Nomura Asset Management on Wednesday announced an alliance with Bridge Capital Asset Management Co., a Tokyo-based hedge fund incubation firm.
Under an agreement reached by the two firms, Nomura Asset Management will invest up to ¥3 billion ($29.3 million) in Bridge Capital's incubation fund for hedge fund managers focused on Japanese equities, with an option to take an equity stake in the firm in the future.
A Nomura spokesman said the firm's capital commitment will be drawn down as Bridge Capital identifies new incubation candidates.
The spokesman declined to provide specific details regarding when Nomura can exercise its option to acquire a stake in Bridge Capital, or how big that stake might be.
In a separate interview, Takashi Yabuuchi, CEO of Bridge Capital, said the option would allow Nomura to take a minority stake in the company.
Bridge Capital's incubation funds had about ¥7 billion in assets under management prior to Nomura's commitment.
As of June 30, Nomura Asset Management had about $358 billion in assets under management.