Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 126

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 126
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centive Fee Net Investment
Income” means interest income, dividend income and any other income (including any other fees, such as commitment, origination,
structuring, diligence and consulting fees or other fees that the Company receives from an investment) accrued during the calendar quarter,
minus the Company’s operating expenses for the quarter (including the base management fee and any interest expense and/or dividends
paid on any issued and outstanding debt or preferred interests, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income
includes, in the case of investments with a deferred interest feature (such as original issue discount, payment-in-kind interest and zero
coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include
any realized or unrealized capital gains or realized or unrealized losses.

Pre-Incentive Fee Net Investment Income, expressed
as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, shall be
compared to a “hurdle rate” of 2.00% per quarter. The Company shall pay the Adviser an Incentive Fee with respect to the Company’s
Pre-Incentive Fee Net Investment Income in each calendar quarter as follows: (1) no Incentive Fee in any calendar quarter in which the
Company’s Pre-Incentive Fee Net Investment Income does not exceed 2.00%; (2) 100% of the Company’s Pre- Incentive Fee Net
Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate of
2.00% but is less than 2.35294% in any calendar quarter; and (3) 15% of the amount of the Company’s Pre-Incentive Fee Net Investment
Income, if any, that exceeds 2.35294% in any calendar quarter.

You should be aware that a rise in the general
level of interest rates can be expected to lead to higher interest rates applicable to our investments. Accordingly, an increase in interest
rates would make it easier for us to meet or exceed the incentive fee hurdle rate and may result in a substantial increase of the amount
of incentive fees payable to the Adviser with respect to Pre-Incentive Fee Net Investment Income.

The portion of such incentive fee that is attributable
to deferred interest (such as PIK interest or original issue discount) will be paid to