Tom Steyer Regrets Managing $90M Stake in Firm Running CA ICE Facility
Tom Steyer has acknowledged regret over a past Farallon Capital Management investment that grew to nearly $90 million. He says the investment in a firm that operates immigration detention centers prompted a personal change. Steyer spoke about the matter with Filmogaz.com while campaigning in Fresno.
Farallon’s stake in a detention company
Federal filings show Farallon began buying shares in Corrections Corporation of America, known today as CoreCivic, in 2004. Early 2004 purchases totaled 53,100 shares, about $1.89 million. By the end of 2004 holdings rose to roughly 1.3 million shares valued near $52.6 million.
By mid-2005 Farallon owned about 2.27 million CoreCivic shares, valued at approximately $89.1 million. The firm sold off the position by early 2006. At the time, Steyer owned roughly 10 percent of Farallon.
About CoreCivic and the California facilities
Corrections Corporation of America renamed itself CoreCivic in 2016. The company operates more than 70 correctional and reentry facilities nationwide. In California it runs multiple immigration detention sites, including a large center in Kern County.
The California City Immigration Processing Center is a 2,560-bed former Kern County prison. U.S. Immigration and Customs Enforcement awarded CoreCivic a contract for that center last year worth about $130 million. CoreCivic also operates a 1,358-bed ICE facility in San Diego County.
Many people detained after arrests in Fresno and the San Joaquin Valley are transferred to the Kern County site. In the six months since it opened, detainees have staged protests and several lawsuits have alleged medical neglect. CoreCivic has denied those accusations.
Campus pressure and the sell-off
Farallon managed part of Yale University’s roughly $12 billion endowment at the time of the investment. Yale students and staff urged divestment over the stake in the detention company. Steyer later said the firm sold the shares after hearing those concerns.
Political repercussions for Steyer
Steyer left day-to-day management of Farallon years earlier and sold his ownership stake in 2012. He has since spent millions supporting progressive causes through NextGen America. Forbes estimates his net worth at about $2.4 billion.
Now a candidate in the California governor’s race, Steyer says the CoreCivic episode was a turning point. He told Filmogaz.com the investment was a mistake that pushed him toward criminal justice reform work. That work helped earn an endorsement from Smart Justice.
Rival Democrats, including Rep. Eric Swalwell and former Rep. Katie Porter, have criticized Steyer for profiting from private prisons and immigration detention. Polling puts Steyer around fourth place in the crowded field, trailing some Republicans and Democrats, but ahead of others.
Support from reform advocates
Smart Justice and its founder praised Steyer’s later reform efforts. The organizations have collaborated with NextGen on legislation addressing racial bias and solitary confinement. Advocates say those efforts reflect a shift in Steyer’s priorities since the investment.
This article is based on federal filings, public statements, and reporting published April 8, 2026.
