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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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SIGNATURE JOHN E DENNEEN
TITLE SECRETARY
<TABLE> <S> <C>
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<CIK> 0001006387
<NAME> ROYCE CAPITAL FUND, INC.
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<NAME> ROYCE PREMIER PORTFOLIO
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<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 34
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 752
<AVERAGE-NET-ASSETS> 249983
<PER-SHARE-NAV-BEGIN> 5
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.01
<EXPENSE-RATIO> 1.99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001006387
<NAME> ROYCE CAPITAL FUND, INC.
<SERIES>
<NUMBER> 2
<NAME> ROYCE MICRO-CAP PORTFOLIO
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 67254
<INVESTMENTS-AT-VALUE> 67784
<RECEIVABLES> 650
<ASSETS-OTHER> 229155
<OTHER-ITEMS-ASSETS> 9973
<TOTAL-ASSETS> 307562
<PAYABLE-FOR-SECURITIES> 46409
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10691
<TOTAL-LIABILITIES> 57100
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 249882
<SHARES-COMMON-STOCK> 50
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 530
<NET-ASSETS> 250462
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 68
<NET-INVESTMENT-INCOME> (68)
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<APPREC-INCREASE-CURRENT> 530
<NET-CHANGE-FROM-OPS> 462
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<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 250000
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 250462
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 51
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 769
<AVERAGE-NET-ASSETS> 250312
<PER-SHARE-NAV-BEGIN> 5.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
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<EXPENSE-RATIO> 1.99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
To the Board of Trustees of Royce Capital Fund and
Shareholders of Royce Capital Fund (Micro-Cap and Premier Portfolios):
We have audited the accompanying statements of assets
and liabilities of Royce Capital Fund, including the schedules of
investments as of December 31, 1996, the related statements of operations
and changes in net assets, and the financial highlights for the period from
December 27, 1996 (commencement of operations) to December 31, 1996. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audit 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 and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedues included confirmation of
securities owned as of December 31, 1996, by correspondence with the
custodian and brokers. 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Royce Capital Fund (Micro-Cap and Premier portfolios) as of December 31, 1996,
the results of their operations and changes in their net assets, and the
financial highlights for the period from December 27, 1996 (commencement of
operations) to December 31, 1996, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 14, 1997
