In 2002, CDH was established with six founding partners including Wu Shangzhi and Jiao Zhen, who had worked together at China International Capital Corporation's Direct Investment Division since 1995.
In 2003, CDH raised only $102 million for its first standalone fund, but quickly found its way into a series of successful China deals, including stakes in sportswear company Li-Ning, display advertising firm Focus Media and Mengniu Dairy.