Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 92

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 92
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 collateral managers
of open market CLOs are no longer required to comply with the Final U.S. Risk Retention Rules at this time.

There can be no assurance or representation
that any of the transactions, structures or arrangements currently under consideration by or currently used by CLO market participants
will comply with the Final U.S. Risk Retention Rules to the extent such rules are reinstated or otherwise become applicable to open market
CLOs. The ultimate impact of the Final U.S. Risk Retention Rules on the loan securitization market and the leveraged loan market generally
remains uncertain, and any negative impact on secondary market liquidity for securities comprising a CLO may be experienced due to the
effects of the Final U.S. Risk Retention Rules on market expectations or uncertainty, the relative appeal of other investments not impacted
by the Final U.S. Risk Retention Rules and other factors.

In the European Union, there has
also been an increase in political and regulatory scrutiny of the securitization industry. Regulation EU 2017/2402 of the European Parliament
and the Council of 12 December 2017 laying down a general framework for securitization and creating a specific framework for simple,
transparent and standardized securitization (as may be amended from time to time and including any delegated or implementing legislation
with respect thereto, the “Securitization Regulation”) became effective on January 17, 2018 and applies to all new securitizations
issued on or after January 1, 2019. The Securitization Regulation repealed and replaced the prior EU risk retention requirements with
a single regime that applies to European credit institutions, investment firms, insurance and reinsurance companies, alternative investment
fund managers that manage and/or market their alternative investment funds in the EU, undertakings for collective investment in transferable
securities regulated pursuant to EU Directive 2009/65/EC and the management companies thereof and, subject to some exceptions, institutions
for occupational pension provision (“IORPs”), each as set out in the Securitization Regulation (such investors, “EU
Affected Investors”). Such EU Affected Investors may be subject to punitive capital requirements and/or other regulatory penalties
with respect to investments in securitizations that fail to comply with the Securitization Regulation.

| 59 |

The Securitization Regulation restricts
an EU Affected Investor from investing in securitizations unless, among other things: (