Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 27

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 27
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 trustee.                     |

| 13 |

| · | Interest Rate Risk. The price of certain of our investments may be significantly affected                                                
 by changes in interest rates. In the event of a significant rising interest rate environment and/or economic downturn, loan defaults may 
 increase and result in credit losses which may adversely affect the Company’s cash flow, fair value of its assets and operating          
 results.                                                                                                                                 |

| · | Market Risk. Political, regulatory, economic and social developments, and developments that                                                
 impact specific economic sectors, industries, or segments of the market, can affect the value of our investments. A disruption or downturn 
 in the capital markets and the credit markets could impair our ability to raise capital, reduce the availability of suitable investment    
 opportunities for us, or adversely and materially affect the value of our investments, any of which would negatively affect our business.  |

| · | Credit Risk. If (1) a CLO in which we invest, (2) an underlying asset of any such CLO, or                                                    
 (3) any other type of credit investment in our portfolio declines in value or fails to pay interest or principal when due because the        
 issuer or debtor, as the case may be, experiences a decline in its financial status, our income, NAV, and/or market price would be adversely 
 impacted.                                                                                                                                    |

| · | Subordinated Securities. CLO equity securities that we may acquire are subordinated to more                                               
 senior tranches of CLO debt. CLO equity securities are subject to increased risks of default relative to the holders of superior priority 
 interests in the same CLO.                                                                                                                |

| · | High-Yield Investment Risk. The CLO equity securities that we hold and intend to acquire                                                  
 are typically unrated and are therefore considered speculative with respect to timely payment of interest and repayment of principal.     
 The collateral of underlying CLOs are also typically higher-yield, sub-investment grade investments. Investing in CLO equity securities   
 and other high-yield investments involves greater credit and liquidity risk than investment grade obligations, which may adversely impact 
 our performance.                                                                                                                          |

| · | Leverage Risk. The use of leverage, whether directly or indirectly through investments such                                              
 as CLO equity securities that inherently involve leverage, may magnify our risk of loss. CLO equity securities are very highly leveraged 
 (with CLO equity securities typically being leveraged nine to 13 times), and therefore the CLO securities that we hold and in which we   
 intend to invest are