Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 43

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 43
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 investors of the CLO, typically do not have any direct contractual relationship with the collateral managers
of the CLOs in which we invest. The ability of each CLO collateral manager to identify and report on issues affecting its securitization
portfolio on a timely basis could also affect the return on our investments, as we may not be provided with information on a timely basis
in order to take appropriate measures to manage our risks. We will also rely on CLO collateral managers to act in the best interests of
a CLO it manages; however, there can be no assurance that the collateral managers will always act in the best interest of the class or
classes of securities in which we are invested. If any CLO collateral manager were to act in a manner that was not in the best interest
of the CLOs (e.g., with gross negligence, with reckless disregard or in bad faith), this could adversely impact the overall performance
of our investments. Furthermore, since the underlying CLO issuer often provides an indemnity to its CLO collateral manager, we may not
be incentivized to pursue actions against the collateral manager since any such action, if successful, may ultimately be borne by the
underlying CLO issuer and payable from its assets, which could create losses to us as investors in the CLO. In addition, liabilities incurred
by the CLO manger to third parties may be borne by us as investors in CLO equity to the extent the CLO is required to indemnify its collateral
manager for such liabilities.

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In addition, the CLOs in which we invest are generally
not registered as investment companies under the 1940 Act. As investors in these CLOs, we are not afforded the protections that stockholders
in an investment company registered under the 1940 Act would have.

The collateral managers of the CLOs in which we intend to invest may not continue to manage such CLOs.

Because we intend to invest in CLO securities
issued by CLOs that are managed by collateral managers that are unaffiliated with the Adviser, there is no guarantee that, for any CLO
we invest in, the collateral manager in place at the time of investment will remain in place through the life of our investment. Collateral
managers are subject to removal or replacement by subject to the consent of the majority of the equity investors in the CLO, and may also
voluntarily resign as collateral manager or assign their role as collateral