equity
04 · Private portfolio

We made no new private investments in 2025.

DealFirst fundingInvestedCash receivedRemaining valueMOICOutperformance case
Nakano Investments LLC
Smartemis
Veterinary services — France, Germany (Principal: Bill Hughson)
Mar 2022$633,683—$2,500,0003.95×$5,500,000
ScreenMeet
Cloud-native remote support SaaS (Principal: Ben Lilienthal)
Jun 2021$574,999—$613,0001.07×$2,300,000
Northfield
Residential real-estate development (Principal: Patrick Zalupski)
Aug 2020$250,000$505,000$00.48×$625,000
BloomIntel
Restaurant marketing — Bloom Intelligence (Principal: Will Wilson)
Aug 2021$100,000—$00.00×$300,000
LungThera
Biotech — now Rein Therapeutics, RNTX (Principal: Brian Windsor)
Mar 2022$50,000—$00.00×$300,000
Nakano subtotal$1,608,682$505,000$3,113,0002.01×
Centerpitch Investments LLC
SmartemisCP
Veterinary services — Centerpitch tranche
Jun 2023$812,750—$2,100,0002.58×$4,600,000
PhotonVault
Waste-heat battery storage (Principals: Kent McCormick, John Langhus)
Mar 2023$100,000—$00.00×$300,000
Centerpitch subtotal$912,750$0$2,100,0002.30×
Consolidated$2,521,433$505,000$5,213,0002.12×

Invested (light) vs total value — paler segment is cash already returned

SmartemisSmartemis invested: $633,683$634kSmartemis remaining value: $2,500,000$2.50MScreenMeetScreenMeet invested: $574,999$575kScreenMeet remaining value: $613,000$613kNorthfieldNorthfield invested: $250,000$250kNorthfield cash returned: $505,000$505kBloomIntelBloomIntel invested: $100,000$100kBloomIntel remaining value: $0$0LungTheraLungThera invested: $50,000$50kLungThera remaining value: $0$0SmartemisCPSmartemisCP invested: $812,750$813kSmartemisCP remaining value: $2,100,000$2.10MPhotonVaultPhotonVault invested: $100,000$100kPhotonVault remaining value: $0$0
  • Smartemis (Nakano: $633.7k invested, $2.5m MTM; Centerpitch: $812.8k invested, $2.1m MTM): Our largest position, with $1.4m invested across both entities. The company is getting close to its planned exit, which it must execute before Dec 31, 2027. Bill has met with ~40 potential exit partners for 1-on-1s, organized by three potential investment banking partners: Jeffries, Lincoln International, and William Blair. Feedback has been very positive. Two operational issues remain, both in France: the continuing (spurious) regulatory investigation into whether Smartemis exerts undue control over network clinics — our law firm Winston & Strawn insists the case has no merit — and access to data from the French clinics, where we have not yet successfully extracted conforming data from a single clinic. France is only 20% of revenue, but we need a functioning second market before going to market. As of Nov 30: 132 clinics, €154m ($180m) of revenue, 559 vets, and a €44m pipeline.
  • ScreenMeet ($575k invested, $613k MTM, $2.3m outperformance): In 2024 they missed out on an expected sale to ServiceNow; Ben has come back in hands-on. Revenue grew 26% YoY through Oct with expenses up only 6%; EBITDA positive in 2025 ($664.8k YTD); ranked #1,643 on the Inc. 5000. Plan is to stabilize earnings for a sale in 2026. Held at 4x revenue (market is 8x–10x) out of conservatism and strategic-exit realism.
  • Photon Vault ($100k invested, $0 MTM): Still struggling to fund their first project. As of December they have traction with CIM Group ($130B AUM), pitching $5M Series A + $45M project equity on Dec 10. This looks like their last push; if they can't raise, they shut down. We hold at 0.
  • Bloom Intelligence ($100k invested, $0 MTM): Holding pattern — ~$1m revenue, churn <1% monthly, barely profitable. Will proposes a shareholder vote between "Cash Flow Optimization" (continue, pay down debt, position for sale) and "Growth Acceleration" (raise $1M, scale 3x–10x). Our preference is overwhelmingly the former. Best option: find a partner and get bought.
  • Lung Therapeutics / Rein Therapeutics (RNTX) ($50k initial, $0 MTM): Merged into Aileron to become Rein on Oct 31, 2023. Lead asset LTI-03 (IPF) restarted Phase 2 after the FDA lifted its clinical hold Nov 3; results expected Q3 2026. Value has fallen 69% over our holding period; we hold it as a lottery ticket at the current stock price.
  • Northfield / Dreamfinders ($250k invested, $120k MTM, $505k received): Continues to pay at its idiosyncratic rate. We expect another $120k, bringing the total return to 2.5x on invested capital; timing unclear until the next K-1. Cash-on-cash 102% to date, IRR 14.8% — neither particularly compelling given the bull market of the last five years.
Source: Nakano_Portfolio_Data.xlsx · Deal_Registry / Deal_Transactions / Deal_Valuations · marks are total deal value (report-sourced); Remaining value = mark − cash received, which is what counts toward portfolio value (received cash already sits in the cash accounts) · MOIC = total value / invested · deals, marks, and cash received are as of the report date · open deals with no dated mark yet are carried at cost
05 · Public portfolio

All public securities are held at Nakano Investments (eTrade and Interactive Brokers). Centerpitch holds no public positions.

Open positions (MTM)
$1.27M
$587k vs cost
Realized G/L, 2025 YTD
$85k
+ $21k dividends
eTrade NAV
$682k
broker-reported, Sep 30
IBKR NAV
$715k
broker-reported, Sep 30

NAV bridge: open positions $1.27M + eTrade cash -$48k + IBKR cash -$23k (margin loan) = $1.20M ≈ combined broker NAV $1.40M — brokerage NAV nets cash and margin against the securities.

Daily marks — securities value by account

$0$748k$1.5m$2.2m$3.0m202020212022202320242025
TotaleTradeIBKR

Performance vs indexes (time-weighted)

CumulativeCAGR2025 YTD
Portfolio+201.7%+19.0%+57.7%
Blended benchmark+133.7%+14.3%+17.8%
S&P 500+160.0%+16.2%+14.7%
MSCI ACWI+117.9%+13.0%+18.6%
Japan (EWJ)+67.7%+8.5%+20.5%
Europe (VGK)+83.7%+10.0%+28.4%

Time-weighted: daily returns of the securities book chained with buys/sells neutralized as external flows; dividends and option premiums count as return. Base 100 on 2019-05-24. The blended benchmark applies the portfolio's own daily bucket weights to matching index returns (US equities→SPY, Japan equities→EWJ, Europe equities→VGK, China equities→MCHI, US bonds/bills→BIL, Crypto→ETH-USD; dividend-adjusted USD ETFs). Current mix: US equities 60%, Japan equities 28%, Europe equities 11%, China equities 1%. T-bill discounts recognize at purchase; delisted names (ALRN, LUMO) excluded.

Open positions

TickerQtyCost basisLast price (local)MTM (USD)GainWeight
eTrade
GOOG
Alphabet (Class C)
650$63,462$243.55$158,308+149.5%12.5%
GS
Goldman Sachs Group
150$51,075$796.35$119,452+133.9%9.4%
ABBV500$54,308$231.54$115,770+113.2%9.1%
WMT
Walmart
600$31,378$103.06$61,836+97.1%4.9%
NEE
NextEra Energy
700$39,534$75.49$52,843+33.7%4.2%
PFE2,000$48,190$25.48$50,960+5.7%4.0%
TPB500$14,213$98.86$49,430+247.8%3.9%
AMZN
Amazon.com
200$37,000$219.57$43,914+18.7%3.5%
LMT50$16,498$499.21$24,960+51.3%2.0%
ECC
Eagle Point Credit
3,000$22,350$6.61$19,830-11.3%1.6%
CMG500$26,370$39.19$19,595-25.7%1.5%
APO
Apollo Global Management
100$11,284$133.27$13,327+18.1%1.0%
ABBV Jan 16 '26 $240 Call
short leg (sold beyond long inventory)
-3$0no price———
eTrade subtotal$415,661$730,226
IBKR
7011.T
Mitsubishi Heavy Industries
10,000$57,939¥3,879.00$261,045+350.6%20.6%
BNP
BNP Paribas (BNP.PA)
1,000$71,973€77.33$90,719+26.0%7.1%
8031.T
Mitsui & Co
2,200$36,504¥3,680.00$54,484+49.3%4.3%
COIN
Coinbase Global
100$31,846$337.49$33,749+6.0%2.7%
5020.T
ENEOS Holdings
4,000$16,721¥939.89$25,301+51.3%2.0%
ASML
ASML Holding (ASML.AS)
20$15,908€828.10$19,430+22.1%1.5%
FMNB
Leonardo SpA (LDO.MI)
300$6,836€54.02$19,012+178.1%1.5%
BA.
BAE Systems (BA.L)
520$8,298£20.59$14,387+73.4%1.1%
3382.T
Seven & i Holdings
1,000$13,411¥1,990.99$13,399-0.1%1.1%
651
Gree Electric (000651.SZ)
1,500$8,320CN¥39.72$8,369+0.6%0.7%
RHM
Rheinmetall (RHM.DE)
90$31,258no price———
IBKR subtotal$299,012$539,894

No market price (delisted / corporate action pending): RHM, ABBV Jan 16 '26 $240 Call — carried outside MTM totals.

Realized results by year

2019202020212022202320242025Total
Realized G/L$33k$169k$408k-$277k$4k-$361$85k$422k
Dividends$10k$23k$59k$84k$28k$31k$21k$255k

Our public holdings are split between eTrade (domestic, $745.2k) and IBKR (international, $675.5k), both Nakano assets — total holdings $1.4m as of Dec 18, 2025. A detailed performance analysis will be produced for year end.

Source: Nakano_Portfolio_Data.xlsx · Public_Trades / Prices / Account_NAV · daily marks: nakano_reporting daily_marks engine (month-ends tie IBKR PortfolioAnalyst within ±1.1%)
06 · Appendix — expense detail
Consolidated
Line item20162017201820192020202120222023202420252026Total
Office Rent4,17014,77815,06515,39115,85516,63814,64116,0617,327119,925
Office Furniture4,3292,9413,40010,670
Office Supplies0
Office-Related Expenses4,17014,77815,06519,72118,79520,03814,64116,0617,327130,595
Webpage Email3934805781803541925227282,3451,5257,295
Subscriptions13,0978191,5894395,945
Video Meeting Services1581671481541611731841,145
Business Applications2492494413831201,442
Other Business Services2252402149625
Operational Expenses3935015783387706434,2142,0904,6292,29716,452
Client Entertainment8,0448,9702,0152,48821,517
Internal Events4,5063,1058608,471
Business Travel1,1575,4386,595
Client Expenses13,70717,5142,0153,34836,584
Legal Fees2,3768391,4591642785,115
Accountant Fees2,8901,8002,5002,5001,6002,5002,5002,5003,85022,640
State/City Fees751693192782821,122
Bank Service Fees295110175382611512341101,866
Wire Fees2252402901006065425501,455
Foreign Currency Charges20323702244
Advisory and Fees2255,5813,2244,3382,7372,5293,1143,3883,0124,29432,443
Other Expenses2,8811,400991,580
Error7061,1391,316681643844
Miscellaneous2,1752611,316780643736
Creditcard4,7552,3958,1024,0156,12014,3408,4412,1271,0991251,382
Total Expenses5,37312,64728,85623,49428,03136,30850,29539,75926,17317,254268,191
Nakano
Line item20162017201820192020202120222023202420252026Total
Office Rent4,17014,77815,06515,39115,8556,37471,633
Office Furniture4,3292,9413,40010,670
Office Supplies0
Office-Related Expenses4,17014,77815,06519,72118,7959,77482,303
Webpage Email3934805781803541925226782,3451,5257,246
Subscriptions1402393873541,723
Video Meeting Services1581671481541611731841,145
Business Applications2492493362781201,232
Other Business Services225274
Operational Expenses3935015783387706431,4141,5103,5111,76311,419
Client Entertainment3,3233,323
Internal Events2,5254222,946
Business Travel3,3223,322
Client Expenses7993,7432,944
Legal Fees2,3768391,4591641394,976
Accountant Fees2,8901,8002,5002,5001,6002,50013,790
State/City Fees75169319144706
Bank Service Fees2951101753825801802341101,706
Wire Fees2252402901006065980
Foreign Currency Charges203210228
Advisory and Fees2255,5813,2244,3382,7372,5293,0832023425522,187
Other Expenses2,8811,4001,481
Error7061,1391,3162131,096
Miscellaneous2,1752611,316213384
Creditcard4,7552,3958,1024,0156,12014,3408,4412,1271,0991251,382
Total Expenses5,37312,64728,85623,49428,03136,30821,9147,3594,6312,006170,620
Centerpitch
Line item20162017201820192020202120222023202420252026Total
Office Rent10,26414,64116,0617,32748,292
Office Furniture0
Office Supplies0
Office-Related Expenses10,26414,64116,0617,32748,292
Webpage Email5050
Subscriptions2,6954267163854,222
Video Meeting Services0
Business Applications105105210
Other Business Services402149551
Operational Expenses2,8005801,1185345,032
Client Entertainment11,3688,9702,0152,48824,841
Internal Events1,9822,6848605,525
Business Travel1,1572,1173,274
Client Expenses14,50613,7712,0153,34833,640
Legal Fees139139
Accountant Fees2,5002,5003,8508,850
State/City Fees278139416
Bank Service Fees31129160
Wire Fees42550475
Foreign Currency Charges216216
Advisory and Fees313,4082,7784,03910,256
Other Expenses9999
Error681429252
Miscellaneous780429351
Creditcard0
Total Expenses28,38132,40021,54215,24797,571
Sources: Nakano_Summary_CASH_EXPENSE REPORT_(2026_06_30) DRAFT.xlsx · Nakano_Portfolio_Data.xlsx · unmarked private deals carried at zero.