Sophisticate peers inside tent (5)
I believe the answer is:
tepee
'tent' is the definition.
(tepee is a kind of tent)
'sophisticate peers inside' is the wordplay.
'inside' says the answer is hidden in the clue.
'TEPEE' is hidden in the letters of 'sophisticate peers'.
(Other definitions for tepee that I've seen before include "Native American dwelling" , "North American Indian tent" , "Wigwam" , "temporary shelter" , "home for Native Americans" .)