Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 67

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 67
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 of the equity tranche will direct a call of
a CLO, causing such CLO’s outstanding CLO debt securities to be repaid at par earlier than expected and result in a return of capital
to us. 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 called CLO.

We and our investments are subject to risks associated with non-U.S. investing.

While we invest primarily in CLOs that hold underlying
U.S. assets, most of these CLOs are expected to be organized outside the United States and we may also invest in CLOs that hold collateral
that are non-U.S. assets.

Investing in foreign entities may expose us to
additional risks not typically associated with investing in U.S. issuers. These risks include changes in exchange control regulations,
political and social instability, restrictions on the types or amounts of investment, expropriation, imposition of foreign taxes, less
liquid markets, less available information than is generally the case in the U.S., higher transaction costs, less government supervision
of exchanges, brokers, and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting
and auditing standards, currency fluctuations, and greater price volatility. Further, we, and the CLOs in which we invest, may have difficulty
enforcing creditor’s rights in foreign jurisdictions.

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In addition, international trade tensions may
arise from time to time which could result in trade tariffs, embargoes, or other restrictions or limitations on trade. The imposition
of any actions on trade could trigger a significant reduction in international trade, supply chain disruptions, an oversupply of certain
manufactured goods, substantial price reductions of goods, and possible failure of individual companies or industries which could have
a negative impact on the value of the CLO securities that we hold.

Foreign markets also have different clearance
and settlement procedures, and in certain markets there have been times when settlements have failed to keep pace with the volume of securities
transactions, making it difficult to conduct such transactions. Delays in settlement could result in periods when our assets are uninvested.
Our inability to make intended investments due to settlement problems or the risk of intermediary counterparty failures could cause it
to miss investment opportunities. The inability to dispose of an investment due to settlement problems could result either in losses to
the Company due to subsequent declines in the value of such investment or, if we