Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 211

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 211
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 its trade date.

Rule 18f-4 requires that
a registered investment company that invests in Derivative Transactions above a specified amount adopt and implement a derivatives risk
management program administered by a derivatives risk manager that is appointed by and overseen by the fund’s board, and comply
with an outer limit on fund leverage risk based on value at risk. A fund that uses Derivative Transactions in a limited amount is considered
a “limited derivatives user,” as defined in Rule 18f-4 and is not be subject to the full requirements of Rule 18f-4, but does
have to adopt and implement policies and procedures reasonably designed to manage the fund’s derivatives risk. A fund is subject
to reporting and recordkeeping requirements regarding its use of Derivative Transactions.

The requirements of Rule
18f-4 may limit the Company’s ability to engage in Derivative Transactions as part of its investment strategies. These requirements
may also increase the cost of the Company’s investments and cost of doing business, which could adversely affect the value of the
Company’s investments and/or the performance of the Company. The rule also may not be effective to limit the Company’s risk
of loss. In particular, measurements of VaR rely on historical data and may not accurately measure the degree of risk reflected in a Company’s
derivatives or other investments. There may be additional regulation of the use of Derivative Transactions by registered investment companies,
which could significantly affect their use. The ultimate impact of the regulations remains unclear. Additional regulation of Derivative
Transactions may make them more costly, limit their availability or utility, otherwise adversely affect their performance or disrupt markets.

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Forward Foreign Currency Contracts.A forward foreign currency contract involves a negotiated obligation to purchase or sell a specific currency at a future
date or range of future dates (with or without delivery required), which may be any fixed number of days from the date of the contract
agreed upon by the parties, at a price set at the time of the contract. These contracts are generally traded in the interbank market conducted
directly between currency traders (usually large, commercial banks) and their customers. A forward foreign currency contract generally
has no deposit requirement, and no commissions are charged at any stage for trades.

Forward contracts generally
may not be liquidated prior to the stated maturity date, although the parties to a contract may agree to enter into a second offsetting
transaction with the same maturity, thereby fixing each party’s profit or loss on the two transactions.