Company: PDCC
Filing Date: 2025-03-11
Form Type: N-CSR
Source: 0001398344-25-005419
Chunk: 10

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-03-11
Form: N-CSR
Chunk 10
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 contribution under Section
351(a) of the Internal Revenue Code of 1986, as amended. The Private Fund contributed a total market value of $88,570,541 of investments,
which was comprised of a cost basis of investments contributed of $86,493,313 and unrealized appreciation of $2,077,228. The reorganization
resulted in the issuance of 4,226,473 shares. The Company experienced an unrealized gain of $508,545 for the period from July 9, 2024
(date of reorganization) to December 31, 2024. Pearl Diver Capital LLP or the “Adviser”, is our investment adviser and manages
our investments subject to the supervision of our board of directors. ALPS Fund Services, Inc., or the “Administrator”, serves
as our administrator. For further detail please refer to “Note 5. Related Party Transactions.” Financial statements for the
Private Fund were included in the SEC filings associated with the Company’s commons stock and preferred stock offerings. Fees associated
with the Company’s reorganization and common stock offering were borne by the Predecessor Fund and the Advisor, respectively.

Our primary investment objective is to generate high
current income, with a secondary objective to generate capital appreciation. We seek to achieve our investment objectives by investing
primarily in third-party CLO equity and mezzanine tranches of predominately U.S.-dollar denominated CLOs backed by corporate leveraged
loans issued primarily to U.S. obligors. This investment strategy looks to opportunistically shift between the primary and secondary CLO
markets, seeking to identify the most compelling relative value. Our focus is on the primary CLO market (i.e., acquiring securities at
the inception of a CLO) when the discrepancy between the value of a CLO’s assets and liabilities is believed to present an attractive
investment opportunity. We will opportunistically switch to the secondary market (i.e., acquiring existing CLO securities) during times
of market volatility or when we identify attractive investment opportunities. The Adviser aims to identify top-tier CLO managers with
proven track records of outperformance through increasing the value of the loans held by the CLO, generation of high equity distributions
and active portfolio management. Additionally, the strategy is focused on CLOs with attractive structures which include flexibility for
the CLO manager, strong cushions on covenants and cash flow ratios, terms that are favorable to the holders of CLO