Abu Dhabi’s sovereign wealth fund, ADQ, has reached an agreement with Patrick Drahi, the French-Israeli telecoms tycoon and owner of Sotheby’s, to acquire a minority stake in the renowned auction house. Estimated at around $1 billion and expected to close by the end of the year, the transaction involves ADQ purchasing newly issued shares of Sotheby’s.
The investment will be used to reduce leverage and support Sotheby’s growth plans. Drahi, who took Sotheby’s private in 2019 in a leveraged deal, will also invest additional capital alongside ADQ, maintaining his majority ownership.
The capital infusion is expected to help ease the debt burden on Drahi, who financed Sotheby’s purchase largely through debt and has been selling assets as financial pressures mount. In June, S&P Global Ratings downgraded Sotheby’s credit rating to B-minus, citing a decline in revenue of 22 percent in the first quarter as sales shrunk and increase in costs, indicating a “negative outlook.”
Sotheby’s CEO, Charles Stewart, stated that the additional capital and investment from ADQ would support the company’s expansion in the art and luxury markets and accelerate innovation to better serve clients worldwide.
ADQ, chaired by Sheikh Tahnoon bin Zayed al-Nahyan, has been active in international investments, including a $35 billion commitment to Egypt earlier this year. The move marks its first significant venture into cultural investments, having previously focused on sectors such as energy, food, healthcare, and financial services.
ADQ’s involvement supports Abu Dhabi’s broader cultural goals, including developing art institutions on Saadiyat Island, which houses the Louvre Abu Dhabi and the upcoming Guggenheim Abu Dhabi. While art sales and fairs are mainly concentrated in Dubai, ADQ’s Deputy Group CEO, Hamad Al Hammadi, hopes the investment will bolster Sotheby’s presence in the Middle East. A source close to the fund suggests this deal might pave the way for a Sotheby’s branch in Abu Dhabi.
