NexPoint Residential was founded in 2013 by James Dondero, a veteran hedge fund manager and business leader. Initially, the company focused on investments in residential mortgage-backed securities and other related real estate asset classes. Later, the company expanded its portfolio to include investments in multifamily real estate, single-family residential developments, self-storage facilities, and senior housing facilities. The company's success in real estate investments has been bolstered by its experienced management team and its long-term investment strategy.