Normura Asset Management has agreed to invest 3 billion yen (£17 million) in Bridge Capital Asset Management with a view to taking a stake in the Tokyo-based hedge fund incubation firm.

Nomura Asset Management is investing 3 billion yen (£17 million) in Bridge Capital Asset Management with a view to taking a stake in the Tokyo-based hedge fund incubation firm.

The investment will go into Bridge Capital's incubation fund for hedge fund managers focused on Japanese equities.

According to Nomura the investment will widen its hedge fund product offering and accelerate its alternative product development process.

The Japanese bank did not say when it can exercise its option to acquire a stake in Bridge Capital or how big that stake might be.

Bridge Capital's incubation funds has 7 billion yen in assets under management.