Exhibit 15

The Board of Directors and Shareholders
Allied Capital Corporation and Subsidiaries:


Re: Registration Statement Nos. 333-45525 and 333-13584


Ladies and Gentlemen:

With respect to the subject registration statements, we acknowledge our
awareness of the use therein of our report dated October 21, 2002 related to our
review of interim financial information.

Pursuant to Rule 436 under the Securities Act of 1933 (the Act), such report is
not considered part of a registration statement prepared or certified by an
accountant, or a report prepared or certified by an accountant within the
meaning of Sections 7 and 11 of the Act.

                                                       /s/ KPMG LLP

Washington, D.C.
November 14, 2002