Lone Star Is Set to Return $3.5 Billion to Investors in Weeks

Lone Star Funds is planning to return $3.5 billion to its investors in the coming weeks, according to people familiar with the matter, at a time when private equity firms face pressure to deliver cash.

The US buyout firm generated about $1.8 billion in cash from the $4.35 billion sale of specialty chemicals firm AOC to Nippon Paint Holdings Co. in March, the people said, asking not to be identified discussing confidential information. The exit provided more than three times return for Lone Star’s invested capital, the people said.