ABN Amro Private Bank has signalled the return of private client appetite for hedge funds by raising €110m to invest in its new venture with Lyxor, the hedge fund unit of Société Générale. The private bank says it eventually plans to invest at least 5% of its €150bn overall assets in hedge funds.

The move represents a dramatic turnaround for private banks, which have been slow to return to hedge funds after suffering losses during the financial crisis.