Interim Management Statement

STRATEGIC EQUITY CAPITAL PLC

This interim statement, issued in accordance with the UK listing authority's
disclosure and transparency rules, relates to the period from 1 January to 31
March 2009.

Investment highlights

  * Net assets per share stable at 40.7p, despite continued market volatility
    and a 4.8% decrease in the UK smaller companies market
   
  * Tentative signs of M&A market returning with public to private proposal for
    3i QPE (a significant holding within the Fund)
   
  * Strong company results confirm that investment strategies are generally
    progressing well
   
  * Portfolio continues to offer the potential for significant earnings growth
    ahead of the market
   
Financial highlights

  * Net assets of £28.3m or 40.7p per share. An increase of 0.3% during the
    period
   
  * Substantial narrowing of discount leads to an increase of 63.8% in share
    price to 23.75p,
   
  * Company broadly fully invested at end of period, net cash representing 3.2%
    of NAV
   
  * Latest NAV released as at 8 May 2009 shows continued recovery in
    performance to 49.18p per share.
   
Investment Managers Review

The period appeared to represent relative stability after 18 months of
volatility; however, the markets started the period very weakly before
rebounding in March. We believe that investment horizons across many asset
classes reduced from longer term perspectives to weeks or even days.
Concordantly small and mid cap companies' share prices were dramatically
affected and the FTSE SmallCap index (ex IT) fell 67% from peak to trough. This
sell off was indiscriminate and highly influenced by liquidity.

The affects of this scale of de-rating upon a company, its management and
employees can be significant. It can influence M&A, de-motivate key managers
and, in summary, affect long term corporate strategy which may be firmly
focused on shareholder value. One of the objectives of `value' and private
equity style investors is to support medium term management plans for the
benefit of all stakeholders. The current environment tests this resolve;
however, the investment returns from execution and delivering can be
substantial.

There is tentative evidence that valuations are becoming relevant again to the
investment community. This is beginning to benefit the Company's portfolio,
which continues to offer very attractive absolute and relative valuation
characteristics, including 0.9x price/book (versus 1.2x for FTSE SmallCap
index), superior forecast earnings growth of 12.9% (versus 7.1% for FTSE
SmallCap index) and a dividend yield of 7.4% (4.7% for FTSE SmallCap index).

There is long term evidence that investing in smaller companies, when
valuations are at current levels, usually generate very attractive medium-long
term returns. The macro economic environment remains poor, however, the stock
market generally reflects these issues well in advance and the smaller
companie's index peak to trough has fallen to levels similar to the troughs in
the 1970's and 1930's. The portfolio remains concentrated, and although the
recession will inevitably slow the value creation plans, the Manager is pleased
that the vast majority of portfolio companies are robust and performing well.

Portfolio activity

In line with the investment strategy of strategic block investing, the
portfolio saw limited activity with turnover less than 2% of NAV. There were no
new investments made over the period. Despite M&A activity continuing at very
low levels, it is pleasing to see the portfolio profitability benefitting from
a proposed public to private transaction, as 3i Group plc announced a
recommended takeover of 3i QPE at a significant premium.

Follow-on investments in KCOM and Thorntons were made as share price weakness
presented compelling opportunities to buy at depressed levels. Both of these
companies continue to progress their value creation strategies, implemented by
relatively new management teams. A small toe hold investment in Fiberweb was
realised as no compelling strategic opportunity was identified in the short
term.

Outlook

The stock market has recently seen signs of increasing risk appetite,
simultaneously to a stabilisation of the corporate banking market, which has
also given confidence for some to engage in corporate transactions. It is
important to recognise how far the UK smaller companies market has fallen since
July 2007. This has presented some compelling valuation opportunities which
will unwind over the medium-long term, generating substantial equity returns.
Indeed, it is likely that corporate and private equity buyers will increasingly
look to exploit this. The portfolio is well positioned to benefit from this, as
well as deserved share price re-ratings reflecting the underlying earnings
growth as management successfully execute their strategies.

Summary

(as at 31 March 2009)

Net assets               £28.3m
                               
NAV per share            40.74p
                               
Net cash %                  3.2

Top 10 Investments

Company name (as at 31 March 2009)       % invested
                                       in portfolio
                                                   
Pinewood Shepperton                             9.5
                                                   
Intec Telecom                                   9.4
                                                   
Spirent Communications                          8.3
                                                   
Vintage 1 Limited                               8.2
                                                   
4imprint                                        8.0
                                                   
RPC Group                                       7.9
                                                   
Statpro Group                                   7.2
                                                   
Thorntons                                       6.2
                                                   
3i Quoted Private Equity                        5.9
                                                   
Redstone                                        5.8

Sector analysis            % of portfolio
                                         
Technology                           27.3
                                         
Support Services                     15.9
                                         
Investment Companies                 13.6
                                         
Industrials                          11.6
                                         
Media                                10.4
                                         
Telecoms                              8.5
                                         
Retail                                6.0
                                         
Financial General                     2.7
                                         
Leisure                               0.8
                                         
Net cash                              3.2

Size analysis              % of portfolio
                                         
(market cap)                             
                                         
<£100 million                        57.1
                                         
£100 - £300 million                  16.7
                                         
£300 - £500 million                  15.1
                                         
Greater than £500                     7.9
million                                  
                                         
Net cash                              3.2

For further information please contact:

Adam Steiner

SVG Advisers Limited

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

Company website: www.strategicequitycapital.com