As a portfolio manager at a mid-sized investment firm, you are approached by an old college friend who has recently launched a tech startup. He asks you to invest a significant amount of your firm’s capital in his company. While you see potential in the startup, you are aware that investing in a friend's business could create a conflict of interest. To make an informed decision, you review the firm’s code of ethics and professional standards, which emphasize the necessity of disclosing any potential conflicts.
After evaluating the situation, you believe it is crucial to weigh the benefits of supporting your friend against the ethical obligations you hold as a professional. What is your best course of action?