EXHIBIT 15

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

Ladies and Gentlemen:

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

With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated April 22, 2002 (except as to note 12 which is as of June 10, 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.
June 10, 2002