NexPoint Capital, Inc. BDC Investor Lawsuit Investigation Updated 2026
Investors who purchased shares of NexPoint Capital, Inc., a publicly registered non-traded Business Development Company (BDC), should be aware of newly reported governance changes and a further decline in net asset value (NAV), according to recent company disclosures. These updates add to earlier concerns previously reported about suspended distributions and share value deterioration.
The securities attorneys at The White Law Group continue to monitor developments involving NexPoint Capital and non-traded BDC investments.
NexPoint Capital Board Realignment Following Director Death
According to a January 2026 company announcement, NexPoint Capital completed a formal board realignment following the passing of a Class I director. To maintain required balance across its three director classes, the board approved a reclassification move involving an existing director, who resigned from a prior class designation and was reappointed into the Class I category.
The company stated that:
- The governance shift was structural in nature
- Committee assignments remain unchanged
- Audit committee leadership continuity was maintained
- The appointment was not based on undisclosed third-party arrangements
- Director compensation continues under existing non-employee director frameworks disclosed in prior proxy materials
While described as technical, governance restructuring events are important for investors in non-traded BDCs because board oversight plays a central role in valuation practices, distribution policy, and portfolio risk management.
NexPoint Capital Reports New NAV Decline
NexPoint Capital also released updated valuation data showing a further drop in NAV per share.
Recent reported NAV figures:
- NAV as of Dec. 31, 2025: $4.60 per share
- Prior NAV (Dec. 16, 2025): $4.75 per share
- Approximate decline: 3.16%
This follows earlier historical reductions in reported share value and comes after prior distribution suspensions announced in 2020 due to market volatility. Shares were originally sold to many investors at $10.00 per share, making NAV compression a continuing concern for some holders.
NexPoint Capital Investment Strategy and Risk Profile
NexPoint Capital is structured as a Business Development Company (BDC).
Like many non-traded BDCs, these investments may involve:
- Limited liquidity
- Complex valuation methods
- High upfront commissions and fees
- Elevated credit and sector concentration risk
- Dependence on sponsor underwriting and ongoing asset management
BDCs are often marketed for yield, but investors may face restrictions on redemptions and price transparency.
Suitability and Due Diligence Obligations for Brokerage Firms
Broker-dealers and financial advisors recommending non-traded BDC investments such as NexPoint Capital are required to:
- Conduct reasonable due diligence
- Understand product structure and risks
- Ensure recommendations are suitable for the client’s financial profile
- Disclose material risks and limitations
- Avoid overconcentration in illiquid alternative investments
Failure to meet these obligations can lead to investor claims through FINRA arbitration when losses occur.
NexPoint Capital Investment Losses — Legal Options for Investors
The White Law Group is investigating potential claims involving:
- Non-traded BDC recommendations
- Illiquid alternative investment concentration
- Suitability failures
- Due diligence shortcomings
- Risk disclosure issues
Investors who suffered losses in NexPoint Capital, Inc. may have recovery options through a FINRA Dispute Resolution claim against the brokerage firm that recommended the investment.
Concerned about NexPoint Capital losses?
You can contact The White Law Group at 888-637-5510 for a no-cost consultation regarding your potential FINRA arbitration claim.
FAQs — NexPoint Capital BDC Update
Is NexPoint Capital a non-traded BDC?
Yes. NexPoint Capital is a publicly registered but non-traded Business Development Company, meaning its shares are not listed on a national exchange and liquidity may be limited.
Why does NAV matter for NexPoint Capital investors?
NAV per share is one of the primary indicators of estimated share value in non-traded BDCs and can reflect portfolio performance and valuation adjustments.
Can investors recover NexPoint Capital losses through FINRA arbitration?
Possibly. Recovery may be available if the investment was unsuitable, risks were not properly disclosed, or due diligence obligations were not met by the recommending brokerage firm.
