Attractive PE targets have often experienced revenue growth that is not matched by the growth of their governance and compliance programs. The anti-corruption risks these portfolio companies pose to the private equity firms that invest in them are growing, especially given increased enforcement by global regulators of laws that may penalize even relatively passive investors, and a lack of enforcement guidance. In this first installment of our article series on private equity corruption risk, we analyze the compliance and enforcement climate and the corruption liability a private equity firm faces. Subsequent articles will examine how to walk the line between control and passivity when monitoring the portfolio, key components of the risk assessment, best practices for pre- and post-acquisition due diligence and when to walk away from a deal. See our three-part series on managing M&A anti-corruption risk: “Pre-Deal Prep” (Oct. 3, 2018); “Pre-Closing Risk Assessments and Due Diligence” (Oct. 17, 2018); and “Deal Terms and Integration” (Oct. 31, 2018).