Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 143

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 143
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 investment opportunities in CLOs and other securitized products. These investment opportunities are notified to the
Adviser either in the course of particular auction processes or as part of private bilateral negotiations with investors or financial
institutions that may hold, or wish to offer or exit, structured credit investments. The Adviser also utilized proprietary data driven
infrastructure to identify and source investment opportunities in the secondary market.

Investment Analysis and Due Diligence

Initial Analysis. Once the Adviser has
identified a potential investment, it will conduct an initial analysis to test the relative trading value of the opportunity. This will
involve an initial top- down fundamental analysis and evaluation of underlying portfolio metrics. Model returns are created on conservative,
broad-market assumptions and overlying structural protections and cushions are evaluated. The results of the initial analysis of the target
investment opportunity are discussed and reviewed by members of the Investment Committee of the Adviser on a daily basis. Only investment
opportunities that are approved at this stage are moved to the next stage of the investment process, involving detailed fundamental analysis.

Detailed Fundamental Credit Analysis. A
fundamental analysis of the underlying portfolio will follow the initial analysis. This will involve an in-depth analysis of tail-risks
or fundamental risks that exist round the weakest elements of the underlying portfolio, including industry, company and structure.

Additionally, at this stage, the Adviser conducts
a full re-underwriting of the assets in the underlying collateral pool and applies its proprietary re-rating algorithm tests to adjust
and confirm underlying asset pool ratings and analyze the potential investment’s risk parameters and return outlook based on default
rate probabilities, delinquency rates, recovery rates and pre-payments on the underlying loans.

Detailed Quantitative Analysis. The Adviser
will then conduct a detailed quantitative analysis. This will involve a detailed cash-flow and stress test analysis using portfolio-specific
assumptions obtained from fundamental credit analysis and a detailed review of transaction documentation.

Approval Process. The results of the detailed
fundamental and quantitative analyses are discussed at a final meeting of the Investment Committee convened to consider the suitability
of the proposed investment and whether it meets all the investment criteria set by the Adviser in the light of the different dimensions
of the Company’s risk-return metric. If the Adviser decides that an investment opportunity is suitable for the Company, it will
purchase the relevant investment on behalf of the Company. To facilitate this, the Adviser then enters into negotiations with market participants
for the purchase of the proposed investment.

Monitoring