A method and system for creating an equity exchange fund for public and private entities are provided. The method includes the steps of receiving an application to participate in the fund from at least one investor, the investor having a position in at least one commercial entity; evaluating the entity based on at least one predetermined criteria; if the entity is acceptable, performing a valuation of the position in the entity; and determining a number of shares of the fund to be exchanged for the position in the entity. The determining the number of shares step includes determining a future value of the position at a scheduled date of liquidation of the fund; dividing the future value of the position by a total current fund value plus the future value of the position to determine a ratio; and multiplying a number of shares of the fund by the ratio.