Melford Capital Ltd was founded in 2002 by Harry Hart. Initially the business operated a deal-by-deal business model, successfully completing a series of turnaround transactions in Central London between 2003 and 2006. In 2005 James Osborne joined the business. Having made their last acquisitions in 2006, Hart and Osborne then proceeded to liquidate their portfolio, deliberately withdrawing from the market by 2007.

In 2008 Freddie Wingfield Digby joined Melford from Barclays Capital and Ludo Mackenzie, formerly the Fund Manager of Henderson's UK Property Fund, became a partner in 2009.

In 2009, Melford formally commenced fundraising for its newly created Melford Special Situations LP, targeting GBP125m in new equity from university endowments, foundations and family offices. Patrick Bushnell, formerly Head of Property for Henderson Global Investors, was appointed non-executive Chairman of Melford Special Situations LP and Chairman of it's Investment Committee. The Partnership held its first close in September of that year and its final close in December 2010.