Abu Dhabi's ADQ Invests $1 Billion in Sotheby’s with Legal Guidance from Sullivan & Cromwell

ADQ makes a major entry into the Middle Eastern art market when it acquires a $1 billion share in Sotheby's.

Sullivan & Cromwell has advised Abu Dhabi's sovereign wealth fund, ADQ, on legal matters regarding the purchase of a $1 billion minority interest in Sotheby's. In order to strengthen Sotheby's position in the Middle East and assist its growth into new markets, ADQ is buying recently issued shares of the auction house.

Owner of Sotheby's since 2019, Patrick Drahi, will continue to hold the majority of the company's shares in addition to making significant capital contributions alongside ADQ.

An important factor in the transaction was the involvement of the Sullivan & Cromwell team, which included partners from the US and UK offices. Advisors on the transaction were Davis J. Wang, Ari B. Blaut, Marion C. Leydier, Eric J. Kadel Jr., and RuiHui (Rachel) Yu from New York; London partners Ben Perry and Juan Rodriguez; and Los Angeles partners Alison S. Ressler and Rita-Anne O'Neill.

Sotheby’s was also advised by Hughes Hubbard & Reed, Mayer Brown, and Slaughter and May. Hughes Hubbard & Reed partners Michael Traube and Javad Husain led the advisory team on the definitive agreement. Mayer Brown, with partners Jason Bazar and Lucas Giardelli, provided counsel on tax and structuring, while Slaughter and May handled English law and global competition matters.

With this investment, Abu Dhabi is demonstrating its dedication to growing its cultural and artistic industry. The arrangement should be finalized before the end of the year, subject customary approvals.