EMERGING and Promethean Investments have launched The Experience Fund (XPR) with an initial $300 million, targeting AI, IP, and automation platforms in the hospitality and experiential entertainment sectors. The fund has a hard cap of $500 million and is co-sponsored equally by both firms.
TL;DR
- EMERGING and Promethean Investments launch $300M fund for hospitality AI and automation.
- Fund leverages Buyers Edge Platform's extensive network for immediate market access.
- Initial investments include State of Play and TAiV, with a focus on scaling AI in hospitality.
What happened
On August 14, 2026, EMERGING and Promethean Investments launched The Experience Fund (XPR) with $300 million, aiming to invest in AI, IP holdings, and automation platforms for hospitality and experiential entertainment. The fund has a hard cap of $500 million and is co-sponsored 50/50 by both firms, led by EMERGING Managing Partner Mathew Focht and Promethean Managing Partner Michael Burt.
XPR targets the 'intelligence layer' of the experience economy, focusing on AI, automation, and data infrastructure that supports consumer-facing brands. This includes order and beverage automation, computer vision, autonomous service, labor and supply-chain intelligence, and gaming intellectual property.
The fund benefits from a six-year working relationship between EMERGING and Promethean, combining EMERGING's origination and operating engine with Promethean's institutional private equity investing experience. EMERGING, founded by Focht and headquartered in Chicago, focuses on AI and technology for hospitality and competitive social entertainment, while Promethean is a U.S.- and U.K.-based private equity firm with over 20 years in consumer, retail, and services businesses.
Why it matters
XPR's unique edge is its 'distribution before diligence' approach, leveraging Buyers Edge Platform, the industry's largest food and beverage platform, to provide immediate market access to portfolio companies. This network includes nearly one in three U.S. restaurants, offering a significant advantage for scaling AI technologies in the hospitality sector.
The hospitality industry, being the second-largest private-sector employer in the U.S. with roughly 15.7 million jobs, presents a massive market opportunity. The sector's high turnover rates, single-digit margins, and heavy reliance on manual processes make it ripe for AI-driven automation and efficiency improvements.
The fund arrives with anchor assets already in place, including State of Play and TAiV. State of Play, an experiential hospitality venue operator, has an identified investment value of roughly $35 million against $72 million in trailing-twelve-month revenue. TAiV, a venue-media and hospitality technology layer, operates across 4,053 live locations with a 77 percent gross profit margin and is EBITDA positive.
Key facts
- The Experience Fund (XPR) has an initial $300 million with a hard cap of $500 million.
- Co-sponsored 50/50 by EMERGING and Promethean Investments.
- Led by EMERGING Managing Partner Mathew Focht and Promethean Managing Partner Michael Burt.
- Targets AI, IP holdings, and automation platforms for hospitality and experiential entertainment.
- Leverages Buyers Edge Platform's network of 324,000-plus operator locations for immediate market access.
- Initial investments include State of Play and TAiV.
- State of Play has an identified investment value of roughly $35 million against $72 million in trailing-twelve-month revenue.
- TAiV operates across 4,053 live locations with a 77 percent gross profit margin and is EBITDA positive.
Context
The launch of XPR formalizes a six-year working relationship between EMERGING and Promethean, combining their strengths in origination, operating, and institutional private equity investing. This collaboration aims to capitalize on the growing demand for AI-driven solutions in the hospitality and experiential entertainment sectors.
The hospitality industry's fragmented nature and thin tech budgets have historically complicated the adoption of AI technologies. XPR's focus on the 'intelligence layer' of the experience economy addresses these challenges by providing scalable AI platforms that can integrate seamlessly with existing operations.
With anchor assets already in place and a robust network for market access, XPR is well-positioned to drive significant growth in the hospitality AI sector. The fund's strategic investments in State of Play and TAiV demonstrate its commitment to scaling AI technologies that enhance operational efficiency and customer experience.