In Thora's 4Q21 letter to investors, through a set of statistical exercises, we demonstrated the appeal of Thora’s helicopter leasing investment strategy, and the conservatism which we apply in forecasting our returns when deploying capital.

"Table 4 shows different statistical outcomes from investing $100 into a passive helicopter leasing strategy with financial characteristics matching Thora's portfolio and at Thora's estimated fee structure."

"As summarized in Table 6, Thora's strategy outperforms equities in each presented scenario except for the nineteen of twenty projected outcomes of a 5-year holding period, and even in that case, underperforms by only a relatively small amount."

The three most important inputs to forecasting Thora’s expected returns are lease duration and the ratios of periodic rent payments and asset sale price to our acquisition price. At the time of capital deployment, only one of these is unknown. Periodic rentals as a function of acquisition price are commonly referred to as “lease rate factor” in aviation investing quoted on a monthly basis or “cap rate” in real estate investing quoted on an annual basis.

Fund I, which was deployed from 2019-2021 had a “cap rate” of 15.5% for average lease terms of 5-years and average aircraft ages of 10-years. Fund II and deals under LOI have a “cap rate” of 22% for average lease terms of 5-years and average aircraft ages of 11-years. All else equal, this adds about 8% to expected unlevered gross IRRs.