McNally Capital, a lower middle-market private equity firm focused on founder and family-owned businesses, announced an investment in Xcelerate Solutions. Xcelerate is a leading defense and national security company, providing integrated solutions delivered through three service areas – Enterprise Security, Digital Transformation, and Strategic Consulting. McNally invested in Xcelerate out of McNally Capital Fund II, the firm’s committed buyout vehicle.
“Our partnership with Xcelerate aligns with our internal expertise in the Aerospace & Defense industry and our investment thesis in intelligence and national security,” said Michael P. Ember, Vice President at McNally Capital. “Xcelerate is a trusted partner to agencies directly responsible for the security and safety of the United States and has achieved exponential growth since its inception. We look forward to contributing to their continued growth through our new partnership.”
McNally Capital completed this transaction in line with its model of partnering with founder-owned companies, management teams, and industry experts to create value for its portfolio companies. McNally Capital partnered with Nio Advisors, LLC (“Nio”) in the acquisition of Xcelerate.
“I founded the business with one goal in mind: ‘To Help Make America Safer.’ Everything that we do is aligned toward that mission, and it’s why our organization exists,” says Mark Drever, CEO and Founding Partner of Xcelerate Solutions. “This partnership with McNally Capital and Nio Advisors aligns perfectly for us, particularly given their immense national security expertise. We are excited about the knowledge and significant continued growth McNally, Nio, and their strong network will contribute.”
Managing Partner and Founder of McNally Capital, Ward McNally, stated, “We are excited to partner with Xcelerate Solutions, and for the opportunities it brings to continue enabling growth for a founder-owned company. Given our industry expertise and ‘walked in your shoes’ approach, the partnership was a natural fit for both of us.”
McNally makes thesis-driven investments in the U.S. and targets founder- and management-owned companies. The firm partners in their investments with a bench of Industry Partners who provide incremental industry and operating knowledge and expertise. McNally focuses on investing in lower middle-market businesses with $5 to $20 million in EBITDA in the Aerospace & Defense, Industrial Products & Services, and Business Services industries. The firm is currently investing out of its committed buyout fund.
KippsDeSanto acted as the sole financial advisor, and PilieroMazza and McDonald Hopkins LLC acted as legal counsel to Xcelerate Solutions. Ropes & Gray LLP served as legal counsel to McNally Capital.
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