Interim Management Statement

INTERIM MANAGEMENT STATEMENT

Strategic Equity Capital plc

This is the first interim management statement for the Company, in accordance
with the new EU Transparency Directive and relates to the period from 1 July
2007 to 30 September 2007.

Summary (as at 30 September 2007)                                           
                                                                            
Net assets                                                     £74.8 million
                                                                            
Net Asset Value (NAV) per Ordinary share                        103.03 pence
                                                                            
% of funds invested                                                     103%


Investment Manager's Review

The Company's NAV per Ordinary share declined by 9.4% in the first quarter
against a backdrop of a volatile UK market. The Company's share price has
performed slightly better, falling 8.5% as the Company's discount to NAV
narrowed to 6.5%. Overall the Company's performance was similar to that of FTSE
Smaller Companies ex-Investment Trust Index, which fell by 9%.

This decline in the NAV did not reflect negative news flow from the underlying
portfolio, which was predominantly positive. Out of our 26 investee companies
15 reported earnings over the period and on average these earnings were 6.7%
above market expectations. The Company had no exposure to sectors potentially
impacted by the credit crisis such as banks, consumer finance, property and
construction.

In the Manager's opinion the UK market experienced extraordinary conditions in
this quarter, investors' time frames appeared to narrow, trading volumes
spiked, as opinions on the outlook oscillated and share price momentum became
an overriding focus. We remain confident that our private equity based approach
to investing will deliver strong absolute returns over the long-term and
continue to focus on companies which may benefit from strategic, operational or
management change.

New Investments

  * There were no new investments made during the period
   
  * The Company increased its holding in Entertainment Rights over the period;
    this is now a top 10 holding.
   
Realisations

  * The Company exited its "toe-hold" position in Nationwide Accident Repair
    Services at a 4% uplift on cost or an IRR of 22.6% including dividends.
   
Key Company Events

As mentioned previously, the majority of the portfolio's companies announced
results over the period. Most of these indicated good underlying operating
performance in line with our investment thesis. In our opinion the following
events were of particular importance:

Filtronic announced that it had succeeded settling outstanding product
liability claims relating to the sale of its Wireless infrastructure business
in October 2006 and that it had reduced its pension scheme liabilities by 35%
for a payment of £5.3 million. This led to a significant recovery in the share
price.

Melrose plc returned £220 million to its shareholders following the sale of
McKechnie Group, announced by the company in March this year. The return
represented approximately half of our investment in Melrose and as a result,
Melrose is no longer a top 10 holding.

SMG announced the sale of Primesite but the cancellation of the sale of Virgin
and otherwise difficult trading conditions. As a result, we significantly
reduced our investment in SMG.

Corporate Events

On 9 August 2007 the Board announced the appointment of Michael Phillips as a
non-executive director. Michael is the Chief Executive of iimia MitonOptimal
PLC, an AIM quoted company.

Top 10 Investments

Company name (as at 30 September 2007)   
                                         
Cardpoint                                
                                         
Entertainment Rights                     
                                         
Evolution Group                          
                                         
Filtronic                                
                                         
Mecom Group                              
                                         
Pinewood Shepperton                      
                                         
Redstone                                 
                                         
Renold                                   
                                         
Spirent Communications                   
                                         
Thorntons                                

Sector analysis            % of portfolio
                                         
Media                                  19
                                         
Technology                             19
                                         
Telecoms                               15
                                         
Support services                       14
                                         
Industrials                            13
                                         
Financials                              8
                                         
Retail                                  6
                                         
Investment companies                    4
                                         
Leisure                                 1
                                         
Construction                            1
                                         
Net cash                                0

Size analysis              % of portfolio
                                         
(market cap)                             
                                         
>£300 million                           8
                                         
£100 - £300 million                    73
                                         
<£100 million                          19

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 Manager" refers to SVG Investment Mangers
Limited