Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 30

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 30
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 transactions, and they may also not properly hedge our risks. To the extent that 
 we use derivatives to hedge our investment risks, we will be subject to risks specific to derivatives transactions. Such risks include  
 counterparty risk, correlation risk, liquidity risk, leverage risk, and volatility risk.                                                |

| · | Conflicts of Interest Risk. Our executive officers and directors, and the Adviser and certain                                            
 of its affiliates and their officers and employees, including the Investment Team, have several conflicts of interest as a result of the 
 other activities in which they engage. See “Conflicts of Interest.”                                                                      |

| · | Incentive Fee Risk. Our inventive fee structure and the formula for calculating the fee                                                  
 payable to the Adviser may incentivize the Adviser to pursue speculative investments and use leverage in a manner that adversely impacts 
 our performance.                                                                                                                         |

| 15 |

| · | Refinancing Risk. If we incur debt financing and subsequently refinance such debt, the replacement                                        
 debt may be at a higher cost and on less favorable terms and conditions. If we fail to extend, refinance, or replace such debt financings 
 prior to their maturity on commercially reasonable terms, our liquidity will be lower than it would have been with the benefit of such    
 financings, which would limit our ability to grow.                                                                                        |

| · | Key Personnel Risk. We are dependent upon the key personnel of the Adviser for our future 
 success.                                                                                  |

| · | Tax Risk. In order to qualify as a RIC each year, the Company must satisfy both an annual                                                           
 income and asset diversification test. The Company intends to take certain positions regarding the qualification of CLO equity under the            
 asset diversification test for which there is a lack of guidance. If the Internal Revenue Service were to disagree with the Company’s               
 position and none of the applicable mitigation provisions are available, we could fail to qualify as a RIC. If we fail to qualify for               
 tax treatment as a RIC under Subchapter M of the Code for any reason, or become subject to corporate income tax, the resulting corporate            
 taxes could substantially reduce our net assets, as well as the amount of income available for distributions, and the amount of such distributions, 
 to our common stockholders and for payments to the holders of our other obligations.                                                                |

| · | Global Economy Risk. Global economies and financial markets are becoming increasingly interconnected,                                          
 and conditions and events in one country, region or financial market may adversely impact issuers