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 September 30, 2003, 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 September 30, 2003, and during the period
August 28, 2003 (the date of our last similar examination) through September 30,
2003, 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 conducted in accordance with attestation 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 September 30, 2003 and for the period
August 28, 2003 through September 30, 2003, with respect to securities of MACC
Private Equities Inc.:

o    Count and inspection of all securities located in the vault of Wells
     Fargo Bank Iowa, N.A. in Cedar Rapids, Iowa

o    Reconciliation of all such securities to the books and records of the
     Company

o    Confirmation 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 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 September 30, 2003 and for the period from
August 28, 2003 (prior report date) through September 30, 2003, 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, IA
September 30, 2003