<PAGE>   1
                                   FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 20549


(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE 
                                 ACT OF 1934

For the quarterly period ended             September 30, 1996
                              -------------------------------------------------

                                      OR

           [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                       to                         
                              -----------------------  -------------------------

Commission file number                         0-17737
                       --------------------------------------------------------


                       Fiduciary Capital Partners, L.P.
            ------------------------------------------------------
            (Exact name of registrant as specified in its charter)



              Delaware                             86-0653600
              --------                             ----------
         (State of organization)                 (I.R.S. Employer
                                                 Identification No.)



             410 17th Street
                Suite 400
           Denver, Colorado                          80202
           ----------------                          -----
         (Address of principal                     (Zip Code)
          executive offices)


       Registrant's telephone number, including area code (800) 866-7607
                                                          ---------------


         Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes   X    No     .
                                                   -----    -----









<PAGE>   2



                       Fiduciary Capital Partners, L.P.
                     Quarterly Report on Form 10-Q for the
                       Quarter Ended September 30, 1996




                               Table of Contents


                                                                           Page
Part I.         FINANCIAL INFORMATION

                Item 1     Financial Statements (unaudited)                 3

                           Schedule of Investments -
                           September 30, 1996                               3

                           Balance Sheets - September 30, 1996  and
                           December 31, 1995                                5

                           Statements of Operations for the three
                           months ended September 30, 1996  and 1995        6

                           Statements of Operations for the nine
                           months ended September 30, 1996  and 1995        7

                           Statements of Cash Flows for the nine
                           months ended September 30, 1996  and 1995        8

                           Statements of Changes in Net Assets for
                           the nine months ended September 30, 1996  and
                           for the year ended December 31, 1995             9

                           Selected Per Unit Data and Ratios               10

                           Notes to Financial Statements                   11

                Item 2.    Management's Discussion and Analysis
                           of Financial Condition and Results of
                           Operations                                      14


  Part II         OTHER INFORMATION

                  Item 1.  Legal Proceedings                               20

                  Item 6.  Exhibits and Reports on Form 8-K                21








                                       2

<PAGE>   3

                       FIDUCIARY CAPITAL PARTNERS, L.P.

                                BALANCE SHEETS

                   SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
                                  (unaudited)


<TABLE>
<CAPTION>
                                                   1996              1995
                                                   ----              ----
<S>                                             <C>             <C>         
ASSETS:

   Investments (Note 5):
     Portfolio investments, at value :
       Managed companies (amortized cost -
         $16,259,881 and $16,677,145,
         respectively)                          $ 16,661,341    $ 13,401,816
     Temporary investments, at amortized cost      6,642,537      10,396,792
                                                ------------    ------------
       Total investments                          23,303,878      23,798,608
   Cash and cash equivalents                         358,042         200,969
   Accrued interest receivable (Note 5)              334,558         140,490
   Other assets                                        2,838           3,206
                                                ------------    ------------
       Total assets                             $ 23,999,316    $ 24,143,273
                                                ============    ============

LIABILITIES:

   Payable to affiliates (Notes 2, 3 and 4)     $     57,496    $     60,372
   Accounts payable and accrued liabilities          467,145          33,177
   Distributions payable to partners                 426,438         426,438
                                                ------------    ------------

     Total liabilities                               951,079         519,987
                                                ------------    ------------

CONTINGENCIES (Notes 5 and 6)

NET ASSETS:

   Managing General Partner                           (9,475)         (3,725)
   Limited Partners (equivalent to $16.39
     and $16.79, respectively, per limited
     partnership unit based on 1,407,244
     units outstanding)                           23,057,712      23,627,011
                                                ------------    ------------

       Net assets                                 23,048,237      23,623,286
                                                ------------    ------------

         Total liabilities and net assets       $ 23,999,316    $ 24,143,273
                                                ============    ============
</TABLE>












             The accompanying notes to financial statements are an
                 integral part of these financial statements.

                                       5
<PAGE>   4


                       FIDUCIARY CAPITAL PARTNERS, L.P.

                           STATEMENTS OF OPERATIONS

            FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                  (unaudited)



<TABLE>
<CAPTION>
                                                 1996          1995
                                                 ----          ----
<S>                                             <C>          <C>      
INVESTMENT INCOME:

   Income:
     Interest                                   $ 491,818    $ 747,069
                                                ---------    ---------

       Total investment income                    491,818      747,069
                                                ---------    ---------


   Expenses:
     Investment advisory fees (Note 2)             41,887       58,354
     Professional fees                             30,332       16,507
     Fund administration fees (Note 3)             35,843       35,843
     Administrative expenses (Note 3)              20,275       20,275
     Independent General Partner fees
       and expenses (Note 4)                       12,693       12,452
     Other expenses                                 9,048        7,945
     Amortization                                    --          2,790
                                                ---------    ---------

       Total expenses                             150,078      154,166
                                                ---------    ---------

NET INVESTMENT INCOME                             341,740      592,903
                                                ---------    ---------

REALIZED AND UNREALIZED
   GAIN (LOSS) ON INVESTMENTS:

     Net realized (loss) gain on investments,
       including accrual for potential
       litigation settlement (Note 5)            (409,453)     640,078
     Net change in unrealized gain (loss)
       on investments                              46,029     (343,821)
                                                ---------    ---------

          Net (loss) gain on investments         (363,424)     296,257
                                                ---------    ---------

NET (DECREASE) INCREASE IN NET ASSETS
   RESULTING FROM OPERATIONS                    $ (21,684)   $ 889,160
                                                =========    =========
</TABLE>









             The accompanying notes to financial statements are an
                 integral part of these financial statements.

                                       6
<PAGE>   5


                       FIDUCIARY CAPITAL PARTNERS, L.P.

                           STATEMENTS OF OPERATIONS

             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                  (unaudited)



<TABLE>
<CAPTION>
                                                   1996            1995
                                                   ----            ----
<S>                                             <C>            <C>        
INVESTMENT INCOME:

   Income:
     Interest                                   $ 1,472,041    $ 2,180,244
                                                -----------    -----------

       Total investment income                    1,472,041      2,180,244
                                                -----------    -----------


   Expenses:
     Investment advisory fees (Note 2)              132,497        175,060
     Professional fees                              111,956         48,948
     Fund administration fees (Note 3)              107,528        107,528
     Administrative expenses (Note 3)                60,828         60,828
     Independent General Partner fees
       and expenses (Note 4)                         44,636         45,398
     Other expenses                                  38,253         25,846
     Amortization                                      --            8,370
                                                -----------    -----------

       Total expenses                               495,698        471,978
                                                -----------    -----------

NET INVESTMENT INCOME                               976,343      1,708,266
                                                -----------    -----------

REALIZED AND UNREALIZED
   GAIN (LOSS) ON INVESTMENTS:

     Net realized (loss) gain on investments,
       including accrual for potential
       litigation settlement (Note 5)            (3,948,869)     3,039,855
     Net change in unrealized gain (loss)
       on investments                             3,676,789     (1,071,059)
                                                -----------    -----------

          Net (loss) gain on investments           (272,080)     1,968,796
                                                -----------    -----------

NET INCREASE IN NET ASSETS
   RESULTING FROM OPERATIONS                    $   704,263    $ 3,677,062
                                                ===========    ===========
</TABLE>








             The accompanying notes to financial statements are an
                 integral part of these financial statements.

                                       7
<PAGE>   6


                       FIDUCIARY CAPITAL PARTNERS, L.P.

                           STATEMENTS OF CASH FLOWS

             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                  (unaudited)


<TABLE>
<CAPTION>
                                                                         1996           1995
                                                                         ----           ----
<S>                                                                  <C>            <C>        
CASH FLOWS FROM OPERATING ACTIVITIES:

   Net increase in net assets resulting from operations              $   704,263    $ 3,677,062
   Adjustments to reconcile net increase in net assets resulting
     from operations to net cash provided by operating activities:
       Accreted discount on portfolio investments                        (41,864)       (66,686)
       Amortization                                                         --            8,370
       Change in assets and liabilities:
         Accrued interest receivable                                    (194,068)      (213,062)
         Other assets                                                        368            901
         Payable to affiliates                                            (2,876)         4,479
         Accounts payable and accrued liabilities                          4,595         (7,268)
         Prepaid interest income                                            --          (60,146)
       Net realized loss (gain) on investments,
         including accrual for potential
         litigation settlement                                         3,948,869     (3,039,855)
       Net change in unrealized (gain) loss
         on investments                                               (3,676,789)     1,071,059
                                                                     -----------    -----------
           Net cash provided by operating activities                     742,498      1,374,854
                                                                     -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

   Purchase of portfolio investments                                  (4,400,998)    (3,198,810)
   Proceeds from dispositions of portfolio investments                 1,340,631      4,729,027
   Sale (purchase) of temporary investments, net                       3,754,255     (1,218,340)
                                                                     -----------    -----------
     Net cash provided by investing activities                           693,888        311,877
                                                                     -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Cash distributions paid to partners                                (1,279,313)    (1,619,492)
                                                                     -----------    -----------
     Net cash used in financing activities                            (1,279,313)    (1,619,492)
                                                                     -----------    -----------

NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                                                  157,073         67,239

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                                                   200,969        171,999
                                                                     -----------    -----------

CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                                     $   358,042    $   239,238
                                                                     ===========    ===========
</TABLE>






             The accompanying notes to financial statements are an
                 integral part of these financial statements.

                                       8
<PAGE>   7


                       FIDUCIARY CAPITAL PARTNERS, L.P.

                      STATEMENTS OF CHANGES IN NET ASSETS

                 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996

                   AND FOR THE YEAR ENDED DECEMBER 31, 1995
                                  (unaudited)



<TABLE>
<CAPTION>
                                                        1996               1995
                                                        ----               ----
<S>                                                 <C>             <C>         
Increase in net assets resulting from operations:
   Net investment income                            $    976,343    $  2,037,186
   Net realized (loss) gain on investments,
     including accrual for potential
     litigation settlement                            (3,948,869)      4,588,421
   Net change in unrealized gain (loss)
     on investments                                    3,676,789      (7,180,010)
                                                    ------------    ------------
       Net increase (decrease) in net assets
         resulting from operations                       704,263        (554,403)

Repurchase of limited partnership units                     --        (2,354,597)

Distributions to partners from-
   Net investment income                              (1,198,956)     (1,814,573)
   Realized gain on investments                          (80,356)           --
                                                    ------------    ------------

     Total decrease in net assets                       (575,049)     (4,723,573)

Net assets:

   Beginning of period                                23,623,286      28,346,859
                                                    ------------    ------------

   End of period (including undistributed
     net investment income of $0
     and $222,613, respectively)                    $ 23,048,237    $ 23,623,286
                                                    ============    ============
</TABLE>











             The accompanying notes to financial statements are an
                 integral part of these financial statements.

                                       9

<PAGE>   8
                       FIDUCIARY CAPITAL PARTNERS, L.P.

                       SELECTED PER UNIT DATA AND RATIOS
                                  (unaudited)


<TABLE>
<CAPTION>
                                                             For the Three Months            For the Nine Months
                                                             Ended September 30,             Ended September 30,
                                                             --------------------            -------------------
                                                             1996           1995             1996           1995
                                                             ----           ----             ----           ----
<S>                                                 <C>             <C>         
Per Unit Data:

   Investment income                                   $         .35     $         .48     $        1.04     $        1.41
   Expenses                                                     (.11)             (.10)             (.35)             (.30)
                                                       -------------     -------------     -------------     -------------
     Net investment income                                       .24               .38               .69              1.11

   Net realized gain (loss) on investments,
     including accrual for potential
     litigation settlement                                      (.29)              .42             (2.78)             1.97

   Net change in unrealized (loss) gain
     on investments                                              .04              (.22)             2.59              (.69)

   Distributions declared to partners                           (.30)             (.30)             (.90)             (.90)
                                                       -------------     -------------     -------------     -------------

     Net (decrease) increase in net asset value                 (.31)              .28              (.40)             1.49

       Net asset value:
         Beginning of period                                   16.70             19.76             16.79             18.55
                                                       -------------     -------------     -------------     -------------
         End of period                                 $       16.39     $       20.04     $       16.39     $       20.04
                                                       =============     =============     =============     =============

Ratios (annualized):
   Ratio of expenses to average net assets                      2.58%             2.03%             2.82%             2.13%
   Ratio of net investment income to
     average net assets                                         5.87%             7.80%             5.55%             7.72%

Number of limited partnership units at end of period       1,407,244         1,526,949         1,407,244         1,526,949
</TABLE>











                The accompanying notes to financial statements
                are an integral part of these selected per unit
                               data and ratios.


                                      10
<PAGE>   9


                       FIDUCIARY CAPITAL PARTNERS, L.P.

                         NOTES TO FINANCIAL STATEMENTS

                              SEPTEMBER 30, 1996
                                  (unaudited)

1.       GENERAL

         The accompanying unaudited interim financial statements include all
adjustments (consisting solely of normal recurring adjustments) which are, in
the opinion of FCM Fiduciary Capital Management Company ("FCM"), the Managing
General Partner of the Fund, necessary to fairly present the financial
position of the Fund as of September 30, 1996 and the results of its
operations, changes in net assets and its cash flows for the periods then
ended.

         These financial statements should be read in conjunction with the
Significant Accounting Policies and other Notes to Financial Statements
included in the Fund's annual audited financial statements for the year ended
December 31, 1995.


2.       INVESTMENT ADVISORY FEES

         As compensation for its services as investment adviser, FCM receives
a subordinated monthly fee at the annual rate of 1% of the Fund's available
capital, as defined in the Partnership Agreement. Investment advisory fees of
$132,497 were paid by the Fund for the nine months ended September 30, 1996.


3.       FUND ADMINISTRATION FEES

         As compensation for its services as fund administrator, FCM receives
a monthly fee at the annual rate of .45% of net proceeds available for
investment, as defined in the Partnership Agreement. Fund administration fees
of $107,528 were paid by the Fund for the nine months ended September 30,
1996. FCM is also reimbursed, subject to various limitations, for
administrative expenses incurred in providing accounting and investor services
to the Fund. The Fund reimbursed FCM for administrative expenses of $60,828
for the nine months ended September 30, 1996.


4.       INDEPENDENT GENERAL PARTNER FEES AND EXPENSES

         As compensation for services rendered to the Fund, each of the
Independent General Partners receives from the Fund and Fiduciary Capital
Pension Partners, L.P., an affiliated fund, (collectively, the "Funds") an
annual fee of $30,000, payable monthly in arrears, together with all
out-of-pocket expenses. Each Fund's allocation of these fees and expenses is
based on the relative number of outstanding Units. Fees and expenses paid by
the Fund for the nine months ended September 30, 1996 totaled $44,636.


5.       PORTFOLIO INVESTMENTS

         Canadian's Holdings, Inc. On October 3, 1996, the Fund commenced an
adversary proceeding in the Canadian's Holdings, Inc. ("Canadian's) Chapter 11
bankruptcy case against Finova Capital Corporation ("Finova"), Benson Selzer
and Joseph Eiger. The complaint seeks a declaratory judgment that sales taxes
collected by Canadian's and turned over to Finova were "trust funds" collected
by Canadian's on behalf of various state tax


                                      11
<PAGE>   10


                       FIDUCIARY CAPITAL PARTNERS, L.P.

                   NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                              SEPTEMBER 30, 1996
                                  (unaudited)

authorities. Through the complaint, the Fund has objected to Finova's secured
claim against Canadian's, which was guaranteed by Benson Selzer and Joseph
Eiger, and seeks to recover the sales tax and certain other amounts for the
benefit of Canadian's bankruptcy estate.

         As a result of this litigation and the issues involved, the Fund
accrued $429,373 for legal costs and possible payments that may be required to
settle the litigation or to fund the payment of Canadian's outstanding sales
tax liabilities. This accrued amount was recorded as a realized loss in the
Fund's Statements of Operations.

         Atlas Environmental, Inc. The companies which Atlas Environmental,
Inc. ("Atlas") acquired with the proceeds of the Fund's subordinated debt
investment have not performed as well as expected, and as a consequence, Atlas
has defaulted on certain financial covenants in its agreements with its senior
lender and with the Fund. The senior lender, the Bank of New York, has reacted
to the covenant defaults by limiting Atlas' availability under its revolving
credit facility and by instructing Atlas not to pay the $134,250 quarterly
interest payments that were due on the Fund's subordinated debt during July
and October 1996. In accordance with the intercreditor agreement between the
Fund and the Bank of New York, the bank can block payments to the Fund for up
to 180 days. During August 1996, the company entered into a letter of intent,
under the terms of which some of the company's businesses would be sold for
cash. This sale, if consummated, would provide cash to pay the Fund's
interest. As a result, the Fund accrued the interest due on the subordinated
debt as of September 30, 1996.

         On November 5, 1996, the purchaser notified Atlas that it wanted to
renegotiate the terms of the transaction, including a reduction in the
purchase price. Atlas management has advised the Fund that they do not expect
to be able to reach agreement with the purchaser and therefore Atlas will
remain in default. Meetings with the Bank of New York have been scheduled for
the week of November 11, 1996 and will include Atlas management and
representatives of Fiduciary Capital. As a result of these developments, it
has now become unlikely that the Fund will collect the accrued interest due on
its subordinated debt investment in the near term. The accrued interest
totaled $243,421 as of September 30, 1996 and the Fund reversed the accrual of
this interest on November 5, 1996.

         LMC Operating  Corp.  The Fund has  committed to provide up to 
$1,967,040  of additional  subordinated debt to LMC Operating Corp. ("LMC"), of
which $983,520 was advanced on November 1, 1996.
         

6.       CONTINGENCIES

         FCM was named as a defendant in a class action lawsuit brought in
March 1995 against PaineWebber Incorporated ("PaineWebber") and a number of
its affiliates concerning the sale of 70 different limited partnerships and
other direct investment programs. During May 1995, the Court entered an order
certifying the class and dismissing the class action against FCM without
prejudice.

         During January 1996, PaineWebber signed a memorandum of understanding
with the plaintiffs in the class action outlining the terms under which the
parties agreed to settle the case. Pursuant to that memorandum of
understanding, PaineWebber irrevocably deposited



                                      12
<PAGE>   11


$125 million into an escrow fund under the supervision of the United States
District Court for the Southern District of New York to be used to resolve the
litigation. On July 17, 1996, PaineWebber and the class plaintiffs submitted a
definitive settlement agreement, which has been preliminarily approved by the
Court. The agreement provides for the complete resolution of the class action
litigation, including releases in favor of the Fund and FCM, and the
allocation of the $125 million settlement fund among investors in the various
partnerships at issue in the case. As part of the settlement, PaineWebber also
agreed to provide class members with certain financial guarantees relating to
some of the partnerships, including the Fund. The details of the settlement
were described in a notice mailed directly to class members at the direction
of the Court. A final hearing on the proposed settlement is scheduled to
continue during November 1996.

         A similar, though smaller, suit was filed against PaineWebber and
various affiliated entities (not including FCM) during February 1996 in a
California state court.

         FCM believes that this litigation will be resolved without any
material adverse effect on the Fund's financial condition.















                                      13
<PAGE>   12


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

LIQUIDITY AND CAPITAL RESOURCES

         As of September 30, 1996, the Fund held portfolio investments in
eight Managed Companies, with an aggregate cost of approximately $16.3
million. These portfolio investments, which were made from net offering
proceeds and the reinvestment of proceeds from the sale of other portfolio
investments, represent approximately 72.3% of the Fund's net assets. When
acquired, these portfolio investments generally consisted of high-yield
subordinated debt, linked with an equity participation or a comparable
participation feature in middle market companies. These securities were
typically issued in private placement transactions and were subject to certain
restrictions on transfer or sale, thereby limiting their liquidity. A number
of the portfolio companies have prepaid their subordinated debt that the Fund
held. In addition, three of the portfolio companies have successfully
completed initial public offerings ("IPOs") of their stock. The Fund has sold
the stock it held in these three companies, except for a portion of its KEMET
Corporation ("KEMET") stock.

         As of September 30, 1996, the Fund's remaining assets were invested
in short-term commercial paper. These funds are available to fund follow-on
investments, for distribution to the partners or to fund the annual repurchase
offer.

         During January 1996, the Fund invested $3,855,398 in Atlas. The
investment consists of $3,934,080 of 13.5% Senior Subordinated Secured Notes
due January 19, 2003, with warrants to acquire 407,659 shares of common stock.
The warrants have an exercise price of $8.00 per share. The Atlas common stock
is currently traded over the counter on a limited basis with quotations
provided via the OTC Bulletin Board under the symbol "ATEV".

         See Note 5 to the financial statements for a discussion of
significant recent developments concerning this investment, including the fact
that Atlas is in default on its interest payments to the Fund. As a result of
these developments, this subordinated debt investment was placed on
non-accrual status on November 5, 1996.

         During February 1996, the Fund sold its Huntington Holdings, Inc.
("Huntington") warrants. As discussed below, the Fund has received $1,340,631
of proceeds from this transaction. These proceeds have been reserved by the
Managing General Partner to partially fund either the Fund's 1996 repurchase
offer or any additional follow-on investments that the Fund may make in
existing portfolio companies.

         During June 1994, the Fund invested $2,551,920 in LMC. The investment
consisted of $2,604,000 of 13.00% Senior Subordinated Notes due May 31, 1999
with warrants to acquire common stock.

         During 1995, LMC's majority owner requested that the Fund participate
in a financial restructuring of LMC. The Fund agreed to the proposed
restructuring, which was consummated during February 1996. As part of the
restructuring, the Fund converted its existing LMC subordinated debt and
warrants into preferred stock and made a follow-on investment for the purchase
of $545,600 of new common stock.

         While LMC has experienced significant operating difficulties since
the Fund acquired its LMC investment during 1994, it appears to be progressing
satisfactorily under the guidance of its new management team. The major
accomplishment has been the re-engineering and modernization of the product
line. Initial responses from customers and other industry sources have been
positive. LMC is optimistic about the prospects for sales of its "utility"
models and is hopeful about fleet grooming sales.



                                      14
<PAGE>   13


         LMC is attempting to diversify its product line to reduce the
seasonality of its business and increase the utilization of its manufacturing
facility. It is concentrating on vehicles with low ground pressure in order to
utilize the engineering and manufacturing expertise gained from snow grooming
equipment. The major project currently underway is the internal development of
a tracked utility vehicle designed for use by landscape and other contractors.

         This project and other product developments necessitated an
additional follow-on investment by the Fund. LMC is exploring other possible
acquisitions, including one which would result in a reverse merger into a
small public company and a public listing for LMC shares. Any such merger or
acquisition will also require additional Fund investment. The Fund has
committed to provide up to $1,967,040 of additional subordinated debt to LMC,
of which $983,520 was advanced on November 1, 1996. The Fund currently owns
27% of LMC and our affiliate, Fiduciary Capital Pension Partners, owns 23%.

         Pursuant to the terms of the Fund's periodic unit repurchase policy
that was adopted by the Fund's Limited Partners during 1993, the Fund annually
offers to purchase from its Limited Partners up to 7.5% of its outstanding
Units for an amount equal to the current net asset value per Unit, net of a
fee (not to exceed 2%) to be retained by the Fund to offset expenses incurred
in connection with the repurchase offer. If the number of tendered Units in
any year exceeds 7.5% of the outstanding Units, the Fund's General Partners
may vote to repurchase up to an additional 2% of the outstanding Units. The
1996 repurchase offer was mailed to the Limited Partners on October 7, 1996.
Limited Partners tendered 299,464 Units for repurchase. The Fund anticipates
repurchasing approximately 7.68% of the tendered Units, or approximately
108,068 Units, at the Fund's net asset value per Unit as of November 14, 1996.
The actual redemption of tendered Units will occur on November 21, 1996.

         Accrued interest receivable increased $194,068 from $140,490 at
December 31, 1995 to $334,558 at September 30, 1996. This increase resulted
primarily from the accrual of interest due on the Atlas notes that were
acquired during January 1996. (See discussion above regarding delinquent
status of the interest payments due from Atlas and the reversal of this
accrual subsequent to September 30, 1996.) This increase was partially offset
by a decrease, to zero, in the accrued interest receivable attributable to the
Fund's Canadian's investment.

         Accounts payable and accrued liabilities increased $433,968 from
$33,177 at December 31, 1995 to $467,145 at September 30, 1996. This increase
resulted primarily from the accrual of $429,373 for possible legal costs and
other payments that may be required to settle the Canadian's litigation or to
fund the payment of Canadian's outstanding sales tax liabilities. (See further
discussion below.)

         During the nine months ended September 30, 1996, the Fund paid cash
distributions pertaining to the fourth quarter of 1995 and the first and
second quarters of 1996, each in the amount of $426,438. The distribution for
the third quarter of 1996 will be paid on November 15, 1996. These quarterly
distributions are equal to $.30 per Unit and represent an annualized rate
equal to 6.0% of contributed capital.

         The Fund's investment period ended on December 31, 1995. Although the
Fund is permitted to make additional investments in existing portfolio
companies after 1995, the Fund is no longer permitted to acquire investments
in new portfolio companies, except to fund commitments made prior to December
31, 1995. This will impact the amount of the Fund's quarterly distributions
for 1996 and subsequent years because all proceeds from dispositions or
maturities of investments will be distributed to investors, except to the
extent the cash is needed to fund the annual repurchase offer or to fund any
follow-on investments that the Fund may make in existing portfolio companies.



                                      15
<PAGE>   14


         As of December 31, 1995, the Fund had committed to make three new
portfolio investments. In addition, the Fund had agreed in principle to the
financial restructuring of LMC. As discussed above, one of the committed
investments, Atlas, was acquired during January 1996 and the LMC financial
restructuring was consummated during February 1996. The other two committed
investments have been abandoned. The portion of the Fund's available capital
that was reserved for these abandoned investments is now reserved to fund
either the Fund's 1996 repurchase offer or any additional follow-on
investments that the Fund may make in existing portfolio companies.

         See Note 6 to the financial statements for a discussion of litigation
involving PaineWebber and a number of its affiliates concerning the sale of
limited partnerships and other direct investment programs.


RESULTS OF OPERATIONS


Investment Income and Expenses

         The Fund's net investment income was $341,740 for the three months
ended September 30, 1996 as compared to net investment income of $592,903 for
the corresponding period of the prior year. Net investment income per limited
partnership unit decreased from $.38 to $.24 and the ratio of net investment
income to average net assets decreased from 7.80% to 5.87% for the three
months ended September 30, 1996 as compared to the corresponding period of the
prior year.

         The Fund's net investment income was $976,343 for the nine months
ended September 30, 1996 as compared to net investment income of $1,708,266
for the corresponding period of the prior year. Net investment income per
limited partnership unit decreased from $1.11 to $.69 and the ratio of net
investment income to average net assets decreased from 7.72% to 5.55% for the
nine months ended September 30, 1996 as compared to the corresponding period
of the prior year.

         Net investment income for both the three and nine month periods ended
September 30, 1996 decreased primarily as a result of decreases in investment
income.

         Investment income decreased $255,251 and $708,203, or 34.2% and
32.5%, for the three and nine month periods ended September 30, 1996,
respectively, as compared to the corresponding periods of the prior year.
These decreases resulted primarily from the conversion of the Fund's LMC debt
securities into non-dividend paying equity securities and the Canadian's
bankruptcy. (Both of these items are discussed elsewhere in this Report.) The
Fund's total investments also decreased as a result of the Fund's repurchase
of 7.84% of its Units during the fourth quarter of 1995.

         Total expenses decreased $4,088, or 2.7%, for the three months ended
September 30, 1996 as compared to the corresponding period of the prior year.
This decrease resulted primarily from decreases in investment advisory fees
and amortization expense. These decreases were partially offset by increases
in professional fees and other expenses.

         Total expenses increased $23,720, or 5.0%, for the nine months ended
September 30, 1996 as compared to the corresponding period of the prior year.
This increase resulted primarily from increases in professional fees and other
expenses. These increases were partially offset by decreases in investment
advisory fees and amortization expense.

         For both the three and nine month periods ended September 30, 1996,
the increases in professional fees and other expenses were primarily the
result of legal fees and other costs incurred in connection with Canadian's
bankruptcy proceedings. The investment advisory



                                      16
<PAGE>   15

fees decreased as a result of the repurchase of Units by the Fund during the
fourth quarter of 1995 and the realization during February 1996 of the loss on
the Fund's Canadian's investment. Both the repurchase of Units and the
realization of the Canadian's loss decreased the amount of the Fund's
available capital (as defined in the Partnership Agreement), which is the base
with respect to which the investment advisory fees are calculated. The Fund
amortized its organization costs over a five year period beginning with the
inception of the Fund in 1990. Therefore, these costs became fully amortized
during 1995.


Net Realized Gain (Loss) on Investments

         Canadian's was a women's specialty retailer, which had 53 stores on
the East Coast, including stores in the New York City and Philadelphia
metropolitan areas. As widely reported in the business press, retailers almost
universally experienced extremely disappointing sales during the 1995 holiday
season. Women's specialty retailers were especially hard hit. This situation
was exacerbated by severe winter weather which hampered store operations from
Boston to Washington, D.C. As a result, a number of apparel retailers filed
for bankruptcy.

         Canadian's did not escape the retailing downturn and experienced
significant operating problems. These problems culminated in Canadian's filing
for Chapter 11 bankruptcy protection on February 21, 1996 and ceasing all
operations during March 1996. As discussed in the Fund's previous filings,
Canadian's had embarked on a significant cost cutting program during the fall
of 1995, which included closing marginal stores and reducing general and
administrative costs. However, these measures were not sufficient to offset
the negative impact of the unusually bad holiday season.

         As a result of these developments, it became evident that the Fund
will not recover any of its Canadian's investment. Accordingly, the Fund
recognized the $4,756,316 loss on its Canadian's investment as a realized loss
during the three months ended March 31, 1996. This loss recognition did not
significantly affect the Fund's total net gain (loss) on investments for the
nine months ended September 30, 1996 because all but $5 of the loss was
recorded as an unrealized loss during 1995.

         On October 3, 1996, the Fund commenced an adversary proceeding in the
Canadian's Chapter 11 bankruptcy case against Finova, Benson Selzer and Joseph
Eiger. The complaint seeks a declaratory judgment that sales taxes collected
by Canadian's and turned over to Finova were "trust funds" collected by
Canadian's on behalf of various state tax authorities. Through the complaint,
the Fund has objected to Finova's secured claim against Canadian's, which was
guaranteed by Benson Selzer and Joseph Eiger, and seeks to recover the sales
tax and certain other amounts for the benefit of Canadian's bankruptcy estate.

         As a result of this litigation and the issues involved, the Fund
accrued $429,373 for legal costs and possible payments that may be required to
settle the litigation or to fund the payment of Canadian's outstanding sales
tax liabilities. This accrued amount was recorded as a realized loss in the
Fund's Statements of Operations.

         During December 1995, Huntington entered into a letter of intent,
under the terms of which all Huntington stock would be sold for cash. The sale
was consummated during February 1996. The Fund's share of the actual sales
proceeds totaled $1,511,364, of which $1,320,711 was received during February
1996 and $19,920 was received during September 1996. A portion of the escrowed
funds were used to pay various transaction expenses. The balance is still
being held in escrow to fund potential contingent purchase price adjustments,
and as collateral for potential claims of the buyer with respect to
representations made by the selling shareholders, including the Fund. While
the remaining portion of the escrow amount must be maintained for a two year
period, certain of the sellers' representations


                                      17
<PAGE>   16


will survive for longer periods of time, which could result in the Fund being
required to reimburse the purchaser for certain costs and expenses after the
escrow is released.

         The Fund recognized a realized gain of $1,216,901 from this
transaction when it was consummated during February 1996. The Fund did not
assign any value to its $190,653 share of the escrow at that time because it
was uncertain how much, if any, of the escrowed funds would ultimately be
received by the Fund. During September 1996, the Fund received a distribution
of $19,920 of the escrowed funds and recognized a corresponding amount of
additional realized gain. Additional gain will be recognized if the Fund
actually receives a distribution of any of the remaining escrowed funds.


Net Unrealized Gain (Loss) on Investments

         FCM values the Fund's portfolio investments on a weekly basis
utilizing a variety of methods. For securities that are publicly traded and
for which market quotations are available, valuations are set by the closing
sales, or an average of the closing bid and ask prices, as of the valuation
date.

         Fair value for securities that are not traded in any liquid public
markets or that are privately held are determined pursuant to valuation
policies and procedures that have been approved by the Independent General
Partners and subject to their supervision. There is a range of values that are
reasonable for such investments at any particular time. Each such investment
is valued initially based upon its original cost to the Fund ("cost method").
The cost method is used until significant developments affecting the portfolio
company provide a basis for use of an appraisal valuation. Appraisal
valuations are based upon such factors as the portfolio company's earnings,
cash flow and net worth, the market prices for similar securities of
comparable companies and an assessment of the portfolio company's future
financial prospects. In a case of unsuccessful operations, the appraisal may
be based upon liquidation value. Appraisal valuations are necessarily
subjective. The Fund also may use, when available, third-party transactions in
a portfolio company's securities as the basis of valuation ("private market
method"). The private market method is used only with respect to completed
transactions or firm offers made by sophisticated, independent investors.

         As of December 31, 1995, the Fund had recorded $2,609,492 of
unrealized gain and $5,884,821 of unrealized loss on investments. Therefore,
as of December 31, 1995, the Fund had recorded a total net unrealized loss on
investments of $3,275,329.

         The net increase in unrealized gain (loss) of investments during the
three and nine month periods ended September 30, 1996 and the cumulative net
unrealized gain on investments as of September 30, 1996, consisted of the
following components:

<TABLE>
<CAPTION>
                                                                 Unrealized Gain (Loss) Recorded
                                                                 -------------------------------
                                              During the Three       During the Nine
                                                Months Ended          Months Ended              As of
          Portfolio Company                 September 30, 1996     September 30, 1996     September 30, 1996
------------------------------------        ------------------     ------------------     ------------------
<S>                                          <C>                  <C>                   <C>      
Unrealized net loss recorded during
     prior periods with respect to
     investments disposed of during
     the period                              $      --            $ 3,841,121           $      --
Neodata                                             --                   --                (337,944)
KEMET                                              5,240             (103,043)              557,708
AAG                                                 --               (137,677)              734,495
Elgin / ENI                                       17,799               53,398               214,777
LMC                                                 --                   --                (540,800)
MTI II                                            22,990               22,990              (226,776)
                                             -----------          -----------           -----------
                                             $    46,029          $ 3,676,789           $   401,460
                                             ===========          ===========           ===========
</TABLE>


                                      18
<PAGE>   17


         The Neodata Corporation ("Neodata") stock was written down to a
negligible amount during 1995. The Partnership has consistently valued this
investment based upon a multiple of Neodata's cash flow. Because Neodata's
long-term debt presently provides for the accrual, rather than current
payment, of interest, the company's debt has grown to a level which exceeds
the Fund's valuation.

         KEMET completed an IPO of its common stock during 1992. The stock,
which trades on the NASDAQ National Market System, closed at $20.3125 (an
average of the closing bid and ask prices) on September 30, 1996. This price
is down from the closing price of $34.125 on December 31, 1995 and up slightly
from the closing price of $20.125 on June 30, 1996. Based on the $20.3125
closing trading price of the common stock, the 27,944 shares of common stock
that the Fund held at September 30, 1996 had a market value of $567,613.

         Amity Leather Products Co. recently changed its corporate name to ar
accessories group, incorporated ("AAG"). The AAG warrants and common stock
were written down in value at March 31, 1996 to bring AAG's valuation more in
line with the valuation of other comparable companies in its industry.

         The ENI Holding Corp. preferred stock is being written up in value
quarterly to reflect the amount of the cumulative 10% preferential dividend
that has accrued with respect to the preferred stock.

         LMC experienced significant operating problems after the Fund
acquired its LMC investment during 1994 and the Fund was involved in a
restructuring of its LMC investment during 1995. In the restructuring, the
Fund's existing LMC subordinated debt and warrants were converted into
preferred stock and the Fund purchased $545,600 of new common stock. As a
result of LMC's operational difficulties and the fact that the Fund now owns
equity securities rather than debt securities, the Fund wrote its LMC
investment down by $540,800 during 1995.

         The MTI II investment was written down in value during 1994 based
upon an independent third party valuation of the company that was obtained by
MTI II's management. During August 1996, MTI II consummated a financial
restructuring pursuant to which a substantial amount of its corporate debt was
converted to equity. In the restructuring, the existing shareholders,
including the Fund, received a reduced number of shares of common stock, along
with warrants to purchase additional common stock. The Fund's investment in
MTI II was written up in value at September 30, 1996 by $22,990 based upon an
analysis of MTI II's earnings and cash flows.

         FCM continually monitors both the Fund's portfolio companies and the
markets, and continually evaluates the decision to hold or sell its traded
securities.








                                      19
<PAGE>   18

                          Part II. OTHER INFORMATION

Item 1.  Legal Proceedings

         There are no material legal proceedings pending directly against the
Fund.

         As previously reported, FCM, the Managing General Partner of the
Fund, was named as a defendant in a class action lawsuit against PaineWebber
and a number of its affiliates concerning its sale of 70 different limited
partnerships and other direct investment programs, including the offering of
the Units. Plaintiffs in the lawsuit allege, among other things, that the
defendants violated federal securities laws and committed common law fraud in
the marketing of direct investments.

         On May 30, 1995, the United States District Court for the Southern
District of New York entered an order certifying the class and dismissing the
class action against FCM without prejudice. PaineWebber and Mezzanine Capital
Corporation, a minority general partner in FCM and an affiliate of
PaineWebber, remain as defendants.

         During January 1996, PaineWebber signed a memorandum of understanding
with the plaintiffs in the class action outlining the terms under which the
parties have agreed to settle the case. Pursuant to that memorandum of
understanding, PaineWebber irrevocably deposited $125 million into an escrow
fund under the supervision of the United States District Court for the
Southern District of New York to be used to resolve the litigation. On July
17, 1996, PaineWebber and the class plaintiffs submitted a definitive
settlement agreement, which has been preliminarily approved by the Court. The
agreement provides for the complete resolution of the class action litigation,
including releases in favor of the Fund and FCM, and the allocation of the
$125 million settlement fund among investors in the various partnerships at
issue in the case. As part of the settlement, PaineWebber also agreed to
provide class members with certain financial guarantees relating to some of
the partnerships, including the Fund. The details of the settlement were
described in a notice mailed directly to class members at the direction of the
Court. A final hearing on the proposed settlement is scheduled to continue
during November 1996.

         During February 1996, approximately 150 plaintiffs filed an action in
Sacramento, California Superior Court against PaineWebber and various
affiliated entities concerning the plaintiffs' purchase of various limited
partnership interests. The complaint alleges, among other things, that
PaineWebber and its related entities committed fraud by selling or promoting
limited partnership investments that were unsuitable for the plaintiffs and by
overstating the benefits, understating the risks and failing to state material
facts concerning the investments. The complaint seeks compensatory damages of
$15 million, plus punitive damages. During September 1996, the Court dismissed
many of the plaintiffs' claims as barred by the applicable statutes of
limitations.

         The Fund was not named as a defendant in either lawsuit. However,
pursuant to certain contractual arrangements between FCM and PaineWebber in
connection with the offering of the Units, the Fund may be required to
indemnify PaineWebber and its affiliates for their costs and liability in
connection with any class action claims relating to the Fund. FCM believes
that the Fund's exposure with respect to the indemnity will not have any
material adverse effect on the Fund's financial condition.

         On October 3, 1996, Fiduciary commenced an adversary proceeding in
the Canadian's Chapter 11 bankruptcy case in the United States Bankruptcy
Court for the Southern District of New York, case nos. 96 B 40891 through
40907, against Finova, Benson Selzer and Joseph Eiger. The complaint in the
proceeding seeks, inter alia, a declaratory judgment that sales taxes
collected by Canadian's and turned over to Finova in the amount of
approximately $1.8 million during the period January 1, 1995 through February
21, 1996 were "trust funds" collected by Canadian's on behalf of various state
tax authorities.

                                      20
<PAGE>   19


         Through the complaint, Fiduciary has objected to Finova's secured
claim against Canadian's, which was guaranteed by Benson Selzer and Joseph
Eiger, and seeks to recover the sales taxes and certain other amounts for the
benefit of Canadian's bankruptcy estate based upon various legal theories,
including preferential transfers prohibited by the Bankruptcy Code, unjust
enrichment, lender liability, breach of fiduciary duty, equitable
subordination, and the like. The defendants have not yet responded to the
complaint.

Item 6.  Exhibits and Reports on Form 8-K

         (a)      Exhibits and Reports to be filed:

                  Exhibit No.   Description

                      11.1      Statement of Computation of Net Investment
                                Income Per Limited Partnership Unit.

                      19.1      Reports Furnished to Securities Holders.

                      27.1      Financial Data Schedule.


         (b)      The Registrant did not file any reports on Form 8-K during
                  the third quarter of the fiscal year ending December 31,
                  1996.










                                      21
<PAGE>   20


                                   SIGNATURE

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


                             Fiduciary Capital Partners, L.P.
                                      (Registrant)


                             By:    FCM Fiduciary Capital Management Company
                                    Managing General Partner


Date: November 12, 1996             By: /s/ Donald R. Jackson
                                        ---------------------
                                        Donald R. Jackson
                                        Chief Financial Officer

















                                      22
<PAGE>   21


                                 EXHIBIT INDEX


<TABLE>
<CAPTION>
Exhibit No.                Description                                     Page
-----------                -----------                                     ----
<S>            <C>                                                         <C>
  11.1         Statement of Computation of Net Investment Income Per 
               Limited Partnership Unit.

  19.1         Reports Furnished to Securities Holders.

  27.1         Financial Data Schedule.
</TABLE>










                                      E-1