Chase Capital Forays Into Third-Party Funds –

With one fund targeting third-party capital currently on the market, another that saw a final closing last month and more in the works, private equity giant Chase Capital Partners is in the midst of expanding its business to include managing money other than that of its parent, Chase Manhattan Corp.

Partners at Chase Capital currently are planning a number of new funds to bring to market, according to David Mullane, a managing director at Chase Capital. Mr. Mullane, who previously worked as a director at Merrill Lynch & Co.’s private equity group, was hired in April to head up Chase Capital’s fund raising activities. “We’re expanding our net a little wider to include third party capital, which is something we never did before,” he said.

Mr. Mullane declined to comment on what types of funds Chase Capital was planning, adding they were still under discussion.

Last month, Chase Capital held a final close on Octagon Investment Partners II, LLC, rounding up $1 billion. The collateralized debt obligation fund will invest in high-yield bank loans and high-yield bonds, as well as directly in mezzanine and private equity deals.

In 1998, the firm began marketing a $750 million buyout fund focusing on Asia (BUYOUTS April 5, p. 1). That fund saw a first close in May on $521 million.