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Abraham Opens Consulting Firm; Eyes Energy Hedge Fund, The Energy Daily

10/21/05

Former Energy Secretary Spencer Abraham and several of his former Energy Department aides Thursday announced the formation of The Abraham Group LLC, a consulting firm that will focus on the international energy sector and also possibly open an "energy-dominant" hedge fund.

"The energy business is first and foremost a global market," Abraham said. "Our aim is to help our clients enter and operate in the international energy market, whether it is a energy company doing business in the Middle East or a foreign energy company seeking to enter the U.S. market."

In an interview, Abraham said his firm also would be working closely with investor groups looking at opportunities in the fast-growing energy sector. In that regard, he said his company would soon announce alliances with a law firm and an investment bank, and that discussions were under way with unspecified parties on the potential development of a hedge fund that would lean toward energy investments.

"There is the possibility of putting together an energy-dominant hedge fund," he said. "There is a recognition among many investors that energy is going to be a growth sector for many years to come, providing an opportunity for strong return on investments."

Abraham also said he expected an accelerated pace for mergers and acquisitions in the electricity industry due to the repeal of the Public Utility Holding Company Act, and that his firm would be active in that arena.

A third area of focus for his firm, he said, would be helping to bring together developers of innovative energy technologies and large energy companies interested in finding solutions to key energy problems, ranging from enhanced efficiency to electricity reliability.

The firm's other principals are Joseph McMonigle, Abraham's former chief of staff at DOE, and Majida Mourad, former senior advisor at DOE working on international affairs.