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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000912057-01-008311.txt : 20010328
<SEC-HEADER>0000912057-01-008311.hdr.sgml : 20010328
ACCESSION NUMBER:		0000912057-01-008311
CONFORMED SUBMISSION TYPE:	40-17F2
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20010327

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EQUUS II INC
		CENTRAL INDEX KEY:			0000878932
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		IRS NUMBER:				760345915
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		40-17F2
		SEC ACT:		
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		1579670

	BUSINESS ADDRESS:	
		STREET 1:		2929 ALLEN PKWY STE 2500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77019
		BUSINESS PHONE:		7135290900

	MAIL ADDRESS:	
		STREET 1:		2929 ALLEN PARKWAY
		STREET 2:		STE 2500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77019
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-17F2
<SEQUENCE>1
<FILENAME>a2043081z40-17f2.txt
<DESCRIPTION>40-17F2
<TEXT>


<PAGE>

                          INDEPENDENT AUDITOR'S REPORT


To the Board of Directors of
Equus II Incorporated

We have examined management's assertion about Equus II Incorporated (the
Company's) compliance with the requirements of subsections (b) and (c) of
rule 17f-2 under the Investment Company Act of 1940 (the Act) as of December
31, 2000, 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
requirements.  Our responsibility is to express an opinion on management's
assertion about the Company's compliance based on our examination.

Our examination was made in accordance with 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 December 31, 2000:

    -- Count and inspection of all securities located in the vault of Bank
       of America in Houston, Texas

    -- Confirmation of all securities hypothecated, pledged, placed in escrow,
       or out for transfer with brokers, pledgees, or transfer agents

    -- Reconciliation of all such securities to the books and records of the
       Company and the Custodian

We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Company's
compliance with specified requirements.

In our opinion, management's assertion that Equus II Incorporated was in
compliance with the requirements of subsections (b) and (c) of rule 17f-2 of
the Investment Company Act of 1940 as of December 31, 2000, with respect to
securities reflected in the investment account of the Company is fairly
stated, in all material respects.

This report is intended solely for the information and use of management of
Equus II Incorporated and the Securities and Exchange Commission and should
not be used for any other purpose.

/s/ ARTHUR ANDERSEN LLP

ARTHUR ANDERSEN LLP

Houston, Texas
December 31, 2000

<PAGE>

MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS OF THE
INVESTMENT COMPANY ACT OF 1940



We, as members of management of Equus II Incorporated (the "Company"), are
responsible for complying with the requirements of subsections (b) and (c)
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also responsible
for establishing and maintaining effective internal controls over compliance
with those requirements.  We have performed an evaluation of the Company's
compliance with the requirements of subsections (b) and (c) of Rule 17f-2 as
of December 31, 2000 and from November 30, 2000 through December 31, 2000.

Based on this evaluation, we assert that the Company was in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of December 31, 2000 and from November 30, 2000
through December 31, 2000, with respect to securities reflected in the
investment account of the Company.

Equus II Incorporated

By:  /s/ Nolan Lehmann
     -----------------
     Nolan Lehmann
     President

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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