Vx Capital Partners' (Vx) investment strategy is focused on capturing the cyclical nature in asset values that has repeatedly occurred in tandem with the economic cycle. Since the aviation industry is directly tied to the macroeconomic cycle, airlines are vulnerable to the underlying factors that lead to volatile earnings and operational performance. As a result, this frequently leads to situations where the underlying assets can be acquired at an attractive price with limited downside.

Vx's investment strategy is centered around the following core competencies:

ASSET SELECTION	>	Vx identifies aircraft, engines and other aviation assets that can be purchased at levels beneath their relative earning capacity and residual potential.
STRUCTURING	>	Vx designs and negotiates various financial structures to optimize risk/reward profile for its partners and itself.
TIMING THE CYCLE	>	Vx effects purchases and sales at optimum levels.
TRANSACTION MANAGEMENT	>	Vx actively manages all investments from acquisition until final disposition in order to maximize cash flow and investment performance.

Vx has four primary investment categories, which are summarized below:

STRUCTURED INVESTMENTS	>	Secured Financing for Airlines.
DEFAULTED LEASE TRANSACTIONS	>	Investments in Defaulted Loans and Leases.
OFF-LEASE ASSETS	>	Remarketing, part-out and power-by-the-hour engine pool transactions.
OPPORTUNISTIC TRANSACTIONS	>	Asset-backed securities, portfolios of leased aircraft or loans, operating lease companies, and fleet repositionings.

There are distinct characteristics and advantages of each of these investment types. Due to the cyclical nature of this sector, it is critical to recognize signals of a cyclical shift and adapt the strategy to match the appropriate investment category. Vx places a premium on its experience and expertise in gauging these subtle undulations, as this ability is the intangible differentiator between achieving adequate and outsized investment returns.