NexPoint Capital is a business development company (BDC) that lends to and invests in middle-market companies, with a focus on healthcare. NexPoint Capital is externally managed by NexPoint Advisors, which handles all day-to-day investment and operational activities and sources deals through a network of accountants, attorneys, bankers, and private equity firms. The portfolio targets four main asset types: debt and equity in middle-market healthcare companies (pharmaceuticals, devices, life sciences, and healthcare facilities), debt and equity in non-healthcare middle-market companies (industrials, manufacturing, chemicals, energy, and real estate), syndicated floating rate loans purchased in the secondary market, and CLO tranches. NexPoint Capital generates revenue primarily through interest income on debt investments, with floating rate loans resetting periodically based on SOFR plus a spread. CLO equity tranches generate residual cash flow income, and equity investments can produce capital gains. As a regulated investment company (RIC), NexPoint Capital distributes at least 90% of investment income to shareholders to avoid corporate-level taxes. The current portfolio is notably equity-heavy — roughly 85% of the portfolio by fair value consists of common stock, preferred stock, and LLC interests — which is atypical for a BDC and reflects a history of distressed situations and restructurings rather than traditional direct lending. NexPoint Capital is a small fund with total assets of approximately $38M and 23 positions, which limits diversification and cost efficiency relative to larger BDC peers.