Daiwa Securities SMBC Principal Investments and Quantum Leaps have agreed to set up a private equity joint venture in Japan to be named Daiwa Quantum Capital Limited, with the goal of launching a co-investment growth fund.

The establishment of the JV is expected to be completed in early April, after which time the fund will be offered to domestic and overseas institutional investors. Daiwa SMBC will hold a 51% stake in the JV, while the rest will be held by Quantum Leaps.

The private equity fund hopes to raise ¥30 billion ($307 million). It plans to invest in technology-oriented companies in Asia with high-growth potential.

The fund aims to act as a bridge between Asia and Japan, with an investment focus on providing support for Asian companies to grow by acquiring technologies and management skills from Japan and also for Japanese companies to expand their businesses in Asia. The fund plans to invest 30% of its assets in Japan, and the rest will be spread throughout Asia, particularly China and India.

Nobuyuki Idei, founder and CEO of Quantum Leaps, says the fund will help create new value in Asian companies by providing risk capital. Idei will serve as the chairman of the JV.

"The financial turmoil triggered by the subprime mortgage crisis continues to have serious and wide-ranging negative repercussions. Now more than ever, we need bold new initiatives that will spur innovation in Japan and Asia," he says.

The JV is counting on Idei's broad network with top management throughout Asia for access to high quality deals.

Daiwa SMBC's investment track record, meanwhile, is expected to steer the fund's performance over the long-term. The firm has executed more than ¥1 trillion ($10.2 billion) of principal investments.