Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 21

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 21
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 market dislocation.
Such purchases, if made, can mitigate price drops in the current portfolio by making new asset purchases at a discount. Further, such
purchases can potentially contribute to a higher increase in net asset value of the portfolio upon a market rebound than if the purchases
were not made.

Derivative Transactions. We may
engage in “Derivative Transactions,” as described below, from time to time. To the extent we engage in Derivative Transactions,
we expect to do so to hedge against interest rate, currency, credit and/or other risks, or for other risk management purposes. We may
use Derivative Transactions for investment purposes to the extent consistent with our investment objectives if the Adviser deems it appropriate
to do so. We may purchase and sell a variety of derivative instruments, including exchange-listed and over-the-counter, or “OTC”,
options, futures, forward contracts, options on futures, swaps and similar instruments, various interest rate transactions, such as swaps,
caps, floors, or collars, and credit default swaps. We also may purchase and sell derivative instruments that combine features of these
instruments. Collectively, we refer to these financial management techniques as “Derivative Transactions.” No assurance can
be given that our strategy and use of derivatives will be successful, and our investment performance could diminish compared with what
it would have been if Derivative Transactions were not used. See “Risk Factors — Risks Related to Our Investments — We are subject to risks associated with any hedging or Derivative Transactions in which we participate.”

<div align='center'>Operating and Regulatory Structure</div>

We are an externally managed, non-diversified
closed-end management investment company that has registered as an investment company under the 1940 Act. As a registered closed-end management
investment company, we are required to meet certain regulatory tests. See “Regulation as a Closed-End Management Investment Company.” In addition, we have elected to be treated, and intend to qualify annually, as a RIC under Subchapter M of the
Code, beginning with our tax year ending December 31, 2024.

Our investment activities are managed by the Adviser
and overseen by our board of directors. Under the Investment Advisory Agreement, we have agreed to pay the Adviser a base management fee
based on our “Total Equity Base” as well as an incentive fee based on our “Pre-Incentive Fee Net Investment Income”.
“Total Equity Base” means the net asset value attributable to