Part 21 (1/2)

Enter Donovan. Paying a hundred million for his friend's share of the company alone. He'd known the company was teetering on the brink of insolvency, but hadn't cared. He was saving an old friend-who'd ultimately taken twenty million of the hundred and bought Donovan a twelve-thousand-square-foot beachfront mansion in the Caymans with fifteen acres of land along with it. It had been a slick way for Donovan to slip eighty million dollars out of Everest to an old friend-and twenty million to himself.

After figuring out the real deal, Gillette had stopped objecting. Dutifully processing the due diligence information and drafting a memo to Everest's limited partners describing the acquisition and the ”solid” opportunity it represented. In his heart believing the company wouldn't survive more than two years. He'd been wrong. It had gone bankrupt in less than one. Ten months after acquiring the company, Everest had been forced to write off its entire three-hundred-million-dollar investment. In twenty years, it was one of only a handful of companies Everest had bought that crashed and burned.

But, in the end, it hadn't mattered at all. Not one iota. Because the rest of the companies in the fund had been huge winners and the limited partners barely noticed the three-hundred-million-dollar write-off. It was just a footnote and a ha-ha during the annual partners' meeting at the Plaza. No one even questioned Donovan's motives. Instead, they'd thanked him profusely for being their most successful gunslinger.

After that, Gillette's relations.h.i.+p with Donovan was never the same. They hadn't spoken for weeks after closing the deal, and for months after that it had been difficult for Gillette to even be around the old man. He hadn't said a word when the bankruptcy hit, and Donovan never acknowledged the mistake. Instead, he subtly blamed the bomb on Gillette at the partners' meeting. Over time, they'd reestablished a working relations.h.i.+p, but it had never been like the old days.

And Troy Mason had become the messiah. The one who would ultimately run Everest Capital.

Until Donovan had met an untimely death on a Connecticut stream.

”h.e.l.lo, Kyle.” Gillette was the only one at Everest who didn't call Lefors by his Donovan-given nickname. He'd never liked it. ”What's up?”

”Just putting chicken in the bucket for the man,” Lefors answered smoothly. ”Punching that Everest time clock.”

While Marcie was relentlessly aggressive-a bull in a china shop-Lefors was smooth. He was always ready with an amusing story or an engaging remark to put others at ease. Calmly, almost imperceptibly taking center stage when he wanted to, he never appeared rushed or uncomfortable.

Marcie and Lefors were different in their methods, but equally effective. And, down deep, they both craved their own empires. Which Gillette was wary of because, sooner or later, they'd both want to break away from Everest and start their own firms. It was the natural progression.

”Did you hear about Richard Harris?” Lefors asked casually.

”Yeah.”

Lefors opened a bag of potato chips that was lying in his lap. He inhaled junk food constantly, but never gained weight. ”Think he was murdered?”

Gillette glanced up from his computer. Dominion had come back a little at the closing bell but had drifted lower again in after-hours trading. ”Why do you ask?”

Lefors shrugged. ”A man like Harris probably had lots of enemies. You don't get to be CEO of U.S. Petroleum without ruining a few careers. I never met him, but I heard he was a deliberate man. Deliberate men don't step in front of buses. That's why.”

”It was an accident,” Gillette said. ”At least, that's what I was told. No one at the scene saw anything suspicious.”

”I'm considering all the possibilities,” Lefors said, munching on a chip. ”Like you've taught me.”

”Just make sure Harris's death doesn't throw a wrench into our deals with U.S. Petroleum.”

”I've already talked to the business development guy there who's handling everything,” Lefors answered. ”I reminded him that we still expect to close both transactions no later than January tenth. He started backpedaling at first. Said things would probably go on hold with Harris's death, so I reminded him of the five-million-dollar no-go fee I put in the letter of intent I made him sign.”

”What if we we crater the deal?” asked Gillette. ”Does the no-go fee go both ways?” crater the deal?” asked Gillette. ”Does the no-go fee go both ways?”

”No,” Lefors replied proudly. ”We don't pay a cent if we cut off negotiations.”

”Good.”

Lefors wiped his mouth with a paper napkin. ”So, why did you want to see me?”

”I'm promoting you to managing partner.”

Lefors stuffed several more chips in his mouth. ”Do I at least get a cost-of-living increase?” he asked through a mouthful.

”More than that,” Gillette said straight-faced. ”Six percent.”

”You're a generous man.”

”I'm kidding,” Gillette said, breaking into a grin. ”You'll make a million a year, up from the five hundred grand you make now. And I'm going to make you chairman of six of our companies.”

Lefors tossed his tie over his shoulder and brushed crumbs off his s.h.i.+rt. ”What about incentive comp? I heard we were raising a new fund. You going to spread some of the ups around now that Donovan and Mason are out of the picture?”

”How did you find out we were raising a new fund?” Gillette wanted to know, irritated. n.o.body in New York could keep a d.a.m.n secret. For such a big city, sometimes it seemed like a small town.

”I gotta plead the Fifth on this one, Christian. I can't give away my sources. My network would fall apart if it got out that I didn't keep things confidential.”

”This time you're going to make an exception, Kyle,” Gillette said. ”Tell me.”

”All right, all right.” Lefors closed the bag of chips and dropped it on the floor. ”A buddy of mine over at North America Guaranty & Life told me. I went to business school with him. He's putting together some kind of investment memo on us for the Mac Daddy over there. For Miles Whitman.”

”I know who the Mac Daddy at NAG is.”

”You know who all all the Mac Daddies in New York are, Christian. That's why I like hanging with you.” Lefors shook his head. ”Thirty-six and chairman of Everest Capital. Did you wake up this morning and pinch yourself to make sure you weren't dreaming? I mean, where do you go from here? h.e.l.l, you the Mac Daddies in New York are, Christian. That's why I like hanging with you.” Lefors shook his head. ”Thirty-six and chairman of Everest Capital. Did you wake up this morning and pinch yourself to make sure you weren't dreaming? I mean, where do you go from here? h.e.l.l, you are are one of the Mac Daddies now.” one of the Mac Daddies now.”

Lefors could charm a leopard out of his spots, so you couldn't a.s.sume he was being sincere. Still, it was nice to hear that someone understood what he'd accomplished. Marcie had congratulated him, but only because that made sense from a political perspective. There was no doubt that her congratulations were insincere. But you never knew with Lefors. He might actually mean it. Which made him more unpredictable than Marcie. And, therefore, more dangerous. ”I'm giving you 5 percent of the ups on the next fund.”

”What's the target raise?”

”Fifteen billion.”

Lefors let out a low whistle. ”Hey, I might actually be worth something someday. No more filling chicken buckets. If If you can raise that much,” he added. you can raise that much,” he added.

”I can and I will.”

”Is this the same deal Marcie's getting?”

Gillette knew what was coming. Lefors was a natural negotiator, a man who always a.s.sumed that no one started with their best offer. Which wasn't necessarily a bad a.s.sumption. But in this case, he was wrong. ”Yeah, and don't think you're going to get any more. You aren't.”

”I want two million a year in salary and 10 percent of the ups.”

”Then I'll promote Danny Wagner instead of you.” Wagner was another Everest managing director.

”Wagner.” Lefors laughed. ”What a joke. You wouldn't promote him if he was the last private equity guy on earth. He's okay at blocking and tackling, like Cohen, but he can't get get people, you know? Which is what really sets a private equity person apart. What sets people, you know? Which is what really sets a private equity person apart. What sets you you apart. You take control of a situation whenever you want to. It's a gift. Not many people have it.” apart. You take control of a situation whenever you want to. It's a gift. Not many people have it.”

Gillette pa.s.sed a finger slowly over his lower lip. Lefors was right. The bluff had been called. Wagner would never be a managing partner. ”Or I could go outside the firm.”

Lefors shook his head. ”Look, in the last six months I've been approached by three other private equity firms. They're all offering me nice packages, better than what you just did. Of course, you already know that. From Tom McGuire. And here's how I know you know.” He pulled the tie from over his shoulder and laid it down over the b.u.t.tons of his s.h.i.+rt. ”So I'm having lunch with a senior partner at one of these firms a few weeks ago, and I notice two guys a few tables over. One of them looks real familiar. I can't place him for a while, then suddenly I remember. A couple of months ago I rode out to Kennedy Airport with Donovan. I was briefing him on developments at a couple of our portfolio companies. He was on his way to Africa for that presidential delegation, remember? And I was with him because you know how he always had to be doing ten things at once? Anyway, he's dragging a McGuire bodyguard with him, too. The guy's sitting in the front seat with the driver. Turns out, it was the same guy who was watching me eat lunch.” Lefors hesitated. ”And he didn't touch his food the whole time. He was just watching me. Like he was trying to read my lips.”

”I know you've been approached,” Gillette acknowledged quietly, ”but I don't care. The deal I presented to you is the deal. There's nothing more.”

Lefors said nothing.