Pearl Diver Credit Company Inc. · NYSE:PDCC
Pearl Diver Credit — Q1 2025 Earnings Presentation
23 slides from Pearl Diver Credit's earnings presentation, Apr 29, 2025
Slide 1: Pearl Diver Credit Company Inc. 2025 Q1 Earnings Presentation
Pearl Diver Credit Company Inc. (NYSE: PDCC, PDPA) 2025 Q1 Earnings Presentation April 29, 2025 1
Slide 2: Disclaimer
Disclaimer This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with Pearl Diver Credit Company Inc. (“PDCC” or the “Company”) or any of its affiliates. This presentation is provided for inf
Slide 3: Forward-Looking Statements
Forward-Looking Statements The following presentation includes certain forward-looking statements of the Company’s management. Forward- looking statements are statements that estimate the happening of future events and are not based on historical fact. Forward- looking statements may be identified b
Slide 4: Introduction to PDCC Inc.
© PEARL DIVER CREDIT COMPANY Introduction to PDCC Inc.
Slide 5: PDCC Inc. Overview
PDCC Inc. Overview Focused on maximizing a diversified CLO equity portfolio’s total return while generating high current income Overview Portfolio as of March 31, 2025 IPO on July 18, 2024 – traded on the NYSE: PDCC $124.6M 50 CLOs Public offering of 8.00% Series A Preferred Stock Due 2029 Portf
Slide 6: Key Investment Highlights
Key Investment Highlights Specialists in structuring, valuing, and investing in portfolio of senior secured corporate loans/CLOs Top-tier Global Investment Team Consistent industry-leading 16-year track record of strong, risk adjusted returns Dedicated specialist CLO note investor, not a CLO iss
Slide 7: The Investment Adviser – Pearl Diver Capital LLP
The Investment Adviser – Pearl Diver Capital LLP 7
Slide 8: Leadership Team
Leadership Team Formed in 2008 by Indranil “Neil” Basu and Chandrajit “CJ” Chakraborty Deep expertise in credit, structured finance, and investment business management Indranil “Neil” Basu Chandrajit “CJ” Chakraborty Matthew Layton Tim Carroll CEO, Managing Partner CIO, Managing Partner Head of Euro
Slide 9: The Investment Adviser
The Investment Adviser History of outperformance spanning 15+ years with combined lifetime net IRR of 13.7%¹ 140+ years of collective experience in analyzing, structuring, and trading CLO 10 investment professionals exclusively dedicated to CLO investing $2.8B 850+ 80+ 13.7% AUM (CLO Investments Onl
Slide 10: Investment Process and Risk Management
Investment Process and Risk Management Pearl Diver’s investment philosophy and portfolio management are fortified by our technology Portfolio Construction Real-time Credit Risk Pricing We take a line-by-line approach to credit, assigning an in-house rating for each loan in every CLO Balanced Appro
Slide 11: Investment Platform
Investment Platform Exclusively focused CLO investor with integrated quantitative approach to credit, securitization analytics, and trading Machine Learning Trading, Corporate Fundamental Credit I Analytics Platform II Based Quantitative III Restructuring, Infrastructure & Relationship Skills Prop
Slide 12: The CLO Market and CLO Equity
The CLO Market and CLO Equity 12
Slide 13: CLO Market Size
CLO Market Size Market Size in Context¹ U.S. CLO Market Size by Year² Outstanding CLO paper stands at ~$950 billion in $936 $953 the U.S. and $215 billion in Europe $840 Equity $112 BB/B 43 Investment grade tranches account for 83.4% $664 $732 BBB $57 while CLO mezzanine and equity account for t
Slide 14: CLO Legal Structure
CLO Legal Structure CLOs resemble the structure of a simplified bank and facilitate the flow of capital from investors to borrowers¹ Illustrative Borrowers³ CLO Summary² Broadly Syndicated Loans Structure: Simple bankruptcy (Corporations) remote trust structure (SPV) Assets: Senior secured corporate
Slide 15: CLO Equity Overview
CLO Equity Overview CLOs are securitizations of diverse portfolios of senior secured loans Structure Highlights¹ Representative CLO Balance Sheet¹ Assets Liabilities & Equity Cash-flow CLOs fund purchase of a diverse portfolio of senior secured corporate loans Achieved through issuance of long-term
Slide 16: CLO Equity Overview: Historical Returns and Projected Cash-on-Cash
CLO Equity Overview Generated strong and stable historical returns A CLO equity typically offers a short payback period with high front-loaded quarterly cash flows Historical U.S. Cash Flow CLOs – Quarterly distributions (2018Q1-2023Q4)¹ 30% U.S. CLO Equity averaged over 15% annualized cash distribu
Slide 17: Broadly Syndicated Corporate Loans – The Feedstock of CLOs
Broadly Syndicated Corporate Loans –The Feedstock of CLOs Attributes Representative Capital Structure Senior: Senior position in corporate borrower’s capital structure Senior Secured Loans 30-50% Secured: First lien security interest on corporate borrower’s assets Recovery Seniority Bonds (Senior Un
Slide 18: Q1 Earnings and Portfolio Highlights
Q1 Earnings and Portfolio Highlights 18
Slide 19: Results for the Quarter Ended March 31, 2025
Results for the Quarter Ended March 31, 2025 Portfolio and Investment Operating Results Dividend and Capital Activity Activity Invested $28.6 million in primary Investment income of $6.0 and secondary CLO equity million, or $0.89 per share investments NAV per share of $18.33 Net investment i
Slide 20: Summary Financial Statements for the Quarter Ended March 31, 2025
Summary Financial Statements for the Quarter Ended March 31, 2025 Summary Balance Sheet at March 31, 2025 (unaudited) Short-term Investments $ 7,661,944 Investments, At Fair Value 165,797,881 Other Assets 195,552 Total Assets $ 173,655,377 Term Preferred Stock, Net of Unamortized Offering Costs $ 33
Slide 21: Portfolio Highlights at March 31, 2025
Portfolio Highlights at March 31, 2025 21
Slide 22: Portfolio Highlights at March 31, 2025
Portfolio Highlights at March 31, 2025 22
Slide 23: Company Information
Company Information Pearl Diver Credit Company Inc. The Investment Adviser 747 Third Ave Suite 3603 Pearl Diver Capital LLP New York, NY 10017 New York: www.pearldivercreditcompany.com 747 Third Ave Suite 3603 New York, NY 10017 Contact: [email protected] London: US: +1 617 872 0945 52 Conduit
Pearl Diver Credit Company — Q1 2025 Earnings Presentation on 6ix