Portfolio Review
We reviewed and assessed the reputation of a Chinese energy firm into which our client had invested. The CEO of the firm — his leadership the key to the firm’s success — had previously been accused of corruption, but press reports indicated that he had been cleared by the Chinese Government.
We discovered, however, that he had not yet been cleared by the Chinese Communist Party, of which he was a member, and his case was wide open — subject to political review. The CEO’s unsettled status posed a risk to the investment because he could be subject to arrest or be forced to step down.