Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 48

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 48
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as non-U.S. financial entities for this purpose, and therefore will be required to comply with these reporting requirements to avoid the
30% withholding. If a CLO in which we invest fails to properly comply with these reporting requirements, it could reduce the amount available
to distribute to junior debt and equity holders in such CLO, which could materially and adversely affect the fair value of the CLO’s
securities, our operating results, and cashflows.

Increased competition in the market or a decrease in new CLO issuances may result in increased price volatility or a shortage of investment opportunities.

In recent years there has been a marked increase
in the number of, and flow of capital into, investment vehicles established to make investments in CLO securities, even though the size
of this market is relatively limited. While we cannot determine the precise effect of such competition, such increase may result in greater
competition for investment opportunities, which may result in an increase in the price of such investments relative to their risk. Such
competition may also result under certain circumstances in increased price volatility or decreased liquidity with respect to certain positions.

In addition, the volume of new CLO issuances and
CLO refinancings varies over time as a result of a variety of factors including new regulations, changes in interest rates, and other
market forces. As a result of increased competition and uncertainty regarding the volume of new CLO issuances and CLO refinancings, we
can offer no assurances that we will deploy all of our capital in a timely manner or at all. Prospective investors should understand that
we may compete with other investment vehicles, as well as investment and commercial banking firms, which have substantially greater resources,
in terms of financial wherewithal and research staffs, than may be available to us.

We may be subject to risks associated with any subsidiaries.

We may in the future invest indirectly through
one or more subsidiaries. Such subsidiaries may include entities that are wholly-owned or primarily controlled by the Company that engage
primarily in investment activities in securities or other assets. In the event that we invest through a subsidiary, we will comply with
the provisions of Section 8 of the 1940 Act governing investment policies on an aggregate basis with any such subsidiary. The Company
also intends to comply with the provisions of Section 18 of the 1940 Act governing capital structure and leverage on an aggregate basis
with any subsidiary, including such that the Company will treat a subsidiary’s debt as its own for purposes of Section