STRATEGIC EQUITY CAPITAL - 113p There has been much written in recent weeks of a wall of money' coming from private equity seeking out acquisitions, though unfortunately, retail investors are not able to join in this frenzy of activity.

However, Strategic Equity Capital (SEC) came to the market in July last year at 100p and raised £70.4m, and in November it issued more shares at a small premium to net asset value raising a further £2.3m.

The company aims to bridge the gap between public and private equity investing primarily in publicly quoted companies that the manager believes are undervalued and could benefit from strategic, operational or management initiatives.

SEC draws on the resources of a Strategic Advisory Board, which includes Sir Clive Thompson (former Chief Executive and Chairman of Rentokil Initial plc), Ken Minton (former Chief Executive of Laporte plc) and William Nabarro (former vice-Chairman of KPMG Corporate Finance).

SEC uses an investment appraisal process involving private investment techniques, including an in-depth due diligence process, which includes meetings with the management teams and business counterparties; detailed valuation and financial analysis with a focus on free cash-flow generation and asset backing As at December 2005, SEC was approximately 40 per cent invested with ten portfolio investments. It is with clear intent that SEC will be substantially invested by end of June 2006. One of its investments is Hampson Industries which accounts for just over seven per cent of SEC's ssets. Hampson is an international precision engineering group serving the global aerospace, automotive and specialist engineering markets.

Following September 2001, the group underwent a rationalisation to improve the competitiveness of the business in order to secure future growth. With SEC on board, the group participated in a discounted equity placing to facilitate the acquisition of two US aerospace companies. SEC believes the group is well placed to benefit from any upturn in the global aerospace cycle.

Evolution has a significant market share of the AIM and UK small cap market, in addition to a profitable private client fund management business. This investment accounts for just over five per cent of SEC's net assets. Evolution has made a number of management changes, and is to more efficiently use its balance sheet to create value.

Another investment has been Chorion (we tipped the shares in June at 315p, and they are currently 430p and subject to a bid from its management). I expect this investment will be realised.

Investors should take a three to five-year view on this company and BUY UK Dividend Plus ETF.

WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.