The process of porting the Conduit 2 version of their Quantum3 engine has gone 'pretty darn well'.
http://www.nintendoworldreport.com/news/25063
In an interview with Eurogamer, High Voltage Software's Eric Nofsinger quietly announced that there is a title in the Conduit series under development for 3DS.
Nofsinger, the chief creative officer at High Voltage, spoke well of the process of porting their Quantum3 engine to 3DS. While still early in development, many of their development resources are now moving from Wii's Conduit 2 to the 3DS Conduit project, he notes that, even prior to optimization, "It runs pretty darn well with full 3D and everything."
Nofsinger states that the core gameplay is already in place and that the visuals are "going to be able to have something very close to this [Conduit 2] on the 3DS probably by GDC." The lower resolution of the 3DS is offset by the smaller screen size.
He also believes that High Voltage's experience in console development will provide an advantage over developers who work primarily in the portable space. "Developers like us that have more of a console experience on GameCube and on Wii are going to be able to take advantage of the 3D."
He also spoke highly of the decision by Nintendo to use a universal Friend Code which he hopes will deliver the true multiplayer shooter experience to a handheld gaming device.
There is currently no publisher for the title, and so far they've only had early discussions. He does note that they have spoken with the publishers of The Conduit and the upcoming sequel, Sega, are they are likely to be interested as there is "nothing like [The Conduit] at all" in the 3DS lineup.