California gubernatorial candidate Tom Steyer faces mounting scrutiny after financial disclosures revealed his continued investment in a hedge fund financing coal operations worldwide, despite his public climate activism and claims he walked away from the investment industry to fight global warming.
Millions Still Tied to Coal-Backing Fund
Financial records show Steyer maintains a $34.7 million stake in Farallon Capital, one of America’s largest hedge funds, which has increasingly financed coal projects as major banks retreated under environmental pressure. The firm has provided loans to coal producers in Australia and funded mining infrastructure. During his failed 2020 presidential campaign, Steyer’s holdings in Farallon were valued at $110 million. Climate advocate Will Van De Pol told reporters that Farallon has bailed out coal mining companies and enabled coal expansion, demanding heavy scrutiny of anyone connected to the fund’s investment decisions who claims climate commitment.
Steyer’s campaign insists he remains only a passive investor, with Farallon employees screening fossil fuel holdings from his portfolio. The campaign claims he no longer earns profit shares from the fund. His supporters argue the billionaire has atoned for past investments by pouring resources into clean energy ventures, co-founding a clean energy investment firm and funding climate advocacy organizations. His campaign promises to donate any unintended fossil fuel profits to charity.
A normal human would be absolutely humiliated
Overseas Account Questions Surface
Additional controversy erupted after Steyer told voters at a campaign event that he has no money in the Cayman Islands or overseas. Tax filings reviewed by media outlets show investments connected to Cayman-based funds and foreign holdings, including a British bank account. His campaign clarified he does not personally hold accounts in those locations but invests in funds based there, a common global finance structure, and emphasized he pays United States taxes on all income.
What This Means for the Governor Race
The revelations arrive as Steyer gains momentum in California’s gubernatorial race following Democratic candidate shakeups. His massive personal campaign spending exceeding $130 million has positioned him as a leading contender. The sudden collapse of Eric Swalwell’s candidacy has benefited Steyer’s polling numbers. The complexity of his $2.4 billion fortune, spread across hedge funds and private equity, makes full investment tracking difficult. Critics question whether his climate activism aligns with his financial portfolio, while supporters point to his clean energy investments as proof of genuine commitment to environmental causes.
