Billionaire Candidate Faces Questions About Past Business Deals

Tom Steyer, a 68‑year‑old hedge fund founder now running for California governor, has found himself in the spotlight over his earlier investments. He once owned shares in a private prison company that now houses many immigrants waiting for deportation.

During a recent town hall in San Diego, a local activist shouted at Steyer that he should not ignore the conditions inside the Otay Mesa detention center. The activist, who works cleaning crime scenes, showed signs with QR codes that help detainees buy food.

Steyer’s hedge fund, Farallon Capital, had invested heavily in the private prison firm that later became CoreCivic. The company operates facilities across the country and houses people seized by federal immigration authorities.

The issue is not new. In February, protesters in orange jumpsuits marched at the California Democratic Party convention to highlight Steyer’s past ties. Some of his Democratic competitors have used the story to question whether he truly represents progressive values.

Steyer has publicly apologized for his earlier investment. In 2012 he sold his stake in Farallon, saying it conflicted with his beliefs. He has since focused on criminal‑justice reform and climate change, donating hundreds of millions to these causes.

Despite stepping away from Farallon, Steyer and his wife still earn income from the hedge fund’s remaining holdings. The campaign claims they have policies to avoid investing in industries like private prisons, fossil fuels, and payday lending. Any accidental profits from these sectors are supposedly donated to charity.

In the 2026 governor’s race, Steyer has already poured about $112 million of his own money into the campaign. He has also spent millions on television ads, including a high‑profile spot during the Super Bowl’s “Puppy Bowl.”

However, money alone does not guarantee victory. Past candidates have spent record amounts and still lost elections. Steyer’s opponents, including real‑estate groups, have launched opposition campaigns funded by millions of dollars.

The debate over Steyer’s past and present actions continues as the primary approaches, with voters weighing his wealth against his stated commitment to social justice.