Interim Management Statement

STRATEGIC EQUITY CAPITAL PLC

This interim management statement, issued in accordance with the UK Listing
Authority's disclosure and transparency rules, relates to the period from 1
July to 30 September 2009.

Investment highlights

  * Net assets per share increases by 28.6% to 64.03p.
   
  * Strong operating and share price momentum from portfolio companies.
   
  * Shareholders approve acquisition of Strategic Recovery Fund II stake,
    leading to significant value enhancement.
   
  * Partial realisation of largest investment in anticipation of investment in
    attractively priced secondary fundraisings.
   
Financial highlights

  * Net assets of £49.2m or 64.03p per share.
   
  * Discount remains broadly unchanged at 27.0%.
   
  * Unlisted investments increase to 18.2% of net asset value.
   
Investment Managers' Review

  * The period saw a further improvement in net assets per share of 28.6%,
    resulting in a cumulative increase of 57.7% since the start of the calendar
    year. This improvement was driven by two main factors: the Company's
    acquisition of a stake in Strategic Recovery Fund II ("SRF2") at a
    significant discount to NAV, and the continued strong performance of the
    Company's and SRF2's largest holdings. The latter was compounded by very
    favourable market conditions.
   
  * The period saw a remarkable improvement in the valuation of quoted
    equities, especially smaller companies. This appeared to be driven by a
    combination of policy fuelled liquidity, an increase in risk appetite
    amongst private investors and, from March onwards, consistent upgrades in
    consensus earnings estimates for the market as a whole.
   
  * Deeply distressed, highly indebted companies saw marked increases in their
    share prices as markets took a more optimistic view on their survivability;
    this trend may not be sustainable. However robust company performances were
    also rewarded as investors started to focus on medium and longer term
    sustainable cash generation and growth. This trend benefited the Company's
    portfolio, which continues to offer very attractive absolute and relative
    valuation characteristics. It remains disproportionately invested in market
    leaders in industry niches, which exhibit strong cash flow characteristics
    and growth prospects.
   
  * From a company specific perspective the Company saw positive contributions
    from most of its holdings, but of particular note were Intec Telecom
    Systems, Thorntons, RPC Group, Spirent and Statpro. All of these companies
    shared a common characteristic of announcing strong results or trading
    statements, leading to upgrades of future earnings expectations. Intec
    continues to benefit from contract wins. Thorntons benefitted from a
    stabilisation of its retail business and continued commercial sales growth.
    RPC continued to see the benefits of the implementation of its strategic
    review; we are optimistic about the possibility of further operating margin
    improvements over the long term. Spirent benefitted from the structural
    change happening in the telecommunications industry as a result of the
    faster than expected uptake of wireless data services. Finally Statpro
    delivered interim results ahead of expectations and strong cash generation.
   
Portfolio activity

  * The portfolio remains highly focused with 23 holdings. The continued strong
    performance of the largest holdings, together with the comparatively large
    size of the SRF2 partnership interest, meant that the percentage of the
    portfolio represented by the top 10 holdings increased slightly to 83.8%.
   
  * The most significant change to the portfolio over the period was the
    acquisition of 3i's interest in the SRF2, and its associated loan
    commitment, in return for shares issued at NAV. This increased the
    percentage of the portfolio invested directly in unquoted equities from
    3.6% to 18.2%. The Company's interest in SRFII is re-valued monthly based
    on the market value of the underlying quoted company holdings.
   
  * The Company added to its holding of KCOM Group which we believe continues
    to offer compelling absolute and relative value. The new management team is
    delivering significant operational improvements, and we believe that the
    market has not fully recognised the positive financial implications of the
    network outsourcing deal with BT which it announced in September.
   
  * The period saw a partial disposal of the Company's stake in Intec Telecom
    Systems, which had rallied 269% since the start of 2009, and now trades at
    more than two times cost. While Intec will undoubtedly benefit from the
    telecommunications industry's growing investment in 4G technologies and
    applications, its period of margin enhancement through strategic,
    operational and management change is now largely completed.
   
  * Portfolio turnover remained relatively low, with most of the other activity
    focused around a tidying up of small "toe-hold" investments that have not
    ultimately led to further corporate engagement. As a result at the end of
    the period the Company held 11.3% in cash.
   
Outlook

  * Macro economic data has transitioned from negative to a mixed picture.
    However, the UK government, UK consumer and elements of the corporate
    sector retain high levels of gearing. Combined with credit rationing by the
    large banks, we expect the UK domestic economy to lag any global recovery
    both in terms of timing and scale. We expect continued degearing of the
    corporate sector - both by internally generated cash flows as well as
    equity fundraisings - as well as some high profile failures in the public
    markets over the next twelve months as poorly capitalised businesses find
    themselves unable to fund the working capital required to grow again.
   
  * We believe that defensives and cyclical stocks have become "overcrowded"
    and see the best investment opportunities in high quality smaller companies
    on relatively low valuations. As mentioned in the final results we are
    placing a particular focus on refinancings and fundraisings, where we can
    maximise our influence and capitalise on the high value of new equity. We
    remain actively engaged with the UK small cap corporate finance community,
    having reviewed many potential fundraisings in the period and built a
    pipeline of opportunities. We were expecting a number of these to be
    completed in September, however a number were delayed. The Company has been
    able to make a significant investment in one of these since the period end,
    and we are hopeful of several more before the end of the year.
   
Summary

(as at 30 September 2009)

Net assets               £49.2m
                               
NAV per share            64.03p
                               
Net cash %                 11.3

Top 10 Investments

Company name (as at 30 September      % of invested
2009)                                     portfolio
                                                   
Strategic Recovery Fund II                    17.50
                                                   
RPC Group                                     10.72
                                                   
Intec Telecom Systems                          8.99
                                                   
StatPro Group                                  8.91
                                                   
Spirent Group                                  8.83
                                                   
Thornton's                                     7.89
                                                   
KCOM Group                                     6.43
                                                   
Pinewood Shepperton                            5.18
                                                   
4imprint Group                                 4.89
                                                   
ORA Capital                                    4.50

Sector analysis            % of portfolio
                                         
Unlisted                             18.2
                                         
Manufacturing                        12.6
                                         
Telecoms                              6.8
                                         
Technology                           25.0
                                         
Retail                                7.0
                                         
Media                                 6.4
                                         
Support services                      8.1
                                         
Financial general                     4.0
                                         
Leisure                               0.6
                                         
Net cash                             11.3

Size analysis              % of portfolio
                                         
(market cap)                             
                                         
<£100 million                        51.0
                                         
£100 - £300 million                  21.0
                                         
£300 - £500 million                   8.0
                                         
Greater than £500                     8.7
million                                  
                                         
Net cash                             11.3

The Directors are not aware of any significant events or transactions which
have occurred between 30 September 2009 and the date of publication of this
statement which have had a material impact on the financial position of the
Company.

For further information please contact:

Adam Steiner

SVG Advisers Limited

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

Company website: www.strategicequitycapital.com