Billionaire California Gubernatorial Candidate Steyer Admits Past Investment in ICE Detention Firm Was 'Mistake'

Steyer's ties to private prison company CoreCivic, which operates immigration detention centers, have come under scrutiny in his campaign.

Apr. 14, 2026 at 7:41pm

Got story updates? Submit your updates here. ›

A dimly lit, cinematic painting of an empty government office space, with a single shadowy figure standing alone and bathed in warm, diagonal sunlight, conceptually representing the political hypocrisy and contradictions of a wealthy candidate.The quiet, contemplative mood of this illustration reflects the complex personal and political contradictions facing a billionaire gubernatorial candidate.California City Today

Progressive billionaire Tom Steyer, a leading Democratic candidate for California governor, has acknowledged that his past investment in the private prison company CoreCivic, which operates immigration detention centers, was a 'mistake.' Steyer previously ran the hedge fund Farallon Capital Management, which invested nearly $90 million in CoreCivic. Steyer has since left the hedge fund industry and now advocates against mass incarceration, but his ties to the company that runs several ICE detention facilities in California have become a campaign issue.

Why it matters

Steyer's past investment in a company operating immigration detention centers contradicts his current progressive platform of abolishing ICE. This hypocrisy has become a point of attack for his political opponents as he seeks to win the California governor's race.

The details

Under Steyer's management, his former hedge fund Farallon Capital Management invested $89.1 million in CoreCivic, a private prison company that operates several immigration detention centers in California. At least two of CoreCivic's facilities in the state house people detained by federal immigration authorities. Steyer has since left the hedge fund industry and now advocates against mass incarceration, but his past ties to the private prison industry have become a campaign issue.

  • Steyer's investment in CoreCivic occurred during his time running Farallon Capital Management, which he founded in 1986.
  • Steyer left Farallon and sold his stake in the hedge fund in 2012.
  • Steyer is currently running for governor of California, with the election scheduled for November 2026.

The players

Tom Steyer

A billionaire Democratic candidate for governor of California who previously invested in the private prison company CoreCivic through his hedge fund Farallon Capital Management.

CoreCivic

A private prison company that operates several immigration detention centers in California, including at least two facilities that house people detained by federal immigration authorities.

Farallon Capital Management

The hedge fund founded and previously managed by Tom Steyer, which invested nearly $90 million in the private prison company CoreCivic.

Tony Thurmond

The California State Superintendent of Public Instruction, who has criticized Steyer's past ties to the private prison industry.

Got photos? Submit your photos here. ›

What they’re saying

“It was a mistake to think that that was a place where it was decent to make money.”

— Tom Steyer, Gubernatorial Candidate

“Before he was a progressive, he made millions off of companies that operate ICE detention centers, that operate private prisons that incarcerated young children.”

— Tony Thurmond, State Superintendent of Public Instruction

What’s next

Steyer's past investment in CoreCivic is likely to remain a campaign issue as he seeks the California governorship. His opponents will likely continue to attack him over the contradiction between his current progressive platform and his previous financial ties to the private prison industry.

The takeaway

This case highlights the challenges candidates can face when their past business dealings and investments clash with their current political positions and rhetoric. Steyer's acknowledgment of his 'mistake' in investing in CoreCivic suggests he is trying to get ahead of the issue, but it remains to be seen whether voters will accept his explanation.