Riskier Returns

Riskier Returns

Investment banks are putting their money into Latin America's bull market.When three hedge funds bought Enron's foreign assets for $2.1 billion in late May, the Wall Street banks financing $800 million in debt for the purchase were interested in more than just extending credit. They wanted in on financing the private equity deal as well. "There aren't many $2 billion-plus deals every week in Latin America, and with the type of assets that lenders can get comfortable with, there is much more interest in lending to the right investors," says Dirk Donath, managing director responsible for private equity and illiquid investments at US hedge fund Eton Park Capital. European banks ABN AM

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