PIK lenders, typically special funds, look for a certain minimum internal rate of return, which can come from three major sources: arrangement fees, PIKs, and warrants (there are also minor sources, like ticking fees).
pˌiːˌaɪkˈeɪ lˈɛndɚz, tˈɪpɪkli spˈɛʃəl fˈʌndz, lˈʊk fɚɹə sˈɜːʔn̩ mˈɪnɪməm ɪntˈɜːnəl ɹˈeɪt ʌv ɹᵻtˈɜːn, wˌɪtʃ kæn kˈʌm fɹʌm θɹˈiː mˈeɪdʒɚ sˈoːɹsᵻz: ɚɹˈeɪndʒmənt fˈiːz, pˈɪk, ænd wˈɔːɹənts ðɛɹˌɑːɹ ˈɔːlsoʊ mˈaɪnɚ sˈoːɹsᵻz, lˈaɪk tˈɪkɪŋ fˈiːz.