Key Spins Out Funds Group

NEW YORK ( TheStreet) -- Key Capital, KeyCorp ( KEY)'s fund of funds group, is spinning out as separate firm called Cuyahoga Capital Partners.

Cuyahoga is already raising a secondary fund of $125 million, according to The Wall Street Journal. The first vehicle is expected to bring in about $70 million and close in the next two months.

The investments will be used to purchase venture capital, buyout and mezzanine deals less than $25 million. KeyCorp will not be investing in the fund, the report stated.

The spinoff was precipitated by Dodd Frank Wall Street Reform Act, which will eventually force banks to seperate private equity from other firm activity.

--Written by Maria Woehr in New York.

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