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Japanese brokerage Nikko to launch start-up fund

TOKYO: Major Japanese brokerage Nikko Securities Co plans to launch an investment business for start-up companies by March, a Japanese financial daily reported on Saturday.

Nikko will set up a fund of 50-70 billion yen ($476.2-666.7 million) from the brokerage's capital to buy stakes in domestic companies, the Nihon Keizai Shimbun reported citing company sources.

The new business aims to use the fund to buy shares in unlisted companies and try to sell stakes when the firms go public as well as using the money for acquiring companies, it said.

Nikko officials could not be reached immediately for comment due to the weekend holiday.

On Friday, Japanese electronics group Kyocera Corp and U.S. investment firm Goldman Sachs said they would create a fund to invest in high-tech start-up ventures, opening up a new path for one of Japan's traditional companies.

The 30 billion yen ($285 million) fund will be formed later this month with Kyocera injecting 10 billion yen and Goldman 20 billion yen, the companies said in a joint statement.-Reuters