Abu Dhabi is stepping into the auction world. The city’s sovereign wealth fund, ADQ, has just inked a deal to acquire a minority stake in Sotheby’s. Patrick Drahi, the telecom billionaire who had bought the auction house for INR 22670 crore ($2.7 billion) in 2019, will also be investing more of his own money into the business. Combined, these investments add up to INR 8396 crore ($1 billion).
Deputy Group Chief Executive Officer of ADQ, Hamad Al Hammadi said in a press release, “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.”
This partnership is yet another hint that Sotheby’s has big plans on the horizon. Just this past June, the auction house revealed it is moving its Paris headquarters to 83 Rue du Faubourg Saint-Honoré, just a few blocks from where they are now. The move, set for mid-October, is part of a broader push for growth and expansion.
Sotheby’s has been busy on the relocation front. Just last month, they unveiled a 24,000-square-foot flagship in Hong Kong’s central business district. And they are not stopping there—next year, they are set to move their New York exhibition space to the Marcel Breuer building on Madison Avenue, previously home to the Whitney Museum of American Art. This move comes after they sealed the seal for the space at INR 839 crore ($100 million).
“We are delighted to welcome ADQ as a shareholder to Sotheby’s…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,” stated Charles F. Stewart, CEO at Sotheby’s in the official statement.
This announcement comes at a time when the auction market is feeling the pinch. Last year, Sotheby’s consolidated sales were INR 663276 crore ($7.9 billion), which includes everything from cars to real estate. That figure was just slightly lower than the previous year’s total. However, the bigger picture isn’t much bigger—the global art market has shrunk, with sales dropping by 4% between 2022 and 2023, according to a report by Art Basel and UBS Group AG.
In June, S&P Global Ratings lowered Sotheby’s credit rating from a B to a B-. This downgrade came on the heels of a tough first quarter, where the auction house saw a 22% drop in revenue, along with increased exhibition costs and job cuts. If things don’t turn around this year, their rating could take an even bigger hit.
