Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 7

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 7
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PO”) at a public offering price of $20.00 per share.

Our primary investment objective is to maximize
our portfolio’s total return with a secondary objective to generate high current income. We will seek to achieve our investment
objectives by investing primarily in equity and junior debt tranches of collateralized loan obligations (“CLOs”) that are
collateralized by portfolios of sub-investment grade, senior secured floating-rate debt, issued by a large number of distinct US companies
across several industry sectors. We may also invest in other securities and instruments that are related to these investments or that
the Adviser believes are consistent with our investment objectives, including senior and mezzanine debt tranches of CLOs and CLO loan
accumulation facility warehouse (“CLO Warehouse”) first loss investments. The amount that we will invest in other securities
and instruments will vary from time to time and, as such, may constitute a material part of our portfolio on any given date, based on
the Adviser’s assessment of prevailing market conditions.

The CLO equity securities in which we primarily
seek to invest are typically unrated and are considered speculative with respect to timing and amount of distributions. Below investment
grade and unrated securities are also sometimes referred to as “junk” securities.

These investment objectives and strategies are
not fundamental policies of ours and may be changed by our board of directors without prior approval of our stockholders. See “Business.”

CLOs represent an efficient way for investors
to access diversified portfolios of broadly syndicated senior secured loans. We seek to invest in CLO securities that the Adviser believes
have the potential to generate attractive risk-adjusted returns and to outperform other similar CLO securities issued within the respective
vintage period, in the primary CLO market (i.e.,acquiring securities at the inception of a CLO), as well as in the secondary CLO
market (i.e.,acquiring existing CLO securities).

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CLO equity, which is expected to comprise most,
if not all, of the positions in the Company, is an illiquid investment. For the most part, CLO equity trades “by appointment”
and trading prices are heavily negotiated. Projected cashflows to CLO equity involve a number of assumptions about the future, including
interest rates, reinvestment spreads on loans bought in the future, loan default and prepayment rates, and other factors that may be difficult
to predict. As such, CLO equity is considered