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The Athenaeum was founded in 1824 at the instigation of John Wilson Croker, then Secretary to the Admiralty, who was largely responsible for the organization and early development of the Club. In 1823 he had proposed to Sir Humphrey Davy the foundation of a club "for literary and scientific men and followers of the fine arts" and the first committee meeting was held on 16 February 1824, when a limit of 400 members was imposed, but this had been increased to 1,000 by December 1824. Sir Humphrey Davy became the first Chairman and Michael Faraday the first secretary of the club. By May 1824 premises had been rented for the club at 12 Waterloo Place and Decimus Burton, then 24 years old, was commissioned to design a permanent clubhouse, which was erected on land leased from the Crown on part of the site of the courtyard of Carlton House (the residence of George IV when he was prince regent), which had been recently demolished.The club moved into the new building in 1830. Sir Thomas Lawrence designed the club seal: a head of Athena inside an oval surrounded by the legend "ATHENÆUM CLUB·PALL MALL".

Decimus Burton designed the club house in the Neoclassical taste. The main entrance and the front of the house on Waterloo Place has a Doric portico with paired columns. There is a continuous balustrade on the first floor, with an outstanding but costly frieze copied from the Parthenon above. A statue of Pallas Athene by Edward Hodges Baily stands above the porch. The original building had two principal storeys; the third and fourth were added at the end of the19th century. Croker, who was much involved in the building of the clubhouse, was determined that it should have the frieze, despite its cost, and resisted pressure from some members (in those pre-refrigeration days) that an ice-house be part of the scheme; hence the rhyme: