Feud at event developed around daughter (8)
I believe the answer is:
vendetta
'feud' is the definition.
(vendetta is a kind of feud)
'at event developed around daughter' is the wordplay.
'developed' is an anagram indicator.
'around' indicates putting letters inside.
'daughter' becomes 'd'.
'at'+'event'='atevent'
'atevent' is an anagram of 'venetta'.
'venetta' placed around 'd' is 'VENDETTA'.
(Other definitions for vendetta that I've seen before include "Bitter feud between families" , "Violent feud" , "A prolonged feud, associated with Sicily" , "Violent quarrel" , "Family blood feud" .)