Identifying the Type of Private Equity Fund for Restructuring

Private equity (PE) investments are a significant component of alternative investment strategies and differ greatly from traditional investments such as stocks and bonds. These investments typically involve pooled funds that are not traded on public exchanges, focusing on acquiring ownership stakes in private companies or acquiring public companies to delist them. A fundamental understanding of different types of private equity funds is crucial for any aspiring investment professional.

This question seeks to evaluate your knowledge of various private equity fund structures and their investment strategies.

Which of the following types of private equity funds is specifically designed to invest in established firms that require restructuring and operational improvements to enhance profit margins?