Shareholder activism in the UK has expanded significantly, with campaigns becoming more frequent and sophisticated. In 2023, the number of new public activist campaigns in Europe surged by 68%, with the UK remaining a primary target.
US-based activist investors have also increased their focus on UK firms, launching 40% of all UK activist campaigns in 2024. US activist hedge fund Saba Capital has been one of the most high profile of these, with its ongoing raid in the UK investment trusts market.
The number of campaigns is on the rise on both sides of the Atlantic – data from Barclays shows that there were 160 activist campaigns against the boards of US listed stocks in 2024. Of these, a quarter were from ‘first timers’. The total number of campaigns is still not at the record levels seen on Wall Street in 2018, but we’re getting there.
Activism is a highly profitable strategy
The increased incidence of activist campaigns by US hedge funds targeting UK companies can be seen in this context. The strategy can be a profitable one, with several high profile US hedge funds delivering returns in excess of 30% in 2024.
With contested boardroom battles and regulatory shifts on the rise, law firm Forward Global has expanded its practice into the UK. It wants to equip issuers with the intelligence and strategies needed to navigate this evolving landscape.
Speaking ahead of the launch in London last week, Brendan Foo, Partner and Global Head of Corporate Contests at Forward Global, said:
“As activism gains currency as an asset class, savvy investors are looking toward the UK and Europe to generate alpha. Indeed, in 2025 alone, we have seen an unprecedented demand for our services not just in our traditional strongholds of the US and Canada, but also in the UK and Europe. This reflects the surge in activist (and active) engagements, with which our team is uniquely well-placed to assist.”
Forward Global’s Corporate Contests Practice was established to meet demand from law firms, investors, and advisers to provide a comprehensive suite of services to support companies in high-stakes shareholder engagements.
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The UK is regarded as one of the friendlier jurisdictions for US funds conducting activist campaigns. Many companies and investment trusts are trading at deep discounts still, in the wake of Brexit, providing opportunities for hedge funds to build positions in stocks quickly and cheaply. The aforementioned Saba Capital campaign has been illustrative of just what one hedge fund can manage on its own across the investment trust sector.
Forward Global’s new London presence
In keeping with the firm’s established activism practice in the US, the new London offering will deliver investigative and intelligence work such as vetting board nominees, relationship mapping, scrutinizing the track records of both incumbents and challengers, and conducting deep-dive reputation analyses.
The firm launched the new practice at an exclusive gathering at the International Institute of Strategic Studies in London, bringing together leading voices from the shareholder activism space to discuss the evolving landscape of transatlantic shareholder activism.
The panel discussion, featuring Brendan Foo, Patrick J. McHugh of Okapi Partners, and Sebastian Fain of Freshfields, explored critical considerations for US investors entering the UK market and vice versa, differences in engagement styles across jurisdictions, and strategies for issuers to proactively engage with both activist and active investors.
Panelists also examined the impact of anti-DEI and ESG sentiment on investor relations in the UK, as well as how issuers can adapt to evolving regulatory and institutional expectations.
