California gubernatorial candidate Tom Steyer faces mounting scrutiny over his continued financial ties to a hedge fund backing coal projects worldwide, despite campaigning as a climate activist who claims he abandoned the investment industry to fight global warming.
Hidden Coal Connections Surface
Farallon Capital, one of America’s largest hedge funds, has increasingly financed coal operations as major banks retreated under environmental pressure. The firm has funded coal producers and mining infrastructure in Australia and other countries. Steyer founded Farallon but insists he walked away to focus on climate activism. Financial disclosures reveal a different story. His stake in Farallon was valued at a minimum of 110 million dollars during his failed 2020 presidential campaign. Recent filings show his holdings dropped to approximately 34.7 million dollars, but the connection remains active.
A normal human would be absolutely humiliated
Climate advocate Will Van De Pol condemned the arrangement. Farallon Capital has bailed out coal mining companies in Australia and enabled the continuation and expansion of coal mining, he stated. Anyone closely connected to Farallon and its investment decision-making that claims commitment to climate action needs to be heavily scrutinized for the negative climate impacts of Farallon’s decisions. Steyer’s campaign claims Farallon employees screen fossil fuel holdings from his portfolio and that he no longer collects profit shares from the fund. He remains classified as a passive investor, though the distinction offers little comfort to critics questioning his environmental credentials.
Offshore Money Questions Multiply
Additional complications emerged when Steyer declared at a campaign event that he holds no money in the Cayman Islands or overseas. Tax documents contradict this claim, showing investments linked to Cayman-based funds and foreign holdings including a British bank account. His campaign clarified he invests in funds based in those locations rather than holding personal accounts there, a common practice in global finance. Steyer emphasizes he pays United States taxes on all income regardless of where investment vehicles are domiciled.
Campaign Implications Mount
The controversy surfaces as Steyer gains momentum in the governor’s race following upheaval among Democratic candidates. His massive personal campaign spending exceeding 130 million dollars has propelled him into leading contender status. The sudden collapse of Eric Swalwell’s candidacy boosted Steyer’s poll numbers significantly. His fortune, estimated at 2.4 billion dollars, spreads across hedge funds, private equity, and other ventures, making complete tracking difficult. Supporters argue Steyer has atoned for past investments through clean energy initiatives. He co-founded a renewable energy investment firm and funds climate advocacy organizations. His campaign promises to donate any unintended fossil fuel profits to charity, though critics question whether such assurances address fundamental conflicts between his financial interests and environmental platform.