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INDEPENDENT AUDITORS' REPORT
The Board of Directors
MACC Private Equities Inc.
And
The Securities and Exchange Commission:
We have examined management's assertion, included in its representation
letter dated January 7, 2000, that MACC Private Equities Inc. (the Company)
complied with the provisions of subsections (b) and (c) of Rule 17f-2 under
the Investment Company Act of 1940 as of January 7, 2000, and during the
period September 30, 1999, (the date of our last similar examination)
through January 7, 2000, included in the accompanying Management Statement
Regarding Compliance with Certain Provisions of the Investment Company Act
of 1940. Management is responsible for the Company's compliance with those
provisions. Our responsibility is to express an opinion on management's
assertion about the Company's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Company's
compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances. Included among our procedures
were the following tests performed as of January 7, 2000, and for the
period September 30, 1999, through January 7, 2000, with respect to
securities of MACC Private Equities Inc., without prior notice to
management:
- Count and inspection of all securities located in the vault of Brenton
Bank and Trust Company in Cedar Rapids, Iowa; and
- Reconciliation of all such securities to the books and records of the
Company.
- Test of selected security transactions since the date of our last
report.
We believe that our examination provides a reasonable basis for our
opinion. Our examination does not provide a legal determination on the
Company's compliance with specified requirements.
In our opinion, management's assertion that MACC Private Equities Inc. was
in compliance with the provisions of subsections (b) and (c) of Rule 17f-2
of the Investment Company Act of 1940 as of January 7, 2000, and for the
period from September 30, 1999, (prior report date) through January 7,
2000, is fairly stated in all material respects.
This report is intended solely for the information and use of management of
MACC Private Equities Inc. and the Securities and Exchange Commission and
should not be used for any other purpose and is not intended to be and
should not be used by anyone other than these specified parties.
/s/ KPMG LLP
Des Moines, Iowa
January 7, 2000
