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Barclays data indicates that in 2025, activists will run a record number of campaigns.

Barclays data indicates that in 2025, activists will run a record number of campaigns.
Barclays data indicates that in 2025, activists will run a record number of campaigns.

According to Barclays, activist investors who want companies to improve their performance launched a record-breaking number of campaigns in 2025. Market volatility, favorable financing terms, and increased deal activity created the ideal environment for lobbying for change.

Blue-chip activists including Elliott Investment Management and a large number of newcomers launched attacks in 2025 on global companies, urging them to improve operations, replace board members, or even sell themselves. Activists attacked well-known brands like athleisure brand Lululemon Athletica and ride-hailing service Lyft. PepsiCo, the maker of soda and snacks, and Yeti, a cooler and drinkware manufacturer, were also targeted.

The data revealed that the number of attacks in 2018 was up nearly 5% over 2024. It also surpassed the previous record set in 2018.

Jim Rossman is the global head of shareholder advice at Barclays. He said, "We went from a period of maximum uncertainty to a rebound in M&A and private equity markets in the second half." It was an excellent time to use the activists' toolkit.

Barclays data show that 141 campaigns were conducted in the United States. This represents a 23% increase from the previous campaign.

The data also showed that Asian companies attracted the attention of activists, with a record number of 56 campaigns in Japan. Barclays reported that this accounted for half of all global activity outside the United States.

Barclays data revealed that Elliott was the most active activist investor. It launched 18 campaigns in 2012, and spent nearly $20 billion of capital. The hedge fund has taken on Lululemon in the fourth quarter, urging management to consider hiring a former Ralph Lauren executive for the position of CEO. It also took on Barrick Mining by urging it to consider breaking up the company. Elliott has won 17 board positions in the past year. This includes two seats at Phillips 66 where investors voted for candidates that Elliott had proposed.

Activist investors, formerly called corporate raiders and derided, have gained a new level of acceptance among corporate management. Their returns are improving, and they're working with boards to boost the share price of a company.

Barclays' data also showed that the patience of corporate activists with chief executives could quickly run out. In the year following an activist campaign, 32 CEOs quit in a record number. In 2024, there will be 27 CEOs who resign, up from the 24 that left in 2023 due to activist pressure.

Rossman, Barclays' Rossman, said: "If executives do not perform well, they will be fired." (Reporting and editing by Matthew Lewis in New York, Svea Herbst Bayliss)

(source: Reuters)