EXHIBIT 13.1
                       Equipment Asset Recovery Fund, L.P.
                               1999 ANNUAL REPORT
<PAGE>


--------------------------------------------------------------------------------
                              MESSAGE TO INVESTORS
--------------------------------------------------------------------------------




Presented for your review is the 1999 Annual Report for Equipment Asset Recovery
Fund, L.P. (the "Partnership"), which includes the Partnership's audited
consolidated financial statements for the year ended December 31, 1999.

In late 1996, the Partnership, together with DSC Venture and SFN Corporation,
sold its fleet of heavy-lift cranes, related equipment and existing customer
crane rental agreements. While the General Partners would like to expedite the
liquidation process, the Partnership cannot be terminated until the litigation
discussed below is resolved, and any potential Partnership liabilities are
determined.

As discussed in previous correspondence, in June 1997, a purported class action
suit was commenced in the District Court for Harris County, Texas (the "Court")
by a limited partner, who acquired interests through a tender offer, against the
General Partners, the Partnership (a nominal defendant) and others
(collectively, the "Defendants"). The lawsuit made a number of allegations. The
Defendants filed a Motion for Summary Judgment and a partial summary judgment
was granted by the Court in March 1998. In August 1998, the Court heard a Motion
for Summary Judgment (the "Motion") filed by a co-defendant. Although the Motion
was taken under consideration, the judge recused herself before ruling. The case
was then reassigned to another judge, and a hearing was held on the Motion in
March 1999 with the Court granting the Motion in part and overruling it in part.
The Court conducted a scheduling conference in May 1999 and a trial date of May
8, 2000 has been set. The Defendants believe the remaining allegations in this
litigation are without merit and intend to defend the action vigorously.

It is uncertain at this time what impact the pending class action suit will have
on the amount of the final liquidating distribution to investors or on the
timing of the Partnership's liquidation. We will update you on the status of the
litigation and the Partnership's liquidation process in future reports. In the
interim, should you have any questions regarding the Partnership, you may
contact your Financial Consultant or Partnership Investor Services. All requests
for a change of address or transfer should be submitted in writing to the
Partnership's administrative agent at P.O. Box 7090, Troy, MI 48007-7090.
Partnership Investor Services can be reached at (617) 342-4225, and the
Partnership's administrative agent can be reached at (248) 637-7900.


Very truly yours,



Michael T. Marron                     Steven A. Webster
President                             General Partner
Equipment Management Inc.
General Partner



March 30, 2000

                                                                              1
<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
                                                                    At December 31,   At December 31,
                                                                              1999              1998
----------------------------------------------------------------------------------------------------
<S>                                                                     <C>               <C>
Assets
Cash and cash equivalents                                               $1,453,153        $1,585,699
----------------------------------------------------------------------------------------------------
      Total Assets                                                      $1,453,153        $1,585,699
====================================================================================================
Liabilities and Partners' Capital
Liabilities:
  Accounts payable and accrued expenses                                 $1,640,467        $1,566,319
                                                                        ----------------------------
      Total Liabilities                                                  1,640,467         1,566,319
                                                                        ----------------------------
Partners' Capital:
  General Partners                                                        (187,314)              775
  Limited Partners                                                              --            18,412
  Special Limited Partner                                                       --               193
                                                                        ----------------------------
      Total Partners' Capital                                             (187,314)           19,380
----------------------------------------------------------------------------------------------------
      Total Liabilities and Partners' Capital                           $1,453,153        $1,585,699
====================================================================================================
</TABLE>


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
For the years ended December 31, 1999, 1998 and 1997
                                                                             Special
                                              General        Limited         Limited
                                             Partners       Partners         Partner           Total
----------------------------------------------------------------------------------------------------
<S>                                         <C>            <C>             <C>             <C>
Balance at December 31, 1996                $  34,053      $ 808,769       $   8,513       $ 851,335
Net Loss                                      (21,867)      (519,348)         (5,467)       (546,682)
----------------------------------------------------------------------------------------------------
Balance at December 31, 1997                   12,186        289,421           3,046         304,653
Net Loss                                      (11,411)      (271,009)         (2,853)       (285,273)
----------------------------------------------------------------------------------------------------
Balance at December 31, 1998                      775         18,412             193          19,380
Net Loss                                     (188,089)       (18,412)           (193)      (206,694)
----------------------------------------------------------------------------------------------------
Balance at December 31, 1999                $(187,314)     $      --       $      --       $(187,314)
====================================================================================================
</TABLE>

See accompanying notes to the consolidated financial statements.              2
<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
For the years ended December 31,
                                                                1999            1998            1997
----------------------------------------------------------------------------------------------------
<S>                                                        <C>             <C>             <C>
Income
Interest                                                   $  74,907       $ 149,352       $ 213,557
Other                                                             --              --           5,662
                                                           -----------------------------------------
      Total Income                                            74,907         149,352         219,219
----------------------------------------------------------------------------------------------------
Expenses
General, selling and administrative                          281,601         434,625         652,514
                                                           -----------------------------------------
      Total Expenses                                         281,601         434,625         652,514
                                                           -----------------------------------------
Loss from Operations                                        (206,694)       (285,273)       (433,295)
----------------------------------------------------------------------------------------------------
Net Loss before Minority Interest
  and Benefit from Income Taxes                             (206,694)       (285,273)       (433,295)
Minority Interest                                                 --              --        (492,868)
                                                           -----------------------------------------
Net Loss before Benefit from
  Income Taxes                                              (206,694)       (285,273)       (926,163)
Benefit from income taxes                                         --              --         379,481
----------------------------------------------------------------------------------------------------
      Net Loss                                             $(206,694)      $(285,273)      $(546,682)
====================================================================================================
Net Loss Allocated:
To the General Partners                                    $(188,089)      $ (11,411)      $ (21,867)
To the Limited Partners                                      (18,412)       (271,009)       (519,348)
To the Special Limited Partner                                  (193)         (2,853)         (5,467)
----------------------------------------------------------------------------------------------------
                                                           $(206,694)      $(285,273)      $(546,682)
====================================================================================================
Per limited partnership unit
(32,722 outstanding)                                          $ (.56)        $ (8.28)       $ (15.87)
----------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to the consolidated financial statements.              3

<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31,
                                                                1999            1998            1997
----------------------------------------------------------------------------------------------------
<S>                                                     <C>              <C>             <C>
Cash Flows From Operating Activities
Net Loss                                                $   (206,694)    $  (285,273)    $  (546,682)
Adjustments to reconcile net loss to net cash
used for operating activities:
  Minority interest                                               --              --          46,868
  Increase (decrease) in cash arising from
  changes in operating assets and liabilities:
    Accounts receivable, net                                      --              --         173,415
    Other assets                                                  --              --         193,397
    Accounts payable and accrued expenses                     74,148         (38,927)       (140,499)
    Management fee payable                                        --              --      (1,445,685)
    Income taxes payable                                          --              --        (624,065)
                                                        --------------------------------------------
Net cash used for operating activities                      (132,546)       (324,200)     (2,343,251)
----------------------------------------------------------------------------------------------------
Cash Flows From Financing Activities
  Distributions paid to minority interest                         --              --        (631,181)
  Distributions paid to partners                                  --              --     (10,333,264)
                                                        --------------------------------------------
Net cash used for financing activities                            --              --     (10,964,445)
----------------------------------------------------------------------------------------------------
Net decrease in cash and cash equivalents                   (132,546)       (324,200)    (13,307,696)
Cash and cash equivalents, beginning of year               1,585,699       1,909,899      15,217,595
                                                        --------------------------------------------
Cash and cash equivalents, end of year                  $  1,453,153    $  1,585,699    $  1,909,899
====================================================================================================
Supplemental Disclosure of Cash Flow Information
Cash paid during the year for taxes                     $         --    $         --    $    615,520
----------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to the consolidated financial statements.              4

<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1999, 1998 and 1997

1.  Organization
Equipment Asset Recovery Fund, L.P. (the "Partnership"), formerly Hutton Asset
Recovery Fund, was organized as a Limited Partnership under the laws of Texas
pursuant to a Certificate and Agreement of Limited Partnership (the "Partnership
Agreement") dated and filed October 27, 1983. The Partnership was inactive from
its inception through December 1983. The Partnership was formed for the primary
purpose of acquiring, operating, leasing and selling various types of assets.

Equipment Management, Inc. ("EMI"), formerly Hutton Equipment Management,
Inc., an affiliate of Lehman Brothers Inc., and Steven A. Webster are the
General Partners of the Partnership.  On July 31, 1993, certain of Shearson
Lehman Brothers Inc.'s domestic retail brokerage and management businesses
were sold to Smith Barney, Harris Upham & Co. Inc.  Included in the purchase
was the name "Hutton."  Consequently, the Hutton Equipment Management, Inc.
General Partner's and the Partnership's names were changed to delete any
reference to "Hutton."  San Felipe Investors, a Texas general partnership, is
the Special Limited Partner.

At December 31, 1999, the Partnership consisted of a 99% owned consolidated
venture, DSC Venture ("DSC"). SFN Corporation ("SFN"), in which the Partnership
had held a 51% controlling interest, liquidated in January 1997.

On November 27, 1996, the Partnership, DSC and SFN completed a bulk sale of
their remaining equipment assets for $15,900,000. The Partnership received net
proceeds of $2,772,051 for its crane fleet and $7,366,940 in a distribution from
its interests in DSC. The Partnership also received $1,938,000 in management
fees from SFN during 1996 and $459,000 in January 1997. In addition, the
Partnership received initial liquidating distributions of approximately $552,138
from SFN in February 1997 and received a further distribution of $204,000 in
September 1997. The Partnership expects to receive a final liquidating
distribution from its interest in SFN pending resolution of litigation
outstanding (see Note 8). The amount of such distribution will be dependent on
any costs relating to the litigation incurred by SFN. The General Partners
declared a special cash distribution to unitholders of record as of November 27,
1996 in the amount of $10,333,264 ($300 per limited partnership Unit). The
remaining sales proceeds, with the Partnership's cash, will first be used to
provide for all liabilities and obligations of the Partnership through
termination (including expenses associated with the pending litigation as
discussed in Note 8), following which any remaining amounts will be distributed
to the partners upon the termination of the Partnership.

2.  Significant Accounting Policies

Basis of Accounting  The accompanying consolidated financial statements have
been prepared on the accrual basis of accounting in accordance with generally
accepted accounting principles. Revenues were recognized as earned and expenses
were recorded as obligations were incurred.

Cash Equivalents  Cash equivalents consist of highly liquid short-term
investments with maturities of three months or less from the date of issuance.
The carrying amount approximates fair value because of the short maturity of
these instruments.

Concentration of Credit Risk  Financial instruments which potentially subject
the Partnership to a concentration of credit risk principally consist of cash in
excess of the financial institutions' insurance limits. The Partnership invests
available cash with high credit quality financial institutions.

                                                                              5
<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


Income Taxes  No provision for income taxes has been made in the consolidated
financial statements for the Partnership and DSC since these taxes are the
responsibility of the individual partners or co-venturers rather than that of
the Partnership or DSC. However, an income tax provision or benefit has been
included in the accompanying consolidated financial statements related to the
Partnership's corporate consolidated subsidiary, SFN, which is a separate
taxable entity.

Use of Estimates  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates.

3.  Partnership Allocations
Partnership income and losses will be allocated and net cash will be distributed
4% to the General Partners, 1% to the Special Limited Partner and 95% to the
Limited Partners until each of the Limited Partners has received cash equal to
his or her capital contribution plus an 8% annual cumulative return thereon.
Thereafter, such items will be distributed 85% to the Limited Partners, 12.5% to
the General Partners and 2.5% to the Special Limited Partner.

The amount of any net loss of the Partnership, which would be allocable to the
Limited Partners and the Special Limited Partner in excess of a positive capital
account, is allocated to the General Partners in proportion to their relative
interests in the Partnership.

The gains on the sales of cranes were first allocated proportionately to the
Partners who had negative capital accounts to restore these accounts to zero and
then in accordance with the aforementioned percentages.

4.  Joint Venture
In accordance with the October 1984 Joint Venture Agreement between the
Partnership and Dayton-Scott Corporation ("Dayton-Scott"), the Partnership
contributed $2,500,000 in cash for a 50% interest in DSC. Dayton-Scott
contributed forty-nine crawler-type cranes and seven crane attachments ("DSC
cranes"), together with all of its other assets, in exchange for assumption of
its outstanding nonrecourse Loan and Security Agreement with Security Pacific
Business Credit, Inc. ("SPBC") and a 50% interest in DSC. Subsequently, the
Partnership wrote off its initial $2,500,000 investment in DSC and additional
capital contributions of $100,000 in 1984 and $121,788 in 1986.

In April 1987, Dayton-Scott sold its entire 50% interest in DSC to the
Partnership (49%) and Dayton-Scott Equipment Company (DSEC) (1%) (the former
manager of the Partnership's construction crane fleet). DSEC subsequently sold
its 1% interest to DRA Management, Inc., an affiliate of EMI. The purchase price
for the additional 49% interest in DSC consisted of $250,000 in cash, assumption
of $15,200,000 in nonrecourse debt and a contingent payment of $250,000 based on
future events and conditions as defined in the purchase and sale agreement.

5.  SFN Corporation
The Partnership acquired 51% of the shares of issued and outstanding Common
Stock of SFN and all of the issued and outstanding shares of nonvoting Class B
Redeemable Preferred Stock of SFN. The Partnership acquired such stock in
consideration for its agreement to cooperate with SFN in connection with SFN's
acquisition of certain assets from SPBC. The Partnership did not contribute any
cash to SFN for the shares of Common Stock and Class B Redeemable Preferred
Stock of SFN, however, the Partnership received a deemed capital account in the
amount of $2,397 for services rendered in connection with this transaction. SFN
was liquidated on January 30, 1997.

                                                                              6
<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


Six individuals, who were affiliated with DSEC, which previously managed the
Equipment (defined below), the cranes owned by DSC, and the cranes owned by the
Partnership, owned the remaining 49% of the shares of Common Stock of SFN. These
individuals contributed cash of approximately $275,000 in the aggregate for 49%
of the issued and outstanding shares of Common Stock and all of the nonvoting
Class A Redeemable Preferred Stock of SFN. This equity contribution was used, in
part, to fund a portion of the purchase price of the SPBC Assets (defined below)
and to pay related transaction costs.

The holders of the Class A Redeemable Preferred Stock were entitled to receive a
single preferred dividend of $275,000 in the aggregate, plus a 10% cumulative
return until such dividend was paid, prior to any distributions being made to
the other stockholders of SFN. The Class B Redeemable Preferred Stock received
by the Partnership entitled the Partnership to receive a single preferred
dividend of 104% of the aggregate amount paid to the holders of the Class A
Redeemable Preferred Stock following the payment of the Class A preferred
dividend. Once these preferred dividends were paid to the holders of the Class A
and Class B Redeemable Preferred Stock, all further distributions were made only
to the holders of the Common Stock of SFN in accordance with the pro rata
percentage ownership of the holders of such Common Stock. All such dividends and
distributions were paid during 1997.

Effective April 30, 1992, SFN acquired all of the secured indebtedness of DSC
from SPBC ("SPBC Debt"). In connection with the acquisition of the SPBC Debt by
SFN, SPBC conveyed the following assets to SFN: (i) six cranes, one ringer, and
one tower (the "Equipment") previously owned by SPBC and leased to DSC pursuant
to an equipment lease ("SPBC Lease"), and (ii) the rights and obligations of
SPBC under a Net Profits Agreement ("Profits Agreement") previously entered into
by and among DSC, SPBC, and the Partnership. The SPBC Debt, Equipment, Lease and
Net Profits Agreement are collectively referred to as the "SPBC Assets."

SFN paid SPBC a total consideration of $10,536,813 for the SPBC Assets,
consisting of $9,536,813 paid in cash at closing and a $1,000,000 subordinated
promissory note ("Subordinated Note") payable to SPBC and secured by a junior
lien on all the assets of SFN. The purchase price for the SPBC Assets was
allocated to the Debt and Equipment based on the relative fair market value at
the date of acquisition.

6.  Construction Cranes
Concurrent with the formation of DSC, the Partnership purchased ten construction
type cranes (the "Partnership cranes") from Dayton-Scott for a cash purchase
price of $1,500,000 and, in 1986, sold one of these construction cranes. In
addition, Dayton-Scott contributed the DSC cranes.

In connection with SFN's acquisition of the DSC promissory notes from SPBC, SPBC
conveyed to SFN the Equipment previously owned by SPBC. The Equipment had been
leased by SPBC to DSC pursuant to the SPBC Lease since April 1987, and SFN
acquired the Equipment subject to the SPBC Lease, as amended on April 30, 1992.

On November 27, 1996, the Partnership, DSC and SFN completed a bulk sale of
their remaining equipment assets. The sales proceeds were used to reduce and
eventually extinguish the Partnership's debt (see Note 1).

DSEC managed and operated the DSC cranes, SFN cranes and the Partnership cranes
(collectively, the "Fleet") pursuant to a management agreement that reimbursed
all expenses related to the operation of the Fleet, including the salaries of
DSEC's employees. The agreement also provided for incentive compensation if
certain revenue goals were attained and commission payments if cranes were sold.
For the year ended December 31, 1997, DSEC was paid incentive management fees
totaling $221,513. No such fees were paid in fiscal 1998 or 1999.

                                                                              7
<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


7.  Transactions with General Partners and Affiliates
The following is a summary of transactions with General Partners and their
affiliates during the years ended December 31, 1999, 1998 and 1997:

<TABLE>
<CAPTION>
                                                Paid          Paid          Paid
                                              During        During        During
                                                1999          1998          1997
-------------------------------------------------------------------------------
<S>                                       <C>           <C>           <C>
Administrative salaries
  and expenses                            $       --    $       --    $   58,192
Management fees                                   --            --     1,224,172
-------------------------------------------------------------------------------
                                          $       --    $       --    $1,282,364
                                          ======================================
</TABLE>

As of June 1986, the General Partners had agreed to defer payment of monthly
management fees in excess of $5,000 until cash flow of the Partnership improved.
On November 20, 1996, the Partnership paid deferred management fees totaling
$1,331,742 to EMI. On February 3, 1997, the Partnership paid to San Felipe
Resources (for the benefit of Mr. Webster) $948,197 and EMI $275,975.

8.  Litigation
On June 4, 1997, a purported class action suit was commenced by a limited
partner who acquired its interest in the Partnership through a tender offer (the
"Plaintiff"), on behalf of, among others, all limited partners of the
Partnership, in the 151st judicial District Court for Harris County, Houston,
Texas against Steven A. Webster, Equipment Management, Inc. (the general
partners of the Partnership), DSC Venture (a Texas joint venture in which the
Partnership owns a 99% interest), Dayton-Scott Equipment Company (the former
manager of the Partnership's construction crane fleet) and SFN Corporation (a
corporation which was owned, in part, by the Partnership, which, in turn, owned
construction cranes which were sold with the balance of the Partnership's crane
fleet in the fourth quarter of 1996) and the Partnership (a Nominal Defendant)
(collectively, the "Defendants"). The petition purports to bring a suit for
breach of fiduciary duty and breach of contract with respect to the management
and sale of the construction crane fleet and related equipment. The Plaintiff
has requested that the court enter a judgment against the Defendants, jointly
and severally, (i) declaring a proper class action; (ii) awarding unspecified
compensatory damages, plus interest, expenses and attorneys fees and (iii)
awarding punitive and exemplary damages. The Defendants filed a Motion for
Summary Judgment and a Partial Summary Judgment was granted by the Court on
March 31, 1998. On August 24, 1998, the Court heard a Motion for Summary
Judgment filed by a co-defendant. That Motion was taken under consideration, but
the judge recused herself before ruling. The case was then reassigned to another
judge and a hearing was held on the Motion on March 8, 1999. The Court granted
the Motion in part and overruled it in part. The Court had a scheduling
conference on May 5, 1999, at which time a trial date of September 20, 1999 was
set. The trial date was subsequently rescheduled to May 8, 2000. The Defendants
believe the remaining allegations in this complaint are without merit and intend
to defend the action vigorously.

9.  Reconciliation of Net Income to Taxable Income
The net income or loss reported in the financial statements for the years ended
December 31, 1999, 1998 and 1997 was less than the net income reported for
federal income tax purposes by approximately $15,000, $62,000 and $2,887,000,
respectively. The differences for each year were primarily the result of
differences between methods of depreciation for book and tax purposes, timing
differences in the recognition of revenues and expenses between book and tax
methods of accounting, differences in the recognition of the Partnership's share
of DSC's income and the treatment of SFN as a separate taxable entity.

                                                                              8
<PAGE>


EQUIPMENT ASSET RECOVERY FUND, L.P.
AND CONSOLIDATED VENTURE AND SUBSIDIARY


10.  Income Taxes (SFN Corporation)
The benefit from income taxes resulted from the Partnership's corporate
consolidated subsidiary, SFN Corporation, which was a separate taxable entity,
and, therefore, had no effect on the limited partners' taxable income or loss
reportable for the year ended December 31, 1997. SFN liquidated in 1997 and
therefore, no provision or benefit for income taxes has been recorded for 1998
(see Note 5).

SFN Corporation's total benefit from income taxes for 1997 differs from that
which would have been calculated using the statutory federal income tax rate due
primarily to recognition of federal income tax benefits carried back to the
prior year and reductions in tax reserves no longer required due to the
liquidation of SFN in 1997.

The benefit from income taxes and tax liability at December 31, 1997 was the
following:

<TABLE>
<CAPTION>
Benefit from Income Taxes                                                   1997
--------------------------------------------------------------------------------
<S>                                                                    <C>
Federal income taxes                                                   $ 369,931
State taxes                                                                9,550
--------------------------------------------------------------------------------
Benefit from income taxes                                              $ 379,481
================================================================================

Tax Liability                                                          $      --
--------------------------------------------------------------------------------
</TABLE>

                                                                              9
<PAGE>


--------------------------------------------------------------------------------
                        REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------




To the Partners of
Equipment Asset Recovery Fund, L.P. and
Consolidated Venture and Subsidiary:

We have audited the accompanying consolidated balance sheets of Equipment Asset
Recovery Fund, L.P. (a Texas limited partnership) and Consolidated Venture and
Subsidiary as of December 31, 1999 and 1998, and the related consolidated
statements of operations, partners' capital (deficit) and cash flows for each of
the three years in the period ended December 31, 1999. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

As described in Note 1 to the consolidated financial statements, the Partnership
sold all of its equipment assets on November 27, 1996. The Partnership
anticipates settling and liquidating its remaining assets and liabilities and
subsequently dissolving the Partnership. The balance sheets presented herein
represent the general partners' estimated net realizable value of all assets and
liabilities as of December 31, 1999 and 1998 and the statements of operations
and cash flows reflect the activities of the Partnership for each of the three
years in the period ended December 31, 1999.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Equipment Asset
Recovery Fund, L.P. and Consolidated Venture and Subsidiary as of December 31,
1999 and 1998, and the results of their operations and their cash flows for each
of the three years in the period ended December 31, 1999, in conformity with
generally accepted accounting principles.

ARTHUR ANDERSEN LLP

Boston, Massachusetts
February 18, 2000

                                                                              10