BlackRock's (BLK) plan to buy private equity firm Global Infrastructure Partners is a $12.5 billion bet by the world’s largest money manager on growing demand for new energy, transportation, and digital infrastructure projects in the coming years.

"We believe the next 10 years is going to be a lot about infrastructure," Larry Fink, BlackRock's CEO, told investors in a Friday morning earnings call.

There is a high demand for capital to fund the world’s transition to clean energy, he said, and that's an opportunity to make money. GIP has holdings in green energy, airports, water, and waste companies and an oil pipeline.

"If we are going to decarbonize the world ... capital and infrastructure is going to be very necessary," Fink said during Friday’s back and forth, adding "that supply/demand imbalance creates compelling investment opportunities for our clients."

Fink listed other reasons to be bullish on the infrastructure space beyond what he called "the energy transition."

He also cited issues like growing public deficits, the growing need for digital infrastructure like broadband, and a general push for energy independence.

The related push for energy independence, he notes, might not necessarily lead a nation toward clean energy but it will require infrastructure nonetheless.

"But more importantly, or just as importantly, the amount of capital they need to provide to develop more decarbonizing investments in wind and solar to provide broader energy for their growth and their economies is very important," he added, after discussing the list of factors.

ESG by another name?

Friday’s announcement comes after years where Fink has found himself and his company unwittingly pulled into a political debate around climate change and other issues.

The link is rooted in Fink's long history of urging companies and long-term investors to do more to prepare for climate change by championing a focus on environmental, social, and governance (ESG) considerations.

The ongoing political backlash has been evident on the 2024 campaign trail where BlackRock often earns disapproving mentions.

“She's backed by companies like BlackRock,” said Florida Gov. Ron DeSantis at a debate just this week to criticize former South Carolina Gov. Nikki Haley. In fact, Fink has not endorsed any candidate but did meet with Haley recently.

Fink threw up his hands on the ESG issue and announced last June that he would stop using the term at all, saying it has "been totally weaponized."

He kept to that pledge Friday and ESG never came up directly on the nearly 90-minute call. But Fink nonetheless continued to link climate considerations and investing decisions.

At another point in Friday's call, Fink touted BlackRock’s ongoing efforts around "diversified infrastructure," with projects underway from a partnership with Occidental Petroleum (OXY) for a carbon capture facility in Texas to a wind farm in Kenya.

"It adds on to our very strong track record investing in the transition," he said.

The deal with Global Infrastructure Partners is expected to close in the third quarter. Adebayo Ogunlesi, GIP’s chairman and CEO, is set to join BlackRock’s board once the deal closes.

The deal would be BlackRock's largest acquisition since its 2009 purchase of Barclays Global Investors.

Fink said he’s already gotten a positive reaction in the hours since the deal was announced.

"In my calls with clients today, I can tell you more and more sovereign wealth funds see infrastructure as a major growth area in their asset allocation," he said, adding, "I just got an email from a big government saying, 'OK, there are things we can do more.'"

Ben Werschkul is Washington correspondent for Yahoo Finance.

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