EXHIBIT 16.1

May 9, 2003



Securities and Exchange Commission
Washington, D.C. 20549


Ladies and Gentlemen:

We are currently  principal  accountants for Capital Southwest  Corporation and,
under the date of April 19,  2002,  we  reported on the  consolidated  financial
statements of Capital Southwest  Corporation as of and for the years ended March
31, 2002 and 2001.  On May 2, 2003,  we were  notified  that  Capital  Southwest
Corporation  engaged Ernst & Young LLP as its principal  accountant for the year
ending  March 31, 2004 and that the  auditor-client  relationship  with KPMG LLP
will  cease upon  completion  of the audit of  Capital  Southwest  Corporation's
consolidated  financial  statements as of and for the year ended March 31, 2003,
and  the  issuance  of our  report  thereon.  We  have  read  Capital  Southwest
Corporation's  statements  included  under  Item 4 of its Form 8-K  dated May 9,
2003, and we agree with such statements, except that we are not in a position to
agree or disagree with Capital Southwest  Corporation's  statement that on April
24,  2003,  the Audit  Committee  of the Board of  Directors  of the  Registrant
unanimously  voted in favor of the  appointment of Ernst & Young LLP to serve as
the  Registrant's  independent  accountant  for the fiscal year ending March 31,
2004 and we are not in a position to agree or disagree  with  Capital  Southwest
Corporation's statement that during the two most recent fiscal years and through
May 9, 2003,  Ernst & Young LLP was not  consulted  regarding  any of the events
described  in Item  304(a)(2)(i)-(ii)  of  Regulation  S-K. We are also not in a
position to agree or disagree  with Capital  Southwest  Corporation's  statement
that the  report to be issued  for March 31,  2003 will most  likely  contain no
adverse opinion or disclaimer of opinion.



Very truly yours,

KPMG LLP