A sovereign wealth fund from Abu Dhabi has acquired a minority stake in Sotheby’s as the auction house secures new investment totalling $1 billion.
ADQ has bought the stake at the same time as the luxury auction business receives new funding from Patrick Drahi, the telecoms billionaire who is its owner, with the deal expected to be completed by the end of the year.
The Abu Dhabi fund has holdings in 25 companies, including Etihad Airways, Louis Dreyfus and Wizz Air Abu Dhabi. The fund is chaired by Sheikh Tahnoun bin Zayed al-Nahyan, who is the national security adviser to the United Arab Emirates. ADQ has already announced this year that it plans to invest $35 billion in Egypt.
“We are delight to welcome ADQ as a shareholder to Sotheby’s,” Charles Stewart, the chief executive of the auctioneer, said. “We embrace their long-term vision of our business and this investment is a testament to what we have achieved so far, as well as to our significant potential for future growth.
“The additional capital and investment expertise will enable us to accelerate our strategic initiatives, expand our commitment to excellence in the art and luxury markets and continue to innovate to better serve our clients around the world.”
Drahi, 60, bought Sotheby’s five years ago in a deal that valued the business at $3.7 billion and he is said to have been reluctant to accept outside investment in the past.
The art market has contracted in recent years, with global sales falling by 4 per cent in 2023, according to an analysis from Art Basel and UBS.
Hamad al-Hammadi, deputy group chief executive of ADQ, said the fund “remains committed to exploring compelling investment opportunities that drive value for Abu Dhabi. Our investment underscores our firm belief in the enduring value of Sotheby’s brand, market-leading platform and the ability of its management to execute on their growth agenda. We look forward to creating new collaboration opportunities with Sotheby’s and being a part of its journey.”