Feb 20 (Reuters) - Pleasant Lake Partners disclosed a roughly 10% stake in toymaker Funko FNKO.O and said the company should consider strategic alternatives, including the possibility of a sale, according to a regulatory filing from Thursday.

The New York-based hedge fund said it will engage with Funko's board and management on ways to boost shareholder value, advocating for an immediate and thorough exploration of alternatives for both strategic and financial acquirers.

Shares of Funko, which cratered nearly 75% last year, were up about 4% in premarket trade. It had a market capitalization of about $245 million as of Thursday's close.

Funko did not immediately respond to a Reuters request for comment.

The toy company, known for its pop culture collectibles, including vinyl figurines and bobbleheads, has been struggling with pressured toy demand, and has reported a revenue decline for the past two years.

In the filing, Fund 1, an investment firm that serves as a managing member of Pleasant Lake, disclosed ownership of about 5.5 million shares of Funko.

Pleasant Lake disclosed in the filing that it was prepared to participate in the sale process and pointed to its track record with take-private transactions, including L'Occitane in 2024 and Tile Shop Holdings in December.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)

((Neil.JKanatt@thomsonreuters.com))