Disruption In The Proxy Solicitation Space: League Tables Tell Part Of The Tale – But Many Big Firms Seem To Be “Remaking Themselves” Or “Lost In A Sea Of Rivals” These Days

One-time upstart Okapi Partners has been ranked as the number-one activist proxy solicitor, both in the U.S. and globally in 2022 - for the fourth year in a row - in Bloomberg’s Global Activism Market Review, below.

We hasten to point out, as we always do, that the “activist” statistics do not include the many threatened actions that get resolved behind the scenes, where long-term stalwarts MacKenzie Partners and Innisfree M&A still hold a lot of sway - as Okapi does too in this space. But contested deals are where the big money is, where clients do extra due diligence - and where advisors really “show their stuff.”

But 2022 also saw a major falloff in “deals” of all types - that left many other players - including many of the formerly “best-known names” - rather badly in the lurch. And 2023 is not looking much better for many of the 15 or more Proxy Solicitors and Advisors that are out there vying for deals – and money.

Our own revenue stream has taken a big hit in this environment – as many of our once most faithful advertisers have dropped off our list – and out of our Directory of Pre-Vetted Suppliers altogether - which to us, biased as we may be in favor of advertising, and of maintaining a strong “share-of-mind” – especially in crowded spaces – is akin to committing commercial suicide.

Some will come back, for sure. Two of the bigger firms seem to be trying to digest and rationalize a spate of recent acquisitions and geographic expansions, which almost always seem to boom before big lulls. Another seems to be looking to re-invent its business model altogether before ‘re-marketing.” And, as always in tough times, there are and will be new entries. And - ouch for the sluggish big guys - smaller firms will get larger at the expense of the weakest marketers.

In this unsettled market, issuers would be very wise to renew relationships and/or shop for providers with special care. Check our tips for kicking the tires on internal control systems, although our top tip is still to bet the best jockeys before plunking money down.