NexPoint Capital, Inc. BDC Investor Lawsuit Investigation Update (April 2026)
Investors in NexPoint Capital, Inc., a publicly registered non-traded Business Development Company (BDC), should be aware of new developments involving declining share value (NAV), ongoing distributions, and limited liquidity options.
Recent disclosures show that while the company has resumed paying distributions, its net asset value continues to trend downward, raising concerns about long-term investor outcomes.
If you suffered losses in NexPoint Capital, you may have recovery options. Call The White Law Group at 888-637-5510 for a free consultation.
April 2026 Update: Distribution Paid Despite Continued NAV Decline
NexPoint Capital declared a $0.09 per share cash distribution for shareholders of record as of March 31, 2026 (paid April 13, 2026).
However, this distribution comes as the company’s NAV continues to decline, which may be a red flag for investors.
In some cases, distributions from non-traded BDCs may include a return of investor capital, rather than true income.
NAV Trend Shows Both Short-Term and Long-Term Decline
- March 31, 2026: $4.30 per share
- March 23, 2026: $4.35 per share
- February 28, 2026: $4.40 per share
- January 2026: $4.43 per share
- Year-End 2025: $4.60 per share
- 2023: $5.36 per share
- 2020: $6.13 per share
Short-term decline (2026): ~6.5% since year-end 2025
Long-term decline (2020–2026): ~29.9%
In other words, some investors may have lost more than half of their original investment value on paper, especially considering many shares were sold at $10.00 per share.
Why This Matters
This is not just a short-term fluctuation — it reflects a multi-year pattern of declining value, which is critical for retail investors relying on these investments for income or stability.
DRIP Pricing Tied to Declining NAV
The company’s Dividend Reinvestment Plan (DRIP) is directly tied to NAV:
- Current DRIP price: $4.30 per share
- Pricing must be between NAV and up to 2.5% above NAV
This means investors reinvesting distributions are buying shares at a lower and declining valuation, which can compound losses over time.
Limited Liquidity: Tender Offer Only Covers 1% of Shares
In February 2026, NexPoint Capital launched a tender offer to repurchase up to 1% of outstanding shares at approximately $4.43 per share.
While this provides a potential exit:
- It is extremely limited
- Not all investors will be able to participate
- Many investors may remain locked into the investment
Governance Update: Board Realignment
Earlier in 2026, NexPoint Capital announced a board restructuring following the passing of a director.
The company stated:
- The change was structural only
- Committee assignments remain unchanged
- Audit oversight continuity was maintained
Even technical governance changes matter, as the board plays a key role in:
- Valuation oversight
- Distribution decisions
- Risk management
Investment Strategy: Heavy Focus on Healthcare
NexPoint Capital is heavily concentrated in healthcare-related investments, including:
- Senior housing
- Medical facilities
- Long-term care properties
While this strategy targets an aging population, it also introduces:
- Sector concentration risk
- Regulatory and reimbursement exposure
- Sensitivity to healthcare market conditions
Risks of Non-Traded BDC Investments
Non-traded BDCs like NexPoint Capital often involve:
- Limited liquidity
- Lack of price transparency
- Complex valuation methods
- High fees and commissions
- Long holding periods
These risks can be significant, particularly for retail investors seeking income or capital preservation.
Broker Responsibilities and Potential Liability
Financial advisors recommending NexPoint Capital must:
- Perform adequate due diligence
- Ensure the investment is suitable
- Fully disclose risks
- Avoid overconcentration in illiquid products
Failure to meet these obligations may lead to claims through FINRA arbitration.
Learn more about your rights in our Failure to Supervise and Non-Traded BDC investment risk pages.
NexPoint Capital Losses — Legal Options for Investors
The White Law Group is investigating potential claims involving:
- Unsuitable investment recommendations
- Overconcentration in alternative investments
- Failure to disclose risks
- Due diligence failures
- Misrepresentation of income potential
Investors who suffered losses may be able to pursue recovery through FINRA arbitration claims.
Speak With a Securities Attorney Today
If you invested in NexPoint Capital and experienced losses, you may be able to recover losses through FINRA arbitration.
Call The White Law Group at 888-637-5510
Free, no-obligation consultation
FAQs — NexPoint Capital BDC Update (2026)
Why is NexPoint Capital paying distributions if NAV is declining?
Distributions may include a return of capital, not just income. When NAV declines while distributions continue, it can indicate that investors are receiving back part of their original investment.
How much has NexPoint Capital’s NAV declined?
NAV has fallen from $6.13 in 2020 to $4.30 in 2026, a decline of nearly 30%, and significantly more compared to the original $10 offering price.
What is the DRIP and should I be concerned?
The Dividend Reinvestment Plan allows investors to reinvest distributions into new shares. However, shares are currently issued at $4.30, meaning reinvestment occurs at a declining valuation.
Is there any way to sell NexPoint Capital shares?
Liquidity is limited. The company recently offered to repurchase only 1% of outstanding shares, meaning most investors cannot fully exit the investment.
Can I recover my NexPoint Capital investment losses?
Possibly. Investors may have claims if the investment was unsuitable or risks were not properly disclosed. These cases are typically handled through FINRA arbitration.
