WASHINGTON: A Chicago-based private equity firm - controlled by a member of the family that founded American publishing company Rand McNally - has an "economic interest" in the logistics company involved in a controversial new aid distribution operation in Gaza.
McNally Capital, founded in 2008 by Ward McNally, helped "support the establishment" of Safe Reach Solutions, a McNally Capital spokesperson told Reuters. SRS is a for-profit company established in Wyoming in November, state incorporation records show. It is in the spotlight for its involvement with the U.S.- and Israeli-backed Gaza Humanitarian Foundation, which last week started distributing aid in the war-torn Palestinian enclave. The foundation paused work on Wednesday after a series of deadly shootings close to its operations and has suffered from the departure of senior personnel.

"McNally Capital has provided administrative advice to SRS and worked in collaboration with multiple parties to enable SRS to carry out its mission," the spokesperson said. "While McNally Capital has an economic interest in SRS, the firm does not actively manage SRS or have a day-to-day operating role."
SRS is run by a former CIA official named Phil Reilly, but its ownership has not previously been disclosed. Reuters has not been able to establish who funds the newly created foundation.
The spokesperson did not provide details of the scale of the investment in SRS by McNally Capital, which says it has $380 million under management.
McNally Capital founder Ward McNally is the great great great grandson of the co-founder of Rand McNally. The McNally family sold the publishing company in 1997.
A spokesperson for SRS confirmed it worked with the foundation, also known as GHF, but did not answer specific questions about ownership.
GHF, which resumed aid distribution on Thursday, did not respond to a request for comment
While Israel and the United States have both said they don't finance the operation, they have pushed the United Nations and international aid groups to work with it, arguing that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that.
Israel blocked almost all aid into Gaza for 11 weeks until May 19, and has since only allowed limited deliveries in, mostly managed by the new GHF operation. This week GHF pressed Israel to boost civilian safety beyond the perimeter of its distribution sites after Gazan health officials said at least 27 Palestinians were killed and dozens wounded by Israeli fire near one of the food distribution sites on Tuesday, the third consecutive day of chaos and bloodshed to blight the aid operation.
The Israeli military said its forces on Tuesday had opened fire on a group of people they viewed as a threat after they left a designated access route near the distribution center in Rafah. It said it was investigating what had happened.
The U.N and most other aid groups have refused to work with GHF because they say it is not neutral and that the distribution model militarizes aid and forces displacement.
The SRS spokesperson said in a statement that under Reilly's leadership, "SRS brings together a multidisciplinary team of experts in security, supply chain management, and humanitarian affairs."
McNally Capital has investments in defense contracting companies. Among the firms it acquired was Orbis Operations, a firm that specializes in hiring former CIA officers. Orbis did not return calls for comment. Reilly used to work for Orbis.

NEW YORK: More than 130 news outlets and press freedom groups called Thursday for Israel to immediately lift a near-total ban on international media entering Gaza, while calling for greater protections for Palestinian journalists in the territory.
Israel has blocked most foreign correspondents from independently accessing Gaza since it began its war there following the unprecedented October 7, 2023 attack by militant group Hamas.
An open letter shared by the Committee to Protect Journalists and Reporters Without Borders called the restrictions “a situation that is without precedent in modern warfare.”
Signees included AFP’s global news director Phil Chetwynd, The Associated Press executive editor Julie Pace, and the editor of Israeli newspaper Haaretz Aluf Benn.
The letter added that many Palestinian journalists — whom news outlets have relied on to report from inside Gaza — face a litany of threats.
“Local journalists, those best positioned to tell the truth, face displacement and starvation,” it said.
“To date, nearly 200 journalists have been killed by the Israeli military. Many more have been injured and face constant threats to their lives for doing their jobs: bearing witness.
“This is a direct attack on press freedom and the right to information.”
The letter added that it was a “pivotal moment” in Israel’s war — with renewed military actions and efforts to boost humanitarian aid to Gaza.
This, it said, makes it “vital that Israel open Gaza’s borders for international journalists to be able to report freely and that Israel abides by its international obligations to protect journalists as civilians.”
Jodie Ginsberg, CEO of the Committee to Protect Journalists, said in a separate statement that Israel must grant journalists access and allow them to work in Gaza “without fear for their lives.”
“When journalists are killed in such unprecedented numbers and independent international media is barred from entering, the world loses its ability to see clearly, to understand fully, and to respond effectively to what is happening,” she said.
Reporters Without Borders head Thibaut Bruttin said the media blockade on Gaza “is enabling the total destruction and erasure of the blockaded territory.”
“This is a methodical attempt to silence the facts, suppress the truth, and isolate the Palestinian press and population,” he said in a statement.
Thursday’s letter was issued the same day the Palestinian Journalists Syndicate said three reporters were killed by a strike close to a hospital in Gaza City.
Israel’s military said the strike had targeted “an Islamic Jihad terrorist who was operating in a command and control center” in the yard of the hospital.