Management Arrangements

British Smaller Companies VCT plc ("the Company")

YFM Private Equity Limited ("YFM") - Management Arrangements - Change of Ownership

YFM has been the Manager of the Company since inception.

On 30 September 2013 YFM was acquired by YFM Equity Partners LLP, a partnership set up by the YFM management team to acquire YFM from its ultimate parent company, Greater London Enterprise Limited. YFM Equity Partners LLP is a fully independent, owner managed business that will carry on YFM's 30-year tradition of investing in established fast growing businesses.

The Company will continue its strategy of investing in predominantly unquoted businesses providing development capital and capital to fund change of ownership situations. A good example is the recent investment the Company made to fund the management buy-out of technical sailing brand Gill Marine.

For further information, please contact:

Investment Adviser to the Companies

YFM Private Equity Limited

David Hall

Telephone: 0113 294 5039