California Governor Candidate Tom Steyer Scrutinized Over Coal-Backed Hedge Fund Ties

Billionaire Democrat Tom Steyer, a former 2020 presidential candidate and leading contender in California’s gubernatorial race, is facing renewed scrutiny over his historic ties to Farallon Capital, the hedge fund he founded in 1986. While Steyer stepped down from Farallon in 2012, the firm later financed major coal projects, including a $500 million Australian coal terminal and a $150 million deal to help Whitehaven Coal acquire two mines. Financial disclosures from his 2020 presidential run showed Farallon investments worth at least $110 million; a 2024 campaign filing listed the amount at $34.7 million. Steyer’s campaign maintains he is a passive investor, that Farallon screens out fossil‑fuel holdings from his portfolio, and that any inadvertent profits would be donated to charity. The New York Times reported difficulty verifying these claims. The controversy challenges Steyer’s long‑standing image as a climate‑change activist as he seeks the governorship after former candidate Eric Swalwell withdrew amid misconduct allegations.