2025: An Outstanding Year of Growth

Jan 13

2025 was a year of meaningful progress and continued growth at McNally Capital. In a market filled with uncertainty, we stayed true to our investment discipline and sector focus in the lower middle market, completing two platform acquisitions and two add-on investments.

We remain committed to partnering with founder-, family-, and management-led businesses in Aerospace & Defense and Industrial Technology & Services. A few highlights from the year:

TWO ACQUISITIONS & ONE PLATFORM LAUNCH

A New Aerospace Investment

In December, we acquired ATS, a leading global aviation services company specializing in MRO for the PT6A turboprop engine family. Our first investment from McNally Capital Fund III, LP, the transaction aligns with McNally’s thesis in Aerospace MRO and Aftermarket Services.

A New Industrial Automation Investment

In February, we invested in Jewett Automation, a leading custom automation solutions company, specializing in highly engineered, automated manufacturing and robotic systems for complex industrial applications. The transaction aligns with McNally’s thesis in Industrial Automation and is the final platform investment out of Fund II.

A New Platform for Commercial HVAC Mechanical Contractors

We launched Foundral, a newly formed and rapidly expanding family of union-backed mechanical contracting companies, including Smith & Oby, a Fund II portfolio company. Foundral, in partnership with McNally, is actively pursuing add-on acquisitions to expand its portfolio of first-in-class commercial mechanical contractors.

TWO ADD-ONS COMPLETED

We welcomed clearAvenue to Xcelerate Solutions and the McNally Capital portfolio, marking the third acquisition completed by Xcelerate since the firm's investment in the company.

Quiet Professionals merged with Spathe Systems – the combined platform is positioned to become the leading provider of defense technology and operational support solutions with a specialized focus on the U.S. Special Operations Forces community.

We are actively pursuing new add-on acquisitions for Foundral, Xcelerate, Quiet Professionals, Jewett Automation, and Orbis. Please contact Tyler Ashley with any M&A opportunities.

As we reflect on 2025, we are incredibly proud of our team and partners. We delivered meaningful growth underpinned by a disciplined investment approach and active value creation. Looking ahead, we are excited to drive long-term, sustainable growth while further strengthening and expanding capabilities for our portfolio companies.

– Ward McNally, Founder, Co-CEO, & Managing Partner at McNally Capital

CONTINUED RECOGNITION

McNally is proud to have received various important acknowledgements of our commitment to developing, nurturing, and investing in the skills and capabilities of our portfolio companies, ensuring sustainable success and preserving founder and family legacies. We were: