Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 45

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 45
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 loss at maturity, while for
reporting purposes the totality of cashflows are reflected in a constant yield to maturity.

We are dependent on the collateral managers of the CLOs in which we invest, and those CLOs are generally not registered under the 1940 Act.

We rely on CLO collateral managers to administer
and review the portfolios of collateral they manage. The actions of the CLO collateral managers may significantly affect the return on
our investments; however, we, as investors of the CLO, typically do not have any direct contractual relationship with the collateral managers
of the CLOs in which we invest. The ability of each CLO collateral manager to identify and report on issues affecting its securitization
portfolio on a timely basis could also affect the return on our investments, as we may not be provided with information on a timely basis
in order to take appropriate measures to manage our risks. We will also rely on CLO collateral managers to act in the best interests of
a CLO it manages; however, there can be no assurance that the collateral managers will always act in the best interest of the class or
classes of securities in which we are invested. If any CLO collateral manager were to act in a manner that was not in the best interest
of the CLOs (e.g., with gross negligence, with reckless disregard or in bad faith), this could adversely impact the overall performance
of our investments. Furthermore, since the underlying CLO issuer often provides an indemnity to its CLO collateral manager, we may not
be incentivized to pursue actions against the collateral manager since any such action, if successful, may ultimately be borne by the
underlying CLO issuer and payable from its assets, which could create losses to us as investors in the CLO. In addition, liabilities incurred
by the CLO manger to third parties may be borne by us as investors in CLO equity to the extent the CLO is required to indemnify its collateral
manager for such liabilities.

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In addition, the CLOs in which we invest are generally
not registered as investment companies under the 1940 Act. As investors in these CLOs, we are not afforded the protections that stockholders
in an investment company registered under the 1940 Act would have.

The collateral managers of the CLOs in which we intend to invest may not continue to manage such CLOs.

Because we intend to invest in CLO securities
issued by