N-Q 1 e72149.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07537

Name of Fund: Royce Capital Fund
Fund Address: 1414 Avenue of the Americas
New York, NY 10019

Name and address of agent for service:
John E. Denneen, Esq.
Royce & Associates, LLC
1414 Avenue of the Americas
New York, NY 10019

Registrant’s telephone number, including area code: (212) 486-1445

Date of fiscal year end: 12/31/2005

Date of reporting period: 3/31/2005

Item 1 - Schedule of Investments

ROYCE CAPITAL FUND- MICRO-CAP PORTFOLIO
MARCH 31, 2005 (UNAUDITED)

COMMON STOCKS - 85.2%        
    SHARES   VALUE
Consumer Products - 3.7%        
Apparel and Shoes - 0.8%        

Stride Rite

   197,600   $2,628,080
       
Food/Beverage/Tobacco - 1.2%        

Boston Beer Company Cl. A a

   37,900   830,010

CoolBrands International a

   258,300   1,910,961

Green Mountain Coffee Roasters a

   31,600   758,400

Monterey Gourmet Foods a

   198,100   633,920
       
        4,133,291
       
Sports and Recreation - 0.8%        

Arctic Cat

   42,500   1,150,050

Thor Industries

   46,200   1,381,842
       
        2,531,892
       
Other Consumer Products - 0.9%        

RC2 Corporation a,c

   90,000   3,060,000
       
Total       12,353,263
       
Consumer Services - 6.2%        
Direct Marketing - 0.4%        

J. Jill Group a,c

   104,900   1,443,424
       
Leisure and Entertainment - 1.6%        

4Kids Entertainment a,c

   43,000   950,730

Multimedia Games a,c

   186,700   1,448,792

New Frontier Media a

   310,900   2,224,179

Steiner Leisure a,c

   24,900   813,981
       
        5,437,682
       
Restaurants and Lodgings - 0.7%        

Benihana Cl. A a

   73,145   1,108,878

California Pizza Kitchen a

   55,500   1,300,920
       
        2,409,798
       
Retail Stores - 3.3%        

Brookstone a

   110,695   1,795,473

Buckle (The)

   52,900   1,846,739

Cache a

   132,500   1,795,375

Cato Corporation Cl. A

   83,000   2,676,750

Charlotte Russe Holding a

   118,000   1,524,560

Sport Chalet a

   100,000   1,355,100
       
        10,993,997
       
Other Consumer Services - 0.2%        

First Cash Financial Services a

   23,000   486,910
       
Total       20,771,811
       
         
Financial Intermediaries - 4.4%        
Banking - 0.8%        

Bancorp (The) a

   86,525   1,211,350

Canadian Western Bank

   75,400   1,595,569
       
        2,806,919
       
Insurance - 3.6%        

American Safety Insurance Holdings a

   136,200   2,029,380

Argonaut Group a

   117,000   2,482,740

NYMAGIC

   80,900   1,917,330

Navigators Group a,c

   56,300   1,866,064

PXRE Group

   67,000   1,718,550

United Fire & Casualty Company

   60,000   2,029,800
       
        12,043,864
       
Total       14,850,783
       
         
Financial Services - 0.4%        
Other Financial Services - 0.4%        

Electro Rent a

   103,300   1,386,286
       
Total       1,386,286
       
Health - 16.5%        
Commercial Services - 1.8%        

Discovery Partners International a

   437,700   1,400,640

First Consulting Group a,c

   335,800   1,746,160

Hooper Holmes

   363,700   1,389,334

TriZetto Group (The) a,c

   149,900   1,395,569
       
        5,931,703
       
Drugs and Biotech - 7.0%        

Able Laboratories a,c

   60,000   1,407,600

BioSource International a

   177,000   1,288,560

CancerVax Corporation a,c

   70,500   464,595

Cardiome Pharma a

   70,000   434,000

Cell Genesys a,c

   163,500   740,655

Cell Therapeutics a,c

   65,200   234,068

Cerus Corporation a,c

   345,000   1,059,150

Compugen a

   162,900   653,229

Durect Corporation a,c

   395,048   1,437,975

DUSA Pharmaceuticals a,c

   130,700   1,141,011

Gene Logic a

   405,200   1,272,328

Lexicon Genetics a

   386,100   1,972,971

Luminex Corporation a,c

   100,000   753,000

Maxygen a,c

   73,000   626,340

Myriad Genetics a,c

   72,400   1,331,436

NeoPharm a,c

   115,700   898,989

Nuvelo a,c

   93,400   607,100

Orchid BioSciences a,c

   174,800   2,055,648

Pharmacyclics a,c

   70,100   562,903

VIVUS a,c

   584,200   1,746,758

Zila a,c

   687,700   2,778,308
       
        23,466,624
       
Health Services - 2.4%        

Albany Molecular Research a,c

   155,500   1,598,540

Bio-Imaging Technologies a,c

   218,900   656,700

Cross Country Healthcare a,c

   78,400   1,313,984

Horizon Health a

   46,500   1,976,250

TLC Vision a

   101,400   960,258

U.S. Physical Therapy a

   116,400   1,627,272
       
        8,133,004
       
Medical Products and Devices - 4.2%        

Adeza Biomedical a

   17,300   210,714

Aksys a,c

   147,600   467,892

Bruker BioSciences a

   666,800   2,347,136

Caliper Life Sciences a

   102,700   662,415

Exactech a,c

   32,800   556,616

NMT Medical a

   103,100   845,420

OrthoLogic Corporation a

   151,000   764,060

Orthofix International a

   31,000   1,213,650

Possis Medical a,c

   203,400   1,702,458

Quinton Cardiology Systems a

   57,200   474,188

Synovis Life Technologies a,c

   75,100   749,498

Viasys Healthcare a

   52,900   1,009,332

Young Innovations

   68,750   2,519,688

Zoll Medical a

   30,500   687,165
       
        14,210,232
       
Personal Care - 1.1%        

Lifeline Systems a

   50,840   1,541,469

Nutraceutical International a

   129,500   2,053,870
       
        3,595,339
       
Total       55,336,902
       
Industrial Products - 7.0%        
Automotive - 0.9%        

Aftermarket Technology a

   50,000   825,000

Spartan Motors

   65,000   653,250

Wescast Industries Cl. A

   62,400   1,484,496
       
        2,962,746
       
Building Systems and Components - 1.9%        

Aaon a

   93,900   1,545,594

Drew Industries a,c

   69,300   2,609,145

LSI Industries

   126,250   1,417,787

Preformed Line Products Company

   27,000   809,730
       
        6,382,256
       
Industrial Components - 0.8%        

DuraSwitch Industries a

   388,400   578,716

Powell Industries a,c

   121,000   2,240,920
       
        2,819,636
       
Machinery - 1.8%        

Cascade Corporation

   52,800   1,848,000

Pason Systems

   111,400   3,485,423

Tennant

   13,100   506,839
       
        5,840,262
       
Metal Fabrication and Distribution - 0.2%        

Gibraltar Industries

   36,600   803,004
       
Specialty Chemicals and Materials - 0.1%        

Hawkins

   35,000   419,300
       
Other Industrial Products - 1.3%        

Color Kinetics a,c

   92,000   927,360

Peerless Manufacturing a

   52,200   728,190

Quixote Corporation

   48,700   1,055,329

Velcro Industries

   131,500   1,739,745
       
        4,450,624
       
Total       23,677,828
       
Industrial Services - 8.8%        
Advertising and Publishing - 0.3%        

MDC Partners Cl. A a

   95,500   908,205
       
Commercial Services - 3.7%        

Bennett Environmental a

   124,100   358,649

Carlisle Holdings a

   509,301   3,376,869

Collectors Universe a,c

   79,107   1,515,690

CorVel Corporation a,c

   51,350   1,094,782

Exponent a

   156,900   3,748,341

RCM Technologies a

   106,300   535,752

RemedyTemp Cl. A a

   93,400   919,990

SM &A a

   100,000   826,000
       
        12,376,073
       
Food and Tobacco Processors - 1.1%        

Omega Protein a

   160,900   1,097,338

Zapata Corporation a

   37,200   2,713,740
       
        3,811,078
       
Printing - 1.0%        

CSS Industries

   22,300   815,065

Courier Corporation

   25,912   1,358,825

Ennis

   60,500   1,023,660
       
        3,197,550
       
Transportation and Logistics - 2.7%        

AirNet Systems a,c

   224,500   1,061,885

Covenant Transport Cl. A a

   65,100   1,145,760

Marten Transport a,c

   81,950   1,747,993

P.A.M. Transportation Services a

   40,000   688,000

Patriot Transportation Holding a

   39,800   2,072,386

Vitran Corporation Cl. A a

   166,950   2,479,208
       
        9,195,232
       
Total       29,488,138
       
Natural Resources - 18.4%        
Energy Services - 8.0%        

Dawson Geophysical a,c

   193,000   4,670,600

Dril-Quip a

   64,500   1,982,730

Enerflex Systems

   48,700   1,065,986

Gulf Island Fabrication

   161,300   3,784,098

GulfMark Offshore a

   103,000   2,668,730

Input/Output a,c

   380,600   2,454,870

NATCO Group Cl. A a

   151,300   1,644,631

RPC

   99,300   1,508,367

Tesco Corporation a,c

   276,600   3,191,964

TETRA Technologies a

   67,650   1,923,966

Total Energy Services a

   287,700   2,009,560
       
        26,905,502
       
Oil and Gas - 2.2%        

Edge Petroleum a,c

   75,700   1,253,592

PetroQuest Energy a

   239,800   1,592,272

Pioneer Drilling Company a

   188,600   2,597,022

Savanna Energy Services a

   116,700   1,834,787
       
        7,277,673
       
Precious Metals and Mining - 8.2%        

Alamos Gold a

   551,000   1,707,998

Apex Silver Mines a,c

   34,000   544,680

Eldorado Gold a

   400,000   1,148,000

Etruscan Resources a

   690,000   855,549

Gammon Lake Resources a

   458,200   2,694,216

Golden Star Resources a,c

   428,000   1,228,360

Metallica Resources a

   2,433,500   3,212,220

Minefinders Corporation a

   297,000   1,983,960

Miramar Mining a

   373,000   399,110

Kingsgate Consolidated

   306,013   534,910

Northern Orion Resources a

   1,361,100   3,947,190

NovaGold Resources a

   371,800   3,089,658

Silver Standard Resources a,c

   143,800   1,665,204

Spur Ventures a

   341,400   451,531

Western Silver a,c

   369,700   3,375,361

Yamana Gold a,c

   172,000   567,600
       
        27,405,547
       
Total       61,588,722
       
Technology - 16.7%        
Aerospace and Defense - 1.3%        

Ducommun a

   102,900   2,058,000

Integral Systems

   96,200   2,208,752
       
        4,266,752
       
Components and Systems - 4.9%        

AlphaSmart a

   186,500   682,590

Excel Technology a,c

   79,300   1,949,194

Lowrance Electronics

   92,500   2,248,675

Metrologic Instruments a,c

   78,500   1,764,680

MOCON

   49,600   450,170

OSI Systems a,c

   103,700   1,815,787

Perceptron a

   147,600   1,166,040

Performance Technologies a

   181,000   1,205,460

Printronix

   20,000   322,000

Richardson Electronics

   231,500   2,377,505

TTM Technologies a,c

   242,800   2,539,688
       
        16,521,789
       
Distribution - 0.2%        

Jaco Electronics a

   190,500   586,740
       
Internet Software and Services - 0.8%        

CryptoLogic

   32,700   1,013,046

EDGAR Online a,c

   245,500   783,145

Inforte Corporation a,c

   148,400   801,360
       
        2,597,551
       
IT Services - 1.2%        

answerthink a,c

   246,200   1,016,806

Forrester Research a

   155,100   2,183,808

PEC Solutions a

   60,000   754,800
       
        3,955,414
       
Semiconductors and Equipment - 2.7%        

Cascade Microtech a

   81,500   782,400

CEVA a,c

   160,400   1,186,960

ESS Technology a,c

   175,000   922,250

FSI International a

   170,100   719,523

Integrated Silicon Solution a,c

   147,000   984,900

PDF Solutions a,c

   102,000   1,428,000

QuickLogic Corporation a,c

   150,800   515,736

Semitool a,c

   151,300   1,543,260

White Electronic Designs a,c

   239,000   1,168,710
       
        9,251,739
       
Software - 3.1%        

Intervideo a

   71,000   781,000

iPass a

   248,500   1,520,820

Kongzhong Corporation ADR a,b,c

   75,800   606,400

PLATO Learning a

   410,658   3,203,132

SPSS a

   87,500   1,521,625

Synplicity a,c

   79,100   443,751

Tengtu International a

   1,487,500   342,125

Transaction Systems Architects Cl. A a

   87,100   2,016,365
       
        10,435,218
       
Telecommunications - 2.5%        

Anaren a

   99,200   1,203,296

Atlantic Tele-Network

   35,300   1,130,306

Brooktrout a

   107,350   1,207,687

Captaris a

   282,000   1,142,100

Globecomm Systems a,c

   252,700   1,503,565

KVH Industries a,c

   50,900   463,699

PC-Tel a,c

   133,600   983,296

Somera Communications a,c

   398,700   633,933
       
        8,267,882
       
Total       55,883,085
       
Miscellaneous - 3.1%        
Total       10,379,166
       
TOTAL COMMON STOCKS        

(Cost $247,435,732)

       285,715,984
       
PREFERRED STOCKS - 0.2%        

United Fire & Casualty Company 6.375% Conv.

   15,000   637,500
       
TOTAL PREFERRED STOCKS        

(Cost $375,000)

       637,500
       
REPURCHASE AGREEMENT - 14.5%        

State Street Bank & Trust Company, 2.30% dated 3/31/05, due 4/1/05, maturity value $48,400,092 (collateralized by Federal Home Loan Mortgage Corp., 1.875% due 2/15/06, valued at $49,611,712)
(Cost $48,397,000)

       48,397,000
       
         
COLLATERAL RECEIVED FOR SECURITIES LOANED - 8.9%        
Money Market Funds        

State Street Navigator Securities Lending

        

Prime Portfolio

       29,928,180
       

(Cost $29,928,180)

       29,928,180
       
TOTAL INVESTMENTS - 108.8%        

(Cost $326,135,912)

       364,678,664
         
LIABILITIES LESS CASH AND OTHER ASSETS - (8.8)%       (29,417,054)
       
         
NET ASSETS - 100.0%       $335,261,610
       


ROYCE CAPITAL FUND- SMALL-CAP PORTFOLIO
MARCH 31, 2005 (UNAUDITED)

COMMON STOCKS - 86.3%        
    SHARES   VALUE
Consumer Products - 17.9%        

Apparel and Shoes - 7.1%

        

Kenneth Cole Productions Cl. A

   73,900   $2,153,446

Cutter & Buck

   85,100   1,193,102

K-Swiss Cl. A

   72,500   2,394,675

Steven Madden a

   50,000   834,500

Polo Ralph Lauren Cl. A

   16,500   640,200

Stride Rite

   142,000   1,888,600
       
        9,104,523
       
Food/Beverage/Tobacco - 0.9%        

Boston Beer Company Cl. A a

   52,500   1,149,750
       
Home Furnishing and Appliances - 5.6%        

American Woodmark

   27,200   986,816

Ethan Allen Interiors

   75,700   2,422,400

Hooker Furniture

   92,900   1,754,881

Stanley Furniture Company

   44,000   2,080,320
       
        7,244,417
       
Sports and Recreation - 1.2%        

Winnebago Industries

   50,600   1,598,960
       
Other Consumer Products - 3.1%        

Blyth

   19,300   614,512

RC2 Corporation a

   43,420   1,476,280

Radica Games

   82,400   679,800

Yankee Candle Company

   39,600   1,255,320
       
        4,025,912
       
Total       23,123,562
       
Consumer Services - 13.8%        
Direct Marketing - 1.7%        

Nu Skin Enterprises Cl. A

   98,300   2,212,733
       
Leisure and Entertainment - 1.6%        

Dover Downs Gaming & Entertainment

   114,000   1,419,300

Multimedia Games a

   83,700   649,512
       
        2,068,812
       
Restaurants and Lodgings - 2.8%        

CBRL Group

   27,800   1,148,140

Ruby Tuesday

   52,800   1,282,512

Ryan’s Restaurant Group a

   81,500   1,184,195
       
        3,614,847
       
Retail Stores - 7.7%        

AnnTaylor Stores a

   44,800   1,146,432

Big Lots a

   64,900   780,098

Buckle (The)

   44,400   1,550,004

Claire’s Stores

   69,700   1,605,888

Electronics Boutique Holdings a

   32,100   1,379,337

GameStop Corporation Cl. B a

   66,200   1,476,260

Pier 1 Imports

   76,100   1,387,303

Talbots

   16,000   511,680
       
        9,837,002
       
Total       17,733,394
       
Financial Intermediaries - 7.8%        
Insurance - 7.0%        

AmerUs Group

   40,200   1,899,450

Aspen Insurance Holdings

   94,500   2,382,345

Erie Indemnity Company Cl. A

   6,400   333,568

Endurance Specialty Holdings

   35,400   1,339,536

PXRE Group

   49,100   1,259,415

ProAssurance Corporation a

   14,100   556,950

Scottish Re Group

   56,500   1,272,380
       
        9,043,644
       
Other Financial Intermediaries - 0.8%        

TSX Group

   19,000   983,964
       
Total       10,027,608
       
Financial Services - 2.6%        
Information and Processing - 1.8%        

eFunds Corporation a

   105,800   2,361,456
       
Investment Management - 0.8%        

Cohen & Steers

   62,200   1,026,300
       
Total       3,387,756
       
Health - 13.0%        
Commercial Services - 0.4%        

AMN Healthcare Services a

   31,409   499,717
       
Drugs and Biotech - 2.8%        

Endo Pharmaceuticals Holdings a

   43,800   987,690

Lexicon Genetics a

   91,300   466,543

Perrigo Company

   111,100   2,127,565
       
        3,581,798
       
Health Services - 6.7%        

AMERIGROUP Corporation a

   35,600   1,301,536

Centene Corporation a

   6,200   185,938

Cross Country Healthcare a

   73,800   1,236,888

Healthcare Services Group

   35,340   856,995

Horizon Health a

   46,000   1,955,000

Molina Healthcare a

   28,300   1,304,347

U.S. Physical Therapy a

   123,700   1,729,326
       
        8,570,030
       
Medical Products and Devices - 0.8%        

Viasys Healthcare a

   54,600   1,041,768
       
Personal Care - 2.3%        

CNS

   88,300   1,571,740

Nutraceutical International a

   90,404   1,433,807
       
        3,005,547
       
Total       16,698,860
       
Industrial Products - 6.2%        
Automotive - 0.8%        

Strattec Security a

   20,600   1,103,748
       
Building Systems and Components - 2.5%        

Drew Industries a

   52,300   1,969,095

Simpson Manufacturing

   39,600   1,223,640
       
        3,192,735
       
Construction Materials - 0.6%        

Florida Rock Industries

   14,400   847,008
       
Machinery - 1.4%        

Lincoln Electric Holdings

   40,000   1,203,200

Woodward Governor Company

   8,200   587,940
       
        1,791,140
       
Metal Fabrication and Distribution - 0.9%        

Gibraltar Industries

   51,000   1,118,940
       
Total       8,053,571
       
Industrial Services - 1.6%        
Commercial Services - 1.6%        

FTI Consulting a

   97,500   2,012,400
       
Total       2,012,400
       
Natural Resources - 8.9%        
Energy Services - 3.3%        

Ensign Resource Service Group

   81,600   1,817,830

Oil States International a

   49,600   1,019,280

Patterson-UTI Energy

   35,400   885,708

TETRA Technologies a

   15,900   452,196
       
        4,175,014
       
Oil and Gas - 4.5%        

Cimarex Energy a

   48,518   1,892,202

St. Mary Land & Exploration Company

   26,400   1,321,320

Unit Corporation a

   57,800   2,610,826
       
        5,824,348
       
Precious Metals and Mining - 1.1%        

Glamis Gold a

   52,300   816,403

Hecla Mining Company a

   116,200   636,776
       
        1,453,179
       
Total       11,452,541
       
Technology - 13.9%        
Components and Systems - 1.6%        

Lowrance Electronics

   27,100   658,801

Neoware Systems a

   49,200   513,156

Rimage Corporation a

   43,954   872,487
       
        2,044,444
       
IT Services - 2.6%        

MAXIMUS

   74,700   2,501,703

Perot Systems Cl. A a

   64,800   870,912
       
        3,372,615
       
Semiconductors and Equipment - 2.2%        

Entegris a

   156,600   1,548,774

OmniVision Technologies a

   83,700   1,268,055
       
        2,816,829
       
Software - 5.7%        

Intervideo a

   151,600   1,667,600

iPass a

   237,800   1,455,336

Sybase a

   110,200   2,034,292

Transaction Systems Architects Cl. A a

   95,200   2,203,880
       
        7,361,108
       
Telecommunications - 1.8%        

Foundry Networks a

   234,200   2,318,580
       
Total       17,913,576
       
         
Miscellaneous - 0.6%        
Total       801,334
       
         
TOTAL COMMON STOCKS        

(Cost $91,214,914)

       111,204,602
       
         
REPURCHASE AGREEMENT - 13.6%        

State Street Bank & Trust Company, 2.30% dated 3/31/05, due 4/1/05, maturity value $17,543,121 (collateralized by Federal Farm Credit Banks, 2.50% due 3/15/06, valued at $17,980,825)
(Cost $17,542,000)

       17,542,000
       
TOTAL INVESTMENTS - 99.9%        

(Cost $108,756,914)

       128,746,602
         
CASH AND OTHER ASSETS LESS LIABILITIES - 0.1%       134,949
       
         
NET ASSETS - 100.0%       $128,881,551
       
a   Non-income producing.
b   American Depository Receipt.
c   A portion of these securities were on loan at March 31, 2005. Total market value of loaned securities
    for Royce Capital Fund-Micro-Cap Portfolio at March 31, 2005 was $29,283,550.
     
    TAX INFORMATION:
    At March 31, 2005, net unrealized appreciation (depreciation) based on identified cost for tax purposes was as follows:

              Net Unrealized   Gross Unrealized        
              Appreciation  
      Tax Basis Cost   (Depreciation)   Appreciation   Depreciation
  Micro-Cap Portfolio   $ 326,201,571     $ 38,477,093     $ 55,609,414     $ 17,132,321  
  Small-Cap Portfolio     108,759,810       19,986,792       21,866,262       1,879,470  
      The primary difference between book and tax basis cost is the timing of the recognition of losses on securities sold for book and tax purposes.
 
  Valuation of investments:
  Securities are valued as of the close of trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date. Securities that trade on an exchange or Nasdaq are valued at their last reported sales price taken from the primary market in which each security trades or, if no sale is reported for such day, at their bid price. Other over-the-counter securities for which market quotations are readily available are valued at their bid price. Securities for which market quotations are not readily available are valued at their fair value under procedures established by the Board of Trustees. Bonds and other fixed income securities may be valued by reference to other securities with comparable ratings, interest rates and maturities, using established independent pricing services.
 
Other information regarding the Fund is available in the Fund’s most recent Prospectus and Report to Shareholders. This information is available through The Royce Funds (www.roycefunds.com) and on the Securities and Exchange Commission’s website (www.sec.gov).

Item 2 - Controls and Procedures

  (a)   The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
       
  (b)   There were no changes in the Registrant’s internal controls over financial reporting during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal controls over financial reporting.

Item 3 - Exhibits

  Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Royce Capital Fund
By: /s/ Charles M. Royce
-------------------------------------

Charles M. Royce
President, Royce Capital Fund
Date: May 23, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Charles M. Royce
-------------------------------------

Charles M. Royce
President, Royce Capital Fund
Date: May 23, 2005

By: /s/ John D. Diederich
-------------------------------------

John D. Diederich
Treasurer, Royce Capital Fund
Date: May 23, 2005