Managing Potential Conflicts of Interest

James is a portfolio manager at a prominent investment firm, well-known for its commitment to ethical practices and client advocacy. Recently, James met with the management of a tech company that his firm has been considering for investment. During the meeting, the CEO of the tech company mentioned possible collaborations that could benefit both firms, including a personal investment opportunity for James in the company's upcoming round of funding.

James is intrigued by the opportunity but recognizes that accepting such an investment could pose a conflict of interest regarding his professional obligations to his clients. As he contemplates the best course of action, he consults the CFA Institute's Code of Ethics and Standards of Professional Conduct.

Which action should James take to best adhere to the Code and mitigate any potential conflicts of interest?