Not all nontraded BDCs provide shareholders with the same type or amount of potential liquidity. NexPoint Capital, Inc., a publicly registered nontraded BDC, announced a voluntary tender offer in August to purchase up to 1% of its outstanding common shares. The shares will be purchased at a price of not less than the fund’s NAV per share calculated following expiration of the offer, plus any unpaid dividends accrued through the expiration date. NexPoint reported its most recently approved NAV at $4.67 per share as of July 31.
The offer provides a useful contrast with perpetual-life nontraded BDCs that commonly operate share repurchase programs targeting as much as 5% of shares or NAV each quarter. NexPoint’s tender is a specific offer authorized by the company rather than a standing promise of 5% quarterly liquidity. In fact, NexPoint has conducted a series of voluntary tender offers during 2026, illustrating how liquidity opportunities can be provided periodically without following the same model used by larger perpetual-life BDCs.
For advisors, the distinction reinforces the importance of reading beyond terms such as “nontraded BDC” or “periodic liquidity.” The percentage available for repurchase, how frequently offers are made, the method used to establish the purchase price, whether requests may be prorated, and the board’s ability to modify or suspend an offer can vary by investment. Comparing these provisions before investing can help set realistic client expectations about how—and when—capital may become available.
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