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Background
You'll receive this quest via a message at Gamlen's house in
Lowtown at some point early in Act I.
Walkthrough
The message you receive will come from Athenril or Meeran, depending on who you worked for in the Prologue. Either way, you'll learn that somebody named Anso has some work for you, and that you should meet with him in
Lowtown at night. When you talk to Anso there, he'll inform you that the smugglers he hired to deliver some lyrium decided to keep it instead, and he'll ask you to get it back. If you decide to work with Anso, then you'll gain some rivalry with Aveline and Carver. If you select the "this better be worth it" dialogue option, then you'll gain friendship with Isabela and Varric.
You'll find the smuggler base inside the
Lowtown elven alienage at night. Inside, you'll have to fight some street thugs, but afterwards when you open up their cargo chest, you'll discover that it's empty. Then when you exit the base, you'll be attacked by slavers and Tevinter hunters looking for "the elf." Finally, when you attempt to exit the alienage, you'll meet up with Fenris, the elf in question. He'll admit that he's a former slave, and that he used you as a distraction so he could deal with the Imperium troops hunting him. He'll then ask you to help him defeat his former master Danarius, who is currently staying in a mansion in
Hightown. If you agree to do this for free, then you'll gain friendship with Aveline and rivalry with Isabela. If you demand payment, then you'll gain friendship with Isabela and rivalry with Aveline. If you point out that you were tricked, then you'll avoid gaining rivalry with Isabela.
The next time you enter
Hightown at night, you'll find Fenris waiting outside of Danarius' mansion. When you talk to him there, he'll automatically join you, and you'll enter the mansion. Inside, you'll have to battle some shades and demons, and one of the demons (in the northeastern room) will drop the Magister's Key, which will allow you to enter Danarius' chamber (upstairs on the eastern side). However, when you open the door to the chamber, instead of finding Danarius, you'll get ambushed by shades and an arcane horror.
After the battle, you'll finally realize that Danarius isn't in the mansion, and that he set up the shades and demons as a trap. But not everything will be bad -- inside Danarius' chamber, you'll find a trio of chests, and they'll contain a
Slaver Lord's Cowl, plus some other odds and ends. You'll also probably find some random gear on the corpse of the arcane horror.
When you leave the mansion, you'll trigger a conversation with Fenris. If you have any mages in your party, then Fenris won't be happy, and he'll point out that mages can be dangerous. If you respond with "I'm well aware," then you'll gain friendship with Fenris but gain rivalry with the mages in your party. If you say "That's not your concern," then you'll gain rivalry with Fenris. If you say "But a mage helped you," then you won't gain friendship or rivalry with anybody. If you mention a mage by name, then you'll gain friendship with that mage and rivalry with Fenris. Finally, if you're playing a mage yourself, then no matter what you say, you'll gain rivalry with Fenris.
Also, during your conversation with Fenris, you'll get an opportunity to do some investigating. If you ask Fenris why Danarius is after him, and if the debt can be repaid, then you'll receive some friendship points with Fenris. Following this option will also give you a romance dialogue option with Fenris, if such a thing interests you.
At the end of your conversation, you'll complete the quest and earn 400 xp. Fenris will also mention giving you some gold, but you won't actually receive anything. From this point on, Fenris will keep Danarius' mansion as his home base, and he'll be available as a companion.