Billionaire California gubernatorial candidate and climate activist Tom Steyer is facing renewed scrutiny over his lingering connection to a hedge fund that has backed coal projects.
Steyer has long maintained that he left the investment world to focus on climate change, telling voters he “walked away” from his hedge fund to fight global warming.
While he did step down as CEO of San Francisco hedge fund Farallon Capital in 2012, financial records show he never fully cut ties to the firm he founded — even as it expanded lending to the coal industry in recent years, theNew York Times reported.
Farallon, one of the largest hedge funds in the US, has increasingly financed coal projects, especially as major banks pulled back under pressure from environmental activists. The firm has helped fund coal operations in countries like Australia, including loans to coal producers and infrastructure tied to mining.
“Farallon Capital has bailed out coal mining companies in Australia and enabled the continuation and expansion of coal mining,” climate advocate Will Van De Pol told the Times. “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 said he has taken steps to remove himself from investments related to the industry.
“He remains a passive investor,” his campaign told the Times. “Employees at Farallon screen out any fossil-fuel-related holdings from his portfolio, and he no longer earns a share of the profits from the fund.”
Financial disclosures show he has maintained significant investments in Farallon over the years.
During his failed 2020 presidential run, those holdings were valued at at least $110 million. More recent filings show that Steyer’s stake has dropped to about $34.7 million.
The complexity of Steyer’s wealth makes it difficult to fully track where his money is invested. His fortune, estimated at $2.4 billion, is spread across hedge funds, private equity and other ventures.
Source: California Post – Breaking California News, Photos & Videos
