ADQ to Acquire Minority Stake in Sotheby’s, Boosting Global Presence in Arts and Luxury Sectors
In a strategic move, Abu Dhabi’s wealth fund ADQ is set to acquire a minority stake in Sotheby’s, demonstrating its commitment to expanding its global footprint in the arts and luxury markets.
The Abu Dhabi-based investment firm has officially signed a definitive agreement with Sotheby’s, a renowned leader in the fine art and luxury industries.
Patrick Drahi, the majority owner of Sotheby’s since 2019, will be investing additional capital alongside ADQ, with the total investment reaching approximately $1 billion.
ADQ’s investment in Sotheby’s aligns with its strategic objective of seeking value-accretive investment opportunities that contribute to Abu Dhabi’s economic diversification efforts.
As a key partner of Abu Dhabi’s government, ADQ plays a crucial role in supporting the Emirate’s transition to a competitive, knowledge-based economy.
Supporting Sotheby’s Growth Agenda and Expansion into New Markets
The partnership with ADQ will enable Sotheby’s to pursue its ambitious growth plans and venture into new markets, including strengthening its presence in the Middle East as Abu Dhabi continues to enhance its arts and culture sector.
Hamad Al-Hammadi, deputy group chief executive officer of ADQ, expressed the firm’s commitment to exploring compelling investment opportunities that drive value for Abu Dhabi. He highlighted the enduring value of Sotheby’s brand and the capabilities of its management team to execute on their growth strategy.
Under the agreement, ADQ will acquire newly issued shares of Sotheby’s to help reduce the company’s leverage and support its innovation and expansion initiatives.
CEO of Sotheby’s Welcomes ADQ as Shareholder
Charles F. Stewart, CEO of Sotheby’s, welcomed ADQ as a shareholder, emphasizing their long-term vision for the business. The investment reflects the achievements of Sotheby’s thus far and its potential for future growth, with the additional capital and expertise set to accelerate strategic initiatives.
The investment agreement is subject to customary approvals and is anticipated to be finalized by the end of the year.
Established in 1744, Sotheby’s plays a vital role in providing access to and ownership of art and luxury items through auctions, private sales, e-commerce, and retail channels.