A Chicago-based private equity firm with historical ties to the Rand McNally publishing family has a financial stake in a for-profit logistics company supporting the controversial aid operation in Gaza, according to a new report by Reuters.

The McNally Capital-Gaza aid connection is drawing scrutiny as the Gaza Humanitarian Foundation (GHF) faces accusations of militarizing aid and enabling displacement.

According to Reuters, McNally Capital, founded in 2008 by Ward McNally, confirmed it has an “economic interest” in Safe Reach Solutions (SRS), the logistics firm managing aid delivery for GHF. The company, registered in Wyoming last November, is run by former CIA official Phil Reilly. While McNally Capital says it does not manage SRS directly, it helped support the company’s establishment and provides administrative advice.

“McNally Capital has provided administrative advice to SRS and worked in collaboration with multiple parties to enable SRS to carry out its mission,” a spokesperson said. The scale of the investment was not disclosed.

McNally Capital’s role in Gaza aid logistics emerges

The Safe Reach Solutions tie comes amid broader questions about how the GHF was formed, funded, and staffed. The Gaza Humanitarian Foundation began distributing food in Gaza with backing from the US and the Israeli occupation, but it paused operations temporarily this week following the killing of dozens of hungry Palestinians by Israeli fire at aid distribution points.

McNally Capital, which manages $380 million in assets, has a history of investing in security-related companies. Among its past acquisitions is Orbis Operations, a firm known for employing former CIA operatives. Reilly, SRS’s current head, previously worked with Orbis.

The GHF controversy deepened Tuesday after Gazan health officials reported that at least 27 Palestinians were killed and dozens injured by Israeli fire near a distribution point in Rafah. It marked the third day of violence in the vicinity of GHF’s aid sites, prompting urgent calls for enhanced civilian protection.

Though GHF resumed operations Thursday, the violence led several senior staff to resign. Humanitarian groups and the UN continue to refuse cooperation with the foundation, arguing its model lacks neutrality and contributes to displacement.

“The distribution model militarizes aid and forces displacement,” one aid group representative told Reuters on condition of anonymity.

Security and intelligence ties raise further concerns

In addition to Reilly’s CIA background, SRS subcontracts with UG Solutions, a private US security firm employing former military veterans to secure aid convoys. The presence of armed guards near food distribution sites has drawn additional criticism amid calls for demilitarized humanitarian corridors.

According to Reuters, UG Solutions and Orbis Operations did not respond to requests for comment. A spokesperson for SRS confirmed the firm works with GHF but declined to discuss ownership specifics.

Since May 27, the Israeli occupation has implemented what it describes as a "humanitarian aid distribution plan" in #Gaza through the so-called Gaza Humanitarian Relief Foundation, a body backed by "Israel" and the #UnitedStates, rejected by the United Nations, and operating… pic.twitter.com/pQ6sjJvRpk

— Al Mayadeen English (@MayadeenEnglish) June 1, 2025

“Under Reilly’s leadership, SRS brings together a multidisciplinary team of experts in security, supply chain management, and humanitarian affairs,” the company said in a statement.