A method for selecting leases to optimize an investment portfolio comprising the steps of: receiving data regarding an equipment purchase price, an equipment sale price, a number of units, a lease purchase price, a life of lease, a lease acquisition fee, an accelerated depreciation of change, and a yearly payment; calculating by computer a total purchase price by adding the lease purchase price to the lease acquisition fee; calculating by computer an accelerated depreciation result by multiplying the equipment purchase price by the number of units; calculating by computer a rate of return by subtracting from the yearly payment the total purchase price and the accelerated depreciation result and dividing by the lease purchase price; and selecting a lease based on the rate of return being greater or equal to a predetermined value and using the selected lease to create lease backed financial instrument derivatives and optimize the investment portfolio. view more

The method according to claim 1, further comprising the steps of calculating a fair market value at the end of lease by multiplying the equipment sale price by the number of units; calculating a residual at end of lease by subtracting 100 from the accelerated depreciation of change and multiplying by the equipment sale price and the number of units; and calculating a straight line depreciation amount by subtracting the total purchase price from the fair market value at end of lease and dividing the result by the life of lease. view more

The method according to claim 2, further comprising the step of calculating a straight line depreciation result by multiplying the equipment purchase price by the number of units and adding the lease acquisition fee and subtracting the straight line depreciation amount. view more

The method according to claim 1, wherein the predetermined value is dependent on an investment grade rating of a type of instrument.

The method according to claim 4, wherein the type of instrument is one of venture capital, private equity, public equity, and/or debt instruments.

The method according to claim 5, further comprising the step of selecting the lease based on a length of the lease.

The method according to claim 1, wherein a plurality of leases are selected to create the lease backed financial instrument derivatives.

The method according to claim 7, wherein the investment structure is applied to a venture capital environment, private equity, public equity, and/or debt instruments.