Strategic Equity Capital : Quarterly Presentation Q2 2021

Strategic Equity Capital plc

(SEC.LN)

Q2 2021

July 2021

IMPORTANT INFORMATION

• The value of the Fund and the income from it is not guaranteed and may fall as well as rise. As your capital is at risk you may get back less than you originally invested
• Past performance is not a reliable indicator of future performance
• Funds investing in smaller companies may carry a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid than securities in larger companies
• This Fund may experience high volatility due to the composition of the portfolio or the portfolio management techniques used

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EXECUTIVE SUMMARY

Q2 2021 shareholder update

• Portfolio evolution: more normalised levels of portfolio activity in the quarter. Portfolio evolution and enhanced process implementation progressing well since September 2020
• Strong absolute performance (NAV/share +10.6%)1, in line with FTSE Small Cap index. Total NAV return of 46% since September 2020 despite no exposure to 'macro-recovery' sectors like resources, oil and gas or banks
• Positive portfolio news flow including private equity bids for Equiniti and Proactis at 56% and 79% premium2 to undisturbed prices respectively
• Clinigen was the primary detractor with profit warning driven by impact from Covid-related delayed cancer diagnoses and treatments; we retain a positive long-term view
• UK Small Cap valuation discount remains attractive despite trajectory over the last 9 months
• Core investment strategy remains consistent and focused on delivering long-termshareholder returns and reducing share price discount to NAV3
• Gresham House supporting fund with 5.4% stake built to date. FY22 and FY24 conditional tender offers announced by Board (see slide 16)

Past performance is not necessarily a guide to future performance. Portfolio investments in smaller companies typically involve a higher degree of risk.

1. Q2 2021 (31 March 2021 - 30 June 2021), on a total return basis
2. Equiniti closing price of 115.6p 08/02/2021 prior to bid speculation vs 180p offer price. Proactis closing price of 41.8p 29/04/2021 vs. 75p offer price.

3. Current forward PE ratio of c.10x is the lowest for the company since listing, excluding exceptional market conditions in 2020	3
Source: Juniper Partners, Bloomberg, as at 30 June 2021

STRATEGIC EQUITY CAPITAL PLC (SEC)

Application of private equity techniques to public small companies

• Differentiated strategy with highly-concentrated portfolio, deep research focus and engaged approach
• Genuine small cap - a structurally overlooked part of the market
• Long term investment horizon, low portfolio turnover with a quality company focus
• Small-capspecialists with significant public and private equity expertise leveraging
  Gresham House's broader platform and network
• Recent team changes with objective to drive performance and close discount to NAV leveraging track record of Ken Wotton and the Gresham House equities team

Specialist equity fund targeting absolute returns (15% IRR)1 over the medium term. Low correlation to market and peers.

Defensive characteristics. Tendency to outperform in weaker markets.2

Past performance is not necessarily a guide to future performance. Portfolio investments in smaller companies typically involve a higher degree of risk.

1. Internal target only, not guaranteed
2. http://performance.morningstar.com/funds/cef/ratings-risk.action?t=SEC®ion=gbr&culture=en-US&ownerCountry=USA

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SPECIALISTS IN ALTERNATIVES

Gresham House is a London Stock Exchange-quoted specialist alternative asset management group (GHE.LN), providing funds, direct investments and tailored investment solutions, including co-investment.

• Specialists in five areas of alternative investment
• Growing organically and through acquisition, expanding our shareholder base, and developing our investment pipeline
• Committed to operating responsibly and sustainably, building long-term value across our portfolio

Strategic Equity		Real Assets
Public	Private		New Energy &	Housing
Forestry	Sustainable
Equity	Equity
	Infrastructure
£0.9bn			£3.1bn

£4.0bn1

1. AUM as at 31 December 2020

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