ValueAct increases stake in Kravis’ KKR

ValueAct just cozied up closer to buyout baron Henry Kravis.

A $16 billion hedge fund run by Jeffrey Ubben, ValueAct has increased its stake in the Kravis-run KKR to 6.1 percent, according to a regulatory filing late Monday.

Although ValueAct and KKR are both known for rattling the cages of the companies they invest in — KKR’s tenacity, of course, was immortalized in the 1989 book “Barbarians at the Gate” — this engagement so far appears friendly.

ValueAct revealed that it has had conversations with KKR’s leadership team and intends to have more discussions in the future, according to the filing.

And there appears to be no shortage of things the San Francisco fund would like to discuss with Kravis and pals.

Potential topics listed in the filing include overall business strategy, executive compensation, corporate governance and dividend policy.

KKR’s dividend policy could be a “hang-up” for some investors, Robert Lee, analyst with Keefe Bruyette & Woods, told The Post.

Just two years ago, KKR moved to a fixed dividend policy so that a greater portion of profits could be reinvested in the business, meaning less immediate cash for investors.

ValueAct announced its initial investment in KKR at a hedge fund conference in April. Once an investor amasses more than 5 percent of outstanding shares, it must file with the Securities and Exchange Commission.

KKR is “one of the oldest and most storied [leveraged buyout] firms that has operated through market cycles [and] has built up a tremendous brand,” ValueAct chief investment officer Mason Morfit said in April.

The PE firm’s future is “quite bright” and its stock could trade as high as $37 a share, Morfit said at the time. KKR shares ended the day up 2.7 percent at $18.64 and are up 21.1 percent for the year.

Reps from ValueAct and KKR declined to comment.