Company: PDCC
Filing Date: 2025-03-11
Form Type: N-CSR
Source: 0001398344-25-005419
Chunk: 25

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-03-11
Form: N-CSR
Chunk 25
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 the
Fund under the Master Repurchase Agreements (“MRA”) which permits the Fund, under certain circumstances, including an event
or default of the Fund (such as bankruptcy or insolvency), to offset payables under the MRA with collateral held with the counterparty
and create one single net payment from the Fund. Upon bankruptcy or insolvency of the MRA counterparty, the Fund is considered an unsecured
creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed. In the event the buyer of securities
(i.e. the MRA counterparty) under a MRA files for bankruptcy or becomes insolvent the Fund’s use of the proceeds of the agreement may
be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Fund’s obligation to repurchase
the securities.

5. RELATED PARTY TRANSACTIONS

Investment Adviser

The Investment Advisory Agreement was approved by
the board of directors on May 31, 2024. On July 12, 2024, the Company entered into an investment advisory agreement with the Adviser (the
“Advisory Agreement”). Pursuant to the terms of the Advisory Agreement, the Company pays the Adviser, for its services, a
management fee equal to an annual rate of 1.50% of our Total Equity Base which is calculated quarterly and payable quarterly in arrears.
“Total Equity Base” means the NAV attributable to the common stock (prior to the application of the base management fee or
incentive fee) and the paid-in or stated capital of the preferred interests in the Company (howsoever called), including the Series A
Preferred Shares, if any. For the period from July 9, 2024 (date of reorganization), through December 31, 2024, the Company was charged
a management fee of $987,641, of which $559,868 was payable as of December 31, 2024.

The incentive fee is calculated and payable quarterly
in arrears and equals 15% of our “Pre-Incentive Fee Net Investment Income” for the immediately preceding calendar quarter,
subject to a hurdle and a “catch up” feature. No incentive fees are payable to our Adviser in respect of any capital gains.
For this purpose, “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including
any other fees, such as commitment,