While money managers made deals, talked about AI and hung on Elon Musk's every word at this week's top business conference in Beverly Hills, a passionate debate on diversity was taking place behind closed doors.

In a small side room, about 40 people, including some of Wall Street's top black executives, crowded around a rectangular set of tables for an invitation-only panel and faced hedge fund manager Bill Ackman for his attacks on diversity, equality and inclusion. , or DEI, initiative, according to five attendees.

For about an hour, Ackman was criticized for his public denunciation of DEI and for expressing views that attendees said were harmful to the advancement of women and people of color in America. The money manager, who has labeled DEI “essentially a racist and illegal movement,” faced backlash from both panelists and audience members, said those in attendance, who asked not to be identified as the hearing was private. The discussions were part of an event on DEI at the Milken Institute Global Conference on Monday.

Along with Ackman, panelists included Jarvis V. Hollingsworth, chairman of the $200 billion Teacher Retirement System of Texas; Dina DiLorenzo, president of Guggenheim Investments which manages more than $300 billion; and John Hope Bryant, head of Operation Hope Inc., a nonprofit organization dedicated to improving financial literacy. Don Peebles, who heads Miami Beach real estate firm The Peebles Corporation, was also a panelist.

Ackman, the billionaire founder of activist investment firm Pershing Square Capital Management, launched his high-profile attack on DEI's initiatives last year after accusing elite colleges, including his alma mater Harvard, of failing to respond to allegations of anti-Semitism in campus. At this week's panel, Ackman faulted DEI staff members for promoting ideas that see some as “oppressed” and others, including the Jewish people, as “oppressors,” according to attendees.

Most of those who spoke pushed the money manager reframed his attack on DEI, arguing that its message threatens to undercut diversity programs across America, the people said. At least one speaker said his attack on DEI reflected a poor understanding of the Civil Rights movement, including the Jewish community's role in it, the people said. Others said they had witnessed his previous efforts to support diverse talent and businesses, but that his message about DEI is being picked apart by those seeking to reduce opportunities for people from disadvantaged backgrounds.

“We're talking about expanding the table and adding a chair,” panelist Bryant said in an interview after the event. He declined to comment directly on the discussion. DEI supporters should argue more strongly that diversity has helped U.S. economic growth, he said.

Great debate

“I have written thousands of words about my nuanced views on this important topic. I would ask that people read them to fully understand my perspective,” Ackman said in a statement Thursday when asked about the panel discussions. He pointed with a long finger post on X from January. In that post, he said he had come to the conclusion “that DEI was not about diversity in its purest form, but rather DEI was a political advocacy movement on behalf of certain groups.”

Hollingsworth and a spokesman for the Milken conference declined to comment on the discussions. DiLorenzo did not respond to a request for comment.

The debate at the conference reflects a broader dispute developing across corporate America over the role of DEI. Comments from Ackman, Musk and former President Donald Trump have added fuel to a crusade led by conservative activists trying to dismantle DEI initiatives in schools, colleges and companies.

Arguments about DEI spilled over beyond the panel with Ackman into other talks at the Milken conference, which ended Wednesday. Several keynote speakers voiced criticism of diversity initiatives. Argentine President Javier Milei told a keynote lunch on Monday that “a promising future for the species is impossible if we sacrifice merit, competition and results on the altar of diversity.”

Citadel founder Ken Griffin said he would continue to withhold funding from Harvard until the school “re-commits to meritocracy in a very public and profound way.” He has attacked the school before”On the agenda” for failing to respond to anti-Semitism on campus.

“It would be a mistake for Jewish funders and administrators to align themselves against DEI's efforts on campus,” said Simone Friedman, who directs giving at EJF Philanthropies, the family foundation of hedge fund manager Manny Friedman. In an interview with Bloomberg News, she advocated expanding diversity programs on campus to more comprehensively include Jewish identity.

Marty Nesbitt, co-founder of private equity firm Vistria Group, said he was looking to reframe the debate to focus on ways investing in underserved people and businesses yields returns.

“When we talk about diversity and inclusion and all these things, we're in the business of making money — it's all just capitalism,” Nesbitt said on a separate panel. His company invests in education, health care and finance – particularly in companies that bring services to underrepresented groups.

“I just think there's a real opportunity in all of these prospects to make a really good risk-adjusted return,” he said.