Magellan Financial Group (ASX:MFG) completed its non-underwritten institutional placement of 15.4 million new shares at AU$8.45 apiece to raise AU$130 million, according to a Tuesday filing with the Australian bourse.

The company will also offer eligible shareholders the ability to participate in a non-underwritten share purchase plan, aiming to raise AU$20 million at the same offer price as the placement, the filing said.

Proceeds will be used to acquire an incremental 10% economic interest in Barrenjoey Capital Partners from an affiliate of Barclays PLC for AU$148.9 million, per the filing.

Magellan Financial Group's shares rose 27% in morning trade Tuesday.