Chase Capital Extends Into Third-Party Funds –

NEW YORK – 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 are planning a number of new funds, said 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 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. The firm already has one fund targeting third-party capital and recently closed another vehicle.

Chase Capital in June held a final close on Octagon Investment Partners II, L.L.C., 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. That fund saw a first close in May on $521 million.