In 2025, activist investors are no longer just Wall Street legends—they’re a powerful force in Australia, shaking up ASX-listed companies and transforming corporate priorities. With the landscape of shareholder rights and corporate governance evolving, Australian investors and executives alike are watching activist campaigns with renewed attention. But what exactly are activist investors, and why are they making headlines this year?
What Is an Activist Investor?
An activist investor is typically an individual or investment fund that acquires a significant stake in a public company with the intention of influencing its management and strategic direction. Unlike passive investors, activists actively campaign for changes—ranging from boardroom shake-ups to environmental commitments or improved returns for shareholders. Their goal? Unlock hidden value or address issues they believe management is ignoring.
Globally, names like Elliott Management and TCI are synonymous with high-profile activist campaigns, but Australian markets are seeing their own surge, with local and international funds targeting sectors from banking to resources to retail.
2025 Trends: Why Activism Is Surging in Australia
Several factors have ignited a new wave of activism in Australia in 2025:
- Regulatory changes: The Australian Securities and Investments Commission (ASIC) has streamlined shareholder proposal rules, making it easier for investors to put forward resolutions and challenge boards.
- ESG momentum: Environmental, Social, and Governance (ESG) issues are now front and centre. Activists are pushing for ambitious climate targets, gender diversity, and ethical supply chains. Companies ignoring these calls are facing mounting pressure from both local funds and global players.
- Underperformance and undervaluation: With some Australian companies trading below book value or lagging in returns, activists are seizing opportunities to advocate for asset sales, mergers, or strategic overhauls.
- Shareholder engagement technology: Digital platforms make it easier than ever for activists to rally support, communicate with other investors, and organise campaigns.
Notably, 2025 has already seen campaigns targeting major mining companies over emissions policies, banks over lending standards, and several tech companies over board diversity.
How Activist Campaigns Unfold: Real-World Examples
Activist investing isn’t just about sending angry letters. Here’s how a typical campaign plays out in Australia:
- Stakebuilding: The activist quietly accumulates shares, often just below the 5% disclosure threshold.
- Engagement: Initial private meetings with the board or management, presenting concerns and proposed changes.
- Going public: If progress stalls, the activist may launch a public campaign—issuing press releases, speaking at AGMs, or creating dedicated websites.
- Voting & resolutions: Submitting resolutions for shareholder votes, or seeking to replace board members at the next AGM.
- Negotiation or escalation: Sometimes, the company negotiates to avoid a public battle. Other times, it becomes a media spectacle, with proxy advisers and institutional investors weighing in.
Example: In early 2025, a major Australian superannuation fund led an activist push at a top-50 ASX-listed company, demanding greater climate disclosure and the appointment of independent directors with sustainability experience. After months of negotiations and a high-profile media campaign, two new board members were elected with broad shareholder support.
What Does This Mean for Investors and Companies?
For everyday investors, activism can unlock value and drive positive change—but it also introduces volatility and uncertainty. For company boards, it’s a wake-up call: governance and communication strategies must be robust, and ignoring shareholder concerns is riskier than ever.
Key impacts of activism in 2025 include:
- Faster corporate reform: Boards are proactively improving transparency, remuneration policies, and ESG reporting to pre-empt activist challenges.
- Shareholder empowerment: Individual and institutional investors alike have greater say in company direction, with tools to organise and vote more efficiently than ever.
- Strategic risk: Not all activist campaigns succeed, and some may push for changes that conflict with long-term company vision. Due diligence is crucial before backing any campaign.
As regulatory reforms continue and ESG issues gain momentum, expect activist investors to remain a headline force in Australia’s corporate landscape throughout 2025 and beyond.
