Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 77

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 77
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 including investment funds (such as private equity funds, mezzanine
funds, and business development companies) and traditional financial services companies with which the Adviser will compete for experienced
personnel, have greater resources than the Adviser has.

There are significant actual and potential conflicts of interest which could impact our investment returns.

The professional staff of the Adviser will devote
as much time to us as such professionals deem appropriate to perform their duties in accordance with the Investment Advisory Agreement.
However, such persons may be committed to providing investment advisory and other services for other clients, and engage in other business
ventures in which we have no interest. As a result of these separate business activities, the Adviser has conflicts of interest in allocating
management time, services and functions among us, other advisory clients and other business ventures. See “Conflicts of Interest.”

Our incentive fee structure may incentivize the Adviser to pursue speculative investments, use leverage when it may be unwise to do so, or refrain from de-levering when it would otherwise be appropriate to do so.

The incentive fee payable by us to the Adviser
may create an incentive for the Adviser to pursue investments on our behalf that are riskier or more speculative than would be the case
in the absence of such compensation arrangement. Such a practice could result in our investing in more speculative securities than would
otherwise be the case, which could result in higher investment losses, particularly during economic downturns. The incentive fee payable
to the Adviser is based on our Pre-Incentive Fee Net Investment Income, as calculated in accordance with our Investment Advisory Agreement.
This may encourage the Adviser to use leverage to increase the return on our investments, even when it may not be appropriate to do so,
and to refrain from de-levering when it would otherwise be appropriate to do so. Under certain circumstances, the use of leverage may
increase the likelihood of default, which would impair the value of our securities. See “— Risks Related to Our Investments — We may leverage our portfolio, which would magnify the potential for gain or loss on amounts invested and increase the risk of investing in us.”

A general increase in interest rates may have the effect of making it easier for the Adviser to receive incentive fees, without necessarily resulting in an increase in our net earnings.

Given the structure of our Investment Advisory
Agreement, any general increase in interest rates will likely have the effect of making it easier for the Adviser to meet the quarterly
hurdle rate for