Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 9

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 9
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 to invest are typically unrated and are considered speculative with respect to timing and amount of distributions. Below investment
grade and unrated securities are also sometimes referred to as “junk” securities.

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The Company has adopted a non-fundamental
investment policy in accordance with Rule 35d-1 under the 1940 Act to invest, under normal circumstances, at least 80% of its net assets,
plus the amount of any borrowings for investment purposes, in credit instruments. The Company defines “credit instruments”
as financial instruments the performance of which is derived from the performance of senior secured loans or pools thereof. Instruments
that the company considers to be “credit instruments” include, but are not limited to, senior, mezzanine, and junior debt
tranches of CLOs, equity tranches of CLOs, and CLO Warehouses.

These investment objectives and strategies are
not fundamental policies of ours and may be changed by our board of directors without prior approval of our stockholders. See “Business.”

CLOs represent an efficient way for investors
to access diversified portfolios of broadly syndicated senior secured loans. We seek to invest in CLO securities that the Adviser believes
have the potential to generate attractive risk-adjusted returns and to outperform other similar CLO securities issued within the respective
vintage period, in the primary CLO market (i.e.,acquiring securities at the inception of a CLO), as well as in the secondary CLO
market (i.e.,acquiring existing CLO securities).

CLO equity, which is expected to comprise most,
if not all, of the positions in the Company, is an illiquid investment. For the most part, CLO equity trades “by appointment”
and trading prices are heavily negotiated. Projected cashflows to CLO equity involve a number of assumptions about the future, including
interest rates, reinvestment spreads on loans bought in the future, loan default and prepayment rates, and other factors that may be difficult
to predict. As such, CLO equity is considered a “speculative” investment by rating agencies and there is generally no standard
methodology or observable market that allows a buyer or seller to easily price a CLO equity position at the time of trade.

The Company may acquire (i) CLO equity positions
via primary market transactions, (ii) CLO equity positions via secondary market transactions, and (iii) positions of CLO junior debt in
both the primary and secondary