September 13, 2023
NexPoint Announces Co-investment in NexPoint Life Sciences II DST
NexPoint Announces Co-investment in NexPoint Life Sciences II DST, Continuing Commitment to Life Sciences with a Focus on CDMOs and cGMP Facilities
September 12, 2023 | NexPoint
NexPoint, a multibillion-dollar alternative investment platform, announces it has made an initial investment in NexPoint Life Sciences II DST, a Delaware statutory trust (DST), through a fund advised by its affiliate. The investment represents 6% of the total equity available. NexPoint plans to increase the investment size, ultimately targeting 10%-12% of the total equity available. The investment aligns NexPoint’s and DST investors’ interests and underscores the firm’s commitment to the life sciences sector. The DST acquired the two properties earlier this year. The properties, located in Philadelphia, PA, are occupied by a subsidiary of Adare Pharmaceuticals, Inc., a contract development and manufacturing organization (CDMO) focused on oral dosage forms for the pharmaceutical industry.
Within life sciences, NexPoint sees CDMOs—and the manufacturing facilities they operate—as a key area of growth. NexPoint sees a significant demand in the United States for facilities that meet the standards of current good manufacturing practices (cGMP). America’s existing cGMP infrastructure cannot support the development and production needs of the life sciences industry, which is rapidly evolving with the commercialization of novel and emerging products and therapies. Other factors adding to demand for cGMP manufacturing facilities are bipartisan governmental initiatives to re-shore manufacturing and supply chains back to the United States, as well as the sector growth in healthcare that is driving commercial-scale pharmaceutical manufacturing activity. NexPoint’s co-investment in the Life Sciences II DST is driven by these industry trends, along with the predictable cash flow offered by the properties’ triple-net tenant, Adare Pharmaceuticals, Inc.
“Real estate plays a critical role in this rapidly evolving industry and can help accelerate innovation for life sciences companies at all stages of development,” said Matt McGraner, NexPoint Real Estate Advisors’ Chief Investment Officer. “As we continue to grow our life sciences platform, our investment in NexPoint Life Sciences II DST allows us to dedicate capital alongside our investor base and increase our exposure to cGMP facilities, which we believe have some of the strongest tailwinds within life sciences real estate.”
NexPoint expects to pursue additional opportunities in the cGMP space and plans to continue to invest alongside investors in future life sciences offerings.
NexPoint is a multibillion-dollar alternative investment firm comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. NexPoint provides differentiated access to alternatives through a range of investment solutions, including public and private real estate investment trusts, tax-advantaged real estate vehicles, merger arbitrage and event driven strategies, other private real estate investments, closed-end funds, interval funds, and a business development company. NexPoint is based in Dallas, Texas and is part of a network of affiliates with expertise across the asset management and financial services spaces. For more information visit nexpoint.com.
Only “accredited investors” (as that term is defined in Rule 501 promulgated under the Securities Act of 1933) who meet certain minimum requirements may invest. Investing in NexPoint Life Sciences II DST interests involves a high degree of risk. Past performance does not guarantee future results. Before investing, please review the applicable offering materials, including NexPoint Life Sciences II DST’s Confidential Private Placement Memorandum as amended or supplemented from time to time, including the “risk factors” described therein.
Mike Geller, Prosek Partners for NexPoint
Kristen Thomas, NexPoint
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