Pearl Diver Credit Company Inc.

Pearl Diver Credit Company Inc. reported a sharp recovery in net asset value for the second quarter of 2026, with NAV per share rising 6.4% to $11.15 from $10.48 at the end of March, driven primarily by $6.7 million in unrealized investment gains as CLO equity liquidity and valuations improved. The company, which invests in CLO equity, saw net assets increase to $77.3 million from $72 million, and reported a net increase in net assets from operations of $8.5 million, or $1.26 per share, compared with a net loss of $22.5 million, or $3.28 per share, in the first quarter. CEO Indranil Basu said CLO equity secondary-market activity strengthened, with May recording roughly $1.9 billion in trading, but cautioned that the largely non-cash, market-driven improvement over a single quarter should not be viewed as a trend. Credit conditions improved as liability spreads tightened, defaults remained low at 1.08%, and refinancing and reset activity increased, allowing the company to reduce its weighted-average debt cost by 33 basis points. Leverage declined to 32.9% of assets, within its target range, and the company maintained its monthly dividend at $0.13 per share for September, October, and November.