Hyper-v with a virtual domain controller

Hello,

       I’ve been tasked to upgrade a 2003 AD/file server to a 2008 R2 AD/file server for a small office. The current server is a physical box and is the only server at that location. I was wondering if I could upgrade the new server to server 2012 R2 with hyper-v and virtualize the 2008 R2 AD/file server. Does hyper-v 2012 R2 require a physical AD server?