September 24, 1999



Securities and Exchange Commission
Washington, D.C.  20549



Ladies and Gentlemen:

We were previously principal accountants for Point West Capital Corporation and,
under the date of February 27, 1999, we reported on the  consolidated  financial
statements  of Point  West  Capital  Corporation  as of and for the years  ended
December 31, 1998 and 1997. On September 20, 1999 our  appointment  as principal
accountants  was  terminated.  We have read  Point  West  Capital  Corporation's
statement included under Item 4 of its Form 8-K dated September 24, 1999, and we
agree with such  statements,  except  that we are not in a position  to agree or
disagree  with Point West Capital  Corporation's  statement  that the change was
recommended by the Audit  Committee of the Board of Directors.  We are  not in a
position to agree or disagree  with Point West Capital  Corporation's  statement
that Ernst & Young LLP was not engaged  regarding the  application of accounting
principles to a specified transaction or the type of audit opinion that might be
rendered on Point West Capital Corporation's financial statements.


Very truly yours,


/s/ KPMG LLP

Cc:  Mr. J. Ward Rotter
     Chief Financial Officer
     Point West Capital
     1700 Montgomery Street, Suite 250
     San Francisco, CA  94111


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