KippsDeSanto & Co. advises Xcelerate Solutions on its investment from McNally Capital and Nio Advisors.

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KippsDeSanto & Co. advises Xcelerate Solutions on its investment from McNally Capital and Nio Advisors.

KippsDeSanto & Co. is pleased announce that its client, Xcelerate Solutions (“Xcelerate” or the “Company”), has received an investment from McNally Capital (“McNally”).

Headquartered in McLean, VA, Xcelerate is a leading provider of comprehensive defense and end-to-end national security advisory services to the U.S. government.

The Company specializes in providing integrated security capabilities to identify, reduce, and mitigate enterprise risks for Defense, Federal Law Enforcement, and Intelligence Community customers. Specific offerings include personnel vetting, insider threat management, intelligence analysis, risk management, digital modernization, DevSecOps, process automation, policy development, project management, and business transformation.

Founded on September 11, 2009, Xcelerate has dedicated the past 13 years to building solutions, relationships, and programs focused on making America safer. The Company has established long-standing and growing relationships across mission-focused organizations such as the Defense Counterintelligence and Security Agency (“DCSA”), Defense Intelligence Agency (“DIA”), Federal Bureau of Investigation (“FBI”), and Defense Logistics Agency (“DLA”). By leveraging its capabilities and extensive subject matter expertise around critical national security programs, Xcelerate has developed a market-leading reputation.

The partnership with McNally will further enhance Xcelerate’s growth as the Company continues to deliver in-demand services and solutions across its core markets and expands into adjacent markets.

We believe this transaction highlights several key trends in the government technology solutions M&A market:

  • Significant demand for diversified national security capabilities and market expertise reinforced by a seasoned management team and highly skilled, experienced, and cleared employees
  • Buyers continue to place significant value on firms with key market presence, entrenched customer relationships, and significant revenue visibility supported by key large-scale programs
  • Financial sponsors continue to deploy capital into new government technology solutions platform investments through buy and build strategies

About KippsDeSanto & Co.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 175 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release

McNally Capital Announces Investment in Xcelerate Solutions

 McNally Capital and Nio Advisors Complete Platform Investment in Xcelerate Solutions, a Provider of End-to-End National Security Advisory Services

Chicago, IL – January 12, 2023 – McNally Capital (“McNally”), a lower middle-market private equity firm focused on founder and family-owned businesses, is pleased to announce an investment in Xcelerate Solutions (“Xcelerate”). 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.

About McNally Capital

McNally Capital is a 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 investor ecosystem to build value for our investors, management teams, and portfolio companies. For more information, please visit www.mcnallycapital.com.

About Xcelerate Solutions

Xcelerate Solutions is a leading defense and national security company, providing integrated solutions delivered through three service areas. We exist to manage risk from individuals to systems, create innovative solutions that deliver results, and accelerate time to value. Across our three service areas — Enterprise Security, Strategic Consulting, and Digital Transformation — we enhance the security and resilience of America’s personnel, physical, and cyber infrastructure. We are a trusted partner to Federal Law Enforcement, Department of Defense, and Intelligence Community agencies that are directly responsible for the security and safety of the United States. For more information, please visit www.xceleratesolutions.com.

CONTACT:

Beth Rahn, Principal & Head of Family Capital, (312) 357-3717, brahn@mcnallycapital.com