Page 5 of 8 – SEC Filing
SCHEDULE 13D/A
This Amendment No. 2 (this Amendment) to Schedule 13D (the Schedule 13D) is being filed on behalf of Highland
Capital Management, L.P., a Delaware limited partnership (Highland Capital), James D. Dondero and Nancy Marie Dondero (collectively, the Reporting Persons) relating to the Class Z Shares of Beneficial Interests (the
Shares), of NexPoint Real Estate Strategies Fund, a Delaware statutory trust (the Issuer), held by the Reporting Persons and certain related or other entities.
James D. Dondero is the President of Strand Advisors, Inc., a Delaware corporation (Strand), and controls NexPoint Advisors GP,
LLC, a Delaware limited liability company (NexPoint GP). Strand is the general partner of Highland Capital. NexPoint GP is the general partner of NexPoint Advisors, L.P., a Delaware limited partnership and the investment advisor to the
Issuer (NexPoint). Nancy Marie Dondero is the trustee of a trust (the Trust). This Schedule 13D relates to Shares of the Issuer held by (i) Highland Capital, (ii) NexPoint and (iii) the Trust.
The information set forth in response to each separate Item below shall be deemed to be a response to all Items where such information is
relevant and amends the Schedule 13D filed with the United States Securities and Exchange Commission on August 17, 2016, as subsequently amended on November 21, 2016. The Schedule 13D is supplementally amended as follows.
| Item 3. | Source and Amount of Funds |
As of August 15, 2017, the Reporting Persons had
invested approximately $5,961,986.51 (inclusive of brokerage commissions) in the securities of the Issuer. The source of these funds was the working capital and/or affiliated funds of the Reporting Persons.
| Item 5. | Interest in Securities of the Issuer |
(a) As of August 15, 2017,
(i) Highland Capital may be deemed to beneficially own 51,473.84 Shares, which represents approximately 14.3% of the outstanding Shares; (ii) James D. Dondero may be deemed to beneficially own 200,967.0570 Shares, which represents
approximately 56.0% of the outstanding Shares; and (iii) Nancy Marie Dondero, in her capacity of trustee of the Trust, may be deemed to beneficially own 144,271.4660 Shares, which represents approximately 40.2% of the outstanding Shares. James
D. Dondero has the right to acquire beneficial ownership of the 144,271.4660 Shares owned by the Trust.
(b)
| Name of Reporting Person | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | ||||||||||||
| Highland Capital Management, L.P.1 | 51,473.84 | 0 | 51,473.84 | 0 | ||||||||||||
| James D. Dondero2 | 0 | 200,967.0570 | 0 | 200,967.0570 | ||||||||||||
| Nancy Marie Dondero3 | 144,271.4660 | 0 | 144,271.4660 | 0 | ||||||||||||
| 1 | These Shares are held directly by Highland Capital. Mr. Dondero is the President and the director of Strand, the general partner of Highland Capital, and may be deemed to be an indirect beneficial owner of the Shares held by Highland Capital. Mr. Dondero disclaims beneficial ownership of such Shares. |
| 2 | Includes Shares held by Mr. Dondero indirectly through (i) Highland Capital and (ii) NexPoint. Also includes Shares that Mr. Dondero has the right to acquire beneficial ownership of that are held by the Trust, for which he does not serve as trustee. Mr. Dondero is the President and the director of Strand, the general partner of Highland Capital, and controls NexPoint GP, the general partner of NexPoint, and may be deemed to be an indirect beneficial owner of the Shares held by Highland Capital and NexPoint. Mr. Dondero disclaims beneficial ownership of such Shares. |
| 3 | Includes Shares that Ms. Dondero may be deemed to beneficially own as the trustee of the Trust. Ms. Dondero is the sister of Mr. Dondero. Ms. Dondero and Mr. Dondero disclaim beneficial ownership of such Shares. |
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