In a powerful demonstration of shareholder influence, activist investing reached unprecedented levels in 2025, setting the stage for an even busier year for corporate deals and boardroom battles. A new report from Barclays Bank reveals that activist hedge funds launched a record number of campaigns globally, capitalising on market volatility and a regulatory environment favourable to mergers and acquisitions.
A Record Year for Shareholder Activism
According to the review released by Barclays, the number of activist campaigns worldwide climbed to a historic high of 255 in 2025. This marked an increase of approximately 5% from the previous year. The activity was particularly intense in the United States, where campaigns surged by 23% to reach 141. This trend underscores a significant shift as investors, frustrated by the difficulty of outperforming tech-heavy indices and passive funds, increasingly turn to activist strategies to unlock value.
Jim Rossman, head of Barclays' shareholder advisory group and author of the report, stated that 2025 provided a perfect setup for activists. "Just about everything worked in their favour in 2025," Rossman said. He pointed out that early-year worries over tariffs from President Donald Trump's administration depressed stock valuations, creating attractive entry points for funds with activist agendas. As the year unfolded, the administration's open stance towards corporate mergers further emboldened these investors to push for transformative deals.
Mergers and Acquisitions Take Centre Stage
The Barclays analysis highlights a sharp acceleration in campaigns centred on mergers and acquisitions (M&A). In the first half of 2025, initiatives demanding some form of M&A accounted for 35% of all activist demands. This figure jumped dramatically to 54% in the second half. The fourth quarter saw a peak, with 61% of campaigns promoting an M&A thesis, the highest level recorded in five years.
Veteran funds like Elliott Investment Management and Starboard Value were at the forefront of this activity. Elliott, the most active player, deployed a staggering $19 billion across 18 new campaigns. Starboard Value followed as a distant second, investing $2 billion in 11 initiatives. Notably, nearly 30% of the 142 unique activist firms waging campaigns last year were first-timers, indicating a broadening of the activist landscape.
High-profile examples abound. In September, Elliott launched a campaign urging food and beverage giant PepsiCo to pursue divestitures and operational improvements. Following Elliott's November push for a breakup, mining major Barrick Gold announced it would consider an initial public offering for its North American gold assets. Similarly, Starboard's October agitation for engineering firm Fluor to sell its stake in NuScale Power led to Fluor's November commitment to monetise those holdings this year.
New Alliances and the 2026 Outlook
A key development in 2025 was the increasing collaboration between activist investors and private equity firms or traditional fund managers. This powerful combination proved highly effective. For instance, after Corvex Management took a 4.9% stake in recruiter Heidrick & Struggles, the company agreed to an October buyout by Corvex's private equity arm and Advent International. In another case, a campaign by Trian Partners preceded mutual fund manager Janus Henderson agreeing to a buyout by General Catalyst in December.
Looking ahead to 2026, Barclays anticipates the surge in activist-driven deals will continue, fueled by a race against the political calendar. The bank's analysts believe activists and acquirers will be highly motivated to finalise transactions before the US congressional midterm elections, which could potentially weaken the Trump administration's current laissez-faire approach to M&A.
"There are going to be a lot of opportunities for companies to go private, make dispositions and spinoffs," Rossman predicted. "Activists are going to point the way." For investors and corporate boards alike, the message is clear: shareholder activism is not just a niche strategy but a dominant market force shaping the future of corporate India and the global economy.
