Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 208

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 208
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 currency of a particular foreign country
may suffer a substantial decline against the U.S. dollar. The Company may enter into a forward foreign currency contract to sell, for
a fixed amount of U.S. dollars, the amount of foreign currency approximating the value of some or all of its portfolio securities denominated
in such foreign currency. The forward foreign currency contract amount and the value of the portfolio securities involved may not have
a perfect correlation because the future value of the securities hedged will change as a consequence of the market between the date the
forward contract is entered into and the date it matures.

Cross Hedges. The
Company may also cross-hedge currencies by entering into transactions to purchase or sell one or more currencies that are expected to
decline in value relative to other currencies to which the Company has, or in which the Company expects to have, portfolio exposure.

Proxy Hedges. Proxy
hedging is often used when the currency to which the Company’s portfolio is exposed is difficult to hedge or to hedge against the
U.S. dollar. Proxy hedging entails entering into a forward contract to sell a currency whose changes in value are generally considered
to be linked to a currency or currencies in which some or all of the Company’s portfolio securities are, or are expected to be denominated,
and to buy U.S. dollars. The amount of the contract would not exceed the value of the Company’s securities denominated in linked
currencies.

In addition to the hedging
transactions described above, the Company may also engage in currency transactions in an attempt to take advantage of certain inefficiencies
in the currency exchange market, to increase their exposure to a foreign currency or to shift exposure to foreign currency fluctuations
from one currency to another.

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Unless consistent with and
permitted by its stated investment policies, the Company will not enter into a transaction to hedge currency exposure to an extent greater,
after netting all transactions intended wholly or partially to offset other transactions, than the aggregate market value (at the time
of entering into the transaction) of the securities held in its portfolio that are denominated or generally quoted in or currently convertible
into such currency, other than with respect to proxy hedging, described above. If consistent with and permitted by its stated investment
policies, the Company may take long and short positions in foreign currencies in excess of the value of the Company’s assets denominated
in a particular currency or when the Company does not own assets denominated in that currency. The Company may