Published Fri, Feb 20, 2026 · 11:49 AM
[NEW YORK] Hedge fund Pleasant Lake Partners disclosed it’s an investor in toymaker Funko, and is pushing the company to launch a formal sale process that it said it could participate in.
Pleasant Lake said in a filing on Thursday (Feb 19) that it accumulated a stake based on a view that Funko’s shares are undervalued and represent an attractive investment opportunity.
The hedge fund said that it plans to engage with Funko’s board and management on operational and strategic initiatives to enhance shareholder value, arguing that the best path forward is “the immediate commencement of a robust and comprehensive strategic alternatives process” actively marketed to potential buyers.
Pleasant Lake is prepared to participate in any such process and has pointed to its track record investing in take-private transactions, including L’Occitane in 2024 and Tile Shop Holdings in December.
Funko known for collectible figurines and bobble heads tied to popular franchises such as Power Rangers, has struggled following a pandemic-era demand surge, with revenue declining for two consecutive years and expected to fall again in 2025.
The company’s shares have fallen 67 per cent in the past year, giving Funko a market value of US$245 million.
A representative for Funko did not immediately respond to a request for comment.
The filing leaves open the possibility of further actions by Pleasant Lake, including discussions with shareholders and third parties about potential transactions involving Funko, as well as proposals related to governance, ownership structure or operational improvements. BLOOMBERG
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