Activist hedge fund Irenic Capital Management has quietly built a stake in Couchbase Inc, a US-listed enterprise software firm specialising in database technology, according to a report by Bloomberg citing unnamed sources familiar with the matter.

While the exact size of Irenic’s position remains undisclosed, the hedge fund is said to be engaging privately with Couchbase’s management team. Neither Irenic nor Couchbase provided public comment, and details of the fund’s strategic intentions are not yet known.

Couchbase shares, which have declined approximately 29% over the past 12 months, were trading slightly lower on Wednesday at $17.04, giving the company a market capitalisation of roughly $920m. The Nasdaq-listed company went public in 2021 and is backed by venture firms including Accel.

Irenic, co-founded by Andy Dodge and Adam Katz, a former executive at Elliott Management, has previously taken activist positions in companies such as News Corp and Barnes Group Inc, often pushing for corporate actions to unlock shareholder value.

The move by Irenic follows recent activity by Haveli Investments, a private equity firm led by former Vista Equity Partners president Brian Sheth, which currently holds approximately 9.6% of Couchbase’s shares. A regulatory filing in March suggested that Haveli may explore strategic options with the company, including a potential merger or acquisition.

Couchbase, based in Santa Clara, California, competes with other modern database providers like MongoDB and Cockroach Labs, aiming to disrupt legacy players such as Oracle.