Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 124

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 124
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 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 the Adviser, without interest, only if and to the
extent we actually receive such deferred interest in cash, and any accrual will be reversed if and to the extent such interest is reversed
in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual. Any reversal of
such amounts would reduce net income for the quarter by the net amount of the reversal (after taking into account the reversal of incentive
fees payable) and would result in a reduction of the incentive fees for such quarter.

No incentive fee is