Chapter 5 - VICTORIA'S MONEY
Victoria asked Ethan to hear her separately.
He agreed only because Emily wanted to know what her mother had done.
Victoria did not pretend the investment was charity.
She said:
“The partnership exists to earn returns.”
“Off my father’s company.”
“If the risk justifies it.”
“Did you tell Emily?”
“No.”
“Why?”
“Because she is not a managing partner.”
“Did you tell her the deal could affect her future inheritance?”
Victoria paused.
“It could also increase it.”
If Carter Packaging recovered, an 11% preferred return could be lucrative.
If conversion occurred at favorable value, Hayes Family Investment Partnership could own a large piece of a successful manufacturer.
Victoria’s fiduciary duty was to the partnership.
Not to protect Ethan emotionally.
Victoria’s partnership structure also limited her freedom.
She was managing partner.
Not sole owner.
Two outside advisers sat on the investment committee.
Her children held beneficial interests through trusts.
She could recommend.
She could not wire $6.5 million alone.
That mattered.
Ethan initially imagined Victoria had simply decided to use “Emily’s inheritance” to rescue Robert.
Not accurate.
The partnership had its own mandate:
preserve capital,
generate return,
diversify investments.
A manufacturing preferred investment could fit.
The misconduct was not using Emily’s personal money without permission.
It was Victoria negotiating a conflicted transaction while hiding the relationship from her own committee.
When the committee learned, one adviser said:
“I might have approved the investment anyway. I would not have approved you as lead negotiator.”
That distinction embarrassed Victoria more than accusation of greed.
She had believed experience excused disclosure.
The committee believed disclosure was the minimum condition for trusting experience.
That was a real defense.
Then Ethan asked:
“When did you start sleeping with my father?”
Victoria looked down.
“Five months ago.”
“When did negotiations start?”
“Seven months ago.”
So business came first.
Affair followed.
That did not make it better.
It made the conflict evolve.
Victoria said:
“We should have stopped negotiating when the relationship changed.”
“Yes.”
“We didn’t.”
“Why?”
“Because the company still needed money.”
“And because you wanted him.”
Victoria nodded.
May you like
“Yes.”
No excuse.
