Company: PDCC
Filing Date: 2025-09-03
Form Type: N-CSRS
Source: 0001398344-25-017467
Chunk: 19

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-03
Form: N-CSRS
Chunk 19
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 considerations. The risks described in the prospectus are not the only risks the Company faces. Additional risks and uncertainties
not currently known to the Company or that are currently deemed to be immaterial also may materially and adversely affect our business,
financial condition and/or operating results.

Risks of Investing in CLOs and Other Structured Debt Securities

CLOs and other structured finance securities are generally
backed by a pool of credit-related assets that serve as collateral. Accordingly, CLO and structured finance securities present risks similar
to those of other types of credit investments, including default (credit), interest rate and prepayment risks. In addition, CLOs and other
structured finance securities are often governed by a complex series of legal documents and contracts, which increases the risk of dispute
over the interpretation and enforceability of such documents relative to other types of investments.

Subordinated Securities Risk

CLO equity and junior debt securities that
the Company may acquire are subordinated to more senior tranches of CLO debt. CLO equity and junior debt securities are subject to increased
risks of default relative to the holders of senior priority interests in the same CLO. In addition, at the time of issuance, CLO equity
securities are under-collateralized in that the aggregate face amount of the CLO debt and CLO equity of a CLO at inception exceeds the
CLO’s total assets. The Company will typically be in a subordinated or first loss position with respect to realized losses on the
underlying assets held by the CLOs in which the Company is invested.

Credit Risk

If (1) a CLO in which the Company invests,
(2) an underlying asset of any such CLO or (3) any other type of credit investment in the Company’s portfolio declines in price
or fails to pay interest or principal when due because the issuer or debtor, as the case may be, experiences a decline in its financial
status, the Company’s income, net asset value (“NAV”) and/or market price would be adversely impacted.

Key Personnel Risk

The Adviser manages our investments. Consequently,
the Company’s success depends, in large part, upon the services of the Adviser and the skill and expertise of the Adviser’s
professional personnel. There can be no assurance that the professional personnel of the Adviser will continue to serve in their current
positions or continue to be employed by the Adviser. We can offer no assurance that their services will be available for any length of