California gubernatorial candidate Tom Steyer faces mounting criticism over his continued financial ties to a hedge fund backing coal projects, despite campaigning as a climate warrior who abandoned Wall Street to fight global warming.

The Farallon Connection

Steyer maintains significant investments in Farallon Capital, one of America’s largest hedge funds, which has increasingly financed coal operations as major banks retreated under environmental pressure. The firm has funded coal producers and mining infrastructure across Australia. Financial disclosures reveal Steyer held at least 110 million dollars in Farallon during his 2020 presidential bid. Recent filings show his stake has dropped to approximately 34.7 million dollars, though his 2.4 billion dollar fortune spread across multiple ventures makes complete tracking difficult.

Chris

@chriswithans

Man, what does Tom Steyer do if he can’t even get into the final against this field? He’s spent at least $200 million of his own money. Annoyingly blanketed YouTube with a nonstop stream of ads. I don’t see any ads except for his.

A normal human would be absolutely humiliated

6:44 PM · May 4, 2026

Climate advocate Will Van De Pol stated that Farallon Capital has bailed out coal mining companies and enabled coal expansion. He emphasized that anyone closely connected to Farallon who claims climate commitment needs heavy scrutiny for the negative impacts of the firm’s investment decisions. Steyer’s campaign responded that employees at Farallon screen out fossil fuel holdings from his portfolio and he no longer earns profit shares from the fund, describing him as a passive investor.

Offshore Financial Questions

Additional controversy emerged when Steyer declared at a campaign event that he has no money in the Cayman Islands or overseas. Tax filings contradict this claim, showing 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 pays United States taxes on all income.

Campaign Impact

The scrutiny arrives as Steyer gains momentum in the governor’s race following Democratic candidate shakeups. His massive personal spending exceeding 130 million dollars has propelled him to leading contender status. Supporters argue Steyer has atoned for past investments and demonstrated commitment through clean energy ventures. Matt Abularach-Macias of California Environmental Voters noted Steyer’s money has been scrutinized repeatedly and he has put resources into clean energy and climate action. Steyer co-founded a clean energy investment firm and funds climate advocacy groups. His campaign states policies prevent direct fossil fuel investments and pledges to donate any unintended profits from such exposure to charity.