However, a settlement with the Securities and Exchange Commission by Fenway and four of its executives may raise hopes for the firm’s efforts to reach a recapitalization deal for the two funds, now that the regulator’s actions are clear. The discontinued talks with Fortress marked the latest turn in the firm’s attempt to restructure the private equity funds, Fenway Partners Capital Fund II LP, launched in 1998, and Fenway Partners Capital Fund III LP, formed in 2006. If successful, a recapitalization deal could give the remaining portfolio companies in the Fenway funds a new lease of life and fresh capital...