The QOL Fund: Ushering in a New Age of ESG Investment for Society

In a groundbreaking initiative, Profits Inc., located in the Chiyoda district of Tokyo, has launched the QOL Fund. This innovative fund represents a new form of ESG investment, focusing on enhancing quality of life through real estate and aiming to distribute enriched living experiences broadly across society.

A New Perspective: Consumers at the Heart

The rapid advancement of the internet and artificial intelligence has significantly reduced information disparities, enabling individuals to access diverse resources and make informed decisions. This shift calls for a change in the real estate sector, where traditionally, companies held the reins of information, leaving consumers to make passive choices. In response, Profits is championing a new era of consumer-centric real estate solutions, focusing on real needs such as childcare center availability and pet-friendly housing. By collaborating across industries and sharing valuable content, Profits strives to resolve social challenges and create new value for consumers. The QOL Fund embodies these comprehensive initiatives.

Understanding ESG Investments: The 'Social' Element

While ESG investments primarily focus on environmental issues such as combating climate change and reducing energy consumption, Profits envisions a broader interpretation of the 'S' in ESG. Addressing social issues not only involves mitigating problems but also uplifting consumer satisfaction and happiness. This dual perspective defines socially meaningful investments: tackling challenges that hinder quality of life and fostering positive value creation.

This concept of value creation means fulfilling the latent needs and minor grievances in consumers' everyday experiences through specific mechanisms and engagements. For example, initiatives aimed at enhancing safety, comfort, operational staff satisfaction, and community coexistence improve the overall experience for users, residents, and community members alike. Profits believes that these incremental efforts contribute to the creation of social value, which is why the fund is aptly named the QOL Fund.

By consistently implementing these positive initiatives, Profits believes it can ultimately contribute to decreasing the negative issues affecting society over the long term. The activities aimed at reducing negatives and those aimed at generating positive value are both essential aspects of the 'S' in ESG. With this understanding, Profits is redefining the connection between real estate, consumers, and society, exploring new pathways for ESG investments.

Features: Balancing Social Value Creation with Revenue Growth

The QOL Fund is based around the principle of enhancing Quality of Life, featuring a portfolio that consists of four asset types: childcare centers, shared offices, rental housing, and hotels, encompassing a total of 11 properties. This portfolio closely examines the 'S' in ESG investing. A unique aspect is its integration of quantitative evaluations of social value, in accordance with guidelines from the Ministry of Land, Infrastructure, Transport and Tourism for 'Socially Impactful Real Estate'.

Key performance indicators (KPIs) include resident satisfaction, employee development, and contributions to the local area, all of which are continuously tracked and visualized through a platform. This allows Profits to gauge the impact of social initiatives on tenant satisfaction (by revealing potential needs) and long-term asset value maintenance and enhancement. This robust operational framework mitigates investment risks, addresses investor responsibilities, and supports future business development tasks.

Future Prospects

After the establishment of the first QOL Fund, Profits plans to launch a series of funds totaling 70 billion yen over the next three years. By March 2026, a second fund worth approximately 25 billion yen is already on the horizon. Profits aims to serve as a pioneering model for asset management that harmoniously combines social value with economic returns, committing to transparency and disclosure in partnership with both public and private sectors.

Shinichiro Tanaka, President of Profits, shared his insights: “In this era, where information and technology empower consumers to steer decision-making, it’s crucial that the investment strategies we pursue transcend conventional real estate leasing to focus on generating meaningful value rooted in societal connections. The QOL Fund materializes this vision. By creating and making visible social value, we will meet our accountability to investors while addressing our societal responsibilities. We will continue to pursue value creation with long-term objectives, collaborating with diverse partners and investors.”

QOL Fund Overview

- Name: QOL Fund No. 1
- Type: Private, fixed-term core fund
- Management Period: From June 30, 2025, for five years (planned)
- Total Asset Size: Approximately 15 billion yen
- Investment Targets: Childcare centers, housing, shared offices, hotels (11 properties total)
- Asset Managers: Profits Inc., A.P. Asset Management

About Profits Inc.

Profits Inc. is dedicated to creating and managing unique investment opportunities primarily in the Tokyo metropolitan area, focusing on offices, residences, hotels, and more. The company also provides advisory services for non-real estate firms and individuals, supporting social branding through investments and Community Real Estate (CRE). Notably, Profits has initiated Japan's first childcare-specific fund and emphasizes value-added investments, particularly in areas classified as Social within ESG. The company serves as a trusted partner for institutional investors, large corporations, and asset management companies, currently managing approximately 108 billion yen in assets under management (AUM) as of June 2025.

- Representative: Shinichiro Tanaka, President
- Location: 3-3-1 Marunouchi, Chiyoda, Tokyo, 9th Floor, Shinjuku Tokyo Building
- Website: https://profitz.jp/

Contact Information

Profits Inc., Public Relations
Email: [email protected]

With the launch of the QOL Fund, Profits Inc. is not just expanding its investment reach; it’s redefining the role of investment in constructing a more sustainable and enriched future for society.