Tom Steyer is trying to sell himself to voters as an agent of change.

He has vowed to take on entrenched political and economic forces to create affordable housing, make the wealthy pay more in taxes, lower energy bills and protect the environment.

But perhaps the biggest change he is selling is his own.

The hedge-fund billionaire turned climate activist has faced criticism throughout his campaign for past investments in coal plants and private prisons, to name a few, that helped build his fortune and gave him the means to spend more than $150 million of his own money in his quest for the governor’s mansion.

Steyer’s prolific spending has blanketed the airwaves with television ads and helped propel him near the top of an unsettled gubernatorial field in the polls.

The 68-year-old San Franciscan has helped put many Democratic candidates in office as one of the party’s biggest political donors in the past two decades, but has never held public office himself.

He spent more than $340 million in the 2020 Democratic presidential primary, but dropped out after placing third in the primary in South Carolina, where he had invested heavily.

There is a long tradition of wealthy, self-funding candidates, and the results are mixed at best. Billionaire Michael Bloomberg spent more than $260 million to win three terms as New York City mayor. But he spent more than $1 billion on a 2020 presidential bid and lasted only four days longer in the race than Steyer. Two years later, real estate developer Rick Caruso spent more than $100 million in an effort to become Los Angeles mayor but lost handily to Karen Bass.

Hoping for a better result in his current race, Steyer has staked out a position as the most progressive candidate in the field — touting an endorsement from the Bernie Sanders-affiliated Our Revolution. He’s picked up other key endorsements, too, from the California Teachers Assn., California Nurses Assn. and numerous environmental groups.

But he faces the challenge of convincing enough liberal voters to support a billionaire with controversial past investments the same year a tax on billionaires, currently enjoying strong support, is poised to be on the November ballot.

“This election is about who you can trust to fight for you,” former Rep. Katie Porter said during an April 22 gubernatorial debate in San Francisco. “One candidate is a billionaire who got rich off polluters and ICE prisons and is now using that money to fund his election.”

Steyer said he understands the broad concerns about his wealth and is willing to vote for the billionaires’ tax in November.

“I know that people are skeptical of billionaires, and I’m skeptical of billionaires,” Steyer said Tuesday in an interview with The Times. “But if you look at this race, I’m the only progressive in the race. I’m the person who’s taking on the corporate special interests.”

He pointed to the millions spent by a super PAC supported by the real estate industry and Pacific Gas & Electric — which Steyer has pledged to break up to bring down utility costs — as evidence that he is the candidate most feared by moneyed interests in the state.

“The companies that are running up the costs are fighting like hell, because that’s how they make their money,” he said. “But somebody’s got to stand up to them.”

The departure of former Rep. Eric Swalwell from the race last month after sexual assault allegations doesn’t appear to have resulted in a major surge of support for Steyer. Rather, it is Xavier Becerra, the former Health and Human Services secretary, who seems to have gained momentum.

But veteran California pollster Mark Baldassare said that he hasn’t counted out Steyer yet.

“It would be easy to say that he’s reached his peak, except for the fact that there are so many undecideds and Steyer has so many resources at his disposal,” said Baldassare, the statewide survey director for the Public Policy Institute of California.

Steyer has poured at least $875 million into federal and state political committees since 2010, according to an analysis conducted for The Times by OpenSecrets, and federal and state campaign finance records. That total includes the nearly half a billion dollars he has spent on his two races.

In 2013, Steyer left his investment firm and launched NextGen Climate, a progressive political action group geared toward addressing climate change. He has given nearly $270 million to a super PAC affiliated with the group, which was later renamed NextGen America.

The committee has spent tens of millions of dollars on campaigns opposing fossil fuel interests and supporting progressive candidates, though Steyer’s financial support for the group has decreased as he has run for office.

The billionaire also established his climate bona fides by opposing the Keystone XL pipeline during the Obama administration, which became a national proxy fight over climate policy, and by backing environmental ballot measures in California.

Among them was a $5-million investment in 2010’s “No on Prop. 23” campaign, which defeated a conservative effort to overturn California’s greenhouse gas emission reduction law.

Two years later, Steyer invested about $29.5 million in Proposition 39, a winning measure to recoup money from corporate tax breaks to help pay for clean energy projects.

Privileged upbringing and a ‘desire to compete’

Steyer’s unconventional path to politics began with a privileged upbringing on the Upper East Side of Manhattan. He studied at the elite Buckley School and Philips Exeter Academy before attending college at Yale University, where he captained the men’s soccer team and graduated in 1979.

After a brief stint on Wall Street, he got a master’s degree in business administration at Stanford University, where he met his future wife, Kat Taylor. They wed on the Stanford campus in 1986.

Steyer worked hard — very hard — at making money.

He was one of several “Wall Street Prodigies” featured in a Wall Street Journal profile from the same year he was married.

Steyer’s work began at 5 a.m. in the office and he seldom took days off — he fretted he wouldn’t have time for a honeymoon.

He eschewed the trappings of wealth — driving an eight-year-old Honda — motivated instead by a “desire to compete, excel and keep struggling to do better.”

Steyer began cutting political checks soon after, but his real emergence as a major political donor came during the 2004 presidential campaign, when he pledged to raise more than $100,000 for John Kerry’s campaign and was talked about as a potential political appointee at the U.S. Treasury Department in a Kerry administration.

Steyer hired Kerry to join his sustainable investment company Galvanize in 2024. Steyer stepped down from the company before entering the governor’s race.

The year 2004 was pivotal for another reason.

A group of students at his two alma maters, Yale and Stanford, along with those at a handful of other elite universities, began a campaign to pressure the endowments at their institutions to stop investing with Steyer’s hedge fund, Farallon Capital Management.

They cited concerns about some of the firm’s investments, including a coal burning plant in Indonesia and a joint venture between Farallon and Yale to pump out water from an aquifer in Colorado adjacent to the Great Sand Dunes National Park.

“Stated simply, we do not want our universities to profit from investments that harm other communities,” the students wrote in an open letter to Steyer. “We are concerned about the impact some of Farallon’s recent investments have had.”

Steyer told the students he appreciated “the importance of the issues that you raise,” but defended his firm’s work, saying that it acted “responsibly and ethically.”

Looking back on that time now, Steyer said it was a turning point.

“I think that experience really was a wake-up call to me,” he said. “It’s when I started to very seriously consider leaving Farallon. I really felt like if I was going to be the person with my values, I was going to have to leave and be independent and do what was right.”

Three years later, Steyer and his wife began their initial pivot to public service, opening a bank in Oakland that would cater to low-income customers

But this initial venture highlighted the inevitable collision course between Steyer’s burgeoning activism and his firm’s investments.

At an event that year with then-Gov. Arnold Schwarzenegger and Oakland Mayor Ron Dellums, Steyer and Taylor pledged $1 million in loans to support vulnerable people in Oakland facing foreclosure in the wake of the subprime mortgage crisis.

Left unsaid was the fact that Steyer’s firm had extensive financial ties to San Diego’s Accredited Home Lenders, one of the biggest subprime mortgage lenders in the country.

The transformation to climate activist

Steyer and his wife began writing bigger philanthropic checks and in 2010 took the Giving Pledge, promising to donate at least half of their wealth before they died.

In 2009, they gave $40 million to endow the TomKat Center for Sustainable Energy at Stanford, the first of several multimillion-dollar gifts to Stanford and Yale to support climate-focused ventures. They pledged $7 million to create the Steyer-Taylor Center for Energy Policy and Finance, also at Stanford, in 2010. It closed last year after its endowment came to an end.

And in 2011, the couple donated $25 million to Yale to help establish an Energy Sciences Institute focused on developing sustainable energy solutions.

But even as Steyer undertook his public transformation from investor to climate activist, his firm continued to make decisions out of step with his newfound commitment.

In 2011, for example, the firm purchased 1.8 million shares of BP, a year after the Deepwater Horizon oil spill, in which a BP-operated project dumped nearly 5 million barrels of oil into the Gulf of Mexico.

Steyer resigned from the firm at the end of 2012, though he still has millions of dollars invested in the firm .

Environmentalists have largely been willing to forgive Steyer’s past investments.

“There’s no question he’d be the most knowledgeable and committed climate advocate that’s ever held really high office in America,” climate activist and author Bill McKibben recently told Politico.

While the nonprofit California Environmental Voters has endorsed both Katie Porter and Tom Steyer in the race, Steyer, in particular, has “taken on Big Oil dollar for dollar, toe to toe, and beaten them,” said Mary Creasman, the group’s chief executive.

“He has made this his career and his investment and his passion, so it’s authentic, and voters see that,” she said.

Leah Stokes, an associate professor of environmental politics at UC Santa Barbara, said she’s impressed by Steyer’s climate track record and progressive campaign platform, noting that he’s been an active presence in California’s climate movement for more than 15 years.

That includes not only his work on ballot initiatives and clean energy technology, but also his focus on biodiversity loss and carbon sequestration at his 1,800-acre TomKat Ranch in Pescadero, where researchers are studying regenerative agriculture.

But Steyer has also played a role in elevating climate into a national political issue — including in the early 2010s when it wasn’t a “politically hot topic,” Stokes said.

“He has been willing to spend an enormous amount of his personal money on elections on climate — whether it’s propositions, whether it’s himself running for president on basically a climate platform, whether it’s the Next Gen giant voter turnout campaign,” she said. “I think he has recognized … that politics is where we have to invest our time if we want to make a difference on the climate crisis.”

Despite concerns raised about Steyer’s early investments into fossil fuels through Farallon, Stokes said she’s more apt to criticize candidates who are taking money from oil companies today, such as Becerra, who accepted a $39,200 donation from Chevron for his gubernatorial campaign.

She was also heartened by the fact that Pacific Gas & Electric has funded a $10-million PAC opposing Steyer, because she said it indicates that he aims to hold utility companies accountable for skyrocketing electricity prices amid soaring profits.

“We could actually have a shot here at having somebody who cares about climate change, who wants to hold utilities accountable, who wants to hold big polluters accountable,” Stokes said. “That would just be transformative.”

Energy costs weigh heavily on voters

Steyer’s focus on climate issues and energy affordability could also be a strategic boon in the governor’s race.

Sixty percent of voters in the state see climate change as a major threat to the country and believe that the government is not doing enough to address it, according to polling from the Public Policy Institute of California.

“Californians connect the dots between what’s going on with extreme climate and wildfires and climate,” said Baldassare, the institute’s survey director.

Recent polling has also shown that voters are very concerned about energy affordability and rising utility costs, with 13% of Americans naming it as the most important financial problem facing their family — a 10-point increase from last year, according to an April Gallup poll.

Overall, energy costs tied housing costs as the second-biggest concern following the high cost of living, the poll found.

In November, Democrats who campaigned heavily around energy affordability swept the field in key races in New Jersey, Virginia and Georgia. Residential electric prices increased nearly 11% between January 2025 and this February, according to the latest available data from the U.S. Energy Information Administration.

“Voters are supporting candidates who are leaning into these issues,” Creasman said.

Wieder reported from Washington and Smith from Los Angeles.