Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 72

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 72
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 the net proceeds of this offering in our targeted investments,
depending on the availability of appropriate investment opportunities consistent with our investment objectives and market conditions.
During this period, we will invest in temporary investments, such as cash, cash equivalents, U.S. government securities, and other high-quality
debt investments that mature in one year or less, which we expect will have returns substantially lower than the returns that we anticipate
earning from investments in CLO securities and related investments.

Our investment portfolio is recorded at fair value. As a result, there may be uncertainty as to the value of our portfolio investments.

Under the 1940 Act, we are required to value our
portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us in accordance
with our written valuation policy. Pursuant to Rule 2a-5, our board has elected to designate the Adviser as “valuation designee”
to perform fair value determinations in respect of our portfolio investments that do not have readily available market quotations. Typically,
there is no public market for the type of investments we target. As a result, we value these securities at least quarterly based on relevant
information compiled by the Adviser and third-party pricing services (when available), and with the oversight, review, and acceptance
by our board of directors.

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The determination of fair value and, consequently,
the amount of unrealized gains and losses in our portfolio, are to a certain degree subjective and dependent on a valuation process approved
and overseen by our board of directors. Certain factors that may be considered in determining the fair value of our investments include
non-binding indicative bids and the number of trades (and the size and timing of each trade) in an investment. Valuation of certain investments
is also based, in part, upon third party valuation models that take into account various market inputs. Investors should be aware that
the models, information, and/or underlying assumptions utilized by us or such models will not always allow us to correctly capture the
fair value of an asset. Because such valuations, and particularly valuations of securities that are not publicly traded like those we
hold, are inherently uncertain, they may fluctuate over short periods of time and may be based on estimates. Our determinations of fair
value may differ materially from the values that would have been used if an active public market for these securities existed. Our determinations
of the fair value of our investments have a material impact on our net earnings