McNally Capital announces investment in Smith & Oby

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CHICAGO–(COMMERCIAL LINE) – McNally Capital (“McNally”), a leader in Direct Family Capital, is pleased to announce an investment in The Smith & Oby Company (“Smith & Oby”). Smith & Oby is one of the Midwest’s leading plumbing and HVAC mechanical service providers and contractors serving primarily the healthcare, education, commercial and industrial and civil end markets. McNally invested in Smith & Oby from McNally Capital Fund II, the company’s committed acquisition vehicle.

“We are thrilled to partner with the Smith & Oby team to help them expand the tremendous growth they have already achieved in this industry,” said Ravi P. Shah, Principal of McNally Capital. “Smith & Oby has a highly reputable brand name in the HVAC industry and a proven track record in providing high quality mechanical products and services to their customers. We look forward to contributing with Direct Family Capital and our company’s industry experience to enable their continued growth, diversify revenue streams and expand into new markets. ”

McNally’s investment in Smith & Oby is in line with the company’s investment thesis focused on facilities management and HVAC. McNally Capital completed this investment in line with its partnership model with founding and family-owned businesses.

“It is not common today to spend your entire career in a company, but we have many such employees, myself included. I believe our deeply rooted team is a testament to the solid foundation we have built and the growth-oriented mindset at Smith & Oby, “says Mike Brandt, President and CEO of Smith & Oby and a 39-year veteran of the company that has started as an apprentice tuba player. “As a 124-year-old private company, we are thrilled to have a partner in McNally Capital, which in turn has a history of over 160 years as a family business and investment firm and shares the same core values ​​and our vision. ”

“Our family business background and ‘walk in your shoes’ approach made us perfect for the Smith & Oby team. As a family business, our investment is consistent with McNally’s leadership in supporting entrepreneurs who value preserving their heritage, culture and core values, ”said Ward McNally, Managing Partner and Founder of McNally. “We are excited about our partnership and the opportunities it offers to continue driving strong organic and acquisition growth.”

McNally Capital invests capital on behalf of the McNally family, which owned and operated Rand McNally & Company, as well as other like-minded family offices and institutional investors. McNally makes thesis-based investments in the United States and looks for companies where Direct Family Capital can benefit owners and management teams. The firm caters to founder-owned and management-owned companies and partners in their investments with a group of industry partners, who provide incremental operational and industry knowledge and expertise. The company is currently investing from a committed buyout fund.

McNally Capital focuses on combining the best of family capital values ​​with institutional skills and sophistication. The firm focuses on investing in low to mid-market assets with EBITDA of $ 5 to $ 30 million in the aerospace and defense, industrial products and services, and business services sectors.

MelCap Partners, LLC acted as sole financial advisor and Benesch, Friedlander, Coplan & Aronoff LLP acted as legal advisor to Smith & Oby. Ropes & Gray LLP served as legal advisor to McNally Capital.

About McNally Capital

McNally Capital is a family-owned private equity firm that caters to thesis-based investments in the United States, specifically founding and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to maintaining a legacy of over 160 years as a family business. We are looking for companies where flexible capital can provide an advantage to owners and management teams. Our mission is to leverage the financial, intellectual and human capital of our family office and investor ecosystem to create value for our investors, management teams and portfolio companies. For more information, visit

About Smith & Oby

Smith & Oby is a privately owned and operated mechanical contractor providing services including, but not limited to: HVAC, plumbing, process piping, project budgeting and estimation, 3D-BIM, design / construction, engineering, service and maintenance and 24/24 7 emergency assistance. Throughout its legendary history, the company’s expanding services and capabilities have made it a benchmark for quality and professionalism in the construction industry. Dedicated to expert craftsmanship and customer satisfaction, Smith & Oby has a reputation for overall performance excellence that has resulted in major industrial, institutional, commercial and civil projects. By staying at the forefront of technology and keeping our focus on customer expectations, Smith & Oby is poised to continue our business into the second century. Smith & Oby works efficiently and quickly to maintain its goal of being one of the best turnkey mechanical services the region has to offer. Smith & Oby was recognized as Mechanical Contractor of the Year by Plumbing & Mechanical magazine in 2019. For more information, visit

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