Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 27

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 27
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 that enough appropriate investments that meet our investment criteria will be available.

The following is a summary of certain principal
risks of an investment in us. See “Risk Factors” for a more complete discussion of the risks of investing in
shares of our common stock, including certain risks not summarized below.

| · | Risks of Investing in CLOs and Other Structured Finance Securities. CLOs and other structured                                                   
 finance securities are generally backed by a pool of credit assets that serve as collateral. Accordingly, CLO and structured finance securities 
 present risks similar to those of other types of credit investments, including default (credit), interest rate, and prepayment risks.           
 In addition, CLOs and other structured finance securities are often governed by a complex series of legal documents and contracts, which        
 increases the risk of dispute over the interpretation and enforceability of such documents relative to other types of investments. There        
 is also a risk that the trustee of a CLO does not properly carry out its duties to the CLO, potentially resulting in loss to the CLO.           
 CLOs are also inherently leveraged vehicles and are subject to leverage risk. See “Risks Related to Our Investments — Our                       
 investments in CLO securities and other structured finance securities involve certain risks.”                                                   |

| · | Dependence on CLO Managers Risk. The performance of the CLOs in which we invest is highly                                            
 dependent on the quality of the respective CLO Managers. The CLO Manager’s responsibilities include managing insolvency proceedings, 
 loan workouts and modifications, liquidations, and reporting on the performance of the loan pool to the trustee.                     |

| · | 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 (