Sylvie Willis
Tom Steyer is an American billionaire, philanthropist, and political candidate who made his \$1.6 billion fortune as a hedge fund manager. Steyer founded Farallon Capital, a hedge fund firm headquartered in San Francisco, in 1986. He spent 26 years running Farallon, delivering double-digit annual returns for his investors before cashing out in 2012 to focus on politics and the environment. Steyer's investments included fossil fuels, specifically coal, oil, and gas. He has since tried to reinvent himself, using his fossil fuel profits to fight climate change and fund a transition to renewable energy.
| Characteristics | Values |
|---|---|
| Name | Thomas Fahr Steyer |
| Net Worth | $1.6 billion |
| Profession | Hedge fund manager, philanthropist, environmentalist, political candidate, liberal activist, businessman, investor |
| Investments | Fossil fuels, coal, oil, gas, coal mining companies, Kinder Morgan, Maules Creek coal mine |
| Political Affiliation | Democratic Party |
| Political Contributions | $65 million to Democratic candidates and environmental causes during the 2016 election |
| Climate Change Advocacy | Founded NextGen Climate (now NextGen America), an environmental advocacy nonprofit and political action committee; founded a climate-focused investment firm, Galvanize; founded Beneficial State Bank, an ethical community development bank |
| Other Initiatives | Co-founded OneCalifornia Bank, co-founded TomKat Center for Sustainable Energy at Stanford University, co-chaired Biden’s Climate Engagement Advisory Council |
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What You'll Learn
Tom Steyer's $1.6 billion fortune
Tom Steyer is a billionaire with a net worth of $1.6 billion, making him about half as rich as former US President Donald Trump. Steyer made his fortune as a hedge fund manager, investing in coal, oil, and gas, among other things. He spent 26 years running Farallon Capital , a hedge fund firm headquartered in San Francisco, often delivering double-digit annual returns for his investors. Farallon Capital manages $20 billion in capital for institutions and high-net-worth individuals.
Steyer has since become better known as an activist and philanthropist, focusing his fortune on politics and charity. He has spent hundreds of millions backing Democratic candidates and environmental causes. He was a prominent supporter of Barack Obama, speaking at the 2012 Democratic National Convention and hosting the then-president for a fundraiser at his Bay Area home in 2013. In 2013, he founded NextGen America, an environmental advocacy non-profit organisation that boosted turnout for Democrats in key districts. In the same year, he also appeared in a series of commercials in opposition to the proposed Keystone Pipeline, which he had previously invested in.
Steyer has positioned himself as a "climate candidate" and has been a driving force in the climate world for over a decade, leading citizen campaigns, starting the largest youth mobilisation in the country, and advocating for climate legislation. He has also co-founded Beneficial State Bank, an ethical community development bank governed in the public interest, with the aim of building an economy that restores the planet and extends prosperity to all.
Despite his current focus on climate activism, Steyer has faced criticism for his past investments in fossil fuels. During a debate, he was questioned about his environmental record and the conflict between his past investments and his current stance. In response, Steyer stated that he had divested from fossil fuels over a decade ago, although critics argue that he did not dispose of his carbon-polluting investments quickly enough.
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Investing in fossil fuels
Tom Steyer is a billionaire who made his fortune, in part, by investing in fossil fuels. He founded Farallon Capital, a hedge fund firm headquartered in San Francisco, in 1986. Steyer spent 26 years running Farallon, delivering double-digit annual returns for his investors and managing $20 billion by the time he left the company in 2012.
Steyer's investments included coal, oil, and gas, as well as stock in Kinder Morgan, which owned a pipeline connecting the Canadian bitumen sands to a port on the Pacific. A 2014 New York Times article revealed that coal-mining companies that Farallon invested in or lent money to under Steyer increased their coal production by 70 million tons annually. In addition, Steyer remained invested in the Maules Creek coal mine even after deciding to divest from fossil fuels.
In recent years, Steyer has reinvented himself as a climate activist and donor, using his investment profits to fund political campaigns and environmental causes. He founded NextGen America, an environmental advocacy nonprofit organization, and has spent hundreds of millions of dollars of his own money on his presidential bid and supporting Democratic candidates and climate initiatives.
Despite his past investments in fossil fuels, Steyer has positioned himself as "the climate candidate" and has made tackling climate change his top priority. He has pledged to give away the bulk of his money during his lifetime and has promised to invest in companies and solutions that address the climate crisis.
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Divesting from fossil fuels
Fossil fuel divestment campaigns emerged on college and university campuses in the United States in 2011, with students urging their administrations to turn endowment investments in the fossil fuel industry into investments in clean energy and communities most impacted by climate change. In 2012, Unity College in Maine became the first institution of higher learning to divest its endowment from fossil fuels.
Fossil fuel divestment is the intentional act of moving one's money and investments out of the fossil fuel industry. Institutions that sell or get rid of their fossil fuel stocks and investments can then invest in renewable energy and other environmentally friendly initiatives. The more entities that join the divest movement, the more pressure is put on the fossil fuel industry and its investors. When enough money is taken from the fossil fuel industry, progress towards clean energy and programs that benefit the environment can be made.
The Toronto Principle is a fossil fuel divestment strategy that puts into action the aims set forth at the Paris Agreement in 2015. It includes moving investments away from coal companies and coal-fired power plants, companies seeking non-conventional or aggressive fossil fuel development, and possibly also companies that distort public policies or deceive the public on climate issues.
As of July 2023, more than 1593 institutions with assets totalling more than $40.5 trillion in assets worldwide had begun or committed to some form of divestment of fossil fuels. Divesters cite various reasons for their decisions, including aligning investments with core values, combating the fossil fuel industry, and protecting portfolios from climate-related financial risk.
Billionaire Tom Steyer, a former hedge fund manager, has positioned himself as a "climate candidate" and has pledged to use his fossil fuel profits to fight climate change. He has a net worth of $1.6 billion, which he accumulated in part by investing in coal, oil, and gas through his investment firm Farallon. Steyer claims to have divested from fossil fuels about a decade ago, but there is some controversy surrounding the timing and extent of his divestment.
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Investing in climate change solutions
Former hedge fund manager and billionaire Tom Steyer made his fortune of $1.6 billion by investing in fossil fuels, among other things. However, Steyer has since reinvented himself as a climate activist, using his profits to fund a transition away from fossil fuels and fight climate change. He has pledged to give away most of his money while alive and has donated millions to Democratic candidates and environmental causes.
To speed up investment in climate change solutions, several interventions have been proposed, including training financial advisors to better understand climate investments, extending investment time horizons to support sustainable choices, and engaging beneficiaries and stakeholders on the actions they can take to influence asset owners.
One example of an organisation investing in climate change solutions is HASI, which invests in sustainable infrastructure assets that advance the energy transition. HASI combines expertise in energy markets and financial structuring to deliver risk-adjusted returns and measurable environmental benefits. HASI's investments take various forms, including equity, joint ventures, land ownership, lending, and other financing transactions.
In conclusion, as the world increasingly recognises the importance of mitigating climate change, investing in climate change solutions offers both environmental and financial benefits. By considering the environmental impacts of investment decisions and supporting sustainable choices, investors can play a crucial role in driving the transition to a low-carbon economy.
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Political involvement and donations
Tom Steyer's fortune stems from his time as a hedge fund manager at Farallon Capital and his subsequent investments in clean energy. However, his time at Farallon Capital, where he made the bulk of his wealth, included significant investments in fossil fuels, including coal mines and oil drilling.
Tom Steyer's political involvement and donations have been a significant part of his public life, and his spending on political causes has been substantial. Steyer's political involvement began in the late 2000s, and he has since become one of the largest political donors in the United States, spending over $125 million on political causes as of 2014.
Steyer's donations have primarily supported Democratic candidates and progressive causes, with a strong focus on environmental issues and addressing climate change. He founded the political action committee NextGen America, which aims to increase voter turnout among young people and promote progressive policies. NextGen America has been active in numerous elections, including the 2018 midterms, where it spent over $30 million to support Democratic candidates and encourage youth voter participation.
In 2014, Steyer founded the environmental advocacy group NextGen Climate, now known as NextGen America, with a focus on addressing climate change and promoting clean energy. The organization has been a significant player in climate activism, advocating for policies to reduce greenhouse gas emissions and increase investment in renewable energy sources.
During the 2016 United States presidential election, Steyer emerged as a prominent opponent of Donald Trump. He spent over
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Frequently asked questions
Tom Steyer made his billions as a hedge fund manager who invested in coal, oil, and gas. He founded Farallon Capital, a hedge fund firm headquartered in San Francisco.
Forbes estimates Steyer’s net worth to be $1.6 billion.
Tom Steyer is now a philanthropist, environmentalist, political candidate, and liberal activist. He is also the founder of Galvanize Climate Solutions, an organization that aims to accelerate new climate technologies.
Tom Steyer has reinvented himself from fossil fuel funder to climate crusader. He has pledged to divest from fossil fuels and to give the bulk of his money away to charity. He has also promised to end all government giveaways to polluters, including direct subsidies, tax breaks, and the subsidization of fossil fuel production on public lands.
