NexPoint Capital, Inc. reported total assets of $46.6 million as of December 31, 2024, a decrease from $51.3 million the previous year. The company's net asset value per share was $5.21, down from $5.35 in 2023. Net investment income for 2024 was $607,948, or $0.07 per share, significantly lower than the $1.7 million, or $0.17 per share, reported in 2023. The decrease in net investment income is partially attributable to net realized losses of $494,867 in 2024 compared to a net realized gain of $329,081 in 2022.
Significant changes in the company's financial performance compared to the previous fiscal year include a decrease in total assets, net asset value per share, and net investment income. The company also reported a net change in unrealized appreciation (depreciation) on investments of $1.9 million in 2024, compared to $4.1 million in 2023. A net loss of $4.1 million was reported for 2022. The company declared a cash distribution of $0.09 per share on January 29, 2025, payable to stockholders of record on December 31, 2024. Liberty CLO Holdco Ltd. acquired 2,549,002 shares of the company's common stock on July 21, 2023, representing 27.05% of outstanding shares.
During 2024, NexPoint Capital made long-term investments totaling $5.6 million and generated proceeds from sales and principal repayments of $12.3 million. The investment portfolio consisted of 26 positions, with 14.2% in first lien senior secured loans, 1.4% in third lien senior secured loans, 0.5% in corporate bonds, 37.7% in common stocks, 25.8% in preferred stocks, and 20.4% in LLC interests. The weighted average cost price of debt investments was 90.29% of par value, and the estimated gross annual portfolio yield was 2.45%.
The company's investment strategy focuses on middle-market companies, with an emphasis on healthcare and syndicated floating rate debt. NexPoint Capital leverages the expertise of its advisor, NexPoint Advisors, L.P., for investment management and administrative support. The company's operations are subject to regulations as a Business Development Company (BDC) and Regulated Investment Company (RIC), which may impact investment opportunities and distribution capabilities.
NexPoint Capital's outlook is subject to various risks, including market volatility, interest rate fluctuations, competition, and the potential for defaults by portfolio companies. The company acknowledges the impact of geopolitical events and the ongoing war in Ukraine, as well as the potential for economic downturns. The company intends to continue its investment strategy, focusing on high-income generating debt investments and income-generating equity securities, while maintaining its RIC and BDC status. The company also intends to continue its share repurchase program.
About NexPoint Capital, Inc.
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