Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 26

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 26
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The value of our assets, as well as the market
price of shares of our common stock, will fluctuate. Our investments should be considered risky, and you may lose all or part of your
investment in us. Investors should consider their financial situation and needs, other investments, investment goals, investment experience,
time horizons, liquidity needs, and risk tolerance before investing in shares of our common stock. An investment in shares of our common
stock may be speculative in that it involves a high degree of risk and should not be considered a complete investment program. We are
designed primarily as a long-term investment vehicle, and our securities are not an appropriate investment for a short-term trading strategy.
We can offer no assurance that returns, if any, on our investments will be commensurate with the risk of investment in us, nor can we
provide any assurance that enough appropriate investments that meet our investment criteria will be available.

The following is a summary of certain principal
risks of an investment in us. See “Risk Factors” for a more complete discussion of the risks of investing in
shares of our common stock, including certain risks not summarized below.

| · | Risks of Investing in CLOs and Other Structured Finance Securities. CLOs and other structured                                                   
 finance securities are generally backed by a pool of credit assets that serve as collateral. Accordingly, CLO and structured finance securities 
 present risks similar to those of other types of credit investments, including default (credit), interest rate, and prepayment risks.           
 In addition, CLOs and other structured finance securities are often governed by a complex series of legal documents and contracts, which        
 increases the risk of dispute over the interpretation and enforceability of such documents relative to other types of investments. There        
 is also a risk that the trustee of a CLO does not properly carry out its duties to the CLO, potentially resulting in loss to the CLO.           
 CLOs are also inherently leveraged vehicles and are subject to leverage risk. See “Risks Related to Our Investments — Our                       
 investments in CLO securities and other structured finance securities involve certain risks.”                                                   |

| · | Dependence on CLO Managers Risk. The performance of the CLOs in which we invest is highly                                            
 dependent on the quality of the respective CLO Managers. The CLO Manager’s responsibilities include managing insolvency proceedings, 
 loan workouts and modifications, liquidations, and reporting on the performance of the loan pool to the