Abu Dhabi’s ADQ to Take Minority Stake in Sotheby’s for $1B

Adding to its luxury investments this year, Abu Dhabi-based sovereign wealth fund ADQ has agreed to acquire an undisclosed minority stake in luxury auction house Sotheby’s in a deal worth $1 billion.

Under the terms of the agreement, ADQ will acquire newly issued shares of Sotheby’s with the aim of reducing the company’s leverage and backing its growth strategy. Billionaire investor Patrick Drahi, who acquired Sotheby’s in 2019, is also investing additional capital with ADQ and will remain the majority owner of Sotheby’s.

According to ADQ, the investment will support Sotheby’s growth agenda while accelerating its expansion into new markets. The institutional investor also indicated that the acquisition is part of its strategic plan to boost its arts and culture offerings domestically and to increase its presence in the Middle East.

“ADQ remains committed to exploring compelling investment opportunities that drive value for Abu Dhabi,” said ADQ Deputy Group CEO Hamad Al Hammadi in a statement. “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.”

The agreement, expected to close before the end of 2024, adds to ADQ’s luxury goods investments this year. In January, ADQ and Abu Dhabi-based conglomerate ADNEC Group signed agreements for the strategic acquisition of a 40.5% stake in Egypt-based Talaat Moustafa Group Holding’s hospitality arm, Icon Group, including a capital increase. That deal will result in ADQ owning a 49% stake in Icon Group, with ADNEC owning the remaining 51%. The transaction will also involve the acquisition of a stake in seven luxury hotels in Egypt, currently owned by the Egyptian government through Icon.

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