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<PAGE> PAGE 2
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<PAGE> PAGE 3
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SIGNATURE GENE T. PRETTI
TITLE GENERAL PARTNER
Arthur Andersen LLP
To the Partners of
Zazove Convertible Fund, L.P.:
In planning and performing our audit of the financial
statements of ZAZOVE CONVERTIBLE FUND L.P. for the year
ended December 31, 1996, we considered its internal control
structure, including procedures for safeguarding securities,
in order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of Zazove Convertible Fund L.P. is responsible
for establishing and maintaining an internal control structure.
In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of internal control structure policies and
procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against
loss from unauthorized use or disposition and that transactions
are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements
in conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or
that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would
not necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which
the design or operation of the specific internal control
structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would
be material in relation to the financial statements being
audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal
control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as
defined above as of December 31, 1996.
This report is intended for the use of management and the
Securities and Exchange Commission and should not be use for
any other purpose.
[Signature]
Arthur Andersen
Chicago, Illinois
February 7, 1997
