# EDGAR Filing Document

**Accession Number:** 0001006387
**File Stem:** 0000949377-26-000006
**Filing Date:** 2026-2
**Character Count:** 171868
**Document Hash:** 3e61048e506b3c7b0d16a7e5686fe34b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000949377-26-000006.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0000949377-26-000006

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 35

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**EFFECTIVENESS DATE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ROYCE CAPITAL FUND
- **CENTRAL INDEX KEY:** 0001006387

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-07537
- **FILM NUMBER:** 26693463

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MADISON AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010
- **BUSINESS PHONE:** 2125084599

**MAIL ADDRESS:**
- **STREET 1:** ONE MADISON AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10010

## Series and Classes Contracts Data

### Royce Capital Fund - Micro-Cap Portfolio (Series ID: S000009496)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000025976 | Investment Class | RCMCX           |
| C000033015 | Service Class    | RCMSX           |

### Royce Capital Fund - Small-Cap Portfolio (Series ID: S000009497)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000025977 | Investment Class | RCPFX           |
| C000033016 | Service Class    | RCSSX           |

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT**

**OF**

**REGISTERED MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act File Number: 811-07537

Name of Registrant: Royce Capital Fund

Address of Registrant: One Madison Avenue

New York, NY 10010

Name and address of agent for service: John E. Denneen, Esq.

One Madison Avenue

New York, NY 10010

Registrant's telephone number, including area code: (212) 508-4500

Date of fiscal year end: December 31

Date of reporting period: January 1, 2025 – December 31, 2025

**Item 1. Reports to Shareholders.** 

---

| | |
|:---|:---|
| **The Royce Funds** | **December 31, 2025** |
| Royce Capital Fund—Micro-Cap Portfolio<br> Investment Class—RCMCX | ![](rcf001.jpg) |

---

Annual Shareholder Report

This annual shareholder report contains important information about Royce Capital Fund—Micro-Cap Portfolio for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www. royceinvest.com/literature. You can also request this information by contacting us at 1-800-221-4268.

**What Were the Fund's Costs for the Last Year?**

*Based on a hypothetical $10,000 investment*

---

| | | |
|:---|:---|:---|
| <br>**FUND/CLASS** | **COSTS OF A**<br>**$10,000 INVESTMENT** | **COSTS PAID AS A PERCENTAGE**<br>**OF A $10,000 INVESTMENT** |
| Royce Capital Fund—Micro-Cap Portfolio—Investment Class | $130 | 1.22% |

---

**How Did the Fund Perform Last Year? What Affected the Fund's Performance?**

&nbsp;&nbsp;&nbsp;&nbsp;• Royce
 Capital Fund - Micro-Cap Portfolio advanced 13.89% for the year, lagging its benchmark,
 the Russell Microcap Index, which was up 22.98% for the same period.

&nbsp;&nbsp;&nbsp;&nbsp;• The
 Fund's disadvantage versus its benchmark was primarily attributable to sector allocation.

**Top Contributors to Performance**

---

| | |
|:---|:---|
| ![](rcf002.jpg) | The sectors making the largest positive contributions were Industrials, Financials, and Information Technology. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | At the industry level, electronic equipment, instruments & components (Information Technology), banks (Financials), and aerospace & defense (Industrials) contributed most. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | The Fund's top contributor was nLIGHT. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | Stock selection within Financials contributed most to relative results versus the Russell Microcap Index. |

---

**Top Detractors from Performance**

---

| | |
|:---|:---|
| ![](rcf003.jpg) | The sectors making the largest detractions were Consumer Discretionary, Real Estate, and Health Care. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | At the industry level, professional services (Industrials), life sciences tools & services (Health Care), and software (Information Technology) were the largest detractors. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | The Fund's top detractor was American Outdoor Brands. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | Stock selection within Health Care detracted most from relative results versus the Russell Microcap Index. |

---

---

| | |
|:---|:---|
| **ROYCE CAPITAL FUND—MICRO-CAP PORTFOLIO—INVESTMENT CLASS (RCMCX)** | **Annual Shareholder Report—December 31, 2025** |

---

**How Did the Fund Perform Over the Past 10 Years?**

*Keep in mind that the Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.*

**Cumulative Performance: Value of $10,000**

Invested from 12/31/15 through 12/31/25 ($)

![](rcf004.jpg)

**Average Annual Total Returns**

---

| | | | |
|:---|:---|:---|:---|
| Through 12/31/25 (%) | **1-YR** | **5-YR** | **10-YR** |
| Investment Class | 13.89 | 9.17 | 10.14 |
| Russell 3000 Index | 17.15 | 13.15 | 14.29 |
| Russell Microcap Index | 22.98 | 7.32 | 9.58 |
| Russell 2000 Index | 12.81 | 6.09 | 9.62 |

---

*Visit <u>www.royceinvest.com/funds</u> for more recent performance information*

**Key Fund Statistics**

*As of/through 12/31/25*

---

| | |
|:---|:---|
| Net Assets (Millions) | $96 |
| Number of Holdings | 154 |
| 2025 Portfolio Turnover Rate | 42% |
| Advisory Fees Paid in 2025 (Millions) | $1.2 |

---

---

| | |
|:---|:---|
| **ROYCE CAPITAL FUND—MICRO-CAP PORTFOLIO—INVESTMENT CLASS (RCMCX)** | **Annual Shareholder Report—December 31, 2025** |

---

**What Did the Fund Invest In?**

*Representing percentage of total net assets of the Fund as of 12/31/25 (%)*

---

| | |
|:---|:---|
| **Top 10 Positions** |  |
| Establishment Labs Holdings | 1.3 |
| Natural Gas Services Group | 1.3 |
| LightPath Technologies Cl. A | 1.3 |
| Investar Holding | 1.2 |
| nLIGHT | 1.2 |
| NWPX Infrastructure | 1.2 |
| Bel Fuse Cl. B | 1.2 |
| RealReal | 1.2 |
| Digi International | 1.1 |
| Graham Corporation | 1.1 |

---

---

| |
|:---|
| **Portfolio Sector Breakdown** |
| ![](rcf005.jpg) |

---

**Where Can I Find Additional Information About the Fund?**

*Additional information is available at <u>www.royceinvest.com/literature</u>, including its:*

---

| | | |
|:---|:---|:---|
| ![](rcf006.jpg) | • <u>Prospectus</u><br> • <u>Financial Information</u> | • <u>Fund Holdings</u> <br> • <u>Proxy Voting Information</u> |

---

**Householding**

*We will deliver a single copy of prospectuses, proxies, financial reports, and other communications to shareholders with the same residential address, provided they have the same last name or we reasonably believe them to be members of the same family. Unless we are notified otherwise, we will continue to send you only one copy of these materials for as long as you remain a shareholder of the Fund. If you would like to receive individual mailings, please call 1-800-221-4268. Please allow 30 days for your request to be processed. Shareholders may also elect to receive these reports electronically. Please go to <u>www.royceinvest.com</u> for more details.*

**Important Performance and Other Information**

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.royceinvest.com. The Fund's total returns do not reflect any deduction for charges or expenses of the variable contracts investing in the Fund. Frank Russell Company ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell<sup>®</sup> is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 3000 Index is an unmanaged, capitalization-weighted index of domestic stocks. It measures the performance of the largest 3,000 publicly traded U.S. companies. The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell Investments. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI. Distributor: Royce Fund Services, LLC.

**NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED&nbsp;&nbsp;&nbsp;&nbsp;** RCM-IC-ATSR-1225

---

| | |
|:---|:---|
| **The Royce Funds** | **December 31, 2025** |
| Royce Capital Fund—Micro-Cap Portfolio<br> Service Class—RCMSX | ![](rcf001.jpg) |

---

Annual Shareholder Report

This annual shareholder report contains important information about Royce Capital Fund—Micro-Cap Portfolio for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at <u>www. royceinvest.com/literature</u>. You can also request this information by contacting us at 1-800-221-4268.

You can find additional information about the Fund at www. royceinvest.com/literature. You can also request this information by contacting us at 1-800-221-4268.

**What Were the Fund's Costs for the Last Year?**

*Based on a hypothetical $10,000 investment*

---

| | | |
|:---|:---|:---|
| <br>**FUND/CLASS** | **COSTS OF A**<br>**$10,000 INVESTMENT** | **COSTS PAID AS A PERCENTAGE**<br>**OF A $10,000 INVESTMENT** |
| Royce Capital Fund—Micro-Cap Portfolio—Service Class | $162 | 1.52% |

---

**How Did the Fund Perform Last Year? What Affected the Fund's Performance?**

&nbsp;&nbsp;&nbsp;&nbsp;• Royce
 Capital Fund - Micro-Cap Portfolio advanced 13.58% for the year, lagging its benchmark,
 the Russell Microcap Index, which was up 22.98% for the same period.

&nbsp;&nbsp;&nbsp;&nbsp;• The
 Fund's disadvantage versus its benchmark was primarily attributable to sector allocation.

**Top Contributors to Performance**

---

| | |
|:---|:---|
| ![](rcf002.jpg) | The sectors making the largest positive contributions were Industrials, Financials, and Information Technology. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | At the industry level, electronic equipment, instruments & components (Information Technology), banks (Financials), and aerospace & defense (Industrials) contributed most. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | The Fund's top contributor was nLIGHT. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | Stock selection within Financials contributed most to relative results versus the Russell Microcap Index. |

---

**Top Detractors from Performance**

---

| | |
|:---|:---|
| ![](rcf003.jpg) | The sectors making the largest detractions were Consumer Discretionary, Real Estate, and Health Care. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | At the industry level, professional services (Industrials), life sciences tools & services (Health Care), and software (Information Technology) were the largest detractors. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | The Fund's top detractor was American Outdoor Brands. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | Stock selection within Health Care detracted most from relative results versus the Russell Microcap Index. |

---

---

| | |
|:---|:---|
| **ROYCE CAPITAL FUND—MICRO-CAP PORTFOLIO—SERVICE CLASS (RCMSX)** | **Annual Shareholder Report—December 31, 2025** |

---

**How Did the Fund Perform Over the Past 10 Years?**

*Keep in mind that the Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.*

**Cumulative Performance: Value of $10,000**

Invested from 12/31/15 through 12/31/25 ($)

![](rcf007.jpg)

**Average Annual Total Returns**

---

| | | | |
|:---|:---|:---|:---|
| Through 12/31/25 (%) | **1-YR** | **5-YR** | **10-YR** |
| Service Class | 13.58 | 8.85 | 9.86 |
| Russell 3000 Index | 17.15 | 13.15 | 14.29 |
| Russell Microcap Index | 22.98 | 7.32 | 9.58 |
| Russell 2000 Index | 12.81 | 6.09 | 9.62 |
| *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* | *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* | *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* |  |

---

**Key Fund Statistics**

*As of/through 12/31/25*

---

| | |
|:---|:---|
| Net Assets (Millions) | $96 |
| Number of Holdings | 154 |
| 2025 Portfolio Turnover Rate | 42% |
| Advisory Fees Paid in 2025 (Millions) | $1.2 |

---

---

| | |
|:---|:---|
| **ROYCE CAPITAL FUND—MICRO-CAP PORTFOLIO—SERVICE CLASS (RCMSX)** | **Annual Shareholder Report—December 31, 2025** |

---

**What Did the Fund Invest In?**

*Representing percentage of total net assets of the Fund as of 12/31/25 (%)*

---

| | |
|:---|:---|
| **Top 10 Positions** |  |
| Establishment Labs Holdings | 1.3 |
| Natural Gas Services Group | 1.3 |
| LightPath Technologies Cl. A | 1.3 |
| Investar Holding | 1.2 |
| nLIGHT | 1.2 |
| NWPX Infrastructure | 1.2 |
| Bel Fuse Cl. B | 1.2 |
| RealReal | 1.2 |
| Digi International | 1.1 |
| Graham Corporation | 1.1 |

---

---

| |
|:---|
| **Portfolio Sector Breakdown** |
| ![](rcf008.jpg) |

---

**Where Can I Find Additional Information About the Fund?**

*Additional information is available at <u>www.royceinvest.com/literature</u>, including its:*

---

| | | |
|:---|:---|:---|
| ![](rcf009.jpg) | • <u>Prospectus</u><br> • <u>Financial Information</u> | • <u>Fund Holdings</u> <br> • <u>Proxy Voting Information</u> |

---

**Householding**

*We will deliver a single copy of prospectuses, proxies, financial reports, and other communications to shareholders with the same residential address, provided they have the same last name or we reasonably believe them to be members of the same family. Unless we are notified otherwise, we will continue to send you only one copy of these materials for as long as you remain a shareholder of the Fund. If you would like to receive individual mailings, please call 1-800-221-4268. Please allow 30 days for your request to be processed. Shareholders may also elect to receive these reports electronically. Please go to <u>www.royceinvest.com</u> for more details.*

**Important Performance and Other Information**

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.royceinvest.com. The Fund's total returns do not reflect any deduction for charges or expenses of the variable contracts investing in the Fund. Frank Russell Company ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell<sup>®</sup> is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 3000 Index is an unmanaged, capitalization-weighted index of domestic stocks. It measures the performance of the largest 3,000 publicly traded U.S. companies. The Russell Microcap Index includes 1,000 of the smallest securities in the small-cap Russell 2000 Index, along with the next smallest eligible securities as determined by Russell Investments. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI. Distributor: Royce Fund Services, LLC.

**NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED&nbsp;&nbsp;&nbsp;&nbsp;** RCM-SC-ATSR-1225

---

| | |
|:---|:---|
| **The Royce Funds** | **December 31, 2025** |
| Royce Capital Fund—Small-Cap Portfolio<br> Investment Class—RCPFX | ![](rcf001.jpg) |

---

Annual Shareholder Report

This annual shareholder report contains important information about Royce Capital Fund—Small-Cap Portfolio for the period of January 1, 2025 to December 31, 2025.You can find additional information about the Fund at <u>www.royceinvest.com/literature</u>. You can also request this information by contacting us at 1-800-221-4268.

You can find additional information about the Fund at www.royceinvest.com/literature. You can also request this information by contacting us at 1-800-221-4268.

**What Were the Fund's Costs for the Last Year?**

*Based on a hypothetical $10,000 investment*

---

| | | |
|:---|:---|:---|
| <br>**FUND/CLASS** | **COSTS OF A**<br>**$10,000 INVESTMENT** | **COSTS PAID AS A PERCENTAGE**<br>**OF A $10,000 INVESTMENT** |
| Royce Capital Fund—Small-Cap Portfolio—Investment Class | $123 | 1.18% |

---

**How Did the Fund Perform Last Year? What Affected the Fund's Performance?**

&nbsp;&nbsp;&nbsp;&nbsp;• Royce Capital Fund—Small-Cap Portfolio advanced 8.93% for the year, lagging its benchmark, the Russell 2000 Value Index,
which was up 12.59% for the same period.

&nbsp;&nbsp;&nbsp;&nbsp;• The Fund's disadvantage versus its benchmark was primarily attributable to stock selection.

**Top Contributors to Performance**

---

| | |
|:---|:---|
| ![](rcf002.jpg) | The sectors making the largest positive contributions were Information Technology, Financials, and Industrials. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | At the industry level, electronic equipment, instruments & components (Information Technology), banks (Financials), and commercial services & supplies (Industrials) contributed most. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | The Fund's top contributor was Sanmina Corporation. |

---

---

| | |
|:---|:---|
| ![](rcf002.jpg) | Stock selection within Information Technology contributed most to relative results versus the Russell 2000 Value Index. |

---

**Top Detractors from Performance**

---

| | |
|:---|:---|
| ![](rcf003.jpg) | The sectors making the largest detractions were Energy, Consumer Discretionary, and Real Estate. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | At the industry level, oil, gas & consumable fuels (Energy), specialty retail (Consumer Discretionary), and ground transportation (Industrials) were the largest detractors. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | The Fund's top detractor was SM Energy. |

---

---

| | |
|:---|:---|
| ![](rcf003.jpg) | Stock selection within Consumer Discretionary detracted most from relative results versus the Russell 2000 Value Index. |

---

---

| | |
|:---|:---|
| **ROYCE CAPITAL FUND—SMALL-CAP PORTFOLIO—INVESTMENT CLASS (RCPFX)** | **Annual Shareholder Report—December 31, 2025** |

---

**How Did the Fund Perform Over the Past 10 Years?**

*Keep in mind that the Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.*

**Cumulative Performance: Value of $10,000**

Invested from 12/31/15 through 12/31/25 ($)

![](rcf010.jpg)

**Average Annual Total Returns**

---

| | | | |
|:---|:---|:---|:---|
| Through 12/31/25 (%) | **1-YR** | **5-YR** | **10-YR** |
| Investment Class | 8.93 | 10.66 | 7.88 |
| Russell 3000 Index | 17.15 | 13.15 | 14.29 |
| Russell 2000 Value Index | 12.59 | 8.88 | 9.27 |
| Russell 2000 Index | 12.81 | 6.09 | 9.62 |
| *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* | *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* | *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* |  |

---

**Key Fund Statistics**

*As of/through 12/31/25*

---

| | |
|:---|:---|
| Net Assets (Millions) | $174 |
| Number of Holdings | 80 |
| 2025 Portfolio Turnover Rate | 79% |
| Advisory Fees Paid in 2025 (Millions) | $2.2 |

---

---

| | |
|:---|:---|
| **ROYCE CAPITAL FUND—SMALL-CAP PORTFOLIO—INVESTMENT CLASS (RCPFX)** | **Annual Shareholder Report—December 31, 2025** |

---

**What Did the Fund Invest In?**

*Representing percentage of total net assets of the Fund as of 12/31/25 (%)*

---

| | |
|:---|:---|
| **Top 10 Positions** |  |
| Diebold Nixdorf | 2.0 |
| Lear Corporation | 2.0 |
| IBEX | 2.0 |
| Catalyst Pharmaceuticals | 1.9 |
| TD SYNNEX | 1.8 |
| Timberland Bancorp | 1.8 |
| Unity Bancorp | 1.8 |
| M/I Homes | 1.8 |
| Buckle (The) | 1.8 |
| PulteGroup | 1.8 |

---

---

| |
|:---|
| **Portfolio Sector Breakdown** |
| ![](rcf011.jpg) |

---

**Where Can I Find Additional Information About the Fund?**

*Additional information is available at <u>www.royceinvest.com/literature</u>, including its:*

---

| | | |
|:---|:---|:---|
| ![](rcf012.jpg) | • <u>Prospectus</u><br> • <u>Financial Information</u> | • <u>Fund Holdings</u> <br> • <u>Proxy Voting Information</u> |

---

**Householding**

*We will deliver a single copy of prospectuses, proxies, financial reports, and other communications to shareholders with the same residential address, provided they have the same last name or we reasonably believe them to be members of the same family. Unless we are notified otherwise, we will continue to send you only one copy of these materials for as long as you remain a shareholder of the Fund. If you would like to receive individual mailings, please call 1-800-221-4268. Please allow 30 days for your request to be processed. Shareholders may also elect to receive these reports electronically. Please go to <u>www.royceinvest.com</u> for more details.*

**Important Performance and Other Information**

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.royceinvest.com. The Fund's total returns do not reflect any deduction for charges or expenses of the variable contracts investing in the Fund. Frank Russell Company ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell<sup>®</sup> is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 3000 Index is an unmanaged, capitalization-weighted index of domestic stocks. It measures the performance of the largest 3,000 publicly traded U.S. companies. The Russell 2000 Value Index consists of the respective value stocks within the Russell 2000 Index as determined by Russell Investments. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI. Distributor: Royce Fund Services, LLC.

**NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED&nbsp;&nbsp;&nbsp;&nbsp;** RCS-IC-ATSR-1225

---

| | |
|:---|:---|
| **The Royce Funds** | **December 31, 2025** |
| Royce Capital Fund—Small-Cap Portfolio<br> Service Class—RCSSX | ![](rcf001.jpg) |

---

Annual Shareholder Report

This annual shareholder report contains important information about Royce Capital Fund—Small-Cap Portfolio for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at <u>www.royceinvest.com/literature</u>. You can also request this information by contacting us at 1-800-221-4268.

You can find additional information about the Fund at www.royceinvest.com/literature. You can also request this information by contacting us at 1-800-221-4268.

**What Were the Fund's Costs for the Last Year?**

*Based on a hypothetical $10,000 investment*

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| | | |
|:---|:---|:---|
| <br>**FUND/CLASS** | **COSTS OF A**<br>**$10,000 INVESTMENT** | **COSTS PAID AS A PERCENTAGE**<br>**OF A $10,000 INVESTMENT** |
| Royce Capital Fund—Small-Cap Portfolio—Service Class | $150 | 1.44% |

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**How Did the Fund Perform Last Year? What Affected the Fund's Performance?**

&nbsp;&nbsp;&nbsp;&nbsp;• Royce Capital Fund—Small-Cap Portfolio advanced 8.73% for the year, lagging its benchmark, the Russell 2000 Value Index,
which was up 12.59% for the same period.

&nbsp;&nbsp;&nbsp;&nbsp;• The Fund's disadvantage versus its benchmark was primarily attributable to stock selection.

**Top Contributors to Performance**

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| | |
|:---|:---|
| ![](rcf002.jpg) | The sectors making the largest positive contributions were Information Technology, Financials, and Industrials. |

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| | |
|:---|:---|
| ![](rcf002.jpg) | At the industry level, electronic equipment, instruments & components (Information Technology), banks (Financials), and commercial services & supplies (Industrials) contributed most. |

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| | |
|:---|:---|
| ![](rcf002.jpg) | The Fund's top contributor was Sanmina Corporation. |

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| | |
|:---|:---|
| ![](rcf002.jpg) | Stock selection within Information Technology contributed most to relative results versus the Russell 2000 Value Index. |

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**Top Detractors from Performance**

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| | |
|:---|:---|
| ![](rcf003.jpg) | The sectors making the largest detractions were Energy, Consumer Discretionary, and Real Estate. |

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| | |
|:---|:---|
| ![](rcf003.jpg) | At the industry level, oil, gas & consumable fuels (Energy), specialty retail (Consumer Discretionary), and ground transportation (Industrials) were the largest detractors. |

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| | |
|:---|:---|
| ![](rcf003.jpg) | The Fund's top detractor was SM Energy. |

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| | |
|:---|:---|
| ![](rcf003.jpg) | Stock selection within Consumer Discretionary detracted most from relative results versus the Russell 2000 Value Index. |

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| | |
|:---|:---|
| **ROYCE CAPITAL FUND—SMALL-CAP PORTFOLIO—SERVICE CLASS (RCSSX)** | **Annual Shareholder Report—December 31, 2025** |

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**How Did the Fund Perform Over the Past 10 Years?**

*Keep in mind that the Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.*

**Cumulative Performance: Value of $10,000**

Invested from 12/31/15 through 12/31/25 ($)

![](rcf013.jpg)

**Average Annual Total Returns**

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| | | | |
|:---|:---|:---|:---|
| Through 12/31/25 (%) | **1-YR** | **5-YR** | **10-YR** |
| Service Class | 8.73 | 10.40 | 7.63 |
| Russell 3000 Index | 17.15 | 13.15 | 14.29 |
| Russell 2000 Value Index | 12.59 | 8.88 | 9.27 |
| Russell 2000 Index | 12.81 | 6.09 | 9.62 |
| *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* | *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* | *Visit <u>www.royceinvest.com/funds</u> for more recent performance information* |  |

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**Key Fund Statistics**

*As of/through 12/31/25*

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| | |
|:---|:---|
| Net Assets (Millions) | $174 |
| Number of Holdings | 80 |
| 2025 Portfolio Turnover Rate | 79% |
| Advisory Fees Paid in 2025 (Millions) | $2.2 |

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| | |
|:---|:---|
| **ROYCE CAPITAL FUND—SMALL-CAP PORTFOLIO—SERVICE CLASS (RCSSX)** | **Annual Shareholder Report—December 31, 2025** |

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**What Did the Fund Invest In?**

*Representing percentage of total net assets of the Fund as of 12/31/25 (%)*

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| | |
|:---|:---|
| **Top 10 Positions** |  |
| Diebold Nixdorf | 2.0 |
| Lear Corporation | 2.0 |
| IBEX | 2.0 |
| Catalyst Pharmaceuticals | 1.9 |
| TD SYNNEX | 1.8 |
| Timberland Bancorp | 1.8 |
| Unity Bancorp | 1.8 |
| M/I Homes | 1.8 |
| Buckle (The) | 1.8 |
| PulteGroup | 1.8 |

---

---

| |
|:---|
| **Portfolio Sector Breakdown** |
| ![](rcf014.jpg) |

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**Where Can I Find Additional Information About the Fund?**

*Additional information is available at <u>www.royceinvest.com/literature</u>, including its:*

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| | | |
|:---|:---|:---|
| ![](rcf015.jpg) | • <u>Prospectus</u><br> • <u>Financial Information</u> | • <u>Fund Holdings</u> <br> • <u>Proxy Voting Information</u> |

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**Householding**

*We will deliver a single copy of prospectuses, proxies, financial reports, and other communications to shareholders with the same residential address, provided they have the same last name or we reasonably believe them to be members of the same family. Unless we are notified otherwise, we will continue to send you only one copy of these materials for as long as you remain a shareholder of the Fund. If you would like to receive individual mailings, please call 1-800-221-4268. Please allow 30 days for your request to be processed. Shareholders may also elect to receive these reports electronically. Please go to <u>www.royceinvest.com</u> for more details.*

**Important Performance and Other Information**

All performance information reflects past performance, is presented on a total return basis, reflects the reinvestment of distributions, and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, so that shares may be worth more or less than their original cost when redeemed. Current month-end performance may be higher or lower than performance quoted and may be obtained at www.royceinvest.com. The Fund's total returns do not reflect any deduction for charges or expenses of the variable contracts investing in the Fund. Frank Russell Company ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell<sup>®</sup> is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 3000 Index is an unmanaged, capitalization-weighted index of domestic stocks. It measures the performance of the largest 3,000 publicly traded U.S. companies. The Russell 2000 Value Index consists of the respective value stocks within the Russell 2000 Index as determined by Russell Investments. The Russell 2000 Index is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 Index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Sector weightings are determined using the Global Industry Classification Standard ("GICS"). GICS was developed by, and is the exclusive property of, Standard & Poor's Financial Services LLC ("S&P") and MSCI Inc. ("MSCI"). GICS is the trademark of S&P and MSCI. "Global Industry Classification Standard (GICS)" and "GICS Direct" are service marks of S&P and MSCI. Distributor: Royce Fund Services, LLC.

**NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED&nbsp;&nbsp;&nbsp;&nbsp;** RCS-SC-ATSR-1225

**Item 2. Code(s) of Ethics.** 

As of the end of the period covered by this report, the Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR. During the period covered by this report, the Registrant did not: (i) amend any provision of its code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions or (ii) grant any waiver, including an implicit waiver, from a provision of such code of ethics to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

**Item 3. Audit Committee Financial Expert.** 

(a)(1) The Board of Trustees of the Registrant has determined that it has an audit committee financial expert serving on its Audit Committee.

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| | |
|:---|:---|
| (a)(2) | Patricia W. Chadwick and Julia W. Poston were designated by the Board of Trustees as the Registrant's Audit Committee Financial Experts, effective April 8, 2010, and July 13, 2023, respectively. Ms. Chadwick and Ms. Poston are "independent" as defined in Section 2(a)(19) of the Investment Company Act of 1940 (the "1940 Act"). |

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**Item 4. Principal Accountant Fees and Services.** 

(a) Audit
 Fees:

Year ended December 31, 2025 – $53,460

Year ended December 31, 2024 - $51,902

(b) Audit-Related
 Fees:

Year ended December 31, 2025 - $0

Year ended December 31, 2024 - $0

(c) Tax
 Fees:

Year ended December 31, 2025 - $22,373 – Preparation of tax returns and excise tax review

Year ended December 31, 2024 - $21,721 – Preparation of tax returns and excise tax review

(d) All
 Other Fees:

Year ended December 31, 2025 - $0

Year ended December 31, 2024 - $0

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| | |
|:---|:---|
| (e)(1) | Annual Pre-Approval: On an annual basis, the Registrant's independent auditor submits to the Audit Committee a schedule of proposed audit, audit-related, tax and other non-audit services to be rendered to the Registrant and/or its investment adviser and its affiliates for the following year that require pre-approval by the Audit Committee. This schedule provides a description of each type of service that is expected to require pre-approval and the maximum fees that can be paid for each such service without further Audit Committee approval. The Audit Committee then reviews and determines whether to approve the types of scheduled services and the projected fees associated with them. Any subsequent revision to already pre-approved services or fees are presented for consideration at the next regularly scheduled Audit Committee meeting, as needed. |

---

If subsequent to the annual pre-approval of services and fees by the Audit Committee, the Registrant and/or its investment adviser and its affiliates determines that it would like to engage the Registrant's independent auditor to perform a service not already pre-approved, the request is to be submitted to the Registrant's Chief Financial Officer, and if he or she determines that the service fits within the independence guidelines (i.e., it is not a prohibited service), he or she will then arrange for a discussion of the proposed service and fee to be included on the agenda for the next regularly scheduled Audit Committee meeting so that pre-approval can be considered.

Interim Pre-Approval: If, in the judgment of the Registrant's Chief Financial Officer, a proposed engagement needs to commence before the next regularly scheduled Audit Committee meeting, he or she shall submit a written summary of the proposed engagement to all members of the Audit Committee, outlining the services, the estimated maximum cost, the category of the services (e.g., audit, audit-related, tax or other) and the rationale for engaging the Registrant's independent auditor to perform the services. To the extent the proposed engagement involves audit, audit-related or tax services, any individual member of the Audit Committee who is an independent Board member is authorized to pre-approve the engagement. To the extent the proposed engagement involves non-audit services other than audit-related or tax, only the Chairman of the Audit Committee is authorized to pre-approve the engagement. The Registrant's Chief Financial Officer will arrange for this interim review and coordinate with the appropriate member(s) of the Audit Committee. The Registrant's independent auditor may not commence the engagement under consideration until the Registrant's Chief Financial Officer has informed the auditor in writing that the required pre-approval has been obtained from an individual member of the Audit Committee who is an independent Board member or the Chairman of the Audit Committee, as applicable. Each member of the Audit Committee who pre-approves any engagements in between regularly scheduled Audit Committee meetings is to report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next regularly scheduled meeting.

(e)(2) Not Applicable

(f) Not
 Applicable

(g) Non-Audit
 Fees:

Year ended December 31, 2025 - $22,373

Year ended December 31, 2024 - $21,721

(h) No
 such services were rendered during 2025 or 2024.

(i) Not
 Applicable

(j) Not
 Applicable

**Item 5. Audit Committee of Listed Registrants. Not Applicable.**

**Item 6. Investments.**

(a) Please
 see the Schedule of Investments contained in the Financial Statements included under
 Item 7 of this Form N-CSR.

(b) Not
 Applicable.

**Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.**

---

| | |
|:---|:---|
| Royce Capital Fund | ![](rcf001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> **Financial Statements and <br> Other Important Information**<br>**Annual—December 31, 2025**<br>Royce Capital Fund—Micro-Cap Portfolio<br>Royce Capital Fund—Small-Cap Portfolio<br>

Schedules of Investments December 31, 2025

**Royce Capital Fund - Micro-Cap Portfolio** 

Common Stocks – 96.7%

---

| | | |
|:---|:---|:---|
|  | **SHARES** | **VALUE** |
| **COMMUNICATION SERVICES – 2.3%** |  |  |
| ENTERTAINMENT - 1.0% |  |  |
| &nbsp;&nbsp;&nbsp;IMAX Corporation [<sup>1</sup>](#a002) | 25265 | $**933794** |
| INTERACTIVE MEDIA & SERVICES - 0.8% |  |  |
| &nbsp;&nbsp;&nbsp;DHI Group [<sup>1</sup>](#a002) | 77148 | 119579 |
| &nbsp;&nbsp;&nbsp;QuinStreet [<sup>1</sup>](#a002) | 45987 | 660833 |
|  |  | **780412** |
| MEDIA - 0.5% |  |  |
| &nbsp;&nbsp;&nbsp;Magnite [<sup>1</sup>](#a002) | 31720 | **514816** |
| **Total (Cost $839,717)** |  | **2229022** |
| **CONSUMER DISCRETIONARY – 10.6%** |  |  |
| AUTOMOBILE COMPONENTS - 0.4% |  |  |
| &nbsp;&nbsp;&nbsp;Stoneridge [<sup>1</sup>](#a002) | 68997 | **399493** |
| DIVERSIFIED CONSUMER SERVICES - 1.9% |  |  |
| &nbsp;&nbsp;&nbsp;Legacy Education [<sup>1</sup>](#a002) | 81917 | 834734 |
| &nbsp;&nbsp;&nbsp;**Lincoln Educational Services [<sup>1</sup>](#a002)** | 41816 | 1009857 |
|  |  | **1844591** |
| HOTELS, RESTAURANTS & LEISURE - 1.7% |  |  |
| &nbsp;&nbsp;&nbsp;Century Casinos [<sup>1</sup>](#a002) | 149217 | 198459 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)First Watch Restaurant Group [<sup>1</sup>](#a002) | 12299 | 185469 |
| &nbsp;&nbsp;&nbsp;Lindblad Expeditions Holdings [<sup>1</sup>](#a002) | 67135 | 968087 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Target Hospitality [<sup>1</sup>](#a002) | 32256 | 258370 |
|  |  | **1610385** |
| HOUSEHOLD DURABLES - 1.4% |  |  |
| &nbsp;&nbsp;&nbsp;Hovnanian Enterprises Cl. A [<sup>1</sup>](#a002) | 3492 | 340610 |
| &nbsp;&nbsp;&nbsp;Legacy Housing [<sup>1</sup>](#a002) | 33004 | 644238 |
| &nbsp;&nbsp;&nbsp;LGI Homes [<sup>1</sup>](#a002) | 8065 | 346472 |
|  |  | **1331320** |
| LEISURE PRODUCTS - 1.2% |  |  |
| &nbsp;&nbsp;&nbsp;American Outdoor Brands [<sup>1</sup>](#a002) | 77862 | 601873 |
| &nbsp;&nbsp;&nbsp;MasterCraft Boat Holdings [<sup>1</sup>](#a002) | 28122 | 531787 |
|  |  | **1133660** |
| SPECIALTY RETAIL - 3.6% |  |  |
| &nbsp;&nbsp;&nbsp;Bed Bath & Beyond [<sup>1</sup>](#a002) | 69197 | 377816 |
| &nbsp;&nbsp;&nbsp;**Citi Trends [<sup>1</sup>](#a002)** | 23579 | 979943 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)J.Jill | 17917 | 245821 |
| &nbsp;&nbsp;&nbsp;OneWater Marine Cl. A [<sup>1</sup>](#a002) | 45262 | 489735 |
| &nbsp;&nbsp;&nbsp;**RealReal [<sup>1</sup>](#a002)** | 70145 | 1106888 |
| &nbsp;&nbsp;&nbsp;Shoe Carnival | 13939 | 235290 |
|  |  | **3435493** |
| TEXTILES, APPAREL & LUXURY GOODS - 0.4% |  |  |
| &nbsp;&nbsp;&nbsp;Lakeland Industries | 39067 | **345352** |
| **Total (Cost $9,012,681)** |  | **10100294** |
| **CONSUMER STAPLES – 0.8%** |  |  |
| FOOD PRODUCTS - 0.8% |  |  |
| &nbsp;&nbsp;&nbsp;Seneca Foods Cl. A [<sup>1</sup>](#a002) | 6736 | **745204** |
| **Total (Cost $358,196)** |  | **745204** |
| **ENERGY – 4.6%** |  |  |
| ENERGY EQUIPMENT & SERVICES - 4.1% |  |  |
| &nbsp;&nbsp;&nbsp;**Natural Gas Services Group** | 35835 | 1205848 |
| &nbsp;&nbsp;&nbsp;NPK International [<sup>1</sup>](#a002) | 80760 | 962659 |
| &nbsp;&nbsp;&nbsp;Pason Systems | 72779 | 635765 |
| &nbsp;&nbsp;&nbsp;Ranger Energy Services Cl. A | 40707 | 569084 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Select Water Solutions Cl. A | 52727 | 554688 |
|  |  | **3928044** |
| OIL, GAS & CONSUMABLE FUELS - 0.5% |  |  |
| &nbsp;&nbsp;&nbsp;SandRidge Energy | 32732 | **472323** |
| **Total (Cost $2,283,078)** |  | **4400367** |
| **FINANCIALS – 15.3%** |  |  |
| BANKS - 9.7% |  |  |
| &nbsp;&nbsp;&nbsp;BayCom Corp. | 23355 | 686637 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Chain Bridge Bancorp Cl. A [<sup>1</sup>](#a002) | 18375 | 636510 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Coastal Financial [<sup>1</sup>](#a002) | 6263 | 717677 |
| &nbsp;&nbsp;&nbsp;**Customers Bancorp [<sup>1</sup>](#a002)** | 13361 | 976956 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Esquire Financial Holdings | 5313 | 542298 |
| &nbsp;&nbsp;&nbsp;HBT Financial | 22393 | 578859 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Hingham Institution for Savings | 2160 | 613354 |
| &nbsp;&nbsp;&nbsp;HomeTrust Bancshares | 13887 | 596308 |
| &nbsp;&nbsp;&nbsp;**Investar Holding** | 43694 | 1167504 |
| &nbsp;&nbsp;&nbsp;Midway Investments <sup>[1](#a002),[2](#a003)</sup> | 1751577 | 0 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Northeast Bank | 7192 | 747464 |
| &nbsp;&nbsp;&nbsp;Stellar Bancorp | 29252 | 905057 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)West Coast Community Bancorp [<sup>3</sup>](#a004) | 1557 | 68119 |
| &nbsp;&nbsp;&nbsp;**Western New England Bancorp** | 82532 | 1041554 |
|  |  | **9278297** |
| CAPITAL MARKETS - 3.3% |  |  |
| &nbsp;&nbsp;&nbsp;Canaccord Genuity Group | 94613 | 762391 |
| &nbsp;&nbsp;&nbsp;Oppenheimer Holdings Cl. A | 9987 | 721960 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Perella Weinberg Partners Cl. A | 10231 | 176996 |
| &nbsp;&nbsp;&nbsp;Silvercrest Asset Management Group Cl. A | 33030 | 501726 |
| &nbsp;&nbsp;&nbsp;Sprott | 9877 | 967443 |
|  |  | **3130516** |
| CONSUMER FINANCE - 1.1% |  |  |
| &nbsp;&nbsp;&nbsp;**EZCORP Cl. A [<sup>1</sup>](#a002)** | 52910 | **1027512** |
| FINANCIAL SERVICES - 0.3% |  |  |
| &nbsp;&nbsp;&nbsp;Cass Information Systems | 498 | 20677 |
| &nbsp;&nbsp;&nbsp;Repay Holdings Cl. A [<sup>1</sup>](#a002) | 82835 | 302348 |
|  |  | **323025** |
| INSURANCE - 0.9% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)International General Insurance Holdings | 34160 | **857074** |
| **Total (Cost $9,955,148)** |  | **14616424** |
| **HEALTH CARE – 12.8%** |  |  |
| BIOTECHNOLOGY - 1.4% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Absci Corporation <sup>[1](#a002),[4](#a005)</sup> | 67653 | 236109 |
| &nbsp;&nbsp;&nbsp;CareDx [<sup>1</sup>](#a002) | 33491 | 630970 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)ORIC Pharmaceuticals [<sup>1</sup>](#a002) | 60648 | 496101 |
|  |  | **1363180** |
| HEALTH CARE EQUIPMENT & SUPPLIES - 4.7% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)AngioDynamics [<sup>1</sup>](#a002) | 16734 | 214865 |
| &nbsp;&nbsp;&nbsp;Apyx Medical [<sup>1</sup>](#a002) | 215125 | 752938 |
| &nbsp;&nbsp;&nbsp;Artivion [<sup>1</sup>](#a002) | 20208 | 921687 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Delcath Systems [<sup>1</sup>](#a002) | 14274 | 144167 |
| &nbsp;&nbsp;&nbsp;**Establishment Labs Holdings [<sup>1</sup>](#a002)** | 17645 | 1285968 |
| &nbsp;&nbsp;&nbsp;Inogen [<sup>1</sup>](#a002) | 57517 | 386514 |
| &nbsp;&nbsp;&nbsp;Profound Medical [<sup>1</sup>](#a002) | 97087 | 761813 |
|  |  | **4467952** |
| HEALTH CARE PROVIDERS & SERVICES - 0.9% |  |  |
| &nbsp;&nbsp;&nbsp;AMN Healthcare Services [<sup>1</sup>](#a002) | 38350 | 604396 |
| &nbsp;&nbsp;&nbsp;Cross Country Healthcare [<sup>1</sup>](#a002) | 35430 | 286983 |
|  |  | **891379** |
| HEALTH CARE TECHNOLOGY - 0.8% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Simulations Plus [<sup>1</sup>](#a002) | 37472 | 683114 |

---

See Notes to Financial Statements 1

Schedules of Investments December 31, 2025

**Royce Capital Fund - Micro-Cap Portfolio (continued)**

---

| | | |
|:---|:---|:---|
| | **SHARES** | **VALUE** |
| **HEALTH CARE (continued)** |  |  |
| HEALTH CARE TECHNOLOGY (continued) |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)SOPHiA GENETICS [<sup>1</sup>](#a002) | 15288 | $71395 |
|  |  | **754509** |
| LIFE SCIENCES TOOLS & SERVICES - 3.4% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Alpha Teknova <sup>[1](#a002),[4](#a005)</sup> | 27206 | 103383 |
| &nbsp;&nbsp;&nbsp;BioLife Solutions [<sup>1</sup>](#a002) | 32301 | 781038 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Cytek Biosciences [<sup>1</sup>](#a002) | 155183 | 783674 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Maravai LifeSciences Holdings Cl. A [<sup>1</sup>](#a002) | 162808 | 529126 |
| &nbsp;&nbsp;&nbsp;Mesa Laboratories | 9226 | 724241 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Standard BioTools [<sup>1</sup>](#a002) | 242065 | 309843 |
|  |  | **3231305** |
| PHARMACEUTICALS - 1.6% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Esperion Therapeutics [<sup>1</sup>](#a002) | 157777 | 583775 |
| &nbsp;&nbsp;&nbsp;Harrow <sup>[1](#a002),[4](#a005)</sup> | 19709 | 965741 |
|  |  | **1549516** |
| **Total (Cost $10,527,524)** |  | **12257841** |
| **INDUSTRIALS – 24.7%** |  |  |
| AEROSPACE & DEFENSE - 2.4% |  |  |
| &nbsp;&nbsp;&nbsp;**Astronics Corporation [<sup>1</sup>](#a002)** | 18109 | 982232 |
| &nbsp;&nbsp;&nbsp;CPI Aerostructures [<sup>1</sup>](#a002) | 95135 | 376735 |
| &nbsp;&nbsp;&nbsp;Park Aerospace | 45224 | 965080 |
|  |  | **2324047** |
| AIR FREIGHT & LOGISTICS - 1.0% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Forward Air <sup>[1](#a002),[4](#a005)</sup> | 20058 | 501450 |
| &nbsp;&nbsp;&nbsp;Radiant Logistics [<sup>1</sup>](#a002) | 67655 | 428256 |
|  |  | **929706** |
| BUILDING PRODUCTS - 1.0% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Janus International Group [<sup>1</sup>](#a002) | 58303 | 381302 |
| &nbsp;&nbsp;&nbsp;Quanex Building Products | 39766 | 611601 |
|  |  | **992903** |
| COMMERCIAL SERVICES & SUPPLIES - 4.4% |  |  |
| &nbsp;&nbsp;&nbsp;Acme United | 19360 | 780402 |
| &nbsp;&nbsp;&nbsp;**CECO Environmental [<sup>1</sup>](#a002)** | 16648 | 996383 |
| &nbsp;&nbsp;&nbsp;Liquidity Services [<sup>1</sup>](#a002) | 29489 | 893811 |
| &nbsp;&nbsp;&nbsp;Montrose Environmental Group [<sup>1</sup>](#a002) | 32080 | 796546 |
| &nbsp;&nbsp;&nbsp;VSE Corporation | 4327 | 747576 |
|  |  | **4214718** |
| CONSTRUCTION & ENGINEERING - 4.4% |  |  |
| &nbsp;&nbsp;&nbsp;Ameresco Cl. A [<sup>1</sup>](#a002) | 24276 | 711044 |
| &nbsp;&nbsp;&nbsp;Bowman Consulting Group [<sup>1</sup>](#a002) | 5965 | 196964 |
| &nbsp;&nbsp;&nbsp;Concrete Pumping Holdings | 85878 | 576241 |
| &nbsp;&nbsp;&nbsp;IES Holdings [<sup>1</sup>](#a002) | 2084 | 810718 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Limbach Holdings [<sup>1</sup>](#a002) | 10560 | 822096 |
| &nbsp;&nbsp;&nbsp;**NWPX Infrastructure [<sup>1</sup>](#a002)** | 18126 | 1132694 |
|  |  | **4249757** |
| ELECTRICAL EQUIPMENT - 1.7% |  |  |
| &nbsp;&nbsp;&nbsp;American Superconductor [<sup>1</sup>](#a002) | 12925 | 371981 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Hammond Power Solutions Cl. A | 5859 | 680772 |
| &nbsp;&nbsp;&nbsp;LSI Industries | 29228 | 535457 |
|  |  | **1588210** |
| GROUND TRANSPORTATION - 0.7% |  |  |
| &nbsp;&nbsp;&nbsp;Covenant Logistics Group Cl. A | 29188 | **643303** |
| MACHINERY - 4.3% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Aebi Schmidt Holding | 33071 | 418348 |
| &nbsp;&nbsp;&nbsp;Energy Recovery [<sup>1</sup>](#a002) | 30636 | 413280 |
| &nbsp;&nbsp;&nbsp;**Graham Corporation [<sup>1</sup>](#a002)** | 16613 | 1067053 |
| &nbsp;&nbsp;&nbsp;Lindsay Corporation | 4137 | 487628 |
| &nbsp;&nbsp;&nbsp;Luxfer Holdings | 69016 | 933787 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Perma-Pipe International Holdings [<sup>1</sup>](#a002) | 13731 | 416873 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Titan International [<sup>1</sup>](#a002) | 45961 | 359875 |
| &nbsp;&nbsp;&nbsp;Westport Fuel Systems <sup>[1](#a002),[4](#a005)</sup> | 21083 | 33100 |
|  |  | **4129944** |
| MARINE TRANSPORTATION - 0.5% |  |  |
| &nbsp;&nbsp;&nbsp;Clarkson [<sup>3</sup>](#a004) | 8966 | **461098** |
| PROFESSIONAL SERVICES - 1.3% |  |  |
| &nbsp;&nbsp;&nbsp;Asure Software [<sup>1</sup>](#a002) | 18231 | 171736 |
| &nbsp;&nbsp;&nbsp;Kforce | 11377 | 351777 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Mistras Group [<sup>1</sup>](#a002) | 13525 | 171091 |
| &nbsp;&nbsp;&nbsp;Resources Connection | 41750 | 210420 |
| &nbsp;&nbsp;&nbsp;TrueBlue [<sup>1</sup>](#a002) | 72560 | 330148 |
|  |  | **1235172** |
| TRADING COMPANIES & DISTRIBUTORS - 3.0% |  |  |
| &nbsp;&nbsp;&nbsp;Alta Equipment Group | 55386 | 254776 |
| &nbsp;&nbsp;&nbsp;Distribution Solutions Group [<sup>1</sup>](#a002) | 24623 | 674424 |
| &nbsp;&nbsp;&nbsp;EVI Industries | 26763 | 659440 |
| &nbsp;&nbsp;&nbsp;Titan Machinery [<sup>1</sup>](#a002) | 34569 | 519918 |
| &nbsp;&nbsp;&nbsp;Transcat [<sup>1</sup>](#a002) | 12810 | 726711 |
|  |  | **2835269** |
| **Total (Cost $17,694,020)** |  | **23604127** |
| **INFORMATION TECHNOLOGY – 21.0%** |  |  |
| COMMUNICATIONS EQUIPMENT - 4.3% |  |  |
| &nbsp;&nbsp;&nbsp;ADTRAN Holdings [<sup>1</sup>](#a002) | 89925 | 781448 |
| &nbsp;&nbsp;&nbsp;**Applied Optoelectronics <sup>1,4</sup>** | 28807 | 1004212 |
| &nbsp;&nbsp;&nbsp;Clearfield [<sup>1</sup>](#a002) | 23086 | 672957 |
| &nbsp;&nbsp;&nbsp;**Digi International [<sup>1</sup>](#a002)** | 24735 | 1070778 |
| &nbsp;&nbsp;&nbsp;NETGEAR [<sup>1</sup>](#a002) | 7562 | 185496 |
| &nbsp;&nbsp;&nbsp;Ribbon Communications [<sup>1</sup>](#a002) | 134633 | 387743 |
|  |  | **4102634** |
| ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 8.6% |  |  |
| &nbsp;&nbsp;&nbsp;Arlo Technologies [<sup>1</sup>](#a002) | 38221 | 534712 |
| &nbsp;&nbsp;&nbsp;**Bel Fuse Cl. B** | 6553 | 1111585 |
| &nbsp;&nbsp;&nbsp;Climb Global Solutions | 6902 | 709457 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Kraken Robotics [<sup>1</sup>](#a002) | 36423 | 169835 |
| &nbsp;&nbsp;&nbsp;**LightPath Technologies Cl. A [<sup>1</sup>](#a002)** | 111233 | 1201316 |
| &nbsp;&nbsp;&nbsp;Luna Innovations <sup>[1](#a002),[3](#a004)</sup> | 39687 | 43656 |
| &nbsp;&nbsp;&nbsp;**nLIGHT [<sup>1</sup>](#a002)** | 30278 | 1135728 |
| &nbsp;&nbsp;&nbsp;PAR Technology [<sup>1</sup>](#a002) | 13238 | 480275 |
| &nbsp;&nbsp;&nbsp;Powerfleet [<sup>1</sup>](#a002) | 171629 | 913066 |
| &nbsp;&nbsp;&nbsp;Richardson Electronics | 84658 | 921079 |
| &nbsp;&nbsp;&nbsp;SmartRent Cl. A [<sup>1</sup>](#a002) | 50505 | 102020 |
| &nbsp;&nbsp;&nbsp;Vishay Precision Group [<sup>1</sup>](#a002) | 24288 | 935088 |
|  |  | **8257817** |
| SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.3% |  |  |
| &nbsp;&nbsp;&nbsp;Aehr Test Systems <sup>[1](#a002),[4](#a005)</sup> | 10156 | 205050 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Alpha and Omega Semiconductor [<sup>1</sup>](#a002) | 15231 | 301726 |
| &nbsp;&nbsp;&nbsp;Camtek [<sup>1</sup>](#a002) | 6715 | 714107 |
| &nbsp;&nbsp;&nbsp;**Cohu [<sup>1</sup>](#a002)** | 43081 | 1002495 |
| &nbsp;&nbsp;&nbsp;**Ichor Holdings [<sup>1</sup>](#a002)** | 54705 | 1008213 |
| &nbsp;&nbsp;&nbsp;inTEST Corporation [<sup>1</sup>](#a002) | 70260 | 524842 |
| &nbsp;&nbsp;&nbsp;Kopin Corporation [<sup>1</sup>](#a002) | 374717 | 876838 |
| &nbsp;&nbsp;&nbsp;Nova [<sup>1</sup>](#a002) | 2562 | 841335 |
| &nbsp;&nbsp;&nbsp;NVE Corporation | 2966 | 175973 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Penguin Solutions [<sup>1</sup>](#a002) | 18948 | 370623 |
| &nbsp;&nbsp;&nbsp;Ultra Clean Holdings [<sup>1</sup>](#a002) | 35644 | 902862 |
|  |  | **6924064** |

---

See Notes to Financial Statements 2

Schedules of Investments December 31, 2025

**Royce Capital Fund - Micro-Cap Portfolio (continued)**

---

| | | |
|:---|:---|:---|
| | **SHARES** | **VALUE** |
| **INFORMATION TECHNOLOGY (continued)** |  |  |
| SOFTWARE - 0.4% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Similarweb [<sup>1</sup>](#a002) | 49501 | $**370762** |
| TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 0.4% |  |  |
| &nbsp;&nbsp;&nbsp;AstroNova [<sup>1</sup>](#a002) | 44164 | **382019** |
| **Total (Cost $11,667,083)** |  | **20037296** |
| **MATERIALS – 4.2%** |  |  |
| CHEMICALS - 1.5% |  |  |
| &nbsp;&nbsp;&nbsp;Core Molding Technologies [<sup>1</sup>](#a002) | 25538 | 512037 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)5N Plus [<sup>1</sup>](#a002) | 70883 | 915119 |
|  |  | **1427156** |
| METALS & MINING - 2.7% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Alphamin Resources | 43153 | 37414 |
| &nbsp;&nbsp;&nbsp;Altius Minerals | 31762 | 945073 |
| &nbsp;&nbsp;&nbsp;Ferroglobe | 130217 | 604207 |
| &nbsp;&nbsp;&nbsp;Major Drilling Group International [<sup>1</sup>](#a002) | 102097 | 959565 |
|  |  | **2546259** |
| **Total (Cost $2,227,578)** |  | **3973415** |
| **REAL ESTATE – 0.4%** |  |  |
| REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.4% |  |  |
| &nbsp;&nbsp;&nbsp;Marcus & Millichap | 13482 | **367924** |
| **Total (Cost $419,764)** |  | **367924** |
| **TOTAL COMMON STOCKS** |  |  |
| **(Cost $64,984,789)** |  | **92331914** |
| **WARRANTS – 0.0%** |  |  |
| **CONSUMER DISCRETIONARY – 0.0%** |  |  |
| SPECIALTY RETAIL - 0.0% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Bed Bath & Beyond (Warrants) [<sup>1</sup>](#a002) | 3769 | **2488** |
| **Total (Cost $0)** |  | **2488** |

---

**COLLATERAL RECEIVED FOR SECURITIES LOANED – 0.6%** Money Market Funds

Federated Hermes Government Obligations Fund - Institutional Shares (7 day yield-3.63%)

---

| | |
|:---|:---|
| **(Cost $578,080)** | **578080** |
| **INVESTMENTS AT VALUE** |  |
| **(Cost $65,562,869)** | **92912482** |

---

**REPURCHASE AGREEMENT– 3.4%**

Fixed Income Clearing Corporation, 3.00% dated 12/31/25, due 1/2/26, maturity value

$3,260,132 (collateralized by obligations of U.S. Government Agencies, 2.75%

due 4/30/27, valued at $3,324,956)

---

| | |
|:---|:---|
| **(Cost $3,259,589)** | **3259589** |
| **TOTAL INVESTMENTS – 100.7%** |  |
| **(Cost $68,822,458)** | **96172071** |
| **LIABILITIES LESS CASH AND OTHER ASSETS – (0.7)%** | **(659978)** |
| **NET ASSETS – 100.0%** | $**95512093** |

---

**Royce Capital Fund - Small-Cap Portfolio** 

Common Stocks – 99.0%

---

| | | |
|:---|:---|:---|
| | **SHARES** | **VALUE** |
| **CONSUMER DISCRETIONARY – 22.3%** | | |
| AUTOMOBILE COMPONENTS - 5.0% |  |  |
| &nbsp;&nbsp;&nbsp;Gentex Corporation | 113861 | $2649546 |
| &nbsp;&nbsp;&nbsp;**Lear Corporation** | 29640 | 3396744 |
| &nbsp;&nbsp;&nbsp;**Visteon Corporation** | 28541 | 2714249 |
|  |  | **8760539** |
| DIVERSIFIED CONSUMER SERVICES - 1.9% |  |  |
| &nbsp;&nbsp;&nbsp;frontdoor [<sup>1</sup>](#a002) | 33006 | 1904116 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Stride [<sup>1</sup>](#a002) | 22100 | 1434953 |
|  |  | **3339069** |
| HOTELS, RESTAURANTS & LEISURE - 0.8% |  |  |
| &nbsp;&nbsp;<sup>[†](#a001)</sup>Boyd Gaming | 16556 | **1411233** |
| HOUSEHOLD DURABLES - 6.6% |  |  |
| &nbsp;&nbsp;&nbsp;Ethan Allen Interiors | 47857 | 1093054 |
| &nbsp;&nbsp;&nbsp;**M/I Homes [<sup>1</sup>](#a002)** | 24443 | 3127482 |
| &nbsp;&nbsp;&nbsp;Meritage Homes | 25347 | 1667833 |
| &nbsp;&nbsp;&nbsp;**PulteGroup** | 26270 | 3080420 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Taylor Morrison Home [<sup>1</sup>](#a002) | 43245 | 2545833 |
|  |  | **11514622** |
| SPECIALTY RETAIL - 7.3% |  |  |
| &nbsp;&nbsp;&nbsp;Academy Sports & Outdoors | 42439 | 2120253 |
| &nbsp;&nbsp;&nbsp;**Buckle (The)** | 58401 | 3119781 |
| &nbsp;&nbsp;&nbsp;J.Jill | 156960 | 2153491 |
| &nbsp;&nbsp;&nbsp;Shoe Carnival | 116449 | 1965659 |
| &nbsp;&nbsp;&nbsp;Signet Jewelers | 27189 | 2253424 |
| &nbsp;&nbsp;&nbsp;Williams-Sonoma | 5594 | 999033 |
|  |  | **12611641** |
| TEXTILES, APPAREL & LUXURY GOODS - 0.7% |  |  |
| &nbsp;&nbsp;&nbsp;Kontoor Brands | 21010 | **1283501** |
| **Total (Cost $32,513,719)** |  | **38920605** |
| **CONSUMER STAPLES – 1.7%** |  |  |
| CONSUMER STAPLES DISTRIBUTION & RETAIL - 1.7% |  |  |
| &nbsp;&nbsp;&nbsp;**Village Super Market Cl. A** | 82096 | **2905788** |
| **Total (Cost $1,821,277)** |  | **2905788** |
| **ENERGY – 7.3%** |  |  |
| OIL, GAS & CONSUMABLE FUELS - 7.3% |  |  |
| &nbsp;&nbsp;&nbsp;Chord Energy | 26269 | 2435136 |
| &nbsp;&nbsp;&nbsp;Civitas Resources | 65311 | 1769275 |
| &nbsp;&nbsp;&nbsp;**Matador Resources** | 66868 | 2837878 |
| &nbsp;&nbsp;&nbsp;Riley Exploration Permian | 35357 | 933425 |
| &nbsp;&nbsp;&nbsp;SM Energy | 101120 | 1890944 |
| &nbsp;&nbsp;&nbsp;**Teekay Tankers Cl. A** | 52665 | 2813364 |
| **Total (Cost $15,787,681)** |  | **12680022** |
| **FINANCIALS – 27.9%** |  |  |
| BANKS - 20.9% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Beacon Financial | 82490 | 2175261 |
| &nbsp;&nbsp;&nbsp;Burke & Herbert Financial Services | 38324 | 2387969 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Business First Bancshares | 86195 | 2253137 |
| &nbsp;&nbsp;&nbsp;Citizens Community Bancorp | 31104 | 554273 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Civista Bancshares | 117655 | 2614294 |
| &nbsp;&nbsp;&nbsp;CNB Financial | 76202 | 1994206 |
| &nbsp;&nbsp;&nbsp;Dime Community Bancshares | 26946 | 810805 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)**First Bank** | 175356 | 2886360 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)FS Bancorp | 62724 | 2582347 |
| &nbsp;&nbsp;&nbsp;Heritage Financial | 86150 | 2037448 |
| &nbsp;&nbsp;&nbsp;Mid Penn Bancorp | 71034 | 2203475 |
| &nbsp;&nbsp;&nbsp;OceanFirst Financial | 99443 | 1785002 |

---

See Notes to Financial Statements 3

Schedules of Investments December 31, 2025

**Royce Capital Fund - Small-Cap Portfolio (continued)**

---

| | | |
|:---|:---|:---|
| | **SHARES** | **VALUE** |
| **FINANCIALS (continued)** |  |  |
| BANKS (continued) |  |  |
| &nbsp;&nbsp;&nbsp;Princeton Bancorp | 39144 | $1357905 |
| &nbsp;&nbsp;&nbsp;**Timberland Bancorp** | 87925 | 3147715 |
| &nbsp;&nbsp;&nbsp;TrustCo Bank Corp NY | 24894 | 1028869 |
| &nbsp;&nbsp;&nbsp;**Unity Bancorp** | 60590 | 3133715 |
| &nbsp;&nbsp;&nbsp;Univest Financial | 49610 | 1624231 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)WesBanco | 27486 | 913635 |
| &nbsp;&nbsp;&nbsp;Western New England Bancorp | 66887 | 844114 |
|  |  | **36334761** |
| CAPITAL MARKETS - 1.4% |  |  |
| &nbsp;&nbsp;&nbsp;Evercore Cl. A | 7059 | **2401824** |
| FINANCIAL SERVICES - 1.6% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)**Enact Holdings** | 72534 | **2875248** |
| INSURANCE - 4.0% |  |  |
| &nbsp;&nbsp;&nbsp;Donegal Group Cl. A | 107921 | 2156262 |
| &nbsp;&nbsp;&nbsp;Tiptree | 143448 | 2620795 |
| &nbsp;&nbsp;&nbsp;United Fire Group | 60507 | 2199429 |
|  |  | **6976486** |
| **Total (Cost $35,148,893)** |  | **48588319** |

---

**HEALTH CARE – 10.9%**

BIOTECHNOLOGY - 2.8%

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Catalyst Pharmaceuticals [<sup>1</sup>](#a002)** | 143707 | 3354121 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Entrada Therapeutics [<sup>1</sup>](#a002) | 157249 | 1616520 |
|  |  | **4970641** |
| HEALTH CARE PROVIDERS & SERVICES - 1.6% |  |  |
| &nbsp;&nbsp;&nbsp;**Molina Healthcare [<sup>1</sup>](#a002)** | 15998 | **2776293** |
| PHARMACEUTICALS - 6.5% |  |  |
| &nbsp;&nbsp;&nbsp;Amphastar Pharmaceuticals [<sup>1</sup>](#a002) | 86561 | 2318104 |
| &nbsp;&nbsp;&nbsp;Collegium Pharmaceutical [<sup>1</sup>](#a002) | 53861 | 2493764 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)CorMedix [<sup>1</sup>](#a002) | 155067 | 1803429 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Harmony Biosciences Holdings [<sup>1</sup>](#a002) | 52628 | 1969340 |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Innoviva [<sup>1</sup>](#a002) | 90717 | 1813433 |
| &nbsp;&nbsp;&nbsp;SIGA Technologies | 148950 | 910084 |
|  |  | **11308154** |
| **Total (Cost $15,047,547)** |  | **19055088** |
| **INDUSTRIALS – 14.0%** |  |  |
| BUILDING PRODUCTS - 0.4% |  |  |
| &nbsp;&nbsp;&nbsp;UFP Industries | 8085 | **736139** |
| COMMERCIAL SERVICES & SUPPLIES - 1.8% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)**Interface** | 109575 | **3059334** |
| CONSTRUCTION & ENGINEERING - 0.9% |  |  |
| &nbsp;&nbsp;&nbsp;Sterling Infrastructure <sup>[1](#a002),[4](#a005)</sup> | 4929 | **1509408** |
| GROUND TRANSPORTATION - 1.0% |  |  |
| &nbsp;&nbsp;&nbsp;ArcBest Corporation | 24541 | **1820697** |
| MACHINERY - 3.2% |  |  |
| &nbsp;&nbsp;&nbsp;**Allison Transmission Holdings** | 30874 | 3022565 |
| &nbsp;&nbsp;&nbsp;Blue Bird [<sup>1</sup>](#a002) | 53537 | 2516239 |
|  |  | **5538804** |
| MARINE TRANSPORTATION - 1.7% |  |  |
| &nbsp;&nbsp;&nbsp;**Genco Shipping & Trading** | 164837 | **3037946** |
| PROFESSIONAL SERVICES - 5.0% |  |  |
| &nbsp;&nbsp;&nbsp;Barrett Business Services | 35905 | 1300120 |
| &nbsp;&nbsp;&nbsp;**IBEX [<sup>1</sup>](#a002)** | 88955 | 3396302 |
| &nbsp;&nbsp;&nbsp;Korn Ferry | 39441 | 2603895 |
| &nbsp;&nbsp;&nbsp;MAXIMUS | 15430 | 1331917 |
|  |  | **8632234** |
| **Total (Cost $14,923,723)** |  | **24334562** |

---

---

| | | |
|:---|:---|:---|
| **INFORMATION TECHNOLOGY – 13.5%** | **INFORMATION TECHNOLOGY – 13.5%** | |
| ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 9.1% |  |  |
| &nbsp;&nbsp;&nbsp;Bel Fuse Cl. B | 10025 | 1700541 |
| &nbsp;&nbsp;&nbsp;ePlus | 23593 | 2069106 |
| &nbsp;&nbsp;&nbsp;Flex [<sup>1</sup>](#a002) | 43002 | 2598181 |
| &nbsp;&nbsp;&nbsp;Jabil | 8933 | 2036902 |
| &nbsp;&nbsp;&nbsp;PC Connection | 36363 | 2100327 |
| &nbsp;&nbsp;&nbsp;Sanmina Corporation [<sup>1</sup>](#a002) | 14858 | 2229740 |
| &nbsp;&nbsp;&nbsp;**TD SYNNEX** | 21070 | 3165346 |
|  |  | **15900143** |
| SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.2% |  |  |
| &nbsp;&nbsp;&nbsp;Amkor Technology | 50249 | **1983831** |
| SOFTWARE - 1.2% |  |  |
| &nbsp;&nbsp;&nbsp;Adeia | 118763 | **2048662** |
| TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 2.0% |  |  |
| &nbsp;&nbsp;&nbsp;**Diebold Nixdorf [<sup>1</sup>](#a002)** | 52144 | **3540056** |
| **Total (Cost $9,733,587)** |  | **23472692** |
| **MATERIALS – 1.4%** |  |  |
| METALS & MINING - 1.4% |  |  |
| &nbsp;&nbsp;[<sup>†</sup>](#a001)Worthington Steel | 69240 | **2397089** |
| **Total (Cost $2,016,909)** |  | **2397089** |

---

---

| | |
|:---|:---|
| **TOTAL COMMON STOCKS** | |
| **(Cost $126,993,336)** | **172354165** |
| **INVESTMENTS AT VALUE** |  |
| **(Cost $126,993,336)** | **172354165** |
| **REPURCHASE AGREEMENT– 1.2%** |  |
| Fixed Income Clearing Corporation, 3.00% dated 12/31/25, due 1/2/26, maturity value <br> $2,040,287 (collateralized by obligations of U.S. Government Agencies, 2.75% |  |
| due 4/30/27, valued at $2,080,937) |  |
| **(Cost $2,039,947)** | **2039947** |
| **TOTAL INVESTMENTS – 100.2%** |  |
| **(Cost $129,033,283)** | **174394112** |
| **LIABILITIES LESS CASH AND OTHER ASSETS – (0.2)%** | **(311843)** |
| **NET ASSETS – 100.0%** | $**174082269** |

---

See Notes to Financial Statements 4

Schedules of Investments December 31, 2025

<sup>†</sup> New additions in 2025.

<sup>1</sup> Non-income producing.

<sup>2</sup> A security for which market quotations are not readily available represents 0.0% of net assets for Micro-Cap Portfolio. This security has been valued at its fair value under procedures approved by the Fund's Board of Trustees. This security is defined as a Level 3 security due to the use of significant unobservable inputs in the determination of fair value. See Notes to Financial Statements.

<sup>3</sup> These securities are defined as Level 2 securities due to fair value being based on quoted prices for similar securities and/or due to the application of fair value factors. See Notes to Financial Statements.

<sup>4</sup> All or a portion of these securities were on loan as of December 31, 2025.

**Bold indicates a Fund's 20 largest equity holdings in terms of December 31, 2025, market value.**

See Notes to Financial Statements 5

Statements of Assets and Liabilities December 31, 2025

---

| | | |
|:---|:---|:---|
| | **Micro-Cap<br> Portfolio** | **Small-Cap<br> Portfolio** |
| ASSETS: |  |  |
| Investments at value (including collateral on loaned securities)<sup>[1](#b001)</sup> | $92912482 | $172354165 |
| Repurchase agreements (at cost and value) | 3259589 | 2039947 |
| Foreign currency<sup>[2](#b002)</sup> | 5859 | – |
| Receivable for investments sold | 119450 | – |
| Receivable for capital shares sold | 3940 | 1516 |
| Receivable for dividends and interest | 23522 | 110074 |
| Receivable for securities lending income | 588 | 184 |
| Prepaid expenses and other assets | 642 | 1261 |
| **Total Assets** | **96326072** | **174507147** |
| LIABILITIES: |  |  |
| Payable for collateral on loaned securities | 578080 | – |
| Payable for investments purchased | 23562 | 26448 |
| Payable for capital shares redeemed | 35407 | 105447 |
| Payable for investment advisory fees | 81853 | 150666 |
| Payable for trustees' fees | 10354 | 19322 |
| Accrued expenses | 84723 | 122995 |
| **Total Liabilities** | **813979** | **424878** |
| **Net Assets** | $**95512093** | $**174082269** |
| ANALYSIS OF NET ASSETS: |  |  |
| Paid-in capital | $42337476 | $91427186 |
| Total distributable earnings (loss) | 53174617 | 82655083 |
| **Net Assets** | $**95512093** | $**174082269** |
| &nbsp;&nbsp;&nbsp;Investment Class | $75833568 | $34014214 |
| &nbsp;&nbsp;&nbsp;Service Class | 19678525 | 140068055 |
| SHARES OUTSTANDING (unlimited number of $.001 par value): |  |  |
| &nbsp;&nbsp;&nbsp;Investment Class | 7975852 | 3609711 |
| &nbsp;&nbsp;&nbsp;Service Class | 2150460 | 15228084 |
| NET ASSET VALUES (Net Assets ÷ Shares Outstanding): |  |  |
| &nbsp;&nbsp;&nbsp;(offering and redemption price per share) |  |  |
| &nbsp;&nbsp;&nbsp;Investment Class | $9.51 | $9.42 |
| &nbsp;&nbsp;&nbsp;Service Class | 9.15 | 9.20 |
| Investments at identified cost | $65562869 | $126993336 |
| Market value of loaned securities<sup>[3](#b003)</sup> | 2179634 | 135995 |

---

<sup>1</sup> See Notes to Financial Statements for information on non-cash collateral on loaned securities.

<sup>2</sup> The cost of foreign currency was $5,871 for Micro-Cap Portfolio for the year ended December 31, 2025.

<sup>3</sup> Market value of loaned securities backed by non-cash collateral is as of prior business day.

See Notes to Financial Statements 6

Statements of Operations Year Ended December 31, 2025

---

| | | |
|:---|:---|:---|
| | **Micro-Cap<br> Portfolio** | **Small-Cap<br> Portfolio** |
| **INVESTMENT INCOME:** | | |
| INCOME: |  |  |
| Dividends | $964797 | $4698065 |
| Foreign withholding tax | (15253) | – |
| Interest | 138666 | 204940 |
| Securities lending | 24996 | 1229 |
| **Total income** | **1113206** | **4904234** |
| EXPENSES: |  |  |
| Investment advisory fees | 1187614 | 2200920 |
| Distribution fees | 42450 | 289836 |
| Administrative and office facilities | 92090 | 158914 |
| Custody | 42839 | 56869 |
| Trustees' fees | 38867 | 71760 |
| Audit | 38128 | 38307 |
| Shareholder reports | 20598 | 19965 |
| Shareholder servicing | 18536 | 17830 |
| Legal | 7394 | 14097 |
| Other expenses | 13290 | 24798 |
| **Total expenses** | **1501806** | **2893296** |
| Compensating balance credits | (208) | (186) |
| **Net expenses** | **1501598** | **2893110** |
| **Net investment income (loss)** | **(388392)** | **2011124** |
| **REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:**<br> NET REALIZED GAIN (LOSS): |  |  |
| Investments | 26313736 | 36229854 |
| Foreign currency transactions | (1191) |  |
| NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION): |  |  |
| Investments | (10982666) | (25078916) |
| Other assets and liabilities denominated in foreign currency | (1) |  |
| **Net realized and unrealized gain (loss) on investments and foreign currency** | **15329878** | **11150938** |
| **NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS** | $**14941486** | $**13162062** |

---

See Notes to Financial Statements 7

Statements of Changes in Net Assets

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Micro-Cap Portfolio** | **Micro-Cap Portfolio** | **Small-Cap Portfolio** | **Small-Cap Portfolio** |
| | **Year Ended 12/31/25** | **Year Ended 12/31/24** | **Year Ended 12/31/25** | **Year Ended 12/31/24** |
| INVESTMENT OPERATIONS: |  |  |  |  |
| Net investment income (loss) | $(388392) | $(572966) | $2011124 | $3395190 |
| Net realized gain (loss) on investments and foreign currency | 26312545 | 14363659 | 36229854 | 16086716 |
| Net change in unrealized appreciation (depreciation) on investments and foreign currency | (10982667) | 3273128 | (25078916) | (10018707) |
| **Net increase (decrease) in net assets from investment operations** | **14941486** | **17063821** | **13162062** | **9463199** |
| DISTRIBUTIONS: |  |  |  |  |
| **Total distributable earnings** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment Class | (11323991) | (7882834) | (2804063) | (6999795) |
| &nbsp;&nbsp;&nbsp;Service Class | (2965302) | (1343819) | (12012473) | (7487386) |
| **Total distributions** | **(14289293)** | **(9226653)** | **(14816536)** | **(14487181)** |
| CAPITAL SHARE TRANSACTIONS: |  |  |  |  |
| **Value of shares sold** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment Class | 8615993 | 6625394 | 11086435 | 8501926 |
| &nbsp;&nbsp;&nbsp;Service Class | 7142197 | 721181 | 66186919 | 4116794 |
| **Distributions reinvested** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment Class | 11323991 | 7882834 | 2804063 | 6999795 |
| &nbsp;&nbsp;&nbsp;Service Class | 2965302 | 1343819 | 12012473 | 7487386 |
| **Value of shares redeemed** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment Class | (62844654) | (20555018) | (113123286) | (27985937) |
| &nbsp;&nbsp;&nbsp;Service Class | (9091727) | (4069665) | (76234221) | (33411352) |
| **Net increase (decrease) in net assets from capital share transactions** | **(41888898)** | **(8051455)** | **(97267617)** | **(34291388)** |
| **Net Increase (Decrease) in Net Assets** | **(41236705)** | **(214287)** | **(98922091)** | **(39315370)** |
| NET ASSETS: |  |  |  |  |
| **Beginning of year** | **136748798** | **136963085** | **273004360** | **312319730** |
| **End of year** | $**95512093** | $**136748798** | $**174082269** | $**273004360** |

---

See Notes to Financial Statements 8

Financial Highlights

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund's performance for the periods presented. Per share amounts have been determined on the basis of the weighted average number of shares outstanding during the period.

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | | | | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets | | |
| |<br>Net Asset Value, Beginning of Period |<br>Net Investment Income (Loss) |<br>Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency |<br>Total from Investment Operations |<br>Distributions from Net Investment Income |<br>Distributions from Net Realized Gain on Investments and Foreign Currency |<br>Total Distributions |<br>Net Asset Value, End of Period |<br>Total Return |<br>Net Assets, End of Period (in thousands) | Prior to Fee Waivers, Expense Reimbursements and Balance Credits | Prior to Fee Waivers and Expense Reimbursements | Net of Fee Waivers and Expense Reimbursements |<br>Ratio of Net Investment Income (Loss) to Average Net Assets |<br>Portfolio Turnover Rate |
| **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** | **Micro-Cap Portfolio–Investment Class** |
| 2025 | $9.75 | $(0.03) | $1.44 | $1.41 | $– | $(1.65) | $(1.65) | $9.51 | 13.89% | $75834 | 1.22% | 1.22% | 1.22% | (0.28)% | 42% |
| 2024 | 9.17 | (0.04) | 1.32 | 1.28 | – | (0.70) | (0.70) | 9.75 | 13.67 | 117132 | 1.18 | 1.18 | 1.18 | (0.39) | 19 |
| 2023 | 7.72 | (0.03) | 1.48 | 1.45 | – | – | – | 9.17 | 18.78 | 116468 | 1.18 | 1.18 | 1.15 | (0.33) | 24 |
| 2022 | 14.77 | (0.05) | (3.28) | (3.33) | – | (3.72) | (3.72) | 7.72 | (22.43) | 109600 | 1.31 | 1.31 | 1.21 | (0.46) | 12 |
| 2021 | 11.91 | (0.08) | 3.61 | 3.53 | – | (0.67) | (0.67) | 14.77 | 29.98 | 157042 | 1.37 | 1.37 | 1.33 | (0.56) | 25 |
| **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** | **Micro-Cap Portfolio–Service Class** |
| 2025 | $9.41 | $(0.06) | $1.39 | $1.33 | $– | $(1.59) | $(1.59) | $9.15 | 13.58% | $19678 | 1.52% | 1.52% | 1.52% | (0.59)% | 42% |
| 2024 | 8.88 | (0.06) | 1.26 | 1.20 | – | (0.67) | (0.67) | 9.41 | 13.28 | 19617 | 1.45 | 1.45 | 1.45 | (0.66) | 19 |
| 2023 | 7.49 | (0.05) | 1.44 | 1.39 | – | – | – | 8.88 | 18.56 | 20495 | 1.46 | 1.46 | 1.42 | (0.61) | 24 |
| 2022 | 14.37 | (0.08) | (3.18) | (3.26) | – | (3.62) | (3.62) | 7.49 | (22.65) | 13269 | 1.61 | 1.61 | 1.47 | (0.74) | 12 |
| 2021 | 11.63 | (0.11) | 3.50 | 3.39 | – | (0.65) | (0.65) | 14.37 | 29.52 | 29231 | 1.64 | 1.64 | 1.58 | (0.81) | 25 |
| **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** | **Small-Cap Portfolio–Investment Class** |
| 2025 | $9.42 | $0.10 | $0.78 | $0.88 | $(0.18) | $(0.70) | $(0.88) | $9.42 | 8.93% | $34014 | 1.18% | 1.18% | 1.18% | 1.07% | 79% |
| 2024 | 9.59 | 0.12 | 0.23 | 0.35 | (0.12) | (0.40) | (0.52) | 9.42 | 3.40 | 131641 | 1.14 | 1.14 | 1.14 | 1.28 | 36 |
| 2023 | 8.36 | 0.11 | 2.04 | 2.15 | (0.08) | (0.84) | (0.92) | 9.59 | 25.93 | 146549 | 1.15 | 1.15 | 1.13 | 1.26 | 69 |
| 2022 | 9.41 | 0.08 | (0.94) | (0.86) | (0.04) | (0.15) | (0.19) | 8.36 | (9.20) | 139807 | 1.15 | 1.15 | 1.08 | 0.96 | 88 |
| 2021 | 7.41 | 0.03 | 2.10 | 2.13 | (0.13) | – | (0.13) | 9.41 | 28.82 | 172388 | 1.11 | 1.11 | 1.08 | 0.37 | 51 |
| **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** | **Small-Cap Portfolio–Service Class** |
| 2025 | $9.21 | $0.07 | $0.77 | $0.84 | $(0.17) | $(0.68) | $(0.85) | $9.20 | 8.73% | $140068 | 1.44% | 1.44% | 1.44% | 0.77% | 79% |
| 2024 | 9.37 | 0.10 | 0.23 | 0.33 | (0.10) | (0.39) | (0.49) | 9.21 | 3.26 | 141363 | 1.38 | 1.38 | 1.37 | 1.05 | 36 |
| 2023 | 8.18 | 0.08 | 1.99 | 2.07 | (0.06) | (0.82) | (0.88) | 9.37 | 25.53 | 165771 | 1.39 | 1.39 | 1.37 | 0.96 | 69 |
| 2022 | 9.20 | 0.06 | (0.92) | (0.86) | (0.01) | (0.15) | (0.16) | 8.18 | (9.41) | 159279 | 1.40 | 1.40 | 1.33 | 0.68 | 88 |
| 2021 | 7.25 | 0.01 | 2.05 | 2.06 | (0.11) | – | (0.11) | 9.20 | 28.45 | 209252 | 1.35 | 1.35 | 1.33 | 0.10 | 51 |

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See Notes to Financial Statements 9

Notes to Financial Statements

**Summary of Significant Accounting Policies:**

Royce Capital Fund – Micro-Cap Portfolio and Royce Capital Fund – Small-Cap Portfolio (each, a "Fund," and together, the "Funds") are the two series of Royce Capital Fund (the "Trust"), an open-end management investment company organized as a Delaware statutory trust. Shares of the Funds are offered to life insurance companies for allocation to certain separate accounts established for the purpose of funding qualified and non-qualified variable annuity contracts and variable life insurance contracts. Micro-Cap Portfolio and Small-Cap Portfolio commenced operations on December 27, 1996.

Classes of shares have equal rights as to earnings and assets, except that each class may bear different fees and expenses for distribution, shareholder servicing and shareholder reports, and receive different transfer agent balance credits and expense reimbursements. Investment income, realized and unrealized capital gains or losses on investments and foreign currency, and expenses other than those attributable to a specific class are allocated to each class of shares based on its relative net assets.

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

Each Fund is an investment company registered under the Investment Company Act of 1940 (the "1940 Act") and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 "Financial Services-Investment Companies."

Royce & Associates, LP, the Funds' investment adviser, is a majority-owned subsidiary of Franklin Resources, Inc. and primarily conducts business using the name Royce Investment Partners ("Royce").

VALUATION OF INVESTMENTS:

Portfolio securities held by the Funds are valued as of the close of trading on the New York Stock Exchange ("NYSE") (generally 4:00 p.m. Eastern time) on the valuation date. Investments in money market funds are valued at net asset value per share. Values for non-U.S. dollar denominated equity securities are converted to U.S. dollars daily based upon prevailing foreign currency exchange rates as quoted by a major bank.

Portfolio securities that are listed on an exchange or Nasdaq, or traded on OTC Market Group Inc.'s OTC Link ATS or other alternative trading system, are valued: (i) on the basis of their last reported sales prices or official closing prices, as applicable, on a valuation date; or (ii) at their highest reported bid prices in the event such equity securities did not trade on a valuation date. Such inputs are generally referred to as "Level 1" inputs because they represent reliable quoted prices in active markets for identical securities.

If the value of a portfolio security held by a Fund cannot be determined solely by reference to Level 1 inputs, such portfolio security will be "fair valued." The Trust's Board of Trustees has designated Royce as valuation designee to perform fair value determinations for such portfolio securities in accordance with Rule 2a-5 under the 1940 Act ("Rule 2a-5"). Pursuant to Rule 2a-5, fair values are determined in accordance with policies and procedures approved by the Trust's Board of Trustees and policies and procedures adopted by Royce in its capacity as valuation designee for the Trust. Fair valued securities are reported as either "Level 2" or "Level 3" securities.

As a general principle, the fair value of a security is the amount which a Fund might reasonably expect to receive for the security upon its current sale. However, in light of the judgment involved in fair valuations, no assurance can be given that a fair value assigned to a particular portfolio security will be the amount which the Fund might be able to receive upon its current sale. When a fair value pricing methodology is used, the fair value prices used by the Fund for such securities will likely differ from the quoted or published prices for the same securities.

Level 2 inputs are other significant observable inputs (e.g., dealer bid side quotes and quoted prices for securities with comparable characteristics). Examples of situations in which Level 2 inputs are used to fair value portfolio securities held by the Funds on a particular valuation date include:

● Over-the-counter equity securities other than those traded on OTC Market Group Inc.'s OTC Link ATS or other alternative trading system (collectively referred to herein as "Other OTC Equity Securities") are fair valued at their highest bid price when Royce receives at least two bid side quotes from dealers who make markets in such securities;

● Certain bonds and other fixed income securities may be fair valued by reference to other securities with comparable ratings, interest rates, and maturities in accordance with valuation methodologies maintained by certain independent pricing services; and

● The Funds use an independent pricing service to fair value certain non-U.S. equity securities when U.S. market volatility exceeds a certain threshold set by Royce as valuation designee. This pricing service uses proprietary correlations it has developed between the movement of prices of non-U.S. equity securities and indices of U.S.-traded securities, futures contracts, and other indications to estimate the fair value of such non-U.S. securities.

Notes to Financial Statements (continued)

VALUATION OF INVESTMENTS (continued):

Level 3 inputs are significant unobservable inputs. Examples of Level 3 inputs include (without limitation) the last trade price for a security before trading was suspended or terminated; discounts to last trade price for lack of marketability or otherwise; market price information regarding other securities; information received from the issuer and/or published documents, including SEC filings and financial statements; and other publicly available information. Pursuant to the above-referenced policies and procedures, Royce may use various techniques in making fair value determinations based upon Level 3 inputs, which techniques may include (without limitation): (i) workout valuation methods (e.g., earnings multiples, discounted cash flows, liquidation values, derivations of book value, firm or probable offers from qualified buyers for the issuer's ongoing business, etc.); (ii) discount or premium from market, or compilation of other observable market information, for other similar freely traded securities; (iii) conversion from the readily available market price of a security into which an affected security is convertible or exchangeable; and (iv) pricing models or other formulas.

A security that is valued by reference to Level 1 or Level 2 inputs may drop to Level 3 on a particular valuation date for several reasons, including if:

● an equity security that is listed on an exchange or Nasdaq, or traded on OTC Market Group Inc.'s OTC Link ATS or other alternative trading system, has not traded and there are no bids;

● Royce does not receive at least two bid side quotes for an Other OTC Equity Security;

● the independent pricing services are unable to supply fair value prices; or

● the Level 1 or Level 2 inputs become otherwise unreliable for any reason (e.g., a significant event occurs after the close of trading for a security but prior to the time a Fund prices its shares).

The table below shows the aggregate value of the various Level 1, Level 2, and Level 3 securities held by the Funds as of December 31, 2025. Any Level 2 or Level 3 securities held by a Fund are noted in its Schedule of Investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with owning those securities.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **LEVEL 1** | **LEVEL 2** | **LEVEL 3** | **TOTAL** |
| **Micro-Cap Portfolio** |  |  |  |  |
| Common Stocks | $91759041 | $572873 | $0 | $**92331914** |
| Warrants | 2488 | - | - | **2488** |
| Money Market Fund/Collateral Received for Securities Loaned | 578080 | - | - | **578080** |
| Repurchase Agreement | - | 3259589 | - | **3259589** |
| **Small-Cap Portfolio** |  |  |  |  |
| Common Stocks | 172354165 | - | - | **172354165** |
| Repurchase Agreement | - | 2039947 | - | **2039947** |

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REPURCHASE AGREEMENTS:

The Funds may enter into repurchase agreements with institutions that the Funds' investment adviser has determined are creditworthy. Each Fund restricts repurchase agreements to maturities of no more than seven days. Securities pledged as collateral for repurchase agreements, which are held until maturity of the repurchase agreements, are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). Repurchase agreements could involve certain risks in the event of default or insolvency of the counter-party, including possible delays or restrictions upon the ability of each Fund to dispose of its underlying securities. The remaining contractual maturities of repurchase agreements held by the Funds as of December 31, 2025, are next business day and continuous.

FOREIGN CURRENCY:

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, expiration of currency forward contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on each Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities at the end of the reporting period, as a result of changes in foreign currency exchange rates.

The Funds do not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Notes to Financial Statements (continued)

SECURITIES LENDING:

The Funds loan securities through a lending agent, State Street Bank and Trust Company, to qualified institutional investors for the purpose of earning additional income. The lending agent receives and holds collateral from such borrowers to secure their obligations to the Funds. Such loans must be secured at all times by collateral in an amount at least equal to the market value of the loaned securities. The market values of the loaned securities and the collateral fluctuate and are determined at the close of each business day by the lending agent. Borrowers are required to post additional collateral to the lending agent on the next succeeding business day in the event of a collateral shortfall. Counterparty risk is further reduced by loaning securities only to parties that participate in a Global Securities Lending Program organized and monitored by the lending agent and that are deemed by it to satisfy its requirements and by having the lending agent enter into securities lending agreements with such borrowers. The lending agent is not affiliated with Royce.

Collateral may be in the form of cash or U.S. Treasuries. Cash collateral is invested in certain money market pooled investment vehicles. The Funds record a liability in their respective Statements of Assets and Liabilities for the return of such cash collateral during periods in which securities are on loan. The Funds bear the risk of loss for any decrease in the market value of the loaned securities or the investments purchased with cash collateral received from the borrowers.

Pursuant to the agreement in place between the Funds and the lending agent, if a borrower fails to return loaned securities, and the cash collateral being maintained by the lending agent on behalf of such borrower is insufficient to cover the value of loaned securities and provided such collateral insufficiency is not the result of investment losses, the lending agent shall, at its option, either replace the loaned securities or pay the amount of the shortfall to the Funds. In the event of the bankruptcy of a borrower, the Funds could experience delay in recovering the loaned securities or only recover cash or a security of equivalent value.

Loans of securities generally do not have stated maturity dates, and the Funds may recall a security at any time. The Funds' securities lending income consists of the income earned on investing cash collateral, plus any premium payments received for lending certain securities, less any rebates paid to borrowers and lending agent fees associated with the loan. Pursuant to the agreement in place between the Funds and the lending agent, the Funds are responsible for any shortfall in the event the value of the investments purchased with cash collateral is insufficient to pay the rebate fee to the borrower.

The following table presents cash collateral and the market value of securities on loan collateralized by cash collateral held by the Funds as of December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| | **CASH COLLATERAL<sup>[1](#c001)</sup>** | **SECURITIES ON LOAN COLLATERALIZED BY CASH COLLATERAL** | **NET AMOUNT** |
| **Micro-Cap Portfolio** | $578080 | $(548507) | $29573 |

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<sup>1</sup> Absent an event of default, assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. The contractual maturity of cash collateral is overnight and continuous.

The following table presents non-cash collateral and the market value of securities on loan collateralized by non-cash collateral held by the Funds' custodian as of December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| | **NON-CASH COLLATERAL** | **SECURITIES ON LOAN COLLATERALIZED BY NON-CASH COLLATERAL** | **NET AMOUNT** |
| **Micro-Cap Portfolio** | $1665855&nbsp;&nbsp;&nbsp;&nbsp; | $(1631127)&nbsp;&nbsp;&nbsp;&nbsp; | $34728 |
| **Small-Cap Portfolio** | 138769 | (135995) | 2774 |

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DISTRIBUTIONS AND TAXES:

As qualified regulated investment companies under Subchapter M of the Internal Revenue Code, the Funds are not subject to income taxes to the extent that each Fund distributes substantially all of its taxable income for its fiscal year.

The Funds pay any dividends and capital gain distributions annually in December. Dividends from net investment income and distributions from capital gains are determined at a class level. Because federal income tax regulations differ from generally accepted accounting principles, income and capital gain distributions determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the character of distributions and composition of net assets for tax purposes differ from those reflected in the accompanying financial statements.

INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME:

Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Non-cash dividend income is recorded at the fair market value of the securities received. Interest income is recorded on an accrual basis. Realized gains and losses from investment transactions are determined on the basis of identified cost for book and tax purposes.

CASH INCLUDING FOREIGN CURRENCIES:

Cash, including foreign currencies, consists of deposits maintained at State Street Bank and Trust Company, the Funds' Custodian (in such capacity, the "Custodian"), and through the Custodian's global sub-custodian network. Accordingly, each Fund's risk for the possible insolvency loss of a cash deposit lies with the Custodian or the relevant sub-custodian bank. Fund cash deposits maintained at the Custodian or through a particular sub-custodian bank may be significant, and may, at times, exceed U.S. or other applicable insurance limits.

Notes to Financial Statements (continued)

EXPENSES:

The Funds incur direct and indirect expenses. Expenses directly attributable to a Fund are charged to the Fund, while expenses applicable to more than one of the "Royce Funds" are allocated equitably among the relevant Royce Funds. (The "Royce Funds" comprise the Funds and the other 13 U.S. registered investment companies for which Royce serves as investment manager.) All of the Royce Funds reimburse Royce in its capacity as administrator under administration agreements for costs and expenses paid or incurred in providing certain administrative services, including, without limitation, those relating to certain personnel, rent, technology, and supplies; amounts reimbursed to Royce by the Funds are included in administrative and office facilities and legal expenses.

COMPENSATING BALANCE CREDITS:

The Funds have an arrangement with their transfer agent, whereby a portion of the transfer agent's fee is paid indirectly by credits earned on a Fund's cash on deposit with the transfer agent.

LINE OF CREDIT:

The Funds, along with certain other Royce Funds, participate in a $65 million line of credit ("Credit Agreement") with State Street Bank and Trust Company to be used for short-term working capital purposes, to include the funding of shareholder redemptions and trade settlements. This revolving Credit Agreement expires on October 2, 2026. Pursuant to the Credit Agreement, each participating Fund is liable for a portion of the commitment fee for the credit facility (i.e., 0.25% of any unused portion of the line of credit) and for principal and interest payments related to borrowings made by that Fund. Borrowings under the Credit Agreement bear interest at a variable rate equal to the Applicable Rate plus the Applicable Margin. The term Applicable Rate means, for any day, a rate equal to the sum of (a) 0.10%, plus (b) the higher of (i) the Federal Funds Effective Rate for such day, or (ii) the Overnight Bank Funding Rate for such day; provided that if the Applicable Rate as so determined shall be less than 0.0%, such Applicable Rate shall be deemed to be 0.0% for all purposes of the Credit Agreement. The term Applicable Margin means 1.25%. The Funds did not utilize the line of credit during the year ended December 31, 2025.

INDEMNIFICATION PROVISIONS:

Reference is made to Delaware law and the Trust's Certificate of Trust, Trust Instrument, and By-laws, as amended and supplemented, each of which provides for the indemnification by the Trust of the Trust's officers and trustees under the circumstances and to the extent set forth therein. Reference is also made to the investment advisory agreement between the Trust, on behalf of each Fund, and Royce which provides for the indemnification by the relevant Fund of Royce under the circumstances and to the extent set forth therein. Additionally, in the normal course of business, the Trust, on behalf of both Funds, enters into contracts with service providers that contain general indemnification provisions in favor of such service providers and other covered persons. The amount of any potential Fund liability under these indemnification arrangements, if any, currently cannot be determined with any degree of specificity. The Trust is not currently in possession of any information that would cause it to believe that any Fund is reasonably likely to be subject to any material adverse impact from the operation of these indemnification arrangements. No assurance can be given, however, that any Fund will not incur any liability from the operation of these indemnification arrangements. Any future liability to a Fund that may arise from the operation of such arrangements will be disclosed to the extent required by relevant accounting guidance and applicable laws, rules, and regulations.

**Capital Share Transactions (in shares):**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **SHARES SOLD** | **SHARES SOLD** | **SHARES ISSUED FOR REINVESTMENT OF DISTRIBUTIONS** | **SHARES ISSUED FOR REINVESTMENT OF DISTRIBUTIONS** | **SHARES REDEEMED** | **SHARES REDEEMED** | **NET INCREASE (DECREASE) IN SHARES OUTSTANDING** | **NET INCREASE (DECREASE) IN SHARES OUTSTANDING** |
| | **Year Ended**<br>**12/31/25** | **Year Ended**<br>**12/31/24** | **Year Ended**<br>**12/31/25** | **Year Ended**<br>**12/31/24** | **Year Ended**<br>**12/31/25** | **Year Ended**<br>**12/31/24** | **Year Ended**<br>**12/31/25** | **Year Ended**<br>**12/31/24** |
| **Micro-Cap Portfolio** |  |  |  |  |  |  |  |  |
| Investment Class | 991463 | 685432 | 1151983 | 779707 | (6186653) | (2143748) | (4043207) | (678609) |
| Service Class | 770153 | 76423 | 313457 | 137546 | (1017631) | (437252) | 65979 | (223283) |
| **Small-Cap Portfolio** |  |  |  |  |  |  |  |  |
| Investment Class | 1237294 | 882513 | 285256 | 704914 | (11887790) | (2893899) | (10365240) | (1306472) |
| Service Class | 7204134 | 438364 | 1251299 | 771895 | (8584075) | (3536967) | (128642) | (2326708) |

---

**Investment Adviser and Distributor:**

INVESTMENT ADVISER:

Under the Trust's investment advisory agreement with Royce, Royce is entitled to receive investment advisory fees in respect of each Fund that are computed daily and payable monthly.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **ANNUAL CONTRACTUAL ADVISORY FEE AS A PERCENTAGE OF AVERAGE NET ASSETS** | **COMMITTED NET ANNUAL OPERATING EXPENSE RATIO CAP** | **COMMITTED NET ANNUAL OPERATING EXPENSE RATIO CAP** | **YEAR ENDED DECEMBER 31, 2025** | **YEAR ENDED DECEMBER 31, 2025** |
| | **ANNUAL CONTRACTUAL ADVISORY FEE AS A PERCENTAGE OF AVERAGE NET ASSETS** | **Investment Class** | **Service Class** | **Net advisory fees** | **Advisory fees waived** |
| Micro-Cap Portfolio | 1.00% | N/A | N/A | $1187614 | $-- |
| Small-Cap Portfolio | 1.00% | N/A | N/A | 2200920 | -- |

---

Notes to Financial Statements (continued)

DISTRIBUTOR:

Royce Fund Services, LLC ("RFS"), the distributor of the Trust's shares, is a wholly owned subsidiary of Royce. RFS is entitled to receive distribution fees from the sale of each Fund's Service Class shares that are computed daily and payable monthly, at an annual rate of 0.25% of the average net assets of each Class. For the year ended December 31, 2025, Micro-Cap Portfolio-Service Class recorded distribution fees of $42,450 and Small-Cap Portfolio-Service Class recorded distribution fees of $289,836.

**Purchases and Sales of Investment Securities:**

For the year ended December 31, 2025, the costs of purchases and the proceeds from sales of investment securities, other than short- term securities and collateral received for securities loaned, were as follows:

---

| | | |
|:---|:---|:---|
| | **PURCHASES** | **SALES** |
| Micro-Cap Portfolio | $48370524 | $105125487 |
| Small-Cap Portfolio | 170192051 | 283467868 |

---

**Class Specific Expenses:**

Class specific expenses were as follows for the year ended December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **DISTRIBUTION FEES** | **SHAREHOLDER REPORTS** | **SHAREHOLDER SERVICING** | **COMPENSATING BALANCE CREDITS** | **TOTAL** | **CLASS LEVEL EXPENSES REIMBURSED BY INVESTMENT ADVISER** |
| Micro-Cap Portfolio -- Investment Class | $- | $17288 | $10729 | $(158) | $27859 | $- |
| Micro-Cap Portfolio -- Service Class | 42450 | 3310 | 7807 | (50) | 53517 | - |
|  | **42450** | **20598** | **18536** | **(208)** |  | **-** |
| Small-Cap Portfolio -- Investment Class | - | 17419 | 9517 | (131) | 26805 | - |
| Small-Cap Portfolio -- Service Class | 289836 | 2546 | 8313 | (55) | 300640 | - |
|  | **289836** | **19965** | **17830** | **(186)** |  | **-** |

---

**Tax Information:**

As of December 31, 2025, net unrealized appreciation (depreciation) based on identified cost for tax purposes was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **TAX BASIS COST** | **NET UNREALIZED APPRECIATION (DEPRECIATION)** | **GROSS UNREALIZED** | **GROSS UNREALIZED** |
| | **TAX BASIS COST** | **NET UNREALIZED APPRECIATION (DEPRECIATION)** | **Appreciation** | **(Depreciation)** |
| Micro-Cap Portfolio | $68940633 | $27231438 | $34666056 | $7434618 |
| Small-Cap Portfolio | 129695315 | 44698797 | 51589682 | 6890885 |

---

The primary cause of the difference between book and tax basis cost is the timing of the recognition of losses on securities sold.

Distributions during the years ended December 31, 2025 and 2024, were characterized as follows for tax purposes:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **ORDINARY INCOME** | **ORDINARY INCOME** | **LONG-TERM CAPITAL GAINS** | **LONG-TERM CAPITAL GAINS** |
| | **2025** | **2024** | **2025** | **2024** |
| Micro-Cap Portfolio | $– | $– | $14289293 | $9226653 |
| Small-Cap Portfolio | 2982926 | 3292336 | 11833610 | 11194845 |

---

The tax basis components of distributable earnings as of December 31, 2025, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **UNDISTRIBUTED ORDINARY INCOME** | **UNDISTRIBUTED LONG-TERM CAPITAL GAINS OR (CAPITAL LOSS CARRYFORWARD)** | **NET UNREALIZED APPRECIATION (DEPRECIATION)<sup>[1](#d001)</sup>** | **TOTAL DISTRIBUTABLE EARNINGS** | **CAPITAL LOSS CARRYFORWARD UTILIZED** |
| Micro-Cap Portfolio | $23550 | $25919642 | $27231425 | $53174617 | $– |
| Small-Cap Portfolio | 3461347 | 34494947 | 44698789 | 82655083 | – |

---

<sup>1</sup> Includes timing differences on foreign currency, recognition of losses on securities sold and investments in publicly traded partnerships.

Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years (2022 – 2025) and has concluded that as of December 31, 2025, no provision for income tax is required in the Funds' financial statements.

Notes to Financial Statements (continued)

**Segment Reporting:** 

Each Fund operates as a single operating segment, which is a segregated investment portfolio. Royce serves as investment manager for each Fund. The Management Committee of Royce functions as the Chief Operating Decision Maker ("CODM") for each Fund for purposes of Segment Reporting (Topic 280), evaluating its results and performance based upon its specific investment strategy and other relevant facts and circumstances. The CODM uses these measures to assess Fund performance and allocate resources effectively, subject to compliance with applicable legal and regulatory requirements and oversight from its Board of Trustees. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements.

For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Statements of Assets and Liabilities and the Statements of Operations, along with the related notes to the financial statements. The Schedules of Investments provides details of the Funds' investments that generate returns such as interest, dividends, and realized and unrealized gains or losses. Performance metrics, including portfolio turnover and expense ratios, are disclosed in the Financial Highlights.

**Subsequent Events:**

Subsequent events have been evaluated through the date the financial statements were issued and it has been determined that no events have occurred that require disclosure.

Report of Independent Registered Public Accounting Firm

**To the Board of Trustees of Royce Capital Fund and Shareholders of Royce Capital Fund – Micro-Cap Portfolio and Royce Capital Fund – Small-Cap Portfolio:**

**Opinions on the Financial Statements**

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Royce Capital Fund – Micro-Cap Portfolio and Royce Capital Fund – Small-Cap Portfolio (constituting Royce Capital Fund, hereafter collectively referred to as the "Funds") as of December 31, 2025, the related statements of operations for the year ended December 31, 2025, the statements of changes in net assets for each of the two years in the period ended December 31, 2025, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2025 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2025, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2025 and each of the financial highlights for each of the five years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinions**

These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

New York, New York

February 13, 2026

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

Federal Tax Information (unaudited)

In January 2026, taxable shareholders that opted out of e-delivery were mailed a Form 1099-DIV reporting the federal tax status of all distributions paid during the calendar year 2025. Shareholders who elected e-delivery have received electronic notification of the form being available for download via their Online Account Access.

**2025 Supplemental Tax Information:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **%<br> QDI** | **% U.S. GOVT<br> INCOME** | **% INCOME QUALIFYING<br> FOR DRD** | **LONG-TERM CAPITAL GAIN DISTRIBUTION<br> MAXIMUM ALLOWABLE (OOO's)** |
| Micro-Cap Portfolio | 0.00% | N/A | 0.00% | $14289 |
| Small-Cap Portfolio | 100.00% | N/A | 100.00% | 11834 |

---

**Definitions:**

**% QDI:** Qualified Dividend Income; % of net investment income and/or short-term capital gains distributions that qualify for treatment at long-term capital gain rates.

**% U.S. Govt Income:** % of investment income paid from U.S. Government obligations.

**% Income Qualifying for DRD:** % of investment income eligible for the corporate dividend received deduction.

Trustees and Officers

All Trustees and Officers may be reached c/o The Royce Funds, One Madison Avenue, New York, NY 10010

**Christopher D. Clark, Trustee<sup>[1](#e001)</sup>, President**

Age: 60 \| Number of Funds Overseen: 15 \| Tenure: Since 2014 **Principal Occupation(s) During Past Five Years:** Chief Executive Officer (since July 2016), President (since July 2014), Co-Chief Investment Officer (since January 2014), Managing Director of Royce, a Member of the Board of Managers of Royce, having been employed by Royce since May 2007.

**Patricia W. Chadwick, Trustee**

Age: 77 \| Number of Funds Overseen: 15 \| Tenure: Since 2009 **Non-Royce Directorships:** Director of Voya Mutual Funds **Principal Occupation(s) During Past 5 Years:** Consultant and President, Ravengate Partners LLC (since 2000). Formerly Director, Wisconsin Energy Corp. (until 2022).

**Christopher C. Grisanti, Trustee**

Age: 64 \| Number of Funds Overseen: 15 \| Tenure: Since 2017

**Non-Royce Directorships:** None

**Principal Occupation(s) During Past Five Years:** Chief Equity Strategist and Senior Portfolio Manager, MAI Capital Management LLC (investment advisory firm) (since May 2020). Formerly Co-Founder and Chief Executive Officer, Grisanti Capital Management LLC (investment advisory firm) (from 1999 to 2020); Director of Research and Portfolio Manager, Spears Benzak, Salomon & Farrell (from 1994 to 1999); and Senior Associate, Simpson, Thacher & Bartlett (law firm) (from 1988 to 1994).

**Cecile B. Harper, Trustee**

Age: 62 \| Number of Funds Overseen: 15 \| Tenure: Since 2020 **Non-Royce Directorships:** Director of Alarm.com Holdings, Inc. (since May 2024)

**Principal Occupation(s) During Past Five Years:** Chief Financial Officer and Chief Operating Officer, College Foundation at the University of Virginia (since October 2019). Formerly Board Member, Pyramid Peak Foundation (January 2012 to 2022); Board Member, Regional One Health Foundation (from June 2013 to September 2019); and Principal, Southeastern Asset Management (from December 1993 to September 2019).

**G. Peter O'Brien, Trustee<sup>[2](#e002)</sup>**

Age: 80 \| Number of Funds Overseen: 63 \| Tenure: Since 2001 **Non-Royce Directorships:** Director/Trustee of registered investment companies constituting the 48 Legg Mason Funds.

**Principal Occupation(s) During Past Five Years:** Trustee Emeritus, Colgate University (since 2005); and Emeritus Board Member, Hill House, Inc. (since 2019). Formerly Director, TICC Capital Corp. (from 2003-2017); Trustee, Colgate University (from 1996 to 2005); President, Hill House, Inc. (from 2001 to 2005); Board Member, Hill House, Inc. (from 1999 to 2019); Director, Bridges School (from 2006 to 2018); and Managing Director/ Equity Capital Markets Group, Merrill Lynch & Co. (from 1971 to 1999).

**Julia W. Poston, Trustee**

Age: 65 \| Number of Funds Overseen: 15 \| Tenure: Since 2023 **Non-Royce Directorships:** AuguStar Variable Insurance Products Fund, Inc. and The James Advantage Funds

**Principal Occupation(s) During Past Five Years:** Director, Member of Nominating/Governance Committee, and Chair of Audit Committee, Merus Corporation (formerly Al. Neyer Corporation) (since 2020); Director, Member of Governance Committee, and Chair of Audit Committee, Master Fluid Solutions (since 2021); Trustee and Chair of Finance/Audit Committee, Cincinnati Museum Center (non-profit) (since 2015); and Director and Founder, Cincinnati Women's Executive Forum (non-profit) (since 2010).

Formerly Senior Client Partner (2002-2020) and Assurance Practice Group Leader for Ohio Valley Region (2014-2019), Ernst & Young, LLP (international accounting and services firm); and Audit Partner, Arthur Andersen LLP (international accounting and services firm) (1982-2002).

**Michael K. Shields, Trustee**

Age: 67 \| Number of Funds Overseen: 15 \| Tenure: Since 2015

**Non-Royce Directorships:** None

**Principal Occupation(s) During Past Five Years:** Chief Investment Officer, National Christian Foundation (since April 2024); Chairman, UNC Charlotte Investment Fund Board (since February 2016); and Chairman, Halftime Carolinas Board (since February 2011). Formerly President and Chief Executive Officer, Piedmont Trust Company (privately owned North Carolina trust company) (from February 2012 to December 2023); Owner, Shields Advisors (investment consulting firm) (from April 2010 to June 2012); President and Chief Executive Officer, Eastover Capital Management (2005-2007); President and Chief Executive Officer, Campbell, Cowperthwait & Co. (investment subsidiary of U.S. Trust Corporation) (1997-2002); and equity portfolio manager and co- manager of Quality Growth Team, Scudder, Stevens & Clark (1992-1997).

**Francis D. Gannon, Vice President**

Age: 58 \| Tenure: Since 2014

**Principal Occupation(s) During Past Five Years:** Co-Chief Investment Officer (since January 2014) and Managing Director of Royce, having been employed by Royce since September 2006.

**Daniel A. O'Byrne, Vice President**

Age: 63 \| Tenure: Since 1994

**Principal Occupation(s) During Past Five Years:** Principal and Vice President of Royce, having been employed by Royce since October 1986.

**Peter K. Hoglund, Treasurer**

Age: 59 \| Tenure: Since 2015

**Principal Occupation(s) During Past Five Years:** Chief Financial Officer, Chief Administrative Officer, and Managing Director of Royce, having been employed by Royce since December 2014. Prior to joining Royce, Mr. Hoglund spent more than 20 years with Munder Capital Management in Birmingham, MI, serving as Managing Director and Chief Financial Officer and overseeing all financial aspects of the firm. He began his career at Munder as a portfolio manager.

**John E. Denneen, Secretary and Chief Legal Officer**

Age: 58 \| Tenure: 1996-2001 and Since 2002

**Principal Occupation(s) During Past Five Years:** General Counsel, Managing Director, and, since June 2015, a Member of the Board of Managers of Royce. Chief Legal and Compliance Officer and Secretary of Royce.

**John P. Schwartz, Chief Compliance Officer**

Age: 54 \| Tenure: Since 2022

**Principal Occupation(s) During Past Five Years:** Chief Compliance Officer of The Royce Funds (since May 2022) and Associate General Counsel and Compliance Officer of Royce (since March 2013).

<sup>1</sup> Interested Trustee.

<sup>2</sup> Retired as Trustee effective as of the close of business on December 31, 2025.

Trustees will hold office until their successors have been duly elected and qualified or until their earlier resignation or removal. The Statement of Additional Information, which contains additional information about the Trust's trustees and officers, is available and can be obtained without charge at www.royceinvest.com or by calling (800) 221-4268.

**<u>Changes In and Disagreements with Accountants for the Period Covered by this Report</u>**

Not applicable.

**<u>Results of Meeting(s) of Shareholders for the Period Covered by this Report</u>**

Not applicable.

**<u>Remuneration Paid to Directors, Officers and Others for the Period Covered by this Report</u>**

Refer to the financial statements included herein.

**Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.** This information is disclosed as part of the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

**Item 9. Proxy Disclosures for Open-End Management Investment Companies.** This information is disclosed as part of the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

**Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.** This information is disclosed as part of the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

**Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.** Not Applicable.

**Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.** Not Applicable.

**Item 13. Portfolio Managers of Closed-End Management Investment Companies.** Not Applicable.

**Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.** Not Applicable.

**Item 15. Submission of Matters to a Vote of Security Holders.** Not Applicable.

**Item 16. Controls and Procedures.** 

(a) Disclosure
 Controls and Procedures. The Principal Executive and Financial Officers concluded that
 the Registrant's Disclosure Controls and Procedures are effective based on their evaluation
 of the Disclosure Controls and Procedures as of a date within 90 days of the filing date
 of this report.

(b) Internal
 Control over Financial Reporting. There were no changes in Registrant's internal control
 over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act
 of 1940) that occurred during the period covered by this report that has materially affected,
 or is reasonably likely to materially affect, the Registrant's internal control
 over financial reporting.

**Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.** Not Applicable.

**Item 18. Recovery of Erroneously Awarded Compensation.** Not Applicable.

**Item 19. Exhibits.** Attached hereto.

[(a)(1)](g114495_ex19a1.htm) [The Royce Funds Code of Ethics.](g114495_ex19a1.htm)

(a)(2) Not Applicable.

[(a)(3)](g114495_ex19a-3.htm) [Separate certifications by the Registrant's Principal Executive Officer and Principal Financial Officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.](g114495_ex19a-3.htm)

(a)(4) Not Applicable.

(a)(5) Not Applicable.

[(b)](g114495_ex19b.htm) [Separate certifications by the Registrant's Principal Executive Officer and Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940.](g114495_ex19b.htm)

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/ Christopher D. Clark |

---

**Christopher D. Clark**

**Principal Executive Officer**

Date: February 27, 2026

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.

---

| | | | |
|:---|:---|:---|:---|
| **ROYCE CAPITAL FUND** | **ROYCE CAPITAL FUND** | **ROYCE CAPITAL FUND** | **ROYCE CAPITAL FUND** |
| BY: | /s/ Christopher D. Clark | BY: | /s/ Peter K. Hoglund |
| **Christopher D. Clark** | **Christopher D. Clark** | **Peter K. Hoglund** | **Peter K. Hoglund** |
| **Principal Executive Officer** | **Principal Executive Officer** | **Principal Financial Officer** | **Principal Financial Officer** |
| Date: February 27, 2026 | Date: February 27, 2026 | Date: February 27, 2026 | Date: February 27, 2026 |

---

## Ex-99.Code

CODE OF ETHICS

FOR

THE ROYCE FUNDS

AND

THE ROYCE COMPANIES

**Adopted -- As of December 30, 1994<br> As Amended through June 18, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Fund" means each of The Royce Fund, Royce Capital Fund, Royce Small-Cap Trust, Inc., Royce Micro-Cap Trust, Inc., Royce Global Trust, Inc. and any other investment company or series of an investment company registered as such under the Investment Company Act of 1940 that has the same investment adviser as the Fund.<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Royce</u>" means Royce Investment Partners and Royce Fund Services, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Chief Compliance Officer</u>" means Royce Investment Partners' Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Covered Person</u>" means any interested trustee, director, officer, employee or Advisory Person of the Fund or any director, manager, officer, employee or Advisory Person of Royce, <u>other than</u> any employee of the Fund or Royce or any Non-Management Royce Director: (i) who does not, in connection with his or her regular functions or duties, make, participate in or obtain information regarding the purchase or sale of securities by the Fund or any other Royce client account, (ii) whose functions do not relate to the making of any recommendations with respect to the purchases or sales of securities by the Fund or any other Royce client account, <u>and</u> (iii) whose name appears on a written schedule (which may be changed at any time or from time to time) signed and maintained by Royce's Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Advisory Person</u>" means any natural person in a control relationship to the Fund or Royce who obtains information concerning recommendations made to the Fund or any other Royce client with regard to the purchase or sale of a security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A security is "<u>being considered for purchase or sale</u>" when a recommendation to purchase or sell such security has been made and communicated and, with respect to the person making the recommendation, when such person seriously considers making such a recommendation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Automatic Investment Plan</u>" means a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation.

<sup>1</sup> Notwithstanding the above, the definition of "Fund" does not include any other investment company or series of an investment company registered as such under the Investment Company Act of 1940 that is sub-advised by Royce and for which Royce does not serve as distributor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Beneficial ownership</u>" shall be interpreted in the same manner as it would be in determining whether a person is subject to the provisions of Section 16 of the Securities Exchange Act of 1934 and the rules and regulations thereunder, except that the determination of direct or indirect beneficial ownership shall apply to all securities which a Covered Person has or acquires. It includes ownership by a member of a Covered Person's immediate family (such as spouse, minor children and adults living in a Covered Person's home) and trusts of which a Covered Person or such an immediate family member is a trustee or in which any such person has a beneficial interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Control</u>" shall have the same meaning as that set forth in Section 2(a)(9) of the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Disinterested Director</u>" means a trustee or director of the Fund who is not an 'interested person' of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Interested Director</u>" means a trustee or director of the Fund who is an 'interested person' of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Non-Covered Employee</u>" means an employee of either the Fund or Royce who is excluded from the definition of Covered Person pursuant to clauses (i), (ii), <u>and</u> (iii) thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>"Non-Management Royce Director</u>" means a natural person who is a member of the Board of Managers that oversees Royce, or is an Interested Director because such person is an employee, officer, and/or director of Franklin Resources, Inc. ("FRI") or an entity controlled by FRI, but who is not, in either case, an officer or employee of Royce.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Purchase or sale of a security</u>" includes, <u>inter alia</u>, the writing of an option to purchase or sell a security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Royce-Managed Collective Trusts</u>" means collective trusts for which Royce acts as investment adviser that qualify for the exclusion from the definition of investment company set forth in Section 3(c)(11) of the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Security</u>" shall have the meaning set forth in Section 2(a)(36) of the Investment Company Act of 1940, except that it shall not include (i) shares of registered open-end investment companies, (ii) interests in Royce-Managed Collective Trusts, (iii) securities which are direct obligations of the United States, and (iv) bankers' acceptances, bank certificates of deposit, commercial paper, money market funds and other money market instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Initial Public Offering</u>" means an offering of securities registered under the Securities Act of 1933, the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Statement of General Principles</u>. Each Covered Person and Non-Covered Employee shall, in connection with his or her personal investment activities, (i) at all times place the interests of Royce clients and Fund shareholders first, (ii) conduct all such transactions consistent with this Code and in such a manner as to avoid any actual or potential conflict of interest or any abuse of his or her position of trust and responsibility, (iii) keep all portfolio information concerning Royce client accounts confidential and not take any inappropriate advantage of his or her positions, (iv) offer appropriate investment opportunities to Royce's clients before they may take personal advantage of such opportunities, and (v) not cause or attempt to cause Royce's client accounts to purchase, sell or hold an investment in a manner calculated to create personal benefit to the Covered Person or the Non-Covered Employee. All Covered Persons and Non-Covered Employees shall comply with all applicable provisions of this Code and all applicable Federal securities laws regarding this Code. All Covered Persons and Non-Covered Employees shall report any violations of this Code of which they are aware to the Chief Compliance Officer (or his designee) immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Prohibited Purchases and Sales</u>. (a) No Covered Person shall purchase or sell, directly or indirectly, any security in which he or she has, or by reason of such transaction acquires, any direct or indirect beneficial ownership unless such purchase or sale is an exempted transaction pursuant to Section 4 of this Code. The preceding sentence of this Section 3(a) shall not prohibit the purchase or sale of any security by Royce for the account of any pooled investment vehicle managed by Royce, including a limited partnership, limited liability company, registered investment company, or other entity in which Royce or a Covered Person has a beneficial interest as a general partner, managing member, limited partner, shareholder and/or otherwise, <u>provided that</u>, in the case of any such pooled investment vehicle other than a registered investment company or collective trust exempt from registration under the Investment Company Act of 1940 pursuant to Section 3(c)(11) of such Act, the aggregate beneficial interests of Royce and/or all Covered Persons in any such pooled investment vehicle shall not exceed (i) 24.90% of such vehicle's capital accounts or other equity interests or (ii) 20% of such vehicle's realized and unrealized net capital gains from securities transactions. Reporting obligations of Covered Persons under Sections 7 and 8 of this Code relating to purchases and sales of securities by all such pooled investment vehicles shall be deemed satisfied by Royce's access to all trading records for such Royce client accounts. However, purchases of Initial Public Offerings or Limited Offerings (private placements of unregistered securities) by any limited partnership, limited liability company, or other non-registered pooled investment vehicle in which a Covered Person has a beneficial interest must be pre-approved in writing by the Chief Compliance Officer and either an executive officer or a Co-Chief Investment Officer of Royce.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Disinterested Director, Non-Management Royce Director, or Non- Covered Employee shall purchase or sell, directly or indirectly, any security in which he or she has, or by reason of such transaction acquires, any direct or indirect beneficial ownership if such person knew or, in the ordinary course of fulfilling his or her official duties as a director or trustee of the Fund, as a member of the Board of Managers for Royce, or as an employee of Royce or the Fund, should have known that such security was then being purchased or sold by the Fund or, in the case of a Non-Management Royce Director or Non-Covered Employee, another Royce client account, or was then being considered by the Fund or Royce for purchase or sale by the Fund or, in the case of a Non-Management Royce Director or Non-Covered Employee, another Royce client account, unless such purchase or sale is an exempted transaction pursuant to Section 4 of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Exempted Transactions</u>. The prohibitions of Sections 3(a) and 3(b) of this Code shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchases or sales effected in any account over which the Covered Person, the Disinterested Director, or the Non-Management Royce Director has no direct or indirect influence or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Purchases or sales which are non-volitional on the part of either the Covered Person, the Disinterested Director, or the Non-Management Royce Director, or the Fund or other Royce client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Purchases through an Automatic Investment Plan, including those which are part of an automatic distribution reinvestment plan, automatic periodic investment plan for an Affiliated Mutual Fund or an employer-sponsored, automatic payroll deduction, cash purchase plan or automatic payroll deduction purchases through the Royce 401(k) Plan. However, securities purchased pursuant to an Automatic Investment Plan shall nevertheless be included in the Annual Holdings Report, as set forth in Section 8 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Purchases effected upon the exercise of rights issued by an issuer <u>pro rata</u> to all holders of a class of its securities, to the extent such rights were acquired from such issuer, and sales of such rights so acquired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Purchases or redemptions or sales of debt securities which are either "Government securities" within the meaning of Section 2(a)(16) of the Investment Company Act of 1940 or "municipal securities" within the meaning of Section 3(a)(29) of the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Purchases or sales of: (i) securities issued by registered open-end investment companies or (ii) passively managed baskets of commodities, or (iii) notes issued by banks, brokers, or other financial institutions, any of which instruments listed in such clauses (i), (ii), and (iii) trade on a national securities exchange or on Nasdaq, or options to purchase or sell such instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Purchases or sales of shares of unit investment trusts that invest solely in open-end mutual funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Purchases and sales of open-end registered investment companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Purchases or sales by a Covered Person which receive the prior approval of the Chief Compliance Officer (or his designee) <u>and</u>, either an executive officer, or a Co-Chief Investment Officer of Royce (to be promptly confirmed in writing) because: (i) they are not eligible for purchase or sale by the Fund or any other Royce client account, (ii) they are only remotely potentially harmful to the Fund and Royce's other accounts because they would be very unlikely to affect a highly institutional market, (iii) they clearly are not related economically to the securities to be purchased, sold or held by the Fund or any other Royce client account, (iv) they are not then being purchased or sold, and neither the executive officer nor the Co-Chief Investment Officer pre-approving the transaction nor the Covered Person have any current knowledge that the securities are then being considered for purchase or sale, by the Fund or any other Royce client account, or (v) in the case of an Initial Public Offering, they are available for purchase by the Covered Person solely by virtue of his or her non-business relationship with a family member or other person and are not in any way related to the Covered Person's position with the Fund or Royce.

Any prior approval granted pursuant to this Section 4(i) shall be subject to the following restrictions and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Each written confirmation by the Chief Compliance Officer (or his designee) and either an executive officer or a Co-Chief Investment Officer of Royce of their prior approval of a purchase or sale by a Covered Person shall show the basis on which the prior approval was granted and the period for which it was granted (which period shall not exceed five trading days from the date of the grant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Generally, no Covered Person shall be permitted to acquire any securities in an Initial Public Offering, except to the extent set forth in Section 3(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Prior approval is required for a Covered Person to acquire any securities, including limited partnership and limited liability company interests, in a private placement. Such prior approval should take into account, among other factors, whether the investment opportunity should be reserved for the Fund and/or other Royce client account(s), and whether the opportunity is being offered to the Covered Person by virtue of his or her position with the Fund or Royce. Any Covered Person who may be authorized to acquire securities in a private placement shall disclose that investment when he or she plays a part in the Fund's or Royce's subsequent consideration of an investment in the issuer, and, in such circumstances, the Fund's and/or Royce's decision to purchase securities of the issuer shall be subject to an independent review by investment personnel with no personal interest in the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) No Covered Person shall be permitted to purchase or sell a security within at least seven calendar days before and after the Fund or any other Royce client account trades in that security, and any profits realized on trades within such proscribed periods shall be disgorged by the Covered Person. This prohibition shall not apply for securities with market capitalizations in excess of $20 billion at the time of such Covered Person's purchase or sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) No Covered Person, except in unusual or exceptional circumstances, may profit in the purchase and sale, or sale and purchase, of the same (or equivalent) securities within 60 calendar days, and any profits realized on such short-term trades shall, except in such circumstances, be disgorged by the Covered Person. This provision shall not generally apply to purchases and sales of shares of an open-end Affiliated Mutual Fund that do not appear to involve short-term market timing or any other trading that is inconsistent with the General Principles set forth in Section 2 of this Code. In addition, this provision shall not apply to sales of securities purchased through an Automatic Investment Plan, including those which are part of an automatic distribution reinvestment plan, automatic periodic investment plan or automatic payroll deduction, cash purchase plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Gifts</u>. No Covered Person or Non-Covered Employee shall receive any gifts or other things of more than <u>de minimis</u> value (taking into account both the value of any single gift and the aggregate value of all gifts from a single source during any one calendar year), as determined periodically by the Chief Compliance Officer and communicated in writing to all Covered Persons and Non-Covered Employees, from any individual or entity that does business with or on behalf of the Fund or any other Royce client account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Service as a Director</u>. No Covered Person may serve on the board of directors of any publicly-traded company, absent prior authorization from the Chief Compliance Officer based upon a determination that the board service would be consistent with the interests of the Fund and Royce's other client accounts. In the relatively small number of instances in which board service may be authorized, the Covered Person serving as a director normally should be isolated from Royce personnel making investment decisions through information barrier or other similar procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Reporting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Covered Person shall report to the Chief Compliance Officer (or his designee) the information described in Section 7(d) of this Code with respect to transactions in any security in which such Covered Person has, or by reason of such transaction acquires, any direct or indirect beneficial ownership in the security; provided, however, that a Covered Person shall not be required to make a report with respect to transactions effected for any account over which such Covered Person does not have any direct or indirect influence or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Disinterested Director need only report to the Chief Compliance Officer (or his designee) a transaction in a security if such director, at the time of that transaction, knew or, in the ordinary course of fulfilling his or her official duties as a director, should have known that, during the 15 calendar days before or after the date of the transaction by the director, such security was purchased or sold by the Fund or was being considered by the Fund or Royce for purchase or sale by the Fund. A Non-Management Royce Director need only report to the Chief Compliance Officer (or his designee) a transaction in a security if such director, at the time of that transaction, knew or, in the ordinary course of fulfilling his or her official duties as a director, should have known that, during the 15 calendar days before or after the date of the transaction by the director, such security was purchased or sold by the Fund or other Royce client account or was being considered by the Fund or Royce for purchase or sale by the Fund or other Royce client account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Non-Covered Employee shall report to the Chief Compliance Officer (or his designee) any instance in which he or she participates in, or obtains information regarding, the purchase or sale of securities by the Fund or any other Royce client account, whether or not in connection with his or her regular duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every report shall be in writing, shall be signed by the person making it, shall be made not later than 30 days after the end of the calendar quarter in which the transaction to which the report relates was effected and shall contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The date of the transaction, the title, the exchange ticker symbol or CUSIP number, the number of shares, and the principal amount of each security involved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The nature of the transaction -- i.e., purchase, sale or any other type of acquisition or disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The price at which the transaction was effected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The name of the broker, dealer or bank with or through which the transaction was effected; (A) with respect to any account established by the Covered Person during the quarter for the direct or indirect benefit of the Covered Person, the name of the broker, dealer, or bank with which the account was established and the date the account was established (brokerage accounts established and maintained for the sole purpose of investing in non-affiliated, open-end mutual funds are not subject to this reporting requirement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The date on which the Covered Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any such report shall include transactions exempted pursuant to Section 4 of this Code and may contain a statement that the report shall not be construed as an admission by the person making such report that he or she has any direct or indirect beneficial ownership in the security to which the report relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All Covered Persons shall (i) direct their brokers to supply to the Chief Compliance Officer (or his designee), on a timely basis, duplicate copies of confirmations of all personal securities transactions and copies of periodic statements for all securities accounts (brokerage accounts established and maintained for the sole purpose of investing in non- affiliated, open-end mutual funds are not subject to this reporting requirement) and (ii) disclose to the Fund and Royce all personal securities holdings upon commencement of employment and thereafter on an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All personal trading activities shall be reviewed by the Chief Compliance Officer (or his designee) against the fiduciary principles set forth in this Code. Such review shall include monitoring for any patterns of trading activity that might be indicative of front running, market timing, or other abusive trading practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All Covered Persons and Non-Covered Employees shall receive a copy of this Code and any amendments hereto through the Royce Intranet site under "Compliance". All Covered Persons and Non-Covered Employees shall provide to the Chief Compliance Officer (or his designee) a written acknowledgement of their receipt of this Code and related amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Initial and Annual Holdings Report</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Initial Holdings Report shall be filed by each Covered Person no later than 10 days after such person becomes a Covered Person. Thereafter, every Covered Person shall submit to the Chief Compliance Officer (or his designee) an Annual Holdings Report, as of December 31<sup>st</sup> of each year. Each Initial Holdings Report and each Annual Holdings Report shall contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
title and type of security and, as applicable, the exchange ticker symbol or CUSIP number and the number of shares or principal
amount of such security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the
name of each broker, dealer, or bank with which the Covered Person maintains a securities account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the
date on which the Covered Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The information in an Initial Holdings Report and an Annual Holdings Report shall be current as of a date no later than 45 days prior to the date on which the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Sanctions</u>. Upon discovering a violation of this Code, Royce and/or the Board of Trustees/Directors of the Fund may impose such sanctions or disciplinary measures as it deems necessary or appropriate, including, <u>inter alia</u>, a letter of censure or reprimand, suspension, demotion, monetary penalties, or termination of the employment of the violator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>FRI Personnel.</u> Certain non-investment personnel of FRI regularly have access to information about the portfolio holdings of the Fund and/or other Royce client accounts more frequently than is publicly available. Such FRI personnel are subject to FRI's Code of Ethics and Business Conduct that: (i) generally requires that they trade through one of a limited number of broker/dealer firms approved by FRI; (ii) requires that they observe a 60-day minimum holding period for investments in affiliated mutual funds; (iii) requires them to obtain prior approval of any investment in an Initial Public Offering or private placement; (iv) subjects them to certain periodic reporting requirements, requires annual acknowledgement of their ethical responsibilities under FRI's Code of Ethics and Business Conduct and requires them to certify as to their compliance with such Code. Under FRI's Code of Ethics and Business Conduct, personal securities transactions are subject to an enhanced back-end surveillance program designed to monitor such transactions. Each Non-Management Royce Director may be subject to FRI's Code of Ethics and Business Conduct and some or all of the obligations described in this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Recordkeeping</u>. Records relating to the implementation of this Code shall be maintained by the Chief Compliance Officer, or his designee, as set forth in Royce's Books and Records Policies and Procedures. Records relating to the implementation of FRI's Code of Ethics and Business Conduct in respect of Non-Management Royce Directors and FRI non-investment personnel with regular access to information about the portfolio holdings of the Fund and/or other Royce client account shall be maintained by the chief compliance officer for the relevant FRI entity, or such person's designee, as set forth in the applicable books and records policies and procedures for such FRI entity.

## Ex-99.Cert

**Item 19(a)(3):**

<br> **<u>CERTIFICATIONS</u>** <br>

I, Christopher D. Clark, certify that:

1. I
 have reviewed this report on Form N-CSR of Royce Capital Fund;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact
 or omit to state a material fact necessary to make the statements made, in light of the
 circumstances under which such statements were made, not misleading with respect to the
 period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in
 this report, fairly present in all material respects the financial condition, results
 of operations, changes in net assets, and cash flows (if the financial statements are
 required to include a statement of cash flows) of the registrant as of, and for, the
 periods presented in this report;

4. The
 registrant's other certifying officer(s) and I are responsible for establishing
 and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under
 the Investment Company Act of 1940) and internal control over financial reporting (as
 defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
 and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to
 the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) Designed
 such internal control over financial reporting, or caused such internal control over
 financial reporting to be designed under our supervision, to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and
 procedures, as of a date within 90 days prior to the filing date of this report based
 on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control
 over financial reporting; and

5. The
 registrant's other certifying officer(s) and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions)

&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal
 control over financial reporting which are reasonably likely to adversely affect the
 registrant's ability to record, process, summarize, and report financial information;
 and

&nbsp;&nbsp;&nbsp;&nbsp;b) Any
 fraud, whether or not material, that involves management or other employees who have
 a significant role in the registrant's internal control over financial reporting.

Date: February 27, 2026

---

| |
|:---|
| /s/ Christopher D. Clark |
| Christopher D. Clark |
| Principal Executive Officer |

---

**Item 19(a)(3):** 

**<u>CERTIFICATIONS</u>**

I, Peter K. Hoglund, certify that:

1. I
 have reviewed this report on Form N-CSR of Royce Capital Fund;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact
 or omit to state a material fact necessary to make the statements made, in light of the
 circumstances under which such statements were made, not misleading with respect to the
 period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in
 this report, fairly present in all material respects the financial condition, results
 of operations, changes in net assets, and cash flows (if the financial statements are
 required to include a statement of cash flows) of the registrant as of, and for, the
 periods presented in this report;

4. The
 registrant's other certifying officer(s) and I are responsible for establishing
 and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under
 the Investment Company Act of 1940) and internal control over financial reporting (as
 defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
 and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures
 to be designed under our supervision, to ensure that material information relating to
 the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) Designed
 such internal control over financial reporting, or caused such internal control over
 financial reporting to be designed under our supervision, to provide reasonable assurance
 regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented
 in this report our conclusions about the effectiveness of the disclosure controls and
 procedures, as of a date within 90 days prior to the filing date of this report based
 on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed
 in this report any change in the registrant's internal control over financial reporting
 that occurred during the period covered by this report that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control
 over financial reporting; and

5. The
 registrant's other certifying officer(s) and I have disclosed to the registrant's
 auditors and the audit committee of the registrant's board of directors (or persons
 performing the equivalent functions)

&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal
 control over financial reporting which are reasonably likely to adversely affect the
 registrant's ability to record, process, summarize, and report financial information;
 and

&nbsp;&nbsp;&nbsp;&nbsp;b) Any
 fraud, whether or not material, that involves management or other employees who have
 a significant role in the registrant's internal control over financial reporting.

Date: February 27, 2026

---

| |
|:---|
| /s/ Peter K. Hoglund |
| Peter K. Hoglund |
| Principal Financial Officer |

---

## Exhibit 99.906

**Item 19(b):**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Name of Issuer: ROYCE CAPITAL FUND

In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all materials respects, the financial condition and results of operations of the issuer.

---

| |
|:---|
| Date: February 27, 2026<br>|
| /s/ Christopher D. Clark |
| Christopher D. Clark |
| Principal Executive Officer |

---

**Item 19(b):** 

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Name of Issuer: ROYCE CAPITAL FUND

In connection with the Report on Form N-CSR of the above-named that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all materials respects, the financial condition and results of operations of the issuer.

---

| |
|:---|
| Date: February 27, 2026<br>|
| /s/ Peter K. Hoglund |
| Peter K. Hoglund |
| Principal Financial Officer |

---