NexPoint Capital Inc. Investor Alert

Soreide Law Group is investigating potential investor claims involving NexPoint Capital Inc., a non-traded business development company (BDC), including whether securities brokers and financial advisors improperly recommended this investment despite declining valuations and structural risks. NexPoint Capital was marketed as an income-focused alternative investment, but recent disclosures raise concerns that investors should carefully review. There is adverse information about this product—including declining net asset value (NAV), pricing practices tied to internal valuations, and liquidity limitations—that investors should understand. The following sections summarize key facts and potential concerns.

Overview

NexPoint Capital Inc. is a Delaware-incorporated, publicly registered non-traded BDC headquartered in Dallas, Texas. As a BDC, it invests in private companies and debt instruments, often targeting income generation. Because it is non-traded, its shares are not listed on an exchange, and investors typically rely on periodic NAV calculations rather than market prices. The company’s investment adviser determines NAV under board-approved valuation policies. As of December 16, 2025, NexPoint Capital reported a NAV of $4.75 per share. This NAV also serves as the basis for pricing shares issued through its distribution reinvestment plan (DRP), where shares are issued at a price not less than NAV and not more than 2.5% above NAV, at the adviser’s discretion. This structure means investors purchasing through the DRP may pay a premium to internally determined valuations.

Investor Concerns About NexPoint Capital Inc.

Several developments raise concerns for investors. According to a Form 8-K, the company reported a NAV of $4.75 per share in mid-December 2025, followed by a decline to approximately $4.60 per share by month-end, representing a drop of about 3.16%. This is significant given that many investors originally purchased shares at approximately $10, indicating substantial long-term value erosion. Additionally, the DRP pricing mechanism allows shares to be issued above NAV, potentially exposing investors to immediate unrealized losses if valuations decline. The investment also carries typical non-traded BDC risks, including limited liquidity, meaning investors may be unable to sell shares readily, and reliance on internal valuation processes rather than transparent market pricing. Governance changes, such as board restructuring, may also impact oversight of valuation and investment decisions.

Potential Sales Practice Violations

Given these product-specific features, potential sales practice violations related to NexPoint Capital Inc. may include recommending this illiquid, non-traded BDC to investors who needed access to their funds or had low risk tolerance. Brokers may have failed to clearly explain that the NAV had significantly declined from the original offering price or that shares could be valued below purchase price for extended periods. Some investors may not have been told that DRP shares could be issued above NAV, or that internal pricing does not reflect a true market exit value. Additionally, advisors may have inadequately disclosed prior distribution suspensions, the risks of continued NAV deterioration, or the impact of high fees and commissions commonly associated with non-traded BDCs. Overconcentration in this single alternative investment or failure to perform adequate due diligence on NexPoint Capital’s valuation methodology and portfolio risks could also form the basis of investor claims.

Did You Incur Losses By Investing In NexPoint Capital Inc.?

Do you have concerns or questions regarding investments you made in NexPoint Capital Inc. because of your financial advisor or securities broker? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney about a possible recovery of your investment losses. Soreide Law Group has recovered losses for many investors throughout the US. Our securities lawyers work on a contingency fee arrangement and advance all costs.