Interim Management Statement

INTERIM MANAGEMENT STATEMENT

Strategic Equity Capital plc

This interim management statement, issued in accordance with the new EU
Transparency Directive, relates to the period from 1 January to 31 March 2008.

Investment Highlights

  * NAV negatively impacted by market turmoil in January, steady progress
    thereafter.
   
  * Portfolio companies operating well; strategic and operational plans on
    track.
   
  * Northgate Information Systems sold following takeover offer from KKR.
   
  * Takeover approach for Civica Group by 3i Group.
   
Financial Highlights

  * Net assets of £60.0 million, or 83.2p per share; a decrease of 9.6%.
   
  * Share price of 60.8p, a decrease of 12.5%.
   
  * Company marginally geared at the end of the period; moved to a net debt
    position of £1.0m at 31 March 2008
   
  * 450,000 shares (6.2% of share capital) bought into treasury at a weighted
    average price of 64.6 pence.
   
Investment Manager's Review

The UK stock market started 2008 in the midst of a worldwide banking crisis and
facing weak economic data from the USA. Correspondingly the FTSE 100 registered
its worst first quarter on record, falling by 10.5%. The broader market was not
much better; the total return for the FTSE All-Share Index also fell by 9.9%.

January saw a further de-rating of our investments in line with the markets,
but as the results season got underway the situation improved dramatically. Our
investee companies generally delivered solid results and outlook statements,
with the majority of earnings ahead of expectations. As a result from the end
of January to the end of the period we saw an increase in net assets of 5.1%,
as compared to a 2.4% fall in the FTSE Small Cap excluding Investment Trusts
Index.

A significant number of our portfolio companies were engaged in takeover talks
in the first quarter, and we expect this trend to continue over 2008. Of
particular note during this period were the sales of Northgate Information
Solutions following a takeover offer by Kohlberg Kravis Roberts (KKR), and an
approach for Civica by another private equity group, 3i.

Over the last year SVG Investment Managers has identified the computer software
industry as a key area of interest. In our opinion the public markets are not
properly valuing the high cash flow yields and recurring revenues that many
companies in this sector possess. We have not been alone in noticing the
attractions of the sector, and private equity and trade buyers have been active
in the area. Our investment strategies enables companies to deliver private
equity style value creation strategies in public markets and we have been
working extensively with corporate management teams, attempting to formulate
and agree such plans. We encourage companies to execute their plans in a listed
environment. Unfortunately, given the high levels of short-termism in the
public markets, and the uncertainty that this generates for business leaders,
it is unsurprising to see some management teams choosing privatisation.

Elsewhere in the portfolio: Following an announcement in January concerning
operational issues in its UK business which led to a fall in the share price, 
Entertainment Rights announced that it had received a number of approaches from
potential buyers. In the Investment Manager's view, a sale of the business at
the current time would not generate best value for shareholders. We were
therefore supportive of management's decision to terminate talks shortly after
the period end.

Melrose announced that it was in talks to acquire FKI, the industrial
conglomerate. Since the period end, the deal has been recommended by the FKI
board, and Strategic Equity Capital has participated in an underwriting of
Melrose shares to raise money for the acquisition.

Pinewood Shepperton announced that Peel Holdings had increased its stake in the
company to 20%. The Investment Manager continues to support Pinewood's strategy
and believe that there is substantial unrecognised value in the shares.

Payzone has experienced a high level of management conflict. Strategic Equity
Capital joined a requisition with other shareholders to call an EGM, to remove
the incumbent chief executive and finance director. The EGM resolutions were
successful. The company has since announced a number of important changes to
the board which we find broadly encouraging.

Portfolio Activity

The Company exited its holding in Northgate Information Solutions. Northgate
was the subject of a takeover bid led by KKR, which was announced in December
2007. The realisation resulted in an IRR of 28.4% and a 1.16x multiple of cost.

There were no new investments made during the period, instead the Company
invested the proceeds in those companies which, following the recent market
turmoil, we believe can be purchased at extremely attractive valuations. The
most significant of these additions were Entertainment Rights, 4imprint and 
Mecom. In all three cases, we believe that the strategic, operational and
management change required for significant value enhancement is well underway.

Corporate Events

In the three months to 31 March, the Company bought back a further 450,000
shares at an average price of 64.6 pence and at an average discount to NAV of
21.4%, bringing the total number of shares bought back as at 31 March to
500,000. Since the period end an additional 307,500 shares have been bought
back. All 807,500 shares bought to date are held in treasury. The Board
continually assesses the need and desirability to buyback shares.

Outlook

We believe the current market conditions represent a good investment
opportunity, and should not threaten the ability of the Trust to generate good
absolute returns over the medium term. We remain confident in the companies in
which we have invested and their management teams. Overall, the portfolio
companies value creation strategies are well on track. We also believe that
Strategic Equity Capital will continue to benefit from takeover activity over
the remainder of the year.

We are pleased to note that since the end of the period, the progressive uplift
in share price and net assets which began in the middle of the period, has
continued since the end of March. In addition to this improvement in
performance, the share buy-back programme has been accompanied by a narrowing
of the discount to net assets.

Top 10 Investments

Company name (as at 31 March 2008)       % invested
                                       in portfolio
                                                   
Redstone                                       12.1
                                                   
Pinewood Shepperton                             9.1
                                                   
Spirent Communications                          6.7
                                                   
Filtronic                                       6.5
                                                   
Thorntons                                       6.1
                                                   
Mecom                                           5.3
                                                   
4imprint                                        5.3
                                                   
Intec                                           5.1
                                                   
Vintage Limited                                 4.5
                                                   
Payzone                                         4.4

Sector analysis            % of portfolio
                                         
Technology                           24.3
                                         
Media                                18.5
                                         
Support services                     14.7
                                         
Telecoms                             13.3
                                         
Industrials                           9.2
                                         
Investment companies                  6.7
                                         
Retail                                6.1
                                         
Financials                            4.6
                                         
Leisure                               1.4
                                         
Construction                          1.2

Size analysis              % of portfolio
                                         
(market cap)                             
                                         
£300 - £500 million                  14.2
                                         
£100 - £300 million                  39.6
                                         
<£100 million                        46.2

For further information please contact:

Xziena Charles

SVG Advisers Limited

Telephone: [phone] or email [e-mail]

Company website: www.strategicequitycapital.com

Throughout this document "Strategic Equity Capital" or the "Company" refers to
Strategic Equity Capital plc. "The Investment Manager" refers to SVG Investment
Mangers Limited