Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 28

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 28
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 subject to a higher degree of loss since the use of leverage magnifies losses.                                      |

| · | Liquidity Risk. The market for CLO securities is more limited than the market for other                                                       
 credit related investments. As such, we may not be able to sell such investments quickly, or at all. If we are able to sell such investments, 
 the prices we receive may not reflect our assessment of their fair value or the amount paid for such investments by us.                       |

| · | Prepayment Risk. The assets underlying the CLO securities in which we intend to invest are                                                    
 subject to prepayment by the underlying corporate borrowers. In addition, the CLO securities and related investments in which we invest       
 are subject to prepayment risk. If we or a CLO collateral manager are unable to reinvest prepaid amounts in a new investment with an expected 
 rate of return at least equal to that of the investment repaid, our investment performance will be adversely impacted.                        |

| · | Reinvestment Risk. CLOs will typically generate cash from asset repayments and sales that                                                         
 may be reinvested in substitute assets, subject to compliance with applicable investment tests. If the CLO collateral manager causes the          
 CLO to purchase substitute assets at a lower yield than those initially acquired (for example, during periods of loan compression or as           
 may be required to satisfy a CLO’s covenants) or sale proceeds are maintained temporarily in cash, it would reduce the excess interest-related    
 cash flow, thereby having a negative effect on the fair value of our assets and the market value of our securities. In addition, the reinvestment 
 period for a CLO may terminate early, which would cause the holders of the CLO’s securities to receive principal payments earlier                 
 than anticipated. There can be no assurance that we will be able to reinvest such amounts in an alternative investment that provides a            
 comparable return relative to the credit risk assumed.                                                                                            |

| · | Counterparty Risk. We may be exposed to counterparty risk, which could make it difficult                              
 for us or the CLOs in which we invest to collect on obligations, thereby resulting in potentially significant losses. |

| 14 |

| · | CLO Warehouse Risk. The Company will invest in participations in CLO Warehouses provided                                                  
 for the purposes of enabling the borrowers to acquire assets (“Collateral”) which are ultimately intended to be used to collateralize     
 securities to be issued pursuant to a CLO transaction. The Company’s participation in