Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 86

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 86
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 the U.S. Federal Reserve, other banking regulators, other governmental
regulatory authorities, or self-regulatory organizations that supervise the financial markets. In particular, these agencies are empowered
to promulgate a variety of new rules pursuant to recently enacted financial reform legislation in the United States. We also may be adversely
affected by changes in the enforcement or interpretation of existing statutes and rules by these governmental regulatory authorities or
self-regulatory organizations. Such changes, or uncertainty regarding any such changes, could adversely affect the strategies and plans
set forth in this prospectus and may result in our investment focus shifting from the areas of expertise of the Investment Team to other
types of investments in which the investment team may have less expertise or little or no experience. Thus, any such changes, if they
occur, could have a material adverse effect on our results of operations and the value of your investment.

Derivative Investments. The
derivative investments in which we may invest are subject to comprehensive statutes, regulations and margin requirements. In particular,
certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the “Dodd-Frank Act”, which was signed
into law in July 2010, requires certain standardized derivatives to be executed on a regulated market and cleared through a central counterparty,
which may result in increased margin requirements and costs for us. The Dodd-Frank Act also established minimum margin requirements on
certain uncleared derivatives which may result in us and our counterparties posting higher margin amounts for uncleared derivatives. In
addition, we have claimed an exclusion from the definition of the term “commodity pool operator” pursuant to CFTC No-Action
Letter 12-38 issued by the staff of the CFTC Division of Swap Dealer and Intermediary Oversight on November 20, 2012. For us to continue
to qualify for this exclusion, (i) the aggregate initial margin and premiums required to establish our positions in derivative instruments
subject to the jurisdiction of the U.S. Commodity Exchange Act, as amended, or the “CEA,” and (other than positions entered
into for hedging purposes) may not exceed five percent of our liquidation value, (ii) the net notional value of our aggregate investments
in CEA-regulated derivative instruments (other than positions entered into for hedging purposes) may not exceed 100% of our liquidation
value, or (iii) we must meet an alternative test appropriate for a “fund of funds