ADQ, a sovereign wealth fund based in Abu Dhabi, acquired a minority stake in auction house Sotheby’s. ADQ’s acquisition will be followed by an additional infusion of capital from Sotheby’s majority owner Patrick Drahi, bringing the total value of the investment to $1 billion.
The deal will see ADQ, Abu Dhabi’s third larger sovereign fund, expand its portfolio, which already includes investments in energy, healthcare, and retail, among other industries. The acquisition of a minority stake in Sotheby’s represents the fund’s first venture into culture.
“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,” ADQ’s deputy group CEO Hamad Al Hammadi said in a press release.
Sotheby’s, on the other hand, will boost its profile in the Middle East, which represents a growing market for luxury jewelry and fine arts, the auction house’s forte. The deal will also provide a boost for its finances and fast-track its expansion with new physical locations.
“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,” Sotheby’s CEO Charles Stewart added.