Pepe was born and raised a skunk. He lived in a burrow below a nice tree stump. One day he was rooting around in a clump of ferns looking for grubs when he felt a voice in his head calling to him. The voice was very slurred, but unable to resist. Pepe followed it to find a drunken wizard passed out face down in the forest. This is how Pepe became Mal's familiar.
When Mal awoke and discovered his new familiar he was overjoyed and accepted Pepe right away. Pepe was not quite as overjoyed when he realized he was stuck with the crazy wizard. Over time, Pepe learned to deal with and accept his new master and his new master grew to like Pepe very much. Mal eventually learned how to enhance Pepe through magical means and began to alter him. Pepe grew much smarter, almost as smart as Mal himself. Pepe also grew wings to fly with, invisibility detection, the comprehension of languages, and the ability to detect magic.