Billionaire hedge-fund founder Tom Steyer announced his run for the California governor’s race on Nov. 19, positioning himself as a Democrat who can confront corporate influence and rising costs in the state. Steyer said the political system has been “slow to change and tilted toward corporations,” adding that he is “not beholden to any group” and would “take these issues on directly.”
Steyer, 68, built his fortune as the founder of Farallon Capital Management, which he led for 26 years before departing in 2012. After leaving the firm, he launched NextGen Climate in 2013 and became a prominent Democratic donor. He spent $74 million in the 2018 midterm elections promoting climate and progressive causes and has remained one of the party’s largest individual contributors.
But Steyer’s investment history has resurfaced as a central liability. Farallon invested in major fossil-fuel projects, including an Australian coal mine that received approval to clear 3,700 acres of forest serving as koala habitat and produce 12 million tons of coal per year. Farallon also invested $34 million in Corrections Corp. of America (CCA) in 2005, a company contracted by U.S. Immigration and Customs Enforcement (ICE) to run migrant detention centers along the U.S.–Mexico border. Within Democratic circles, CCA has long been criticized as a symbol of the “profit-driven incarceration industry.”
Steyer has stated he regrets the CCA investment and said he ordered the fund to sell the shares because they did not reflect his values. He also said he left Farallon partly due to its fossil-fuel holdings, adding, “I wish I’d made the move away from fossil fuels sooner.” Critics argue that his past involvement in coal mining and private-prison operations contradicts the clean-energy and human-rights vision he promotes on the campaign trail.
Jessica Levinson, a Loyola Law School professor, said it is a “serious problem” for a candidate emphasizing a cleaner future to be linked with the words “coal” and “private prisons,” noting that it clashes with the narrative he is trying to advance according to the Los Angeles Times. The tension between Steyer’s past and present has also drawn attacks from progressive rivals who oppose billionaire dominance in politics.
Steyer’s political career has expanded over the last decade as he funded ballot measures, climate initiatives, and impeachment campaigns. Before his current bid, he previously considered runs for governor and the U.S. Senate but ultimately entered the 2020 presidential race, spending nearly $342 million before ending his campaign after the South Carolina primary.
This year’s governor’s race remains fluid. Former Vice President Kamala Harris and Senator Alex Padilla opted not to run, while Proposition 50, the Democratic-backed redistricting effort, dominated political attention throughout the off-year cycle. A recent UC Berkeley Institute of Governmental Studies poll showed Steyer with 1% support among likely voters.
Steyer’s platform includes building one million homes in four years, lowering energy costs by ending monopolies, expanding free preschool and community college, and banning corporate contributions to political action committees in California elections. The campaign arrives as his record undergoes renewed scrutiny, including his early Wall Street years at Morgan Stanley and Goldman Sachs, his offshore tax-structure decisions in 2000, and his transition from fossil-fuel investor to climate activist.
His critics continue to point to his past coal and fossil-fuel involvement, including a widely circulated opinion letter calling him the “ultimate hypocrite” for making billions from polluting industries before pivoting to environmental advocacy. Supporters, however, argue that he has shown “substantial good faith” by abandoning those investments and using his wealth to support progressive causes.
As Steyer attempts to frame himself as an independent force unafraid of confronting corporate power, rivals and voters are expected to test how his past aligns with his promises for California’s future.
BY YEOL JANG [jang.yeol@koreadaily.com]
