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Highland Capital Management Wades into Non-Traded Waters

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Investment management firm, Highland Capital Management (Highland) has taken the plunge into non-traded investments with the launch of its first business development company (BDC). The BDC, dubbed NexPoint Capital, Inc. will be focused on healthcare and aims to raise $1.5B in capital that it will invest mainly in medium-sized businesses.

Highland began preparation for its expansion into non-traded products when it hired Jennifer Ricci in February as Director of National Accounts. The firm has since added eight wholesalers for the wire house channel and five wholesalers for the independent channel to enhance its distribution team. The sales team is committed to providing investors with information on alternative products in the independent broker dealer channel.

The new additions to the independent channel include; Daniel Church, CFP®, Anthony Hazen, Kevin Helwig, Michael Kilsares, CFP®, and Matthew Selman.

Distributed by Highland Capital Funds Distributor, NexPoint Capital will be led by President of Highland Funds, Brad Ross and Brian Mitts, Chief Operating Officer of NexPoint Advisors and head of business development for Highland’s alternative products.

“We believe alternative products offer a compelling, income producing and non-correlated investment option for investors,” commented Mr. Mitts. “We’re confident our current suite of liquid alternative mutual funds combined with the non-traded products we’ll be launching over the next few months will offer independent advisors one of the industry’s strongest and most robust product lineups,” he added.

The BDC seeks to generate current income and capital appreciation through investments in middle-market healthcare companies, middle-market companies in non-healthcare sectors, syndicated floating rate debt of large public and nonpublic companies, and collateralized loan obligations (CLOs). It invests in securities that are or would be rated below investment grade by rating agencies.