Beats Electronics, home to the wildly popular Beats By Dre headphones and other myriad products, secured a $500 million investment from the Carlyle Group.
Beats is now valued at more than $1 billion, with Carlyle taking two of six seats on Beats' board.
Additionally, Beats will buy back the 25 percent stake in itself held by Taiwanese smartphone company HTC for $265 million. Beats also paid off a $150 million note held by HTC.
In addition to headphones, Beats electronics also has speakers and sound systems for Hewlett-Packard and HTC phones in its portfolio.
In 2012, Beats purchased online music streaming service Mog for more than $14 million.
“These transactions represent the evolution of the financial strength and significant growth prospects of Beats,” said Iovine in a statement.
“Carlyle is a fantastic investment partner and we look forward to building the next chapter of Beats," he added.