Citigroup has hired David Potts from Barclays to lead its shareholder activism defence practice in Europe, according to sources familiar with the matter. Potts, a seasoned investment banker with over two decades of experience, will join Citi as a managing director and head of the bank's European activism defence team.
Strengthening Advisory Capabilities
The move comes as banks ramp up their capabilities to advise clients on how to fend off activist investors, who have become increasingly aggressive in pushing for changes at companies. Potts spent 18 years at Barclays, most recently as head of the bank's European activism defence and contested situations team. He advised companies on various high-profile activist campaigns, including the successful defence of British engineering firm GKN against a hostile takeover bid from Melrose Industries in 2018.
At Citigroup, Potts will work closely with the bank's existing activism defence team in the United States and report to Paul Gibbs, head of the bank's European investment banking. The hiring underscores Citi's commitment to expanding its advisory services in Europe, particularly in the area of shareholder activism.
Growing Demand for Activism Defence
The demand for activism defence advice has grown significantly in recent years, as activist investors have targeted companies across sectors, pushing for strategic changes, cost cuts, or even breakups. According to data from Lazard, activist investors launched campaigns at a record 172 companies globally in the first half of 2023, up from 145 in the same period a year earlier.
Citigroup's move to strengthen its team in Europe positions it to capture a larger share of this lucrative advisory market. The bank has been building its investment banking franchise in Europe under the leadership of Gibbs, who took over as head of European investment banking in 2021.
Potts' appointment is effective immediately, and he will be based in London. A spokesperson for Citigroup confirmed the hire but declined to comment further. Barclays has not yet announced a replacement for Potts.
