ADQ, Abu Dhabi’s sovereign wealth fund, has signed a definitive agreement to acquire a minority interest in Sotheby’s, the auction house announced. Its owner, the telecom billionaire Patrick Drahi, will also invest additional capital into the business.

Together, both investments amount to $1 billion. The bulk of the investment will come from ADQ, a Sotheby’s spokesperson confirmed. The spokesperson added that ADQ’s investment is in shares of the company that are newly issued, and that Drahi remains a majority shareholder.

The auction house declined to comment beyond providing a written statement that reads in part, “The capital will be used to strengthen our balance sheet, augment our plans to expand our business and further enhance our client experience and offerings.” The release continues: “In addition to its financial investment, ADQ brings a dedication to operational excellence and long-term planning to guide significant growth objectives. Having such a strong investment partner that is from the Middle East is a further boost to our position in the region in particular, which represents one of the fastest growing markets for art and luxury.”

The announcement comes during a turbulent period in the auction market. Last year, Sotheby’s reported consolidated sales of $7.9 billion, a total that includes car and real estate auctions. The total was very slightly lower than the year before. More broadly, the art market has contracted, with global sales dropping 4 percent from 2022 to 2023, according to a joint report from Art Basel and UBS Group AG.

The transaction is expected to close by the end of the year.

By James Tarmy

Learn more:

Fashion’s Future at Auction Houses

Traditional auction houses like Christie’s, Sotheby’s and Philips — known for selling Warhols, Picassos and antiques — are using Birkins and Jordans to cultivate their next generation of collectors.