Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 131

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 131
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, when deciding whether or not to effect a refinancing or reset
of a CLO, performs a cost-benefit analysis that takes these costs into account. In general, a refinancing or reset of a CLO can
increase cashflows to the equity positions held by the Company by lowering the cost of the CLO’s liabilities.

| • | Long-term investment horizon. We believe in a long-term investment horizon for our portfolio.                                                   
 We seek to maximize the reinvestment periods of our CLOs wherever possible in the primary market. We also plan to extend, wherever appropriate, 
 the reinvestment periods of CLOs we own in the portfolio today. We do not plan to purchase CLOs with the primary goal to “flip,”                
 or trade in the short term, positions that we purchase.                                                                                         |

| 71 |

We believe that the long-term capital
structure of our vehicle confers a number of advantages on our core strategy. First, as a result of our permanent, closed-end structure,
we are not subject to any mandatory liquidation, dissolution or wind-up requirement and, therefore, the Adviser will never have to involuntarily
liquidate a given position to meet a redemption. Involuntary liquidations of positions at inopportune times can often lead to a poor investment
outcome for those positions in particular, but also for the portfolio as a whole, disadvantaging certain investors who do not redeem at
the same time. Second, the Adviser can take a long-term view to making new investments that may not, in the short term, provide high income
relative to their costs. Such CLO investments can often create robust returns through capital appreciation in their underlying loan portfolios
rather than through high current income. Finally, our vehicle allows us to manage our portfolio to provide stable yields through market
cycles. As we rarely will seek to liquidate positions, the current market value of our portfolio is not of primary concern. Rather, we
seek to maximize the dividend yield and ultimate return to our shareholders. In cases where the Adviser believes a position’s future
cashflows will provide an appropriate return to our shareholders, even if the current market price of that position is low, the Adviser
can retain the position in the portfolio to create yield rather than decide to sell the position to prevent short-term NAV deterioration.
Over time, this creates, in our opinion, a better opportunity to create a stable dividend stream for our investors.

| • | Efficient tax structure. A closed