Activist investors had busiest quarter ever, launching 61 campaigns

Global activist investor campaigns surged to a record high in Q3 with 61 new campaigns, contributing to 191 year-to-date and positioning 2025 as potentially the busiest year ever for activism. This intensified pressure, driven by a 90% quarter-over-quarter increase in the U.S., has resulted in activists winning 98 board seats and contributing to 25 CEO resignations. The trend reflects growing demands for operational changes, strategic reviews, and M&A across targeted companies, signaling sustained corporate governance challenges and significant strategic shifts are likely to continue.

Analysis

Activist investor campaigns reached a record high in the third quarter, with 61 new campaigns launched globally, according to new data from Barclays. This marks a significant acceleration, driven by a 90% quarter-over-quarter increase in the United States, and brings the year-to-date total to 191 campaigns. The current pace suggests 2025 is on track to surpass the 2018 record of 249 campaigns. This heightened pressure is yielding substantial results for activists, who have won 98 board seats year-to-date, a 17% increase from the prior year, and have been a factor in 25 CEO resignations, approaching last year's record of 27. High-profile examples include Elliott Investment Management targeting PepsiCo and Ancora Holdings successfully pressuring CSX, which led to a CEO replacement. In response, some companies are making pre-emptive strategic moves, such as Kenvue replacing its CEO and Norfolk Southern agreeing to an acquisition. While demands for M&A are a key objective, they are currently trending below their four-year average, which may be attributable to a recent stall in M&A markets that are only now beginning to revive.

Key Decisions for Investors

• Given the record surge in activism, investors should screen portfolios for companies vulnerable to activist campaigns, as these names are likely to experience significant event-driven volatility and potential strategic shifts.
• The high success rate of activists in winning board seats and forcing management changes, as seen at CSX and Kenvue, underscores the need to evaluate the governance quality of holdings, as perceived weakness can be a catalyst for activist intervention.
• With M&A demands being a key activist objective and markets reviving, investors should closely monitor targeted companies like PepsiCo and Performance Food Group for potential catalysts related to strategic reviews, divestitures, or outright acquisitions.
• The trend of pre-emptive corporate actions to forestall board fights suggests that even the threat of activism can unlock value, warranting attention on underperforming companies in sectors attracting activist interest.