Investment Conflict of Interest Decision-Making

As a portfolio manager at a large investment firm, you have been approached by a promising startup that is seeking investment capital. During the due diligence process, you discover that the startup's founders have extensive ties with a major government contractor that has recently come under investigation for corruption. You feel that investing in this startup could lead to potential conflicts of interest for your firm.

However, the investment could also provide significant returns for your clients who count on you to deliver above-market performance. As you evaluate the situation, you must weigh your ethical obligations against the pressures of the investment environment. Which of the following actions would best uphold your professional standards in this scenario?