McNally Capital Announces Investment in Smith & Oby

McNally Capital Completes Platform Investment in The Smith & Oby Company, a Midwest-based HVAC and Plumbing Mechanical Contractor and Services Provider

CHICAGO--()--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 a leading Midwest HVAC and plumbing mechanical contractor and services provider serving primarily the healthcare, education, commercial & industrial, and civic end markets. McNally invested in Smith & Oby out of McNally Capital Fund II, the firm’s committed buyout vehicle.

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

McNally’s investment in Smith & Oby aligns with the firm’s investment thesis focused on facilities management and HVAC. McNally Capital completed this investment in line with its model of partnering with family- and founder-owned businesses.

“It’s not common today to spend your entire career at one company, but we have many such employees, myself included. I believe our deeply tenured team is a testament to the strong 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 who started as a pipefitter apprentice. "As a 124-year-old privately-owned business, we are excited to have a partner in McNally Capital, who themselves have a 160+ year history as a family business and investment firm and share the same core values and vision as we do.”

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

McNally Capital invests capital on behalf of the McNally family, who owned and operated Rand McNally & Company, as well as other family offices and like-minded institutional investors. McNally makes thesis-driven investments in the U.S. and looks for businesses where Direct Family Capital can benefit owners and management teams. The firm targets founder- and management-owned companies and partners in their investments with a bench of Industry Partners, who provide incremental industry and operating knowledge and expertise. The firm is currently investing out of a committed buyout fund.

McNally Capital is focused on combining the best of family capital values with institutional capabilities and sophistication. The firm focuses on investing in lower middle market businesses with $5 to $30 million in EBITDA in the Aerospace & Defense, Industrial Products & Services, and Business Services industries.

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

About McNally Capital

McNally Capital is a family-owned private equity firm targeting thesis-driven investments in the U.S., specifically founder and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 160+ year legacy as a family-owned and operated company. We look for businesses where flexible capital can provide a benefit to owners and management teams. Our mission is to harness the financial, intellectual, and human capital of our family office and investor ecosystem to build value for our investors, management teams, and portfolio companies. For more information, please visit

About Smith & Oby

Smith & Oby is a privately owned and operated mechanical contracting firm delivering services including, but not limited to: HVAC, plumbing, process piping, project budgeting and estimating, 3D-BIM, design/build, engineering, service & maintenance, and 24/7 emergency service. Throughout its storied 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 led to major industrial, institutional, commercial and civic projects. By staying on the leading edge of technology and maintaining our focus on the customer’s expectations, Smith & Oby is poised to continue our craft well into its second century. Smith & Oby operates efficiently and expeditiously to maintain its goal of being one of the finest turn-key mechanical services the region has to offer. Smith & Oby was recognized as the Mechanical Contractor of the Year by Plumbing & Mechanical Magazine in 2019. For more information, please visit


Beth Rahn, Principal & Head of Family Capital, (312) 357-3717,


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McNally Capital Completes Platform Investment in Smith & Oby, a Midwest-based HVAC and Plumbing Mechanical Contractor and Services Provider

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Beth Rahn, Principal & Head of Family Capital, (312) 357-3717,