Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 132

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 132
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-end management investment company typically does not incur                                                
 significant entity-level tax costs, because it is generally entitled to deduct distributions to its stockholders. As a result, a closed-end 
 management investment company will generally not incur any U.S. federal income tax costs, so long as the closed-end management investment   
 company qualifies as a RIC and distributes all of its income to its stockholders on a current basis.                                        |

| • | Portfolio level monitoring. Our portfolio monitoring comprises a number of methods. The                                                            
 Adviser uses standard industry technology to analyze and monitor our positions. Such technology includes an industry leading CLO database          
 and cashflow “engine,” or generator, and other analytics suites used to compare CLOs across the market and run cashflow projections                
 and other metrics. We also use other proprietary software and databases to evaluate and model investments on a daily basis. The Adviser,           
 on behalf of its clients, also uses its position as a majority equity holder in CLOs to have periodic updates with the various CLO managers,       
 which often take the form of a credit review of the underlying loan portfolio. Finally, the Adviser uses its market relationships to contextualize 
 the performance of a given CLO relative to its vintage, its competitors, and to the leveraged loan market at the time.                             |

The Adviser’s experience and its proprietary,
technology driven quantitative investment processes are expected to play a key role in enabling identification and sourcing of appropriate
CLO investments in an agile manner while uncovering relative value. The closed-end fund structure will allow the Adviser to take a long-term
view from a portfolio management perspective while allowing investors access liquidity through the exchange. As such, the Adviser can
focus principally on maximizing long-term risk-adjusted returns for the benefit of stockholders.

Other Investment Techniques

Leverage.We may use leverage to
the extent permitted by the 1940 Act. We are permitted to obtain leverage using any form of financial leverage instruments, including
funds borrowed from banks or other financial institutions, margin facilities, notes, or preferred stock, and leverage attributable to
reverse repurchase agreements or similar transactions. Over the long term, management expects us to operate under normal market conditions
generally with leverage within a range of 25% to 35% of total assets, although the actual amount of our leverage will vary over time.
We currently anticipate incurring leverage through the issuance of preferred stock, including the Series A Term Preferred Stock, or reverse
repurchase agreements or similar