Tom Steyer’s Climate Campaign Faces Scrutiny Over Coal-Financing Hedge-Fund Ties

Tom Steyer, a leading Democratic contender for California governor, frames his candidacy around climate action. Simultaneously, financial records reveal that his hedge-fund firm, Farallon Capital, continues to provide significant loans to the coal industry, prompting questions about the consistency of his climate-focused narrative.

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Steyer stepped down as chief executive of Farallon Capital in 2012, yet he never fully severed his ownership or financial connection to the firm. Farallon has since expanded into diverse trading strategies and, as mainstream banks faced pressure to halt coal financing, it solidified its role as a major lender to coal mining operations.

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• Tom Steyer – Billionaire former hedge-fund manager and gubernatorial candidate.

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• Farallon Capital – Hedge-fund founded by Steyer, now among the 20 largest with $44 billion under management.

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• Our Revolution – Progressive organization founded by Bernie Sanders that has endorsed Steyer’s campaign.

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• Other progressive groups – Various climate-focused organizations providing campaign support.

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• Steyer’s net worth is estimated at $2.4 billion (Forbes).

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• Farallon manages roughly $44 billion in assets, ranking it within the top twenty hedge funds nationwide.

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• The firm is identified as a “major lender to the coal industry,” contrasting with banks that have reduced coal exposure under activist pressure.

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Steyer’s campaign asserts that he has instructed Farallon to separate his personal funds from the firm’s fossil-fuel investments. Progressive backers emphasize that his billionaire status is relevant, stating that the use of his wealth must align with climate goals.

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Voter concerns about billionaire influence have intensified as the race progresses. Critics highlight the apparent disconnect between Steyer’s climate rhetoric and Farallon’s coal financing. Some progressives, however, have defended Steyer, arguing that his overall climate advocacy outweighs the lingering financial ties.

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Public insight into Steyer’s broader investment portfolio—encompassing hedge funds, private-equity, and venture-capital holdings—is limited. Periodic disclosures provide only fragmented views, making it difficult to verify the extent of any divestment from fossil-fuel assets.

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• “walked away” — Tom Steyer

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• “focus full-time on fighting climate change.” — Tom Steyer

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• “Yes, Tom Steyer is a billionaire,” — Our Revolution (representative)

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• “it matters what he is doing with that power.” — Our Revolution (representative)

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The primary election will determine the Democratic nominee for governor. Steyer’s ability to reconcile his climate platform with the disclosed coal-financing activities of Farallon may shape voter perception and influence the race’s outcome.

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