Danvers, Mass-based Seacoast Capital, a firm targeting the lower middle market, has hired Timothy Fay as a partner in its San Francisco office. Previously, Fay was a managing partner and the co-founder of Cleveland, Oh.-based Key Principal Partners (whose team has since launched Cyprium Partners). PRESS RELEASE: Danvers, MA, September 7, 2011 – Seacoast Capital (“Seacoast”) [...]

Investment firms are being spun out of banks left and right—some, to keep companies in compliance with the new requirements imposed on banks via Dodd-Frank. peHUB has been tracking some of the spin-outs seeking capital, and some others, that have not yet needed to fundraise—but soon, might. While the fundraising market has been generous to some private equity firms, other PE shops could face difficulty bringing in capital absent of their big-brother LPs. Only time will tell….

Dodd-Frank has claimed its latest victim.

Cleveland-based KeyCorp, which has about $90 billion in assets, has decided to no longer invest in PE funds. The bank has spun off its PE affiliate, Key Principal Partners Corp., says Leland Lewis, a KPP managing partner based in New York. Executives of Key Principal Partners have launched a new firm, Cyprium Investment Partners, that retains the investment mandate of KPP, he says.

Key Principal Partners has promoted Patrick Rond to vice president. He joined the firm in 2002 from ABN AMRO.

Key Principal Partners, a lower middle market private equity firm based in Cleveland, has promoted Patrick Rond to vice president. Rond joined the firm, in 2002 as an analyst. KPP is the private equity arm of KeyCorp.

Home Foods Market, a Norwood, Mass.-based maker of frozen foods for both retail and foodservice customers, has secured $22 million in subordinated debt from Key Principal Partners. The deal was used to refinance the company’s existing debt and for working capital. www.homefoodsmarket.com

Key Principal Partners has promoted Dan Kessler and Beth Laschinger to vice presidents, and Jon Leffers and Mike Mayon to associates.

Key Principal Partners has promoted Jonathon Leffers from an analyst to an associate. www.key.com/keyprincipalpartners