May 11 (Bloomberg) -- Carlyle Group LP, the buyout firm run by David Rubenstein, plans to raise $1 billion with its first public offering of an investment fund, said a person with knowledge of the share sale.

The Washington-based firm may file by the end of June to list the fund on the Euronext exchange, according to the person, who asked not to be identified because the plans haven't been announced. The fund will invest mostly in mortgaged-backed securities.

Carlyle would follow Kohlberg Kravis Roberts & Co. and Apollo Management LP in selling shares in private-equity funds. Blackstone Group LP, the New York-based private-equity firm founded by Stephen Schwarzman and Peter G. Peterson, filed in March to sell a piece of its management company in an initial public offering.

John Stomber, a former managing director of Cerberus Capital Management LP who joined Carlyle last year, will be chief executive officer of the new fund, the person said.

Carlyle spokeswoman Michelle Ong declined to comment on the fund, which Business Week reported earlier today on its Web site.

Apollo Investment Corp., the publicly traded fund affiliated with Leon Black's Apollo, went public in 2004 and the shares are unchanged in 2007. KKR Private Equity Investors LP offered shares to public in May 2006 in Amsterdam; the stock has gained 4.2 percent this year.

To contact the reporters on this story: Jason Kelly in Atlanta at jkelly14@bloomberg.net;

Last Updated: May 11, 2007 17:10 EDT